Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cohen & Co Inc (COHN) reported a net income of $300,000 for the quarter, a significant improvement from a net loss of $2 million in the prior quarter.
• The company's full-service boutique investment banking operation, Cohen Company Capital Markets (CCM), generated $20.1 million in net revenue, reflecting strong performance.
• New issue and advisory revenue increased to $33.2 million in the first quarter, up by $23.2 million from the prior quarter.
• The company launched a new SPAC-focused equity trading desk, expanding its platform and creating synergistic opportunities.
• Cohen & Co Inc (COHN) declared a quarterly dividend of $0.25 per share, demonstrating a commitment to returning capital to shareholders.

Negative Points

• The company faced $13.1 million in negative principal transactions revenue due to markdowns of financial instruments received as consideration for advisory services.
• Total first-quarter principal transactions and other revenue were negative $15.7 million, primarily due to losses related to previously received consideration by CCM.
• Net trading revenue decreased by $600,000 compared to the first quarter of the previous year.
• Asset management revenue was down slightly from the prior quarter and decreased by $700,000 from the prior year quarter.
• Equity value of post-business combination SPACs continued to decline, negatively impacting both principal transactions and income from equity method affiliates.

Q & A Highlights

• Warning! GuruFocus has detected 2 Warning Signs with COHN.

Q: Can you provide an overview of Cohen & Co Inc's financial performance for the first quarter of 2025? A: Joe Pooler, CFO: The net income attributable to Cohen & Co Inc shareholders was $300,000, or $0.19 per fully diluted share, compared to a net loss of $2 million in the prior quarter. Adjusted pre-tax income was $1.3 million, a significant improvement from a $7.7 million adjusted pre-tax loss in the previous quarter.

Q: What were the main contributors to the company's revenue in the first quarter? A: Joe Pooler, CFO: New issue and advisory revenue was $33.2 million, primarily driven by our CCM business, which saw substantial contributions from SPAC, M&A, and SPAC IPO transactions. However, this was offset by $13.1 million in negative principal transactions revenue.

Q: How did the company's principal transactions and other revenue perform? A: Joe Pooler, CFO: Total principal transactions and other revenue were negative $15.7 million, mainly due to losses related to financial instruments received as consideration for advisory services, which were marked down during the quarter.

Q: What is the current status of Cohen & Co Inc's dividend policy? A: Joe Pooler, CFO: We declared a quarterly dividend of $0.25 per share, payable on June 2nd to stockholders of record as of May 16. The board will continue to evaluate the dividend policy each quarter based on operating results and capital needs.

Q: Were there any questions from analysts or investors during the Q&A session? A: There were no questions from analysts or investors during the Q&A session of the earnings call.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.