Cohen & Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $32.4 million, a decrease from $69.5 million in the prior quarter and $84.2 million in the prior year quarter.
• Net income attributable to Cohen & Company Inc. was $6.7 million ($0.12 per fully diluted share) for the quarter, compared to $3.6 million ($0.94 per share) in the prior quarter and $4.6 million ($2.58 per share) in the prior year quarter.
• Enterprise net income was $6.9 million for the quarter, down from $9.9 million in the prior quarter and $15.6 million in the prior year quarter.
• Adjusted pre-tax income was $0.6 million ($0.10 per fully diluted share) for the quarter, compared to $10.1 million ($1.62 per share) in the prior quarter and $16.4 million ($2.71 per share) in the prior year quarter.
• Investment banking and new issue revenue was $12.7 million, down $41.3 million from the prior quarter and $55.9 million from the prior year quarter, impacted by $17.6 million in mark-to-market losses on financial instruments received as consideration.
• Net trading revenue was $12.5 million, down $1.4 million from the prior quarter and $1.1 million from the prior year quarter.
• Asset management revenue was $1.7 million, down $0.2 million from the prior quarter and $0.3 million from the prior year quarter.
• Principal transactions and other revenue was $5.5 million, compared to a loss of $0.3 million in the prior quarter and $0.1 million in the prior year quarter, primarily driven by mark-to-market gains on Silvia, Inc.
• Compensation and benefits expense was $21.1 million, a decrease of $27.0 million from the prior quarter and $32.5 million from the prior year quarter.
• Operating expenses totaled $29.8 million for the quarter.
• Interest expense, net, was $1.4 million for the quarter.
• Loss from equity method affiliates was $1.3 million for the quarter, compared to a loss of $3.0 million in the prior quarter and $12.7 million in the prior year quarter.
• Income tax benefit was $6.3 million for the quarter, compared to an expense of $0.1 million in the prior quarter and $0.7 million in the prior year quarter, primarily due to a reduction in the valuation allowance against carryforward tax assets.
• Total equity was $119.6 million as of September 30, 2026, compared to $103.1 million as of December 31, 2025.
• Total assets were $1.0 billion as of September 30, 2026, compared to $700.6 million as of December 31, 2025.
• Debt was $31.4 million as of September 30, 2026, compared to $32.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Management stated a focus on consistent production through the end of the year and positioning to enter 2027 with a strong pipeline.
• The company expressed confidence in future earnings potential and value creation.
• The Board will continue to evaluate the dividend policy each quarter, with future decisions potentially impacted by operating results and capital needs.
• The company noted it will continue to evaluate operations on a quarterly basis regarding the valuation allowance applied against net operating loss and net capital loss tax assets, which could result in material future adjustments.

Business Segments and Product Lines:

• Cohen & Company Capital Markets (CCM) underwrote six SPAC IPOs and one closed-end fund, raising $1.8 billion for clients, and advised on and raised capital for eight de-SPAC transactions.
• The gestation repo book grew to an all-time high of $4.5 billion during the quarter.
• As of September 30, 2026, the company had approximately $1.3 billion of assets under management, primarily in fixed income assets including European bank and insurance trust preferred securities, debt from small and medium-sized insurance/reinsurance companies, and servicing commercial real estate loans.
• Principal transactions revenue was driven by mark-to-market gains on the company's position in Silvia, Inc., which completed a business combination with Columbus Circle Capital Corp I in December 2025.

Market and Competitive Landscape:

• CCM is described as a leading SPAC advisor on Wall Street.
• The company noted the environment in its businesses unfavorably impacted third-quarter results regarding mark-to-market adjustments.
• The company operates through Cohen & Company Securities, LLC in the United States and Cohen & Company Financial (Europe) S.A. in Europe.

Risks and Challenges:

• Results were unfavorably impacted by more than $17 million in mark-to-market adjustments in the investment banking and new issue revenue line.
• Forward-looking statements highlight risks including declines in general economic conditions, unfavorable market conditions reducing investment banking revenues, losses from third parties, liquidity issues, inability to attract personnel, litigation, reputational harm, competitive pressure, and volatility in founder shares.
• Specific risks include the possibility of payments to the company from CDOs being deferred or discontinued, the potential for the stockholder rights plan to fail to preserve deferred tax assets, and the risk that the gross pipeline may not result in consummated transactions.

Management Commentary and Tone:

• Daniel G. Cohen, Executive Chairman and Chief Executive Officer, stated the company is "encouraged by the continued strong performance" in its investment bank and gestation repo business.
• Management highlighted the strength of the mortgage business with the gestation repo book reaching an all-time high.
• Management expressed commitment to driving long-term value for stockholders, including through the quarterly dividend.
• The company generated $1.47 of fully diluted net income per share year-to-date.

Other Key Points:

• The Board of Directors declared a quarterly dividend of $0.25 per share, payable on December 14, 2026, to stockholders of record as of November 30, 2026.
• Daniel G. Cohen was appointed Chief Executive Officer in a separate announcement.
• The number of company employees was 135 as of September 30, 2026, compared to 129 as of June 30, 2026, and 124 as of September 30, 2025.
• The company hosted a conference call on November 12, 2026, to discuss the results.
• The company operates as a financial services company specializing in capital markets and asset management services, with segments in Capital Markets, Asset Management, and Principal Investing.