SIEBERT FINANCIAL CORP
For the period ended Jun 30, 2026. Filed Aug 11, 2026.
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, 2026 · Filed Aug 11, 2026
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 2026-03-31; filed 2026-05-15.
0001213900-26-057679
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001213900-26-087833
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 123 previous paragraphs and 129 current paragraphs.
69 unchanged; 40 reworded; 20 added; 12 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 33 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 (20)
Current report
Financial highlights for the three months ended June 30, 2026:
Current report
tZERO Clearing Agreement
Current report
During the second quarter of 2026, we entered into clearing agreements with tZERO Digital Asset Securities, LLC and tZERO Securities, LLC (collectively, "tZERO"), privately held financial companies that provide regulated infrastructure for the issuance, management, and trading of digital securities and tokenized assets. Under these agreements, tZERO will provide custody services for digital assets and traditional securities held by certain customers introduced by us and accepted by tZERO on a fully disclosed basis. We believe this relationship expands our available custodial arrangements and enhances our ability to offer digital asset-related services to customers.
Current report
Arbitration Settlement
Current report
Subsequent to June 30, 2026, we settled an arbitration matter and expect to make a payment of approximately $1.48 million during the third quarter of 2026. We accrued the full amount of the settlement as of June 30, 2026, and the related liability is included in “Accounts payable and accrued liabilities” on the statements of financial condition. The settlement charge of $1.48 million was recognized in line item “Settlement expense” on the statements of operations during the three and six months ended June 30, 2026.
Current report
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.
Current report
FusionIQ
Current report
In the second quarter of 2025, we invested $2.0 million in FusionIQ, a cloud-native digital wealth management platform serving financial advisors and financial institutions. As of June 30, 2026, we held an ownership interest of approximately 4% in FusionIQ. In addition, in December 2025, FusionIQ issued to us a $350,000 convertible promissory note bearing interest at 12% per annum.
Current report
We believe our investment in FusionIQ supports our strategy of expanding our digital wealth management capabilities and enhancing the client experience across our platform. In July 2026, we made an additional $1.0 million investment in FusionIQ, increasing our aggregate investment to $3.0 million and our ownership interest to approximately 5%. Refer to Note 22 – Subsequent Events for further information.
Current report
For the three and six months ended June 30, 2025, results were significantly impacted by gains and losses recognized on our Investment in Equity Security. During the three months ended June 30, 2025, we recognized realized and unrealized losses of approximately $6.8 million related to this investment. For the six months ended June 30, 2025, the investment generated a net gain of approximately $2.4 million, reflecting the unrealized gain recognized during the first quarter of 2025, partially offset by losses recognized in the second quarter of 2025. These investment-related gains and losses significantly affected year-over-year comparability for both the three- and six-month periods and are discussed further in the section above titled “Investment in Equity Security.”
Current report
Results of Operations
Current report
Principal transactions and proprietary trading revenue for the three and six months ended June 30, 2026 was $6.1 million and $10.0 million, respectively, and increased by $10.1 million and $1.0 million, respectively, from the corresponding periods in the prior year. The increase for the three-month period was primarily attributable to the approximately $6.8 million of realized and unrealized losses recognized on the Investment in Equity Security during the second quarter of 2025, which significantly affected comparability. The increase for the six-month period was primarily attributable to improved results from riskless principal transactions and trading activity, partially offset by the $2.4 million unrealized and realized gain occurring in the prior year period. Refer to "Investment in Equity Security" and Note 1 – Organization and Basis of Presentation for additional information.
Current report
Investment banking revenue for the three and six months ended June 30, 2026 was $2.4 million and $4.0 million, respectively, and increased by $2.2 million and $3.8 million, respectively, from the corresponding periods in the prior year, reflecting continued growth of the business line.
Current report
Other income for the three and six months ended June 30, 2026 was $1.6 million and $3.0 million, respectively, and increased by $0.7 million and $1.3 million, respectively, from the corresponding periods in the prior year, primarily due to increased payment-for-order-flow revenue.
Current report
Market making revenue for the three and six months ended June 30, 2026 was $0.3 million and $0.9 million, respectively, both of which decreased by $0.2 million compared to the corresponding periods in the prior year, primarily due to lower trading activity and market conditions.
Current report
Professional fees for the three and six months ended June 30, 2026 were $2.1 million and $3.8 million, respectively, and increased by $0.6 million and $0.9 million, respectively, from the corresponding periods in the prior year, primarily due to higher legal and consulting costs.
Current report
Depreciation and amortization expenses for the three and six months ended June 30, 2026 were $0.7 million and $1.4 million, respectively. Expenses were unchanged for the three-month period and increased by $0.3 million for the six-month period compared with the corresponding periods in the prior year. The increase in the six-month period was primarily attributable to additional amortization related to technology development projects placed into service.
Current report
Settlement expense for both the three and six months ended June 30, 2026 was $1.48 million, primarily due to the settlement expense related to the resolution of an arbitration matter. Refer to Note 18 - Commitments, Contingencies, and Other for further information.
Current report
Provision for Income Taxes
Current report
Assets as of June 30, 2026 were $968,763,000 and increased by $209,721,000 from December 31, 2025, primarily due to an increase in securities borrowed, partially offset by a decrease in securities owned, at fair value.
Removed paragraphs (12)
Previous report
For the three months ended March 31, 2026, our results compared to the prior-year period reflected continued growth in certain business lines, including stock borrow / stock loan and investment banking, offset by lower interest-related revenue, higher operating expenses, impairment of goodwill and an intangible asset related to our Media, Sports, and Entertainment segment, and the $9.2 million unrealized gain recognized during the prior-year period related to our Investment in Equity Security.
Previous report
In the first quarter of 2025, we participated in a private placement and acquired restricted shares of a privately held U.S. company (the “Investment in Equity Security”). These shares were subject to restrictions on transferability and did not have a readily determinable fair value at the time of acquisition. On March 31, 2025, the issuer completed its initial public offering “(IPO”), and our restricted shares converted into restricted publicly traded shares as part of the IPO process. These shares remained subject to resale restrictions and could not be sold unless a registration statement was filed with SEC or an applicable exemption from registration became available. Additional details are provided in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2025.
Previous report
The results were significantly impacted by a $9.2 million unrealized gain recognized during the three months ended March 31, 2025 related to our investment in an equity security. This gain significantly affected year-over-year comparability, and is detailed further in the section above titled “Investment in Equity Security.”
Previous report
Principal transactions and proprietary trading for the three months ended March 31, 2026 was $3,928,000 and decreased by $9,033,000 from the corresponding period in the prior year, primarily due to the unrealized gain related to the Investment in Equity Security in the first quarter of 2025.
Previous report
Investment banking for the three months ended March 31, 2026 was $1,573,000 and increased by $1,573,000 from the corresponding period in the prior year, primarily due to new revenue from the business line.
Previous report
Market making for the three months ended March 31, 2026 was $545,000 and decreased by $7,000 from the corresponding period in the prior year.
Previous report
Other income for the three months ended March 31, 2026 was $1,384,000 and increased by $610,000 from the corresponding period in the prior year, primarily due to new revenue from music and sports operations.
Previous report
Professional fees for the three months ended March 31, 2026 were $1,698,000 and increased by $339,000 from the corresponding period in the prior year primarily due to legal fees.
Previous report
Depreciation and amortization expenses for the three months ended March 31, 2026 were $690,000 and increased by $275,000 from the corresponding period in the prior year, primarily due to an increase in amortization for technology projects.
Previous report
As of both March 31, 2026 and December 31, 2025, the Company recorded an uncertain tax position of $63,000 related to various tax matters, which is included in the line item “Taxes receivable” in the statements of financial condition.
Previous report
Accounting Standards Adopted in Fiscal 2026
Previous report
In July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments-Credit Losses” (“ASU 2025-05”). The ASU is intended to provide an optional practical expedient when applying the guidance related to the estimation of expected credit losses for current accounts receivable and current contract assets resulting from transactions arising from contracts with customers. ASU 2025-05 will be effective for Siebert for fiscal years beginning after December 15, 2025, and interim reporting periods, with early adoption permitted. We adopted the standard in the three months ended March 31, 2026 and the adoption of ASU 2025-05 did not have a material impact on our financial statements.
Reworded paragraphs (40)
Previous wording
In the three months ended March 31, 2026, loss per share was $0.05, compared to earnings per share of $0.22 in the prior-year period. In the first quarter of 2026, our revenues were $23.5 million and operating loss before taxes was $2.9 million, compared to revenues of $28.9 million and operating income of $10.5 million in the prior-year period.
Current wording
In the second quarter of 2026, loss per share was $0.01, compared to loss per share of $0.12 in the second quarter of 2025. In the second quarter of 2026, our revenues were $31.2 million and operating loss was $0.5 million, compared to revenues of $14.9 million and operating loss of $5.8 million in the second quarter of 2025.
Previous wording
During the three months ended March 31, 2026, we continued to invest in the expansion of our business lines and supporting infrastructure, which contributed to higher personnel expenses, commission and payout expenses, technology costs, advertising and promotion expense, and costs associated with the growth of expenses associated with music production, artist development, marketing, distribution, and related operations. These increases were partially offset by higher revenues from stock borrow / stock loan activities and investment banking fees, and the impairment expenses detailed in the sections below. The year-over-year comparison was significantly impacted by the $9.2 million unrealized gain recognized during the three months ended March 31, 2025. See “Investment in Equity Security,” “Segments,” and “Statements of Operations and Financial Condition” below for further discussion of the significant factors affecting our results.
Current wording
During the three months ended June 30, 2026, revenues increased primarily due to higher activity in our stock borrow / stock loan business, increased investment banking fees, and higher commission revenue. These increases were partially offset by continued investments in the expansion of our business and supporting infrastructure, which contributed to higher personnel expenses, commission and payout expenses, technology costs, advertising and promotion expenses, and costs associated with music production, artist development, marketing, distribution, and related operations, as well as a settlement charge associated with the resolution of an arbitration matter. The year-over-year comparison was also significantly impacted by investment-related losses recognized in the second quarter of 2025. During that period, we recognized approximately $6.8 million of realized and unrealized losses on an equity security investment acquired through a private placement in a company that subsequently completed an initial public offering. Refer to “Investment in Equity Security” below for additional detail.
Previous wording
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 price per share closed at $85.31 on March 31, 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. We recognized a net gain of $2.4 million related to this investment following the sale of our position.
Current wording
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 prior-year quarter.
Previous wording
In the first quarter of 2026, we made a strategic investment in Arqitech. Arqitech is an institutional-grade, non-custodial digital asset infrastructure platform that provides on-chain settlement, cross-chain execution, and decentralized financial technology solutions for regulated financial institution to support its broader technology and digital asset initiatives. We believe this investment provides exposure to institutional-grade digital asset infrastructure and anticipates it will support future growth and strategic opportunities.
Current wording
In the first quarter of 2026, we made a strategic investment in Arqitech. Arqitech is an institutional-grade, non-custodial digital asset infrastructure platform that provides on-chain settlement, cross-chain execution, and decentralized financial technology solutions for regulated financial institution to support its broader technology and digital asset initiatives. As part of the investment, we received repayment of $2.0 million of debt in July 2026. We believe this investment provides exposure to institutional-grade digital asset infrastructure and anticipates it will support future growth and strategic opportunities.
Previous wording
On March 4, 2026, we entered into an agreement with a multimedia news platform operator for $1 million for a media partnership designed to support marketing and promotional initiatives related to our products and services.
Current wording
On March 4, 2026, we entered into an agreement with a multimedia news platform operator for $1 million for a media partnership designed to support marketing and promotional initiatives related to our products and services. The partnership is intended to expand our market reach, increase brand awareness, and provide additional exposure to existing and prospective customers through multimedia content and promotional channels.
Previous wording
Results in the Financial Services segment were impacted by continued growth in certain business lines, including stock borrow / stock loan and investment banking, which were more than offset by lower interest-related revenue and higher operating expenses.
Current wording
Results in the Financial Services segment for the three and six months ended June 30, 2026, were impacted by continued growth in certain business lines, including stock borrow / stock loan and investment banking, which were partially offset by higher operating expenses related to higher commission and payout expenses, additional personnel supporting expanded business activities and new business lines, and higher marketing and advertising costs as well as a settlement charge associated with the resolution of an arbitration matter.
Previous wording
Other than the above, the primary factors impacting results in the Financial Services segment included the following:
Current wording
Other than the above, the primary factors impacting results in the Financial Services segment for the three and six months ended June 30, 2026, included the following:
Previous wording
Results in the Media, Sports and Entertainment segment were impacted by continued investment in the growth of the Company’s music production, marketing, distribution, artist development, and related operations. The segment did not contribute positively to operating results during the three months ended March 31, 2026 or March 31, 2025, which management believes is consistent with the development stage of the business.
Current wording
Results in the Media, Sports and Entertainment segment were impacted by continued investment in the growth of the Company’s music production, marketing, distribution, artist development, and related operations. The segment did not contribute positively to operating results during the three and six months ended June 30, 2026 or June 30, 2025, which management believes is consistent with the development stage of the business.
Previous wording
The primary factors impacting results in the Media, Sports and Entertainment segment included the following:
Current wording
The primary factors impacting results in the Media, Sports and Entertainment segment for the three and six month ended June 30, 2026, included the following:
Previous wording
The Media, Sports and Entertainment segment remains in an early-stage development phase and continued to incur costs related to artist development, content production, marketing, personnel, and infrastructure. During the three months ended March 31, 2026, management updated its forecast for the segment based on current operating performance, the status of artist/talent contracts, and expected revenue-generating opportunities. The updated forecast reflected higher costs and a slower path to profitability than previously anticipated. As a result, we recorded a non-cash goodwill impairment charge of approximately $330,000 related to the Media, Sports and Entertainment reporting unit. The impairment analysis included significant assumptions related to revenue growth, timing of artist/talent contract activity, artist-development and production costs, marketing spend, personnel and infrastructure costs, expected timing of profitability, and the discount rate.
Current wording
The Media, Sports and Entertainment segment remains in an early-stage development phase and continued to incur costs related to artist development, content production, marketing, personnel, and infrastructure. During the three months ended March 31, 2026, management updated its forecast for the segment based on current operating performance, the status of artist/talent contracts, and expected revenue-generating opportunities. The updated forecast reflected higher costs and a slower path to profitability than previously anticipated. As a result, we recorded a non-cash goodwill impairment charge of approximately $330,000 related to the Media, Sports and Entertainment reporting unit in the three months ended March 31, 2026. The impairment analysis included significant assumptions related to revenue growth, timing of artist/talent contract activity, artist-development and production costs, marketing spend, personnel and infrastructure costs, expected timing of profitability, and the discount rate.
Previous wording
We have 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 during 2025 and several projects are anticipated to go live in 2026. In 2025, we made a minority equity investment in and entered into a strategic partnership with FusionIQ, a provider of engagement solutions and data analytics for wealth management firms, to help with these technology initiatives and new product offerings. We believe these ongoing investments in technology and partnerships will be important in meeting the needs of our retail, correspondent clearing, and corporate services customers and supporting our expansion into new markets and demographics.
Current wording
We have made investments in technology development projects collectively termed as Siebert’s Retail Platform. Technology development projects, including enhancements to the online platform serving Siebert’s retail customer base and corporate services clients, have been placed into service during 2025, and several additional projects are anticipated to go live in 2026. In 2025, we made minority equity investments in and entered into strategic partnerships with FusionIQ and Arqitech to support these technology initiatives and enhance our product offerings. Through these relationships, we are expanding our digital wealth management capabilities, developing new client-facing solutions, and leveraging advanced technology to improve operational efficiency and the overall customer experience. We believe these ongoing investments in technology, strategic partnerships, and platform development will be important in meeting the evolving needs of our retail, correspondent clearing, and corporate services customers and supporting our expansion into new markets and demographics
Previous wording
Statements of Operations for the Three Months Ended March 31, 2026 and 2025
Current wording
Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
Stock borrow / stock loan for the three months ended March 31, 2026 was $6,831,000 and increased by $1,994,000 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 revenue for the three and six months ended June 30, 2026 was $10.8 million and $17.6 million, respectively, and increased by $3.3 million and $5.3 million, respectively, from the corresponding periods in the prior year, primarily due to growth in stock locate services and securities lending activities.
Previous wording
Interest, marketing and distribution fees for the three months ended March 31, 2026 were $5,874,000 and decreased by $1,071,000 from the corresponding period in the prior year primarily due to a decline in interest rates.
Current wording
Interest, marketing and distribution fees for the three and six months ended June 30, 2026 were $6.2 million and $12.1 million, respectively, and decreased by $0.7 million and $1.8 million, respectively, from the corresponding periods in the prior year, primarily due to lower interest rates.
Previous wording
Commissions and fees for the three months ended March 31, 2026 were $2,325,000 and increased by $223,000 from the corresponding period in the prior year, primarily due to market conditions.
Current wording
Commissions and fees for the three and six months ended June 30, 2026 were $2.7 million and $5.0 million, respectively, and increased by $0.6 million and $0.9 million, respectively, from the corresponding periods in the prior year, primarily due to increased customer trading activity and higher commission-generating transactions.
Previous wording
Advisory fees for the three months ended March 31, 2026 were $1,010,000 and increased by $262,000 from the corresponding period in the prior year, primarily due to growth in platform assets.
Current wording
Advisory fees for the three and six months ended June 30, 2026 were $1.0 million and $2.0 million, respectively, and increased by $0.2 million and $0.5 million, respectively, from the corresponding periods in the prior year, primarily due to growth in platform assets under management.
Previous wording
Employee compensation and benefits for the three months ended March 31, 2026 were $16,172,000 and increased by $4,250,000 from the corresponding period in the prior year, primarily due to an increase in commission payouts as well as additional personnel related to new business lines.
Current wording
Employee compensation and benefits for the three and six months ended June 30, 2026 were $19.2 million and $35.4 million, respectively, and increased by $5.8 million and $10.1 million, respectively, from the corresponding periods in the prior year, primarily due to higher commission payouts driven by increased commission revenue and additional personnel supporting expanded business activities and new business lines.
Previous wording
Clearing fees, including execution costs for the three months ended March 31, 2026 were $597,000 and increased by $143,000 from the corresponding period in the prior year, primarily due to clearing fees associated with the arrangement with Green Pier.
Current wording
Clearing fees, including execution costs, for the three and six months ended June 30, 2026 were $0.9 million and $1.5 million, respectively, and increased by $0.4 million and $0.6 million, respectively, from the corresponding periods in the prior year, primarily due to clearing fees associated with the Green Pier arrangement.
Previous wording
Technology and communications expenses for the three months ended March 31, 2026 were $1,805,000 and increased by $700,000 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 and six months ended June 30, 2026 were $1.9 million and $3.7 million, respectively, and increased by $0.9 million and $1.6 million, respectively, from the corresponding periods in the prior year, primarily due to continued investments in technology infrastructure, platform enhancements, and statement printing services.
Previous wording
Other general and administrative expenses for the three months ended March 31, 2026 were $1,733,000 and increased by $224,000 from the corresponding period in the prior year primarily due to expansion of business lines.
Current wording
Other general and administrative expenses for the three and six months ended June 30, 2026 were $2.1 million and $3.8 million, respectively, and increased by $0.2 million and $0.4 million, respectively, from the corresponding periods in the prior year, primarily due to the expansion of business operations.
Previous wording
Data processing expenses for the three months ended March 31, 2026 were $1,286,000 and increased by $337,000 from the corresponding period in the prior year, primarily due to expansion of technology infrastructure.
Current wording
Data processing expenses for the three and six months ended June 30, 2026 were $1.8 million and $3.0 million, respectively, and increased by $0.6 million and $0.9 million, respectively, from the corresponding periods in the prior year, primarily due to expansion of technology infrastructure.
Previous wording
Rent and occupancy expenses for the three months ended March 31, 2026 were $454,000 and decreased by $13,000 from the corresponding period in the prior year.
Current wording
Rent and occupancy expenses for the three and six months ended June 30, 2026 were $0.5 million and $1.0 million, respectively, both of which increased by $0.1 million compared to the corresponding periods in the prior year.
Previous wording
Interest expense for the three months ended March 31, 2026 was $218,000 and increased by $129,000 from the corresponding period in the prior year, primarily due to interest related to short term line of credit with East West bank.
Current wording
Interest expense for the three and six months ended June 30, 2026 was $0.2 million and $0.4 million, respectively, and increased by $0.1 million and $0.3 million, respectively, from the corresponding periods in the prior year, primarily due to borrowings under the Company’s short-term line of credit with East West Bank.
Previous wording
Advertising and promotion expense for the three months ended March 31, 2026 was $900,000 and increased by $746,000 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 and six months ended June 30, 2026 was $0.8 million and $1.7 million, respectively, and increased by $0.6 million and $1.4 million, respectively, from the corresponding periods in the prior year, primarily due to expanded marketing initiatives supporting business growth and brand awareness.
Previous wording
Goodwill impairment for the three months ended March 31, 2026 was $330,000 and increased by $330,000 from the corresponding period in the prior year, due to the goodwill impairment related to the Media, Sports, and Entertainment segment. Refer to Note 9 – Goodwill and Other Intangible Assets, Net for further information.
Current wording
Goodwill impairment for the three and six months ended June 30, 2026 was $0 million and $0.3 million, respectively, compared to no impairment in the corresponding periods of the prior year. The impairment reflects a goodwill impairment recognized in the Media, Sports and Entertainment segment during the three months ended March 31, 2026. Refer to Note 9 – Goodwill and Other Intangible Assets, Net for additional information.
Previous wording
Intangible asset impairment for the three months ended March 31, 2026 was $454,000 and increased by $454,000 from the corresponding period in the prior year, due to the intangible asset impairment related to the artists contracts in the Media, Sports, and Entertainment segment. Refer to Note 9 – Goodwill and Other Intangible Assets, Net for further information.
Current wording
Intangible asset impairment for the three and six months ended June 30, 2026 was $0 million and $0.5 million, respectively, compared to no impairment in the corresponding periods of the prior year. The impairment reflects a charge related to an artist contract within the Media, Sports and Entertainment segment recognized during the three months ended March 31, 2026. Refer to Note 9 – Goodwill and Other Intangible Assets, Net for additional information.
Previous wording
Provision For (Benefit From) Income Taxes
Current wording
The benefit from income taxes for the three months ended June 30, 2026 was $146,000 and decreased by $967,000 from the corresponding period in the prior year, primarily due to a pre-tax loss in thethree months ended June 30, 2025. Refer to Note 14 – Income Taxes for additional detail. The benefit from income taxes for the six months ended June 30, 2026 was $1,041,000, compared with a provision for income taxes of $722,000, compared with a provision for income taxes of $722,000 in the corresponding period of the prior year, representing a change of $1,763,000. The change was primarily due to a pre-tax loss in the six months ended June 30, 2026. Refer to Note 14 – Income Taxes for additional detail.
Previous wording
The net loss attributable to noncontrolling interests for the three months ended March 31, 2026 was $0 and decreased by $3,000 from the corresponding period in the prior year, primarily due to Siebert’s noncontrolling interest in RISE for the three months ended March 31, 2025. The net loss attributable to noncontrolling interests represented the portion of RISE’s results attributable to ownership interests not held by Siebert. Siebert consolidates RISE’s financial results and reflects the portion not owned by Siebert as noncontrolling interests. As of March 31, 2026 and December 31, 2025, RISE was wholly owned by Siebert.
Current wording
Net income attributable to noncontrolling interests was $0 for both the three months ended June 30, 2026 and 2025. Net loss attributable to noncontrolling interests for the six months ended June 30, 2026 was $0, compared to net loss attributable to noncontrolling interests of approximately $3,000 in the corresponding period of the prior year, due to Siebert’s acquisition of the remaining ownership interest in RISE. As of June 30, 2026 and December 31, 2025, RISE was wholly owned by Siebert.
Previous wording
Assets as of March 31, 2026 were $597,142,000 and decreased by $161,900,000 from December 31, 2025, primarily due to a decrease in securities borrowed and cash and securities segregated for regulatory purposes, partially offset by an increase in receivables from broker-dealers and clearing organizations and receivables from customers.
Current wording
Liabilities as of June 30, 2026 were $ 880,112,000 and increased by $210,230,000 from December 31, 2025, primarily due to an increase in securities loaned and payables to broker-dealers and clearing organizations, partially offset by a decrease in drafts payable.
Previous wording
Our cash and cash equivalents were $16.2 million and $22.4 million as of March 31, 2026 and December 31, 2025, respectively.
Current wording
Our cash and cash equivalents were $16.1 million and $22.4 million as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
On August 15, 2024, we entered into the EWB Credit Agreement with East West Bank providing a $20 million revolving credit facility. 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 maturity date of the EWB Credit Agreement is July 29, 2027. The interest rate structure that is tied to either the one-month Term SOFR plus 3.15% or a minimum of 7.50%. John J. Gebbia and Gloria E. Gebbia, and their trust, provided personal guarantees related to this agreement which further strengthen our borrowing position and help secure favorable terms. As of March 31, 2026, $5 million was outstanding related to the above EWB Credit Agreement. The interest expense for this credit line was $95,000 and $0 for the three months ended March 31, 2026 and 2025, respectively. The interest rate was 7.5% for this credit facility during the three months ended March 31, 2026.
Current wording
On August 15, 2024, we entered into the EWB Credit Agreement with East West Bank providing a $20 million revolving credit facility. 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 maturity date of the EWB Credit Agreement is July 29, 2027. The interest rate structure that is tied to either the one-month Term SOFR plus 3.15% or a minimum of 7.50%. John J. Gebbia and Gloria E. Gebbia, and their trust, provided personal guarantees related to this agreement which further strengthen our borrowing position and help secure favorable terms. As of June 30, 2026, $5 million was outstanding related to the above EWB Credit Agreement. The interest rate was 7.5% for this credit facility during both the three and six months ended June 30, 2026.
Previous wording
Effective November 22, 2025, MSCO renewed the BMO Credit Agreement with BMO Harris until November 20, 2026. Borrowings under the BMO Credit Agreement will bear interest on the outstanding daily balance at a rate of interest per annum equal 2.5% plus the greater of: (a) Term SOFR for such day plus 0.11448% and (b) Federal Funds Target Range – Upper Limit and (c) 0.25%. The annual commitment fee is equal to one half of one percent (0.50%) of the average daily unused portion of the commitment of $20,000,000. The BMO Credit Agreement contains customary affirmative covenants and negative covenants and requires MSCO to maintain minimum total regulatory capital of $45,000,000, excess net capital of 20,000,000, assets to total regulatory capital ratio of not more than 5.0 to 1.0, and a minimum liquidity ratio of not less than 1.0.
Current wording
Effective November 22, 2025, MSCO renewed the BMO Credit Agreement with BMO Harris until November 20, 2026. Borrowings under the BMO Credit Agreement will bear interest on the outstanding daily balance at a rate of interest per annum equal 2.5% plus the greater of: (a) Term SOFR for such day plus 0.11448% and (b) Federal Funds Target Range – Upper Limit and (c) 0.25%. The annual commitment fee is equal to one half of one percent (0.50%) of the average daily unused portion of the commitment of $20,000,000. The BMO Credit Agreement contains customary affirmative covenants and negative covenants and requires MSCO to maintain minimum total regulatory capital of $50,000,000, excess net capital of 25,000,000, assets to total regulatory capital ratio of not more than 5.0 to 1.0, and a minimum liquidity ratio of not less than 1.0.
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 months ended March 31, 2026 and 2025, 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.
Current wording
MSCO and RISE can transfer funds to Siebert as long as MSCO and RISE maintain their liquidity and regulatory capital requirements. For the six months ended June, 2026 and 2025, 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, 2026, cash used in operating activities decreased by $8.4 million compared to the prior year period, which was primarily driven by the net change in securities loaned, securities borrowed, securities segregated, and receivables from broker-dealers and clearing organizations.
Current wording
For the six months ended June 30, 2026, cash used in operating activities decreased by $5.2 million compared to the prior year period, which was primarily driven by the net change in securities loaned, securities borrowed, securities segregated, receivables from customers, and payables to customers.
Previous wording
For the three months ended March 31, 2026, cash used in investing activities decreased by $0.2 million compared to the prior year period, which was primarily driven by less investment in capitalized software development cost, partially offset by the investment in Arqitech.
Current wording
For the six months ended June 30, 2026, cash used in investing activities decreased by $2.5 million compared to the prior year period, which was primarily driven by the investment in FusionIQ in 2025 and lower software capital expenditures in the six months ended June 30, 2026.
Previous wording
For the three months ended March 31, 2026, cash flows used in financing activities decreased by $35,000 compared to the prior year period, which was primarily due to a RISE cash distribution in the first quarter of 2025.
Current wording
For the six months ended June 30, 2026, cash flows used in financing activities decreased by $34,000 compared to the prior year period, which was primarily due to a RISE cash distribution in the first quarter of 2025.
Previous wording
Effective September 29, 2025, MSCO entered into an amendment to its clearing agreement with NFS that, among other things, extends the term of their arrangement for an additional five-year period commencing on September 26, 2025 and ending October 1, 2030. As part of this agreement, we received a one-time business development credit of $4.8 million. The amendment also provides for an early termination fee; however, as of March 31, 2026, we do not expect to terminate the contract with NFS before the end of the contract term. For the three months ended March 31, 2026 and 2025, there was no expense recognized for any early termination fees. Refer to Note 12 – Deferred Contract Incentive and Note 18 – Commitments, Contingencies and Other for additional detail.
Current wording
Effective September 29, 2025, MSCO entered into an amendment to its clearing agreement with NFS that, among other things, extends the term of their arrangement for an additional five-year period commencing on September 26, 2025 and ending October 1, 2030. As part of this agreement, we received a one-time business development credit of $4.8 million. The amendment also provides for an early termination fee; however, as of June 30, 2026, we do not expect to terminate the contract with NFS before the end of the contract term. For the three and six months ended June 30, 2026 and 2025, there was no expense recognized for any early termination fees. Refer to Note 12 – Deferred Contract Incentive and Note 18 – Commitments, Contingencies and Other for additional detail.
Previous wording
Effective November 2025, 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 three-year period ending November 2028, with an option to terminate after three years. As of March 31, 2026, the total remaining minimum expense for this arrangement is estimated at approximately $1.5 million over the duration of the contract.
Current wording
Effective November 2025, 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 three-year period ending November 2028, with an option to terminate after three years. As of June 30, 2026, the total remaining minimum expense for this arrangement is estimated at approximately $1.3 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, 2026 and 2025. Refer to Note 16 – 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, 2026 and 2025. Refer to Note 16 – Financial Instruments with Off-Balance Sheet Risk for additional detail.
Previous wording
During the three months ended March 31, 2026, we recorded a noncash goodwill impairment charge of approximately $330,000 related to the Media, Sports and Entertainment reporting unit. The impairment analysis required management to make significant estimates and assumptions, including projected revenue growth, artist contract activity, expected profitability, terminal growth rate, and discount rate. Following the impairment, no goodwill remained assigned to the Media, Sports and Entertainment reporting unit. We also evaluated our Financial Services reporting unit and concluded that no impairment existed as of March 31, 2026.
Current wording
In the three months ended March 31, 2026, we recorded a noncash goodwill impairment charge of approximately $330,000 related to the Media, Sports and Entertainment reporting unit. The impairment analysis required management to make significant estimates and assumptions, including projected revenue growth, artist contract activity, expected profitability, terminal growth rate, and discount rate. Following the impairment, no goodwill remained assigned to the Media, Sports and Entertainment reporting unit. We also evaluated our Financial Services reporting unit and concluded that no impairment existed as of June 30, 2026.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The benefit from income taxes for the three months ended March 31, 2026 was $895,000 and decreased by $2,730,000 from the corresponding period in the prior year, primarily due to a pre-tax loss in the three months ended March 31, 2026. Refer to Note 14 – Income Taxes for additional detail.
Previous report — wording carried elsewhere
Liabilities as of March 31, 2026 were $509,022,000 and decreased by $160,860,000 from December 31, 2025, primarily due to a decrease in securities loaned and payables to customers.