Q3 FY2026
Filed Nov 12, 2026Cohen & Company reports Q3 2026 revenue of $32.4 million, down from $84.2 million a year earlier, with $6.7 million of net income attributable to Cohen & Company Inc. ($0.12 per diluted share) lifted by a $6.3 million income tax benefit; adjusted pre-tax income fell to $0.6 million
Revenue fell 61.5% year over year on the reported figures ($32,441 thousand against $84,213 thousand) and operating income fell to $2,630 thousand from $21,760 thousand. Adjusted pre-tax income of $648 thousand is the company's non-GAAP measure and is far below the prior-year quarter. The GAAP net income of $6,700 thousand is supported by a $(6,264) thousand income tax benefit, which the company says was mostly the result of a reduction in the valuation allowance against carryforward tax assets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026GAAP | $32.44M | – | – |
| Investment banking and new issue revenue, Q3 2026GAAP | $12.71M | down $41.3 million | down $55.9 million |
| Net trading revenue, Q3 2026GAAP | $12.51M | down $1.4 million | down $1.1 million |
| Asset management revenue, Q3 2026GAAP | $1.68M | down $0.2 million | down $0.3 million |
| Principal transactions and other revenue, Q3 2026GAAP | $5.54M | – | – |
| Compensation and benefits, Q3 2026GAAP | $21.14M | decreased by $27.0 million | decreased by $32.5 million |
| Non-compensation operating expenses, Q3 2026GAAP | $8.67M | – | – |
| Total operating expenses, Q3 2026GAAP | $29.81M | – | – |
| Operating income (loss), Q3 2026GAAP | $2.63M | – | – |
| Interest expense, net, Q3 2026GAAP | −$1.35M | – | – |
| Income (loss) from equity method affiliates, Q3 2026GAAP | −$1.25M | – | – |
| Income tax expense (benefit), Q3 2026GAAP | −$6.26M | – | – |
| Net income (loss), Q3 2026GAAP | $6.29M | – | – |
| Enterprise net income (loss), Q3 2026other | $6.91M | – | – |
| Net income (loss) attributable to Cohen & Company Inc., Q3 2026GAAP | $6.7M | – | – |
| Fully diluted net income (loss) per share, Q3 2026GAAP | $0.12 | – | – |
| Adjusted pre-tax income (loss), Q3 2026non-GAAP | $648K | – | – |
| Fully diluted adjusted pre-tax income (loss) per share, Q3 2026non-GAAP | $0.10 | – | – |
| Investment banking and new issue revenue, nine months 2026GAAP | $112.5M | – | – |
| Net trading revenue, nine months 2026GAAP | $39.60M | – | – |
| Asset management revenue, nine months 2026GAAP | $5.94M | – | – |
| Principal transactions and other revenue, nine months 2026GAAP | $1.81M | – | – |
| Total revenues, nine months 2026GAAP | $159.8M | – | – |
| Compensation and benefits, nine months 2026GAAP | $110.6M | – | – |
| Non-compensation operating expenses, nine months 2026GAAP | $29.02M | – | – |
| Total operating expenses, nine months 2026GAAP | $139.7M | – | – |
| Operating income (loss), nine months 2026GAAP | $20.17M | – | – |
| Net income (loss) attributable to Cohen & Company Inc., nine months 2026GAAP | $11.77M | – | – |
| Fully diluted net income (loss) per share, nine months 2026GAAP | $1.47 | – | – |
| Adjusted pre-tax income (loss), nine months 2026non-GAAP | $14.76M | – | – |
| Fully diluted adjusted pre-tax income (loss) per share, nine months 2026non-GAAP | $2.36 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Investment banking and new issueThe filing states that CCM, a division of Cohen & Company Securities, LLC, generated substantially all of the investment banking and new issue revenue in the three quarters presented. The company reports $17.6 million of mark-to-market losses on financial instruments CCM received as consideration for services in the current quarter, compared with $26.0 million of mark-to-market gains in the prior quarter. | $12.71M | down $41.3 million | down $55.9 million |
| Net tradingThe company attributes the decrease from both prior quarters to lower trading revenue from the SPAC equity, corporate, agency, and structured notes trading desks, partly offset by higher trading revenue from the mortgage group. The gestation repo book of business was $4.5 billion at September 30, 2026. | $12.51M | down $1.4 million | down $1.1 million |
| Asset managementThe filing prints the change against each comparison period but does not give a separate driver for this line. As of September 30, 2026, the company had approximately $1.3 billion of assets under management, primarily in fixed income assets. | $1.68M | down $0.2 million | down $0.3 million |
| Principal transactions and other revenueThe company states the current quarter revenue was primarily the result of mark-to-market gains on the Company's position in Silvia, Inc. (Nasdaq: SVIA), formerly ProCap Financial, Inc., which completed a business combination with Columbus Circle Capital Corp I in December 2025. | $5.54M | – | – |
Capital returns
- The Board of Directors declared a quarterly dividend of $0.25 per share, payable on December 14, 2026, to stockholders of record as of November 30, 2026.
- The Board will continue to evaluate the dividend policy each quarter, and future dividend decisions may be impacted by quarterly operating results and the Company's capital needs.
- No share repurchase amounts are printed in the release.
What drove it
- The company attributes the change in compensation and benefits from both prior quarters primarily to fluctuations in revenue and the related variable incentive compensation.
- The company states that the Q3 2026 investment banking and new issue revenue was affected by more than $17 million of mark-to-market adjustments, in large part due to the environment in its businesses.
- The company states that the Q3 2026 loss from equity method affiliates was primarily driven by a $0.8 million loss in Columbus Circle Capital Corp III, which had an offsetting credit of $0.6 million in the non-convertible non-controlling interest line, resulting in a net loss of $0.2 million to the Company, and by a $0.5 million loss on the Company's Dutch real estate investments.
- The company states that most of the Q3 2026 income tax benefit was a result of the reduction of the valuation allowance against carryforward tax assets. The Q3 2026 benefit includes a $6.5 million deferred tax benefit, partly offset by $0.2 million of current tax expense.
- The company states that Q3 2026 principal transactions revenue was primarily the result of mark-to-market gains on its Silvia, Inc. position.
Concerns
- Total revenues were $32,441 thousand against $84,213 thousand in the prior-year quarter and $69,487 thousand in the prior quarter.
- Operating income was $2,630 thousand, against $21,760 thousand in the prior-year quarter and $12,409 thousand in the prior quarter.
- Adjusted pre-tax income was $648 thousand ($0.10 per diluted share), against $16,375 thousand ($2.71 per diluted share) in the prior-year quarter.
- Net income attributable to Cohen & Company Inc. of $6,700 thousand includes a $(6,264) thousand income tax benefit. The company states that future valuation allowance adjustments could be material and may result in additional tax benefit or tax expense.
- The company states it has 'mark-to-market losses' of $17.6 million in investment banking and new issue revenue, compared with $26.0 million of gains in the prior quarter.
- The company's risk factors include the possibility that it will stop paying quarterly dividends, and the company states that the Board may consider the dividend against quarterly results and capital needs.
What to watch
- Whether the company can achieve 'consistent production through the end of the year' as stated by management.
- Mark-to-market results on financial instruments received as consideration for CCM services, which the company cites as a main swing factor in investment banking and new issue revenue.
- The size of the gestation repo book, which the company states reached an all-time high of $4.5 billion during the quarter.
- Future valuation allowance adjustments to the company's net operating loss and net capital loss tax assets, which the company says could be material.
- The company's Board decisions on the quarterly dividend, which the filing says will be evaluated each quarter.
- The CEO appointment: the filing states that Daniel G. Cohen, Executive Chairman of the Board, has been appointed Chief Executive Officer in a separate release that is not part of this filing text.
Balance sheet and cash flow
- Total assets were $1,006,883 thousand at September 30, 2026, compared with $700,585 thousand at December 31, 2025.
- Total equity was $119.6 million at September 30, 2026, compared with $103.1 million at December 31, 2025; the company states total equity excluding the non-convertible non-controlling interest component was $117.5 million, a $14.9 million increase from $102.6 million at December 31, 2025.
- Cash and cash equivalents were $68,812 thousand at September 30, 2026, compared with $56,762 thousand at December 31, 2025.
- Receivables under resale agreements were $561,696 thousand, compared with $357,408 thousand at December 31, 2025.
- Securities sold under agreements to repurchase were $603,527 thousand, compared with $400,391 thousand at December 31, 2025.
- Debt was $31,449 thousand, compared with $32,895 thousand at December 31, 2025.
- Investments, trading were $187,776 thousand, compared with $140,576 thousand at December 31, 2025.
- Accrued compensation was $95,231 thousand, compared with $92,689 thousand at December 31, 2025.
- Interest expense for Q3 2026 was $1.4 million, including $1.2 million on trust preferred securities debt, $94 thousand on senior promissory notes, and $42 thousand on the bank credit facility.
- The filing reports no operating cash flow, investing cash flow, or free cash flow figures.
Analysis
Cohen & Company reported third quarter 2026 total revenues of $32,441 thousand, compared with $69,487 thousand in the prior quarter and $84,213 thousand in the prior-year quarter. The decline is concentrated in investment banking and new issue revenue, which fell to $12,714 thousand from $54,059 thousand in the prior quarter and $68,607 thousand a year earlier. The company states that the current quarter included $17.6 million of mark-to-market losses on financial instruments CCM received as consideration for services, compared with $26.0 million of mark-to-market gains in the prior quarter. Net trading was comparatively stable at $12,508 thousand, down $1.4 million from the prior quarter. Principal transactions and other revenue was $5,538 thousand, which the company attributes mainly to mark-to-market gains on its Silvia, Inc. position.
Operating expenses fell more than revenue. Compensation and benefits were $21,143 thousand against $48,185 thousand in the prior quarter and $53,684 thousand a year earlier, and the company states the change was primarily the result of revenue fluctuations and the related variable incentive compensation. Operating income was $2,630 thousand, compared with $12,409 thousand in the prior quarter and $21,760 thousand in the prior-year quarter. Income (loss) from equity method affiliates was $(1,251) thousand. The company states that the largest component was a $0.8 million loss in Columbus Circle Capital Corp III, partly offset in non-controlling interest.
Net income attributable to Cohen & Company Inc. was $6,700 thousand, or $0.12 per fully diluted share, compared with $3,574 thousand ($0.94) in the prior quarter and $4,593 thousand ($2.58) a year earlier. The company reports a $(6,264) thousand income tax benefit, which it states was mostly a result of reducing the valuation allowance against carryforward tax assets. Adjusted pre-tax income, a non-GAAP measure, was $648 thousand, or $0.10 per fully diluted share, against $10,118 thousand ($1.62) in the prior quarter and $16,375 thousand ($2.71) a year earlier. For the nine months, the company reports GAAP fully diluted EPS of $1.47 against $3.61 a year earlier, and adjusted pre-tax income per share of $2.36 against $3.90.
On the balance sheet, total assets were $1,006,883 thousand at September 30, 2026, against $700,585 thousand at December 31, 2025. Receivables under resale agreements rose to $561,696 thousand from $357,408 thousand, and securities sold under agreements to repurchase rose to $603,527 thousand from $400,391 thousand. Total equity was $119.6 million, against $103.1 million at year end. Debt was $31,449 thousand, slightly lower than $32,895 thousand at year end. The filing does not include a cash flow statement, so operating and free cash flow cannot be read from it. The company declared a $0.25 quarterly dividend, payable December 14, 2026.
The company provides no quantitative guidance in this filing, and no prior outlook was supplied, so no guidance comparison is made. Management cautions that results are volatile quarter to quarter and that annual results may be the most meaningful gauge. The release also states that Daniel G. Cohen has been appointed Chief Executive Officer, as announced in a separate release.
Management, verbatim
While third quarter results were unfavorably impacted by more than $17 million of mark-to-market adjustments in our investment banking and new issue revenue line, in large part due to the environment in our businesses, we still generated $6.9 million of enterprise net income and $648,000 of adjusted pre-tax income.
Daniel G. Cohen, Executive Chairman and Chief Executive Officer
We are focused on consistent production through the end of the year and positioning ourselves to enter 2027 with a strong pipeline.
Daniel G. Cohen, Executive Chairman and Chief Executive Officer
We have generated $1.47 of fully diluted net income per share year to date and are confident in our future value creation potential.
Daniel G. Cohen, Executive Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- No quantitative guidance or outlook for future periods is given in the filing text.
- No previous outlook was provided, so no comparison of guidance to actuals is possible.
- No operating cash flow, investing cash flow or free cash flow figures are printed.
- No share repurchase amounts are printed.
- Percentage changes for revenue, operating income and net income are not printed in the filing.
- Quarter-over-quarter and year-over-year changes are not printed for most nine-month rows.
- Prior-quarter and prior-year changes are not printed for principal transactions and other revenue, total revenues, operating expenses, interest, equity method affiliates, income tax, net income and EPS lines.
- No segment-level revenue, operating income or margin figures are printed beyond the revenue lines; the filing describes three operating segments without segment financial tables.
- Prior-year-end balance sheet comparatives are printed for some lines only, and no September 30, 2025 balance sheet is included.
- The separate CEO appointment release is referenced but its text was not provided.
- The company's Q3 2026 effective tax rate and tax rate outlook are not printed as percentages.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.