Shares declined 2.2% following earnings despite record revenue and profit marks, likely reflecting investor concerns over rising non-compensation expenses and cautious guidance on expense growth.
- Second quarter revenues hit $486 million, a 20% year-over-year increase, with all business segments contributing growth.
- Adjusted pretax income rose 32% to $106 million, with margin expansion to 21.7% from 19.7% a year ago.
- Adjusted EPS reached $1.97, up 28%, both second quarter and first half records.
- Non-compensation expenses increased 10% year-over-year in Q2 and are now expected to grow about 14% for the full year, higher than prior guidance, driven by elevated travel, professional fees, and technology investments.
- Strong cash position of $535 million with no funded debt; the company repurchased 498,000 shares in the quarter and declared a $0.25 quarterly dividend.
Community Discussion