SIEBERT FINANCIAL CORP Revenue Disclosure
Revenue Recognition
The Company generated a significant portion of its revenue from financial instruments comprising of margin revenue, securities lending, principal transactions and proprietary trading, and interest revenue. These net interest and other revenues are not within the scope of FASB ASC Topic 606 – “Revenue from Contracts with Customers” (“Topic 606”), because they are generated from financial instruments covered by various other areas of GAAP. Market making activities are not within the scope of Topic 606, as they do not meet the definition of a contract with a customer under the standard. Consequently, revenue and expenses related to market making activity are accounted for separately and not included in the revenue figures presented in accordance with Topic 606.
The Company also has fee revenue and transaction revenue which are within the scope of Topic 606. Revenue from contracts with customers includes commission income charged to retail clients for executing transactions, markups on riskless principal transactions charged to retail clients for executing transactions, distribution income received from mutual funds for client transactions, stock locate fees charged to counterparties for providing locate services, payment for order flow received for executing transactions, and administrative fees to retail clients including for maintenance and other ancillary services. Under Topic 606, Revenue from Contracts with Customers, requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved.
The table below presents detailed information on the Company’s recognition of revenue from contracts with customers as well as revenues from financial instruments, which are outside the scope of Topic 606, by major types of services for the periods indicated.
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues from Contracts with Customers | ||||||||
| Principal transactions and proprietary trading | ||||||||
| Riskless principal transactions with customers | $ | 14,130,000 | $ | 9,096,000 | ||||
| Commissions and fees | ||||||||
| Brokerage commissions | 7,629,000 | 5,927,000 | ||||||
| Distribution fees | 1,365,000 | 1,167,000 | ||||||
| Insurance commissions | 621,000 | 447,000 | ||||||
| Stock borrow / stock loan | ||||||||
| Retail fees (rebates) | (5,000 | ) | (78,000 | ) | ||||
| Stock locate services | 16,892,000 | 12,901,000 | ||||||
| Other income | ||||||||
| Administrative fees | 1,888,000 | 519,000 | ||||||
| Payment for order flow | 1,454,000 | 1,114,000 | ||||||
| Other commissions | 48,000 | 265,000 | ||||||
| Advisory fees | 2,369,000 | 1,928,000 | ||||||
| Total revenues from contracts with customers | $ | 46,391,000 | $ | 33,286,000 | ||||
| Revenue outside the scope of Topic 606 | ||||||||
| Principal transactions and proprietary trading | ||||||||
| Proprietary trading | 486,000 | 3,997,000 | ||||||
| Interest, marketing and distribution fees | ||||||||
| Margin interest | 15,440,000 | 16,236,000 | ||||||
| Interest income | 14,933,000 | 11,618,000 | ||||||
| Marketing and distribution fees | 2,034,000 | 1,724,000 | ||||||
| Stock borrow / stock loan | ||||||||
| Stock rebate revenue | 2,362,000 | 3,349,000 | ||||||
| Market making | 2,255,000 | 1,304,000 | ||||||
| Total revenue outside the scope of Topic 606 | 37,510,000 | 38,228,000 | ||||||
| Total revenue | $ | 83,901,000 | $ | 71,514,000 | ||||
The primary sources of revenue for the Company are as follows:
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 31, 2025 | Showing above |
| 2023 | May 10, 2024 | |
| 2021 | Mar 30, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 27, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.