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By Brandon Hornback
Binah Capital Group, Inc. (NASDAQ: BCG) delivered a top-down beat, led by strong asset under management (AUM) growth, clearing the way for further expansion.
The company posted an impressive 9.5% increase in revenue to $46.2 million, led by strengthened commissions, increased advisory fees, and higher interest income. Considerable growth in both trailing commissions and advisory fees helped offset some dampened sales-driven business results.
AUM increased 11% year-over-year to $30.0 billion, reflecting the scalability of BCG’s advisor-centric business model and underlining further capacity to attract and grow client assets via advisory and commission-based business lines. Market appreciation and successful asset retention remained supportive of AUM growth and are exciting indicators for future earnings potential.
Profitability increased to a multi-quarter high, with EBITDA growing to $2.9 million, kicking the profitability machine into gear. As debt levels continue to moderate and the top line approaches record highs, BCG has room to make strategic investments to support advisors and enhance platforms if needed.
BCG’s management indicated positive momentum into the fourth quarter, which is fueled by advisor productivity, macro trends, and a competitive operating structure. Although shares experienced increased volatility following this print, they settled almost flat and trade at a discounted entry point: Shares trade at a 92% discount on a last twelve months price-to-sales ratio.
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