An independent investment bank that advises companies and investors on mergers, acquisitions, restructuring, and capital markets across industries from healthcare to energy. It was founded in 2006 by veteran bankers Joseph Perella and Peter Weinberg, whose names were connected long before they partnered: Perella had attended school on a scholarship established by Weinberg's grandfather.
Perella Weinberg returned to operating profitability in Q2 as revenue edged up 1% to $156.5M.
Perella Weinberg Partners returned to an after a loss last quarter. rose 1% to $156.5 million, driven by higher M&A fee events, and operating income was $5.1 million as a tax benefit and lower non-compensation costs offset a rise in compensation expenses. The firm remains thinly profitable and is burning cash, with $115.8 million on hand and the unresolved Ducera litigation still hanging over it.
Key takeaways
rose 1% to $156.5 million, as higher M&A advisory fee events were largely offset by lower financing and capital solutions activity.
was $5.1 million, a swing from the $12.9 million loss in the prior quarter, as a 22% sequential drop in non-compensation expenses and a tax benefit more than offset a 7% increase in compensation costs.
Total compensation and benefits rose 7% to $115.9 million, driven by higher non-bonus base compensation from new hires and Business Realignment costs that included separation benefits and accelerated equity .
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 1% to $156.5M on higher M&A activity; six-month revenue fell 17% to $305.4M on lower average fees and financing activity.
⌄
Q2 increased 1% to $156.5M, driven by higher M&A fee events, partially offset by lower financing and capital solutions activity.
Six-month declined 17% to $305.4M, reflecting a lower average fee per client and decreased financing and capital solutions activity, partially offset by increased M&A.
Non-compensation expenses fell 13% to $35.5 million, primarily due to litigation insurance recoveries that lowered professional fees, reduced bad debt expense, and sublease income.
The swung to a benefit of (4.1)% in the quarter, contributing to of $5.3 million compared to $2.7 million a year ago.
Cash and equivalents fell to $115.8 million from $146.2 million a year ago, with no borrowings on the $50 million , as for the first six months was an outflow of $60.9 million driven by prior-year bonus payments.
What changed
The returned to positive territory at 3.2% after falling to -8.7% in Q1 2026, but remains below the 5.8% reported in Q2 2025, as the recovery was modest and compensation costs rose.
The number of fee-paying clients, which fell to 62 in Q1 2026 from 74 a year earlier, was not disclosed this quarter, leaving the trajectory of client activity unclear.
Cash and equivalents rebounded to $115.8 million from $77.7 million at the end of Q1 2026, but remain well below the $250–330 million range seen in prior years, and the firm has not drawn on its $50 million .
The Ducera litigation, where former partners seek at least $60 million in damages, remains unresolved with no court decision issued, a risk that has been flagged in every filing since FY2022.
What to watch
Whether the court issues a decision in the Ducera litigation and if a damages award materializes, which could materially affect the firm's liquidity given its $115.8 million cash balance.
Whether can sustain above the $150 million level in the seasonally slower third quarter, or if the 17% decline in six-month revenue signals a broader slowdown beyond normal seasonal patterns.
Whether the can be sustained above breakeven as equity-based compensation from new hires and the Devon Park acquisition continues to flow through compensation costs.
Whether the firm rebuilds its cash position toward the $250 million level through operating inflows, or if further share repurchases and cash-settled unit exchanges keep liquidity constrained.
Q2 total compensation rose 7% to $115.9M due to a higher non-bonus base from new hires and Business Realignment costs, including separation benefits and accelerated equity .
Six-month non-compensation expenses fell 15% to $75.3M, primarily from lower professional fees (litigation insurance recoveries), reduced bad debt expense, and sublease income, partially offset by higher technology and intangible costs.
Cash and equivalents stood at $115.8M at quarter-end with no borrowings on the $50M ; operating cash outflow was $60.9M for the six months, driven by prior-year bonus payments.
The swung to a benefit of (4.1)% in Q2, and the six-month period included an $8.7M tax benefit from share-price appreciation on vested .
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and qualitative disclosures about market risk are set forth above in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Credit Risk”.
⌄
Quantitative and qualitative disclosures about market risk are set forth above in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Credit Risk”.
We are now, and from time to time may in the future be, named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. We may also become involved in other judicial, regulatory and arbitration proceedings concerning matters arising i…
⌄
We are now, and from time to time may in the future be, named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. We may also become involved in other judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of our businesses. Some of these matters may involve claims of substantial amounts.
For details on the current legal proceedings, refer to Note 16—Commitments and Contingencies in the notes to condensed consolidated financial statements included elsewhere in this Form 10-Q.
There have been no material changes or updates to our risk factors that were previously disclosed in “Part I. Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 27, 2026.
⌄
There have been no material changes or updates to our risk factors that were previously disclosed in “Part I. Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 27, 2026.