Perella Weinberg Partners Q1 Earnings Call Highlights

Key Points

• Perella Weinberg reported Q1 revenue of $149 million, down 30%, but management said client engagement and a two‑year high backlog support expectations that revenue will be meaningfully back‑half weighted this year.
• The M&A market is driven by a record concentration of mega‑cap deals—Perella advised on 2 of the 12 transactions above $15 billion—even as deal processes are lengthening due to macro, geopolitical and sector‑specific caution.
• Adjusted compensation margin rose to 79% (above the 67% target) partly from RSU timing and a lower revenue base while non‑comp expenses fell 24%; the firm returned nearly $64 million to shareholders, declared a $0.07 quarterly dividend, and ended the quarter with $78 million cash and no debt.

Perella Weinberg Partners NASDAQ: PWP reported first-quarter revenue of $149 million, down 30% from what CEO Andrew Bednar described as the firm’s “record first quarter last year,” while management emphasized that client engagement and pipeline indicators remain strong despite longer deal timelines.

“These results don't align with the current state of our business,” Bednar said, pointing to strong client dialogue, an announced and pending backlog at a two-year quarterly high, and a growing overall pipeline. He added that the firm expects revenue to be “meaningfully back half weighted this year” based on where transactions currently sit.

Deal timelines lengthen even as mega-cap M&A drives volumes

Bednar said the M&A market remains active, with strong overall volumes, but activity has been concentrated in a record number of mega-cap transactions. He noted that Perella Weinberg was involved in “2 of the 12 transactions in the quarter valued at $15 billion or above.”

At the same time, he said deal processes are stretching. “Everything we do is taking more time,” Bednar told analysts, citing more complex mandates, a longer path to win mandates, and more time between announcement and close as clients weigh macro, geopolitical, and sector-specific factors. “Clients are not walking away from transactions, but they are being careful,” he said.

Asked by KBW’s Alexander Bond about large-cap strategic M&A, Bednar said the upper end of the market “very, very healthy,” adding the firm was tracking activity ahead of last year and expected the number of transactions above $10 billion to rise year-over-year. He also pointed to “a very accommodative administration” as a factor encouraging dealmaking on a quicker timeline than historical norms.

However, Bednar declined to give quarterly revenue guidance when asked about the second quarter, saying only that the firm does not see “a lot of closing risk” in the pipeline, while “timing issues are very prevalent.” He compared the situation to 2024, when the firm posted its lowest quarter in the first quarter but later finished with a record full year.

Restructuring remains active, but softer after a record year

Bednar said restructuring and liability management activity remained active in the first quarter, though the revenue contribution “softens coming off a record 2025 that saw a number of large deals completed in the period.” He said the firm is rebuilding its pipeline in the business, but highlighted that moving from an initial mandate to revenue recognition takes time.

In response to a Goldman Sachs question on restructuring, Bednar said the “typical moves” in restructuring have “largely abated,” describing a lower-amplitude, steadier environment. He said the advisory opportunity is increasingly tied to debt maturities, amend-and-extend transactions, covenant work, and liability management exercises, and added that “bankruptcies have gotten very expensive,” contributing to efforts to avoid formal filings.

Bednar also commented on software-related activity, saying he expects the “software complex will absolutely see increased activity,” though he did not expect a sudden wave of bankruptcies. He framed the catalyst as refinancing needs and new issuance activity tied to transactions as maturities approach and valuations reset.

Energy M&A slows as oil prices rise amid conflict

Wolfe Research’s Brendan O’Brien asked about energy and the impact of higher oil and gas prices on dealmaking. Bednar said M&A activity tends to slow when oil prices exceed $90, and that the market has been limited recently. “I think there's only been 8 transactions in energy announced all year, and I think there's only 3 above $1 billion,” he said, calling the market “very, very, very limited” as companies focus on operations amid war and what he called a significant oil shock.

Bednar said there are “very, very active” discussions about what happens when the “fog of war lifts,” adding he views the slowdown as temporary and expects consolidation when prices settle to levels that enable companies to plan around longer-term mid-cycle assumptions.

Europe focus sharpened with planned Gleacher Shacklock acquisition

Bednar said the firm’s recently announced acquisition of Gleacher Shacklock is intended to strengthen its U.K. presence, calling the U.K. “the largest advisory market in Europe.” He said the addition “changes that overnight,” describing Gleacher Shacklock as one of the most respected independent advisory firms in the U.K., with more than 20 years of relationships across FTSE 250 corporates, sovereign wealth funds, pension funds, and sponsors.

According to Bednar, Gleacher Shacklock will add five partners, including two “still in ramp mode,” and the firm expects their productivity to increase with access to Perella Weinberg’s global platform. He also emphasized cultural alignment, citing shared values of “trust, integrity, and teamwork,” and said repeat clients are a significant part of Gleacher Shacklock’s business.

On the call, Bednar also highlighted other recent growth initiatives, including adding talent across the firm and launching a private funds advisory business through the Devon Park acquisition.

When asked about Europe’s outlook, Bednar said Europe is grappling with uneven impacts from the war, including vulnerability to energy price shocks, but he also cited a broader “reimagining of Europe's position in the world” that is affecting defense budgets and cross-border regulation. He said these shifts could support larger transactions, and that increased dialogue around “the art of the possible” is constructive for the advisory industry. Still, he said he does not expect Europe’s fee pool to surpass the U.S., though it could recover toward historical contribution levels after a decade of being “historically low.”

Costs, capital return, and dividend

CFO and COO Alex Gottschalk said first-quarter revenue included “just over $10 million” related to closings that occurred within the first two days of the second quarter but were recorded in the first quarter under accounting rules.

Gottschalk said the adjusted compensation margin was 79% of revenues, above the firm’s intended 67% level discussed on its prior call. She attributed the higher margin to the lower revenue base, a higher non-bonus compensation base, and the timing of RSU vesting that was “concentrated in the first quarter.” She added that excluding the bonus decrease, compensation expense rose year-over-year due to higher cash compensation and equity amortization tied to investments in new hires and higher headcount. As revenues increase, she said the firm expects the compensation margin to moderate and return to the historical target range by year-end, noting a similar dynamic occurred in the first quarter of 2024.

Adjusted non-compensation expense was $37 million, down 24% year-over-year, which Gottschalk said was “a direct result of prudent cost management.” She said the firm still expects a single-digit percentage decline in full-year non-comp expense versus 2025.

On capital management, Gottschalk said the firm returned nearly $64 million to equity holders in the quarter through dividends and RSU settlements. Perella Weinberg ended the quarter with $78 million in cash and no debt. The company declared a quarterly dividend of $0.07 per share.

Bednar closed the call by thanking employees and reiterating confidence in the firm’s direction, while acknowledging results may remain variable as Perella Weinberg continues to build scale.

About Perella Weinberg Partners NASDAQ: PWP

Perella Weinberg Partners L.P. is a global, partner-led advisory firm specializing in strategic and financial counsel. Founded in 2006 by Joseph R. Perella and Peter Weinberg—both veterans of leading Wall Street institutions—the firm delivers independent advice on mergers and acquisitions, financing, restructuring and capital markets. As an independent entity, it emphasizes senior banker involvement throughout every transaction, ensuring clients benefit from depth of experience and continuity of service.

The firm's core offerings encompass M&A advisory, debt and equity financing, corporate restructuring and capital markets solutions.

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