Stifel Financial (SF) Q2 2025 earnings summary

Executive summary

• Achieved record second quarter net revenue of $1.28 billion, up 6% year-over-year, with core/non-GAAP EPS of $1.71 and annualized ROTCE of 21.7%, driven by a diversified business model and strong advisor recruiting, including 82 new advisors and 36 from B. Riley.

• Record client assets reached $516.5 billion, up 9% year-over-year, with fee-based assets at $206.3 billion (+14.8%).

• Completed acquisitions of B. Riley Financial's wealth management business and Bryan, Garnier & Co., supporting European repositioning and expanding advisor base.

• Institutional business saw a 7% year-over-year revenue increase, record fixed income revenue, and a late-quarter rebound in investment banking.

• Ranked #1 in Employee Advisor Satisfaction by JD Power for the third consecutive year.

Financial highlights

• Net revenue grew 6% year-over-year to $1.28 billion in Q2 2025; YTD net revenue reached $2.54 billion (+7% YoY).

• Investment banking revenue totaled $233 million, exceeding guidance by over $20 million due to late-quarter deal closings.

• Net interest income rose 8% year-over-year to $270 million in Q2 2025, aided by $4 million in fee income.

• Compensation ratio was 58%, at the high end of guidance; operating pre-tax margin was 20.3%.

• Non-compensation expenses increased 7% year-over-year, with $28 million in European restructuring charges.

Outlook and guidance

• Full-year 2025 net revenue guidance raised to $5,250–$5,750 million, with momentum expected to drive a strong second half.

• Compensation ratio expected at 56–58%; non-compensation ratio at 19–21%.

• Net interest income guidance for Q3 is $265 million–$275 million; full-year guidance increased to $1,100–$1,200 million.

• $1 billion in loan growth expected in the second half.

• Continued focus on organic and inorganic growth in wealth management and institutional group.