In This Article:
Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cohen & Co Inc (COHN) saw significant growth in its Capital Markets division, with full-year revenue nearly doubling from $21.9 million in 2023 to $38.9 million in 2024.
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The company successfully expanded its market share as an adviser and agent, and ventured into underwriting initial public offerings.
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Despite elevated mortgage rates, Cohen & Co Inc (COHN) grew its mortgage business, ending the year with a gestation repo book of $2.7 billion, up more than 30% from December 2023.
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Trading revenue increased by $1.1 million from the fourth quarter of 2023, reaching $8.9 million in the fourth quarter of 2024.
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The company declared a quarterly dividend of $0.25 per share, demonstrating a commitment to returning value to shareholders.
Negative Points
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Cohen & Co Inc (COHN) reported a net loss of $2 million for the fourth quarter of 2024, compared to a net income of $2.2 million in the previous quarter.
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Adjusted pre-tax loss was $7.7 million for the quarter, a significant decline from the adjusted pre-tax income of $7.7 million in the prior quarter.
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New issue and advisory revenue decreased by $12.4 million from the third quarter and $8.6 million from the year-ago quarter, highlighting volatility in this revenue stream.
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The company faced $22.6 million in negative principal transactions revenue during 2024 due to losses on investment assets received as consideration.
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Equity value post-business combinations continued to decline, negatively impacting the value of shares received and contributing to volatility in operating results.
Q & A Highlights
Q: Can you provide an overview of Cohen & Company's performance in 2024, particularly in the Capital Markets division? A: Lester Brafman, CEO, highlighted that Cohen & Company Capital Markets (CCM) continued to grow its market share as an adviser and agent, expanding into underwriting initial public offerings. Despite a decline in revenue compared to the third quarter of 2024, CCM generated full-year revenue of $38.9 million, nearly doubling the $21.9 million from 2023.
Q: How did the mortgage business perform in 2024 given the elevated mortgage rates? A: The company managed to grow its mortgage business, ending the year with a gestation repo book of $2.7 billion, which is more than a 30% increase from December 2023, despite the challenging environment of elevated mortgage rates and lower origination levels.