Financial Analysis

"Commitments and Contingencies Commitments The Company had capital commitments of $0.7 million with respect to unfunded obligation in private equity funds sponsored by the Company and $11.3 million of commitments related to additional operating leases that have not yet commenced. As of June 30, 2026, the Company had no collateralized or uncollateralized letters of credit outstanding. In the normal course of business, the Company enters into commitments for debt and equity underwritings. As of June 30, 2026, the Company had certain open underwriting commitments, which were subsequently settled in open market transactions and did not result in any losses. Contingencies Many aspects of the Company's business involve substantial risks of liability. In the normal course of business, the Company has been named as defendant or co-defendant in various legal actions, including arbitrations, class actions and other litigation, creating substantial exposure and periodic expenses. Certain of the actual or threatened legal matters include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. These proceedings arise primarily from securities brokerage, asset management and investment banking activities. The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company's business, which may result in expenses, adv …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and six months ended June 30, 2026 and 2025: (Expressed in thousands) For the Three Months Ended June 30, 2026 Reportable Segments Wealth Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 50,806 $ 68,209 $ 12 $ 119,027 Mutual fund and insurance income 8,505 1 5 8,511 Advisory fees 145,549 16 145,565 Investment banking - capital markets 3,551 22,644 26,195 Investment banking - advisory 1 58,136 58,137 Bank deposit sweep income 24,955 24,955 Other 4,783 874 1,309 6,966 Total revenue from contracts with customers 238,150 149,864 1,342 389,356 Other sources of revenue: Interest 21,921 16,010 1,362 39,293 Principal transactions, net 2,753 13,150 336 16,239 Other 9,847 139 2 9,988 Total other sources of revenue 34,521 29,299 1,700 65,520 Total revenue $ 272,671 $ 179,163 $ 3,042 $ 454,876 (Expressed in thousands) For the Three Months Ended June 30, 2025 Reportable Segments Wealth Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 47,203 $ 55,217 $ 13 $ 102,433 Mutual fund and insurance income 7,585 1 6 7,592 Advisory fees 125,610 18 125,628 Investment banking - capital markets 2,758 18,288 21,046 Investment banking - advisory 22,487 22,487 Bank deposit sweep income 28,654 28,654 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Fair value measurements Securities owned, securities sold but not yet purchased, investments, derivative contracts and certain loans are carried at fair value with changes in fair value recognized in earnings each period. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A description of the valuation techniques applied and inputs used in measuring the fair value of the Companys financial instruments, as well as the general classification of such instruments pursuant to the valuation hierarchy, are as follows: Securities The Company determines the fair value of securities (both long and short) primarily based on pricing sources with reasonable levels of price transparency. Where unadjusted quoted prices for identical assets or liabilities are available in an active market, we classify the securities within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities, money market funds and corporate equities. If quoted market prices are unavailable, fair values are generally determined using pricing models which incorporate market observable inputs, such as benchmark yields, recently executed transaction prices, issuer spreads, reported trades, bids, offers and other reference data. Examples of such instruments, which are typically classified within Level 2 of the valuation hierarchy, include U.S. Agency securiti …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income taxesThe effective income tax rate for the three and six months ended June30, 2026 was 30.7% and 45.5%, respectively, compared with 32.7% and 28.9% for the three and six months ended June30, 2025, respectively, and reflects the Company's annual estimate of the statutory federal and state tax rates adjusted for certain discrete items. The effective tax rate for the second quarter of 2026 was lower primarily due to fewer nondeductible foreign losses during the current period. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company has operating leases for office space and equipment expiring at various dates through 2035. The Company leases its corporate headquarters at 85 Broad Street, New York, New York, which houses its executive management team and many administrative functions for the Company as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments. In addition, the Company has 88 retail branch offices in the United States as well as offices in London, United Kingdom; St. Helier, Isle of Jersey; Geneva, Switzerland; Tel Aviv, Israel; and Hong Kong, China. The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year. Substantially all of the leases are held by the Company's subsidiary, Viner Finance Inc., which is a wholly-owned subsidiary of the Company. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew and the exercise of lease renewal options is at the Company's sole discretion. The Company did not include the renewal options as part of the right of use assets and liabilities. The depreciable life of assets and leasehold improvements is limited by the expected lease term. The Company' …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Revenue from contracts with customers Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services (i.e., the ""transaction price""). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, the Company considers the rang …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment information The Company has determined its reportable segments based on the Company's method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Companys chief operating decision maker (CODM) is the chief executive officer. The CODM evaluates the performance of the Companys reportable segments based on their year-over-year revenue and pre-tax profit or loss and uses this measure to allocate resources (including employee, financial and/or capital resources), largely in conjunction with monthly and/or quarterly reviews of segment financial performance. The CODM also uses segment profit or loss in evaluating the incentive and other compensation of segment employees as well as capital investment for facilities and information technology development. The Company's reportable segments are: Wealth Management includes commissions and fee income earned on assets under management (""AUM""), net interest earnings on client margin loans and cash balances, fees from money market funds, custodian fees, net contributions from stock loan activities and financing activities, and direct expenses; Capital Markets includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders' Equity The Company's authorized shares consist of (a) 50,000,000 shares of Preferred Stock, par value $0.001 per share; (b) 50,000,000 shares of Class A Stock, par value $0.001 per share; and (c) 99,665 shares of Class B Stock, par value $0.001 per share. No Preferred Stock has been issued. 99,665 shares of Class B Stock have been issued and are outstanding. The Class A Stock and the Class B Stock are equal in all respects except that the Class A Stock is non-voting. The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Class A Stock outstanding, beginning of period 10,608,340 10,425,830 10,387,575 10,231,736 Issued pursuant to share-based compensation plans 2,284 220,765 197,908 Repurchased and cancelled (9,855) (11,385) Class A Stock outstanding, end of period 10,608,340 10,418,259 10,608,340 10,418,259 Stock buy-back On March 1, 2024, the Company's Board of Directors approved a share repurchase program that authorized the Company to purchase up to 518,000 shares of the Company's Class A Stock, representing approximately 5.0% of its 10,357,376 then issued and outstanding shares of Class A Stock. During the year ended December 31, 2024, the Company purchased and canceled an aggregate of 243,806 shares of Class A Stock for a total consideration of $9.6 million ($39.39 per share) under its share repurchase progra …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent events The Company has performed an evaluation of events that occurred since June 30, 2026 and through the date on which the condensed consolidated financial statements were issued, and determined t here are no events that have occurred that would require recognition or additional disclosure except as disclosed in Note 12 related to the Company's declaration of a quarterly dividend.

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