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Perella Weinberg (PWP) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 31, 2026

Source: earnings call transcript

Executive summary

Perella Weinberg Q2 FY26 — Backlog Surges, Talent Investments Drive Future Growth

Perella Weinberg Partners reported Q2 FY26 revenues up 1% year-over-year, driven by a significant increase in announced and pending backlog, which is up over 30% from last year. The firm continues to invest heavily in talent, with new partner additions and promotions, positioning for future growth despite a slower first half. Management expressed confidence in the back half of 2026 and beyond, though acknowledged timeline risks for converting the robust pipeline into booked revenue.

Highlights

5

  • Q2 revenues of $157 million, up 1% from a year ago.

  • Announced and pending backlog up nearly 2.5x from a year ago.

  • Total booked plus announced and pending backlog up over 30% year-over-year.

  • Private funds advisory business closed transactions and is building pipeline.

  • 6 partners joining from Gleacher Shacklock acquisition and lateral hiring, plus 8 new partner promotes.

Concerns

4

  • First half revenues of $305 million, down 17% compared to last year.

  • Adjusted compensation ratio of 71% for H1, above the full-year target of 67%.

  • Timeline risk for converting large fee events in the backlog to booked revenue.

  • Valuation disconnect between buyers and sellers continues to limit private equity M&A activity.

Guidance & targets

CategoryTargetConfidence
Adjusted compensation ratio
67%
high materiality
Medium
Adjusted non-compensation expenses
single-digit percent decrease
medium materiality
Medium
Underlying adjusted tax rate
low to mid-30% range
medium materiality
Medium

Product announcements

ProductTypeDetails
Private Funds Advisory Businessmilestone

Deals & partnerships

Gleacher Shacklock Acquisition of an advisory firm to expand coverage in the U.K. and add partners.

We have 6 partners joining in the coming months from the Gleacher Shacklock acquisition and from continued lateral hiring.

Risks & headwinds

Timeline risk for converting announced and pending backlog into booked revenue. H2 FY26 and into FY27

The A&P backlog includes a number of large fee events, which won't all show up in our 2026 results.

Mitigation:Management believes there is no completion risk, only timeline risk, and expects to eventually realize the revenue.

Continued disconnect between buyer and seller valuations limiting private equity M&A activity. Ongoing

The main driver of the lack of a floodgate opening for private equity has really been valuation and just still continued disconnect between what buyers are willing to pay and sellers are prepared to part ways with.

Mitigation:Private equity remains busy with other transaction types (recapitalizations, continuation vehicles) until valuation gaps resolve.

What to watch in Q3 FY26

Adjusted compensation ratio

Full year FY26
Current 71% for the first half of the year
Target towards our full year target of 67%

Why it matters

Indicates progress towards profitability targets as revenue becomes back-half weighted.

With revenue weighted to the back half, we expect that ratio to come down towards our full year target of 67% as additional revenue is recognized.

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Q&A highlights

What's driving the acceleration in announcements, especially since June? What's the mix of large vs. small deals and geographic activity?

The acceleration is idiosyncratic to PWP's investments in client coverage (industrials, consumer, healthcare, infrastructure, tech), not broader market shifts. These investments are now paying off. Large deals ($10B+) are significant, but PWP also sees $700M-$2B deals. Geographic mix (80-20 US vs. RoW) is stable. Boardrooms are now in "transaction mode" with fewer excuses.

“less about something that's fundamentally changed. We haven't really changed what we're doing. It's more just the investments we've made in those particular client segments, they've been active, and we see, again, really great progress in particular in the last 6 weeks or so, and the backlog has built up very nicely.”

asked by Devin Ryan · answered by Andrew Bednar

2 min read 6 chapters

Detailed narrative

Strong Backlog and Pipeline Momentum

Perella Weinberg reported a significant increase in its announced and pending backlog, which is up nearly 2.5 times from a year ago. The total booked plus announced and pending backlog has grown over 30% year-over-year, indicating strong future revenue potential. This momentum is particularly evident in M&A, restructuring, and liability management, with 40% of year-to-date announcements occurring since June.

Strategic Talent Investments

The firm continues to prioritize talent acquisition and development, with 6 new partners joining from the Gleacher Shacklock acquisition and lateral hires, alongside 8 internal partner promotions. Internally promoted partners now represent approximately 45% of the overall partnership, highlighting a strong internal talent pipeline. Over a third of the partnership is in a ramp-up stage (under 3 years as partner), suggesting significant future productivity runway.

Back Half Weighted Performance

Management reiterated expectations for the year to be heavily weighted towards the second half, a trend that is currently playing out. While the firm does not provide revenue guidance, the robust and growing backlog, despite timeline risks for deal closures, underpins confidence in performance for the latter half of 2026 and into 2027.

Private Funds Advisory Traction

The newly established private funds advisory business reached an important milestone by closing its first transactions this quarter. The firm is encouraged by the pipeline being built in this area, noting quick traction with both internal teams and clients, expanding the firm's capabilities and client dialogue, particularly with alternative asset managers.

M&A Market Dynamics

The M&A market is characterized by increased activity in healthcare, industrials, energy, and TMT sectors. While large transactions (over $10 billion) account for a significant portion of overall volume, the $1 billion to $5 billion category has seen a slight decline in transaction count. The firm notes that prior barriers to transactions, such as tariffs or inflation, are no longer deterring boardrooms, which are now in 'transaction mode.'

Private Equity M&A Caution

Management remains cautious regarding a 'floodgate opening' from private equity, attributing the slower recovery in this segment primarily to a continued valuation disconnect between buyers and sellers, rather than financing availability or cost. While private equity remains active, it's often in non-traditional buy-side/sell-side activities like recapitalizations or continuation vehicles until valuation gaps narrow.

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