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    COHN
    Earnings call· Jun 2026(Q2 FY26)

    Cohen & Co Q2 FY26 earnings call COHN

    Aug 3, 2026 Source

    Executive summary

    Cohen & Company Q2 FY26 — Strong Investment Banking Performance Driven by SPAC Activity

    Cohen & Company delivered a robust second quarter, primarily fueled by strong performance in its Capital Markets division, particularly in SPAC and de-SPAC transactions. The company continues to leverage its expertise in this niche, with significant milestones achieved in its sponsored SPACs. Management expressed confidence in future earnings potential and its commitment to stockholder value through its dividend policy, with no significant macro headwinds impacting deal pacing.

    Highlights

    5

    • Net income attributable to Cohen & Company Inc. shareholders increased to $3.6 million in Q2 FY26 from $1.5 million in Q1 FY26.

    • Adjusted pretax income rose significantly to $10.1 million in Q2 FY26 from $4 million in Q1 FY26.

    • Investment banking and new issue revenue grew to $54 million in Q2 FY26, up from $45.7 million in Q1 FY26.

    • Net trading revenue increased to $13.9 million in Q2 FY26, up $700,000 from the prior quarter.

    • Columbus Circle Capital III completed a $230 million IPO in July, and Columbus Circle Capital II signed a definitive business combination agreement.

    Concerns

    2

    • Asset management revenue decreased to $1.8 million in Q2 FY26, down $600,000 from the prior quarter.

    • Loss from equity method affiliates totaled $3 million, primarily due to an investment in Columbus Circle Capital Corp. II SPAC, resulting in a net loss of $900,000 after offsetting credits.

    Guidance & targets

    2
    CategoryTargetConfidence
    Columbus Circle Capital Corp. II SPAC business combination close
    Q4 FY26
    medium materiality
    High
    Investment banking pipeline
    Resembling past performance
    medium materiality
    Medium

    Operational metrics

    23
    Adjusted pretax income
    $10.1Mup from $4M Q1 FY26, up from $5.5M Q2 FY25
    Q2 FY26

    Key earnings measurement incorporating enterprise earnings attributable to convertible noncontrolling interest.

    Investment banking and new issue revenue
    $54Mup from $45.7M Q1 FY26, up from $44.1M Q2 FY25
    Q2 FY26

    Most of this revenue came from the CCM business.

    Net trading revenue
    $13.9Mup $700,000 QoQ, up $3.1M YoY
    Q2 FY26

    Increase from prior quarter reflected higher trading revenue from mortgage group and the SPAC equity and structured notes trading desks. Increase from prior year quarter reflected higher trading revenue from mortgage group and the CMO trading desk.

    Gestation repo book of business
    $4.1B
    Q2 FY26

    Balance at June 30, 2026.

    Asset management revenue
    $1.8Mdown $600,000 QoQ, down $300,000 YoY
    Q2 FY26

    Compared to prior quarter and prior year quarter.

    Principal transactions and other revenue
    -$300,000compared to -$3.4M Q1 FY26, and +$2.8M Q2 FY25
    Q2 FY26

    Compared to prior quarter and prior year quarter.

    Compensation and benefits expense
    $48.2Mup $6.9M QoQ, up $3.9M YoY
    Q2 FY26

    Change with both periods was primarily the result of fluctuations in revenue and the related variable incentive compensation.

    Number of employees
    129up from 128 Q1 FY26, up from 118 Q2 FY25
    Q2 FY26

    Headcount at the end of the quarter.

    Net interest expense
    $1.3M
    Q2 FY26

    Includes interest on various debt instruments.

    Loss from equity method affiliates
    $3Mcompared to $500,000 Q1 FY26 and $1.4M Q2 FY25
    Q2 FY26

    The loss in the current quarter was primarily driven by the investment in Columbus Circle Capital Corp. II SPAC.

    Net loss related to Columbus Circle Capital Corp. II SPAC
    $900,000
    Q2 FY26

    This is the net loss after an offsetting credit recorded in the net income attributable to the nonconvertible noncontrolling interest line item.

    Columbus Circle Capital Corp. II SPAC founder shares allocated
    667,000
    Q2 FY26

    These shares are currently allocated but will not be finalized until the business combination closes in Q4 FY26.

    Columbus Circle Capital Corp. II SPAC placement units forfeited
    360,000
    Q2 FY26

    CCM will forfeit these placement units as part of the agreement upon closing the business combination.

    Columbus Circle Capital Corp. III SPAC IPO amount
    $230M
    July 2026

    IPO completed on July 10, just after the end of the quarter.

    Columbus Circle Capital Corp. III SPAC founder shares allocated
    2.28 million
    July 2026

    These shares are currently allocated but will not be definitively determined until the consummation of a business combination.

    Columbus Circle Capital Corp. III SPAC placement units purchased
    360,000
    July 2026

    CCM used $3.6 million of its underwriting fee to purchase these placement units in the related private placement.

    Total equity excluding nonconvertible noncontrolling interest component
    $109.3Mup $6.6M from $102.6M end of FY25
    Q2 FY26

    Total enterprise equity, excluding the nonconvertible noncontrolling interest component, at quarter end.

    Nonconvertible noncontrolling interest component of total equity
    $5,000compared to $400,000 end of FY25
    Q2 FY26

    Component of total equity at the end of the quarter and year.

    Outstanding shares of common stock
    3.2 million
    Q2 FY26

    Shares outstanding at quarter end, including unvested shares and units.

    Convertible membership units of primary operating subsidiary
    42.2 million
    Q2 FY26

    Units of the primary operating subsidiary, Cohen & Company LLC, convertible into shares of common stock.

    Fully diluted shares of common stock outstanding as-if converted
    7.4 million
    Q2 FY26

    Total fully diluted shares outstanding on an as-if converted basis, assuming all unvested units and shares vest.

    Consolidated corporate indebtedness
    $28.8M
    Q2 FY26

    Carried at quarter end.

    Quarterly dividend per share
    $0.25
    Q2 FY26

    Declared by the Board of Directors, payable to stockholders of record.

    Deals & partnerships

    3
    Elroy Air Inc.Definitive business combination agreement for Columbus Circle Capital Corp. II SPAC

    Columbus Circle Capital Corp. II will be renamed Inflection Point Acquisition Corp. VII upon closing. Cohen & Company partnered with Inflection Point Asset Management for this transaction.

    Columbus Circle Capital Corp. IIICompletion of Initial Public Offering (IPO)$230M

    IPO completed on July 10, just after the end of the quarter. CCM used $3.6 million of its underwriting fee to purchase placement units.

    Inflection Point Asset ManagementPartnership for Columbus Circle Capital Corp. II SPAC business combination

    Inflection Point Asset Management has significant experience in negotiating and consummating de-SPAC transactions and made the introduction to Elroy Air.

    Risks & headwinds

    2
    Losses from equity method affiliatesQ2 FY26

    $3M loss in Q2 FY26, primarily from investment in Columbus Circle Capital Corp. II SPAC, resulting in a net loss of $900,000 after offsetting credits.

    Mitigation: Offsetting credit recorded in net income attributable to nonconvertible noncontrolling interest line item of $2.1 million.

    Macroeconomic impact on deal flow and timingNear-term

    No significant impact observed; pacing is consistent with historical trends.

    Mitigation: Company's pacing is similar to past performance, indicating resilience to market fluctuations.

    What to watch in Q3 FY26

    3

    Columbus Circle Capital Corp. II SPAC business combination closing

    Q4 FY26
    CurrentDefinitive agreement signed with Elroy Air Inc.
    TargetBusiness combination closes

    Why it matters

    The closing will finalize the allocation of SPAC founder shares and impact the company's equity method investments and potential future revenue streams.

    The number of the SPAC founder shares currently allocated to us is 667,000. But again, this number of founder shares will not be finalized and available until the business combination closes, which we anticipate will be in the fourth quarter of '26.

    Q&A highlights

    3

    What specific factors or deals contributed to the strong performance in the quarter?

    Management attributed the strength to the continued strong performance of the CCM business, particularly in SPAC and de-SPAC transactions. They highlighted closing five SPAC IPOs and several de-SPACs, noting that the value of consideration received from prior deals (warrants and units) increased as related business combinations were signed or closed.

    “No, we just continue to -- the CCM business continues to do well. It continues to grow its pipeline. It's adding to its pipeline regularly. I think we closed five SPAC IPOs, a number of de-SPACs.”

    asked by Unknown Analyst · answered by Joseph Pooler

    1 min read5 chapters

    Detailed Narrative

    01

    Investment Banking Strength

    The company's full-service boutique investment bank, Cohen & Company Capital Markets (CCM), was the primary driver of strong Q2 performance, particularly through its expertise in SPAC and de-SPAC transactions. This included closing five SPAC IPOs and a number of de-SPACs, with consideration from prior deals moving up in value due to business combination agreements or closures.

    02

    SPAC Milestones

    Cohen & Company achieved significant milestones with its sponsored SPACs. Columbus Circle Capital II signed a definitive business combination agreement with Elroy Air Inc. on June 26, with the closing anticipated in Q4 FY26. Additionally, Columbus Circle Capital III successfully completed its $230 million IPO on July 9, shortly after the quarter end.

    03

    Capital Structure and Equity

    The company reported total equity of $109.3 million at the end of Q2 FY26, an increase of $6.6 million from the end of FY25, excluding the nonconvertible noncontrolling interest component. The fully diluted share count, on an as-if converted basis, stood at 7.4 million shares, reflecting 3.2 million common shares and 42.2 million convertible membership units.

    04

    Dividend Policy

    The Board of Directors declared a quarterly dividend of $0.25 per share, payable on September 2. Management reiterated its commitment to evaluating the dividend policy each quarter, with future decisions dependent on quarterly results and capital needs, underscoring a focus on long-term stockholder value.

    05

    Macro Environment and Deal Pacing

    Management indicated that the macro environment has not significantly impacted the number or timing of📎 deals. While acknowledging typical market fluctuations, the company's deal pacing remains consistent with historical trends, suggesting a stable operating environment for its core investment banking activities.

    AI-generated summary of the company’s earnings call. Not investment advice.