Operating margins remain under severe pressure, evidenced by the recent decline to -8.7% in 2026Q1 as the firm struggles to align fixed costs with fluctuating advisory revenues.
| Sales/Revenue | 687.99M | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 698.88M | 730.07M | 352.1M | 222.08M | 240.17M | 297.3M | 144.65M |
| Gross Margin % | 101.58% | 97.23% | 40.1% | 34.24% | 38.03% | 37.09% | 27.87% |
| Gross Profit Growth % | - | 107.35% | 58.55% | -7.53% | -19.21% | 105.52% | - |
| Operating Expenses | 617.04M | 682.06M | 430.63M | 337.18M | 287.91M | 230.71M | 159.25M |
| OpEx % of Revenue | - | 90.83% | 49.04% | 51.98% | 45.59% | 28.78% | 30.68% |
| Selling, General & Admin | 117.14M | 61.45M | 354.71M | 269.01M | 234.09M | 181.61M | 110.71M |
| SG&A % of Revenue | - | 8.18% | 40.4% | 41.47% | 37.07% | 22.65% | 21.33% |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | 23.44M | 48.01M | -78.53M | -115.1M | -47.73M | 66.58M | -14.6M |
| Operating Margin % | 3.41% | 6.39% | -8.94% | -17.74% | -7.56% | 8.31% | -2.81% |
| Operating Income Growth % | - | 161.13% | 31.77% | -141.13% | -171.69% | 556.18% | - |
| EBITDA | 45.1M | 68.84M | -58.15M | -100.42M | -37.04M | 81.07M | 935K |
| EBITDA Margin % | 6.56% | 9.17% | -6.62% | -15.48% | -5.87% | 10.11% | 0.18% |
| EBITDA Growth % | 544.42% | 218.38% | 42.09% | -171.12% | -145.69% | 8570.91% | - |
| D&A (Non-Cash Add-back) | 21.66M | 20.83M | 20.38M | 14.68M | 10.69M | 14.49M | 15.53M |
| EBIT | 39.59M | 51.52M | -78.53M | -115.1M | -47.73M | 30.56M | -5.15M |
| Net Interest Income | 0 | 0 | 10.3M | -276K | -276K | -7.61M | -15.74M |
| Interest Income | 0 | 0 | 10.3M | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 276K | 276K | 7.61M | 15.74M |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | 28.97M | 51.52M | -68.25M | -112.82M | -21.42M | 22.95M | -20.89M |
| Pretax Margin % | 4.21% | 6.86% | -7.77% | -17.39% | -3.39% | 2.86% | -4.03% |
| Income Tax | 3.09M | 3.51M | 21.09M | -980K | 10.33M | 18.93M | 3.45M |
| Effective Tax Rate % | 10.66% | 6.82% | -30.9% | 0.87% | -48.21% | 82.47% | -16.53% |
| Net Income | 19.63M | 35.48M | -64.73M | -17.22M | 17.88M | -9.42M | -24.34M |
| Net Margin % | 2.85% | 4.72% | -7.37% | -2.66% | 2.83% | -1.18% | -4.69% |
| Net Income Growth % | 269.99% | 154.81% | -275.82% | -196.34% | 289.77% | 61.3% | - |
| Net Income (Continuing) | 28.12M | 48M | -89.34M | -111.84M | -31.75M | 4.02M | -24.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 382.97M | 388.1M | 651.14M | 115.59M | 122.68M | 145.03M | 0 |
| EPS (Diluted) | 0.19 | 0.55 | -1.22 | -1.33 | -0.46 | -0.22 | -0.26 |
| EPS Growth % | 164% | 145.08% | 7.94% | -187.84% | -108.14% | 15.67% | - |
| EPS (Basic) | - | 0.55 | -1.22 | -0.40 | 0.41 | -0.22 | -0.26 |
| Diluted Shares Outstanding | 101.42M | 64.21M | 53.19M | 86.78M | 89.76M | 42.6M | 92.8M |
| Basic Shares Outstanding | 70.4M | 64.21M | 53.19M | 43.27M | 43.84M | 42.6M | 46.4M |
| Dividend Payout Ratio | - | 64.58% | - | - | 320.48% | - | - |
High Revenue Volatility
As reported in recent financial filings, PWP's quarterly revenue has exhibited significant volatility, culminating in a 14.48% year-over-year decline that underscores the firm's sensitivity to the broader M&A environment and the inherent lumpiness of success-fee recognition across its core advisory business segments.
The firm's top-line performance appears heavily dependent on the timing of deal closures, which creates substantial quarter-to-quarter variance. Investors should monitor whether the current revenue trajectory reflects a structural slowdown in client activity or merely the timing delays associated with complex, large-cap transaction cycles.
Based on the provided income statement data, PWP's operating margins have faced persistent pressure, recently dipping to 6.39% as the firm struggles to align its fixed professional cost base with the fluctuating revenue environment characteristic of boutique investment banking advisory services.
The disparity between gross profit and operating income suggests that high fixed compensation costs are limiting the firm's ability to scale profitably during revenue troughs. This margin profile warrants further investigation into whether management can successfully optimize its compensation-to-revenue ratio without compromising long-term talent retention.
According to historical income statements, PWP's net income is frequently impacted by significant stock-based compensation charges, which reached $90.1M in 2024Q2, suggesting that reported EPS figures may not fully capture the underlying cash-generating capacity of the firm's core advisory operations.
The heavy reliance on equity-based incentives appears to create a disconnect between GAAP earnings and the actual economic value distributed to partners. Analysts should carefully reconcile these non-cash charges to determine the true earnings power attributable to Class A shareholders during periods of market volatility.
As indicated by the firm's recent financial performance, the high variable cost structure of PWP may be a double-edged sword, as the inability to rapidly adjust professional headcount costs during revenue downturns has led to periods of negative operating income, such as the -8.7% margin in 2026Q1.
Short-term observers may argue that the firm's cost structure lacks the necessary flexibility to withstand prolonged M&A droughts. This suggests that PWP's profitability is highly sensitive to management's ability to maintain strict expense discipline while simultaneously competing for top-tier talent in a crowded advisory market.
Quick answers to the most common questions about buying PWP stock.
Perella Weinberg Partners (PWP) is profitable, generating $35.5M in net income for the fiscal year ending 2025 with a net profit margin of 4.7%.
Perella Weinberg Partners (PWP) reported an operating income of $48.0M, resulting in an operating profit margin of 6.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Perella Weinberg Partners (PWP) generated $730.1M in gross profit for the year, representing a gross profit margin of 97.2%. This demonstrates the company's core pricing power and production efficiency.