TORONTO, Nov. 13, 2025 /CNW/ - Canaccord Genuity Group Inc. (Canaccord Genuity Group, the Company) (TSX:CF) today announced its financial results for the second fiscal quarter and six months ended September 30, 2025.
"Our second quarter performance reflects strong top-line growth, underpinned by record results in wealth management, increased corporate financing, and a recovery in advisory completions," said Dan Daviau, Chairman and CEO of Canaccord Genuity Group Inc. "Although profitability in our U.S. business was impacted by an increased provision to previously disclosed regulatory matters and a non-cash goodwill impairment resulting from sustained market headwinds, our balance sheet remains solid and supports continued execution of our strategic priorities. With a strong first half, and assuming stable market conditions, we are confident in exceeding last year's performance and achieving our profitability targets for the fiscal year."
Second fiscal quarter and six-months fiscal year-to-date highlights (adjusted):
(All dollar amounts are stated in thousands of Canadian dollars and on an adjusted basis excluding significant items(1) unless otherwise indicated)
Second quarter revenue of $530.4 million, an increase of 24.0% over the same period in the prior year
Six-month fiscal year-to-date revenue of $978.9 million, an increase of 14.3% compared to the first six months of fiscal 2025
Global wealth management operations earned record quarterly revenue of $269.4 million and six-month year-to-date revenue of $512.3 million, year-over-year improvements of 24.4% and 18.5% respectively
Global capital markets revenue of $252.7 million improved 25.1% year-over-year, primarily attributable to higher investment banking, trading and commissions & fees revenue. Fiscal year-to-date revenue in this division improved by 11.1% year-over-year to $452.8 million
Second quarter net income before taxes of $59.8 million, an increase of 41.4% or $17.5 million year-over-year
CG's global wealth management division contributed net income before taxes of $52.1 million in the second quarter of fiscal 2026, a year-over-year increase of 36.4%
CG's global capital markets division contributed second quarter net income before taxes of $25.5 million, an improvement of 71.0 % compared to the same period of last year
Six-month year-to-date net income before taxes of $93.2 million, an increase of 20.8% or $16.1 million compared to the first six months of fiscal 2025
Diluted earnings per common share for the second fiscal quarter of $0.27 per share, an increase of 35.0% from the same period in the prior year
Diluted earnings per share for the first six months of fiscal 2026 amounted to $0.41, an increase of 24.2% compared to the same period in the prior year
Total client assets(1) in our global wealth management division increased by 21.0% year-over-year to a new record of $133.6 billion with new highs achieved in all regions. Growth reflects year-over-year increases of 23.7% in Canada, 17.6% in the UK & Crown Dependencies, and 34.9% in Australia
On an IFRS basis, revenue of $535.8 million in Q2/26 increased 25.0% year over year. Net loss before taxes for the second quarter of $158.5 million compared to pre-tax income of $16.9 million in Q2/25. Diluted loss per common share of $2.04 compared to a diluted loss per common share of $0.05 in Q2/25
In anticipation of a unified resolution with its US regulators, the Company has increased its provision by US$55.0 million [C$76.6 million] to US$75.0 million [C$104.4 million] in its financial results for the fiscal quarter ended September 30, 2025, to reflect the Company's current estimate of total monetary penalties related to an expected resolution of its previously disclosed US regulatory enforcement matters. Further information has been provided in a news release dated November 13, 2025 and in Note 19 of the unaudited interim condensed consolidated financial statements for the period ended September 30, 2025
The Company recorded a non-cash goodwill impairment charge of $110.0 million related to its US capital markets business. This charge reflects reduced business activity driven by an operating environment affected by evolving market dynamics and trade-related uncertainties, impacting revenue and profitability for this business
On an IFRS basis, for the six months ended September 30, 2025, revenue was $984.2 million, an increase of 14.9% compared to the same period in the prior year. Year-to-date net loss before taxes was $170.5 million compared to net income before taxes of $40.4 million for the first half of fiscal 2025. Diluted loss per common share of $2.38 compared to a diluted loss per common share of $0.02 over the comparative period in the prior year
Second quarter common share dividend of $0.085 per share
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1 See Non-IFRS Measures on page 6
Three months ended September 30
Year-over-year change
Three months ended June 30
Quarter-over-quarter change
Q2/26
Q2/25
Q1/26
Second fiscal quarter highlights- adjusted1
Revenue 1
$530,420
$427,619
24.0 %
$448,447
18.3 %
Expenses 1
$470,631
$385,333
22.1 %
$415,063
13.4 %
Diluted earnings per common share 1
$0.27
$0.20
35.0 %
$0.13
107.7 %
Net Income 1,2
$44,928
$31,804
41.3 %
$26,059
72.4 %
Net Income attributable to common shareholders 1,3
$29,022
$20,185
43.8 %
$13,505
114.9 %
Second fiscal quarter highlights- IFRS
Revenue
$535,791
$428,636
25.0 %
$448,447
19.5 %
Expenses
$694,331
$411,747
68.6 %
$460,360
50.8 %
Diluted loss per common share
$(2.04)
$(0.05)
n.m.
$(0.32)
n.m.
Net (loss) income2
$(186,810)
$9,166
n.m.
$(16,845)
n.m.
Net loss attributable to common shareholders3
$(203,564)
$(4,759)
n.m.
$(30,911)
n.m.
1. Figures excluding significant items are non-IFRS measures. See Non-IFRS Measures on page 62. Before non-controlling interests and preferred share dividends paid on the Series A and Series C Preferred Shares3. Net income (loss) attributable to common shareholders is calculated as the net income adjusted for non-controlling interests and preferred share dividends
n.m. not meaningful
Core business performance highlights:
Canaccord Genuity Wealth Management
The Company's combined global wealth management operations earned record quarterly revenue of $269.4 million for the second fiscal quarter, a year-over-year increase of 24.4%, representing eight consecutive quarters of record revenue in this business. This increase was largely attributable to record quarterly commissions and fees revenue of $211.1 million which increased by 24.9% year-over-year, reflecting higher contributions from all geographies, in addition to higher investment banking revenues in the Canadian and Australian operations. On a year-to-date basis, revenue amounted to $512.3 million, an increase of 18.5% compared to the first half of the prior fiscal year. Net income before taxes excluding significant items(1) increased by 36.4% year-over-year to $52.1 million during Q2/26 and by 30.0% year-over-year to $92.9 million for the six-month period ended September 30, 2025, representing new records for both measurement periods.
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1 See Non-IFRS Measures on page 6
Wealth management operations in the UK & Crown Dependencies generated second quarter revenue of $129.3 million, an increase of 18.8% compared to the same period last year and represents the eighth consecutive quarter of record revenue in this business. Commissions & fee revenue improved by 24.3% year-over-year to $105.8 million. Net income before taxes excluding significant items(1) reached a new record of $30.4 million in Q2/26, up 20.7% year-over-year. For the six months ended September 30, 2025, revenue increased by 17.9% to $255.0 million, and net income before taxes excluding significant items(1) increased 25.4% year-over-year to $60.2 million, representing new records for this measurement period. Normalized EBITDA(1)(2), a commonly used operating metric for this business, was £22.4 million for the three months ended September 30, 2025 and £43.5 million for the first six months of fiscal 2026, increases of 23.7% and 15.9% compared to the same periods in the prior year.
Canaccord Genuity Wealth Management (North America) generated record quarterly revenue of $111.9 million, a year-over-year increase of 27.2%. mainly driven by higher commissions & fees and investment banking revenue, which increased by 26.1% and 205.6% respectively compared to the same period of the prior year. Excluding significant items(1), net income before taxes was $18.5 million in Q2/26, an increase of 53.5% compared to Q2/25. For the six months ended September 30, 2025, revenue increased by 15.7% to $206.0 million, and net income before taxes excluding significant items(1) was $27.7 million, an increase of 30.0% year-over-year. EBITDA(1)(2) in this business was $24.9 million for the three months ended September 30, 2025 and $40.4 million for the first six months of fiscal 2026, increases of 41.5% and 17.7% respectively.
Wealth management operations in Australia generated a new record of $28.2 million in fiscal second quarter revenue, an increase of 43.0% compared to the second quarter of last year. Commissions & fees revenue increased by 23.0% year-over-year to $22.5 million to a new record and investment banking revenue increased by 355.4% to $5.5 million. Excluding significant items(1), net income before taxes in this business amounted to $3.2 million in Q2/26, up from $0.9 million in Q2/25. For the six months ended September 30, 2025, revenue increased by 34.4% to $51.3 million, and net income before taxes excluding significant items(1) increased 132.5% year-over-year to of $5.1 million.
Total client assets in the Company's global wealth management division at the end of the second fiscal quarter amounted an increased by $23.1 billion or 21.0% from Q2/25 to a record $133.6 billion.
Client assets(1) in the UK & Crown Dependencies reached a new record of $74.0 billion (£39.5 billion) as at September 30, 2025, a year-over-year increase of 17.6% (an increase of 13.6% in local currency) primarily attributable to net new assets from acquisitions, market growth, and foreign exchange movement. On a sequential basis, client assets(1) increased by 3.4% from $71.6 billion (£38.3 billion) from the previous quarter.
Client assets(1) in North America reached a new record of $49.4 billion as at September 30, 2025, an increase of 23.7% from $39.9 billion from September 30, 2024 and an increase of 10.2% from June 30, 2025. The year-over-year increase was attributable to increases in market values, recruitment activity, and positive net flows.
Client assets(1) in Australia reached a new record of $10.1 billion (AUD 11.0 billion) as at September 30, 2025, an increase of 34.9% from the second quarter of fiscal 2025 and an increase of 13.8% from $8.9 billion (AUD 10.0 billion) at June 30, 2025. In addition, client assets(1) totalling $15.7 billion (AUD 17.0 billion) are also held on record in less active and transactional accounts through our Australian platform.
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1 See Non-IFRS Measures on page 6
2 The Company's method of computation for this metric may differ from the methods used by other companies
Canaccord Genuity Capital Markets
On a consolidated basis, Canaccord Genuity Capital Markets earned revenue of $252.7 million for the second fiscal quarter, a year-over-year increase of 25.1%, primarily due to stronger contributions from investment banking activities, in addition to higher principal trading and commissions & fees revenues. For the six months ended September 30, 2025, revenue increased by 11.1% to $452.8 million, reflecting increases in investment banking, principal trading and commission & fees revenues.
Investment banking revenue of $90.6 million improved by 45.2% compared to Q1/26 and increased by 75.8% compared to Q2/25. The increase was largely driven by our Australian operations, which contributed $50.5 million for Q2/26, a year-over-year increase of 192.9% and the second highest quarterly investment banking revenue on record for this business. Investment banking revenue in our Canadian and US ...
