Is the company observing any macro-related impacts on the volume or timing of deals closing?

Management stated that they are not seeing significant macro impacts, and the deal pacing remains consistent with past trends, acknowledging natural market fluctuations but no material change. “No, I think it's fairly consistent to what we've seen in the past. I mean there will be flurry of activity, then the market will cool off a little bit, but it's not a real -- I think our pacing is pretty similar to what it's been before.”

Can management provide details on the pipeline for SPAC, de-SPAC, capital raising, and M&A for the back half of the year?

Management declined to provide granular details on the pipeline breakdown but indicated that they expect the pipeline to resemble what the company has been doing in the past. “Well, I don't think we get publicly all that granular in terms of breaking down the various buckets. But I think going forward, I would expect our pipeline kind of resembling what we've been doing in the past.”

COHN

Cohen & Company (COHN) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 3, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Columbus Circle Capital Corp. II SPAC business combination close	Q4 FY26 medium materiality	Q4 · FY26	High
Investment banking pipeline	Resembling past performance medium materiality	Back half of FY26	Medium

Deals & partnerships

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. III Completion 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 Management Partnership 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

Losses from equity method affiliates Q2 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 timing Near-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

Columbus Circle Capital Corp. II SPAC business combination closing

Q4 FY26

Current Definitive agreement signed with Elroy Air Inc.

Target Business 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.

Find out whether COHN delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.