SIEBERT FINANCIAL CORP
For the period ended Jun 30, 2025. Filed Aug 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 12, 2025
SIEB$1.78-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001213900-25-042693
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001213900-25-075082
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 129 current paragraphs.
60 unchanged; 35 reworded; 26 added; 4 removed; 1 previous and 8 current paragraphs rearranged.
Tables are not compared: 16 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
There was significant volatility in the price of the shares, and in the three months ended March 31, 2025, we recorded an unrealized gain of approximately $9.2 million as the per share price closed at $85.31 on March 31, 2025. In June 2025, after the lifting of contractual sale restrictions, we sold the majority of our Investment in Equity Security for an average price of $19.00 per share and recognized a total gain of $2.4 million for the six months ended June 30, 2025. However, we recognized a total realized and unrealized loss of $6.8 million for the three months ended June 30, 2025, which drove our operating loss for the current quarter.
Current report
Following the IPO, we value the remaining shares of the Investment in Equity Security at its public trading price. We have recorded an unrealized gain of $0.1 million in relation to our remaining shares in the Investment in Equity Security for the three months ended June 30, 2025. The realized and unrealized and gain (loss) associated with the Investment in Equity Security is recorded in the line item “Principal transactions and proprietary trading” in our statement of operations, the detail of which is displayed below.
Current report
Acquisition of BMLG Assets
Current report
In the second quarter of 2025, we acquired certain assets from BMLG related to music masters, including associated copyrights and artwork and serves an expansion upon our acquisition of GM. This acquisition gives Siebert ownership of recorded masters from artists such as Daughtry, Badflower, Sammy Hagar, Olive Vox, and Ryan Perdz, among others. The total cost of the acquisition was $441,000, which includes cash consideration of $337,000 and direct transaction costs of $104,000.
Current report
Principal transactions and proprietary trading for the three months ended June 30, 2025 was negative $3,771,000 and decreased by $7,345,000 from the corresponding period in the prior year, primarily due to the realized and unrealized loss of $6,803,000 in our Investment in Equity Security, which is explained further in the section above titled “Investment in Equity Security.”
Current report
Depreciation and amortization expenses for the three months ended June 30, 2025 were $629,000 and increased by $293,000 from the corresponding period in the prior year, primarily due to an increase in amortization for the technology projects placed in service in the second quarter of 2025.
Current report
Revenue
Current report
Commissions and fees for the six months ended June 30, 2025 were $4,116,000 and decreased by $787,000 from the corresponding period in the prior year, primarily due to weaker market conditions.
Current report
Interest, marketing and distribution fees for the six months ended June 30, 2025 were $13,814,000 and decreased by $2,784,000 from the corresponding period in the prior year primarily due to a due to a decline in interest rates.
Current report
Market making for the six months ended June 30, 2025 was $1,049,000 and decreased by $60,000 from the corresponding period in the prior year.
Current report
Advisory fees for the six months ended June 30, 2025 were $1,539,000 and increased by $498,000 from the corresponding period in the prior year, primarily due to growth in platform assets.
Current report
Other income for the six months ended June 30, 2025 was 1,726,000 and decreased by $68,000 from the corresponding period in the prior year, primarily due to fees related to administrative services.
Current report
Operating Expenses
Current report
Clearing fees, including execution costs for the six months ended June 30, 2025 were $902,000 and increased by $236,000 from the corresponding period in the prior year, primarily due to primarily due to a reclassification of certain fees in 2025.
Current report
Other general and administrative expenses for the six months ended June 30, 2025 were $3,349,000 and increased by $1,250,000 from the corresponding period in the prior year primarily due to fees related to expansion into investment banking and servicing active trader customers.
Current report
Data processing expenses for the six months ended June 30, 2025 were $2,096,000 and increased by $613,000 from the corresponding period in the prior year, primarily due to expansion of technology infrastructure.
Current report
Rent and occupancy expenses for the six months ended June 30, 2025 were $909,000 and increased by $34,000 from the corresponding period in the prior year.
Current report
Professional fees for the six months ended June 30, 2025 were $2,810,000 and increased by $533,000 from the corresponding period in the prior year primarily due to the establishment of the Siebert advisory committee and expansion into new business lines.
Current report
Interest expense for the six months ended June 30, 2025 was 187,000 and increased by $76,000 from the corresponding period in the prior year related to an agreement with Kakaopay in 2024.
Current report
Advertising and promotion expense for the six months ended June 30, 2025 was $372,000 and increased by $275,000 from the corresponding period in the prior year, primarily due to an increase in marketing initiatives.
Current report
Shelf Registration Statement
Current report
On May 30, 2025, we filed a shelf registration statement on Form S-3 that was declared effective on June 9, 2025 by the SEC for the potential offering, issuance and sale by us of up to $100.0 million of our common stock, preferred stock, warrants to purchase our common stock and/or preferred stock, units consisting of all or some of these securities and subscription rights to purchase all or some of these securities. As noted below under “At the Market Offering,” we have utilized $50 million of the $100 million capacity under the shelf registration statement for our At the Market program.
Current report
At the Market Offering
Current report
On June 27, 2025, we entered into a Sales Agreement (“Sales Agreement”) with our subsidiary, Muriel Siebert & Co., LLC, and Ladenburg Thalmann & Co. Inc., as agents, under which we may offer and sell, through or to the agents, shares of our common stock having an aggregate offering price of up to $50.0 million, from time to time. For the three and six months ended June 30, 2025, we did not sell any shares pursuant to this Sales Agreement. Refer to Note 18 – Commitments, Contingencies and Other for additional detail.
Current report
Tax Legislation
Current report
On July 4, 2025, President Trump signed H.R. 1, the One Big Beautiful Bill Act (“OBBBA”), into law. In accordance with U.S. GAAP, specifically ASC 740 – Income Taxes, we will account for the tax effects of changes in tax law in the period of enactment which is in the third quarter of 2025. We are currently in the process of analyzing the tax impacts of the law change but we do not expect a material impact on our effective tax rate
Removed paragraphs (4)
Previous report
Siebert valued the restricted shares of the Investment in Equity Security using a Finnerty option-pricing model including a discount of approximately 40% which included the lack of marketability and other factors. Refer to Note 4 – Fair Value Measurements for additional details.
Previous report
For the three months ended March 31, 2025, Siebert recorded an unrealized gain of approximately $9.2 million in relation to the Investment in Equity Security. However, due to the volatility of the price of the shares, which has declined significantly since March 31, 2025, we are uncertain as to the total unrealized or realized gain or loss that will be recognized from the Investment in Equity Security. Solely for illustrative purposes, on May 7, 2025, the closing share price of the Investment in Equity Security fell to $25.24 per share, compared with $83.51 per share ($50.11 per share after the 40% discount) as of March 31, 2025. Had the Company sold its shares on May 7, 2025, the total gain would have been approximately $3.9 million, instead of the $9.2 million unrealized gain recognized during the three months ended March 31, 2025. Because the decline reflects conditions arising after March 31, 2025, no adjustment has been made to the accompanying financial statements. The potential change in the market value of the Investment in Equity Security may materially impact the results of future periods.
Previous report
The increase in realized and unrealized gain on primarily riskless principal transactions was primarily due to the Company’s Investment in Equity Security. The income related to this investment is included in the “Unrealized gain on investment in equity security” line in the securities table below. Refer to Note 4 – Fair Value Measurement for additional detail.
Previous report
Below is a summary of the change in the principal transactions and proprietary trading line item for the periods presented.
Reworded paragraphs (35)
Previous wording
In the first quarter of 2025, earnings per share were $0.22, compared to earnings per share of $0.09 in the first quarter of 2024. In the first quarter of 2025, our net revenues were $28.9 million and operating income before taxes was $10.5 million, compared to net revenues of $20.5 million and operating income before taxes of $5.1 million in the first quarter of 2024.
Current wording
In the second quarter of 2025, loss per share was $0.12, compared to earnings per share of $0.10 in the second quarter of 2024. In the second quarter of 2025, our revenues were $14.9 million and operating loss before taxes was $5.8 million, compared to revenues of $20.9 million and operating income before taxes of $5.6 million in the second quarter of 2024. A substantial portion of our operating loss for the three months ended June 30, 2025 is due to the realized and unrealized gain (loss) on our Investment in Equity Security described in the section below.
Previous wording
During the three months ended March 31, 2025, Siebert acquired the Investment in Equity Security in connection with a private placement from a private U.S company that subsequently completed an initial public offering. These shares are subject to resale restrictions until they are registered with the SEC or an exemption from such registration requirements becomes available. The date of the registration of such resale is uncertain as of the date of this Report.
Current wording
In the first quarter of 2025, we acquired the Investment in Equity Security in connection with a private placement from a private U.S company that subsequently completed an IPO. Following the IPO, these shares were subject to resale restrictions until they were registered with the SEC.
Previous wording
Some of these technology investments include the development of a Siebert mobile retail trading application, online platform for our retail customer base and corporate services clients, as well as upgrades to our technological and operational infrastructure to support these platforms and future growth. We believe that these ongoing investments in technology will be key in meeting the needs of our retail customers, correspondent clearing, corporate services as well as our expansion into new markets and demographics.
Current wording
At the end of 2023, we hired new technology personnel, changed our primary software development vendor, and made investments in technology development projects collectively termed as Siebert’s Retail Platform. Technology development projects such as the online platform for Siebert’s retail customer base and corporate service clients have been placed into service in the six months ended June 30, 2025 and projects are anticipated to go live by the end of 2025. We believe that these ongoing investments in technology will be key in meeting the needs of our retail customers, correspondent clearing, corporate services as well as our expansion into new markets and demographics.
Previous wording
Commissions and fees for the three months ended March 31, 2025 were $2,102,000 and decreased by $198,000 from the corresponding period in the prior year, primarily due to market conditions.
Current wording
Commissions and fees for the three months ended June 30, 2025 were $2,014,000 and decreased by $589,000 from the corresponding period in the prior year, primarily due to weaker market conditions.
Previous wording
Interest, marketing and distribution fees for the three months ended March 31, 2025 were $6,945,000 and decreased by $1,818,000 from the corresponding period in the prior year primarily due to a decline in interest rates and change in customer asset mix.
Current wording
Interest, marketing and distribution fees for the three months ended June 30, 2025 were $6,869,000 and decreased by $966,000 from the corresponding period in the prior year primarily due to a decline in interest rates.
Previous wording
Market making for the three months ended March 31, 2025 was $552,000 and decreased by $120,000 from the corresponding period in the prior year, primarily due to market conditions.
Current wording
Market making for the three months ended June 30, 2025 was $497,000 and increased by $60,000 from the corresponding period in the prior year.
Previous wording
Stock borrow / stock loan for the three months ended March 31, 2025 was $4,837,000 and increased by $739,000 from the corresponding period in the prior year, primarily due to growth in stock locate services and securities lending businesses.
Current wording
Stock borrow / stock loan for the three months ended June 30, 2025 was $7,522,000 and increased by $2,826,000 from the corresponding period in the prior year, primarily due to growth in stock locate services and securities lending businesses.
Previous wording
Advisory fees for the three months ended March 31, 2025 were $748,000 and increased by $258,000 from the corresponding period in the prior year, primarily due to growth in platform assets.
Current wording
Advisory fees for the three months ended June 30, 2025 were $791,000 and increased by $240,000 from the corresponding period in the prior year, primarily due to growth in platform assets.
Previous wording
Other income for the three months ended March 31, 2025 was 774,000 and increased by $147,000 from the corresponding period in the prior year, primarily due to fees related to administrative services.
Current wording
Other income for the three months ended June 30, 2025 was $952,000 and decreased by $215,000 from the corresponding period in the prior year, primarily due to fees related to administrative services.
Previous wording
Employee compensation and benefits for the three months ended March 31, 2025 were $11,992,000 and increased by $1,546,000 from the corresponding period in the prior year, primarily due toan increase in commission payouts and equity compensation, as well as additional personnel related to technology initiatives, and new business lines including our investment banking division.
Current wording
Employee compensation and benefits for the three months ended June 30, 2025 were $13,388,000 and increased by $3,081,000 from the corresponding period in the prior year, primarily due toan increase in equity compensation as well as additional personnel related to technology initiatives and expansion into investment banking and servicing active trader customers.
Previous wording
Clearing fees, including execution costs for the three months ended March 31, 2025 were $454,000 and increased by $26,000 from the corresponding period in the prior year.
Current wording
Clearing fees, including execution costs for the three months ended June 30, 2025 were $448,000 and increased by $210,000 from the corresponding period in the prior year, primarily due to a reclassification of certain fees in 2025.
Previous wording
Technology and communications expenses for the three months ended March 31, 2025 were $1,105,000 and increased by $229,000 from the corresponding period in the prior year, primarily due to an expansion of technological infrastructure.
Current wording
Technology and communications expenses for the three months ended June 30, 2025 were $1,045,000 and increased by $165,000 from the corresponding period in the prior year, primarily due to an expansion of technological infrastructure.
Previous wording
Other general and administrative expenses for the three months ended March 31, 2025 were $1,509,000 and increased by $480,000 from the corresponding period in the prior year primarily due to fees related to expansion into new businesses.
Current wording
Other general and administrative expenses for the three months ended June 30, 2025 were $1,840,000 and increased by $770,000 from the corresponding period in the prior year primarily due to fees related to expansion into investment banking and servicing active trader customers.
Previous wording
Data processing expenses for the three months ended March 31, 2025 were $949,000 and increased by $198,000 from the corresponding period in the prior year, primarily due to increased market activities.
Current wording
Data processing expenses for the three months ended June 30, 2025 were $1,147,000 and increased by $415,000 from the corresponding period in the prior year, primarily due to expansion of technology infrastructure.
Previous wording
Rent and occupancy expenses for the three months ended March 31, 2025 were $467,000 and decreased by $30,000 from the corresponding period in the prior year.
Current wording
Rent and occupancy expenses for the three months ended June 30, 2025 were $442,000 and increased by $64,000 from the corresponding period in the prior year.
Previous wording
Professional fees for the three months ended March 31, 2025 were $1,359,000 and increased by $322,000 from the corresponding period in the prior year primarily due to the establishment of the investment advisory committee.
Current wording
Professional fees for the three months ended June 30, 2025 were $1,451,000 and increased by $211,000 from the corresponding period in the prior year primarily due to the establishment of the Siebert advisory committee and the expansion into new business lines.
Previous wording
Interest expense for the three months ended March 31, 2025 was $89,000 and increased by $38,000 from the corresponding period in the prior year.
Current wording
Interest expense for the three months ended June 30, 2025 was $98,000 and increased by $38,000 from the corresponding period in the prior year primarily due to interest related to an agreement with Kakaopay in 2024.
Previous wording
Advertising and promotion expense for the three months ended March 31, 2025 was $154,000 and increased by $100,000 from the corresponding period in the prior year, primarily due to an increase in marketing initiatives.
Current wording
Advertising and promotion expense for the three months ended June 30, 2025 was $218,000 and increased by $175,000 from the corresponding period in the prior year, primarily due to an increase in marketing initiatives.
Previous wording
The provision from income taxes for the three months ended March 31, 2025 was $1,835,000 and increased by $420,000 from the corresponding period in the prior year. The change from the corresponding period in the prior year is primarily due to an increase in pre-tax earnings in the first quarter of 2025. Refer to Note 12 – Income Taxes for additional detail.
Current wording
The benefit from income taxes for the three months ended June 30, 2025 was $1,113,000 and decreased from the provision for income taxes by $2,645,000 from the corresponding period in the prior year. The change from the corresponding period in the prior year is primarily due to a pre-tax loss incurred in the second quarter of 2025. Refer to Note 14 – Income Taxes for additional detail.
Previous wording
Principal transactions and proprietary trading for the three months ended March 31, 2025 were $12,961,000 and increased by $9,455,000 from the corresponding period in the prior year, primarily due to the factors discussed below.
Current wording
Principal transactions and proprietary trading for the six months ended June 30, 2025 were $9,190,000 and increased by $2,110,000 from the corresponding period in the prior year, primarily due to the realized and unrealized gain of $2,430,000 in our Investment in Equity Security, which is explained further in the section above titled “Investment in Equity Security.”
Previous wording
Depreciation and amortization expenses for the three months ended March 31, 2025 were $415,000 and increased by $160,000 from the corresponding period in the prior year, primarilydue to an increase in depreciation related to the expansion of the technology infrastructure.
Current wording
Depreciation and amortization expenses for the six months ended June 30, 2025 were $1,044,000 and increased by $453,000 from the corresponding period in the prior year, primarilydue to an increase in amortization for the technology projects placed in service in the second quarter of 2025.
Previous wording
As further discussed in Note 1 – Organization and Basis of Presentation, we consolidate RISE’s financial results into our financial statements and reflect the portion of RISE not held by Siebert as a noncontrolling interest in our financial statements. The net loss attributable to noncontrolling interests for the three months ended March 31, 2025 was $3,000 and increased by $2,000 from the corresponding period in the prior year.
Current wording
As further discussed in Note 1 – Organization and Basis of Presentation, we consolidate RISE’s financial results into our financial statements and reflect the portion of RISE not held by Siebert as a noncontrolling interest in our financial statements. The net loss attributable to noncontrolling interests for the six months ended June 30, 2025 was $3,000 and increased by $9,000 from the corresponding period in the prior year.
Previous wording
Assets as of March 31, 2025 were $534,187,000 and decreased by $14,519,000 from December 31, 2024, primarily due to a decrease in securities borrowed.
Current wording
Assets as of June 30, 2025 were $560,512,000 and increased by $40,844,000 from December 31, 2024, primarily due to a increase in securities borrowed, partially offset by a decrease in cash and securities segregated for regulatory purposes.
Previous wording
Liabilities as of March 31, 2025 were $439,915,000 and increased by $5,339,000 from December 31, 2024, primarily due to an increase in securities loaned partially offset by a decrease in payables to customers.
Current wording
Liabilities as of June 30, 2025 were $470,524,000 and increased by $35,948,000 from December 31, 2024, primarily due to an increase in securities loaned partially offset by a decrease in payables to customers.
Previous wording
Based on our current level of operations, we believe our available cash, available lines of credit, overall access to capital markets, and cash provided by operations will be adequate to meet our current liquidity needs for the foreseeable future. As of the date of this Report, other than the items detailed in the section below, there are no known or material events that would require us to use large amounts of our liquid assets to cover expenses.
Current wording
Based on our current level of operations, we believe our available cash, available lines of credit, overall access to capital markets, and cash provided by operations will be adequate to meet our current liquidity needs for the foreseeable future. As of the date of this Report, other than the items detailed in the cash requirements section below, there are no known or material events that would require us to use large amounts of our liquid assets to cover expenses.
Previous wording
The net capital infusion from Kakaopay to Siebert from the First Tranche transaction was approximately $14.8 million after the issuance cost. This capital is currently being used to enhance our regulatory capital, and is primarily invested in U.S. government securities and is in the line item “Securities owned, at fair value” on the statements of financial condition. Refer to Note 6 – Kakaopay Transaction in our 2024 Form 10-K for further detail.
Current wording
The net capital infusion from Kakaopay to Siebert from the First Tranche transaction was approximately $14.8 million after the issuance cost. This capital is used to enhance our regulatory capital, and is primarily invested in U.S. government securities and is in the line item “Securities owned, at fair value” on the statements of financial condition. Refer to Note 6 – Kakaopay Transaction in our 2024 Form 10-K for further detail.
Previous wording
Our cash and cash equivalents were $25.7 million and $32.6 million as of March 31, 2025 and December 31, 2024, respectively.
Current wording
Our cash and cash equivalents were $28.9 million and $32.6 million as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
On August 15, 2024, we entered into the Credit Agreement with East West Bank providing a $20 million revolving credit facility, which offers substantial financial flexibility to support our strategic initiatives. This credit facility allows the Company to fund acquisitions, execute stock buybacks, and meet general corporate needs up to $10 million, ensuring access to capital for both growth and operational purposes. The two-year term of the Credit Agreement, combined with a competitive interest rate structure that is tied to either the one-month Term SOFR plus 3.15% or a minimum of 7.50%, provides a stable and predictable financing source. The personal guarantees provided by key executives, John J. Gebbia and Gloria E. Gebbia, and their trust, further strengthen the Company’s borrowing position and help secure favorable terms.
Current wording
On August 15, 2024, we entered into the Credit Agreement with East West Bank providing a $20 million revolving credit facility, which offers substantial financial flexibility to support our strategic initiatives. This credit facility allows us to fund acquisitions, execute stock buybacks, and meet general corporate needs up to $10 million, ensuring access to capital for both growth and operational purposes. The two-year term of the Credit Agreement, combined with a competitive interest rate structure that is tied to either the one-month Term SOFR plus 3.15% or a minimum of 7.50%, provides a stable and predictable financing source. The personal guarantees provided by key executives, John J. Gebbia and Gloria E. Gebbia, and their trust, further strengthen our borrowing position and help secure favorable terms.
Previous wording
MSCO can transfer funds to Siebert as long as MSCO maintains its liquidity and regulatory capital requirements. RISE can transfer funds to its shareholders, of which Siebert is entitled to its proportional ownership interest, as long as RISE maintains its liquidity and regulatory capital requirements. For the three ended March 31, 2025 and 2024, MSCO and RISE had sufficient net capital to meet their respective liquidity and regulatory capital requirements. Refer to Note 13 – Capital Requirements for more detail about our capital requirements.
Current wording
MSCO can transfer funds to Siebert as long as MSCO maintains its liquidity and regulatory capital requirements. RISE can transfer funds to its shareholders, of which Siebert is entitled to its proportional ownership interest, as long as RISE maintains its liquidity and regulatory capital requirements. For the three and six months ended June 30, 2025 and 2024, MSCO and RISE had sufficient net capital to meet their respective liquidity and regulatory capital requirements. Refer to Note 15 – Capital Requirements for more detail about our capital requirements.
Previous wording
For the three months ended March 31, 2025, cash used in operating activities decreased by $12.5 million compared to the prior year period, which was primarily driven by net change in securities loaned, securities borrowed and payables to customers.
Current wording
For the six months ended June 30, 2025, cash used in operating activities increased by $5.5 million compared to the prior year period, which was primarily driven by the net change in securities loaned, securities borrowed and payables to customers.
Previous wording
For the three months ended March 31, 2025, cash used in investing activities decreased by $0.6 million compared to the prior year period, which was primarily driven by the New York office build out occurring in the prior year period.
Current wording
For the six months ended June 30, 2025, cash used in investing activities decreased by $1.5 million compared to the prior year period, which was primarily driven by the investment in FusionIQ, partially offset by less investment in office facilities.
Previous wording
For the three months ended March 31, 2025, cash flows used in financing activities decreased by $4.8 million compared to 2024, which was primarily driven by the draws on the bank loan occurring in the prior year period.
Current wording
For the six months ended June 30, 2025, cash flows used in financing activities increased by $36,000 compared to 2024, which was primarily driven by the RISE cash distribution.
Previous wording
Effective June 2023, MSCO entered into an amendment to its service agreement with Broadridge Securities Processing Solutions, LLC that, among other things, extends the term of their arrangement for a five-year period ending June 2028, with an option to terminate after three years. The total minimum expense for this arrangement is estimated at approximately $1.2 million over the duration of the contract.
Current wording
Effective June 2023, MSCO entered into an amendment to its service agreement with Broadridge Securities Processing Solutions, LLC that, among other things, extends the term of their arrangement for a five-year period ending June 2028, with an option to terminate after three years. As of June 30, 2025, the total remaining minimum expense for this arrangement is estimated at approximately $0.4 million over the duration of the contract.
Previous wording
We enter into various transactions to meet the needs of customers, conduct trading activities, and manage market risks and are, therefore, subject to varying degrees of market and credit risk. In the normal course of business, our customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose us to off-balance sheet risk in the event the customer or other broker is unable to fulfill their contracted obligations and we are forced to purchase or sell the financial instrument underlying the contract at a loss. There were no material losses for unsettled customer transactions for the three months ended March 31, 2025 and 2024. Refer to Note 14 – Financial Instruments with Off-Balance Sheet Risk for additional detail.
Current wording
We enter into various transactions to meet the needs of customers, conduct trading activities, and manage market risks and are, therefore, subject to varying degrees of market and credit risk. In the normal course of business, our customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose us to off-balance sheet risk in the event the customer or other broker is unable to fulfill their contracted obligations and we are forced to purchase or sell the financial instrument underlying the contract at a loss. There were no material losses for unsettled customer transactions for the three and six months ended June 30, 2025 and 2024. Refer to Note 16 – Financial Instruments with Off-Balance Sheet Risk for additional detail.
Previous wording
As of both March 31, 2025 and December 31, 2024, the Company recorded an uncertain tax position of $1,354,000 related to various tax matters, which is included in the line item “Taxes payable” in the statements of financial condition.
Current wording
As of both June 30, 2025 and December 31, 2024, we recorded an uncertain tax position of $1,354,000 related to various tax matters, which is included in the line item “Taxes payable” in the statements of financial condition.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
As further discussed in Note 1 – Organization and Basis of Presentation, we consolidate RISE’s financial results into our financial statements and reflect the portion of RISE not held by Siebert as a noncontrolling interest in our financial statements. The net income attributable to noncontrolling interests for the three months ended June 30, 2025 was $0 and decreased by $7,000 from the corresponding period in the prior year.
Current report — wording carried from elsewhere
Statements of Operations for the Six Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
Stock borrow / stock loan for the six months ended June 30, 2025 was $12,359,000 and increased by $3,565,000 from the corresponding period in the prior year, primarily due to growth in stock locate services and securities lending businesses.
Current report — wording carried from elsewhere
Employee compensation and benefits for the six months ended June 30, 2025 were $25,310,000 and increased by $4,627,000 from the corresponding period in the prior year, primarily due toan increase in equity compensation as well as additional personnel related to technology initiatives and expansion into investment banking and servicing active trader customers.
Current report — wording carried from elsewhere
Technology and communications expenses for the six months ended June 30, 2025 were $2,150,000 and increased by $394,000 from the corresponding period in the prior year, primarily due to an expansion of technological infrastructure.
Current report — wording carried from elsewhere
Provision For (Benefit From) Income Taxes
Current report — wording carried from elsewhere
The provision from income taxes for the six months ended June 30, 2025 was $722,000 and decreased from the provision for income taxes by $2,225,000 from the corresponding period in the prior year. The change from the corresponding period in the prior year is primarily due to a decrease in pre-tax earnings in the six months ending June 30, 2025. Refer to Note 14 – Income Taxes for additional detail.
Current report — wording carried from elsewhere
Net Income (Loss) Attributable to Noncontrolling Interests
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
At the end of 2023, we hired new technology personnel, changed our primary software development vendor, and made investments in technology development.