v3.26.1
Note 21 - Segment and Geographic Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [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.  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.

 

 The following table sets forth the Company's segment information of revenue, expenses, and income (loss) from operations.

 

SEGMENT INFORMATION

Statement of Operations Information

Six Months Ended June 30, 2026

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Investment banking and new issue

 $99,770  $-  $-  $99,770  $-  $99,770 

Net trading

  27,088   -   -   27,088   -   27,088 

Asset management

  -   4,256   -   4,256   -   4,256 

Principal transactions

  -   -   (4,641)  (4,641)  -   (4,641)

Other income

  1   650   265   916   -   916 

Total revenues

  126,859   4,906   (4,376)  127,389   -   127,389 

Compensation and benefits

  78,458   3,388   60   81,906   7,586   89,492 

Business development

  1,853   144   -   1,997   623   2,620 

Occupancy and equipment

  1,626   114   -   1,740   614   2,354 

Subscriptions, clearing, and execution

  7,230   173   -   7,403   122   7,525 

Professional fee and other operating

  3,912   1,072   50   5,034   2,402   7,436 

Depreciation and amortization

  -   3   -   3   417   420 

Total operating expenses

  93,079   4,894   110   98,083   11,764   109,847 

Operating income (loss)

  33,780   12   (4,486)  29,306   (11,764)  17,542 

Interest expense

  (89)  -   -   (89)  (2,557)  (2,646)

Income (loss) from equity method affiliates

  (991)  -   (2,574)  (3,565)  -   (3,565)

Income (loss) before income taxes

  32,700   12   (7,060)  25,652   (14,321)  11,331 

Income tax expense (benefit)

  -   257   -   257   (298)  (41)

Net income (loss)

  32,700   (245)  (7,060)  25,395   (14,023)  11,372 

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

  -   -   (2,776)  (2,776)  -   (2,776)

Enterprise net income (loss)

  32,700   (245)  (4,284)  28,171   (14,023)  14,148 

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

  -   -   -   -   9,082   9,082 

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

 $32,700  $(245) $(4,284) $28,171  $(23,105) $5,066 
                         

Other statement of operations data

                        

Compensation and benefits as a percentage of revenue

  61.85%  69.06%  (1.37)%  64.30%  N/A   70.25%

Operating income / (loss) as a percentage of revenue

  26.63%  0.24%  (102.51)%  23.01%  N/A   13.77%

Net income / (loss) as a percentage of revenue

  25.78%  (4.99)%  (161.33)%  19.94%  N/A   8.93%

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

  25.78%  (4.99)%  (97.90)%  22.11%  N/A   3.98%

 

SEGMENT INFORMATION

Statement of Operations Information

Six Months Ended June 30, 2025

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Investment banking and new issue

 $64,297  $-  $-  $64,297  $-  $64,297 

Net trading

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

Asset management

  -   4,188   -   4,188   -   4,188 

Principal transactions

  -   -   (148)  (148)  -   (148)

Other income

  -   1,020   (714)  306   -   306 

Total revenues

  84,265   5,208   (862)  88,611   -   88,611 

Compensation and benefits

  55,528   2,807   359   58,694   7,295   65,989 

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)

  18,334   1,420   (1,514)  18,240   (10,638)  7,602 

Interest expense

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

Gain on sale of management contracts

  -   837   -   837   -   837 

Income (loss) from equity method affiliates

  (480)  -   1,461   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

                        

Compensation and benefits as a percentage of revenue

  65.90%  53.90%  (41.65)%  66.24%  N/A   74.47%

Operating income / (loss) as a percentage of revenue

  21.76%  27.27%  (175.64)%  20.58%  N/A   8.58%

Net income / (loss) as a percentage of revenue

  21.14%  43.34%  (6.15)%  22.59%  N/A   6.28%

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

  21.14%  43.34%  30.28%  22.95%  N/A   1.96%

 

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended June 30, 2026

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Investment banking and new issue

 $54,059  $-  $-  $54,059  $-  $54,059 

Net trading

  13,888   -   -   13,888   -   13,888 

Asset management

  -   1,837   -   1,837   -   1,837 

Principal transactions

  -   -   (726)  (726)  -   (726)

Other income

  -   359   70   429   -   429 

Total revenues

  67,947   2,196   (656)  69,487   -   69,487 

Compensation and benefits

  42,615   1,572   30   44,217   3,968   48,185 

Business development

  923   46   -   969   393   1,362 

Occupancy and equipment

  833   57   -   890   339   1,229 

Subscriptions, clearing, and execution

  3,429   81   -   3,510   63   3,573 

Professional fee and other operating

  1,093   607   35   1,735   777   2,512 

Depreciation and amortization

  -   1   -   1   216   217 

Total operating expenses

  48,893   2,364   65   51,322   5,756   57,078 

Operating income (loss)

  19,054   (168)  (721)  18,165   (5,756)  12,409 

Interest expense

  (45)  -   -   (45)  (1,266)  (1,311)

Income (loss) from equity method affiliates

  (877)  -   (2,161)  (3,038)  -   (3,038)

Income (loss) before income taxes

  18,132   (168)  (2,882)  15,082   (7,022)  8,060 

Income tax expense (benefit)

  -   192   -   192   (51)  141 

Net income (loss)

  18,132   (360)  (2,882)  14,890   (6,971)  7,919 

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

  -   -   (2,058)  (2,058)  -   (2,058)

Enterprise net income (loss)

  18,132   (360)  (824)  16,948   (6,971)  9,977 

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

  -   -   -   -   6,403   6,403 

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

 $18,132  $(360) $(824) $16,948  $(13,374) $3,574 
                         

Other statement of operations data

                        

Compensation and benefits as a percentage of revenue

  62.72%  71.58%  (4.57)%  63.63%  N/A   69.34%

Operating income / (loss) as a percentage of revenue

  28.04%  (7.65)%  (109.91)%  26.14%  N/A   17.86%

Net income / (loss) as a percentage of revenue

  26.69%  (16.39)%  (439.33)%  21.43%  N/A   11.40%

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

  26.69%  (16.39)%  (125.61)%  24.39%  N/A   5.14%

 

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended June 30, 2025

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Investment banking and new issue

 $44,133  $-  $-  $44,133  $-  $44,133 

Net trading

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

Asset management

  -   2,168   -   2,168   -   2,168 

Principal transactions

  -   -   2,181   2,181   -   2,181 

Other income

  -   584   48   632   -   632 

Total revenues

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

Compensation and benefits

  37,385   1,410   201   38,996   5,327   44,323 

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 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 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

                        

Compensation and benefits as a percentage of revenue

  68.11%  51.24%  9.02%  65.13%  N/A   74.03%

Operating income as a percentage of revenue

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

Net income as a percentage of revenue

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

Net income attributable to Cohen & Company Inc. as a percentage of revenue

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

 

(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, 2026

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  (1)  

Total

 

Total Assets

 $713,970  $9,245  $21,606  $744,821  $55,562  $800,383 
                         

Included within total assets:

                        

Investments in equity method affiliates

 $-  $-  $8,152  $8,152  $-  $8,152 

Goodwill (2)

 $54  $55  $-  $109  $-  $109 

Intangible assets (2)

 $166  $-  $-  $166  $-  $166 

 

BALANCE SHEET DATA

December 31, 2025

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  (1)  

Total

 

Total Assets

 $591,923  $11,408  $27,093  $630,424  $70,161  $700,585 
                         

Included within total assets:

                        

Investments in equity method affiliates

 $-  $-  $6,661  $6,661  $-  $6,661 

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,

 
  

2026

  

2025

  

2026

  

2025

 

Total Revenues:

                

United States

 $67,733  $58,455  $123,552  $85,944 

Europe

  1,754   1,416   3,837   2,667 

Total

 $69,487  $59,871  $127,389  $88,611 

 

Long-lived assets attributable to an individual country, other than the United States, are not material. The Capital Markets segment has earned non-cash advisory revenue of $13,788 and $12,678 for the three months ended June 30, 2026 and 2025, respectively.  The Capital Markets segment has earned non-cash advisory revenue of $25,210 and $31,326 for the six months ended June 30, 2026 and 2025, respectively.