29. SEGMENT AND GEOGRAPHIC INFORMATION

 

Segment 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.

 

Beginning in 2024 annual reporting, the Company adopted ASU 2023-07 retrospectively. The following table sets forth our segment information of revenue, expenses, and income (loss) from operations. 

   

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2025

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

        
  

Markets

  

Management

  

Investing

  

Total

  

Unallocated (1)

  

Total

 

Investment banking and new issue

 $187,608  $-  $-  $187,608  $-  $187,608 

Net trading

  47,347   -   -   47,347   -   47,347 

Asset management

  -   8,817   -   8,817   -   8,817 

Principal transactions

  -   -   30,344   30,344   -   30,344 

Other income

  -   1,796   (348)  1,448   -   1,448 

Total revenues

  234,955   10,613   29,996   275,564   -   275,564 

Compensation

  134,696   7,660   524   142,880   14,425   157,305 

Stock based compensation

  357   98   15,671   16,126   4,087   20,213 

Business development

  1,950   225   1   2,176   1,377   3,553 

Occupancy and equipment

  2,892   238   -   3,130   1,214   4,344 

Subscriptions, clearing, and execution

  15,378   337   30   15,745   182   15,927 

Professional fee and other operating

  8,875   1,727   267   10,869   3,222   14,091 

Depreciation and amortization

  -   7   -   7   717   724 

Total operating expenses

  164,148   10,292   16,493   190,933   25,224   216,157 

Operating income / (loss)

  70,807   321   13,503   84,631   (25,224)  59,407 

Interest income (expense)

  (126)  -   -   (126)  (5,750)  (5,876)

Gain on sale of management contracts

  -   2,734   -   2,734   -   2,734 

Income from equity method affiliates

  (792)  -   (15,971)  (16,763)  -   (16,763)

Income /(loss) before income taxes

  69,889   3,055   (2,468)  70,476   (30,974)  39,502 

Income tax expense (benefit)

  -   -   -   -   (632)  (632)

Net income / (loss)

  69,889   3,055   (2,468)  70,476   (30,342)  40,134 

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

  -   1   (1,914)  (1,913)  -   (1,913)

Enterprise net income /(loss)

  69,889   3,054   (554)  72,389   (30,342)  42,047 

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

  -   -   -   -   27,616   27,616 

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

 $69,889  $3,054  $(554) $72,389  $(57,958) $14,431 
                         

Other statement of operations data

                        

Cash compensation as a percentage of revenue

  57.33%  72.18%  1.75%  51.85%  N/A   57.08%

Operating income / (loss) as a percentage of revenue

  30.14%  3.02%  45.02%  30.71%  N/A   21.56%

Net income / (loss) as a percentage of revenue

  29.75%  28.79%  8.23%  25.58%  N/A   14.56%

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

  29.75%  28.78%  1.85%  26.27%  N/A   5.24%

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2024

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

        
  

Markets

  

Management

  

Investing

  

Total

  

Unallocated (1)

  

Total

 

Investment banking and new issue

 $40,778  $-  $-  $40,778  $-  $40,778 

Net trading

  36,409   -   -   36,409   -   36,409 

Asset management

  -   9,009   -   9,009   -   9,009 

Principal transactions

  -   -   (10,246)  (10,246)  -   (10,246)

Other income

  10   2,615   1,023   3,648   -   3,648 

Total revenues

  77,197   11,624   (9,223)  79,598   -   79,598 

Compensation

  42,536   6,058   1,648   50,242   1,478   51,720 

Stock based compensation

  575   145   -   720   3,948   4,668 

Business development

  1,377   250   14   1,641   641   2,282 

Occupancy and equipment

  2,976   213   -   3,189   1,146   4,335 

Subscriptions, clearing, and execution

  8,893   368   170   9,431   208   9,639 

Professional fee and other operating

  7,591   1,772   1,216   10,579   3,842   14,421 

Depreciation and amortization

  -   6   -   6   550   556 

Total operating expenses

  63,948   8,812   3,048   75,808   11,813   87,621 

Operating income / (loss)

  13,249   2,812   (12,271)  3,790   (11,813)  (8,023)

Interest income (expense)

  (76)  -   -   (76)  (5,745)  (5,821)

Income from equity method affiliates

  -   -   21,704   21,704   -   21,704 

Income (loss) before income taxes

  13,173   2,812   9,433   25,418   (17,558)  7,860 

Income tax expense / (benefit)

  -   -   -   -   (329)  (329)

Net income / (loss)

  13,173   2,812   9,433   25,418   (17,229)  8,189 

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

  -   1   8,674   8,675   -   8,675 

Enterprise net income/ (loss)

  13,173   2,811   759   16,743   (17,229)  (486)

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

  -   -   -   -   (357)  (357)

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

 $13,173  $2,811  $759  $16,743  $(16,872) $(129)
                         

Other statement of operations data

                        

Cash compensation as a percentage of revenue

  55.10%  52.12%  17.87%  63.12%  N/A   64.98%

Operating income / (loss) as a percentage of revenue

  17.16%  24.19%  133.05%  4.76%  N/A   (10.08)%

Net income / (loss) as a percentage of revenue

  17.06%  24.19%  102.28%  31.93%  N/A   10.29%

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

  17.06%  24.18%  8.23%  21.03%  N/A   (0.16)%

   

 

 

 

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2023

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

        
  

Markets

  

Management

  

Investing

  

Total

  

Unallocated (1)

  

Total

 

Investment banking and new issue

 $23,952  $-  $-  $23,952  $-  $23,952 

Net trading

  30,926   -   -   30,926   -   30,926 

Asset management

  -   7,337   -   7,337   -   7,337 

Principal transactions

  -   -   19,254   19,254   -   19,254 

Other income

  1   1,071   440   1,512   -   1,512 

Total revenues

  54,879   8,408   19,694   82,981   -   82,981 

Compensation

  30,641   5,777   2,335   38,753   8,948   47,701 

Stock based compensation

  515   106   -   621   3,770   4,391 

Business development

  741   268   23   1,032   383   1,415 

Occupancy and equipment

  2,560   202   -   2,762   1,027   3,789 

Subscriptions, clearing, and execution

  8,125   334   251   8,710   255   8,965 

Professional fee and other operating

  4,320   1,408   843   6,571   2,725   9,296 

Depreciation and amortization

  -   6   -   6   557   563 

Total operating expenses

  46,902   8,101   3,452   58,455   17,665   76,120 

Operating income / (loss)

  7,977   307   16,242   24,526   (17,665)  6,861 

Interest income (expense)

  (338)  -   -   (338)  (6,188)  (6,526)

(Loss) from equity method affiliates

  -   -   15,609   15,609   -   15,609 

Income before income taxes

  7,639   307   31,851   39,797   (23,853)  15,944 

Income tax expense / (benefit)

  -   -   -   -   5,545   5,545 

Net income /(loss)

  7,639   307   31,851   39,797   (29,398)  10,399 

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

  -   17   19,573   19,590   -   19,590 

Enterprise net income /(loss)

  7,639   290   12,278   20,207   (29,398)  (9,191)

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

  -   -   -   -   (4,078)  (4,078)

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

 $7,639  $290  $12,278  $20,207  $(25,320) $(5,113)
                         

Other statement of operations data

                        

Cash compensation as a percentage of revenue

  55.83%  68.71%  11.86%  46.70%  N/A   57.48%

Operating income / (loss) as a percentage of revenue

  14.54%  3.65%  82.47%  29.56%  N/A   8.27%

Net income / (loss) as a percentage of revenue

  13.92%  3.65%  161.73%  47.96%  N/A   12.53%

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

  13.92%  3.45%  62.34%  24.35%  N/A   (6.16)%

 

(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 December 31, 2025

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

        
  

Markets

  

Management

  

Investing

  

Total

  

Unallocated (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 

 

 

BALANCE SHEET DATA

As of December 31, 2024

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

        
  

Markets

  

Management

  

Investing

  

Total

  

Unallocated (1)

  

Total

 

Total Assets

 $888,780  $7,371  $44,175  $940,326  $30,823  $971,149 
                         

Included within total assets:

                        

Investments in equity method affiliates

 $-  $-  $23,430  $23,430  $-  $23,430 

Goodwill (2)

 $54  $55  $-  $109  $-  $109 

Intangible assets (2)

 $166  $-  $-  $166  $-  $166 

 

(1)

Unallocated assets primarily include (1) amounts due from related parties; (2) furniture and equipment, net; and (3) other assets that are not considered necessary for an understanding of business segment assets and such amounts are excluded from 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 table above.

  

Geographic Information

 

The Company has conducted its business activities through offices in the following locations: (1) United States and (2) Europe and other. Total revenues by geographic area are summarized as follows.

 

GEOGRAPHIC DATA

(Dollars in Thousands)

 

  

Year Ended December 31,

 
  

2025

  

2024

  

2023

 

Total Revenues:

            

United States

 $265,585  $72,573  $77,532 

Europe & Other

  9,979   7,025   5,449 

Total

 $275,564  $79,598  $82,981 

 

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 $232,398, $24.338, and $18,248 in the years ended December 31, 2025, 2024, and 2023, respectively.  

    

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 12, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.