Cohen & Company ((COHN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Cohen & Company’s recent earnings call was marked by a generally positive sentiment, underscored by strong revenue growth and leadership in SPAC transactions. The company reported significant increases in net trading revenue, although challenges persist with negative principal transactions revenue and losses from specific transactions.
Strong Third Quarter Revenue Growth
Cohen & Company reported a robust third quarter, with total revenue reaching $84.2 million. The adjusted pretax income stood at $16.4 million, which accounts for 19.4% of the total revenue, highlighting the company’s strong financial performance during this period.
Significant Growth in CCM Revenue
The CCM unit has shown remarkable growth, generating $133 million in the first nine months of 2025, a substantial increase from $22.7 million in 2021. This growth signifies CCM’s major contribution to the company’s revenue, making up 77% of the total.
Leadership in SPAC Transactions
Cohen & Company has established itself as a leader in SPAC transactions, ranking #1 in SPAC IPO underwritings and advisory. The company underwrote 18 SPAC IPOs in 2025 year-to-date, reinforcing its dominant position in this market.
Increase in Net Trading Revenue
The company experienced a 26% increase in net trading revenue in the third quarter compared to the previous quarter. This growth was observed across all trading desks, contributing positively to the overall financial results.
Negative Principal Transactions Revenue
Despite the positive trends, Cohen & Company faced challenges with negative principal transactions revenue, which amounted to a loss of $159 million. This was primarily due to investment assets related to consideration received by CCM.
Losses from Nakamoto Kindly MD Transaction
The Nakamoto Kindly MD transaction resulted in significant losses, with $146 million in principal transaction losses due to a notable drop in NAKA share prices, impacting the company’s financial outcomes.
Forward-Looking Guidance
Looking ahead, Cohen & Company projects more than $50 million in revenue for the fourth quarter of 2025 and over $220 million for the full year. The company anticipates compensation and benefits expenses to be between 68%-72% of revenue, with annualized revenue per employee expected to rise significantly.
In summary, Cohen & Company’s earnings call reflected a positive outlook with strong revenue growth and leadership in SPAC transactions. Despite facing challenges such as negative principal transactions revenue and specific transaction losses, the company remains optimistic about its future performance and growth prospects.