Binah Capital Group Reports Second Quarter 2025 Results

August 13, 2025 17:40 ET | Source: Binah Capital Group - Grew Total Revenue 2% Year-over-Year to $42 Million - - Assets Under Management (“AuM”) Increased 11% Year-over-Year to $28 Billion - - Net Loss of $0.7 Million, Comparable to the Prior Year - - Increased EBITDA* to $1.0 Million from $0.6 Million in the Prior Year - NEW YORK, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Binah Capital Group, Inc. (“Binah”, “Binah Capital” or the “Company”) (NASDAQ: BCG; BCGWW), a diversified financial services enterprise that owns and operates a network of industry-leading firms empowering independent financial advisors, across brokerage, advisory, and insurance solutions, today announced results for the quarter ended June 30, 2025. "We are pleased to report another strong performance this quarter, further demonstrating our advisor-centric platform built to power growth,” stated Craig Gould, Chief Executive Officer of Binah Capital Group. “Our second-quarter results reflect sustained momentum in our business model and disciplined execution of our strategy, with growth in both revenue and EBITDA. As we look ahead, our differentiated business model and strong execution capabilities position us well to capture the growth opportunities in front of us and create long-term shareholder value.” Second Quarter 2025 Key Highlights Total advisory and brokerage assets in the second quarter grew 11% year-over-year to $28 billion. Total revenue increased 2% year-over-year to $42 million. Gross profit grew 21% to $8.8 million, compared to $7.3 million in the prior-year period. Total operating expenses were $42 million, consistent with the prior-year period. GAAP net loss of $0.7 million, comparable to the prior-year period. EBITDA* increased to $1.0 million, compared to an EBITDA of $0.6 million in the prior year period. _______________ * 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. Liquidity and Capital The Company had cash and cash equivalents of $8.2 million and outstanding long-term debt, net of unamortized issuance costs of $18.6 million as of June 30, 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 CONDITIONJUNE 30, 2025 AND DECEMBER 31, 2024(in thousands, except per share amounts) Unaudited June 30, 2025 December 31, 2024 ASSETS Assets: Cash, cash equivalents and restricted cash$8,170 $8,486 Receivables, net: Commission receivable 9,607 9,198 Due from clearing broker 938 873 Other 1,101 938 Property and equipment, net 454 599 Right of use assets 3,417 3,730 Intangible assets, net 846 1,021 Goodwill 39,839 39,839 Other assets 3,419 1,993 Total Assets$67,791 $66,677 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Accounts payable, accrued expenses and other liabilities$12,234 $10,208 Commissions payable 11,709 11,468 Operating lease liabilities 3,528 3,820 Notes payable, net of unamortized debt issuance costs of $665 and $739 as of June 30, 2025 and December 31, 2024, respectively 18,620 19,561 Promissory notes-affiliates 5,313 5,442 Total Liabilities 51,404 50,499 Mezzanine Equity: Redeemable Series A Convertible Preferred Stock, par value $0.0001, 2,000,000 shares authorized, 1,590,000 and 1,555,000 shares outstanding at June 30, 2025 and December 31, 2024 15,300 14,947 Stockholders’ Equity and Members’ Equity: Series B Convertible Preferred Stock, par value $0.0001, 500,000 shares authorized, 150,000 shares outstanding at June 30, 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 June 30, 2025 and December 31, 2024 — — Additional paid-in-capital 22,613 22,984 Accumulated deficit (22,874) (23,253)Accumulated other comprehensive loss (152) — Total Stockholders’ Equity and Mezzanine Equity 16,387 16,178 TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY$67,791 $66,677 Binah Capital Group Consolidated Statement of Operations BINAH CAPITAL GROUP, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2025 AND 2024(in thousands, except per share amounts) Three Months Ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenues: Revenue from Contracts with Customers: Commissions 33,998 33,663 $75,137 $68,057 Advisory fees 6,627 6,320 13,542 12,004 Total Revenue from Contracts with Customers 40,625 39,983 88,679 80,061 Interest and other income 872 665 1,752 2,034 Total revenues 41,497 40,648 90,431 82,095 Expenses: Commissions and fees 32,740 33,352 73,038 67,007 Employee compensation and benefits 4,926 3,594 9,277 7,051 Rent and occupancy 286 290 571 585 Professional fees 713 602 1,249 4,939 Technology fees 690 480 1,443 842 Interest 543 795 1,109 1,857 Depreciation and amortization 183 293 370 594 Other 1,977 1,765 2,480 1,187 Total expenses 42,058 41,171 89,537 84,062 Income (loss) before provision for income taxes (561) (523) 894 (1,967) Provision for income taxes 93 213 516 352 Net income (loss)$(654) $(736) $378 $(2,319) Net income attributable to Legacy Wentworth Management Services LLC members — — — 730 Net income (loss) attributable to Binah Capital Group, Inc.$(654) $(736) 378 (3,049) Net income (loss) per share basic and diluted$(0.04) $(0.04) $0.02 $(0.18) Weighted average shares: basic and diluted 16,602 16,573 16,602 16,573 Binah Capital Group Reconciliation of GAAP Net Income to EBITDA EBITDA is 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 For the six months ended June 30, EBITDA Reconciliation 2025 2024 2025 2024 Net income (loss) (0.7) (0.7) 0.4 (2.3)Interest expense 0.5 0.8 1.1 1.9 Share-based compensation 0.8 - 0.8 - Provision for income taxes 0.1 0.2 0.5 0.4 Depreciation and amortization 0.2 0.3 0.4 0.6 EBITDA $1.0 $0.6 $3.2 $0.5

Binah Capital Group Reports Second Quarter 2025 Results

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