Stifel Financial (SF -3.01%), a diversified financial services firm offering wealth management and investment banking, reported its second quarter 2025 results on July 30, 2025. The company announced Non-GAAP earnings per share of $1.71, well ahead of analyst expectations of $1.61 (non-GAAP), and Non-GAAP revenue of $1.28 billion, above the $1.23 billion GAAP estimate. These results represent a significant beat on both non-GAAP profit and GAAP revenue. The quarter was shaped by broad-based growth across operating segments, but was tempered by a mild decline in GAAP pre-tax margin and an uptick in expense ratios. Overall, the quarter showed resilience and solid capital management, highlighted by continued investment in business growth and shareholder returns.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.71 | $1.61 | $1.60 | 6.9 % |
| Revenue (Non-GAAP) | $1.28 billion | $1.23 billion | $1.22 billion | 5.3 % |
| Pre-tax Margin (Non-GAAP) | 20.3 % | 20.6 % | (0.3) pp | |
| Net Income (Non-GAAP) | $185.6 million | $176.6 million | 5.1 % | |
| Return on Tangible Common Equity | 21.7 % | 21.9 % | (0.2) pp |
Source: Analyst estimates for the quarter provided by FactSet.
Understanding Stifel Financial’s Business and Strategy
Stifel Financial is a full-service investment and wealth management firm headquartered in the United States, with operations in the U.S. U.K, and Canada. It serves individual investors, institutions, and corporations through a broad platform that includes private client services, institutional equity and fixed income trading, investment banking, and retail and commercial banking, providing access to a wide range of financial products and services.
The company’s business model centers on diversification. Wealth management, institutional trading, and investment banking are all meaningful drivers. Key success factors include active advisor recruiting, productivity gains, and strategic acquisitions to boost capabilities and reach. Human capital remains a central focus, with advisor satisfaction, scale, and talent retention seen as essential to client success and the firm’s competitive standing.
Quarterly Developments: Revenue Growth, Cost Trends, and Recruitment
Non-GAAP net revenues topped $1.28 billion, up 5.4% from a year earlier. Net income on a non-GAAP basis rose 5.1% from the prior year to $185.6 million. Both the Global Wealth Management and Institutional Group segments drove this growth, with especially strong gains in transactional revenue, asset management, and fixed income activities.
Within Global Wealth Management, net revenues rose 5.6% to $845.6 million year over year (GAAP). Fee-based client asset growth stood out, rising 15% to $206.3 billion, while total client assets reached $516.5 billion. The company recruited 82 new advisors, the best result in a decade, and integrated 36 advisors from its B. Riley acquisition, which contributed approximately $4 billion in assets under management. Pre-tax margin for the segment edged down to 36.2% as compensation and non-compensation ratios crept higher.
In the Institutional Group, net revenues advanced 7.5% to $419.8 million, boosted by broad-based gains. Fixed income transactional revenue increased 21.0%, and equity transactional revenue climbed 16%, both reflecting improved client activity in volatile markets. Advisory revenues softened, falling 3% as deal completions lagged, but fixed income capital raising posted an increase of 12% and Equity capital raising revenues decreased 4% from the year-ago quarter. The segment’s pre-tax margin improved, however, to 14.5% from 12.5% in Q2 2024.
Cost trends were mixed. While Non-GAAP compensation and non-compensation ratios were in line with historical norms at 58.0% and 21.7%, both GAAP ratios trended up from a year ago. The compensation ratio (GAAP) rose to 60.3%, and the non-compensation ratio (GAAP) reached 23.1%. Non-GAAP pre-tax margin of 20.3% declined slightly by 0.3 percentage points versus Q2 2024, and provision for credit losses rose to $8.3 million versus $3.0 million in Q2 2024, due to higher loan growth and specific credit events in the retained portfolio.
Stifel increased its capital return to shareholders. It repurchased $83 million of shares, up from $17.6 million in the second quarter of the prior year, and The company’s quarterly dividend was $0.46 per share, unchanged from the previous quarter and up 9.5% from Q2 2024. Tangible book value per share grew by 4% to $33.30, up from the prior year. Capital ratios remained robust, with a Tier 1 common capital ratio of 14.5% and Tier 1 risk-based capital ratio of 17.5%. These figures indicate that the company is providing prudent shareholder returns and maintaining regulatory compliance.
Looking Ahead: Guidance and Key Watch Points
Management did not provide formal financial guidance for the next quarter or full fiscal year. In commentary, leadership expressed confidence in the positioning of the business model “the second half of the year and beyond,” but cited ongoing market and policy uncertainties. Management noted that “periods of uncertainty highlight the value of our advice-centric business model,” pointing to the importance of maintaining flexibility in capital deployment and adapting share repurchases or loan growth depending on market conditions.
Rising credit loss provisions will also warrant attention, as they were primarily impacted by specific reserves on individual credits and overall loan growth in the retained portfolio. Management highlighted that continued revenue growth, especially in capital markets, depends on markets stabilizing and client activity translating into realized fees. The company increased its quarterly dividend by 9.5% to $0.46 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
