Perella Weinberg Partners (PWP) reported third‑quarter 2025 revenue of $164.6 million, a 41 % decline from $278.2 million in the same period a year earlier. Adjusted earnings per share fell to $0.13, missing the consensus estimate of $0.1675 by $0.0375, a 22 % shortfall. The miss reflects a sharper than expected drop in deal‑driven revenue, as the firm’s core M&A advisory business contracted amid a broader slowdown in transaction activity.
The revenue decline was driven primarily by a 30 % drop in advisory fees from completed M&A transactions, while the firm’s restructuring and liability‑management practice contributed a modest $12 million, partially offsetting the loss. PWP’s European advisory segment grew 50 % year‑over‑year, but the U.S. M&A pipeline remained flat, underscoring the uneven impact of the market slowdown across geographies.
GAAP total compensation and benefits for the quarter were $116.3 million, down from $202.3 million in Q3 2024, largely due to lower bonus accruals tied to the revenue decline. Adjusted compensation fell to $110.3 million from $189.2 million a year earlier, while GAAP non‑compensation expenses were $39.4 million, slightly lower than $40.0 million in Q3 2024. The company’s disciplined cost management helped keep operating margins near 10 %, but the reduced fee income compressed profitability.
Cash and liquidity remained strong, with $185.5 million in cash and no debt as of September 30 2025. Over the nine‑month period, PWP returned $157.5 million to shareholders through share repurchases, unit exchanges and a quarterly dividend of $0.07 per share, scheduled for December 15 2025. The continued capital return program signals confidence in the firm’s cash‑generating capacity despite the revenue dip.
Management lowered its full‑year 2025 revenue guidance to a low single‑digit increase, reflecting concerns about the near‑term M&A environment. CEO Andrew Bednar emphasized that the firm’s strategic investments—adding 25 senior bankers and acquiring Devon Park Advisors—position PWP to capture opportunities when deal activity rebounds. Bednar also highlighted a record number of active engagements and a pipeline that remains robust, suggesting resilience in the face of current headwinds.
Investors reacted cautiously to the earnings miss, with analysts noting that the revenue and EPS shortfalls were larger than anticipated. The muted market response reflects the broader uncertainty in the M&A market, while management’s focus on cost discipline and strategic expansion signals a long‑term confidence in the firm’s ability to navigate the slowdown.
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