Binah Capital Group, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. Total revenue for the third quarter was $42.2 million, a decrease of 1.5% from $42.9 million in Q3 2023. For the nine-month period, total revenue fell to $124.3 million, down 1.9% from $126.7 million in the same period last year. Revenue from contracts with customers showed a slight increase of 0.3% in Q3 2024, reaching $41.0 million, while for the nine months, it rose to $121.1 million, up from $120.4 million.

The company experienced a significant decline in profitability, reporting a net loss of $(1.2) million for Q3 2024, compared to a net income of $0.2 million in Q3 2023. For the nine-month period, the net loss was $(3.5) million, a stark contrast to the net income of $1.4 million in the same period of 2023. This downturn in profitability was attributed to increased expenses, which totaled $42.8 million in Q3 2024, slightly down from $42.9 million in the prior year, and $126.9 million for the nine months, up from $124.9 million.

Key revenue components included a 14.7% increase in advisory fees for Q3 2024, totaling $6.2 million, and an 11.7% increase for the nine months, reaching $18.3 million. However, sales-based commission revenue saw a decline of 13.2% in Q3, totaling $16.4 million, and a 14.5% decrease for the nine months, amounting to $48.1 million.

Strategically, Binah Capital completed a reverse recapitalization with Kingswood Acquisition Corp on March 15, 2024, which has been accounted for as a reverse acquisition. This merger has positioned Binah as a consolidator of retail wealth management businesses, with total advisory and brokerage assets increasing to $26.9 billion as of September 30, 2024, up from $22.8 billion a year earlier.

The company’s total assets as of September 30, 2024, were $66.9 million, a slight decrease from $67.4 million at the end of 2023. Notably, total stockholders' equity increased significantly to $17.5 million from $5.1 million at the end of the previous year, reflecting the impact of the merger and capital raises. The company also reported a decrease in notes payable and promissory notes to affiliates, indicating improved financial management post-merger.

Overall, Binah Capital's financial results reflect challenges in revenue generation and profitability, alongside strategic developments aimed at enhancing its market position in the wealth management sector.