Record Quarterly Revenue
Firm-wide revenue of $616 million for the quarter, up 37% year-over-year and 16% sequentially, representing the company's second-highest quarterly revenue on record.
Strong Profit Growth
Adjusted firm-wide pretax net income doubled year-over-year to $81 million (+103% YoY). Fiscal year-to-date net income was $174 million, up 49% YoY.
Material EPS Improvement
Adjusted diluted earnings per share of $0.36, up 112% year-over-year.
Capital Markets Outperformance
Capital Markets revenue increased 43% YoY to $301 million. Investment banking revenue led the increase, rising roughly 170% YoY, and Capital Markets contributed $51 million in pretax net income (a 248% improvement YoY) with adjusted pretax profit margin improving by ~10 percentage points to 17%.
Wealth Management Momentum
Wealth Management revenue grew 30% YoY to $304 million and delivered $57 million in adjusted pretax net income (+57% YoY). Commission and fees rose 32% YoY to $240 million.
Record Client Assets
Client assets reached a new record of $145 billion, up 26% YoY, driven by market appreciation, acquisitions and positive net flows.
Australian Growth and Scale
Australia accounted for almost 50% of total investment banking revenues for the quarter. Australian client assets increased to $17 billion from $8 billion a year ago (with ~$6.7 billion attributable to the Wilsons Advisory acquisition). Australia contributed meaningfully to Capital Markets and Wealth Management profit growth.
Cost Efficiency and Margin Expansion
Total expenses as a percentage of revenue declined by 4.3 percentage points YoY. Firm-wide non-compensation expenses decreased $5 million (−3.2% YoY) to $152 million (25% of revenue). Interest expense declined $5.2 million (−16.8% YoY) to $26 million.
Strategic Portfolio Actions
Completed sale of the U.S. wholesale market making business to reduce cost base and risk profile; completed acquisitions of CRC-IB (renewable energy advisory) and Wilsons Advisory (Australian wealth scale), supporting sector expansion and inorganic growth.
Capital Allocation / Shareholder Return
Board approved a quarterly common share dividend of $0.085, reflecting confidence in the balance sheet and working capital sufficiency to support regulatory commitments and strategic priorities.