Financial Overview - Second Quarter
-- Revenues of $157 Million, Up 1% From a Year Ago -- GAAP Pre-Tax Income of $6 Million, Adjusted Pre-Tax Income of $27 Million -- GAAP Diluted EPS of $0.06, Adjusted EPS of $0.20
Financial Overview - First Half
-- Revenues of $305 Million, Down 17% From a Year Ago -- GAAP Pre-Tax Loss of $(5) Million, Adjusted Pre-Tax Income of $23 Million -- GAAP Diluted EPS of $0.08, Adjusted EPS of $0.25
Talent Investment
-- Year-To-Date Added Ten Partners and Eleven Managing Directors
-- Six Additional Partners and Three Additional Managing Directors to Join
Firm in Coming Months
Capital Management
-- Strong Balance Sheet with $116 Million of Cash and No Debt
-- Year-To-Date Retired More Than Two Million Shares and Share Equivalents
through Net Settlement
-- Year-To-Date Returned $73 Million in Aggregate to Equity Holders
-- Declared Quarterly Dividend of $0.07 Per Share
"Momentum continues to build across our business --
the pace of our announced transactions has accelerated
and our booked revenue plus announced and pending
backlog stands well above the level this time last
year. We remain focused on our clear and simple strategy
to scale our business by continuing to add senior
talent, and we expect to close our acquisition of
Gleacher Shacklock in the third quarter," stated Andrew
Bednar, Chief Executive Officer and Chairman.
NEW YORK, July 31, 2026 (GLOBE NEWSWIRE) -- Perella Weinberg Partners (the "Firm," "Company," "Perella Weinberg," or "PWP") $(PWP)$ today reported financial results for the second quarter ended June 30, 2026.
Revenues
For the second quarter of 2026, revenues were $156.5 million, an increase of 1% from $155.3 million reported in the second quarter of 2025, driven by an increase in fee-paying clients alongside greater M&A contribution, partially offset by a decrease in financing and capital solutions activity. For the first half of 2026, revenues were $305.4 million, a decrease of 17% from $367.1 million for the first half of 2025, driven by fewer large fee event closings and a related decrease in average fee per client. M&A revenues were up year-over-year for the first half of 2026, while the contribution from financing and capital solutions was down, with the year ago period benefiting from a number of large fee event closings.
Expenses
Three Months Ended June 30, Six Months Ended June 30,
----------------------------------------------
2026 2025 2026 2025
------------------- ------------------- ----------------- ----------------- -----------------
GAAP Adjusted GAAP Adjusted GAAP Adjusted GAAP Adjusted
---------- ------------ ---------- ---------- ---------- ---------- ---------- ----------
Operating expenses (Dollars in Millions) (Dollars in Millions)
Total compensation
and benefits $115.9 $ 98.8 $108.3 $104.0 $238.0 $215.9 $257.6 $246.0
% of Revenues 74% 63% 70% 67% 78% 71% 70% 67%
Non-compensation
expenses $ 35.6 $ 31.4 $ 38.0 $ 36.4 $ 75.3 $ 68.8 $ 88.9 $ 85.6
% of Revenues 23% 20% 24% 23% 25% 23% 24% 23%
Three Months Ended
GAAP total compensation and benefits were $115.9 million for the second quarter of 2026, compared to $108.3 million for the second quarter of 2025. The increase in GAAP total compensation and benefits reflected higher cash compensation driven by investments in new hires, as well as business realignment costs, including separation and transition benefits and the accelerated amortization of equity-based awards, associated with headcount reductions undertaken in the second quarter of 2026 to focus resources on higher-performing areas of the business. Adjusted total compensation and benefits were $98.8 million for the second quarter of 2026, compared to $104.0 million for the same period a year ago. The decrease in adjusted total compensation and benefits was the result of decreasing the year-to-date adjusted compensation margin to 71% compared to 79% in the first quarter of 2026, which was partially offset by higher cash and equity compensation costs related to investments in new hires.
GAAP non-compensation expenses were $35.6 million for the second quarter of 2026, compared to $38.0 million for the second quarter of 2025. Adjusted non-compensation expenses were $31.4 million for the second quarter of 2026, compared to $36.4 million for the same period a year ago. The decrease in non-compensation expenses was largely driven by lower professional fees due to litigation insurance recoveries in excess of previous estimates and a decrease in general, administrative and other expenses.
Six Months Ended
GAAP total compensation and benefits were $238.0 million for the six months ended June 30, 2026, compared to $257.6 million for the prior year period. Adjusted total compensation and benefits were $215.9 million for the six months ended June 30, 2026, compared to $246.0 million for the same period a year ago. The decrease in total compensation and benefits resulted from a lower discretionary bonus accrual on an absolute dollar basis associated with lower revenues. Excluding the lower bonus accrual, compensation expense increased year-over-year due to higher cash compensation from investments in new hires, and on a GAAP basis only, from business realignment costs. The higher compensation margin period-over-period reflects the decline in revenues on an absolute dollar basis against a higher non-bonus compensation base.
GAAP non-compensation expenses were $75.3 million for the six months ended June 30, 2026, compared to $88.9 million for the prior year period. Adjusted non-compensation expenses were $68.8 million for the six months ended June 30, 2026, compared to $85.6 million for the same period a year ago. The decrease in non-compensation expenses was largely driven by a decrease in professional fees due to reduced litigation spend and insurance recoveries in excess of previous estimates, a decrease in bad debt expense and lower rent, partially offset by a modest increase in technology spend.
Provision for Income Taxes
As of June 30, 2026, Perella Weinberg Partners owned 78.7% of the operating partnership ("PWP OpCo") and is subject to U.S. federal and state corporate income tax on its allocable share of earnings. Income earned by PWP OpCo is subject to certain state, local, and foreign income taxes. The GAAP income tax benefit for the six months ended June 30, 2026 was $10.1 million, which included $8.7 million of tax benefit from restricted stock units ("RSUs") that vested at a share price higher than the grant price.
For purposes of calculating adjusted if-converted net income, we present our results as if all partnership units had been converted to shares of Class A common stock and as if all of our adjusted results were subject to U.S. corporate income tax. For the six months ended June 30, 2026, adjusted if-converted net income included $10.1 million of tax benefit from the vesting of RSUs at a share price higher than the grant price.
Balance Sheet and Capital Management
As of June 30, 2026, we had $115.8 million of cash with no outstanding indebtedness and an undrawn revolving credit facility.
During the six months ended June 30, 2026, we returned $72.7 million in aggregate to our equity holders through: (i) the net settlement of 2,763,290 share equivalents at an average price per share of $20.12, (ii) the payment of aggregate dividends of $14.9 million to Class A common stockholders and (iii) the payment of $2.2 million in distributions to limited partners.
At June 30, 2026, there were 73.8 million shares of Class A common stock and 20.0 million partnership units outstanding.
During the three and six months ended June 30, 2026, Perella Weinberg made $1.7 million of cash payments related to the business realignment. Currently, we are estimating future cash payments of approximately $7.6 million related to the business realignment, which are expected to be paid by or soon after December 31, 2026.
The Board of Directors has declared a quarterly dividend of $0.07 per share of Class A common stock. The dividend will be paid on September 10, 2026 to Class A common stockholders of record on August 28, 2026.
Conference Call and Webcast
Management will host a webcast and conference call on Friday, July 31, 2026 at 9:00 am ET to discuss Perella Weinberg's financial results for the second quarter ended June 30, 2026.
A webcast of the conference call will be made available in the Investors section of Perella Weinberg's website at https://investors.pwpartners.com/.
The conference call can also be accessed by the following dial-in information:
-- Domestic: (800) 245-3047 -- International: (203) 518-9765 -- Conference ID: PWPQ226
Replay
A replay of the call will also be available two hours after the live call through August 7, 2026. To access the replay, dial (800) 839-1232 (Domestic) or (402) 220-0460 (International). The replay can also be accessed on the Investors section of the Company's website at https://investors.pwpartners.com/.
For those who listen to the rebroadcast of the call, we remind you that the remarks made are as of July 31, 2026, and have not been updated subsequent to the initial earnings call.
About Perella Weinberg
Comments