Stifel delivered a positive third quarter, with results surpassing Wall Street expectations and the stock responding with a significant increase. Management credited broad-based strength in both Global Wealth Management and the Institutional Group, noting that client engagement and activity across equity and fixed income markets drove performance. CEO Ronald J. Kruszewski emphasized the company’s ongoing strategy of reinvestment and platform expansion, with record client assets and a surge in investment banking activity. CFO James Marischen highlighted that both fee-based revenues and net interest income contributed to the quarter’s improved operating margins.
Is now the time to buy SF? Find out in our full research report (it’s free for active Edge members).
Stifel (SF) Q3 CY2025 Highlights:
- Revenue: $1.43 billion vs analyst estimates of $1.34 billion (16.7% year-on-year growth, 6.8% beat)
- Adjusted EPS: $1.95 vs analyst estimates of $1.85 (5.7% beat)
- Adjusted Operating Income: $302.8 million vs analyst estimates of $267 million (21.2% margin, 13.4% beat)
- Operating Margin: 21.2%, up from 17.6% in the same quarter last year
- Market Capitalization: $11.98 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Stifel’s Q3 Earnings Call
- Devin Ryan (Citizens) asked about the upside for investment banking revenues relative to prior peaks. CEO Ronald J. Kruszewski explained that while current run rates are not yet at 2021 levels, improvements in capabilities and a favorable regulatory environment support future growth, though government shutdowns have delayed IPO activity.
- Devin Ryan (Citizens) queried Stifel’s credit risk exposure in loans and CLOs. Kruszewski clarified that Stifel focuses on low-risk lending primarily to high net worth clients, and CFO James Marischen noted the firm’s CLO portfolio is comprised entirely of highly rated tranches, minimizing risk.
- William Katz (TD Cowen) questioned incremental margin potential in the Institutional Group. Marischen stated that margins could improve by up to 10 percentage points, driven by operational leverage and cost efficiencies, with Kruszewski highlighting ongoing restructuring as a driver.
- Steven Chubak (Wolfe Research) inquired about the sustainability of strong fixed income results and adviser recruitment. Kruszewski attributed fixed income momentum to increased integration and market normalization, while noting adviser recruiting remains robust due to Stifel’s platform and culture.
- Brennan Hawken (Bank of Montreal) asked about Stifel’s attractiveness as an acquisition target. Kruszewski reiterated there is no intention to sell, emphasizing the company’s long-term strategy and continued market share gains.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) continued adviser recruitment and client asset inflows in the wealth management segment, (2) conversion of investment banking pipelines into closed deals as market conditions evolve, and (3) the effectiveness of ongoing expense management and operational improvement initiatives. Progress in these areas will be key indicators of Stifel’s ability to sustain profitable growth.
Stifel currently trades at $117.55, up from $112.32 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
