Perella Weinberg Partners (PWP) Q4 2025 earnings summary

Executive summary

• Full-year 2025 revenues reached $751 million, down 14% from 2024's record but still among the highest in firm history; Q4 revenues were $219 million, including $18.5 million from early 2026 closings.

• Adjusted pre-tax income for 2025 was $82 million, with adjusted EPS at $0.68 for the year and $0.17 for Q4.

• Significant talent investment included 23 new senior bankers and the acquisition of Devon Park Advisors, expanding secondaries advisory.

• The business remains asset-light, ending 2025 with $256 million in cash and no debt.

• Positive outlook for 2026, with a record gross pipeline and strong backlog.

Financial highlights

• GAAP net income for FY 2025 was $35.5 million, up from a loss of $64.7 million in 2024; adjusted net income was $71.9 million.

• Adjusted compensation margin was 68% for 2025, up from 67% in 2024, reflecting investment in talent.

• Adjusted non-compensation expense was $159 million, down 2% year-over-year and below projected growth.

• Over $163 million returned to equity holders in 2025 via dividends, RSU settlements, share repurchases, and unit exchanges.

• Ended 2025 with $256 million in cash and no debt; declared a $0.07 per share quarterly dividend.

Outlook and guidance

• Expectation of a further single-digit percentage decrease in non-compensation expenses in 2026.

• Optimism for improved performance in 2026, with a strong announced backlog and positive client sentiment.

• Restructuring business expected to remain strong, with continued activity in liability management.

• Recruiting expected to return to trend levels in 2026, with a robust pipeline of candidates.

• Platform targets $1B+ in annual revenue, with scale benefits anticipated.