Financial Overview - Full Year

• Revenues of $878 Million, Up 35% From a Year Ago
• Adjusted Pre-Tax Income of $137 Million, GAAP Pre-Tax Loss of $(68) Million
• Adjusted EPS of $0.96; GAAP Diluted EPS of $(1.22)

• Revenues of $226 Million, Up 6% From a Year Ago
• Adjusted Pre-Tax Income of $40 Million, GAAP Pre-Tax Income of $28 Million
• Adjusted EPS of $0.26; GAAP Diluted EPS of $0.30

• Added Five Partners and Eleven Managing Directors in 2024

• Strong Balance Sheet with $407 Million of Cash and Short-Term Investments and No Debt
• Retired Approximately 14.5 Million Shares and Share Equivalents through Purchase, Exchange and Net Settlement in 2024
• Returned $282 Million in Aggregate to Equity Holders in 2024
• Declared Quarterly Dividend of $0.07 Per Share

NEW YORK, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Perella Weinberg Partners (the "Firm” or "PWP”) (NASDAQ:PWP) today reported financial results for the full year and fourth quarter ended December 31, 2024.

Revenues

For the twelve months ended December 31, 2024, revenues were $878.0 million, an increase of 35% from $648.7 million for the twelve months ended December 31, 2023. For the fourth quarter of 2024, revenues were $225.7 million, an increase of 6% from $212.7 million for the fourth quarter of 2023. The higher revenues in both current year periods were driven by larger transactions in size and number across the business. For the full year, revenues attributable to mergers and acquisition and financing and capital solutions activity were both up period-over-period. For the fourth quarter, revenues attributable to mergers and acquisition activity were lower due to a single large fee in the prior year period.

Expenses

GAAP total compensation and benefits were $784.2 million for the twelve months ended December 31, 2024, compared to $608.9 million for the prior year period. Current year compensation expense includes the second quarter impact of the one-time accelerated vesting of certain partnership unit awards (the "Vesting Acceleration”). Adjusted total compensation and benefits were $589.7 million for the twelve months ended December 31, 2024, compared to $454.6 million for the same period a year ago. The increase in total compensation and benefits results from a larger bonus accrual on an absolute dollar basis associated with higher revenues partially offset by a lower compensation margin.

GAAP non-compensation expenses were $172.3 million for the twelve months ended December 31, 2024, compared to $154.8 million for the prior year period. Adjusted non-compensation expenses were $162.4 million for the twelve months ended December 31, 2024, compared to $144.0 million for the same period a year ago. The increase in non-compensation expenses was largely driven by an increase in professional fees including consulting fees tied to revenue contribution, higher depreciation expense tied to office renovations and relocations, and bad debt write-offs, partially offset by lower rent and occupancy costs.

GAAP total compensation and benefits were $156.1 million for the fourth quarter of 2024, compared to $215.1 million for the fourth quarter of 2023. Adjusted total compensation and benefits were $146.0 million for the fourth quarter of 2024, compared to $162.7 million for the same period a year ago. The decrease in total compensation and benefits was the result of a lower compensation margin. On a GAAP basis, the decrease was also the result of business realignment costs in the fourth quarter of 2023 which did not recur in the 2024 period and a reduction in equity amortization expense related to the one-time Vesting Acceleration of partnership units.

GAAP non-compensation expenses were $48.2 million for the fourth quarter of 2024, compared to $41.5 million for the fourth quarter of 2023. Adjusted non-compensation expenses were $46.3 million for the fourth quarter of 2024, compared to $38.9 million for the same period a year ago. The increase in non-compensation expenses was largely driven by an increase in professional fees including consulting fees tied to revenue contribution, partially offset by a decrease in legal spend, and an increase in general, administrative and other expenses.

Provision for Income Taxes

Perella Weinberg Partners currently owns 68.3% of the operating partnership ("PWP OpCo”) and is subject to U.S. federal and state corporate income tax on its allocable share of earnings. Income earned by the operating partnership is subject to certain state, local, and foreign income taxes.

For purposes of calculating adjusted if-converted net income, we have presented our results as if all partnership units had been converted to shares of Class A common stock, and as if all of our adjusted results for the period were subject to U.S. corporate income tax. For the twelve months ended December 31, 2024, the effective tax rate for adjusted if-converted net income was 30%. This tax rate includes a $4.0 million benefit from the vesting of restricted stock units at a share price higher than the grant price.

Balance Sheet and Capital Management

As of December 31, 2024, PWP had $407.4 million of cash and short-term investments in U.S. Treasury securities. The Firm has no outstanding indebtedness and has an undrawn revolving credit facility.

During the twelve months ended December 31, 2024, PWP returned $281.9 million in aggregate to our equity holders through: (i) the settlement of 6,149,211 PWP OpCo units in connection with the one-time Vesting Acceleration at a price of $14.07 per unit and the net settlement of 4,128,086 share equivalents at an average price per share of $17.05; (ii) the settlement of exchanges of 3,204,979 PWP OpCo units for cash at $20.98 per unit and the repurchase of 1,000,000 shares pursuant to a contractual repurchase right at $15.00 per share; (iii) the payment of $22.5 million in distributions to limited partners; and (iv) the payment of aggregate dividends of $20.3 million to Class A common stockholders. Certain tax withholding amounts related to the above activity were accrued and unpaid as of December 31, 2024 and are expected to be paid within one year.

At December 31, 2024, there were 59.2 million shares of Class A common stock and 27.5 million partnership units outstanding.

The Board of Directors has declared a quarterly dividend of $0.07 per share of Class A common stock. The dividend will be paid on March 10, 2025 to Class A common stockholders of record on February 18, 2025.

Conference Call and Webcast

Management will host a webcast and conference call on Friday, February 7, 2025 at 9:00 am ET to discuss Perella Weinberg's financial results for the full year and fourth quarter ended December 31, 2024.

A webcast of the conference call will be made available in the Investors section of Perella Weinberg's website at https://investors.pwpartners.com/.

The conference call can also be accessed by the following dial-in information:

• Domestic: (800) 267-6316
• International: (203) 518-9783
• Conference ID: PWPQ424

A replay of the call will also be available two hours after the live call through February 14, 2025. To access the replay, dial (800) 839-5689 (Domestic) or (402) 220-2570 (International). The replay can also be accessed on the Investors section of the Company's website at https://investors.pwpartners.com/.

For those who listen to the rebroadcast of the call, we remind you that the remarks made are as of February 7, 2025, and have not been updated subsequent to the initial earnings call.

About Perella Weinberg

Perella Weinberg is a leading global independent advisory firm, providing strategic and financial advice to a broad client base, including corporations, financial sponsors, governments, and sovereign wealth funds. The Firm offers a wide range of advisory services to clients in some of the most active industry sectors and global markets. With approximately 700 employees, Perella Weinberg currently maintains offices in New York, London, Houston, San Francisco, Paris, Los Angeles, Chicago, Calgary, Denver, and Munich. The financial information of Perella Weinberg herein refers to the business operations of PWP Holdings LP and Subsidiaries.

Contacts

For Perella Weinberg Investor Relations: investors@pwpartners.com

For Perella Weinberg Media: media@pwpartners.com

Non-GAAP Financial Measures

In addition to financial measures presented in accordance with GAAP, we monitor certain non-GAAP financial measures to manage our business, make planning decisions, evaluate our performance and allocate resources. We believe that these non-GAAP financial measures are key financial indicators of our business performance over the long term and provide useful information regarding whether cash provided by operating activities is sufficient to maintain and grow our business. We believe that the methodology for determining these non-GAAP financial measures can provide useful supplemental information to help investors better understand the economics of our platform.

These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, the analysis of other GAAP financial measures. These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently. Additionally, these non-GAAP financial measures are not measurements of financial performance or liquidity under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto included elsewhere in this press release.

Management compensates for the inherent limitations associated with using these non-GAAP financial measures through disclosure of such limitations, presentation of our financial statements in accordance with GAAP and reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures. See "Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.

Cautionary Statement Regarding Forward Looking Statements

Certain statements made in this press release, and oral statements made from time to time by representatives of PWP are "forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding the expectations regarding the combined business are "forward looking statements.” In addition, words such as "estimates,” "projected,” "expects,” "estimated,” "anticipates,” "forecasts,” "plans,” "intends,” "believes,” "seeks,” "may,” "will,” "would,” "future,” "propose,” "target,” "goal,” "objective,” "outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the parties, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, among others, that may affect actual results or outcomes include (but are not limited to): global economic, business and market conditions; the Company's dependence on and ability to retain employees; the Company's ability to successfully identify, recruit and develop talent; conditions impacting the corporate advisory industry; the Firm's dependence on its fee-paying clients and fluctuating revenues from its non-exclusive, engagement-by-engagement business model; the high volatility of the Company's revenues as a result of its reliance on advisory fees that are largely contingent on the completion of events which may be out of its control; the Company's ability to appropriately manage conflicts of interest and tax and other regulatory factors relevant to the Company's business, including actual, potential or perceived conflicts of interest and other factors that may damage its business and reputation; the Company's successful formulation and execution of its business and growth strategies; substantial litigation risks in the financial services industry; cybersecurity and other operational risks; assumptions relating to the Company's operations, financial results, financial condition, business prospects, growth strategy and liquidity; extensive regulation of the corporate advisory industry and U.S. and foreign regulatory developments relating to, among other things, financial institutions and markets, government oversight, fiscal and tax policy and laws (including the treatment of carried interest); and other risks and uncertainties described under "Part I-Item 1A. Risk Factors” in our Annual Report on Form 10-K.

The forward-looking statements in this press release and oral statements made from time to time by representatives of PWP are based on current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. These risks and uncertainties include, but are not limited to, those factors described in the section entitled "Risk Factors” in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC”) on February 23, 2024 and the other documents filed by the Firm from time to time with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.