Raymond James Financial Stock Earnings Reports

Key points for investors: Raymond James reported its 150th consecutive quarter of profitability. Quarterly net revenues were $3.4 billion (up 5% year-over-year) and pretax income was $563 million (down 13% year-over-year), with the quarter including a $58 million reserve increase to settle a long-running legal matter related to bond underwriting. For the first nine months of fiscal 2025 the firm reported record net revenues ($10.3 billion, +10% YTD) and record pretax income ($1.98 billion, +5% YTD). Private Client Group (PCG) AUA reached a record $1.57 trillion (up 11% YoY); quarterly domestic net new assets were $11.7 billion (3.4% annualized); over the past 12 months the firm recruited >$60 billion of client assets across channels. Asset Management saw strong net inflows (~$2.1 billion into managed programs) and record segment pretax income; Capital Markets revenues rose YoY but the segment posted a quarterly pretax loss (impacted by the legal reserve and softer M&A activity sequentially). Bank loans hit a record $49.8 billion (securities-based lending and residential mortgage growth) with strong credit metrics and a bank NIM of 2.74%. Expenses: total compensation ratio 64.8% (adjusted 64.5%, below their 65% target); noncompensation costs rose seasonally and to support growth initiatives. Capital deployment: repurchased $451 million of stock in the quarter and returned over $1 billion YTD via buybacks and dividends; capital ratios and liquidity remain strong (Tier 1 leverage 13.1%, corporate cash ~ $2.3B). Near-term outlook/guideposts: expect Q4 asset management/administrative fees to be ~9% higher than Q3 (driven by higher PCG fee-based assets and one extra business day); management expects the next two quarters to be better for investment banking versus the prior two and remains optimistic about recruiting momentum and loan growth. Management continues to invest in adviser tools, private wealth capabilities and AI-driven technology, while remaining disciplined on M&A (cultural, strategic fit and valuation criteria).