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Note 21 - Segment and Geographic Information
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

21. SEGMENT AND GEOGRAPHIC 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.

 

 The following table sets forth the Company's segment information of revenue, expenses, and income (loss) from operations. 

 

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended March 31, 2026

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Investment banking and new issue

 $45,711  $-  $-  $45,711  $-  $45,711 

Net trading

  13,200   -   -   13,200   -   13,200 

Asset management

  -   2,419   -   2,419   -   2,419 

Principal transactions

  -   -   (3,915)  (3,915)  -   (3,915)

Other income

  -   290   197   487   -   487 

Total revenues

  58,911   2,709   (3,718)  57,902   -   57,902 

Compensation

  35,842   1,817   30   37,689   3,618   41,307 

Business development

  930   97   -   1,027   230   1,257 

Occupancy and equipment

  793   57   -   850   276   1,126 

Subscriptions, clearing, and execution

  3,799   93   -   3,892   60   3,952 

Professional fee and other operating

  2,822   465   14   3,301   1,623   4,924 

Depreciation and amortization

  -   2   -   2   201   203 

Total operating expenses

  44,186   2,531   44   46,761   6,008   52,769 

Operating income (loss)

  14,725   178   (3,762)  11,141   (6,008)  5,133 

Interest expense

  (44)  -   -   (44)  (1,291)  (1,335)

Income (loss) from equity method affiliates

  -   -   (527)  (527)  -   (527)

Income (loss) before income taxes

  14,681   178   (4,289)  10,570   (7,299)  3,271 

Income tax expense (benefit)

  -   65   -   65   (247)  (182)

Net income (loss)

  14,681   113   (4,289)  10,505   (7,052)  3,453 

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

  -   -   (718)  (718)  -   (718)

Enterprise net income (loss)

  14,681   113   (3,571)  11,223   (7,052)  4,171 

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

  -   -   -   -   2,679   2,679 

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

 $14,681  $113  $(3,571) $11,223  $(9,731) $1,492 
                         

Other statement of operations data

                        

Compensation as a percentage of revenue

  60.84%  67.07%  (0.81)%  65.09%  N/A   71.34%

Operating income / (loss) as a percentage of revenue

  25.00%  6.57%  101.18%  19.24%  N/A   8.86%

Net income / (loss) as a percentage of revenue

  24.92%  4.17%  115.36%  18.14%  N/A   5.96%

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

  24.92%  4.17%  96.05%  19.38%  N/A   2.58%

 

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended March 31, 2025

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  

(1)

  

Total

 

Investment banking and new issue

 $20,164  $-  $-  $20,164  $-  $20,164 

Net trading

  9,211   -   -   9,211   -   9,211 

New issue and advisory

  -   2,020   -   2,020   -   2,020 

Principal transactions

  -   -   (2,330)  (2,330)  -   (2,330)

Other income

  -   438   (763)  (325)  -   (325)

Total revenues

  29,375   2,458   (3,093)  28,740   -   28,740 

Compensation

  18,143   1,399   158   19,700   1,966   21,666 

Business development

  376   58   1   435   394   829 

Occupancy and equipment

  669   51   -   720   280   1,000 

Subscriptions, clearing, and execution

  2,009   86   26   2,121   53   2,174 

Professional fee and other operating

  1,244   372   183   1,799   993   2,792 

Depreciation and amortization

  -   2   -   2   170   172 

Total operating expenses

  22,441   1,968   368   24,777   3,856   28,633 

Operating income / (loss)

  6,934   490   (3,461)  3,963   (3,856)  107 

Interest expense

  (18)  -   -   (18)  (1,430)  (1,448)

Income (loss) from equity method affiliates

  -   -   2,418   2,418   -   2,418 

Income (loss) before income taxes

  6,916   490   (1,043)  6,363   (5,286)  1,077 

Income tax expense (benefit)

  -   -   -   -   139   139 

Net income (loss)

  6,916   490   (1,043)  6,363   (5,425)  938 

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

  -   -   (173)  (173)  -   (173)

Enterprise net income (loss)

  6,916   490   (870)  6,536   (5,425)  1,111 

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

  -   -   -   -   782   782 

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

 $6,916  $490  $(870) $6,536  $(6,207) $329 
                         

Other statement of operations data

                        

Compensation and benefits as a percentage of revenue

  61.76%  56.92%  -5.11%  68.55%  N/A   75.39%

Operating income / (loss) as a percentage of revenue

  23.61%  19.93%  111.90%  13.79%  N/A   0.37%

Net income / (loss) as a percentage of revenue

  23.54%  19.93%  33.72%  22.14%  N/A   3.26%

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

  23.54%  19.93%  28.13%  22.74%  N/A   1.14%

 

(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 March 31, 2026

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  (1)  

Total

 

Total Assets

 $616,344  $8,968  $29,194  $654,506  $29,631  $684,137 
                         

Included within total assets:

                        

Investments in equity method affiliates

 $-  $-  $11,258  $11,258  $-  $11,258 

Goodwill (2)

 $54  $55  $-  $109  $-  $109 

Intangible assets (2)

 $166  $-  $-  $166  $-  $166 

 

BALANCE SHEET DATA

December 31, 2025

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

  

Unallocated

     
  

Markets

  

Management

  

Investing

  

Total

  (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 

 

(1)

Unallocated assets primarily include: (i) amounts due from related parties; (ii) furniture and equipment, net; and (iii) other assets that are not considered necessary for an understanding of business segment assets. Such amounts are excluded from the 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 tables above.

 

Geographic Information

 

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

 

GEOGRAPHIC DATA

(Dollars in Thousands)

 

  

Three Months Ended March 31,

 
  

2026

  

2025

 

Total Revenues:

        

United States

 $55,819  $27,489 

Europe

  2,083   1,251 

Total

 $57,902  $28,740 

 

Long-lived assets attributable to an individual country, other than the United States, are not material.