Revenue, entirely from advisory fees, fell 14.5% year-over-year to $156.5M in Q2 2026, with an efficiency ratio of 93.0% reflecting cost rigidity and earnings volatility.
Perella Weinberg Partners (PWP) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Net Interest Income | 0 | 0 | 10.3M | -276K | -276K | -7.61M | -15.74M |
| NII Growth % | 0% | -100% | 3831.88% | 0% | 96.37% | 51.68% | - |
| Net Interest Margin % | 0% | 0% | 1.17% | -0.04% | -0.04% | -1.06% | -2.9% |
| Interest Income | 0 | 0 | 10.3M | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 276K | 276K | 7.61M | 15.74M |
| Loan Loss Provision | -170.79M | 20.83M | 525.94M | 426.3M | 391.06M | 496.76M | 358.59M |
| Non-Interest Income | 689.25M | 750.9M | 867.74M | 648.65M | 631.51M | 801.66M | 518.99M |
| Non-Interest Income % | 100% | 100% | 98.83% | 100.04% | 100.04% | 100.96% | 103.13% |
| Total Net Revenue | 689.25M | 750.9M | 878.04M | 648.38M | 631.23M | 794.06M | 503.25M |
| Revenue Growth % | -20.87% | -14.48% | 35.42% | 2.72% | -20.51% | 57.79% | - |
| Non-Interest Expense | 840.49M | 682.06M | 430.63M | 337.18M | 287.91M | 230.71M | 159.25M |
| Efficiency Ratio | 121.94% | 90.83% | 49.04% | 52% | 45.61% | 29.06% | 31.64% |
| Operating Income | 19.55M | 48.01M | -78.53M | -115.1M | -47.73M | 66.58M | -14.6M |
| Operating Margin % | 2.84% | 6.39% | -8.94% | -17.75% | -7.56% | 8.39% | -2.9% |
| Operating Income Growth % | - | 161.13% | 31.77% | -141.13% | -171.69% | 556.18% | - |
| Pretax Income | 28.81M | 51.52M | -68.25M | -112.82M | -21.42M | 22.95M | -20.89M |
| Pretax Margin % | 4.18% | 6.86% | -7.77% | -17.4% | -3.39% | 2.89% | -4.15% |
| Income Tax | 862K | 3.51M | 21.09M | -980K | 10.33M | 18.93M | 3.45M |
| Effective Tax Rate % | 2.99% | 6.82% | -30.9% | 0.87% | -48.21% | 82.47% | -16.53% |
| Net Income | 22.19M | 35.48M | -64.73M | -17.22M | 17.88M | -9.42M | -24.34M |
| Net Margin % | 3.22% | 4.72% | -7.37% | -2.66% | 2.83% | -1.19% | -4.84% |
| Net Income Growth % | -61.22% | 154.81% | -275.82% | -196.34% | 289.77% | 61.3% | - |
| Net Income (Continuing) | 27.95M | 48M | -89.34M | -111.84M | -31.75M | 4.02M | -24.34M |
| EPS (Diluted) | 0.22 | 0.55 | -1.22 | -1.33 | -0.46 | -0.22 | -0.26 |
| EPS Growth % | -62.84% | 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 | 100.85M | 64.21M | 53.19M | 86.78M | 89.76M | 42.6M | 92.8M |
Quick answers to the most common questions about buying PWP stock.
For fiscal year 2025, Perella Weinberg Partners (PWP) reported total revenue of $750.9M. This represents a 49.2% increase compared to $503.2M in 2020.
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.
Key Metrics
Top Statement Risk
M&A revenue trough persists
Metrics are mathematically derived from official filings.
Advisory Fees Cyclical and Lumpy
Revenue, entirely from advisory fees, fell 14.5% year-over-year, reflecting a prolonged M&A downturn, though recent backlog commentary suggests a potential inflection. According to the latest quarterly report, total revenue reached $156.5 million in Q2 2026.
The firm's revenue is 100% non-interest income, with no net interest income, as it operates a pure advisory model. The 14.5% decline in total revenue over the past year aligns with the broader M&A slowdown, but the sequential increase from $148.9 million in Q1 2026 to $156.5 million in Q2 2026, coupled with management's indication that backlog is well above prior-year levels, hints at a possible trough. Investors should monitor whether this backlog converts into recognized revenue in coming quarters, as the timing of deal completions remains uncertain.
Efficiency Ratio Volatile, Signaling Cost Mismatch
The efficiency ratio swung from 2.2% in Q4 2025 to 93.0% in Q2 2026, reflecting the lumpy nature of success fees and a rigid cost base. As reported in the income statement, operating income was only $5.1 million on $156.5 million revenue.
The extreme volatility in the efficiency ratio—ranging from 2.2% to 104.7% over the last ten quarters—underscores the firm's high operating leverage and the difficulty of aligning compensation with revenue in a cyclical market. The Q2 2026 ratio of 93.0% indicates that nearly all revenue was consumed by expenses, leaving a razor-thin operating margin. This suggests that the firm's compensation structure, which typically exceeds 60% of revenue, is not adjusting quickly enough to the revenue downturn, pressuring profitability. Peer comparison shows Evercore and Moelis operating at efficiency ratios in the mid-60s to low-70s, highlighting PWP's relative inefficiency during this trough.
Provision Reversals Distort Earnings
Provision for loan losses swung dramatically, from a $271.2 million benefit in Q4 2025 to a $5.8 million charge in Q2 2026, creating significant earnings volatility. Based on reported figures, these provisions appear tied to contingent liabilities rather than traditional credit exposure.
The provision line is highly unusual for an advisory firm, with a massive negative provision in Q4 2025 that boosted operating income, followed by modest charges in subsequent quarters. This pattern suggests the firm is recognizing changes in estimated liabilities related to legal or regulatory matters, not loan losses. The $88.7 million and $80.3 million provisions in Q3 and Q2 2025, respectively, indicate a period of elevated uncertainty, possibly from deal-related contingencies. Investors should treat these provisions as non-operating and adjust for them when assessing underlying profitability, as they obscure the true earnings power of the advisory business.
Success Fees Drive Revenue Concentration
All revenue is derived from advisory fees, with a heavy reliance on transaction-based success fees, making earnings highly sensitive to M&A volumes. According to the latest financial statements, non-interest income accounted for 100% of total revenue in Q2 2026.
The firm's revenue is entirely fee-based, with no recurring income streams like asset management or net interest income, amplifying its cyclicality. The concentration in success fees means that a few large deals can disproportionately impact quarterly results, as seen in the $278.2 million revenue in Q3 2024 versus $102.1 million in Q1 2024. While the firm also earns retainer fees, the success fee component is the primary driver of revenue volatility. This structure underscores the importance of monitoring the announced and pending backlog, which provides visibility into future revenue but remains subject to completion risk.
Backlog Signals Potential Turnaround
Management reports that booked revenue plus announced and pending backlog is well above year-ago levels, suggesting a possible inflection after a prolonged downturn. As stated in the Q2 2026 earnings call, momentum continues to build, with the Gleacher Shacklock acquisition expected to close in Q3.
The CEO's commentary about accelerating announced transactions and a higher backlog versus last year, despite the EPS miss, indicates that the revenue trough may be nearing an end. The expected closing of the Gleacher Shacklock acquisition in Q3 2026 should expand the firm's scale and capabilities, potentially boosting future revenue. However, the disconnect between the optimistic tone and the actual EPS miss warrants caution; investors should confirm that backlog conversion translates into reported revenue growth in the coming quarters. The extended regulatory review periods for large-cap M&A remain a risk to timely deal completions.
Earnings Quality Clouded by One-Time Items
Reported earnings are distorted by large provision swings and stock-based compensation, obscuring the firm's true cash generation. Based on the income statement data, net income in Q4 2025 was only $9.4 million despite a $271.2 million provision benefit, indicating other significant charges.
The provision reversals and charges, combined with substantial stock-based compensation, make reported net income a poor indicator of economic performance. For instance, in Q4 2025, the $271.2 million provision benefit was largely offset by other expenses, resulting in a modest net income of $9.4 million. This suggests that the firm's compensation structure, which includes significant equity-based pay, may be understated in operating expenses, and investors should adjust for SBC to assess true cash earnings. Additionally, the transition from a private partnership to a public entity via SPAC introduced complex equity structures and non-controlling interests, complicating the reconciliation of earnings attributable to Class A shareholders. These factors warrant careful analysis when comparing PWP's earnings quality to peers like Evercore or Moelis.