Tue, May 13, 8:39 PM (36 days ago)
**Siebert Financial Corp. (SIEB) Q1 2025 Financial Summary** **Company Overview:** Siebert Financial Corp. (SIEB) operates as a financial services company, providing brokerage, investment advisory, insurance, and technology development services through its subsidiaries. **Q1 2025 Financial Performance:** - **Revenue:** $28.9 million, up from $20.5 million in Q1 2024. - **Net Income:** $8.7 million, compared to $3.7 million in Q1 2024. - **Earnings per Share (EPS):** $0.22, up from $0.09 in Q1 2024. - **Operating Income:** $10.5 million, compared to $5.1 million in Q1 2024. **Key Financial Metrics:** - **Revenue Growth:** Principal transactions increased by 270% to $12.9 million. Stock borrow/stock loan increased by 18% to $4.8 million. Advisory fees increased by 53% to $0.7 million. - **Profit Margins:** Operating margin improved significantly due to higher revenues and controlled expenses. - **Cash Flow:** Net cash used in operating activities decreased by $12.5 million compared to the prior year period. **Investment in Equity Security:** - Siebert acquired an equity security in Q1 2025, recording an unrealized gain of approximately $9.2 million. However, the market value of this investment has since declined, with the share price falling to $25.24 by May 7, 2025, potentially impacting future earnings. **Trends and Uncertainties:** - **Market Risk:** Exposure to market risks through broker-dealer trading operations and investment positions. - **Interest Rates:** Sensitivity to changes in interest rates, impacting revenue from interest, marketing, and distribution fees. - **Technology Initiatives:** Ongoing investments in technology to enhance customer services and operational efficiency. **Future Operations Impact:** - Siebert plans to use available cash, cash equivalents, and potential borrowings to support core business operations, strategic acquisitions, and general capital needs. - The company expects to meet liquidity needs through available cash, lines of credit, and access to capital markets. **Regulatory and Capital Requirements:** - Siebert maintains adequate net capital and segregated cash reserves to meet regulatory requirements. - The company is subject to various regulatory requirements, including net capital rules and customer protection rules. **Conclusion:** Siebert Financial Corp. demonstrated strong financial performance in Q1 2025, with significant revenue growth and improved profitability. However, the company faces market risks and uncertainties related to its investment in equity security and sensitivity to interest rates. Siebert continues to invest in technology and strategic initiatives to drive future growth and operational efficiency.