CANACCORD GENUITY GROUP INC. REPORTS SECOND QUARTER FISCAL 2026 RESULTS

Executive Summary

• Canaccord Genuity Group Inc. reported its second fiscal quarter and six-month results for the period ended September 30, 2025, highlighting strong top-line growth driven by record wealth management performance and increased corporate financing activity.
• On an adjusted basis (excluding significant items), the company reported diluted earnings per share of $0.27 for Q2, a 35.0% increase year-over-year, with total revenue reaching $530.4 million, up 24.0% from the prior year.
• The reported IFRS results were significantly impacted by a $110.0 million non-cash goodwill impairment charge in the US capital markets business and an increased provision of $76.6 million (US$55.0 million) for US regulatory matters, resulting in an IFRS net loss of $186.8 million for the quarter.

Key Details

• Adjusted Financial Performance (Q2):
  • Revenue: $530.4 million (up 24.0% YoY).
  • Net Income: $44.9 million (up 41.3% YoY).
  • Diluted EPS: $0.27 (up 35.0% YoY).
  • Net Income Before Taxes: $59.8 million (up 41.4% YoY).
• Adjusted Financial Performance (Six Months YTD):
  • Revenue: $978.9 million (up 14.3% YoY).
  • Net Income: $71.1 million (up 24.2% YoY).
  • Diluted EPS: $0.41 (up 24.2% YoY).
  • Net Income Before Taxes: $93.2 million (up 20.8% YoY).
• IFRS Financial Performance (Q2):
  • Revenue: $535.8 million (up 25.0% YoY).
  • Net Loss Before Taxes: $158.5 million (compared to pre-tax income of $16.9 million in Q2/25).
  • Diluted Loss Per Share: $2.04 (compared to diluted loss of $0.05 in Q2/25).
• Segment Performance (Wealth Management):
  • Global Wealth Management Revenue: $269.4 million (record quarterly revenue, up 24.4% YoY).
  • Global Wealth Management Net Income Before Taxes (Adjusted): $52.1 million (up 36.4% YoY).
  • Total Client Assets: Reached a record $133.6 billion (up 21.0% YoY).
    • UK & Crown Dependencies: $74.0 billion (up 17.6% YoY).
    • North America: $49.4 billion (up 23.7% YoY).
    • Australia: $10.1 billion (up 34.9% YoY).
• Segment Performance (Capital Markets):
  • Global Capital Markets Revenue: $252.7 million (up 25.1% YoY).
  • Investment Banking Revenue: $90.6 million (up 75.8% YoY), driven by Australian operations ($50.5 million, up 192.9% YoY).
  • Advisory Revenue: $79.4 million (up 62.4% from Q1/26).
  • Trading Revenue: $30.7 million (up 11.5% YoY).
  • Commissions & Fees Revenue: $42.3 million (up 22.2% YoY).
  • Capital Markets Net Income (Adjusted): $25.5 million (up 71.0% YoY).
• Significant Items & Impairments:
  • Goodwill Impairment: $110.0 million charge recorded in the US capital markets business due to reduced business activity and market headwinds.
  • Regulatory Provision: Increased by US$55.0 million (C$76.6 million) to a total of US$75.0 million (C$104.4 million) for expected US regulatory enforcement resolutions.
  • Deferred Tax Asset Impairment: $16.0 million impairment in US capital markets excluded from adjusted measures.
• Corporate Developments:
  • Acquired all equity interests in Wilsons Advisory (completed October 1, 2025).
  • Completed sale of U.S. wholesale market making business (November 7, 2025).
  • Announced intention to acquire CRC-IB (subject to definitive agreement and regulatory approvals).
  • Appointed John Albright as Independent Director (September 22, 2025).
• Dividends:
  • Common Share Dividend: $0.085 per share, payable December 10, 2025.
  • Series A Preferred Share Dividend: $0.25175 per share, payable December 31, 2025.
  • Series C Preferred Share Dividend: $0.42731 per share, payable December 31, 2025.
• Balance Sheet Highlights (Sept 30, 2025):
  • Cash and Cash Equivalents: $1,314.5 million.
  • Total Assets: $7,356.4 million.
  • Total Shareholders' Equity: $690.9 million.

Notable Quotes

• "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. "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."