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Stifel Reports Second Quarter 2025 Results

1. SF's Q2 2025 revenue rose to $1.3 billion, marking a yearly increase. 2. Net income available to shareholders decreased to $145.7 million from $156 million. 3. Financial advisor recruitment hit a 10-year high with 82 additions this quarter. 4. Record client assets reached $516.5 billion, up 9% year-over-year. 5. Capital raising revenues increased by 4%, reflecting strong market activity.

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$113.8907/31 01:55 PM EDTLatest Updated
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Why Bullish?

Despite a slight dip in net income, revenue growth and strong client asset figures signal positive momentum. Historical context shows that strong earnings often lead to share price appreciation, as evidenced by previous quarters where revenue increases led to stock price rallies.

How important is it?

The data reflecting record revenues and client assets directly influences investor interests in SF. Analyst focus on earnings performance often translates into swift reactions in stock prices, justifying a higher importance score.

Why Short Term?

The immediate market response will likely reflect strong quarterly results, affecting short-term investor sentiment positively. Comparisons to historical data indicate that earnings surprises can influence stock prices quickly, often within days or weeks.

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July 30, 2025 07:00 ET  | Source: Stifel Financial Corporation ST. LOUIS, July 30, 2025 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.3 billion for the three months ended June 30, 2025, compared with $1.2 billion a year ago. Net income available to common shareholders was $145.7 million, or $1.34 per diluted common share, compared with $156.0 million, or $1.41 per diluted common share for the second quarter of 2024. Non-GAAP net income available to common shareholders was $185.6 million, or $1.71 per diluted common share for the second quarter of 2025. Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “We achieved the best second quarter in our history, generating over $1.28 billion in net revenue and $1.71 in core EPS despite a challenging April. These results reflect the strength of our diversified, advice-driven model and the consistency of our performance across market cycles. With our strongest financial advisor recruiting quarter in 10 years, growing momentum in our Institutional business, and continued progress in key growth areas, we are confident about the second half of the year and beyond.” Highlights The Company reported net revenues of $1.28 billion, the third best quarter in its history, driven by higher transactional revenues, asset management revenues, net interest income, and capital raising revenues.Non-GAAP net income available to common shareholders of $1.71 per diluted common share.Transactional revenues increased 11% over the year-ago quarter.Asset management revenues increased 6% over the year-ago quarter.Capital raising revenues increased 4% over the year-ago quarter.Record client assets of $516.5 billion, up 9% over the year-ago quarter.Added 82 financial advisors during the quarter, including 20 experienced employee advisors and 1 experienced independent advisor and 36 experienced advisors from B. Riley.Non-GAAP pre-tax margin of 20.3%.Annualized return on tangible common equity (ROTCE) (5) of 21.7%.Tangible book value per common share (7) of $33.30, up 4% from prior year. Financial Summary (Unaudited) (000s)2Q 20252Q 20246m 20256m 2024GAAP Financial Highlights:    Net revenues$1,284,286$1,217,932$2,539,755$2,380,970 Net income (1)$145,734$155,973$189,406$310,228 Diluted EPS (1)$1.34$1.41$1.73$2.82 Comp. ratio60.3%59.3%59.3%58.9% Non-comp. ratio23.1%22.1%29.8%22.4% Pre-tax margin16.6%18.6%10.9%18.7%Non-GAAP Financial Highlights:    Net revenues$1,284,378$1,217,941$2,539,833$2,380,979 Net income (1) (2)$185,626$176,570$239,862$339,916 Diluted EPS (1) (2)$1.71$1.60$2.18$3.09 Comp. ratio (2)58.0%58.0%58.0%58.0% Non-comp. ratio (2)21.7%21.4%28.7%21.8% Pre-tax margin (3)20.3%20.6%13.3%20.2% ROCE (4)15.2%15.1%9.8%14.7% ROTCE (5)21.7%21.9%13.8%21.4% Global Wealth Management (assets and loans in millions)  Net revenues$845,631$801,135$1,696,190$1,591,635 Pre-tax net income$306,056$299,173$432,461$589,921 Total client assets$516,532$474,137   Fee-based client assets$206,319$179,749   Bank loans (6)$21,448$19,820   Institutional Group     Net revenues$419,779$390,721$804,708$742,097   Equity$220,168$217,694$456,360$424,111   Fixed Income$199,611$173,027$348,348$317,986 Pre-tax net income$61,040$48,813$88,471$85,922 Global Wealth Management Global Wealth Management reported net revenues of $845.6 million for the three months ended June 30, 2025 compared with $801.1 million during the second quarter of 2024. Pre-tax net income was $306.1 million compared with $299.2 million in the second quarter of 2024. Highlights Ranked No. 1 in Overall Employee Advisor Satisfaction for the third straight year.Added 82 financial advisors during the quarter, including 20 experienced employee advisors, and 1 experienced independent advisor, and 36 experienced financial advisors from B. Riley, with a combine total trailing 12 month production of $50.6 million.Record client assets of $516.5 billion, up 9% over the year-ago quarter.Fee-based client assets of $206.3 billion, up 15% over the year-ago quarter. Net revenues increased 6% from a year ago: Transactional revenues increased 3% over the year-ago quarter reflecting an increase in client activity.Asset management revenues increased 6% over the year-ago quarter reflecting higher asset values and net new asset growth.Net interest income increased 8% over the year-ago quarter driven by balance sheet growth, partially offset by lower interest rates and changes in the deposit mix. Total Expenses: Compensation expense as a percentage of net revenues increased to 49.7% primarily as a result of higher compensable revenues.Provision for credit losses was primarily impacted by specific reserves on individual credits and overall loan growth in the retained portfolio.Non-compensation operating expenses as a percentage of net revenues increased to 14.1% primarily as a result of an increase in the provision for credit losses, partially offset by revenue growth over the year-ago quarter. Summary Results of Operations(000s)2Q 20252Q 2024Net revenues$845,631$801,135  Transactional revenues182,666177,308  Asset management403,574380,737  Net interest income254,148236,281  Investment banking6,2245,780  Other income(981)1,029Total expenses $539,575$501,962  Compensation expense420,240392,941  Provision for credit losses8,3282,954  Non-comp. opex111,007106,067Pre-tax net income$306,056$299,173Compensation ratio49.7%49.0%Non-compensation ratio14.1%13.7%Pre-tax margin36.2%37.3% Institutional Group Institutional Group reported net revenues of $419.8 million for the three months ended June 30, 2025 compared with $390.7 million during the second quarter of 2024. Institutional Group reported pre-tax net income of $61.0 million for the three months ended June 30, 2025 compared $48.8 million in the second quarter of 2024. Highlights Investment banking revenues remained consistent with a year ago: Advisory revenues decreased 3% from the year-ago quarter driven by lower levels of completed advisory transactions.Fixed income capital raising revenues increased 12% over the year-ago quarter primarily driven by higher bond issuances.Equity capital raising revenues decreased 4% from the year-ago quarter driven by lower volumes. Fixed income transactional revenues increased 21% from a year ago: Fixed income transactional revenues increased from the year-ago quarter driven by higher client activity in a more volatile market environment and realized trading gains. Equity transactional revenues increased 16% from a year ago: Equity transactional revenues increased from the year-ago quarter primarily driven by increased client activity. Total Expenses: Compensation expense as a percentage of net revenues increased to 61.4% primarily driven by higher variable compensation expense as a result of an improving operating environment.Non-compensation operating expenses as a percentage of net revenues decreased to 24.1% primarily as a result of higher revenues. Summary Results of Operations(000s)2Q 20252Q 2024Net revenues$419,779$390,721  Investment banking227,236227,501    Advisory127,305131,411    Fixed income capital raising53,74448,143    Equity capital raising46,18747,947  Fixed income transactional129,117106,685  Equity transactional61,48952,907  Other1,9373,628Total expenses$358,739$341,908  Compensation expense257,697239,036  Non-comp. opex.101,042102,872Pre-tax net income$61,040$48,813Compensation ratio61.4%61.2%Non-compensation ratio24.1%26.3%Pre-tax margin14.5%12.5% Other Matters Highlights The Company repurchased $83.0 million of its outstanding common stock during the second quarter.Weighted average diluted shares outstanding decreased primarily as a result of share repurchases, partially offset by the increase in the Company’s share price.The Board of Directors declared a $0.46 quarterly dividend per share payable on June 16, 2025 to common shareholders of record on June 2, 2025.The Board of Directors declared a quarterly dividend on the outstanding shares of the Company’s preferred stock payable on June 16, 2025 to shareholders of record on June 2, 2025.  2Q 20252Q 2024Common stock repurchases   Repurchases (000s)$83,039$17,597 Number of shares (000s)970229 Average price$85.62$76.97 Period end shares (000s)102,190102,518Weighted average diluted shares outstanding (000s)108,847110,285 Effective tax rate27.5%27.1%Stifel Financial Corp. (8)   Tier 1 common capital ratio14.5%14.8% Tier 1 risk based capital ratio17.5%17.8% Tier 1 leverage capital ratio10.8%11.1% Tier 1 capital (MM)$4,116$4,044 Risk weighted assets (MM)$23,588$22,734 Average assets (MM)$38,013$36,275 Quarter end assets (MM)$39,860$37,809AgencyRatingOutlook Fitch RatingsBBB+Stable S&P Global RatingsBBBStable Conference Call Information Stifel Financial Corp. will host its second quarter 2025 financial results conference call on Wednesday, July 30, 2025, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements. All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 2769458. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call. Company Information Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases. A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations. The information provided herein and in the financial supplement, including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations. Cautionary Note Regarding Forward-Looking Statements This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Summary Results of Operations (Unaudited)  Three Months EndedSix Months Ended(000s, except per share amounts)6/30/20256/30/2024% Change3/31/2025% Change6/30/20256/30/2024% ChangeRevenues:        Commissions$ 200,669$ 183,3179.5$ 193,6703.6$ 394,339$ 368,7936.9Principal transactions172,603153,57412.4141,66021.8314,263292,5887.4Investment banking233,460233,2810.1237,942(1.9)471,402447,2305.4Asset management403,608380,7576.0409,541(1.4)813,149748,2338.7Other income3,69016,180(77.2)10,581(65.1)14,27121,130(32.5)Operating revenues1,014,030967,1094.9993,3942.12,007,4241,877,9746.9Interest revenue477,056498,152(4.2)475,6320.3952,6881,004,980(5.2)Total revenues1,491,0861,465,2611.81,469,0261.52,960,1122,882,9542.7Interest expense206,800247,329(16.4)213,557(3.2)420,357501,984(16.3)Net revenues1,284,2861,217,9325.41,255,4692.32,539,7552,380,9706.7Non-interest expenses:        Compensation and benefits774,936722,7197.2732,2205.81,507,1561,402,4147.5Non-compensation operating expenses295,530268,31910.1459,885(35.7)755,415532,97141.7Total non-interest expenses1,070,466991,0388.01,192,105(10.2)2,262,5711,935,38516.9Income before income taxes213,820226,894(5.8)63,364237.4277,184445,585(37.8)Provision for income taxes58,76561,600(4.6)10,372466.669,137116,716(40.8)Net income155,055165,294(6.2)52,992192.6208,047328,869(36.7)Preferred dividends9,3219,3210.09,3200.018,64118,6410.0Net income available to common shareholders$145,734$155,973(6.6)$43,672233.7$189,406$310,228(38.9)Earnings per common share:        Basic$1.41$1.50(6.0)$0.42235.7$1.82$2.98(38.9)Diluted$1.34$1.41(5.0)$0.39243.6$1.73$2.82(38.7)Cash dividends declared per common share$0.46$0.429.5$0.460.0$0.92$0.849.5Weighted average number of common shares outstanding:     Basic103,349104,150(0.8)104,764(1.4)104,049104,217(0.2)Diluted108,847110,285(1.3)110,635(1.6)109,791110,156(0.3) Non-GAAP Financial Measures (9)  Three Months EndedSix Months Ended(000s, except per share amounts)6/30/20256/30/20246/30/20256/30/2024GAAP net income$155,055$165,294$208,047$328,869Preferred dividend9,3219,32118,64118,641Net income available to common shareholders145,734155,973189,406310,228     Non-GAAP adjustments:    Merger-related (10)20,37613,82133,03725,975Restructuring and severance (11)27,0419,96127,0419,961Provision for income taxes (12)(7,525)(3,185)(9,622)(6,248)Total non-GAAP adjustments39,89220,59750,45629,688Non-GAAP net income available to common shareholders$185,626$176,570$239,862$339,916     Weighted average diluted shares outstanding108,847110,285109,791110,156     GAAP earnings per diluted common share$1.42$1.50$1.90$2.98Non-GAAP adjustments0.370.190.450.27Non-GAAP earnings per diluted common share$1.79$1.69$2.35$3.25     GAAP earnings per diluted common share available to common shareholders$1.34$1.41$1.73$2.82Non-GAAP adjustments0.370.190.450.27Non-GAAP earnings per diluted common share available to common shareholders$1.71$1.60$2.18$3.09 GAAP to Non-GAAP Reconciliation (9)  Three Months EndedSix Months Ended(000s)6/30/20256/30/20246/30/20256/30/2024GAAP compensation and benefits$774,936$722,719$1,507,156$1,402,414As a percentage of net revenues60.3%59.3%59.3%58.9%Non-GAAP adjustments:    Merger-related (10)(2,946)(5,764)(7,002)(11,297)Restructuring and severance (11)(27,041)(9,961)(27,041)(9,961)Total non-GAAP adjustments(29,987)(15,725)(34,043)(21,258)Non-GAAP compensation and benefits$744,949$706,994$1,473,113$1,381,156As a percentage of non-GAAP net revenues58.0%58.0%58.0%58.0%     GAAP non-compensation expenses$295,530$268,319$755,415$532,971As a percentage of net revenues23.1%22.1%29.8%22.4%Non-GAAP adjustments:    Merger-related (10)(17,338)(8,048)(25,957)(14,669)Non-GAAP non-compensation expenses$278,192$260,271$729,458$518,302As a percentage of non-GAAP net revenues21.7%21.4%28.7%21.8%Total adjustments$47,417$23,782$60,078$35,936 Footnotes    (1)Represents available to common shareholders. (2)Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” (3)Non-GAAP pre-tax margin is calculated by adding total non-GAAP adjustments and dividing it by non-GAAP net revenues. See “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” (4)Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity. (5)Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets were $84.3 million and $75.8 million as of June 30, 2025 and 2024, respectively. (6)Includes loans held for sale. (7)Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. (8)Capital ratios are estimates at the time of the Company’s earnings release, July 30, 2025. (9)The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure. (10)Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business. (11)The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries. (12)Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments.

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