RF Capital Group (RCG) Q1 2025 earnings summary

Executive summary

• 2024 marked significant leadership changes, including a new President & CEO and CFO, and the passing of a key executive.

• The company achieved a milestone of CAD 40 billion in assets under administration (AUA) for the first time.

• Strategic focus remained on operational excellence, advisor support, and recruiting high-caliber advisory teams.

Financial highlights

• 2024 revenue was CAD 369 million, up 5% year-over-year; fee revenue rose 8%, trading commissions 11%, and corporate finance revenue 37%.

• Adjusted EBITDA for 2024 was CAD 57.3 million, slightly down from CAD 59.5 million in 2023 due to higher operating expenses.

• 2024 ended with AUA at CAD 39.5 billion, up CAD 4.3 billion from 2023.

• Q1 2025 revenue was CAD 99 million, up 11% year-over-year; fee revenue up 17%, corporate finance revenue up 35%.

• Q1 2025 adjusted EBITDA was CAD 9.5 million, down from CAD 13.5 million in Q1 2024, mainly due to increased share-based compensation expenses.

• The company reported a net loss in both 2024 and Q1 2025, with a Q1 2025 loss of CAD 4.1 million.

Outlook and guidance

• 2025 AUA growth is expected to be driven by client asset growth and recruiting, with performance highly correlated to equity markets.

• Interest revenue is expected to decline further as benchmark rates fall, but may be offset by higher client cash balances.

• Operating expenses will be managed for efficiency, with a focus on leveraging recent investments and controlling mark-to-market expenses.

• Capital will be allocated to advisor technology, middle office improvements, and selective recruiting.