Perella Weinberg Partners (NASDAQ:PWP) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals strong financial performance with record revenues and a significant increase in client engagement. Despite regulatory and economic challenges, the firm remains optimistic about future growth and client-centric services. The Q&A section highlights management's confidence in overcoming current slowdowns and leveraging hiring opportunities. Shareholder returns through dividends and buybacks are robust. While litigation costs are a concern, they are not expected to recur. Overall, the positive financial metrics, strategic focus, and shareholder returns suggest a positive stock price movement.
Key Financial Performance
Revenue $212 million, up more than 100% year-over-year, driven by larger fees per transaction and strong client engagement.
Adjusted Compensation Margin 67% of revenues, in line with full year 2024 accrual.
Adjusted Non-Compensation Expense $49 million, increased due to more than $10 million of litigation-related costs, which drove year-over-year and quarter-over-quarter increases.
Adjusted Effective Tax Rate 29.5% excluding stock compensation impact, reflecting a tax benefit from stock compensation awards vesting at a higher price than granted.
Capital Returned to Equity Holders $121 million, including over $14 million in open market repurchases and nearly $29 million related to unit exchanges.
Cash $111 million, with no debt.
Quarterly Dividend $0.07 per share.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Revenue Growth: First quarter revenues of $212 million, up more than 100% year-over-year, representing the highest first quarter revenue in the company's history.
Client Engagement: Client engagement dashboard stats, including new business reviews and requests for meetings, are at all-time highs.
Backlog Status: Announced and pending backlog has declined from record levels, but there is a strong pipeline.
Compensation Margin: Adjusted compensation margin was 67% of revenues, in line with full year 2024 accrual.
Non-Compensation Expense: Adjusted non-compensation expense of $49 million included over $10 million of litigation-related costs.
Capital Management: Returned $121 million to equity holders, including over $14 million in open market repurchases.
Recruitment: Added a Managing Director focused on transportation, leasing, and logistics, with additional hires in healthcare, software, financials, and industrial sectors.
Market Positioning: The firm is well-positioned to showcase strength and lean into growth initiatives during market disruptions.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Regulatory Issues: Policy action from the US government at the start of April has slowed down deal announcements, causing clients to pause transactions as they await clarity on tariff and trade policy.
Supply Chain Challenges: Clients are in an adjustment stage due to uncertainty in trade policies, which may impact transaction activity.
Economic Factors: The current economic environment has led to a decline in the announced and pending backlog from record levels, although there are bright spots in restructuring and financing advisory.
Litigation Costs: The adjusted non-compensation expense included over $10 million of litigation-related costs, which has increased year-over-year and quarter-over-quarter.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Client Engagement: Client engagement dashboard stats, including new business reviews, client calls, and requests for meetings, are at all-time highs, indicating strong client relationships.
Recruitment Initiatives: In the first quarter, the firm added a Managing Director focused on transportation, leasing, and logistics, with additional partners in healthcare, software, financials, and industrial slated to join.
Growth Initiatives: The firm is leaning into growth initiatives, showcasing strength during market disruptions and focusing on client-centric services.
Revenue Expectations: Expect transaction activity to accelerate once uncertainty around tariff and trade policy narrows.
Non-Compensation Expense Guidance: Prior guidance of a single-digit increase in non-comp expense for the full year 2025 remains the best estimate.
Adjusted Tax Rate: Adjusted tax rate expectation for the remainder of the year is 29.5%.
Capital Management: Continued focus on capital deployment for open market buybacks and managing share count.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Quarterly Dividend: $0.07 per share declared for the first quarter.
Total Capital Returned to Equity Holders: $121 million returned to equity holders in the first quarter.
Open Market Repurchases: Over $14 million in open market repurchases.
Unit Exchanges: Nearly $29 million related to unit exchanges.
Share Count Management: Continued focus on managing share count through buybacks and RSU vestings.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:How much of the recent slowdown in M&A is due to companies changing plans versus market conditions?
A:We see clients pausing and not terminating. There is a slowdown in announcements, but not in interest in M&A. This is a natural moment with volatility, and we anticipate a sharp response to more clarity from policy actions.
Q:Can you provide a percentage of contribution from non-M&A businesses in the quarter?
A:We don’t break out the elements of our revenue, but we feel great about the broad liability management business and have seen strength coming into the year.
Q:Are you seeing any bifurcation in trends between Europe and the U.S. in M&A activity?
A:Europe is more unified with a greater willingness for regional transactions and a more accommodative regulatory backdrop, but both regions have paused for clarity.
Q:What is the current recruiting backdrop and expectations for the full year?
A:Slower announcement activity leads to more hiring opportunities. We are seeing more talent and are ready to accelerate hiring irrespective of market conditions.
Q:Can you clarify the 67% cap ratio and the backdrop baked into it?
A:The 67% comp ratio reflects our best estimate at the end of the quarter and may adjust as the year progresses.
Q:How much of the non-comps were from litigation this quarter?
A:Litigation spend was over $11 million in the quarter, which is seasonal and not expected to recur in the balance of the year.
Q:Review of Unclear Management Responses
A:Management did not provide a specific percentage of contribution from non-M&A businesses, stating they do not break out revenue elements. Additionally, while they discussed the 67% cap ratio, they did not provide detailed context on the specific backdrop considered for that estimate.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
COVID period
Director Industrial
Director financials
Director transportation
Disruption opportunity
Europe fee
Industrial month
Instructions Head
Managing Director
Partners expectation
Policy action
Transcript Partners
action government
activity COVID
adjustment stage
announcement client
brand term
call request
clarity tariff
client adjustment
client call
client engagement
client need
client today
coverage selection
dashboard stats
deal announcement
deal client
demand start
dislocation client
engagement dashboard
expectation Partners
fee transaction
financials Managing
financing uptick
firm Europe
government start
healthcare partner
PWP Transcript
Perella Weinberg Partners (PWP) Q3 2025 Earnings Call Transcript
Positive11-7
The earnings call reveals strong European growth, proactive share management, and a strategic acquisition of Devon Park, which is expected to boost future revenue. The Q&A indicates positive momentum in M&A and restructuring activities. However, management's lack of specificity in some responses adds uncertainty. The overall sentiment is positive due to solid fundamentals, growth prospects, and strategic investments, despite not achieving record revenues.
Perella Weinberg Partners (PWP) Q2 2025 Earnings Call Transcript
Positive8-1
The earnings call reveals strong client engagement, strategic recruitment, and growth initiatives. Financials show stable revenues with a diversified revenue base, reduced non-compensation expenses, and no debt. The Q&A indicates positive market trends and strategic acquisitions, though management avoided specific guidance. Shareholder returns through dividends and repurchases add positivity. Given these factors, the stock is likely to experience a positive reaction in the coming weeks, despite the lack of specific revenue guidance.
Perella Weinberg Partners (NASDAQ:PWP) Q1 2025 Earnings Call Transcript
Positive5-3
The earnings call reveals strong financial performance with record revenues and a significant increase in client engagement. Despite regulatory and economic challenges, the firm remains optimistic about future growth and client-centric services. The Q&A section highlights management's confidence in overcoming current slowdowns and leveraging hiring opportunities. Shareholder returns through dividends and buybacks are robust. While litigation costs are a concern, they are not expected to recur. Overall, the positive financial metrics, strategic focus, and shareholder returns suggest a positive stock price movement.
Earnings call transcript: Perella Weinberg Q4 2024 revenue hits record
Positive2-7
The earnings call highlights strong financial performance with a 35% revenue increase and no debt, alongside a record capital return to shareholders. Despite some challenges, like increased litigation costs and recruitment hurdles, the company is optimistic about growth in both M&A and non-M&A sectors. The Q&A section supports this positive outlook, with management indicating a strong restructuring market and potential growth in Europe. The firm's commitment to shareholder returns, coupled with optimistic guidance, suggests a positive stock price reaction over the next two weeks.
PWP Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
