CANACCORD GENUITY GROUP INC. REPORTS SECOND QUARTER FISCAL 2026 RESULTS

Excluding significant items, quarterly earnings per common share of $0.27⁽¹⁾
Second quarter dividend of $0.085 per common share

TORONTO, Nov. 13, 2025 /CNW/ - Canaccord Genuity Group Inc. (Canaccord Genuity Group, the Company) (TSX: CF) today announced its financial results for the second fiscal quarter and six months ended September 30, 2025.

"Our second quarter performance reflects strong top-line growth, underpinned by record results in wealth management, increased corporate financing, and a recovery in advisory completions," said Dan Daviau, Chairman and CEO of Canaccord Genuity Group Inc. "Although profitability in our U.S. business was impacted by an increased provision to previously disclosed regulatory matters and a non-cash goodwill impairment resulting from sustained market headwinds, our balance sheet remains solid and supports continued execution of our strategic priorities. With a strong first half, and assuming stable market conditions, we are confident in exceeding last year's performance and achieving our profitability targets for the fiscal year."

Second fiscal quarter and six-months fiscal year-to-date highlights (adjusted):

(All dollar amounts are stated in thousands of Canadian dollars and on an adjusted basis excluding significant items⁽¹⁾ unless otherwise indicated)

• Second quarter revenue of $530.4 million, an increase of 24.0% over the same period in the prior year
• Six-month fiscal year-to-date revenue of $978.9 million, an increase of 14.3% compared to the first six months of fiscal 2025
• Global wealth management operations earned record quarterly revenue of $269.4 million and six-month year-to-date revenue of $512.3 million, year-over-year improvements of 24.4% and 18.5% respectively
• Global capital markets revenue of $252.7 million improved 25.1% year-over-year, primarily attributable to higher investment banking, trading and commissions & fees revenue. Fiscal year-to-date revenue in this division improved by 11.1% year-over-year to $452.8 million
• Second quarter net income before taxes of $59.8 million, an increase of 41.4% or $17.5 million year-over-year
• CG's global wealth management division contributed net income before taxes of $52.1 million in the second quarter of fiscal 2026, a year-over-year increase of 36.4%
• CG's global capital markets division contributed second quarter net income before taxes of $25.5 million, an improvement of 71.0 % compared to the same period of last year
• Six-month year-to-date net income before taxes of $93.2 million, an increase of 20.8% or $16.1 million compared to the first six months of fiscal 2025
• Diluted earnings per common share for the second fiscal quarter of $0.27 per share, an increase of 35.0% from the same period in the prior year
• Diluted earnings per share for the first six months of fiscal 2026 amounted to $0.41, an increase of 24.2% compared to the same period in the prior year
• Total client assets⁽¹⁾ in our global wealth management division increased by 21.0% year-over-year to a new record of $133.6 billion with new highs achieved in all regions. Growth reflects year-over-year increases of 23.7% in Canada, 17.6% in the UK & Crown Dependencies, and 34.9% in Australia
• On an IFRS basis, revenue of $535.8 million in Q2/26 increased 25.0% year over year. Net loss before taxes for the second quarter of $158.5 million compared to pre-tax income of $16.9 million in Q2/25. Diluted loss per common share of $2.04 compared to a diluted loss per common share of $0.05 in Q2/25
• In anticipation of a unified resolution with its US regulators, the Company has increased its provision by US$55.0 million [C$76.6 million] to US$75.0 million [C$104.4 million] in its financial results for the fiscal quarter ended September 30, 2025, to reflect the Company's current estimate of total monetary penalties related to an expected resolution of its previously disclosed US regulatory enforcement matters. Further information has been provided in a news release dated November 13, 2025 and in Note 19 of the unaudited interim condensed consolidated financial statements for the period ended September 30, 2025
• The Company recorded a non-cash goodwill impairment charge of $110.0 million related to its US capital markets business. This charge reflects reduced business activity driven by an operating environment affected by evolving market dynamics and trade-related uncertainties, impacting revenue and profitability for this business
• On an IFRS basis, for the six months ended September 30, 2025, revenue was $984.2 million, an increase of 14.9% compared to the same period in the prior year. Year-to-date net loss before taxes was $170.5 million compared to net income before taxes of $40.4 million for the first half of fiscal 2025. Diluted loss per common share of $2.38 compared to a diluted loss per common share of $0.02 over the comparative period in the prior year
• Second quarter common share dividend of $0.085 per share

Core business performance highlights:

Canaccord Genuity Wealth Management

The Company's combined global wealth management operations earned record quarterly revenue of $269.4 million for the second fiscal quarter, a year-over-year increase of 24.4%, representing eight consecutive quarters of record revenue in this business. This increase was largely attributable to record quarterly commissions and fees revenue of $211.1 million which increased by 24.9% year-over-year, reflecting higher contributions from all geographies, in addition to higher investment banking revenues in the Canadian and Australian operations. On a year-to-date basis, revenue amounted to $512.3 million, an increase of 18.5% compared to the first half of the prior fiscal year. Net income before taxes excluding significant items⁽¹⁾ increased by 36.4% year-over-year to $52.1 million during Q2/26 and by 30.0% year-over-year to $92.9 million for the six-month period ended September 30, 2025, representing new records for both measurement periods.

• Wealth management operations in the UK & Crown Dependencies generated second quarter revenue of $129.3 million, an increase of 18.8% compared to the same period last year and represents the eighth consecutive quarter of record revenue in this business. Commissions & fee revenue improved by 24.3% year-over-year to $105.8 million. Net income before taxes excluding significant items⁽¹⁾ reached a new record of $30.4 million in Q2/26, up 20.7% year-over-year. For the six months ended September 30, 2025, revenue increased by 17.9% to $255.0 million, and net income before taxes excluding significant items⁽¹⁾ increased 25.4% year-over-year to $60.2 million, representing new records for this measurement period. Normalized EBITDA⁽¹⁾⁽²⁾, a commonly used operating metric for this business, was £22.4 million for the three months ended September 30, 2025 and £43.5 million for the first six months of fiscal 2026, increases of 23.7% and 15.9% compared to the same periods in the prior year.
• Canaccord Genuity Wealth Management (North America) generated record quarterly revenue of $111.9 million, a year-over-year increase of 27.2%. mainly driven by higher commissions & fees and investment banking revenue, which increased by 26.1% and 205.6% respectively compared to the same period of the prior year. Excluding significant items⁽¹⁾, net income before taxes was $18.5 million in Q2/26, an increase of 53.5% compared to Q2/25. For the six months ended September 30, 2025, revenue increased by 15.7% to $206.0 million, and net income before taxes excluding significant items⁽¹⁾ was $27.7 million, an increase of 30.0% year-over-year. EBITDA⁽¹⁾⁽²⁾ in this business was $24.9 million for the three months ended September 30, 2025 and $40.4 million for the first six months of fiscal 2026, increases of 41.5% and 17.7% respectively.
• Wealth management operations in Australia generated a new record of $28.2 million in fiscal second quarter revenue, an increase of 43.0% compared to the second quarter of last year. Commissions & fees revenue increased by 23.0% year-over-year to $22.5 million to a new record and investment banking revenue increased by 355.4% to $5.5 million. Excluding significant items(1), net income before taxes in this business amounted to $3.2 million in Q2/26, up from $0.9 million in Q2/25. For the six months ended September 30, 2025, revenue increased by 34.4% to $51.3 million, and net income before taxes excluding significant items⁽¹⁾ increased 132.5% year-over-year to of $5.1 million.

Total client assets in the Company's global wealth management division at the end of the second fiscal quarter amounted an increased by $23.1 billion or 21.0% from Q2/25 to a record $133.6 billion.

• Client assets⁽¹⁾ in the UK & Crown Dependencies reached a new record of $74.0 billion (£39.5 billion) as at September 30, 2025, a year-over-year increase of 17.6% (an increase of 13.6% in local currency) primarily attributable to net new assets from acquisitions, market growth, and foreign exchange movement. On a sequential basis, client assets⁽¹⁾ increased by 3.4% from $71.6 billion (£38.3 billion) from the previous quarter.
• Client assets⁽¹⁾ in North America reached a new record of $49.4 billion as at September 30, 2025, an increase of 23.7% from $39.9 billion from September 30, 2024 and an increase of 10.2% from June 30, 2025. The year-over-year increase was attributable to increases in market values, recruitment activity, and positive net flows.
• Client assets⁽¹⁾ in Australia reached a new record of $10.1 billion (AUD 11.0 billion) as at September 30, 2025, an increase of 34.9% from the second quarter of fiscal 2025 and an increase of 13.8% from $8.9 billion (AUD 10.0 billion) at June 30, 2025. In addition, client assets⁽¹⁾ totalling $15.7 billion (AUD 17.0 billion) are also held on record in less active and transactional accounts through our Australian platform.

Canaccord Genuity Capital Markets

On a consolidated basis, Canaccord Genuity Capital Markets earned revenue of $252.7 million for the second fiscal quarter, a year-over-year increase of 25.1%, primarily due to stronger contributions from investment banking activities, in addition to higher principal trading and commissions & fees revenues. For the six months ended September 30, 2025, revenue increased by 11.1% to $452.8 million, reflecting increases in investment banking, principal trading and commission & fees revenues.

Investment banking revenue of $90.6 million improved by 45.2% compared to Q1/26 and increased by 75.8% compared to Q2/25. The increase was largely driven by our Australian operations, which contributed $50.5 million for Q2/26, a year-over-year increase of 192.9% and the second highest quarterly investment banking revenue on record for this business.  Investment banking revenue in our Canadian and US operations also increased by 19.5% and 52.4% year-over-year, partially offset by a decline in our UK & Europe operations. Fiscal year-to-date, Canaccord Genuity Capital Markets participated in 194 investment banking transactions globally, raising total proceeds of $27.4 billion.

Advisory revenue of $79.4 million improved by 62.4% compared to Q1/26. The increase was primarily driven by stronger completion activity in the US business, following a slowdown in the prior quarter due to trade and policy-related uncertainties that impacted transaction volumes. The Q2/26 consolidated advisory revenue improved by 1.4% year-over-year, as increased revenue from our Canadian and UK & Europe operations was largely offset by a lower contribution from our US operations.

Trading revenue increased by 11.5% year-over-year to $30.7 million and primarily reflects contributions from our US operations, which benefited from increased trading volumes as a result of heightened volatility during the three-month period.

Commissions & fees revenue increased by 22.2% year-over-year, to $42.3 million as revenue increased across all the core operations.

Excluding significant items⁽¹⁾, our global capital markets division recorded net income of $25.5 million for the quarter compared to   $14.9 million in the same period a year ago.  For the six months ended September 30, 2025, net income excluding significant items⁽¹⁾ was $31.1 million, an increase of 11.1% compared to the first half of fiscal 2025.

Summary of Corporate Developments

• On August 20, 2025, the Company announced that through its Australian operation, it has finalized the terms of a share sale agreement to acquire all of the equity interests in the holding company of Wilsons Advisory. The acquisition was completed on October 1, 2025.
• On September 22, 2025, John Albright was appointed to the Company's board of directors as an Independent Director. With this appointment, Canaccord Genuity Group Inc.'s Board now comprises six directors, of whom five are independent.
• On November 7, 2025, Company completed its previously announced agreement to sell its U.S. wholesale market making business, further strengthening its focus on its core global advisory and ECM-led investment banking platform.
• In accordance with the terms of the previously disclosed business collaboration agreement between the Company's US capital markets business and Carbon Reduction Capital, LLC ("CRC-IB"), a US subsidiary of the Company has provided the holding company of CRC-IB with notice of its intention to acquire all the equity interests in CRC-IB. The Company's acquisition of CRC-IB remains subject to the parties mutually agreeing on and executing a definitive securities purchase agreement as well as satisfying customary closing conditions, including regulatory approvals.

Results for the Second Quarter of Fiscal 2026 were impacted by the following significant items:

• Impairment of goodwill in US capital markets business
• Impairment of deferred tax assets in the US capital markets
• Provision and professional fees related to US regulatory matters
• Fair value adjustment of the non-controlling interest derivative liability
• Fair value adjustment of convertible debentures derivative liability
• Fair value adjustment of a CGWM UK management incentive plan
• Fair value adjustment of contingent consideration related to previous acquisitions
• Fair value adjustments on certain warrants and illiquid or restricted marketable securities recorded for IFRS reporting purposes in prior periods net of adjustments recorded in the current period, but which are excluded for management reporting purposes and are not used by management to assess operating performance
• Amortization of intangible assets acquired in connection with business combinations
• Certain incentive-based costs related to acquisitions in US and UK capital markets and CGWM UK
• Acquisition-related costs
• Certain components of the non-controlling interest expense associated with CGWM UK

Summary of Results for Q2 and YTD Fiscal 2026 and Selected Financial Information Excluding Significant Items⁽¹⁾

Financial Condition

Common and Preferred Share Dividends: 

On November 13, 2025, the Board of Directors approved a dividend of $0.085 per common share, payable on December 10, 2025, with a record date of November 28, 2025.  

On November 13, 2025, the Board approved a cash dividend of $0.25175 per Series A Preferred Share payable on December 31, 2025 to Series A Preferred shareholders of record as at December 19, 2025.    

On November 13, 2025, the Board approved a cash dividend of $0.42731 per Series C Preferred Share payable on December 31, 2025 to Series C Preferred shareholders of record as at December 19, 2025.   

Non-IFRS Measures

Certain non-IFRS measures, non-IFRS ratios and supplementary financial measures are utilized by the Company as measures of financial performance. Non-IFRS measures, non-IFRS ratios and supplementary financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

Management believes that these non-IFRS measures, non-IFRS ratios and supplementary financial measures allow for a better evaluation of the operating performance of the Company's business and facilitate meaningful comparison of results in the current period to those in prior periods and future periods. Non-IFRS measures presented in this earnings release include certain figures from our statement of operations that are adjusted to exclude significant items. Although figures that exclude significant items provide useful information by excluding certain items that may not be indicative of the Company's core operating results, a limitation of utilizing these figures that exclude significant items is that the IFRS accounting effects of these items do in fact reflect the underlying financial results of the Company's business. Accordingly, these effects should not be ignored in evaluating and analyzing the Company's financial results. Therefore, management believes that the Company's IFRS measures of financial performance and the respective non-IFRS measures should be considered together.

Non-IFRS Measures (Adjusted Figures)

Figures that exclude significant items provide useful information by excluding certain items that may not be indicative of the Company's core operating results. Financial statement items that exclude significant items are non-IFRS measures. To calculate these non-IFRS financial statement items, we exclude certain items from our financial results prepared in accordance with IFRS. The items which have been excluded are referred to herein as significant items. The following is a description of the composition of the non-IFRS measures used in this earnings release (note that some significant items excluded may not be applicable to the calculation of the non-IFRS measure for each comparative period): (i) revenue excluding significant items, which is revenue per IFRS excluding any applicable fair value adjustments on certain illiquid or restricted marketable securities, warrants and options as recorded for IFRS reporting purposes but which are excluded for management reporting purposes and are not used by management to assess operating performance; (ii) expenses excluding significant items are expenses per IFRS less any applicable amortization of intangible assets acquired in connection with a business combination, restructuring costs, certain expenses related to leased premises under construction, acquisition-related expense items, which includes costs recognized in relation to both prospective and completed acquisitions, certain incentive-based costs related to the acquisitions and growth initiatives of Canaccord Genuity Wealth Management in the UK and Crown Dependencies ("CGWM UK") and the US and UK capital markets divisions, fair value adjustment of certain contingent consideration in connection with prior acquisitions, fair value adjustments to the derivative liability component of non-controlling interests in CGWM UK, fair value adjustments to the derivative liability component related to the convertible debentures; a fair value adjustment in respect of the CGWM UK management incentive plan;  certain provisions and professional fees related to the US regulatory matters, and impairment of goodwill in the US capital markets business; (iii) overhead expenses excluding significant items, which are calculated as expenses excluding significant items less compensation expense; (iv) net income before taxes after intersegment allocations and excluding significant items, which is composed of revenue excluding significant items less expenses excluding significant items; (v) income taxes (adjusted), which is composed of income taxes per IFRS adjusted to reflect the associated tax effect of the excluded significant items, and also excludes the impairment of deferred tax assets in the US capital markets business; (vi) net income excluding significant items, which is net income before income taxes excluding significant items less income taxes (adjusted); (vii) non-controlling interests (adjusted), which is composed of the non-controlling interests per IFRS less the amortization of the equity component of the non-controlling interests in CGWM UK and adjusted as applicable under the treasury stock method when dilutive; (viii) net income attributable to common shareholders excluding significant items, which is net income excluding significant items less non-controlling interests (adjusted) and preferred share dividends paid on the Series A and Series C Preferred Shares.  Other non-IFRS measures include earnings before income taxes, interest, depreciation and amortization (EBITDA), which is net income before taxes excluding significant items and also excludes certain corporate interest revenue and corporate interest expense, depreciation and amortization and normalized EBITDA which is EBITDA excluding certain expenses of a specialized or non-recurring nature.  EBITDA does not exclude right of use assets amortization and lease interest expense. The respective figures as described in this paragraph for the Company's operating divisions are determined as described herein and are non-IFRS measures.

A reconciliation of non-IFRS measures that exclude significant items to the applicable IFRS measures from the unaudited interim condensed consolidated financial statements for the second quarter of fiscal 2026 can be found above in the table entitled "Summary of results for Q2 fiscal 2026 and selected financial information excluding significant items".

Non-IFRS Ratios

Non-IFRS ratios are calculated using the non-IFRS measures defined above. For the periods presented herein, we have used the following non-IFRS ratios: (i) total expenses excluding significant items as a percentage of revenue, which is calculated by dividing expenses excluding significant items by revenue excluding significant items; (ii) earnings per common share excluding significant items, which is calculated by dividing net income attributable to common shareholders excluding significant items by the weighted average number of common shares outstanding (basic); (iii) diluted earnings per common share excluding significant items which is calculated by dividing net income attributable to common shareholders excluding significant items  by the weighted average number of common shares outstanding (diluted); and (iv) pre-tax profit margin which is calculated by dividing net income before taxes excluding significant items by revenue excluding significant items.

Supplementary Financial Measures

Client assets are supplementary financial measures that do not have any definitions prescribed under IFRS but do not meet the definition of a non-IFRS measure or non-IFRS ratio.  Client assets, which include both assets under management (AUM) and assets under administration (AUA), is a measure that is common to the wealth management business. Client assets are the market value of client assets managed and administered by the Company from which the Company earns commissions and fees.  This measure includes funds held in client accounts as well as the aggregate market value of long and short security positions. The Company's method of calculating client assets may differ from the methods used by other companies, and therefore these measures may not be comparable to other companies. Management uses these measures to assess operational performance of the Canaccord Genuity Wealth Management business segment.

ACCESS TO QUARTERLY RESULTS INFORMATION   

Interested parties are invited to listen to Canaccord Genuity's second quarter fiscal 2026 results conference call via live webcast or a toll-free number. The conference call is scheduled for Friday, November 14, 2025, at 9:00 a.m. Eastern time.

The conference call may be accessed live and will also be archived on a listen-only basis at: www.cgf.com/investor-relations/news-and-events/conference-calls-and-webcasts/ 

Analysts and institutional investors can call in via telephone at:

• 1-416-945-7677 (within Toronto)
• 1-888-699-1199 (toll free in North America)
• 448-002-797-040 (toll free from the United Kingdom)
• 612-801-71385 (within Australia)

Please ask to participate in the Canaccord Genuity Group Inc. Q2/26 results call.  If a conference call ID is requested, please use 81334.

A replay of the conference call will be made available from approximately two hours after the live call on November 14, 2025, until December 14, 2025, at 1-289-819-1450 or 1-888-660-6345 by entering passcode 81334 followed by the (#) key.

ABOUT CANACCORD GENUITY GROUP INC.:

Through its principal subsidiaries, Canaccord Genuity Group Inc. (the Company) is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets.  Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The Company has wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. The Company's international capital markets division operates in North America, the UK & Europe, Asia, and Australia.

Canaccord Genuity Group Inc. is listed under the symbol CF on the TSX.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This earnings release may contain "forward-looking information" as defined under applicable securities laws ("forward-looking statements"). These statements relate to future events or future performance and reflect the Company's expectations, beliefs, plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including statements related to potential future transactions such as any potential acquisitions or dispositions and any resolution of the US regulatory matters. Such forward-looking statements reflect management's current beliefs and are based on information currently available to the Company. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements.

In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, the trading price of the Company's shares; the Company's financial condition and earnings; market and general economic conditions (including slowing economic growth, inflation and rising interest rates); the dynamic nature of the financial services industry; the inherent uncertainty around regulatory approvals; and the risks and uncertainties discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and its annual information form ("AIF") filed on www.sedarplus.ca as well as the factors discussed in the sections entitled "Risk Management" and "Risk Factors" in the AIF, which include market, liquidity, credit, operational, legal and regulatory risks.

Although the forward-looking statements contained in this earnings release are based upon assumptions that the Company believes are reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this earnings release are made as of the date of this earnings release and should not be relied upon as representing the Company's views as of any date subsequent to the date of this earnings release. Except as may be required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, further developments or otherwise.

 None of the information on the Company's websites at www.cgf.comshould be considered incorporated herein by reference. 

SOURCE Canaccord Genuity Group Inc.