Cohen & Company Inc.

Second-quarter net income attributable to Cohen & Company shareholders was $3.6 million, or $0.94 per fully diluted share, versus $1.5 million, or $0.42 per share, in the prior quarter and $1.4 million, or $0.81 per share, in the year-ago quarter. Adjusted pretax income was $10.1 million versus $4 million in the prior quarter and $5.5 million in the prior year quarter. Investment banking and new issue revenue was $54 million, up from $45.7 million sequentially and $44.1 million year over year; net trading revenue was $13.9 million, up $700,000 sequentially and $3.1 million year over year; asset management revenue was $1.8 million; and principal transactions and other revenue was negative $300,000. Compensation and benefits expense was $48.2 million, net interest expense was $1.3 million, and loss from equity method affiliates was $3 million. Total equity was $109.3 million, consolidated corporate indebtedness was $28.8 million, and the gestation repo book was $4.1 billion at June 30, 2026. Forward-looking commentary was centered on continued pipeline growth in CCM, ongoing SPAC/de-SPAC momentum, expected closing of Columbus Circle Capital II’s business combination in the fourth quarter of 2026, and a quarterly dividend of $0.25 per share payable September 2.

Lester Brafman said the company had another solid quarter, driven by strong performance in its full-service boutique investment bank and expertise in SPAC and de-SPAC transactions. He pointed to recent milestones in Columbus Circle Capital II and III as evidence of momentum, and said the company is looking for opportunities to increase revenue and profitability. His tone was confident and focused on long-term stockholder value, including support from the quarterly dividend.

Joseph Pooler emphasized that the quarter’s strength came from CCM’s continuing pipeline growth and the value of warrants and units received from prior deals, some of which appreciated as related transactions progressed or closed. He reported $3.6 million of net income, $10.1 million of adjusted pretax income, $54 million of investment banking and new issue revenue, and $13.9 million of trading revenue, alongside $48.2 million of compensation and benefits expense and $1.3 million of net interest expense. On the balance sheet, he noted $109.3 million of total equity, $28.8 million of indebtedness, and the board’s declaration of a $0.25 quarterly dividend, while cautioning that future dividends depend on quarterly results and capital needs.

In Q&A, analysts asked what drove the quarter’s strength, and management said CCM continued to do well, kept adding to its pipeline, closed five SPAC IPOs, and completed a number of de-SPACs. They also said some previously received warrants and units rose in value as related deals signed or closed. On macro conditions, management said they are not seeing major impacts on deal volume or timing and that pacing is broadly similar to prior periods. When asked about the back-half pipeline mix, management declined to get granular publicly but said they expect it to resemble past activity.