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Binah Capital Group Reports First Quarter 2025 Results

1. Binah Capital reported 18% revenue growth to $49 million. 2. Net income improved to $1 million from previous $1.6 million loss. 3. EBITDA increased to $2.2 million, marking substantial operational improvement. 4. Total advisory assets rose 3% to $26 billion year-over-year. 5. New leadership and acquisitions bolster confidence in Binah's growth strategy.

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$2.3505/16 11:46 PM EDTLatest Updated
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FAQ

Why Bullish?

Binah's significant revenue and EBITDA growth indicates solid operational performance, which historically correlates with rising stock prices in similar cases.

How important is it?

Positive financial growth places Binah on a solid path, raising investor interest, suggesting significant impact on BCG's stock performance.

Why Short Term?

Immediate financial growth metrics are likely to influence BCG's stock price rapidly, particularly in the current favorable market environment.

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SPYIVVVOO
May 15, 2025 17:36 ET  | Source: Binah Capital Group - Grew Total Revenue 18% Year-over-Year to $49 Million - - Assets Under Management (“AuM”) Increased 3% Year-over-Year to $26 Billion - - Net Income of $1 Million - - Increased EBITDA1 to $2.2 Million from $(0.0) Million in the Prior Year - NEW YORK, May 15, 2025 (GLOBE NEWSWIRE) -- Binah Capital Group, Inc. (“Binah”, “Binah Capital” or the “Company”) (NASDAQ: BCG; BCGWW), a leading financial services enterprise that owns and operates a network of industry-leading firms empowering independent financial advisors, today announced results for the quarter ended March 31, 2025. "We once again delivered strong results, which is a continued testament to our differentiated RIA platform,” stated Craig Gould, Chief Executive Officer of Binah Capital Group. “Highlighting our business model's sustained momentum and the effective execution of our growth initiatives, we achieved double-digit year-over-year growth in both revenue and EBITDA while delivering GAAP profitability in the first quarter. Subsequent to quarter-end, we were pleased to welcome Bleakley Financial Group to the Binah family, underscoring the strength of our open-architecture platform and the confidence that leading entrepreneurial firms place in Binah. Additionally, we further expanded and strengthened our executive leadership with the appointment of Ryan Marcus as our Chief Business Development and Engagement Officer. Looking ahead, we believe our resilient and differentiated platform leaves us well-positioned to navigate the dynamic macro environment and drive long-term shareholder value.” First Quarter 2025 Key Highlights Total advisory and brokerage assets in the first quarter grew 3% year-over-year to $26 billion.Total revenue increased 18% year-over-year to $49 million.Gross profit of $8.6 million, compared to $7.8 million in the prior-year period.Total operating expenses were $7 million, compared to $10 million in the prior-year period. The change in operating expenses was primarily due to costs incurred in the prior-year period related to the consummation of the business combination but did not occur in the first quarter of 2025.GAAP net income of $1 million, compared to GAAP net loss of $(1.6) million in the prior-year period.EBITDA* increased to $2.2 million, compared to an EBITDA of $(0.0) in the prior year period. The increase was primarily attributable to higher revenue growth and lower expenses, as the first quarter 2025 did not include the business combination related costs that occurred in the prior-year period. Liquidity and Capital The Company had cash and cash equivalents of $9 million and outstanding long-term debt of $25 million as of March 31, 2025. _______________ * See "Non-GAAP Financial Measures” below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. About Binah Capital Group Binah Capital Group (“Binah Capital”, “Binah” or the “Company,” is a financial services enterprise that owns and operates a network of industry-leading firms that empower independent financial advisors. As a national broker-dealer aggregator, Binah specializes in delivering value through its innovative hybrid-friendly model, making it an optimal platform for RIAs navigating today’s complex financial landscape. Binah’s portfolio companies are built to help advisors run, manage, and execute commission-based business seamlessly while providing best in class resources to support their advisory practice. We don’t just offer tools—we cultivate partnerships. Binah Capital Group stands alongside RIAs as a trusted ally, delivering the structure, flexibility, and cutting-edge solutions they need to succeed in an increasingly competitive marketplace. For more, please visit: www.binahcap.com Contact: Non-GAAP Financial Measure EBITDA is a non-GAAP financial measure, defined as net income (loss) adjusted for depreciation expense, amortization, interest expense and income tax. The Company presents EBITDA because management believes that it can be a useful financial metric in understanding the Company’s earnings from operations. EBITDA is not a measure of the Company’s financial performance under GAAP or liquidity and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. The principal limitations of EBITDA are that it excludes certain expenses that are required by U.S. GAAP to be recorded in our consolidated financial statements. In addition, EBITDA is subject to inherent limitations as these metrics reflect the exercise of judgment by management about which expenses are excluded or included in determining EBITDA. A reconciliation of EBITDA to Net income, the most directly comparable GAAP measure, appears below. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be subject to the "safe harbor" created by those sections and other applicable laws. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Binah. Forward-looking statements include, but are not limited to statements regarding: Binah’s financial and operational outlook; Binah’s operational and financial strategies, including planned growth initiatives and the benefits thereof, Binah’s ability to successfully effect those strategies, and the expected results therefrom. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “expect,” ‎‎”intend,” “anticipate,” “goals,” “prospects,” “will,” “would,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions). While Binah believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: our ability to comply with supervisory and regulatory compliance obligations, the risk we may be held liable for misconduct by our advisors; poor performance of our investment products and services; our ability to effectively maintain and enhance our brand and reputation; our ability to expand and retain our customer base; our future capital requirements and sources and uses of cash; the risk that an increase in government regulation of the industries and markets in which we operate could negatively impact our business; the impact of worldwide and regional political, military or economic conditions, including declines in foreign currencies in relation to the value of the U.S. dollar, hyperinflation, devaluation and significant political or civil disturbances in international markets; and the effectiveness of Binah’s control environment, including the identification of control deficiencies. These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties set forth in documents filed by Binah with ‎the U.S. Securities and Exchange Commission from time to time, including the Annual ‎Report on Form 10-K and Quarterly Reports on Form 10-Q and subsequent ‎periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Binah cautions you not to place undue reliance on the ‎forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Binah assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Binah does not give any assurance that it will achieve its expectations. Binah Capital Group Consolidated Balance Sheet BINAH CAPITAL GROUP, INC.CONSOLIDATED STATEMENTS OF FINANCIAL CONDITIONMARCH 31, 2025 AND DECEMBER 31, 2024(in thousands, except per share amounts)         Unaudited      March 31, 2025  December 31, 2024 ASSETS        Assets:        Cash, cash equivalents and restricted cash $8,821  $8,486 Receivables, net:        Commission receivable  9,603   9,198 Due from clearing broker  565   873 Other  1,672   938 Property and equipment, net  511   599 Right of use assets  3,574   3,730 Intangible assets, net  933   1,021 Goodwill  39,839   39,839 Other assets  2,359   1,993          Total Assets $67,877  $66,677          LIABILITIES AND STOCKHOLDERS’ EQUITY                 Liabilities:        Accounts payable, accrued expenses and other liabilities $11,332  $10,208 Commissions payable  11,460   11,468 Operating lease liabilities  3,675   3,820 Notes payable, net of unamortized debt issuance costs of $702 and $739 as of March 31, 2025 and December 31, 2024, respectively  19,091   19,561 Promissory notes-affiliates  5,313   5,442          Total Liabilities  50,870   50,499          Mezzanine Equity:        Redeemable Series A Convertible Preferred Stock, par value $0.0001, 2,000,000 shares authorized, 1,572,000 and 1,555,000 shares outstanding at March 31, 2025 and December 31, 2024  15,121   14,947 Stockholders’ Equity:        Series B Convertible Preferred Stock, par value $0.0001, 500,000 shares authorized, 150,000 shares outstanding at March 31, 2025 and December 31, 2024  1,500   1,500 Common stock, $0.0001 par value, 55,000,000 authorized, 16,602,460 issued and outstanding at March 31, 2025 December 31, 2024  —   — Additional paid-in-capital  22,606   22,984 Accumulated deficit  (22,220)  (23,253)Total Stockholders’ Equity and Mezzanine Equity  17,007   16,178          TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY $67,877  $66,677  Binah Capital Group Consolidated Statement of Operations BINAH CAPITAL GROUP, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE PERIODS ENDED MARCH 31, 2025 AND 2024(in thousands, except per share amounts)      Three months ended March 31,   2025  2024 Revenues:      Revenue from Contracts with Customers:        Commissions $41,141  $34,395 Advisory fees  6,916   5,685 Total Revenue from Contracts with Customers  48,057   40,080 Interest and other income  879   1,369          Total revenues  48,936   41,449          Expenses:        Commissions and fees  40,298   33,655 Employee compensation and benefits  4,351   3,457 Rent and occupancy  285   295 Professional fees  536   4,337 Technology fees  753   362 Interest  566   1,062 Depreciation and amortization  187   301 Other  503   (578)         Total expenses  47,479   42,891          Income (loss) before provision for income taxes  1,456   (1,442)         Provision for income taxes  423   139          Net income (loss) $1,033  $(1,581)         Net income attributable to Legacy Wentworth Management Services LLC members  —   730          Net income (loss) attributable to Binah Capital Group, Inc. $1,033  $(2,311)         Net income (loss) per share basic and diluted $0.06  $(0.14)         Weighted average shares: basic and diluted  16,602   16,566  Binah Capital Group Reconciliation of GAAP Net Income to EBITDA EBITDA is a non-GAAP financial measure. EBITDA is defined as net income plus interest expense, provision for income taxes, and depreciation and amortization. The Company presents EBITDA because management believes that it can be a useful financial metric in understanding the Company’s earnings from operations. EBITDA is not a measure of the Company’s financial performance under GAAP or liquidity and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. Below is a reconciliation of net income to EBITDA for the periods presented (in millions):          For the Three Months Ended March 31, EBITDA Reconciliation 2025  2024 Net income (loss) $1.0   (1.5)Interest expense  0.6   1.1 Provision for income taxes  0.4   0.1 Depreciation and amortization  0.2   0.3 EBITDA $2.2   (0.0) _____________________________ 1 Non-GAAP Financial Measures. EBITDA is a non-GAAP financial measure defined as net income (loss) adjusted for depreciation expense, amortization expense, interest expense, and income tax. See the section captioned “Non-GAAP Financial Measures” below for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures, as required by Regulation G.

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