Perella Weinberg Partners (PWP) - 10-Q Summary for Period Ended June 30, 2026
Business Context and Reporting Period
This is a Quarterly Report (Form 10-Q) for Perella Weinberg Partners, a global independent advisory firm, for the period ended June 30, 2026. The Company operates as a single reportable segment (Advisory) providing strategic and financial advice, including M&A, restructuring, and capital markets services. The Company operates under an Up-C structure with redeemable non-controlling interests held by working partners.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Revenues | $156.5 million | $305.4 million |
| Operating Income (Loss) | $5.1 million | $(7.8) million |
| Net Income (Loss) Attributable to PWP | $5.3 million | $6.8 million |
| Diluted EPS (Class A) | $0.06 | $0.08 |
| Cash and Cash Equivalents | $115.8 million (as of June 30, 2026) | |
| Operating Cash Flow (6 Months) | $(60.9) million | |
| Debt | None outstanding; $50.0 million Revolving Credit Facility available | |
| Tax Receivable Agreement Liability | $105.6 million |
Material Changes vs. Prior Comparable Period
- Revenue: For the six months ended June 30, 2026, revenue decreased 17% to $305.4 million compared to $367.1 million in the prior year period. This was driven by a lower average fee per client and decreased financing and capital solutions activity, partially offset by increased M&A activity. For the quarter, revenue was flat at 1% growth.
- Profitability: Operating income for the quarter declined 44% to $5.1 million from $8.9 million. For the six-month period, the Company reported an operating loss of $7.8 million compared to an operating income of $20.6 million in the prior year.
- Compensation Expenses: Total compensation and benefits increased 7% for the quarter but decreased 8% for the six months. The six-month decrease was primarily due to lower discretionary bonus accruals on lower revenues, though this was offset by a higher non-bonus compensation base and costs related to a "Business Realignment."
- Equity-Based Compensation: Increased 29% for the quarter and 24% for the six months, driven by accelerated amortization of awards due to the Business Realignment and higher vesting volumes.
- Liquidity: Cash and cash equivalents decreased significantly from $255.9 million at year-end 2025 to $115.8 million at June 30, 2026, primarily due to operating outflows (including bonus payments) and financing activities (dividends and tax withholdings).
Guidance, Outlook, and Management Commentary
- Business Realignment: In Q2 2026, the Company initiated a review resulting in headcount reductions to focus on higher-performing areas. The Company incurred $5.1 million in separation benefits and $8.6 million in accelerated equity-based compensation in Q2. Approximately $8.5 million in additional expenses are expected in the second half of 2026.
- Acquisitions: On April 13, 2026, the Company agreed to acquire Gleacher Shacklock LLP, an independent advisory firm in London, expected to close in Q3 2026. The Company also completed the acquisition of Devon Park Advisors in October 2025, with contingent consideration (Earn-out) valued at $2.0 million as of June 30, 2026.
- Dividends: The Board declared a cash dividend of $0.07 per share of Class A common stock on July 29, 2026, payable September 10, 2026.
- Legal Proceedings: The Company is awaiting a court decision on a 2015 lawsuit against former partners regarding the formation of a competing firm. In the six months ended June 30, 2026, the Company recognized a net credit of $4.3 million in legal fees due to insurance recoveries exceeding previous estimates.
- Risks: The Company highlights risks related to the volatility of transaction-based fees, dependence on fee-paying clients, regulatory changes, and the potential impact of the Business Realignment on operations.
Investor Verification Checklist
- Verify the impact of the "Business Realignment" on future operating margins and the accuracy of the estimated $8.5 million remaining cost.
- Monitor the closing of the Gleacher Shacklock LLP acquisition and its integration timeline.
- Review the status of the 2015 litigation against former partners and the finality of the $4.3 million insurance recovery credit.
- Assess the sustainability of the 17% year-over-year revenue decline in the six-month period and the mix shift between M&A and financing activities.
- Confirm the Company's ability to meet the $105.6 million Tax Receivable Agreement liability obligations as they come due, given the reduction in cash balances.