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Stifel Financial Corporation (NYSE:SF) reported record second-quarter revenue and a significant sequential improvement in earnings, according to the company’s Q2 2025 financial results presentation released on July 30. The results demonstrate a strong recovery from the previous quarter’s performance, which was impacted by a substantial legal charge.
Quarterly Performance Highlights
Stifel achieved net revenue of $1.28 billion in the second quarter, representing a 6% year-over-year increase and a 2% sequential improvement. The company reported non-GAAP earnings per share of $1.71, up 7% from the same period last year and a remarkable 249% increase from the first quarter of 2025.
"This quarter’s results demonstrate the resilience of our diversified business model and our ability to execute effectively in varying market conditions," the company noted in its presentation.
The significant sequential improvement reflects Stifel’s recovery from Q1 2025, when the company reported an EPS of just $0.49 due to a $180 million legal charge. Pre-tax income for Q2 reached $261 million, representing a 244% sequential increase, while maintaining a solid pre-tax operating margin of 20.3%.
As shown in the following revenue bridge chart, the year-over-year revenue growth was primarily driven by client facilitation ($42 million increase) and net interest income ($19 million increase):
Wealth Management Growth
Stifel’s Global Wealth Management segment continued to be a key growth driver, generating $846 million in revenue, a 6% increase compared to the same period last year. The segment benefited from growth across all revenue streams, with asset management fees up 6%, net interest income up 8%, and transactional revenue up 3% year-over-year.
The company highlighted its #1 ranking in employee advisor satisfaction by J.D. Power for the third consecutive year, which has helped fuel its recruiting efforts. Stifel reported its strongest recruiting quarter since Q4 2015, completing the acquisition of 36 B. Riley Financial Advisors during the period.
Client assets reached $516.5 billion, representing a 9% increase from the previous year, as illustrated in the following breakdown of wealth management performance:
The company’s wealth management business has maintained a high percentage of recurring revenue, with net interest income and asset management fees comprising a significant portion of the revenue mix. This provides stability to Stifel’s overall financial performance.
Institutional Business Performance
Stifel’s Institutional Group delivered $420 million in revenue for the second quarter, a 7% increase year-over-year. The segment achieved its highest second quarter net revenue since Q2 2021, driven by record total transactional revenue and record fixed income transactional revenue.
Fixed income revenue showed particularly strong growth at 12% year-over-year, while advisory revenue declined slightly by 3%. Capital raising revenue increased by 4% compared to the same period last year.
The company highlighted its leading position in municipal issuance, ranking #1 in number of issues year-to-date in 2025 with a 13.2% market share. Stifel also completed the acquisition of Bryan, Garnier & Co. during the quarter, strengthening its institutional capabilities.
Banking and Capital Position
Stifel emphasized the strength of its banking operations, highlighting consistent net interest margin despite declining interest rates. The company’s allowance for credit losses relative to total loans remains robust, indicating a conservative approach to credit risk management.
The company continued to deploy capital strategically, repurchasing 970,000 shares during the second quarter. Stifel’s tier 1 leverage ratio and tier 1 risk-based capital ratio remain solid, providing flexibility for future growth initiatives and capital returns to shareholders.
Strategic Initiatives & Outlook
Looking ahead, Stifel provided guidance for the remainder of 2025, projecting continued growth across its business segments. The company expects to maintain its compensation ratio and operating non-compensation expenses at current levels.
Stifel is also focusing on integrating artificial intelligence into its platform to enhance client service, data management, and insights. The company emphasized that while AI increases efficiency, "the human side remains irreplaceable" in its business model.
The company’s stock closed at $110.09 on July 29, 2025, down 1.45% ahead of the earnings release. Despite the strong quarterly performance, Stifel’s shares remain well below their 52-week high of $120.64, suggesting potential upside if the company continues to execute on its growth strategy.
With record revenue, strategic acquisitions, and strong recruiting momentum, Stifel appears well-positioned to capitalize on opportunities in both wealth management and institutional businesses for the remainder of 2025.
Full presentation:
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