v3.25.2
Note 21 - Segment and Geographic Information
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

21. SEGMENT AND GEOGRAPHIC INFORMATION 

 

The Company operates within three business segments: Capital Markets, Asset Management, and Principal Investing. See note 1.  The Company's chief executive officer is the chief operating decision-maker (“CODM”) and is responsible for allocating resources and assessing the performance of the business segments.  The CODM relies on enterprise net income / (loss) to allocate resources because it provides insight into profitability for the entire enterprise including the convertible non-controlling interest but excluding non-convertible non-controlling interest.  The CODM uses enterprise net income / (loss) in the annual budgeting and forecasting process.  The CODM considers budget to actual variances on a monthly basis when making allocation decisions.  

 

The Company’s business segment information was prepared in a manner consistent with the internal reporting provided to the CODM and represents the information that is relied upon by management in its decision-making processes. Revenues and expenses directly associated with each business segment are included in determining net income / (loss) by segment.

 

The Company presents principal transactions gains and losses that relate to financial instruments that the Company received through CCM's activities as part of the Capital Markets segment with all other principal transactions gains and losses included in the Principal Investing segment. Prior to December 31, 2024, all principal transactions gains and losses were included in the Principal Investing segment.  The Company restated all prior periods presented to be consistent.  The CODM evaluates the performance of the Capital Markets segment including the gains and losses on the financial instruments received through CCM's activities.    

 

Interest expense in the table below includes non-operating interest expense.  Interest income and expense relating to operations is included in net trading revenue. See note 5. Indirect expenses (such as general and administrative expenses including executive and indirect overhead costs) not directly associated with specific business segments are not allocated to the business segments’ statements of operations.  See (1) below.

 

Beginning in 2024 annual reporting, the Company adopted ASU 2023-07 retrospectively. The following table sets forth our segment information of revenue, expenses, and income (loss) from operations. 

 

SEGMENT INFORMATION

Statement of Operations Information

Six Months Ended June 30, 2025

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Net trading

 $19,968  $-  $-  $19,968  $-  $19,968 

Asset management

  -   4,188   -   4,188   -   4,188 

New issue and advisory

  70,650   -   -   70,650   -   70,650 

Principal transactions

  (6,355)  -   (149)  (6,504)  -   (6,504)

Other income

  3   1,020   (714)  309   -   309 

Total revenues

  84,266   5,208   (863)  88,611   -   88,611 

Cash compensation and benefits

  55,336   2,757   359   58,452   5,332   63,784 

Stock based compensation

  192   50   -   242   1,963   2,205 

Business development

  1,050   115   1   1,166   611   1,777 

Occupancy and equipment

  1,361   106   -   1,467   573   2,040 

Subscriptions, clearing, and execution

  4,204   168   30   4,402   104   4,506 

Professional fee and other operating

  3,788   588   262   4,638   1,715   6,353 

Depreciation and amortization

  -   4   -   4   340   344 

Total operating expenses

  65,931   3,788   652   70,371   10,638   81,009 

Operating income (loss)

  18,335   1,420   (1,515)  18,240   (10,638)  7,602 

Interest income (expense)

  (40)  -   -   (40)  (2,904)  (2,944)

Gain on sale of management contracts

  -   837   -   837   -   837 

Income (loss) from equity method affiliates

  (481)  -   1,462   981   -   981 

Income (loss) before income taxes

  17,814   2,257   (53)  20,018   (13,542)  6,476 

Income tax expense (benefit)

  -   -   -   -   910   910 

Net income (loss)

  17,814   2,257   (53)  20,018   (14,452)  5,566 

Less: Net income (loss) attributable to the non-convertible non-controlling interest of the Operating LLC

  -   -   (314)  (314)  -   (314)

Enterprise net income (loss)

  17,814   2,257   261   20,332   (14,452)  5,880 

Less: Net income (loss) attributable to the convertible non-controlling interest of Cohen & Company Inc.

  -   -   -   -   4,143   4,143 

Net income (loss) attributable to Cohen & Company Inc.

 $17,814  $2,257  $261  $20,332  $(18,595) $1,737 
                         

Other statement of operations data

                        

Cash compensation as a percentage of revenue

  65.67%  52.94%  41.60%  65.96%  N/A   71.98%

Operating income / (loss) as a percentage of revenue

  21.76%  27.27%  175.55%  20.58%  N/A   8.58%

Net income / (loss) as a percentage of revenue

  21.14%  43.34%  6.14%  22.59%  N/A   6.28%

Net income / (loss) attributable to Cohen & Company Inc. as a percentage of revenue

  21.14%  43.34%  30.24%  22.95%  N/A   1.96%

 

 

SEGMENT INFORMATION

Statement of Operations Information

Six Months Ended June 30, 2024

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Net trading

 $18,646  $-  $-  $18,646  $-  $18,646 

Asset management

  -   4,795   -   4,795   -   4,795 

New issue and advisory

  30,888   -   -   30,888   -   30,888 

Principal transactions

  (16,752)  -   (10,298)  (27,050)  -   (27,050)

Other income

  -   1,487   596   2,083   -   2,083 

Total revenues

  32,782   6,282   (9,702)  29,362   -   29,362 

Cash compensation and benefits

  20,092   2,795   961   23,848   (614)  23,234 

Stock based compensation

  285   72   -   357   1,947   2,304 

Business development

  672   132   12   816   185   1,001 

Occupancy and equipment

  1,364   106   -   1,470   561   2,031 

Subscriptions, clearing, and execution

  3,888   178   121   4,187   116   4,303 

Professional fee and other operating

  2,193   793   389   3,375   2,607   5,982 

Depreciation and amortization

  -   2   -   2   247   249 

Total operating expenses

  28,494   4,078   1,483   34,055   5,049   39,104 

Operating income / (loss)

  4,288   2,204   (11,185)  (4,693)  (5,049)  (9,742)

Interest (expense) income

  (38)  -   -   (38)  (3,053)  (3,091)

Income (loss) from equity method affiliates

  -   -   23,049   23,049   -   23,049 

Income (loss) before income taxes

  4,250   2,204   11,864   18,318   (8,102)  10,216 

Income tax expense (benefit)

  -   -   -   -   293   293 

Net income (loss)

  4,250   2,204   11,864   18,318   (8,395)  9,923 

Less: Net income (loss) attributable to the non-convertible non-controlling interest of the Operating LLC

  -   -   11,064   11,064   -   11,064 

Enterprise net income (loss)

  4,250   2,204   800   7,254   (8,395)  (1,141)

Less: Net income (loss) attributable to the convertible non-controlling interest of Cohen & Company Inc.

  -   -   -   -   (815)  (815)

Net income (loss) attributable to Cohen & Company Inc.

 $4,250  $2,204  $800  $7,254  $(7,580) $(326)
                         

Other statement of operations data

                        

Cash compensation and benefits as a percentage of revenue

  61.29%  44.49%  9.91%  81.22%  N/A   79.13%

Operating income / (loss) as a percentage of revenue

  13.08%  35.08%  115.29%  15.98%  N/A   33.18%

Net income / (loss) as a percentage of revenue

  12.96%  35.08%  122.28%  62.39%  N/A   33.80%

Net income / (loss) attributable to Cohen & Company Inc. as a percentage of revenue

  12.96%  35.08%  8.25%  24.71%  N/A   1.11%

 

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended June 30, 2025

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Net trading

 $10,757  $-  $-  $10,757  $-  $10,757 

Asset management

  -   2,168   -   2,168   -   2,168 

New issue and advisory

  37,411   -   -   37,411   -   37,411 

Principal transactions

  6,722   -   2,181   8,903   -   8,903 

Other income

  -   584   48   632   -   632 

Total revenues

  54,890   2,752   2,229   59,871   -   59,871 

Cash compensation and benefits

  37,325   1,387   201   38,913   4,361   43,274 

Stock based compensation

  60   23   -   83   966   1,049 

Business development

  675   57   -   732   217   949 

Occupancy and equipment

  692   55   -   747   292   1,039 

Subscriptions, clearing, and execution

  2,196   82   3   2,281   51   2,332 

Professional fee and other operating

  2,544   216   79   2,839   722   3,561 

Depreciation and amortization

  -   2   -   2   170   172 

Total operating expenses

  43,492   1,822   283   45,597   6,779   52,376 

Operating income (loss)

  11,398   930   1,946   14,274   (6,779)  7,495 

Interest income (expense)

  (22)  -   -   (22)  (1,474)  (1,496)

Gain on sale of management contracts

  -   837   -   837   -   837 

Income (loss) from equity method affiliates

  (482)  -   (955)  (1,437)  -   (1,437)

Income (loss) before income taxes

  10,894   1,767   991   13,652   (8,253)  5,399 

Income tax expense (benefit)

  -   -   -   -   771   771 

Net income (loss)

  10,894   1,767   991   13,652   (9,024)  4,628 

Less: Net income (loss) attributable to the non-convertible non-controlling interest of the Operating LLC

  -   -   (141)  (141)  -   (141)

Enterprise net income (loss)

  10,894   1,767   1,132   13,793   (9,024)  4,769 

Less: Net income (loss) attributable to the convertible non-controlling interest of Cohen & Company Inc.

  -   -   -   -   3,361   3,361 

Net income (loss) attributable to Cohen & Company Inc.

 $10,894  $1,767  $1,132  $13,793  $(12,385) $1,408 
                         

Other statement of operations data

                        

Cash compensation as a percentage of revenue

  68.00%  50.40%  9.02%  64.99%  N/A   72.28%

Operating income / (loss) as a percentage of revenue

  20.77%  33.79%  87.30%  23.84%  N/A   12.52%

Net income / (loss) as a percentage of revenue

  19.85%  64.21%  44.46%  22.80%  N/A   7.73%

Net income / (loss) attributable to Cohen & Company Inc. as a percentage of revenue

  19.85%  64.21%  50.79%  23.04%  N/A   2.35%

 

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended June 30, 2024

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Net trading

 $8,798  $-  $-  $8,798  $-  $8,798 

Asset management

  -   2,078   -   2,078   -   2,078 

New issue and advisory

  6,500   -   -   6,500   -   6,500 

Principal transactions

  (5,230)  -   (2,338)  (7,568)  -   (7,568)

Other income

  -   939   51   990   -   990 

Total revenues

  10,068   3,017   (2,287)  10,798   -   10,798 

Cash compensation and benefits

  7,888   1,152   468   9,508   36   9,544 

Stock based compensation

  145   36   -   181   974   1,155 

Business development

  370   65   -   435   110   545 

Occupancy and equipment

  683   52   -   735   311   1,046 

Subscriptions, clearing, and execution

  2,025   92   46   2,163   54   2,217 

Professional fee and other operating

  887   330   206   1,423   1,110   2,533 

Depreciation and amortization

  -   2   -   2   123   125 

Total operating expenses

  11,998   1,729   720   14,447   2,718   17,165 

Operating income / (loss)

  (1,930)  1,288   (3,007)  (3,649)  (2,718)  (6,367)

Interest (expense) income

  (18)  -   -   (18)  (1,407)  (1,425)

Income (loss) from equity method affiliates

  -   -   (5,996)  (5,996)  -   (5,996)

Income (loss) before income taxes

  (1,948)  1,288   (9,003)  (9,663)  (4,125)  (13,788)

Income tax expense (benefit)

  -   -   -   -   (205)  (205)

Net income (loss)

  (1,948)  1,288   (9,003)  (9,663)  (3,920)  (13,583)

Less: Net income (loss) attributable to the non-convertible non-controlling interest of the Operating LLC

  -   -   (5,206)  (5,206)  -   (5,206)

Enterprise net income (loss)

  (1,948)  1,288   (3,797)  (4,457)  (3,920)  (8,377)

Less: Net income (loss) attributable to the convertible non-controlling interest of Cohen & Company Inc.

  -   -   -   -   (6,028)  (6,028)

Net income (loss) attributable to Cohen & Company Inc.

 $(1,948) $1,288  $(3,797) $(4,457) $2,108  $(2,349)
                         

Other statement of operations data

                        

Cash compensation and benefits as a percentage of revenue

  78.35%  38.18%  20.46%  88.05%  N/A   88.39%

Operating income / (loss) as a percentage of revenue

  19.17%  42.69%  131.48%  33.79%  N/A   58.96%

Net income / (loss) as a percentage of revenue

  19.35%  42.69%  393.66%  89.49%  N/A   125.79%

Net income / (loss) attributable to Cohen & Company Inc. as a percentage of revenue

  19.35%  42.69%  166.03%  41.28%  N/A   21.75%

 

(1)

Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not allocated include: (1) operating expenses (such as cash compensation and benefits, equity-based compensation expense, professional fees, travel and entertainment, consulting fees, and rent) related to support departments excluding certain departments that directly support the Capital Markets business segment; (2) interest expense on debt; and (3) income taxes. Management does not consider these items necessary for an understanding of the operating results of these business segments and such amounts are excluded in business segment reporting to the CODM.

 

BALANCE SHEET DATA

As of June 30, 2025

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  (1)  

Total

 

Total Assets

 $1,042,043  $6,595  $40,660  $1,089,298  $42,352  $1,131,650 
                         

Included within total assets:

                        

Investments in equity method affiliates

 $310  $-  $24,371  $24,681  $-  $24,681 

Goodwill (2)

 $54  $55  $-  $109  $-  $109 

Intangible assets (2)

 $166  $-  $-  $166  $-  $166 

 

BALANCE SHEET DATA

December 31, 2024

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  (1)  

Total

 

Total Assets

 $888,780  $7,371  $44,175  $940,326  $30,823  $971,149 
                         

Included within total assets:

                        

Investments in equity method affiliates

 $-  $-  $23,430  $23,430  $-  $23,430 

Goodwill (2)

 $54  $55  $-  $109  $-  $109 

Intangible assets (2)

 $166  $-  $-  $166  $-  $166 

 

(1)

Unallocated assets primarily include: (i) amounts due from related parties; (ii) furniture and equipment, net; and (iii) other assets that are not considered necessary for an understanding of business segment assets. Such amounts are excluded from the business segment reporting to the CODM.

(2)

Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the tables above.

 

Geographic Information

 

The Company conducts its business activities through offices in the following locations: (1) United States and (2) Europe.  Total revenues by geographic area are summarized as follows.

 

GEOGRAPHIC DATA

(Dollars in Thousands)

 

  

Three Months Ended June 30,

  

Six Months Ended June 30,

 
  

2025

  

2024

  

2025

  

2024

 

Total Revenues:

                

United States

 $58,455  $9,575  $85,944  $26,318 

Europe

  1,416   1,223   2,667   3,044 

Total

 $59,871  $10,798  $88,611  $29,362 

 

Long-lived assets attributable to an individual country, other than the United States, are not material.