Cohen & Company Inc.

What they do

The company operates three segments: Capital Markets, Asset Management, and Principal Investing. Capital Markets includes sales, trading, gestation repo financing, new issue placements, underwriting, and advisory services through Cohen Securities in the U.S. and CCFESA in Europe, as well as Cohen & Company Capital Markets (CCM), a boutique investment bank and SPAC advisor. Asset Management manages approximately $1.4 billion in assets under management in fixed income assets as of December 31, 2025, and Principal Investing holds investments for investment return.

Revenue drivers

• Investment banking and new issue — Generated $54.1 million in Q2 2026 and $99.8 million in the first half of 2026, primarily from advisory, underwriting, and new issue services, including SPAC and de-SPAC transactions.
• Net trading — Generated $13.9 million in Q2 2026 and $27.1 million in the first half of 2026, from trade execution and riskless trading activities in various fixed income and equity products.
• Asset management — Generated $1.8 million in Q2 2026 and $4.3 million in the first half of 2026, from base and incentive management fees on approximately $1.4 billion of assets under management as of December 31, 2025.
• Principal transactions and other revenue — Generated negative $0.3 million in Q2 2026 and negative $3.7 million in the first half of 2026, reflecting gains and losses on investments held for investment return.

Recent performance

For Q2 2026, revenue was $69.5 million, up from $57.9 million in Q1 2026 and $59.9 million in Q2 2025. Net income attributable to Cohen & Company Inc. was $3.6 million, or $0.94 per diluted share, compared to $1.5 million, or $0.42 per diluted share, in Q1 2026 and $1.4 million, or $0.81 per diluted share, in Q2 2025. Adjusted pre-tax income was $10.1 million, or $1.62 per diluted share, in Q2 2026. For the first half of 2026, revenue was $127.4 million and net income attributable to Cohen & Company Inc. was $5.1 million, or $1.36 per diluted share.

Strategy

Management is focused on growing the full-service boutique investment bank, CCM, particularly in SPAC and de-SPAC advisory services. Recent milestones include Columbus Circle Capital Corp II signing a definitive business combination agreement with Elroy Air, Inc. on June 26, 2026, and Columbus Circle Capital Corp III completing a $230 million IPO on July 9, 2026. The company aims to increase revenue and profitability and remains committed to its quarterly dividend, declaring $0.25 per share for Q2 2026.

Risks

• Unpredictable earnings — The Capital Markets segment does not produce predictable earnings and results can vary dramatically from year-to-year and quarter-to-quarter due to market conditions and interest rates.
• Customer concentration — The Capital Markets segment depends significantly on a limited group of customers, which could strain resources if those relationships change.
• Mortgage and housing market dependence — The mortgage group's revenue is highly dependent on the U.S. housing market generally, exposing results to housing market fluctuations.
• Gestation repo demand volatility — The gestation repo business serves a narrow market and is likely subject to highly volatile demand.

Outlook

Management stated they are encouraged by momentum in the business, particularly in SPAC and de-SPAC transactions, and are looking for opportunities to increase revenue and profitability. They remain confident in future earnings potential and committed to creating long-term value for stockholders, including through the quarterly dividend. No specific financial guidance was provided.