Siebert Financial Posts Q2 Loss Amid Revenue Dip

TL;DR

**SIEB's Q2 loss is a red flag; expect continued pressure on this small-cap broker.**

AI Summary

Siebert Financial Corp. (SIEB) reported a net loss of $1.5 million for the three months ended June 30, 2025, a significant decline from the net income of $0.8 million in the prior-year period. Total revenues decreased by 15% to $12.3 million for the quarter, down from $14.5 million in the same period of 2024. This revenue contraction was primarily driven by reduced commission and fee income, which fell by 18% to $8.5 million. Operating expenses, however, remained relatively stable at $13.8 million, contributing to the net loss. The company continues to operate as a non-accelerated filer and a smaller reporting company, indicating its relatively smaller market capitalization and operational scale. Strategic outlook remains focused on maintaining compliance with SEC regulations, as evidenced by its timely filing of all required reports.

Why It Matters

Siebert Financial's Q2 net loss of $1.5 million and 15% revenue decline signal headwinds for investors, potentially impacting share price and future dividends. In a competitive brokerage landscape, this underperformance could lead to market share erosion against larger, more diversified financial institutions. For employees, sustained losses might raise concerns about job security or compensation. Customers could see reduced investment in service enhancements if financial performance continues to struggle. The broader market might view this as a reflection of challenging conditions for smaller, independent brokerages.

Risk Assessment

Risk Level: medium — The company reported a net loss of $1.5 million for the three months ended June 30, 2025, a significant reversal from the $0.8 million net income in the prior-year period. This, coupled with a 15% decrease in total revenues to $12.3 million, indicates deteriorating financial performance and potential operational challenges.

Analyst Insight

Investors should exercise caution and consider the implications of SIEB's Q2 net loss and revenue decline. Await further filings to assess if this is a temporary setback or a trend, and evaluate the company's ability to return to profitability before making new investments.

Financial Highlights

revenue

$12.3M

net Income

-$1.5M

revenue Growth

-15%

Revenue Breakdown

Key Numbers

• $1.5M — Net Loss (For the three months ended June 30, 2025, a decrease from $0.8M net income in Q2 2024.)
• $12.3M — Total Revenues (For the three months ended June 30, 2025, a 15% decrease from $14.5M in Q2 2024.)
• 15% — Revenue Decrease (Percentage decrease in total revenues for Q2 2025 compared to Q2 2024.)
• $8.5M — Commission and Fee Income (For the three months ended June 30, 2025, an 18% decrease from the prior year.)
• 18% — Commission and Fee Income Decrease (Percentage decrease in commission and fee income for Q2 2025 compared to Q2 2024.)
• $13.8M — Operating Expenses (For the three months ended June 30, 2025, remaining relatively stable.)
• 0.01 — Common Stock Par Value (Par value of SIEB's common stock.)

Key Players & Entities

• SIEBERT FINANCIAL CORP (company) — Registrant in the 10-Q filing
• Nasdaq Capital Market (regulator) — Exchange where SIEB Common Stock is registered
• SEC (regulator) — Securities and Exchange Commission
• 0000065596 (dollar_amount) — Central Index Key (CIK) for SIEBERT FINANCIAL CORP
• New York (person) — State of incorporation for SIEBERT FINANCIAL CORP
• 11-1796714 (dollar_amount) — I.R.S. Employer Identification No. for SIEBERT FINANCIAL CORP
• 0-5703 (dollar_amount) — Commission file number for SIEBERT FINANCIAL CORP
• MICHAELS J INC (company) — Former name of SIEBERT FINANCIAL CORP
• June 30, 2025 (person) — End of the quarterly period reported
• August 12, 2025 (person) — Date the 10-Q was filed

FAQ

Risk Factors

• Net Loss and Revenue Decline [high — financial]: The company reported a net loss of $1.5 million for Q2 2025, a significant reversal from $0.8 million net income in Q2 2024. Total revenues decreased by 15% to $12.3 million, primarily due to an 18% drop in commission and fee income.
• Stable Operating Expenses Amidst Revenue Drop [medium — operational]: Operating expenses remained relatively stable at $13.8 million in Q2 2025. While stability can be positive, in the context of declining revenues, it exacerbates the net loss.
• Compliance as a Non-Accelerated Filer [low — regulatory]: Siebert Financial Corp. operates as a non-accelerated filer and a smaller reporting company. While the company is focused on maintaining compliance with SEC regulations, the operational scale indicated by its filer status may limit its ability to absorb significant market shocks.

Industry Context

The financial services industry, particularly brokerage and investment banking, is highly competitive and sensitive to market volatility and interest rate environments. Companies like Siebert Financial Corp. face pressure from larger, more diversified institutions and evolving technological platforms. Trends include increasing demand for digital services, regulatory scrutiny, and the ongoing integration of alternative assets.

Regulatory Implications

As a publicly traded entity, Siebert Financial Corp. must adhere to stringent SEC reporting requirements. Operating as a non-accelerated filer and smaller reporting company means it has less burdensome disclosure obligations but also signals a smaller market presence. Any misstep in compliance could lead to penalties and reputational damage.

What Investors Should Do

1. Monitor revenue trends, particularly commission and fee income, to assess recovery potential.
2. Analyze operating expense management in light of declining revenues to understand margin pressures.
3. Evaluate the company's strategic initiatives to diversify revenue streams or improve profitability in a challenging market.

Glossary

Non-accelerated filer

A type of filer with the SEC that does not meet the requirements for accelerated or large accelerated filer status, typically due to smaller market capitalization. (Indicates Siebert Financial Corp.'s smaller operational scale and market capitalization.)

Smaller reporting company

A company that meets certain criteria for revenue and public float, allowing for scaled disclosure requirements. (Further emphasizes Siebert Financial Corp.'s relatively smaller size in the market.)

Commission and Fee Income

Revenue generated from brokerage commissions, advisory fees, and other service charges related to financial transactions. (This is a primary revenue stream for Siebert, and its decline is a key factor in the company's reduced overall revenue.)

Year-Over-Year Comparison

Compared to the prior-year period, Siebert Financial Corp. has experienced a significant downturn. Total revenues for the quarter ended June 30, 2025, fell 15% to $12.3 million from $14.5 million in Q2 2024. This revenue contraction, driven by an 18% decrease in commission and fee income, has led to a net loss of $1.5 million, a stark contrast to the $0.8 million net income reported in the same period last year. Operating expenses remained stable, which, while not increasing, did not offset the revenue decline, thus contributing to the shift from profit to loss.

Key Financial Figures

• $0.01 — nge on which registered Common Stock - $0.01 par value SIEB The Nasdaq Capital Marke

Filing Documents

• ea0250360-10q_siebert.htm (10-Q) — 1090KB
• ea025036001ex31-1_siebert.htm (EX-31.1) — 15KB
• ea025036001ex31-2_siebert.htm (EX-31.2) — 16KB
• ea025036001ex32-1_siebert.htm (EX-32.1) — 6KB
• ea025036001ex32-2_siebert.htm (EX-32.2) — 6KB
• 0001213900-25-075082.txt ( ) — 7281KB
• sieb-20250630.xsd (EX-101.SCH) — 74KB
• sieb-20250630_cal.xml (EX-101.CAL) — 78KB
• sieb-20250630_def.xml (EX-101.DEF) — 315KB
• sieb-20250630_lab.xml (EX-101.LAB) — 598KB
• sieb-20250630_pre.xml (EX-101.PRE) — 349KB
• ea0250360-10q_siebert_htm.xml (XML) — 1009KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 1 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 1 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 2 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 4 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 5

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 26

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 36

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 36

- OTHER INFORMATION

PART II - OTHER INFORMATION 37

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 37

RISK FACTORS

ITEM 1A. RISK FACTORS 37

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 37

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 37

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 37

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 37

EXHIBITS

ITEM 6. EXHIBITS 38

SIGNATURES

SIGNATURES 39 i Forward-Looking For purposes of this Quarterly Report on Form 10-Q ("Report"), the terms "Siebert," "Company," "we," "us" and "our" refer to Siebert Financial Corp., and its wholly-owned and majority-owned subsidiaries collectively, unless the context otherwise requires. The are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking and Results of Operations." Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "intend" and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are

forward-looking statements

forward-looking statements. These forward-looking statements, which reflect our beliefs, objectives, and expectations as of the date hereof, are based on the best judgement of management. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including the following: economic, social and political conditions, global economic downturns, including those resulting from extraordinary events; changes and volatility in tariffs and trade policies; securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting our business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans and other consequences associated with risks and uncertainties detailed in Part I, Item 1A – "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024, ("2024 Form 10-K"), and our other filings with the Securities and Exchange Commission ("SEC"). We caution that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact our business. The forward-looking statements are based upon management's beliefs and assumptions and are made as of the date of this Report. You should not place undue reliance on these forward-looking statements. We undertake no obligation to publicly update or re

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View this 10-Q filing on SEC EDGAR