Binah Capital Group Reports First Quarter 2025 Results
- 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 EBITDA(1) 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:
Binah Capital Investor Relations
ir@binahcap.com
Binah Capital Public Relations
media@binahcap.com
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 CONDITION
MARCH 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 OPERATIONS
FOR 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.
(END) Dow Jones Newswires
May 15, 2025 17:36 ET (21:36 GMT)
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