PHILADELPHIA, PA — Cohen & Company Inc. (NYSE American: COHN) reported third-quarter 2025 results showing a sharp rise in revenue and profitability, driven by exceptional performance in its investment banking division and strengthening trading operations.
The financial services firm posted total revenue of $84.2 million for the quarter ended September 30, 2025, up from $59.9 million in the previous quarter and $31.7 million a year earlier. Net income attributable to Cohen & Company was $4.6 million, or $2.58 per diluted share, compared with $1.4 million, or $0.81 per diluted share, in the prior quarter.
Adjusted pre-tax income rose to $16.4 million, or $2.71 per diluted share, up from $5.5 million, or $0.94 per share, in the previous quarter, and $7.7 million, or $1.34 per share, a year ago.
“Our third quarter results were driven by continued strong performance from our full-service boutique investment banking division, Cohen & Company Capital Markets,” said Chief Executive Officer Lester Brafman. “During the quarter, CCM generated $68.6 million of net revenue, comprised of $228.0 million in advisory revenue across 18 clients, partially offset by negative principal transactions revenue of $159.4 million from investment assets received as client consideration. Supported by its strong pipeline of transactions, CCM is well positioned to deliver an exceptional performance through the end of the year and enter 2026 with significant momentum.”
Brafman added that lower interest rates helped boost trading revenue, which climbed 26% over the previous quarter. “We expect this trend will continue, providing additional opportunities to enhance net trading revenue,” he said.
The company’s capital markets division drove most of the gains, with advisory and new issue revenues surging to $228.0 million. Cohen & Company noted that it sometimes receives financial instruments as client payment, recording them at fair value and recognizing subsequent valuation changes as principal transaction revenue — which this quarter resulted in a $159.3 million loss due to market fluctuations.
Cohen & Company’s trading revenue reached $13.6 million, up from $10.8 million in the previous quarter and $8.8 million a year earlier. Asset management revenue declined slightly to $1.9 million, reflecting the completion of the sale of all remaining legacy Alesco CDO management contracts.
Compensation and benefits expenses rose to $53.7 million, primarily due to incentive-based compensation linked to higher revenues. The firm ended the quarter with 124 employees, up from 118 in June and 113 a year ago.
Brafman expressed confidence in the company’s trajectory, stating, “Based on what we have seen in trading revenue and our CCM pipeline thus far, we believe that we will generate more than $50 million in revenue in the fourth quarter and more than $220 million in revenue for full year 2025. We remain confident in our future earnings potential and are committed to driving long-term, sustainable value for our stockholders, including through quarterly dividends.”
The board declared a quarterly dividend of $0.25 per share, payable on December 3, 2025, to shareholders of record as of November 19, 2025.
Cohen & Company, which operates across capital markets, asset management, and principal investing, reported total equity of $101.1 million as of September 30, 2025, up from $90.3 million at year-end 2024. The firm will host a conference call at 10:00 a.m. ET on November 4, 2025, to discuss its results.
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