Siebert Financial Reports Q3 2025 Revenue Growth to $26.8M, Net Income Decline

Siebert Financial Corp. reported its financial results for the third quarter of 2025, revealing a total revenue of $26.8 million, an increase from $22.6 million in the same period last year. However, net income available to common stockholders decreased to $1.6 million, or $0.04 per share, compared to $3.8 million, or $0.10 per share, in the prior year. The decline in profitability was attributed to increased operating expenses, which rose to $24.7 million from $17.7 million, primarily driven by higher employee compensation and benefits, which increased by $4.5 million due to additional personnel and commission payouts.

The company experienced notable changes in its revenue streams. Principal transactions increased by 9.7% to $4.6 million, while stock borrow and stock loan revenue surged by 73.7% to $10 million, reflecting growth in securities lending services. Other income also saw a significant rise of 92.1% to $1.4 million, largely due to new revenue from music and sports operations. In contrast, commissions and fees decreased slightly to $2.3 million, and interest, marketing, and distribution fees fell to $7 million, primarily due to declining interest rates.

In terms of strategic developments, Siebert Financial completed the acquisition of certain assets from Big Machine Label Group (BMLG) for $441,000, aimed at expanding its music business. This acquisition is expected to enhance the company's portfolio of recorded music and associated copyrights. Additionally, the company began generating revenue from new services related to Name, Image, and Likeness (NIL) negotiations for student-athletes, earning $362,000 in the third quarter.

Operationally, Siebert Financial's total assets increased to $607.5 million as of September 30, 2025, up from $519.7 million at the end of 2024. This growth was primarily driven by an increase in securities borrowed, which rose to $253.3 million. The company's liabilities also increased to $515.6 million, largely due to higher payables to customers and securities loaned. The company reported a total employee headcount of 1,200, reflecting its ongoing investment in personnel to support new business lines and technology initiatives.

Looking ahead, Siebert Financial anticipates continued growth in its music and sports operations, as well as further development of its technology initiatives aimed at enhancing customer service. The company remains focused on leveraging its recent acquisitions and expanding its market presence, while managing the challenges posed by fluctuating market conditions and interest rates.