Stifel Reports Third Quarter 2025 Results

Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “Our third-quarter results once again highlight the strength of Stifel’s balanced business model and disciplined execution. We delivered record net revenue of more than $1.4 billion and $1.95 in earnings per share, the third highest in our history, driven by record results in Global Wealth Management and a 34% increase in Institutional revenue. As we enter year-end, I’m optimistic about the opportunities ahead. With record investment banking pipelines, record client assets, and an integrated wealth and banking platform that continues to gain momentum, Stifel is well positioned to build on its success.”

Financial Summary (Unaudited)

 (000s)

 3Q 2025

  3Q 2024

9m 2025

9m 2024

GAAP Financial Highlights:

Net revenues

$

1,429,396

$

1,224,668

$

3,969,151

$

3,605,638

Net income ⁽¹⁾

$

202,051

$

149,185

$

391,457

$

459,413

Diluted EPS ⁽¹⁾

$

1.84

$

1.34

$

3.56

$

4.16

Comp. ratio

58.8

%

58.6

%

59.1

%

58.8

%

Non-comp. ratio

21.2

%

23.7

%

26.7

%

22.8

%

Pre-tax margin

20.0

%

17.7

%

14.2

%

18.4

%

Non-GAAP Financial Highlights:

Net revenues

$

1,429,398

$

1,225,351

$

3,969,231

$

3,606,330

Net income ^{(1) (2)}

$

214,419

$

166,270

$

454,281

$

506,186

Diluted EPS ^{(1) (2)}

$

1.95

$

1.50

$

4.13

$

4.58

Comp. ratio ⁽²⁾

58.0

%

58.0

%

58.0

%

58.0

%

Non-comp. ratio ⁽²⁾

20.8

%

22.8

%

25.9

%

22.1

%

Pre-tax margin ⁽³⁾

21.2

%

19.2

%

16.1

%

19.9

%

ROCE ⁽⁴⁾

17.0

%

13.7

%

12.2

%

14.4

%

ROTCE ⁽⁵⁾

24.3

%

19.5

%

17.3

%

20.7

%

 Global Wealth Management (assets and loans in millions)

Net revenues

$

907,440

$

827,116

$

2,603,630

$

2,418,751

Pre-tax net income

$

342,650

$

301,703

$

775,111

$

891,624

Total client assets

$

544,010

$

496,298

Fee-based client assets

$

219,178

$

190,771

Bank loans ⁽⁶⁾

$

21,635

$

20,633

 Institutional Group

Net revenues

$

500,435

$

372,401

$

1,305,143

$

1,114,498

Equity

$

296,677

$

222,459

$

753,037

$

646,570

Fixed Income

$

203,758

$

149,942

$

552,106

$

467,928

Pre-tax net income

$

89,291

$

41,797

$

177,762

$

127,719

Summary Results of Operations

(000s)

3Q 2025

3Q 2024

Net revenues

$

907,440

$

827,116

Transactional revenues

203,078

192,727

Asset management

431,363

382,309

Net interest income

257,327

240,825

Investment banking

6,529

6,217

Other income

9,143

5,038

Total expenses

$

564,790

$

525,413

Compensation expense

441,626

403,205

Provision for credit losses

8,316

5,287

Non-comp. operating expenses

114,848

116,921

Pre-tax net income

$

342,650

$

301,703

Compensation ratio

48.7

%

48.7

%

Non-compensation ratio

13.5

%

14.8

%

Pre-tax margin

37.8

%

36.5

%

Summary Results of Operations

(000s)

3Q 2025

3Q 2024

Net revenues

$

500,435

$

372,401

Investment banking

316,954

236,965

 Advisory

179,270

136,857

  Equity capital raising

78,765

50,744

  Fixed income capital raising

58,919

49,364

Fixed income transactional

122,567

78,974

Equity transactional

58,306

48,824

Other

2,608

7,638

Total expenses

$

411,144

$

330,604

Compensation expense

297,106

224,556

Non-comp. operating expenses

114,038

106,048

Pre-tax net income

$

89,291

$

41,797

Compensation ratio

59.4

%

60.3

%

Non-compensation ratio

22.8

%

28.5

%

Pre-tax margin

17.8

%

11.2

%

 3Q 2025

 3Q 2024

Common stock repurchases

Repurchases (000s)

$

31,238

$

20,222

Number of shares (000s)

275

249

Average price

$

113.63

$

81.23

Period end shares (000s)

101,948

102,313

Weighted average diluted shares outstanding (000s)

110,058

110,994

 Effective tax rate

26.1

%

26.8

%

Stifel Financial Corp. ⁽⁸⁾

Tier 1 common capital ratio

14.8

%

15.0

%

Tier 1 risk based capital ratio

17.6

%

17.9

%

Tier 1 leverage capital ratio

11.1

%

11.3

%

Tier 1 capital (MM)

$

4,267

$

4,159

Risk weighted assets (MM)

$

24,235

$

23,183

Average assets (MM)

$

38,332

$

36,813

Quarter end assets (MM)

$

41,687

$

38,935

Agency

Rating

Outlook

Fitch Ratings

BBB+

Stable

S&P Global Ratings

BBB

Stable

Summary Results of Operations (Unaudited)

Three Months Ended

Nine Months Ended

(000s, except per share amounts)

9/30/2025

9/30/2024

% Change

6/30/2025

% Change

9/30/2025

9/30/2024

% Change

Revenues:

Commissions

$

  206,075

$

183,445

12.3

$

200,669

2.7

$

  600,414

$

552,238

8.7

Principal transactions

177,876

137,089

29.8

172,603

3.1

492,139

429,677

14.5

Investment banking

323,483

243,182

33.0

233,460

38.6

794,885

690,412

15.1

Asset management

431,399

382,616

12.7

403,608

6.9

1,244,548

1,130,849

10.1

Other income

14,228

18,705

(23.9

)

3,690

285.6

28,499

39,835

(28.5

)

Operating revenues

1,153,061

965,037

19.5

1,014,030

13.7

3,160,485

2,843,011

11.2

Interest revenue

481,504

510,823

(5.7

)

477,056

0.9

1,434,192

1,515,803

(5.4

)

Total revenues

1,634,565

1,475,860

10.8

1,491,086

9.6

4,594,677

4,358,814

5.4

Interest expense

205,169

251,192

(18.3

)

206,800

(0.8

)

625,526

753,176

(16.9

)

Net revenues

1,429,396

1,224,668

16.7

1,284,286

11.3

3,969,151

3,605,638

10.1

Non-interest expenses:

Compensation and benefits

839,820

718,065

17.0

774,936

8.4

2,346,976

2,120,479

10.7

Non-compensation operating expenses

303,530

289,945

4.7

295,530

2.7

1,058,945

822,916

28.7

Total non-interest expenses

1,143,350

1,008,010

13.4

1,070,466

6.8

3,405,921

2,943,395

15.7

Income before income taxes

286,046

216,658

32.0

213,820

33.8

563,230

662,243

(15.0

)

Provision for income taxes

74,675

58,153

28.4

58,765

27.1

143,812

174,869

(17.8

)

Net income

211,371

158,505

33.4

155,055

36.3

419,418

487,374

(13.9

)

Preferred dividends

9,320

9,320

0.0

9,321

(0.0

)

27,961

27,961

0.0

Net income available to common shareholders

$

202,051

$

149,185

35.4

$

145,734

38.6

$

391,457

$

459,413

(14.8

)

Earnings per common share:

Basic

$

1.96

$

1.43

37.1

$

1.41

39.0

$

3.77

$

4.41

(14.5

)

Diluted

$

1.84

$

1.34

37.3

$

1.34

37.3

$

3.56

$

4.16

(14.4

)

Cash dividends declared per common share

$

0.46

$

0.42

9.5

$

0.46

0.0

$

1.38

$

1.26

9.5

Weighted average number of common shares outstanding:

Basic

103,119

103,966

(0.8

)

103,349

(0.2

)

103,735

104,135

(0.4

)

Diluted

110,058

110,994

(0.8

)

108,847

1.1

109,918

110,457

(0.5

)

Non-GAAP Financial Measures ⁽⁹⁾

Three Months Ended

Nine Months Ended

(000s, except per share amounts)

9/30/2025

9/30/2024

9/30/2025

9/30/2024

GAAP net income

$

211,371

$

158,505

$

419,418

$

487,374

Preferred dividend

9,320

9,320

27,961

27,961

Net income available to common shareholders

202,051

149,185

391,457

459,413

Non-GAAP adjustments:

Merger-related ⁽¹⁰⁾

12,678

17,950

45,715

43,925

Restructuring and severance ⁽¹¹⁾

4,065

1,261

31,106

11,222

Provision for income taxes ⁽¹²⁾

(4,375

)

(2,126

)

(13,997

)

(8,374

)

Total non-GAAP adjustments

12,368

17,085

62,824

46,773

Non-GAAP net income available to common shareholders

$

214,419

$

166,270

$

454,281

$

506,186

Weighted average diluted shares outstanding

110,058

110,994

109,918

110,457

GAAP earnings per diluted common share

$

1.92

$

1.42

$

3.82

$

4.42

Non-GAAP adjustments

0.11

0.16

0.57

0.42

Non-GAAP earnings per diluted common share

$

2.03

$

1.58

$

4.39

$

4.84

GAAP earnings per diluted common share available to common shareholders

$

1.84

$

1.34

$

3.56

$

4.16

Non-GAAP adjustments

0.11

0.16

0.57

0.42

Non-GAAP earnings per diluted common share available to common shareholders

$

1.95

$

1.50

$

4.13

$

4.58

GAAP to Non-GAAP Reconciliation ⁽⁹⁾

Three Months Ended

Nine Months Ended

(000s)

9/30/2025

9/30/2024

9/30/2025

9/30/2024

GAAP compensation and benefits

$

839,820

$

718,065

$

2,346,976

$

2,120,479

As a percentage of net revenues

58.8

%

58.6

%

59.1

%

58.8

%

Non-GAAP adjustments:

Merger-related ⁽¹⁰⁾

(6,704

)

(6,101

)

(13,706

)

(17,398

)

Restructuring and severance ⁽¹¹⁾

(4,065

)

(1,261

)

(31,106

)

(11,222

)

Total non-GAAP adjustments

(10,769

)

(7,362

)

(44,812

)

(28,620

)

Non-GAAP compensation and benefits

$

829,051

$

710,703

$

2,302,164

$

2,091,859

As a percentage of non-GAAP net revenues

58.0

%

58.0

%

58.0

%

58.0

%

GAAP non-compensation expenses

$

303,530

$

289,945

$

1,058,945

$

822,916

As a percentage of net revenues

21.2

%

23.7

%

26.7

%

22.8

%

Non-GAAP adjustments:

Merger-related ⁽¹⁰⁾

(5,972

)

(11,166

)

(31,929

)

(25,835

)

Non-GAAP non-compensation expenses

$

297,558

$

278,779

$

1,027,016

$

797,081

As a percentage of non-GAAP net revenues

20.8

%

22.8

%

25.9

%

22.1

%

Total adjustments

$

16,743

$

19,211

$

76,821

$

55,147

⁽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 $87.2 million and $77.9 million as of September 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, October 22, 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.