PART I. FINANCIAL INFORMATION Presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements and detailed notes on accounting policies, revenue, leases, and other financial aspects [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Summarizes the company's assets, liabilities, and equity at specific reporting dates | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :----------------------------------- | :-------------------------- | :-------------------------- | | **Assets** | | | | Cash and cash equivalents | $145,037 | $331,558 | | Investments in short-term marketable debt securities | — | $75,830 | | Accounts receivable, net | $47,724 | $73,293 | | Total assets | $606,702 | $876,751 | | **Liabilities** | | | | Accrued compensation and benefits | $106,694 | $325,225 | | Total liabilities | $430,606 | $646,986 | | Redeemable non-controlling interests | $494,518 | $651,140 | | Total equity | $(318,422) | $(421,375) | | Total liabilities, redeemable non-controlling interests, and equity | $606,702 | $876,751 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, operating income, and net income (loss) over specified periods | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Revenues | $155,267 | $271,998 | $367,098 | $374,125 | | Total compensation and benefits | $108,314 | $310,471 | $257,558 | $425,868 | | Total expenses | $146,319 | $354,230 | $346,482 | $509,920 | | Operating income (loss) | $8,948 | $(82,232) | $20,616 | $(135,795) | | Net income (loss) | $4,268 | $(80,845) | $25,641 | $(150,845) | | Net income (loss) attributable to Perella Weinberg Partners | $2,738 | $(66,028) | $20,077 | $(101,872) | | Basic EPS | $0.04 | $(1.21) | $0.32 | $(1.96) | | Diluted EPS | $0.04 | $(1.21) | $0.29 | $(1.96) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Presents net income (loss) and other comprehensive income (loss) components for the reporting periods | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Net income (loss) | $4,268 | $(80,845) | $25,641 | $(150,845) | | Foreign currency translation gain (loss), net of tax | $4,996 | $(16) | $7,752 | $(1,206) | | Comprehensive income (loss) | $9,264 | $(80,861) | $33,393 | $(152,051) | | Comprehensive income (loss) attributable to Perella Weinberg Partners | $6,278 | $(66,080) | $25,549 | $(102,558) | [Condensed Consolidated Statements of Changes in Equity and Redeemable Non-Controlling Interests](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity%20and%20Redeemable%20Non-Controlling%20Interests) Outlines changes in total equity and redeemable non-controlling interests over the reporting period | Metric | Balance at December 31, 2024 (Thousands) | Balance at June 30, 2025 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total Equity | $(421,375) | $(318,422) | | Redeemable Non-Controlling Interests | $651,140 | $494,518 | | Net income (loss) attributable to Perella Weinberg Partners (Six Months) | N/A | $20,077 | | Changes in redemption value of redeemable non-controlling interests (Six Months) | N/A | $(139,162) (Q1) / $(5,343) (Q2) | | Treasury stock purchase (Six Months) | N/A | $(14,442) (Q1) / $(17,306) (Q2) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Reports cash flows from operating, investing, and financing activities for the specified periods | Cash Flow Activity | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by (used in) operating activities | $(120,394) | $(116,336) | | Net cash provided by (used in) investing activities | $73,080 | $76,464 | | Net cash provided by (used in) financing activities | $(144,719) | $(22,957) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(186,581) | $(63,591) | | Cash, cash equivalents and restricted cash, end of period | $146,190 | $186,511 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1—Organization and Nature of Business](index=11&type=section&id=Note%201%E2%80%94Organization%20and%20Nature%20of%20Business) Describes Perella Weinberg Partners as a global independent advisory firm and details its recent internal reorganization - PWP is a global independent advisory firm offering M&A, shareholder engagement, financing, capital solutions, and capital markets advisory services[24](index=24&type=chunk) - An internal reorganization in 2023-2024, including the Division and Merger, simplified the structure for partners' indirect interests in PWP OpCo without affecting the Company's rights or economic interests[26](index=26&type=chunk)[27](index=27&type=chunk) [Note 2—Summary of Significant Accounting Policies](index=11&type=section&id=Note%202%E2%80%94Summary%20of%20Significant%20Accounting%20Policies) Outlines significant accounting policies, including basis of presentation, estimates, cash, consolidation, and redeemable non-controlling interests - Redeemable non-controlling interests are recorded at the higher of their redemption value or ASC Topic 810 measurement, with changes recorded to Additional paid-in capital or Retained earnings[36](index=36&type=chunk) - The Company does not expect the adoption of ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation) to have a material impact on its consolidated financial statements[42](index=42&type=chunk)[43](index=43&type=chunk) [Note 3—Revenue and Receivables from Contracts with Customers](index=14&type=section&id=Note%203%E2%80%94Revenue%20and%20Receivables%20from%20Contracts%20with%20Customers) Details revenue recognition by type, contract balances, accounts receivable, and client concentrations | Revenue Type | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :------------- | :--------------------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Over time | $154,391 | $261,860 | $363,122 | $362,865 | | Point in time | $876 | $10,138 | $3,976 | $11,260 | | Total revenue | $155,267 | $271,998 | $367,098 | $374,125 | - As of June 30, 2025, **$25.1 million of accounts receivable** were concentrated with one client, all of which was subsequently received[47](index=47&type=chunk) [Note 4—Leases](index=15&type=section&id=Note%204%E2%80%94Leases) Covers operating lease agreements for office space and equipment, including a new sublease generating $27.5 million in income - The Company expects to recognize **$27.5 million in sublease income** over the seven-year term of a new sublease agreement for its New York office, commencing in Q3 2025[50](index=50&type=chunk) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Weighted-average discount rate – operating leases | 4.8% | 4.8% | | Weighted-average remaining lease term – operating leases | 12.8 years | 13.3 years | | Lease Cost | Three Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | | :----------------- | :--------------------------------------- | :-------------------------------------- | | Total net lease cost | $5,755 | $11,459 | [Note 5—Intangible Assets](index=16&type=section&id=Note%205%E2%80%94Intangible%20Assets) Details intangible assets, primarily customer relationships and trade names, and their amortization schedule through November 2026 | Intangible Asset | Net Carrying Amount (June 30, 2025, Thousands) | Net Carrying Amount (December 31, 2024, Thousands) | | :----------------------- | :--------------------------------------- | :--------------------------------------- | | Customer relationships | $6,715 | $9,085 | | Trade names and trademarks | $2,607 | $3,527 | | Total | $9,322 | $12,612 | | Amortization Expense | Three Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | | :------------------- | :--------------------------------------- | :-------------------------------------- | | Intangible assets | $1,600 | $3,300 | - Intangible assets are expected to be fully amortized by November 30, 2026, with expected amortization of **$6.6 million in 2025** and **$6.0 million in 2026**[53](index=53&type=chunk) [Note 6—Regulatory Requirements](index=16&type=section&id=Note%206%E2%80%94Regulatory%20Requirements) Confirms compliance of consolidated broker-dealer subsidiaries with minimum regulatory capital requirements - All regulated subsidiaries had capital in excess of their applicable minimum capital requirements as of June 30, 2025, and December 31, 2024[54](index=54&type=chunk) [Note 7—Fixed Assets](index=16&type=section&id=Note%207%E2%80%94Fixed%20Assets) Details fixed assets, including leasehold improvements, furniture, equipment, and software, recorded at cost less depreciation | Fixed Asset Category | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :------------------- | :-------------------------- | :-------------------------- | | Leasehold improvements | $82,818 | $81,860 | | Furniture and fixtures | $13,439 | $12,801 | | Equipment | $16,139 | $15,322 | | Software | $4,914 | $4,456 | | Total fixed assets, net | $80,547 | $84,886 | | Depreciation Expense | Three Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | | :------------------- | :--------------------------------------- | :-------------------------------------- | | Fixed assets | $3,300 | $6,600 | [Note 8—Income Taxes](index=18&type=section&id=Note%208%E2%80%94Income%20Taxes) Explains the effective income tax rate, its variances, and the liability for unrecognized tax benefits | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income (loss) before income taxes | $6,248 | $(81,487) | $18,147 | $(132,393) | | Income tax expense (benefit) | $1,980 | $(642) | $(7,494) | $18,452 | | Effective income tax rate | 31.7% | 0.8% | (41.3)% | (13.9)% | - The effective tax rate change is primarily due to the relative size of permanent differences to pre-tax income/loss and a **$12.6 million tax benefit** from RSU vesting appreciation in H1 2025[56](index=56&type=chunk)[136](index=136&type=chunk) [Note 9—Stockholders' Equity and Redeemable Non-Controlling Interests](index=18&type=section&id=Note%209%E2%80%94Stockholders'%20Equity%20and%20Redeemable%20Non-Controlling%20Interests) Details Class A common stock, share repurchases, redeemable non-controlling interests, and PWP OpCo Unitholder exchange rights - The Company repurchased **1,000,000 founder shares for $15.0 million** on June 3, 2024, and has purchased **14,653,188 shares for $137.9 million** since the program's inception through June 30, 2025[59](index=59&type=chunk) - PWP OpCo Unitholders can exchange units for Class A common stock (one-for-one) or cash, at the Company's discretion, with certain lock-up periods for working partners[61](index=61&type=chunk) - During Q2 2025, the Company settled exchanges for **1,234,357 Class A common shares**; in Q1 2025, it settled exchanges for **$28.3 million in cash** for **1,270,086 PWP OpCo Units**[62](index=62&type=chunk) [Note 10—Debt](index=19&type=section&id=Note%2010%E2%80%94Debt) Reports no outstanding debt and details the $50.0 million revolving credit facility with additional commitments - The Company has a **$50.0 million Revolving Credit Facility** with an additional **$20.0 million in incremental revolving commitments**, maturing July 1, 2028, with no outstanding balance as of June 30, 2025[64](index=64&type=chunk) [Note 11—Equity-Based Compensation](index=19&type=section&id=Note%2011%E2%80%94Equity-Based%20Compensation) Details equity-based compensation awards, including RSUs, PSUs, and Professional Partners Awards, and their expense recognition | Equity-Based Compensation | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | PWP Incentive Plan Awards (Professional fees) | $188 | $508 | $339 | $1,014 | | PWP Incentive Plan Awards (Equity-based compensation) | $28,034 | $30,459 | $54,279 | $63,324 | | Professional Partners Awards (equity-classified) | — | $60,794 | — | $74,736 | | Professional Partners Awards (liability-classified) | — | $69,245 | — | $69,245 | | Total Equity-based compensation | $28,034 | $160,498 | $54,279 | $207,305 | - As of June 30, 2025, total unrecognized compensation expense for unvested equity-based awards was **$187.1 million**, to be recognized over a weighted average period of **2.1 years**[74](index=74&type=chunk) - The Vesting Acceleration of Professional Partners Awards in Q2 2024 resulted in **$130.0 million of equity-based compensation expense**, including **$69.2 million for liability-classified awards**[71](index=71&type=chunk) [Note 12—Other Compensation and Benefits](index=21&type=section&id=Note%2012%E2%80%94Other%20Compensation%20and%20Benefits) Covers compensation and benefits expenses, including salaries, bonuses, taxes, and costs related to employee plans and business realignment | Expense Type | Three Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | | :------------------------- | :--------------------------------------- | :-------------------------------------- | | Employee benefit plans | $1,700 | $3,400 | | Business realignment (2024) | $2,400 (payments) | $13,600 (payments) | | Business realignment (2024) | $1,800 (separation/transition benefits) | $1,500 (equity-based comp amortization) | [Note 13—Net Income (Loss) Per Share Attributable to Class A Common Shareholders](index=22&type=section&id=Note%2013%E2%80%94Net%20Income%20(Loss)%20Per%20Share%20Attributable%20to%20Class%20A%20Common%20Shareholders) Provides calculations for basic and diluted net income (loss) per share, including adjustments for dilutive effects | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Perella Weinberg Partners – basic | $2,738 | $(66,028) | $20,077 | $(101,872) | | Weighted average shares of Class A common stock outstanding – basic | 63,064,731 | 54,589,542 | 62,604,779 | 51,894,913 | | Basic EPS | $0.04 | $(1.21) | $0.32 | $(1.96) | | Diluted EPS | $0.04 | $(1.21) | $0.29 | $(1.96) | | Weighted average potentially dilutive shares excluded (H1 2025) | — | 42,156,385 | 26,305,163 | 44,376,769 | [Note 14—Fair Value Measurements and Investments](index=23&type=section&id=Note%2014%E2%80%94Fair%20Value%20Measurements%20and%20Investments) Explains fair value measurement hierarchy and confirms no financial instruments were subject to fair value measurement as of June 30, 2025 - As of June 30, 2025, the Company held no financial instruments subject to fair value measurement[89](index=89&type=chunk) - As of December 31, 2024, the Company held **$95.994 million in U.S. Treasury securities** classified as Level 1 financial assets[88](index=88&type=chunk) [Note 15—Related Party Transactions](index=24&type=section&id=Note%2015%E2%80%94Related%20Party%20Transactions) Describes transactions with related parties, including the tax receivable agreement, partner notes, and loans - The Company has a liability of **$75.6 million** as of June 30, 2025, under the tax receivable agreement, with estimated payments totaling **$75.566 million** through 2029 and thereafter[92](index=92&type=chunk) - Substantially all Partner Promissory Notes were settled as of June 30, 2025. During H1 2025, **$0.5 million of partner loans** were repaid through the cancellation of PWP OpCo units[93](index=93&type=chunk)[94](index=94&type=chunk) [Note 16—Commitments and Contingencies](index=25&type=section&id=Note%2016%E2%80%94Commitments%20and%20Contingencies) Details indemnification provisions and ongoing legal actions, with management assessing no material adverse effect - The Company is a defendant in a lawsuit against three former partners and one former employee, with a bench trial concluded in March 2025 and a decision pending[98](index=98&type=chunk) - Legal and professional fees related to this litigation were **$11.3 million** for the six months ended June 30, 2025, and **$5.9 million** for the six months ended June 30, 2024[99](index=99&type=chunk) [Note 17—Segment and Geographic Information](index=26&type=section&id=Note%2017%E2%80%94Segment%20and%20Geographic%20Information) Describes the company's single Advisory segment and the geographic distribution of revenues and assets | Geographic Region | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :---------------- | :--------------------------------------- | :--------------------------------------- | | **Revenues** | | | | United States | $288,094 | $322,477 | | International | $79,004 | $51,648 | | Total | $367,098 | $374,125 | | **Assets** | | | | United States | $439,441 | $687,784 | | International | $167,261 | $188,967 | | Total | $606,702 | $876,751 | - For the six months ended June 30, 2025, no individual client accounted for more than **10% of aggregate revenues**[104](index=104&type=chunk) [Note 18—Subsequent Events](index=26&type=section&id=Note%2018%E2%80%94Subsequent%20Events) Reports a declared cash dividend and the agreement to acquire Devon Park Advisors, LLC, expected to close in Q4 - On August 1, 2025, a cash dividend of **$0.07 per Class A common share** was declared, payable September 10, 2025[106](index=106&type=chunk) - The Company entered an agreement to acquire Devon Park Advisors, LLC, a GP-led secondaries advisory firm, with closing expected in early Q4 2025, pending regulatory approval[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition, operational results, key measures, revenue, expenses, and liquidity [Executive Overview](index=28&type=section&id=Executive%20Overview) Provides a high-level summary of Perella Weinberg Partners as a global independent advisory firm - Perella Weinberg Partners is a leading global independent advisory firm providing strategic and financial advice to a diverse client base across active industry sectors and international markets[110](index=110&type=chunk) [Business Environment](index=28&type=section&id=Business%20Environment) Discusses how economic and market conditions influence the company's advisory services and strategic investments - The Company's financial performance is influenced by economic and global financial market conditions, with advisory services benefiting from macroeconomic changes driving client activity in business combinations, acquisitions, divestitures, capital raises, and restructurings[112](index=112&type=chunk) - The Company continues to invest in its platform to achieve scale, accelerate growth, and deliver value[112](index=112&type=chunk) [Key Financial Measures](index=28&type=section&id=Key%20Financial%20Measures) Explains the nature and variability of key financial measures, including revenue, compensation, and non-compensation expenses - Revenue generation is highly competitive and unpredictable, often tied to transaction completion, which can be delayed or terminated due to various factors[114](index=114&type=chunk)[115](index=115&type=chunk) - Compensation and benefits expenses are determined by revenues, headcount, labor market conditions, and anticipated requirements, leading to material fluctuations[119](index=119&type=chunk) - Non-compensation expenses, including professional fees, technology, rent, and travel, are variable due to headcount, business needs, and inflation[121](index=121&type=chunk) - Non-controlling interests represent ownership in PWP OpCo by other holders, with profits and losses allocated proportionally, except for certain equity-based compensation prior to the Merger[123](index=123&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Analyzes the company's revenues, expenses, operating income, and net income for the reported periods | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Change (%) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | Change (%) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Revenues | $155,267 | $271,998 | (43)% | $367,098 | $374,125 | (2)% | | Total compensation and benefits | $108,314 | $310,471 | (65)% | $257,558 | $425,868 | (40)% | | Non-compensation expenses | $38,005 | $43,759 | (13)% | $88,924 | $84,052 | 6% | | Operating income (loss) | $8,948 | $(82,232) | NM | $20,616 | $(135,795) | NM | | Other income (expense) | $(2,700) | $745 | NM | $(2,469) | $3,402 | NM | | Net income (loss) attributable to Perella Weinberg Partners | $2,738 | $(66,028) | NM | $20,077 | $(101,872) | NM | - Revenues decreased by **43% for Q2 2025** and **2% for H1 2025**, primarily due to decreased M&A activity and a significant fee event in the prior year, partially offset by increased financing and capital solutions activity[126](index=126&type=chunk)[127](index=127&type=chunk) - Total compensation and benefits expenses decreased significantly (**65% for Q2**, **40% for H1**) due to the prior year's Vesting Acceleration of Professional Partners Awards and a lower bonus accrual in the current period[128](index=128&type=chunk)[129](index=129&type=chunk) - Non-compensation expenses decreased by **13% for Q2 2025** due to lower litigation and bad debt, but increased by **6% for H1 2025** due to higher litigation, travel, rent, and technology costs[130](index=130&type=chunk)[131](index=131&type=chunk) - Non-operating income shifted to expenses for both Q2 and H1 2025, primarily due to net losses from foreign exchange rate fluctuations, partially offset by interest income[132](index=132&type=chunk)[133](index=133&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's sources of liquidity, primary cash needs, and capital management strategies - Primary liquidity sources include cash, cash equivalents, short-term marketable debt securities, net cash from operations, and the **$50.0 million Revolving Credit Facility** (with no outstanding balance as of June 30, 2025)[137](index=137&type=chunk)[140](index=140&type=chunk) - Primary cash needs are for working capital, operating expenses (especially cash compensation in Q1), share repurchases, withholding tax payments, cash-settled PWP OpCo Unit exchanges, income taxes, dividends, capital expenditures, and tax receivable agreement payments[137](index=137&type=chunk) | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :----------------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $145,037 | $331,558 | | Accounts receivable, net | $47,724 | $73,293 | - The Company believes current liquidity sources are sufficient to meet operating needs and commitments for the next twelve months[142](index=142&type=chunk) - As of June 30, 2025, **$62.1 million** remains authorized for share repurchases under the **$200.0 million program**[149](index=149&type=chunk) [Cash Flows](index=33&type=section&id=Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities and their primary drivers | Cash Flow Activity | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Operating Activities | $(120,394) | $(116,336) | | Investing Activities | $73,080 | $76,464 | | Financing Activities | $(144,719) | $(22,957) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(186,581) | $(63,591) | | Cash, cash equivalents and restricted cash, end of period | $146,190 | $186,511 | - Operating activities resulted in net cash outflows for both periods, primarily due to cash operating expenses and discretionary bonuses[144](index=144&type=chunk)[146](index=146&type=chunk) - Investing activities generated net cash inflows, mainly from maturities of U.S. Treasury securities, partially offset by capital expenditures[145](index=145&type=chunk)[147](index=147&type=chunk) - Financing activities resulted in net cash outflows, driven by withholding tax payments, cash settlement of PWP OpCo Units, share repurchases, and dividend payments[145](index=145&type=chunk)[148](index=148&type=chunk) [Market Risk and Credit Risk](index=34&type=section&id=Market%20Risk%20and%20Credit%20Risk) Assesses the company's exposure to market risk, credit risk, and foreign exchange rate fluctuations - The Company's business is not capital-intensive and does not invest in derivative instruments, resulting in low exposure to market risk (interest rate, commodity price) or significant credit risk[154](index=154&type=chunk) - Credit risk is managed by regularly reviewing accounts receivable, maintaining an allowance for credit losses, and holding investments primarily with investment-grade credit quality[156](index=156&type=chunk)[157](index=157&type=chunk) - The Company is exposed to exchange rate risk from foreign subsidiaries and non-functional currency transactions, resulting in a net loss of **$(4.5) million** from foreign exchange rate fluctuations in H1 2025[158](index=158&type=chunk) [Critical Accounting Estimates](index=36&type=section&id=Critical%20Accounting%20Estimates) Highlights management's significant estimates and assumptions used in preparing the financial statements - Management makes significant estimates and assumptions in preparing financial statements, including those related to the tax receivable agreement, revenue recognition, income taxes, equity-based compensation, goodwill and intangible assets, and fair value measurements[31](index=31&type=chunk)[32](index=32&type=chunk)[159](index=159&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Refers to the Market Risk and Credit Risk section for detailed disclosures on market risk - Quantitative and qualitative disclosures about market risk are set forth in the 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Credit Risk' section[160](index=160&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Details the evaluation of disclosure controls and procedures and reports on changes in internal control over financial reporting [Management's Evaluation of Disclosure Controls and Procedures](index=36&type=section&id=Management's%20Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Reports management's conclusion on the effectiveness of disclosure controls and procedures as of June 30, 2025 - Management, under the supervision of the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of June 30, 2025[163](index=163&type=chunk) [Changes in Internal Control over Financial Reporting](index=36&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Confirms no material changes in internal control over financial reporting during the six months ended June 30, 2025 - There were no material changes in internal control over financial reporting during the six months ended June 30, 2025[164](index=164&type=chunk) PART II. OTHER INFORMATION Provides additional legal, risk, equity, and other disclosures not covered in the financial statements [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Details the company's involvement in legal actions in the ordinary course of business, referencing Note 16 - The Company is named as a defendant in legal actions relating to transactions in the ordinary course of business, with details provided in Note 16[165](index=165&type=chunk)[166](index=166&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) States no material changes or updates to risk factors since the Annual Report on Form 10-K for 2024 - No material changes or updates to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Summarizes the company's repurchases of equity securities during the three months ended June 30, 2025 [Repurchases of Equity Securities](index=37&type=section&id=Repurchases%20of%20Equity%20Securities) Details the total number of shares repurchased and the average price paid per unit during the quarter | Period | Total Number of Shares Repurchased | Average Price Paid Per Unit | Approximate Dollar Value of Shares yet to be Purchased Under the Publicly Announced Plans or Programs | | :-------------------------- | :------------------------------- | :-------------------------- | :------------------------------------------------------------------------------------------ | | April 1, 2025 - April 30, 2025 | — | $— | $— | | May 1, 2025 - May 31, 2025 | 876,409 | $17.47 | $64,074,631 | | June 1, 2025 - June 30, 2025 | 106,648 | $18.76 | $62,074,357 | | Total | 983,057 | $17.61 | | [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Reports no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[169](index=169&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) States that Mine Safety Disclosures are not applicable to the company - Mine Safety Disclosures are not applicable[170](index=170&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) Provides other relevant information, including details on insider trading arrangements and policies [Insider Trading Arrangements and Policies](index=37&type=section&id=Insider%20Trading%20Arrangements%20and%20Policies) Confirms no director or officer adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[171](index=171&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Quarterly Report on Form 10-Q, including certifications and XBRL documents - Exhibits include certifications from the Principal Executive Officer and Principal Financial Officer (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[173](index=173&type=chunk) [Signatures](index=39&type=section&id=Signatures) Confirms the report is duly signed by the Chief Executive Officer and Chief Financial Officer - The report is signed by Andrew Bednar, Chief Executive Officer, and Alexandra Gottschalk, Chief Financial Officer, on August 1, 2025[178](index=178&type=chunk)

Financial Data and Key Metrics Changes - The company reported second quarter revenues of $155 million and first half revenues of $367 million, with first half revenues flat year-over-year [4] - Adjusted compensation margin remained at 67% of revenues, while adjusted non-compensation expense for the quarter was $36 million, a significant drop from the prior year [9][10] - Compensation expenses for the first half totaled $86 million, up 9.5% from the same period last year, with a mid-single-digit increase expected for the full year [10] Business Line Data and Key Metrics Changes - The business broadened out by industry, product, and geography, resulting in a higher average fee per engagement [4] - The acquisition of Devon Park Advisors is expected to significantly enhance the company's private funds advisory capabilities, impacting revenue mix positively [7][8] Market Data and Key Metrics Changes - The company noted that while transactions are taking longer to convert into announcements, there is a growing level of client dialogue and related mandates [5] - The restructuring business is trending toward a record year, indicating strong activity levels despite previous market uncertainties [52] Company Strategy and Development Direction - The company is focused on building its business through significant investments in senior talent, with plans to add six partners and three managing directors by year-end [6] - The acquisition of Devon Park Advisors aligns with the company's strategy to enhance its service offerings to alternative asset managers, reflecting a commitment to growth in private capital [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a broader acceleration in announcements, despite current challenges in closing large transactions [5] - The tone of client engagement has improved since April and May, with a return to more typical announcement cadence observed in July [18] Other Important Information - The company returned an additional $24 million to equity holders in the second quarter through various means, including dividends [10] - The company has maintained a quarterly dividend of $0.07 per share and has returned over $675 million to equity holders since going public [11] Q&A Session Summary Question: Clarification on gross fee backlog and engagement momentum - Management clarified that backlog refers to announced and pending transactions, while the pipeline includes all engagement activity, which is currently at peak levels [16][17] Question: Revenue outlook for the remainder of the year - Management refrained from providing specific revenue guidance but expressed confidence in broadening the revenue base and improving engagement levels [31][33] Question: Large cap deal outlook and restructuring activity - Management noted an increase in large-scale transactions and strong activity in the restructuring business, indicating a positive trend moving forward [48][52] Question: Hiring scale and capital return aspirations - Management indicated no limitations on hiring more partners and managing directors, focusing on cultural fit and strategic alignment [58][62]

Financial Data and Key Metrics Changes - The company reported second quarter revenues of $155 million and first half revenues of $367 million, with first half revenues flat year over year but with a different composition compared to the previous year [5][10] - Adjusted compensation margin remained at 67% of revenues, while adjusted non-compensation expense for the quarter was $36 million, a significant drop from the prior year [10][11] - Compensation expenses for the first half totaled $86 million, up 9.5% from the same period last year, with a mid single-digit increase expected for the full year [11][12] Business Line Data and Key Metrics Changes - The business broadened out by industry, product, and geography, resulting in a higher average fee per engagement [5][6] - The acquisition of Devon Park Advisors is expected to significantly enhance the company's private funds advisory capabilities, changing the revenue mix overnight [8][9] Market Data and Key Metrics Changes - The company noted that while transactions are taking longer to convert into announcements, there is a growing level of client dialogue and related mandates [6][18] - The restructuring business is trending toward a record year, indicating strong activity levels despite previous market uncertainties [48] Company Strategy and Development Direction - The company is focused on building a business regardless of the environment, with significant investments in senior talent through hiring and promotions [7] - The acquisition of Devon Park Advisors aligns with the company's strategy to serve alternative asset managers and expand its capabilities in private capital [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a broader acceleration in announcements, despite current challenges in getting transactions announced [6][18] - The leading indicators for the business are strong, with a positive outlook for the remainder of the year, although predicting exact closing dates remains challenging [32][33] Other Important Information - The company returned an additional $24 million to equity holders in the second quarter and has returned over $675 million to equity holders since going public [12] - The company declared a quarterly dividend of $0.07 per share [12] Q&A Session Summary Question: Clarification on gross fee backlog and engagement momentum - Management clarified that backlog refers to announced and pending transactions, while the pipeline includes all activity throughout the firm, which is currently at peak levels [14][16] Question: Outlook for revenue for the remainder of the year - Management stated that while they do not provide revenue guidance, they are pleased with the broadening of the business and the positive engagement trends [29][31] Question: Update on partner headcount - The company ended June with 64 partners and expects to reach at least 76 by year-end due to new hires [25][26] Question: Large cap deal outlook and restructuring activity - Management noted an increase in large-scale transactions and strong activity in the restructuring business, indicating a positive trend moving forward [41][48]

Acquisition of Devon Park Advisors - Perella Weinberg Partners has announced the acquisition of Devon Park Advisors, a GP-led secondaries advisory firm, which will enhance its service offerings to alternative asset managers [4][8] - The acquisition is expected to be completed in early Q4 2025, pending regulatory approval [4] Financial Overview - Second Quarter - For Q2 2025, Perella Weinberg reported revenues of $155.3 million, a decrease of 43% from $272.0 million in Q2 2024 [9] - The adjusted pre-tax income for Q2 2025 was $12 million, with GAAP pre-tax income at $6 million [6] - The company experienced a significant decline in M&A contributions, although financing and capital solutions activity increased [9] Financial Overview - First Half - For the first half of 2025, revenues totaled $367.1 million, down 2% from $374.1 million in the same period of 2024 [9] - Adjusted pre-tax income for the first half was $33 million, while GAAP pre-tax income was $18 million [6] Talent Investment - The company has accelerated investments in talent, adding six partners and six managing directors year-to-date, with plans for additional hires [6][8] - Devon Park's team of 15 advisory professionals will integrate into Perella Weinberg's Private Funds Advisory business [7] Capital Management - As of June 30, 2025, Perella Weinberg had a strong balance sheet with $145 million in cash and no debt [17] - The firm returned over $145 million to equity holders through share repurchases and dividends [18][19]

Core Viewpoint - Perella Weinberg Partners plans to release its financial results for Q2 2025 on August 1, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results for the second quarter of 2025 will be announced on August 1, 2025 [1] - A conference call and webcast will be held on the same day at 9:00 AM ET to review the results [2] - The conference call will be accessible to the public via a listen-only webcast on the company's website [2] Group 2: Company Overview - Perella Weinberg is a leading global independent advisory firm providing strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds [3] - The firm offers a wide range of advisory services across active industry sectors and global markets [3] - Perella Weinberg has approximately 700 employees and maintains offices in major cities including New York, London, and San Francisco [3]

Financial Performance - Revenues for the three months ended March 31, 2025, were $211.8 million, a 107% increase from $102.1 million in the same period of 2024, driven by increased M&A and financing activities [120]. - Operating income for the three months ended March 31, 2025, was $11.7 million, a significant recovery from an operating loss of $53.6 million in the same period of 2024 [119]. - Net income attributable to Perella Weinberg Partners for the three months ended March 31, 2025, was $17.3 million, compared to a net loss of $35.8 million in the prior year [119]. - For the three months ended March 31, 2025, the company reported a net income of $21.4 million, a significant improvement from a net loss of $70 million in the same period of 2024 [131]. Expenses - Total compensation and benefits expenses rose to $149.2 million for the three months ended March 31, 2025, reflecting a 29% increase compared to $115.4 million in the prior year, primarily due to higher bonus accruals [121]. - Non-compensation expenses increased by 26% to $50.9 million for the three months ended March 31, 2025, up from $40.3 million in 2024, mainly due to higher litigation and travel expenses [122]. Cash Flow and Liquidity - The company had cash balances of $111.2 million as of March 31, 2025, down from $331.6 million at the end of 2024, indicating a significant decrease in liquidity [126]. - Operating activities resulted in a net cash outflow of $176.5 million for Q1 2025, compared to a net cash outflow of $206.3 million in Q1 2024, primarily due to cash operating expense outflows [132][134]. - Investing activities generated a net cash inflow of $73.9 million in Q1 2025, attributed to the maturation of investments in U.S. Treasury securities, compared to $82.7 million in Q1 2024 [133][135]. - Financing activities resulted in a net cash outflow of $120.8 million in Q1 2025, primarily due to withholding tax payments and share repurchases, contrasting with a net cash inflow of $33.8 million in Q1 2024 [133][135]. - As of March 31, 2025, the company had $112.5 million in cash, cash equivalents, and restricted cash, down from $159.6 million at the end of Q1 2024 [131]. - The company believes its current liquidity sources will be sufficient to meet operating needs for the next twelve months, but may seek additional financing if necessary [130]. Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2025, was (79.6)%, compared to (37.5)% in the same period of 2024, influenced by the size of permanent differences relative to pre-tax income [124]. - As of March 31, 2025, the company had an amount due of $65.5 million under the tax receivable agreement related to the Business Combination [139]. - The company is actively monitoring its regulatory capital base to ensure compliance with minimum capital requirements across various jurisdictions [138]. Client Metrics - The total number of advisory clients decreased to 74 in Q1 2025 from 76 in Q1 2024, while clients with fees greater than $1.0 million increased from 22 to 39 [120]. Currency and Foreign Transactions - The company reported a net impact of $(1.8) million from non-functional currency related transaction losses for Q1 2025, compared to a gain of $0.5 million in Q1 2024 [145]. - The company held cash balances of $26.9 million in non-U.S. dollar currencies as of March 31, 2025, including pound sterling, euros, and Canadian dollars [145]. Stock Repurchase Program - The board of directors approved a stock repurchase program allowing for the repurchase of up to $200 million of Class A common stock, with $79.4 million remaining as of March 31, 2025 [136].

Financial Data and Key Metrics Changes - The company reported first quarter revenues of $212 million, up more than 100% year over year, marking the highest first quarter revenue in its history [5] - Adjusted compensation margin was 67% of revenues, consistent with full year 2024 accrual expectations [11] - Adjusted non-compensation expense for the quarter was $49 million, which included over $10 million in litigation-related costs, driving year-over-year and quarter-over-quarter increases [11] Business Line Data and Key Metrics Changes - Revenue in the U.S. and Europe doubled, driven by larger fees per transaction due to a focus on client coverage and business selection [5] - The restructuring, liability management, and financing advisory business saw a meaningful uptick in demand starting in April [7] Market Data and Key Metrics Changes - The company noted that while deal announcements have slowed, clients are not terminating processes but rather pausing, indicating a strong client engagement with all-time high stats in new business reviews and requests for meetings [6][7] - The announced impending backlog has declined from record levels, but the pipeline remains strong [7] Company Strategy and Development Direction - The company aims to showcase its strength and lean into growth initiatives, emphasizing a client-centric model that allows for quick resource allocation to meet client needs [9] - The firm is focused on recruiting talent, having added several managing directors in key sectors, indicating a strategy to capitalize on market disruptions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects despite current market volatility, anticipating that once clarity on policy actions is achieved, transaction activity will accelerate [6][10] - The company views the current environment as an opportunity to solidify client trust and strengthen its brand [10] Other Important Information - The company returned $121 million to equity holders in the first quarter, including over $14 million in open market repurchases [12] - The firm ended the quarter with $111 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [13] Q&A Session Summary Question: Impact of M&A Environment on Business - Management noted that clients are pausing rather than terminating M&A processes, indicating ongoing interest in M&A despite market volatility [17][18] Question: Contribution of Non-M&A Businesses - Management highlighted strong performance in the liability management business, attributing success to both market conditions and gaining market share [21][22] Question: Regional Activity in M&A - Management observed a more unified M&A environment in Europe compared to the U.S., with a greater willingness for regional transactions [33][34] Question: Recruiting Environment - Management indicated that slower announcement activity in M&A could lead to better recruiting opportunities, with a focus on adding talent regardless of market conditions [36][38] Question: Clarity on Compensation Ratio - The 67% compensation ratio reflects the best estimate at the end of the quarter, with potential adjustments as the year progresses [42][43] Question: Non-Compensation Expenses - Litigation-related costs were over $11 million for the quarter, expected to be one-time in nature, with guidance for a single-digit increase in non-compensation expenses for the year remaining unchanged [44][45]

Financial Data and Key Metrics Changes - The company reported first quarter revenues of $212 million, up more than 100% year over year, marking the highest first quarter revenue in its history [4] - Adjusted compensation margin was 67% of revenues, consistent with full year 2024 accrual expectations [10] - Adjusted non-compensation expense for the quarter was $49 million, which included over $10 million in litigation-related costs, driving year-over-year and quarter-over-quarter increases [10] Business Line Data and Key Metrics Changes - The restructuring, liability management, and financing advisory business saw a meaningful uptick in demand starting in April [6] - The company did not break out specific revenue contributions from different business lines but emphasized a strong client-centric model that allows quick mobilization of resources to meet client needs [22] Market Data and Key Metrics Changes - Revenue in the U.S. and Europe doubled, driven by larger fees per transaction due to a focus on client coverage and business selection [4] - The company noted a balanced growth trend across the U.S. and Europe, with Europe showing a greater willingness for regional transactions and a more accommodative regulatory backdrop [33] Company Strategy and Development Direction - The company aims to showcase its strength and lean into growth initiatives during periods of disruption, emphasizing long-term prospects [7] - The firm is focused on recruiting talent, with plans to accelerate hiring irrespective of market conditions, taking advantage of the current environment to attract skilled professionals [38] Management's Comments on Operating Environment and Future Outlook - Management noted that while deal announcements have slowed, clients are pausing rather than terminating processes, indicating ongoing interest in M&A [17] - The company anticipates that once clarity on policy actions improves, transaction activity will accelerate, similar to past recoveries from market dislocations [5] Other Important Information - The company returned $121 million to equity holders in the first quarter, including over $14 million in open market repurchases [12] - The firm ended the quarter with $111 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [12] Q&A Session Summary Question: M&A Environment and Client Plans - Management indicated that clients are pausing rather than terminating M&A processes due to current volatility, suggesting a potential rebound in activity once clarity improves [17] Question: Contribution of Non-M&A Businesses - Management expressed confidence in the liability management business, noting that the current market conditions are conducive to its growth [22] Question: Activity in Europe vs. U.S. - Management observed a more unified market in Europe post-policy actions, with a greater willingness for regional transactions compared to the U.S. [33] Question: Recruiting Environment - Management confirmed that slower announcement activity in M&A leads to better recruiting opportunities, with an ongoing commitment to adding talent [38] Question: Clarity on Compensation Ratio - The 67% compensation ratio reflects the best estimate at the end of the quarter, with potential adjustments as the year progresses [43] Question: Non-Compensation Expenses - Litigation costs were over $11 million for the quarter, considered one-time in nature, with guidance for a single-digit increase in non-compensation expenses for the year remaining unchanged [45]

Financial Overview - Perella Weinberg Partners reported first quarter revenues of $211.8 million, a 107% increase from $102.1 million in the same period last year, driven by larger transactions and related fee events across various sectors and geographies [3][4][23] - The company achieved an adjusted pre-tax income of $21 million and a GAAP pre-tax income of $12 million for the quarter [5][10] - Adjusted earnings per share (EPS) was $0.28, while GAAP diluted EPS was $0.24 [5][10] Expenses - Total compensation and benefits for Q1 2025 were $149.2 million, up from $115.4 million in Q1 2024, with a compensation ratio of 70% compared to 113% in the previous year [4][23] - Non-compensation expenses increased to $50.9 million from $40.3 million year-over-year, primarily due to higher professional fees and travel costs [5][23] Capital Management - The company maintained a strong balance sheet with $111 million in cash and no debt as of March 31, 2025 [9][10] - Perella Weinberg returned $121 million to equity holders through share repurchases and dividends, including a declared quarterly dividend of $0.07 per share [10][11] Talent Investment - The firm added four managing directors and plans to onboard two additional partners and two managing directors in the coming months, indicating a focus on talent acquisition to support growth [5][10]

Company Overview - Perella Weinberg Partners is a leading global independent advisory firm providing strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds [3] - The firm offers a wide range of advisory services across active industry sectors and global markets, employing approximately 700 individuals [3] Upcoming Financial Results - Perella Weinberg Partners plans to release its financial results for the first quarter of 2025 on May 2, 2025, before the market opens [1] - A conference call and webcast will be held on the same day at 9:00 AM ET to review the results, accessible to the public on a listen-only basis [2] Access Information - The conference call can be accessed via specific dial-in information, and a replay will be available two hours after the live call until May 9, 2025 [2][4] - The replay can be accessed through the Investors section of the company's website [2]