SIEBERT FINANCIAL CORP (SIEB)
SIC breadcrumb: Finance, Insurance, And Real Estate > Security And Commodity Brokers, Dealers, Exchanges, And Services > SIC 6211 Security Brokers, Dealers & Flotation Companies
SEC company page: https://www.sec.gov/edgar/browse/?CIK=65596. Latest filing source: 0001213900-26-036500.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 94,202,000 | USD | 2025 | 2026-03-30 |
| Net income | 5,121,000 | USD | 2025 | 2026-03-30 |
| Assets | 759,042,000 | USD | 2025 | 2026-03-30 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000065596.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 9,812,000 | 13,110,000 | 30,036,000 | 42,777,000 | 54,872,000 | 67,507,000 | 50,102,000 | 71,514,000 | 83,901,000 | 94,202,000 | |||
| Net income | -2,869,000 | -5,578,000 | 2,157,000 | 4,284,000 | 2,975,000 | 5,033,000 | -2,990,000 | 7,844,000 | 13,303,000 | 5,121,000 | |||
| Operating income | -5,828,000 | -6,624,000 | -3,092,000 | -5,578,000 | 2,310,000 | 6,582,000 | 440,000 | 18,126,000 | 17,468,000 | 5,566,000 | |||
| Diluted EPS | 0.16 | -0.06 | 0.21 | 0.33 | 0.13 | ||||||||
| Operating cash flow | -3,261,000 | 1,452,000 | 4,866,000 | 24,352,000 | 96,717,000 | 5,543,000 | -24,615,000 | -4,804,000 | 10,053,000 | 10,242,000 | |||
| Capital expenditures | 38,000 | 417,000 | 277,000 | 1,010,000 | 13,000 | 296,000 | 284,000 | 223,000 | 223,000 | 552,000 | |||
| Assets | 3,816,000 | 6,025,000 | 18,177,000 | 538,067,000 | 1,372,987,000 | 1,404,235,000 | 728,048,000 | 801,800,000 | 519,668,000 | 759,042,000 | |||
| Liabilities | 1,563,000 | 813,000 | 1,003,000 | 504,932,000 | 1,335,001,000 | 1,353,729,000 | 678,128,000 | 731,091,000 | 434,576,000 | 669,882,000 | |||
| Stockholders' equity | 2,253,000 | 5,212,000 | 17,174,000 | 33,135,000 | 37,986,000 | 49,263,000 | 48,949,000 | 69,720,000 | 84,086,000 | 89,160,000 | |||
| Cash and cash equivalents | 2,730,000 | 3,765,000 | 7,229,000 | 4,670,000 | 3,632,000 | 3,758,000 | 23,672,000 | 5,735,000 | 32,629,000 | 22,408,000 | |||
| Free cash flow | -3,299,000 | 1,035,000 | 4,589,000 | 23,342,000 | 96,704,000 | 5,247,000 | -24,899,000 | -5,027,000 | 9,830,000 | 9,690,000 |
Ratios
| Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | -56.85% | 16.45% | 10.01% | 5.42% | 7.46% | -5.97% | 10.97% | 15.86% | 5.44% | ||||
| Operating margin | -56.85% | 17.62% | 9.75% | 0.88% | 25.35% | 20.82% | 5.91% | ||||||
| Return on equity | -247.58% | 41.39% | 12.93% | 7.83% | 10.22% | -6.11% | 11.25% | 15.82% | 5.74% | ||||
| Return on assets | -146.17% | 35.80% | 0.80% | 0.22% | 0.36% | -0.41% | 0.98% | 2.56% | 0.67% | ||||
| Liabilities / equity | 0.69 | 0.16 | 0.06 | 15.24 | 35.14 | 27.48 | 13.85 | 10.49 | 5.17 | 7.51 | |||
| Current ratio | 1.03 | 1.02 | 1.02 | 1.05 | 1.07 | 1.15 | 1.10 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-15. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000065596.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 0.02 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 0.03 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 0.10 | reported discrete quarter | ||
| 2023-Q2 | 2023-03-31 | 3,215,000 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 17,592,000 | 0.07 | reported discrete quarter | |
| 2023-Q3 | 2023-06-30 | 2,728,000 | reported discrete quarter | ||
| 2023-Q3 | 2023-09-30 | 18,050,000 | 0.07 | reported discrete quarter | |
| 2023-Q4 | 2023-12-31 | 19,702,000 | -856,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 20,456,000 | 3,687,000 | 0.09 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 3,687,000 | reported discrete quarter | ||
| 2024-Q2 | 2024-06-30 | 20,863,000 | 0.10 | reported discrete quarter | |
| 2024-Q3 | 2024-06-30 | 4,047,000 | reported discrete quarter | ||
| 2024-Q3 | 2024-09-30 | 22,560,000 | 0.10 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 20,022,000 | 1,735,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 28,919,000 | 8,661,000 | 0.22 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 8,661,000 | reported discrete quarter | ||
| 2025-Q2 | 2025-06-30 | 14,874,000 | -0.12 | reported discrete quarter | |
| 2025-Q3 | 2025-06-30 | -4,719,000 | reported discrete quarter | ||
| 2025-Q3 | 2025-09-30 | 26,847,000 | 0.04 | reported discrete quarter | |
| 2025-Q4 | 2025-12-31 | 23,562,000 | -445,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 23,470,000 | -1,972,000 | -0.05 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001213900-26-057679.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion provides a narrative of our financial performance and condition that should be read in conjunction with the accompanying financial statements and related notes included under Part I, Item 1 of this Report. In addition to our historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in our 2025 Form 10-K, particularly in Part I, Item 1A – Risk Factors. Overview We are primarily a financial services company and provide a wide variety of financial services to our clients. We operate in business lines such as retail brokerage, investment advisory, insurance, and technology development through our wholly-owned subsidiaries. We also operate a media, sports and entertainment business, although financial services remains our primary business. Results in the businesses in which we operate are highly correlated to general economic conditions and, more specifically, for our financial services businesses, to the direction of the U.S. equity and fixed-income markets. Market volatility, overall market conditions, interest rates, economic, political, and regulatory trends, industry competition, and, with respect to our media, sports and entertainment business, consumer demand for music and entertainment content, are among the factors which could affect us and which are unpredictable and beyond our control. These factors affect the financial decisions made by market participants who include investors and competitors, impacting their level of participation in the financial markets. In addition, in periods of reduced financial market activity, or lower revenue generation from our developing business lines, profitability is likely to be adversely affected because certain expenses remain relatively fixed, including salaries and related costs, as well as portions of communications costs and occupancy expenses. Accordingly, earnings for any period should not be considered representative of earnings to be expected for any other period. Financial Overview 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. 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. 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. Investment in Equity Security 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. 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. - 28 - Green Pier Clearing Agreement RISE executed a fully disclosed clearing agreement with Green Pier, an indirect wholly-owned subsidiary of FMR, effective February 27, 2026. We believe the relationship will provide access to advanced clearing infrastructure and technology solutions that enhance operational capabilities, scalability, and system reliability, supporting the development and execution of RISE’s broker-dealer activities. Refer to Note 1 - Organization and Basis of Presentation for further information. Arqitech Investment 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. Media Partnership 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. Segments We manage our business through the following reportable segments: ● Financial Services ● Media, Sports, and Entertainment Segment results are evaluated based on operating income, which reflect the manner in which management assesses performance and allocates resources. Financial Services Three Months Ended March 31, 2026 2025 Commissions and fees $ 2,325,000 $ 2,102,000 Interest, marketing and distribution fees 5,874,000 6,945,000 Principal transactions and proprietary trading 3,928,000 12,961,000 Investment banking 1,573,000 — Market making 545,000 552,000 Stock borrow / stock loan 6,831,000 4,837,000 Advisory fees 1,010,000 748,000 Other income 1,041,000 774,000 Total Revenue 23,127,000 28,919,000 Significant segment expenses: Employee compensation and benefits 15,643,000 11,922,000 Clearing fees, including execution costs 597,000 454,000 Technology and communications 1,799,000 1,105,000 Other general and administrative 1,395,000 1,499,000 Data processing 1,286,000 949,000 Rent and occupancy 417,000 451,000 Professional fees 1,617,000 1,344,000 Depreciation and amortization 677,000 415,000 Interest expense 218,000 89,000 Advertising and promotion 580,000 154,000 Total Expenses 24,229,000 18,382,000 Operating income (loss) $ (1,102,000 ) $ 10,537,000 - 29 - 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. 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.” Other than the above, the primary factors impacting results in the Financial Services segment included the following: ● Higher stock borrow / stock loan revenues, driven by higher activity levels in that business line. ● Higher investment banking revenues, primarily due to increased investment banking fee activity. ● Lower interest-related revenue, primarily due to a decline in interest rates compared to the prior-year period. ● Higher commission and payout expenses, primarily associated with increased investment banking and stock borrow / stock loan revenue. ● Higher personnel expenses, driven by the continued expansion of our business lines. ● Higher technology costs, reflecting continued investment in platforms, infrastructure, and technology initiatives. ● Higher advertising and promotion expense, reflecting increased marketing, brand, and business development spend. Media, Sports and Entertainment Three Months Ended March 31, 2026 2025 Music and artist services revenue $ 248,000 $ — NIL revenue 95,000 — Total Revenue 343,000 — Significant segment expenses: Employee compensation and benefits 529,000 — Technology and communications 6,000 — Other general and administrative 160,000 10,000 Rent and occupancy 37,000 16,000 Professional fees 81,000 15,000 Depreciation and amortization 13,000 — Goodwill impairment 330,000 — Intangible asset impairment 454,000 — Advertising and promotion 320,000 — Music production, manufacturing and distribution costs 178,000 — Total Expenses 2,108,000 41,000 Operating income (loss) $ (1,765,000 ) $ (41,000 ) 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. The primary factors impacting results in the Media, Sports and Entertainment segment included the following: ● Personnel and related employee costs associated with building the segment’s operating capabilities and the growth of the business. ● Continued expenses associated with the growth of music production and operations ● NIL-related revenue and associated commission payout expenses, which represented a smaller component of segment activity during the period. ● Increased investment in artist development, including enhanced content production, marketing initiatives, and promotional activities to support emerging talent. ● Continued investment in catalogue and brand development, as management seeks to build a foundation for future recorded music, streaming, licensing, servicing, and other revenue opportunities. ● Impairment charges, including goodwill impairment related to the Media, Sports and Entertainment reporting unit and intangible asset impairment related to a specific artist contract intangible asset. - 30 - A portion of the segment’s costs are fixed or semi-fixed in nature, including personnel, administrative sup [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
ITEM 7. MANAGEMENT’S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included in Part II, Item 8 - Financial Statements and Supplementary Data of this Report. In addition to our historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Report, particularly in Part I, Item 1A - Risk Factors. Overview We are primarily a financial services company and provide a wide variety of financial services to our clients. We operate in business lines such as retail brokerage, investment advisory, insurance, and technology development through our wholly-owned and majority-owned subsidiaries. We also operate a smaller Media, Entertainment, and Sports segment that provides talent management and related services. This segment represents a limited portion of our overall operations, and its results may vary based on the timing of projects and broader industry conditions. Results in the businesses in which we operate are highly correlated to general economic conditions and, more specifically, to the direction of the U.S. equity and fixed-income markets. Market volatility, overall market conditions, interest rates, economic, political, and regulatory trends, and industry competition are among the factors which could affect us, and which are unpredictable and beyond our control. These factors affect the financial decisions made by market participants who include investors and competitors, impacting their level of participation in the financial markets. In addition, in periods of reduced financial market activity, profitability is likely to be adversely affected because certain expenses remain relatively fixed, including salaries and related costs, as well as portions of communications costs and occupancy expenses. Accordingly, earnings for any period should not be considered representative of earnings to be expected for any other period. Financial Overview In 2025, earnings per share were $0.13, compared to earnings per share of $0.33 in 2024. In 2025, our net revenues were $94.2 million and net income was $5.1 million, compared to net revenues of $83.9 million and net income of $13.3 million in 2024. Financial highlights as of December 31, 2025: ● Retail customer net worth increased by 9% to $19.5 billion compared to 2024 ● Revenue related to stock borrow / stock loan increased by 51% to 29.0 million compared to 2024 ● Revenue related to principal transactions and proprietary trading increased by 20% to $17.5 million compared to 2024 Investment in Equity Security In the first quarter of 2025, Siebert participated in a private placement and acquired restricted shares of a privately held U.S. company (the “Investment in Equity Security”). In June 2025, after the lifting of contractual sale restrictions, Siebert sold the majority of its Investment in Equity Security for an average price of $19.00 per share, with the remaining position sold by August 2025. Siebert recognized a total realized gain related to this transaction of $2.4 million for the year ended December 31, 2025. Developments in 2025 Acquisition of BMLG Assets To expand upon our 2024 acquisition of GM, in the second quarter of 2025, we acquired certain assets from BMLG related to music masters, including associated copyrights and artwork. 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. 20 NIL Revenue In the third quarter of 2025, we began earning a new revenue stream relating to Name, Image and Likeness (“NIL”) negotiation services on behalf of student-athletes with university athletic departments or NIL collectives totaling $594,000 in the year ended December 31, 2025. RISE Transaction Siebert purchased the remaining 32% ownership interest in RISE on October 28, 2025, for $3.7 million. After the transaction, RISE became a wholly-owned subsidiary of Siebert, which allows Siebert to fully benefit from any future operations and economic benefit of this subsidiary. Refer to Note 5 – RISE for further information. Agreement with NFS Effective September 29, 2025, MSCO amended its clearing agreement with NFS, extending the term of the arrangement through October 1, 2030. As part of the amendment, Siebert received a one-time $4.8 million business development credit. Refer to Note 15 – Deferred Contract Incentive and Note 20 – Commitments, Contingencies and Other for additional detail. Segments We manage our business through the following reportable segments: ● Financial Services ● Media, Sports, and Entertainment Segment results are evaluated based on operating income, which reflect the manner in which management assesses performance and allocates resources. Financial Services 2025 2024 Commissions and fees $ 8,941,000 $ 9,615,000 Interest, marketing and distribution fees 27,624,000 32,407,000 Principal transactions and proprietary trading 17,479,000 14,616,000 Investment banking 769,000 — Market making 2,196,000 2,255,000 Stock borrow / stock loan 29,034,000 19,249,000 Advisory fees 3,324,000 2,369,000 Other income 3,625,000 3,390,000 Total Revenue 92,992,000 83,901,000 Significant segment expenses: Employee compensation and benefits 57,541,000 43,999,000 Clearing fees, including execution costs 2,149,000 1,607,000 Technology and communications 5,243,000 3,940,000 Other general and administrative 6,382,000 4,465,000 Data processing 3,989,000 3,200,000 Rent and occupancy 1,788,000 1,631,000 Professional fees 5,669,000 5,501,000 Depreciation and amortization 2,341,000 1,380,000 Interest expense 452,000 262,000 Advertising and promotion 686,000 348,000 Total Expenses 86,240,000 66,333,000 Operating income $ 6,752,000 $ 17,568,000 21 Financial services operating income decreased year over year primarily due to: ● Higher personnel expenses driven by the launch and expansion of new business lines ● Lower interest income on customer balances resulting from declining interest rates ● Increased technology expenditures and higher general and administrative costs ● Partially offset by: ○ Higher revenues from stock loan and stock borrow activities ○ Increased principal transaction revenues attributable to market conditions and the gain on investment in equity security Management continues to focus on: ● Expanding into complementary growth areas such as investment banking, to diversify revenue and reduce reliance on transaction-based brokerage activity ● Investing in technology through both internal innovation and strategic partnerships to modernize our platforms, enhance automation, and support scalable growth. ● Driving disciplined expense management and operational efficiency initiatives to improve margins and long-term profitability. Media, Sports and Entertainment 2025 2024 Music and artist services revenue $ 616,000 $ — NIL revenue 594,000 — Total Revenue 1,210,000 — Significant segment expenses: Employee compensation and benefits 934,000 — Technology and communications 12,000 — Other general and administrative 197,000 23,000 Rent and occupancy 67,000 — Professional fees 364,000 77,000 Depreciation and amortization 58,000 — Advertising and promotion 397,000 — Music production, manufacturing and distribution costs 367,000 — Total Expenses 2,396,000 100,000 Operating income (loss) $ (1,186,000 ) $ (100,000 ) 22 Media, Sports and Entertainment operating income decreased year over year primarily due to: ● Expenses associated with the first full year of music production and operations ● Onboarding and related personnel costs associated with integrating the marketing and distribution team from BMLG ● Increased investment in artist development, including enhanced content production, marketing initiatives, and promotional activities to support emerging talent. Management continues to focus on: ● Investing in the development of new artists and talent while maximizing the commercial potential of established, high-performing creators. ● Expanding recurring, service-based revenue streams to enhance revenue stability and predictability. ● Growing its NIL athlete pipeline through targeted sourcing, relationship development, and brand partnership opportunities. Management notes that this segment did not contribute positively to operating results during the years ended December 31, 2025 and 2024, which is consistent with expectations for early-stage record labels. Management believes these expenditures are essential to building the label’s catalogue and brand, and anticipates that future revenues from recorded music sales, streaming, and licensing will drive profitability over time. While there is no assurance regarding the timing or magnitude of future earnings, we expect this segment to have positive impact on operating results as our catalogue develops and athlete pipeline expands. Trends and Key Factors Affecting our Operations Market Risk Market risk is our risk of loss resulting from the impact of changes in market prices on our trading inventory and investment positions. We have exposure to market risk primarily through our broker-dealer trading operations. Through our broker-dealer subsidiary, we trade debt obligations and equity securities and maintain trading inventories to ensure availability of securities to facilitate client transactions. Inventory levels may fluctuate daily as a result of client demand. Our primary market risks relate to interest rates and equity prices. Equity risk results from changes in prices of equity securities, affecting the value of the equity securities and other instruments that derive their value from a particular stock. We may enter into underwriting commitments and, as a result, we may be subject to market risk on any unsold securities issued in the offerings to which we are committed. Risk exposure is controlled by limiting our participation, the transaction size, or through the syndication process. Interest Rates We are exposed to market risk from changes in interest rates. Such changes in interest rates primarily impact revenue from interest, marketing, and distribution fees. We primarily earn interest, marketing and distribution fees from margin interest charged on clients’ margin balances, interest on cash and securities segregated for regulatory purposes, and distribution fees from money market mutual funds in clients’ accounts. Securities segregated for regulatory purposes consist solely of U.S. government securities. If prices of U.S. government securities within our portfolio decline, we anticipate the impact to be temporary as we intend to hold these securities to maturity. We seek to mitigate this risk by managing the average maturities of our U.S. government securities portfolio and setting risk parameters for securities owned, at fair value. 23 The following table presents simulated changes to net interest revenue over the next 12 months beginning December 31, 2025 and 2024 of a gradual increase or decrease in market interest rates relative to prevailing market rates at the end of each reporting period: As of December 31, 2025 2024 Increase of 200 basis points 34 % 32 % Increase of 100 basis points 18 % 18 % Increase of 50 basis points 9 % 11 % Decrease of 50 basis points (7 )% (4 )% Decrease of 100 basis points (15 )% (11 )% Decrease of 200 basis points (31 )% (26 )% The difference in our simulated incremental increases and decreases in the market interest rates as of December 31, 2025 compared to 2024 is primarily due to an increase in the proportion of segregated cash to segregated securities. Technology Initiatives 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 the year ended December 31, 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. Client Account and Activity Metrics The following tables set forth metrics we use in analyzing our client account and activity trends for the periods indicated. Client Account Metrics – Retail Customers As of December 31, 2025 2024 Retail customer net worth (in billions) $ 19.5 $ 18.0 Retail customer margin debit balances (in billions) $ 0.4 $ 0.4 Retail customer credit balances (in billions) $ 0.5 $ 0.4 Retail customer money market fund value (in billions) $ 1.0 $ 0.8 Retail customer accounts 166,217 160,054 ● Retail customer net worth represents the total value of securities and cash in the retail customer accounts after deducting margin debits ● Retail customer margin debit balances represent credit extended to our customers to finance their purchases against current positions ● Retail customer credit balances represent client cash held in brokerage accounts ● Retail customer money market fund value represents all retail customers accounts invested in money market funds ● Retail customer accounts represent the number of retail customers 24 Consolidated Statements of Operations and Financial Condition Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024 Revenue Commissions and fees for the year ended December 31, 2025 were $8,941,000 and decreased by $674,000 from the corresponding period in the prior year, primarily due to market conditions. Interest, marketing and distribution fees for the year ended December 31, 2025 were $27,624,000 and decreased by $4,783,000 from the corresponding period in the prior year primarily due to a decline in interest rates. Principal transactions and proprietary trading for the year ended December 31, 2025 were $17,479,000 and increased by $2,863,000 from the corresponding period in the prior year, primarily due to market conditions and the gain on our Investment in Equity Security. Investment banking for the year ended December 31, 2025 was $769,000 which was a new business line in 2025. Market making for the year ended December 31, 2025 was $2,196,000 and decreased by $59,000 from the corresponding period in the prior year. Stock borrow / stock loan for the year ended December 31, 2025 was $29,034,000 and increased by $9,785,000 from the corresponding period in the prior year, primarily due to a growth in stock locate services and securities lending businesses. Advisory fees for the year ended December 31, 2025 were $3,324,000 and increased by $955,000 from the corresponding period in the prior year, primarily due to growth in platform assets. Other income for the year ended December 31, 2025 was $4,835,000 and increased by $1,445,000 from the corresponding period in the prior year, primarily due to new revenue from our media, sports and entertainment segment. Operating Expenses Employee compensation and benefits for the year ended December 31, 2025 were $58,475,000 and increased by $14,476,000 from the corresponding period in the prior year, primarily due to an increase in commission payouts as well as additional personnel related to technology initiatives, expansion into investment banking and servicing active trader customers, and other new business lines. Clearing fees, including execution costs for the year ended December 31, 2025 were $2,149,000 and increased by $542,000 from the corresponding period in the prior year, primarily due to increased market activity. Technology and communications expenses for the year ended December 31, 2025 were $5,255,000 and increased by $1,315,000 from the corresponding period in the prior year, primarily due to additional software costs and an expansion of technological infrastructure. Other general and administrative expenses for the year ended December 31, 2025 were $6,946,000 and increased by $2,458,000 from the corresponding period in the prior year primarily due to the start-up cost and expansion of new business lines. Data processing expenses for the year ended December 31, 2025 were $3,989,000 and increased by $789,000 from the corresponding period in the prior year, primarily due to expansion of technology infrastructure. Rent and occupancy expenses for the year ended December 31, 2025 were $1,855,000 and increased by $224,000 from the corresponding period in the prior year, primarily due to the expansion into new office space. Professional fees for the year ended December 31, 2025 were $6,033,000 and increased by $455,000 from the corresponding period in the prior year, primarily due to increase in accounting and legal fees. 25 Depreciation and amortization expenses for the year ended December 31, 2025 were $2,399,000 and increased by $1,019,000 from the corresponding period in the prior year, primarily due to an increase in amortization for the technology projects placed in service. Interest expense for the year ended December 31, 2025 was $452,000 and increased by $190,000 from the corresponding period in the prior year primarily related to the termination agreement with Kakaopay in 2024. Refer to Note 6 – Kakopay Transaction for further information. Advertising and promotion expenses for the year ended December 31, 2025 were $1,083,000 and increased by $735,000 from the corresponding period in the prior year, primarily due to an increase in marketing initiatives. Provision For (Benefit From) Income Taxes The provision for income taxes for the year ended December 31, 2025 was $445,000 and decreased by $3,720,000 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 year over year. Refer to Note 16 – Income Taxes for additional detail. Net Income (Loss) Attributable to Noncontrolling Interests The net income attributable to noncontrolling interests for the year ended December 31, 2025 was $0 and decreased by $17,000 from the corresponding period in the prior year due to lower income in RISE. As further discussed in Note 2 – Summary of Significant Accounting Policies, we consolidate RISE’s financial results into our consolidated financial statements and reflect the portion of RISE that was previously not held by Siebert as a noncontrolling interests in our consolidated financial statements. As of December 31, 2025, RISE was wholly-owned by Siebert. Consolidated Statements of Financial Condition as of December 31, 2025 and 2024 Assets Assets as of December 31, 2025 were $759,042,000 and increased by $239,374,000 from December 31, 2024, primarily due to an increase in securities borrowed partially offset by a decrease in cash and cash equivalents and cash and securities segregated for regulatory purposes. Liabilities Liabilities as of December 31, 2025 were $669,882,000 and increased by $235,306,000 from December 31, 2024, primarily due to an increase in securities loaned and payables to customers. Liquidity and Capital Resources Overview As of December 31, 2025, a significant portion of our assets were liquid in nature, providing us with flexibility in financing our business. A significant portion of our assets not held by customers or used for stock borrow / stock loan consisted primarily of cash and cash equivalents, and securities owned, at fair value, which are marked-to-market daily, and receivables from and deposits with broker-dealers and clearing organizations. We expect to use our available cash, cash equivalents, and potential future borrowings under our debt agreements and potential issuance of new debt or equity, to support and invest in our core business, including investing in new ways to serve our customers, potentially seeking strategic acquisitions to leverage existing capabilities, and for general capital needs (including capital, deposit, and collateral requirements imposed by regulators and SROs). 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. 26 Cash and Cash Equivalents Our cash and cash equivalents were $22.4 million and $32.6 million as of December 31, 2025 and 2024, respectively. EWB Credit Agreement 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 December 31, 2025, $5 million was outstanding related to the above EWB Credit Agreement. The interest expense for this credit line was $41,000 and $0 for the years ended December 31, 2025 and 2024, respectively. The interest rate was 7.5% for this credit facility during the year ended December 31, 2025. The Company did not use this credit facility during the year ended December 31, 2024. BMO Credit Agreement On November 22, 2024, MSCO entered into a Credit Agreement (the “BMO Credit Agreement”) with BMO Harris Bank (“BMO Harris”). The BMO Credit Agreement provides for a revolving credit facility of up to $20,000,000. We may use any borrowings under the BMO Credit Agreement to finance NSCC Deposit Requirements (other than an Adequate Assurance Deposit) and withdrawals from a Reserve Account. As part of the agreement, we entered into a Parent Guaranty agreement guaranteeing repayment of any debt issued to MSCO. 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. We were in compliance with the requirements of the BMO Credit Agreement as of December 31, 2025. Other Debt Agreements We have $4.1 million outstanding on our mortgage with East West Bank and an unutilized line of credit for short term overnight demand borrowing of up to $25 million with BMO Harris as of December 31, 2025. As of December 31, 2025, we were in compliance with all covenants related to our debt agreements. Cash Requirements The following table summarizes our short and long-term material cash requirements as of December 31, 2025. Payments Due by Period 2026 2027 2028 2029 2030 Thereafter Total Operating lease commitments $ 1,233,000 $ 885,000 $ 568,000 $ 58,000 $ — $ — $ 2,744,000 Kakaopay fee (1) 1,000,000 — — — — — 1,000,000 Mortgage with East West Bank (2) 91,000 95,000 98,000 112,000 117,000 3,627,000 4,140,000 Broadridge contract (3) 170,000 — — — — — 170,000 Total $ 2,494,000 $ 980,000 $ 666,000 $ 170,000 $ 117,000 $ 3,627,000 $ 8,054,000 (1) Pursuant to the Settlement Agreement with Kakaopay, we are obligated to pay Kakaopay a fee of $5 million payable in ten quarterly installments that began in the first quarter of 2024. Refer to Note 6 – Kakaopay Transaction for further detail. (2) On December 30, 2021, we purchased the Miami office building and financed part of the purchase price with a mortgage with East West Bank. (3) In June 2023, we entered into an amendment to its service agreement with Broadridge Securities Processing Solutions, LLC with a total minimum expense of approximately $1.2 million for this arrangement. 27 Shelf Registration Statement; At the Market Offering On May 30, 2025, we filed a shelf registration statement on Form S-3 that was declared effective by the SEC on June 9, 2025 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. 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 year ended December 31, 2025, we did not sell any shares pursuant to this Sales Agreement. Refer to Note 20 – Commitments, Contingencies and Other for additional detail. As of the filing of this Report, we will be subject to General Instruction I.B.6 of Form S-3 known as the “baby shelf rules.” Under the baby shelf rules, the aggregate market value of securities we can sell through primary public offerings of securities in any 12-month period using our registration statement on Form S-3 is limited to one-third of the aggregate market value of the shares of our common stock held by non-affiliates. Therefore, we will be limited in the amount of proceeds we are able to raise by selling shares of our common stock using our Form S-3 so long as our public float is less than $75 million. Net Capital, Reserve Accounts, Segregation of Funds, and Other Regulatory Requirements MSCO is subject to the Uniform Net Capital Rules of the SEC (Rule 15c3-1) and the Customer Protection Rule (15c3-3) of the Exchange Act and maintains capital and segregated cash reserves in excess of regulatory requirements. Requirements under these regulations may vary; however, MSCO has adequate reserves and contingency funding plans in place to sufficiently meet any regulatory requirements. In addition to net capital requirements, as a self-clearing broker-dealer, MSCO is subject to cash deposit and collateral requirements with clearing houses, such as Depository Trust and Clearing Corporation (“DTCC”) and the Options Clearing Corporation (“OCC”), which may fluctuate significantly from time to time based upon the nature and size of clients’ trading activity and market volatility. RISE, as a member of FINRA, is subject to the SEC Uniform Net Capital Rule 15c3-1 and the corresponding regulatory capital requirements. MSCO can transfer funds to Siebert as long as it maintains its liquidity and regulatory capital requirements. RISE can transfer funds to Siebert as long as RISE maintains its liquidity and regulatory capital requirements. For the years ended December 31, 2025 and 2024, MSCO and RISE had sufficient net capital to meet their respective liquidity and regulatory capital requirements. Refer to Note 17 – Capital Requirements for more detail on our capital requirements. Cash Flows Cash provided by and used in operating activities consisted of net income (loss) adjusted for certain non-cash items. Net operating assets and liabilities at any specific point in time are subject to many variables, including variability in customer activity, the timing of cash receipts and payments, and vendor payment terms. The total changes in our consolidated statements of cash flows, especially our operating cash flow, are not necessarily indicative of the ongoing results of our business as we have customer assets and liabilities on our consolidated statements of financial condition. For the year ended December 31, 2025, cash provided by operating activities increased by $0.2 million compared to 2024, which was primarily driven by the net changes in securities loaned and borrowed, receivables and payables to customers and non-customers, securities segregated for regulatory purposes, and other working capital adjustments. For the year ended December 31, 2025, cash used in investing activities increased by $0.6 million compared to 2024, which was primarily driven by our investment in IQvestment Holdings, LLC, (“FusionIQ”). FusionIQ, partially offset by a decrease in investments in software development costs and office facilities in 2025. For the year ended December 31, 2025, cash flows provided by financing activities increased by $1.4 million compared to 2024, which was primarily driven by a short-term bank loan partially offset by the purchase of RISE interests. 28 Long Term Contracts Effective August 1, 2021, MSCO entered into an amendment to its clearing agreement with NFS that, among other things, extended the term of their arrangement for an additional four-year period commencing on August 1, 2021 and ending July 31, 2025. As part of this agreement, we received a one-time business development credit of $3 million, and NFS paid us four annual credits of $100,000 over the term of the agreement. Refer to Note 15 – Deferred Contract Incentive and Note 20 – Commitments, Contingencies and Other for additional detail. 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 December 31, 2025, we do not expect to terminate the contract with NFS before the end of the contract term. For the years ended December 31, 2025 and 2024, there was no expense recognized for any early termination fees. Refer to Note 15 – Deferred Contract Incentive and Note 20 – Commitments, Contingencies and Other for additional detail. 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. Off-Balance Sheet Arrangements 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 years ended December 31, 2025 and 2024. Refer to Note 18 – Financial Instruments with Off-Balance Sheet Risk for additional detail. Uncertain Tax Positions We account for uncertain tax positions in accordance with the authoritative guidance issued under ASC 740-10, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740-10 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure requirements. We recognize interest and penalties related to unrecognized tax benefits on the provision for income taxes line in the statements of operations. Accrued interest and penalties would be included on the related tax liability line in the statements of financial condition. As of both December 31, 2025 and 2024, we recorded an uncertain tax position of $63,000 and $1,354,000, respectively, related to various tax matters, which is included in the line item “Taxes payable” in the statements of financial condition. 29 Tax Legislation On July 4, 2025, OBBBA was enacted and introduced several taxpayer-favorable modifications including making key changes to provisions originally enacted under the Tax Cuts and Jobs Act (“TCJA”) of 2017. These modifications include: (i) restoration of the tax adjusted EBITDA standard as the limitation for interest expense deductibility under Section 163(j) for tax years beginning after December 31, 2024; (ii) repeal of the mandatory capitalization and amortization of domestic research and experimental expenditures under Section 174 and the adoption of immediate expensing for domestic R&E costs under new Section 174A for tax years beginning after December 31, 2024; (iii) permanent reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025. Although the OBBBA had many taxpayer-favorable provisions, the OBBBA did not have a material impact on our effective tax rate. Critical Accounting Policies and Estimates We generally follow accounting policies standard in the brokerage industry and believe that our policies appropriately reflect our financial position and results of operations. Our management team makes significant estimates that affect the reported amounts of assets, liabilities, and expenses, and the related disclosure of contingent assets and liabilities included in the consolidated financial statements. The estimates relate primarily to expense items in the normal course of business as to which we receive no confirmations, invoices, or other documentation, at the time the books are closed for a period. We use our best judgment, based on our knowledge of expenses incurred, to estimate the amount of such expenses. We are not aware of any material differences between the estimates used in closing our books for the periods presented and the actual amounts of expenses incurred when we subsequently receive the actual confirmations, invoices or other documentation. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of our consolidated financial statements requires us to make judgments and estimates that may have a significant impact on our financial results. We believe that the critical accounting policies listed below are particularly subject to management’s judgments and estimates and could materially affect our results of operations and financial position. Refer to Note 2 – Summary of Significant Accounting Policies for additional detail on our significant accounting policies. Estimates of effective income tax rates, uncertain tax positions, deferred income taxes and related valuation allowances We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the consolidated financial statements and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize deferred taxes in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with FASB ASC Topic 740 – “Improvements to Income Tax Disclosures” (“Topic 740”) on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits on the provision for income taxes line in the consolidated statements of operations. Accrued interest and penalties would be included on the related tax liability line in the consolidated statements of financial condition. 30 Disregarded entities and income tax treatment Starting in 2024, both MSCO and SNXT are single member limited liability companies that will be treated as disregarded entities for tax purposes. As such, both MSCO and SNXT will no longer be subject to direct taxation and will be disregarded by the relevant tax authorities. The guidance in Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes specifies that an entity is not required to allocate income tax provision to a legal entity that is both not subject to tax and disregarded by the taxing authority, but an entity may elect to do so. MSCO and SNXT are not making the available election to allocate income taxes. Accordingly, on a prospective basis, MSCO and SNXT will no longer record current or deferred income taxes. New Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We have adopted ASU 2023-09 prospectively on our annual income tax disclosures for the annual period ending December 31, 2025. The standard expanded the disclosures provided in our annual financial statements, particularly in the rate reconciliation and cash taxes paid sections, but the adoption did not have a material effect on our consolidated results of operations, financial position, or cash flows. Recent Accounting Pronouncements Refer to Note 2 – Summary of Significant Accounting Policies for information regarding new Accounting Standards Updates (“ASU”s) issued by the FASB.