Cohen & Company Reports 55% Revenue Growth to $28.74 Million in Q1 2025

Cohen & Company Inc. reported a significant increase in revenue for the first quarter of 2025, with total revenues reaching $28.74 million, a 55% increase from $18.56 million in the same period last year. This growth was primarily driven by a substantial rise in new issue and advisory revenue, which surged by 36% to $33.24 million, compared to $24.39 million in the prior year. However, net trading revenue decreased by 6% to $9.21 million, down from $9.85 million, reflecting challenges in the trading environment. The company also recorded a net loss of $15.73 million in principal transactions and other income, an improvement from a loss of $18.39 million in the previous year.

Operating expenses for the quarter increased by 31% to $28.63 million, up from $21.94 million. The rise in expenses was largely attributed to a 46% increase in compensation and benefits, which totaled $21.67 million, compared to $14.84 million in the prior year. This increase reflects higher incentive compensation and a slight rise in employee headcount, which stood at 117 as of March 31, 2025, compared to 116 a year earlier. Despite the increase in expenses, the company achieved an operating income of $107,000, a notable turnaround from an operating loss of $3.38 million in the first quarter of 2024.

In terms of strategic developments, Cohen & Company completed the sale of its 33.4% interest in Vellar Opportunities GP, LLC for $10 on February 25, 2025, resulting in a recorded loss of $836,000. Additionally, the company entered into a Master Transaction Agreement with Hildene Capital Management to sell its rights and obligations under several Collateral Management Agreements for a total base purchase price of $3.5 million. These transactions are part of the company's ongoing efforts to streamline operations and focus on core business areas.

Geographically, the company reported that revenues from the United States increased significantly to $27.49 million, up from $16.74 million, while revenues from Europe decreased to $1.25 million from $1.82 million. The company’s assets under management (AUM) as of March 31, 2025, were approximately $2.28 billion, a slight decrease from $2.31 billion a year earlier, with 42% of AUM in collateralized debt obligations (CDOs). The company continues to face challenges in the asset management segment due to declining asset values and the lack of new securitizations since 2008.

Looking ahead, Cohen & Company expressed cautious optimism about its future performance, emphasizing the importance of market conditions and the ongoing volatility in the financial markets. The company remains focused on managing its operational costs and enhancing its capital markets and asset management services to navigate the current economic landscape.