Revenue growth remains consistent, yet profitability is constrained by fluctuating gross margins that reached 20.9% in 2026Q1 but frequently hover in the high single digits.
| Sales/Revenue | 182.69M | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 20.66M | 13.88M | 11.91M | 10.3M | 12.53M | 12.29M | 9.09M |
| Gross Margin % | 11.31% | 7.62% | 7.25% | 6.45% | 7.27% | 7.34% | 8.23% |
| Gross Profit Growth % | - | 16.48% | 15.62% | -17.73% | 1.95% | 35.14% | - |
| Operating Expenses | 11.86M | 7.07M | 10.43M | 9.57M | 10.44M | 10.28M | 10.73M |
| OpEx % of Revenue | - | 3.88% | 6.35% | 5.99% | 6.06% | 6.15% | 9.71% |
| Selling, General & Admin | 9.14M | 3.41M | 8.12M | 5.9M | 7.03M | 5.02M | 6.35M |
| SG&A % of Revenue | - | 1.87% | 4.94% | 3.69% | 4.08% | 3% | 5.75% |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | 8.81M | 6.81M | 1.48M | 734K | 2.08M | 2.01M | -1.63M |
| Operating Margin % | 4.82% | 3.74% | 0.9% | 0.46% | 1.21% | 1.2% | -1.48% |
| Operating Income Growth % | - | 359.41% | 102.04% | -64.78% | 3.92% | 222.73% | - |
| EBITDA | 9.5M | 7.51M | 2.5M | 1.95M | 3.61M | 3.64M | 583.67K |
| EBITDA Margin % | 5.2% | 4.13% | 1.52% | 1.22% | 2.09% | 2.18% | 0.53% |
| EBITDA Growth % | 49.25% | 200.16% | 28.31% | -45.94% | -0.96% | 523.96% | - |
| D&A (Non-Cash Add-back) | 695K | 697K | 1.02M | 1.22M | 1.52M | 1.64M | 2.22M |
| EBIT | 6.37M | 4.73M | 879K | 5.61M | 4.81M | 4.88M | -1.15M |
| Net Interest Income | 2.15M | 2.98M | 486K | 2.98M | 3.13M | 1.31M | 374.41K |
| Interest Income | 4.22M | 5.1M | 4.51M | 8.1M | 6.45M | 4.18M | 2.99M |
| Interest Expense | 2.07M | 2.12M | 4.03M | 5.12M | 3.32M | 2.87M | 2.61M |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | 3.81M | 2.61M | -3.15M | 486K | 1.49M | 2.01M | -3.77M |
| Pretax Margin % | 2.08% | 1.43% | -1.91% | 0.3% | 0.86% | 1.2% | -3.41% |
| Income Tax | 635K | 303K | 1.42M | -85K | 580K | -781.45K | -372.5K |
| Effective Tax Rate % | 16.67% | 11.6% | -44.96% | -17.49% | 38.9% | -38.97% | 9.89% |
| Net Income | 3.17M | 2.31M | -5.29M | 571K | 911K | 2.79M | -3.39M |
| Net Margin % | 1.74% | 1.27% | -3.22% | 0.36% | 0.53% | 1.67% | -3.07% |
| Net Income Growth % | 262.94% | 143.61% | -1026.8% | -37.32% | -67.31% | 182.13% | - |
| Net Income (Continuing) | 3.17M | 2.31M | -4.56M | 571K | 911K | 2.79M | -3.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.19 | 0.04 | -0.32 | 0.04 | 0.06 | 0.17 | -0.21 |
| EPS Growth % | 198.72% | 112.5% | -1003.95% | -37.35% | -66.76% | 180.95% | - |
| EPS (Basic) | - | 0.05 | -0.32 | 0.04 | 0.06 | 0.17 | -0.21 |
| Diluted Shares Outstanding | 16.94M | 16.98M | 16.59M | 16.13M | 16.13M | 16.13M | 16.13M |
| Basic Shares Outstanding | 16.75M | 16.66M | 16.59M | 16.13M | 16.13M | 16.13M | 16.13M |
| Dividend Payout Ratio | - | - | - | 35.03% | - | 79.98% | - |
Thin operating margin sensitivity
As reported in recent financial statements, Binah Capital Group has demonstrated a consistent upward revenue trajectory, growing from $39.4 million in 2023Q4 to $48.7 million by 2026Q1, suggesting that the firm's strategy of aggregating independent advisory practices is successfully capturing a larger share of the market.
The revenue expansion appears driven by the successful integration of acquired advisory practices rather than organic market appreciation alone. Investors should monitor whether this growth can be sustained without further dilutive acquisitions, as the current revenue base remains highly sensitive to broader equity market volatility.
Based on the company's reported figures, gross margins have fluctuated significantly, peaking at 20.9% in 2026Q1 but frequently hovering in the high single digits, which highlights the inherent difficulty in maintaining pricing power within the highly competitive independent broker-dealer and wealth management aggregator landscape.
The volatility in gross margins suggests that the firm's pass-through cost structure is susceptible to shifts in advisor payout requirements and product mix. This lack of margin stability implies that the company may struggle to achieve the economies of scale necessary to compete effectively with larger, more diversified financial platforms.
According to the provided income statement data, operating income has shown extreme volatility, swinging from a $2.3 million loss in 2024Q1 to a $3.6 million profit in 2026Q1, indicating that the firm has yet to achieve the consistent operating leverage required for long-term financial stability.
The erratic nature of operating income suggests that SG&A expenses are not yet optimized relative to the firm's revenue base. This inconsistency warrants further investigation into whether management can effectively control overhead costs while continuing to scale the advisor network, as current margins remain dangerously thin.
As indicated by the quarterly data, net income has frequently dipped into negative territory, with a notable loss of $736,000 in 2024Q2, suggesting that the reported earnings quality is currently compromised by the high costs associated with the firm's ongoing integration and consolidation efforts.
The presence of non-operating items and periodic losses suggests that the bottom line is not yet reflective of a mature, stable business model. Investors should be cautious of relying on recent profitability metrics, as they appear heavily influenced by the timing of acquisitions and non-recurring operational expenses.
Based on the reported 1.27% net margin, the firm faces significant downside risk if regulatory or technology costs increase, as the current financial structure provides almost no buffer to absorb even minor operational shocks or a sustained downturn in the broader financial services sector.
Short-sellers would likely focus on the firm's inability to maintain consistent profitability despite top-line growth. The reliance on an aggregator model, combined with thin margins, suggests that the business may be one regulatory change or market correction away from significant financial distress.
Quick answers to the most common questions about buying BCG stock.
Binah Capital Group, Inc. (BCG) is profitable, generating $2.3M in net income for the fiscal year ending 2025 with a net profit margin of 1.3%.
Binah Capital Group, Inc. (BCG) reported an operating income of $6.8M, resulting in an operating profit margin of 3.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Binah Capital Group, Inc. (BCG) generated $13.9M in gross profit for the year, representing a gross profit margin of 7.6%. This demonstrates the company's core pricing power and production efficiency.