This article first appeared on GuruFocus.
Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Consolidated revenue increased by 24% year over year to $530 million, marking the strongest quarterly revenue since Q3 of fiscal 2022.
Wealth management division saw a 24% year-over-year revenue increase, with client assets surpassing $49 billion, a new record.
Australian wealth management business achieved a 43% year-over-year revenue increase, driven by increased client activity and new client onboarding.
Capital markets revenue rose by 25% year over year, with significant contributions from the Australian business, particularly in the mining sector.
The company completed the acquisition of Wilson’s Advisory, adding approximately $7 billion in client assets to the Australian wealth platform.
The company recorded a non-cash goodwill impairment charge of $110 million in its US capital markets business.
An IFRS loss attributable to common shareholders of $204 million was reported, resulting in a loss per share of $2.04.
Professional fees remain elevated due to ongoing remediation efforts in the US, impacting overall expenses.
The US business experienced a break-even result in the capital markets division, with profitability challenges persisting.
Regulatory provisions related to US enforcement matters have increased, reflecting ongoing compliance challenges.
Q: Dan, regarding the regulatory provision this quarter, it’s a sizable amount. Can you speak to your capital position and ability to fund it? Will you need to raise debt? A: (CFO) We set aside the cash and capital when we made the provision for the regulatory matter. We have sufficient capital to continue our US operations and invest in the business, so there’s no issue with our balance sheet. It’s already funded. (CEO) We’ve known for three years that we needed to accumulate the required capital for this.
Q: With the divestment of the trading desk, can you provide some color on its top-line contribution and related expenses? A: (CFO) The sale of the international equities group won’t have a meaningful impact on our earnings profile. The principal trading revenue line in our US capital markets business disclosure primarily relates to that business. We expect an improvement in margins as we pivot to ECM and advisory business and see a decrease in professional fees due to US remediation work.
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Q: Is there more work to do in the US, maybe reorienting the focus of that segment? A: (CEO) We’re always evolving the business globally in several core sectors. We’ll continue to expand into those sectors, particularly in the advisory channel. We’re always looking for the right partner at the right price and time.
Q: What are you and the board thinking in terms of strategic direction if you were to exit a market like the UK? A: (CEO) I can’t comment on rumors and speculation. We have a minority partner in the UK business and are always exploring alternatives. Our wealth businesses, including the UK, are performing well with record revenue and earnings. The board will assess strategic directions at the right time.
Q: Could you talk about the integration timeline and strategy with Wilson in Australia and further inorganic growth in that region? A: (CEO) Wilson is a significant acquisition with 60 advisors and 8 offices to integrate. The integration is ongoing, and our strategy in Australia is primarily organic, similar to Canada. We continue to hire advisors and occasionally pursue inorganic opportunities like Wilson.
Q: How is the rationalization of the Canadian wealth marketplace impacting your efforts and pipeline? A: (CEO) The recruiting pipeline fluctuates, but there are fewer independent platforms now. We remain a strong independent wealth platform with $49 billion in assets. We continue to recruit and invest in the business, making it attractive for advisors.
Q: Can you dig into the impairment in the US capital markets? Is it specific to certain segments? A: (CFO) The goodwill on the balance sheet relates to the aggregate of acquisitions. The impairment is due to a lower starting point for fiscal 2026, impacting carrying value relative to evaluation. It’s not specific to a business line but affects the full US capital markets business.
Q: How do you drive profitability in the US, given the revenue trend and remaining goodwill? A: (CFO) We are projecting good growth in the business overall. The focus is on improving margins and profitability through strategic pivots and continued growth in US revenues.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.