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    PWP
    Earnings call· Jun 2026(Q2 FY26)

    Perella Weinberg Partners Q2 FY26 earnings call PWP

    Jul 31, 2026 Source

    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

    3
    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

    Operational metrics

    20
    Revenue
    $157 millionup 1% from a year ago
    Q2 FY26

    Today, we reported second quarter revenues of $157 million, up 1% from a year ago

    Revenue
    $305 milliondown 17% compared to last year
    H1 FY26

    bringing our first half revenues to $305 million, down 17% compared to last year.

    Announced and pending backlog
    up nearly 2.5xfrom a year ago
    as of call date

    There are 2 metrics that are the strongest leading indicators of our business, our announced and pending backlog, and this metric is up nearly 2.5x from a year ago.

    Total booked plus announced and pending backlog
    up over 30%year-over-year
    as of call date

    And adding that to booked revenue, our total booked plus announced and pending backlog is up over 30% year-over-year as of today.

    Year-to-date announced transactions
    nearly 40%since the start of June
    YTD FY26

    the pace has accelerated this summer with nearly 40% of our year-to-date announcements occurring since the start of June.

    Restructuring and liability management transactions
    10
    Q2 FY26

    with 10 transactions announced in the quarter.

    Adjusted compensation ratio
    71%
    H1 FY26

    Our adjusted compensation ratio was 71% for the first half of the year.

    Adjusted non-compensation expense
    $31 milliondown $5 million from the prior year period and $6 million from the prior quarter period
    Q2 FY26

    Our adjusted non-compensation expense of $31 million for the quarter was down $5 million from the prior year period and $6 million from the prior quarter period, driven in part by an insurance recovery and lower bad debt expense.

    Adjusted non-compensation expense
    $69 milliondown 20% from the same period last year
    H1 FY26

    For the first half, adjusted non-compensation expenses totaled $69 million, down 20% from the same period last year.

    Capital returned to equity holders
    $73 million
    YTD FY26

    Year-to-date, we have returned $73 million to equity holders through a combination of dividends, distributions and RSV settlements.

    Total capital returned since IPO
    over $765 million
    since IPO (5 years)

    In our 5 years as a public company, we returned over $765 million in aggregate, including the retirement of 40 million shares or share equivalents.

    Shares retired since IPO
    40 million
    since IPO (5 years)

    including the retirement of 40 million shares or share equivalents.

    Cash balance
    $116 million
    Q2 FY26 end

    We ended the quarter with $116 million in cash

    Debt balance
    no debt
    Q2 FY26 end

    no debt

    Class A shares outstanding
    74 million
    Q2 FY26 end

    and 74 million Class A shares and 20 million partnership units outstanding.

    Partnership units outstanding
    20 million
    Q2 FY26 end

    and 74 million Class A shares and 20 million partnership units outstanding.

    Quarterly dividend per share
    $0.07
    Q2 FY26

    This morning, we declared a quarterly dividend of $0.07 per share.

    Internally promoted partners
    roughly 45%
    current

    Today, our internally promoted partners represent roughly 45% of our overall partnership

    Partners in ramp-up stage
    more than a 1/3
    current

    more than a 1/3 are in the ramp-up stage with under 3 years as a partner

    Private equity related business
    a little over 1/3
    current

    We've got today about a little over 1/3 of our business is private equity related.

    Product announcements

    1
    ProductTypeDetails
    Private Funds Advisory Businessmilestone

    Deals & partnerships

    1
    Gleacher ShacklockAcquisition 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

    2
    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

    5

    Adjusted compensation ratio

    Full year FY26
    Current71% for the first half of the year
    Targettowards 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.

    Q&A highlights

    5

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.'

    06

    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.

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