PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 financials show total assets increased to $978.1 million, but net income significantly declined to $0.9 million due to reduced equity affiliate income [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly increased to $978.1 million by March 31, 2025, while total liabilities rose and total equity decreased to $85.7 million Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$978,050** | **$971,149** | | Cash and cash equivalents | $13,985 | $19,590 | | Investments-trading | $160,566 | $148,332 | | Receivables under resale agreements | $673,700 | $668,259 | | **Total Liabilities** | **$892,390** | **$880,866** | | Securities sold under agreements to repurchase | $707,454 | $695,966 | | **Total Equity** | **$85,660** | **$90,283** | | Non-controlling interest | $43,656 | $48,555 | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Q1 2025 total revenues increased to $28.7 million, but net income attributable to the company significantly declined to $0.3 million due to reduced equity affiliate income Consolidated Statements of Operations Highlights (in thousands) | Income Statement Item | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Total Revenues** | **$28,740** | **$18,564** | | Net trading | $9,211 | $9,848 | | New issue and advisory | $33,239 | $24,388 | | Principal transactions and other income (loss) | ($15,730) | ($18,389) | | **Total Operating Expenses** | **$28,633** | **$21,939** | | Compensation and benefits | $21,666 | $14,839 | | **Operating Income (Loss)** | **$107** | **($3,375)** | | Income (loss) from equity method affiliates | $2,418 | $29,045 | | **Net Income (Loss)** | **$938** | **$23,506** | | **Net Income (Loss) Attributable to Cohen & Company Inc.** | **$329** | **$2,023** | | **Diluted EPS** | **$0.19** | **$1.28** | [Consolidated Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by $4.6 million to $85.7 million in Q1 2025, primarily due to distributions to non-controlling interests and the sale of Vellar GP interest - Total equity decreased by **$4,623 thousand** during the first quarter of 2025, from **$90,283 thousand** to **$85,660 thousand**[27](index=27&type=chunk) - Key drivers of the equity decrease include distributions to convertible non-controlling interests (**$1,796 thousand**), redemption of convertible non-controlling interest units (**$954 thousand**), sale of interest in Vellar GP (**$1,691 thousand**), and other non-convertible non-controlling interest distributions (**$1,236 thousand**)[27](index=27&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw net cash used in operations of $6.4 million, leading to a $5.6 million decrease in cash and cash equivalents to $14.0 million Consolidated Cash Flow Highlights (in thousands) | Cash Flow Item | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($6,372) | $5,137 | | Net cash provided by (used in) investing activities | $4,189 | ($2,856) | | Net cash provided by (used in) financing activities | ($3,631) | ($999) | | **Net increase (decrease) in cash and cash equivalents** | **($5,605)** | **$1,179** | | **Cash and cash equivalents, end of period** | **$13,985** | **$11,829** | [Notes to Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail accounting policies, key events like Vellar GP sale and CDO management contract sale, and segment reporting, highlighting SPAC-related income - On February 25, 2025, the Company sold its **33.4% interest in Vellar GP**, recording a loss on sale of **$836 thousand**[79](index=79&type=chunk) - On March 13, 2025, the Company entered into a Master Transaction Agreement (MTA) with an affiliate of Hildene Capital Management to sell its rights and obligations for five CDO management agreements for an aggregate base purchase price of **$3.5 million**[82](index=82&type=chunk)[83](index=83&type=chunk)[86](index=86&type=chunk) - As of March 31, 2025, the Company had **$2.3 billion in assets under management (AUM)**, with **$1.0 billion in collateralized debt obligations (CDOs)**[38](index=38&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=68&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 revenue growth driven by advisory fees, offset by a sharp decline in net income due to reduced equity affiliate income, highlighting liquidity and market risks [Overview and Business Environment](index=68&type=section&id=Overview%20and%20Business%20Environment) The company's three segments are highly sensitive to economic conditions, market volatility, and interest rates, with significant exposure to the volatile SPAC market - The company's business is organized into three segments: **Capital Markets, Asset Management, and Principal Investing**[333](index=333&type=chunk)[336](index=336&type=chunk) - The business is materially affected by **economic conditions, market volatility, and interest rates**, which are beyond its control[339](index=339&type=chunk) - A significant portion of the Principal Investing business and CCM advisory activities are concentrated in the **SPAC market**, which has seen equity price declines, impacting results[349](index=349&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk) - Rising or elevated interest rates have negatively impacted the company by reducing the fair value of fixed income securities, creating equity market instability, reducing new issue volumes, and decreasing mortgage activity[356](index=356&type=chunk)[358](index=358&type=chunk) [Recent Events](index=74&type=section&id=Recent%20Events) Q1 2025 saw the sale of the company's Vellar GP interest, resulting in an $836 thousand loss, and an agreement to sell five CDO management contracts for $3.5 million - On February 25, 2025, the company sold its entire **33.4% interest in Vellar GP** for **$10**, recording a loss on sale of **$836 thousand**[360](index=360&type=chunk)[362](index=362&type=chunk) - On March 13, 2025, the company agreed to sell five CDO management contracts to an affiliate of Hildene Capital Management for an aggregate base purchase price of **$3.5 million**[364](index=364&type=chunk)[365](index=365&type=chunk)[368](index=368&type=chunk) - Through March 31, 2025, the company recognized **$352 thousand in asset management revenue** that will reduce the final purchase price from the Hildene transaction[369](index=369&type=chunk) [Results of Operations (Q1 2025 vs. Q1 2024)](index=76&type=section&id=Results%20of%20Operations) Q1 2025 total revenues rose 55% to $28.7 million, but net income attributable to the company fell 84% to $0.3 million due to a 92% decline in equity affiliate income Consolidated Results of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$28,740** | **$18,564** | **$10,176** | **55%** | | New issue and advisory | $33,239 | $24,388 | $8,851 | 36% | | **Total Operating Expenses** | **$28,633** | **$21,939** | ($6,694) | (31%) | | Compensation and benefits | $21,666 | $14,839 | ($6,827) | (46%) | | **Operating Income / (Loss)** | **$107** | **($3,375)** | **$3,482** | **103%** | | Income / (loss) from equity method affiliates | $2,418 | $29,045 | ($26,627) | (92%) | | **Net Income / (Loss) Attributable to Cohen & Company Inc.** | **$329** | **$2,023** | **($1,694)** | **(84%)** | - The decrease in income from equity method affiliates was primarily driven by **SPAC sponsor entities**, which generated **$2.1 million** in income in Q1 2025 compared to **$29.2 million** in Q1 2024[412](index=412&type=chunk)[413](index=413&type=chunk) [Liquidity and Capital Resources](index=86&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to $14.0 million in Q1 2025, with significant capital concentrated in regulated broker-dealer subsidiaries, limiting parent company liquidity - Cash and cash equivalents decreased by **$5,605 thousand** to **$13,985 thousand** as of March 31, 2025[433](index=433&type=chunk)[437](index=437&type=chunk) - The company's U.S. broker-dealer, JVB, is subject to SEC and FINRA net capital rules, which restrict capital withdrawals. As of March 31, 2025, JVB's equity was **$78.1 million** out of the company's total consolidated equity of **$85.7 million**, indicating significant capital concentration in the regulated subsidiary[428](index=428&type=chunk)[448](index=448&type=chunk)[449](index=449&type=chunk) Contractual Obligations Summary (in thousands) | Obligation | Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease arrangements | $21,725 | $2,284 | $4,902 | $4,776 | $9,763 | | Debt Maturities & Interest | $106,406 | $12,319 | $11,072 | $8,293 | $74,822 | | Other Operating Obligations | $1,410 | $1,143 | $251 | $16 | $0 | | **Total** | **$129,541** | **$15,746** | **$16,225** | **$13,085** | **$84,585** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=94&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risk from fixed income and equity positions, estimating losses of $2.0 million from a 100 bps yield curve shift and $1.3 million from a 10% equity price drop - As of March 31, 2025, a **100 basis point adverse shift** across the yield curve would result in an estimated loss of **$1,978 thousand** on the company's net interest rate sensitive assets[476](index=476&type=chunk) - A **10% adverse change in equity prices** would result in an estimated loss of **$1,323 thousand** on the company's equity price sensitive assets as of March 31, 2025[477](index=477&type=chunk) - A **100 basis point change in variable base rates** would change the company's annual cash paid for interest on its debt by **$481 thousand**[479](index=479&type=chunk) - The company manages counterparty and settlement risk through credit assessments, requiring collateral (margin), and utilizing haircuts on collateralized financing transactions[485](index=485&type=chunk)[486](index=486&type=chunk) [Item 4. Controls and Procedures](index=96&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[490](index=490&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[491](index=491&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=97&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal and regulatory matters, which management believes will not materially affect its financial condition or operations - The company is involved in routine legal and regulatory matters, which management believes will not have a **material adverse effect** on its financial condition[281](index=281&type=chunk)[493](index=493&type=chunk) [Item 1A. Risk Factors](index=97&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the significant risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred in the significant risk factors from those disclosed in the Annual Report on **10-K** for the year ended December 31, 2024[494](index=494&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=98&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no equity security repurchases in Q1 2025, and dividend payments are subject to business performance and regulated subsidiary restrictions - The company made **no purchases of its own equity securities** during the first quarter of 2025[498](index=498&type=chunk) [Item 3. Defaults Upon Senior Securities](index=98&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - None[499](index=499&type=chunk) [Item 4. Mine Safety Disclosures](index=98&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - None[499](index=499&type=chunk) [Item 5. Other Information](index=98&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading plan during the first quarter of 2025 - No directors or officers adopted, modified, or terminated a **Rule 10b5-1 trading plan** during the first quarter of 2025[499](index=499&type=chunk) [Item 6. Exhibits](index=99&type=section&id=Item%206.%20Exhibits) The report includes various exhibits filed with Form 10-Q, such as the Master Transaction Agreement and CEO/CFO certifications - Exhibits filed include the **Master Transaction Agreement** dated March 13, 2025, and **CEO/CFO certifications**[500](index=500&type=chunk)

Financial Data and Key Metrics Changes - Net income attributable to Cohen and Company Inc. shareholders was $300,000 for the quarter, a significant improvement from a net loss of $2,000,000 in the prior quarter and a decrease from net income of $2,000,000 in the same quarter last year [6] - Adjusted pretax income was $1,300,000 for the quarter, compared to an adjusted pretax loss of $7,700,000 in the prior quarter and adjusted pretax income of $7,700,000 in the prior year quarter [6][7] - Total equity at the end of the quarter was $85,700,000, down from $90,300,000 at the end of the previous year [11] Business Line Data and Key Metrics Changes - Cohen and Company Capital Markets (CCM) generated $20,100,000 of net revenue, contributing significantly to the overall performance [4] - New issue and advisory revenue was $33,200,000, an increase of $23,200,000 from the prior quarter and an increase of $8,900,000 from the year-ago quarter, primarily driven by SPAC M&A and IPO transactions [7][8] - Asset management revenue totaled $2,000,000, down slightly from the prior quarter and down $700,000 from the prior year quarter [10] Market Data and Key Metrics Changes - Negative principal transactions revenue amounted to $13,100,000 during the quarter, primarily due to marked-down financial instruments received as consideration for advisory services [9] - Net trading revenue was $9,200,000, up $300,000 from the prior quarter but down $600,000 from the first quarter of the previous year [9] Company Strategy and Development Direction - The company launched a new SPAC-focused equity trading desk in April, aimed at creating synergistic opportunities to build on CCM's momentum [4] - The management remains focused on disciplined execution and enhancing long-term sustained value for stockholders through continued return of capital, including quarterly dividends [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future earnings potential and the ability to navigate the current environment while executing strategic priorities [5][13] - The company is well-positioned for continued growth despite ongoing mark-to-market headwinds in its principal investing portfolio [4] Other Important Information - Compensation and benefits expense for the first quarter was $21,700,000, reflecting fluctuations in revenue and related variable incentive compensation impacts [10] - The company declared a quarterly dividend of $0.25 per share, payable on June 2 to stockholders of record as of May 16 [12] Q&A Session Summary Question: No questions were raised during the Q&A session - There were no questions at this time, and the operator turned the floor back to management for further remarks [15]

Financial Data and Key Metrics Changes - The net income attributable to Cohen and Company Inc. shareholders was $300,000 for Q1 2025, compared to a net loss of $2,000,000 in the prior quarter and net income of $2,000,000 in the same quarter last year [6] - Adjusted pretax income was $1,300,000 for the quarter, a significant improvement from an adjusted pretax loss of $7,700,000 in the prior quarter and adjusted pretax income of $7,700,000 in the same quarter last year [6][7] - Total equity at the end of the quarter was $85,700,000, down from $90,300,000 at the end of the previous year [10] Business Line Data and Key Metrics Changes - Cohen and Company Capital Markets (CCM) generated $20,100,000 in net revenue, reflecting strong performance [4] - New issue and advisory revenue was $33,200,000, an increase of $23,200,000 from the prior quarter and $8,900,000 from the year-ago quarter, primarily driven by SPAC M&A and SPAC IPO transactions [7] - Asset management revenue totaled $2,000,000, down slightly from the prior quarter and down $700,000 from the prior year quarter [9] Market Data and Key Metrics Changes - Negative principal transactions revenue was $13,100,000 during the quarter, primarily due to mark downs of financial instruments received as consideration for advisory services [8] - Net trading revenue was $9,200,000, up $300,000 from the prior quarter but down $600,000 from the first quarter of 2024 [8] Company Strategy and Development Direction - The company launched a new SPAC-focused equity trading desk in April 2025, aiming to build on CCM's momentum and enhance its capabilities [4] - The company remains committed to enhancing long-term sustained value for stockholders through continued return of capital, including a quarterly dividend [5][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future earnings potential and the ability to navigate the current environment while executing strategic priorities [5][12] - The company is focused on disciplined execution despite ongoing mark to market headwinds in its principal investing portfolio [4] Other Important Information - Compensation and benefits expense for the first quarter was $21,700,000, up from both prior quarters due to fluctuations in revenue and related variable incentive compensation [9] - The company declared a quarterly dividend of $0.25 per share, payable on June 2 to stockholders of record as of May 16 [11] Q&A Session Summary Question: Are there any questions from the participants? - There were no questions at this time, and management thanked everyone for joining the call [14]

Financial Performance - Net income attributable to Cohen & Company Inc. was $0.3 million, or $0.19 per diluted share, for Q1 2025, compared to a net loss of $2.0 million, or $1.21 per diluted share, for Q4 2024[5]. - Total revenues for Q1 2025 were $28.7 million, up from $18.5 million in the prior quarter and $18.6 million in the prior year quarter[5]. - New issue and advisory revenue was $33.2 million for Q1 2025, an increase of $23.2 million from the prior quarter and $8.9 million from the prior year quarter[5]. - The company reported a net income of $938,000 for the quarter, a recovery from a net loss of $6,875,000 in the previous quarter[15]. - Basic earnings per share for the quarter was $0.19, compared to a loss of $1.20 per share in the previous quarter[15]. - Adjusted pre-tax income for the quarter was $1,250,000, compared to a loss of $7,705,000 in the previous quarter[19]. - Fully diluted adjusted pre-tax income per share was $0.22, recovering from a loss of $1.32 per share in the previous quarter[19]. Expenses and Liabilities - Compensation and benefits expense increased to $21.7 million in Q1 2025, up $8.7 million from the prior quarter and $6.8 million from the prior year quarter[5]. - Total operating expenses increased to $28,633,000 from $24,044,000 in the prior quarter, primarily driven by higher compensation and benefits expenses[15]. - Total liabilities increased to $892,390,000 from $880,866,000, reflecting higher payables to brokers and dealers[18]. Equity and Dividends - As of March 31, 2025, total equity was $85.7 million, down from $90.3 million as of December 31, 2024[11]. - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on June 2, 2025[11]. Employee and Operations - The number of employees increased to 117 as of March 31, 2025, from 113 as of December 31, 2024[5]. - Cohen & Company launched a new SPAC-focused equity trading desk in April 2025 to leverage insights and capabilities from its investment banking operation[4]. Trading and Revenue Sources - Principal transactions and other revenue was negative $15.7 million for Q1 2025, compared to negative $2.5 million in the prior quarter[5]. - Net trading revenue was $9,211,000, up from $8,947,000 in the prior quarter, while asset management revenue decreased slightly to $2,020,000 from $2,067,000[15]. - New issue and advisory revenue surged to $33,239,000 from $10,075,000 in the previous quarter, indicating strong performance in this segment[15]. Assets - Total assets as of March 31, 2025, were $978,050,000, a slight increase from $971,149,000 at the end of the previous quarter[18].

Core Viewpoint - Cohen & Company Inc. reported a net income of $0.3 million for Q1 2025, a significant recovery from a net loss of $2.0 million in the previous quarter, indicating improved financial performance and confidence in future growth [5][12]. Financial Performance - Total revenues for Q1 2025 were $28.7 million, up from $18.5 million in Q4 2024 and $18.6 million in Q1 2024 [5][12]. - Net trading revenue was $9.2 million, a slight increase from $8.9 million in the previous quarter but a decrease from $9.8 million in the same quarter last year [5][12]. - Asset management revenue decreased to $2.0 million from $2.1 million in Q4 2024 and $2.7 million in Q1 2024 [5][12]. - New issue and advisory revenue surged to $33.2 million, up from $10.1 million in Q4 2024 and $24.4 million in Q1 2024 [5][12]. - Principal transactions and other revenue was negative $15.7 million, worsening from negative $2.5 million in the previous quarter and negative $18.4 million in the same quarter last year [5][12]. Operating Expenses - Compensation and benefits expenses rose to $21.7 million, an increase of $8.7 million from the prior quarter and $6.8 million from the prior year quarter [5][12]. - Non-compensation operating expenses were $6.9 million, down from $11.1 million in the previous quarter but up from $7.1 million in the same quarter last year [5][12]. Income and Earnings Per Share - The fully diluted net income per share was $0.19 for Q1 2025, compared to a loss of $1.21 in Q4 2024 and a profit of $1.28 in Q1 2024 [5][12]. - Adjusted pre-tax income was $1.3 million, or $0.22 per diluted share, a recovery from a loss of $7.7 million in the previous quarter and a profit of $7.7 million in the same quarter last year [5][12]. Equity and Dividend Declaration - Total equity as of March 31, 2025, was $85.7 million, down from $90.3 million as of December 31, 2024 [12]. - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on June 2, 2025, to stockholders of record as of May 16, 2025 [12]. Strategic Initiatives - The CEO highlighted the strong performance of the investment banking operation, which generated $20.1 million in net revenue, and the launch of a new SPAC-focused equity trading desk to leverage growth opportunities [3][5].

Core Viewpoint - Cohen & Company Inc. is set to release its financial results for the first quarter of 2025 on May 1, 2025, and will host a conference call to discuss these results [1]. Company Overview - Cohen & Company is a financial services firm that specializes in capital markets and asset management services, with operating segments including Capital Markets, Asset Management, and Principal Investing [3]. - The Capital Markets segment includes fixed income sales, trading, repo financing, new issue placements, underwriting, and advisory services, primarily through subsidiaries in the U.S. and Europe [3]. - The Asset Management segment manages approximately $2.3 billion in assets as of March 31, 2025, focusing on fixed income assets across various classes [3]. - The Principal Investing segment consists of investments related to the company's SPAC franchise and other investment returns [3].

Core Insights - J.V.B. Financial Group, LLC has launched a new SPAC-focused equity trading platform to enhance its offerings in capital markets and SPAC advisory services [1][4] - The new trading platform aims to leverage the expertise of Cohen & Company Capital Markets, which has established itself as a leading SPAC advisor on Wall Street [2][4] - The platform will be led by experienced professionals Perry Choset and Brandon Brenner, who bring extensive backgrounds in SPAC equities and trading [3][4] Company Overview - J.V.B. Financial Group is a subsidiary of Cohen & Company Inc., specializing in capital markets and asset management services [1][5] - Cohen's Capital Markets segment includes a range of services such as fixed income sales, trading, and advisory services, with a focus on M&A and SPAC advisory [6][7] - As of December 31, 2024, Cohen managed approximately $2.3 billion in assets, primarily in fixed income assets across various classes [7]

Asset Management and Revenue - As of December 31, 2024, the company had approximately $2,325,000 in assets under management (AUM), with 42% in CDOs[320]. - The company has not completed a new securitization since 2008, leading to a decline in asset management revenue from historical highs due to CDO asset declines[331]. - A significant portion of the company's asset management revenue is derived from CDO management, which has been negatively impacted by maturities, repayments, and defaults[331]. - Asset management fees increased by $1,672, or 23%, to $9,009 for the year ended December 31, 2024, compared to $7,337 for 2023[362]. - New issue and advisory revenue increased by $35,158, or 124%, to $63,422 for the year ended December 31, 2024, compared to $28,264 for 2023[366]. - Total revenues increased by $38,594, or 87%, to $82,981 for the year ended December 31, 2023, compared to $44,387 for 2022[414]. Financial Performance - Revenues decreased by $3,383, or 4%, to $79,598 for the year ended December 31, 2024, compared to $82,981 for 2023[354]. - Net income decreased by $2,210, or 21%, to $8,189 for the year ended December 31, 2024, compared to $10,399 for 2023[353]. - Principal transactions and other income decreased by $45,696, or 278%, resulting in a total of $(29,242) for the year ended December 31, 2024[353]. - The net income attributable to the non-controlling interest decreased from $19,590 in 2023 to $8,675 in 2024, a decline of approximately 56%[407]. - The company reported a tax benefit of ($329) for the year ended December 31, 2024, compared to an expense of $5,545 in 2023, indicating a significant turnaround[401]. - The total net income attributable to the Operating LLC was $(25,063) thousand for 2023, with a significant loss attributed to wholly owned subsidiaries[467]. Expenses and Cost Management - Operating expenses increased by $11,501, or 15%, to $87,621 for the year ended December 31, 2024, compared to $76,120 for 2023[353]. - Compensation and benefits increased by $4,296, or 8%, to $56,388 for the year ended December 31, 2024, compared to $52,092 for the year ended December 31, 2023[384]. - Professional fee and other operating expenses increased by $5,125, or 55%, to $14,421 for the year ended December 31, 2024, compared to $9,296 for the year ended December 31, 2023[391]. - Business development, occupancy, and equipment expenses increased by $1,413, or 27%, to $6,617 for the year ended December 31, 2024, compared to $5,204 for the year ended December 31, 2023[388]. - Operating expenses increased by $3,770, or 5%, to $76,120 for the year ended December 31, 2023, compared to $72,350 for 2022[440]. Market Conditions and Economic Impact - The overall business environment remains unpredictable, influenced by economic conditions, market volatility, and competition[325]. - Rising interest rates have negatively impacted mortgage activity and overall transaction volumes in financial markets, potentially pushing the U.S. into recession[1]. - The U.S. Federal Reserve's actions to raise interest rates have negatively impacted the company's business, particularly during periods of elevated rates[342]. - The mortgage group's revenue is highly dependent on U.S. mortgage origination volumes, which are sensitive to interest rates and economic conditions[341]. Investments and Financial Instruments - The company’s redeemable financial instruments decreased from $6,526 in 2023 to $5,821 in 2024, a reduction of approximately 11%[395]. - The company had no redeemable financial instruments as of December 31, 2024, down from $7,868 in 2023[512]. - The CREO JV invests primarily in multi-family commercial real estate mortgage-backed loans, carrying the investment at its reported NAV[377]. - The U.S. Insurance JV invests in insurance company debt, also carried at its reported NAV[378]. - The total par amount owed by the company to the trusts is $49,614,000, while the common stock held by the company in the trusts is valued at $1,489,000[514]. Cash Flow and Liquidity - Cash flow from operating activities for 2024 was $9,475 thousand, a recovery from $(39,660) thousand in 2023[480]. - Cash and cash equivalents increased to $19,590 thousand as of December 31, 2024, up from $10,650 thousand at the end of 2023, indicating improved liquidity[481]. - The company generated cash from investing activities amounting to $16,506 thousand in 2024, compared to $38,123 thousand in 2023[480]. - The cash flow from financing activities was $(16,717) thousand in 2024, reflecting ongoing capital management efforts[480]. - The cash used in operating activities included a net cash outflow of $77,599 related to working capital fluctuations and a net cash inflow of $65,282 from trading activities[487]. Debt and Obligations - Long-term indebtedness increased to $34,904 as of December 31, 2024, compared to $29,716 in 2023[508]. - Total contractual obligations as of December 31, 2024, amount to $133,089,000[517]. - Operating lease arrangements total $22,054,000, with $2,022,000 due in less than one year[517]. - Maturity of 2024 Notes is $5,146,000, with $2,573,000 due in less than one year[517]. - Interest on junior subordinated notes totals $50,220,000, with $4,292,000 due in less than one year[517]. Future Outlook and Strategic Initiatives - The company aims to address margin compression by diversifying its fixed income trading platform and expanding product lines[340]. - The company believes it can fund current operations and meet contractual obligations through existing cash resources and credit sources[517]. - There are uncertainties in the economy that may affect the company's ability to replace existing financing or find additional financing in the future[517].

Cohen & Company Inc. (NYSE:COHN) Q4 2024 Earnings Conference Call March 10, 2025 10:00 AM ET Company Participants Lester Brafman - CEO Joe Pooler - CFO Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to Cohen & Company's Fourth Quarter 2024 Earnings Call. My name is Sherry, and I will be your operator for today. Before we begin, Cohen & Company would like to remind everyone that some of the statements the company makes during this call contain forward-looking statements ...

Cohen & Company (COHN) Q4 2024 Earnings Call March 10, 2025 04:21 PM ET Company Participants Lester Brafman - Chief Executive OfficerJoseph Pooler - Executive VP, CFO & Treasurer Operator Good morning, ladies and gentlemen, and welcome to Cohen and Company's Fourth Quarter twenty twenty four Earnings Call. My name is Sherry, and I will be your operator for today. Before we begin, Cohen and Company would like to remind everyone that some of the statements the company makes during this call contain forward lo ...