Adjusted net revenues for Q2 2025 were $405 million with an 18.1% operating margin and adjusted EPS of $2.95, all higher compared to the same period last year.
Advisory revenues were $206 million during the quarter, up 12% year-over-year, driven by a broad set of products and higher average fees.
Compensation ratio was 62% for Q2 and 62.2% for the first half, improved from prior periods due to increased net revenues.
Corporate financing revenues were $35 million, down 31% from the year ago period, completing 26 financings raising $10 billion for clients.
Equity brokerage revenues were $58 million, up 12% year-over-year, with 2.9 billion shares traded for over 1,200 clients.
Fixed income revenues were $54 million, up 21% from Q1 and 37% from the year ago period, driven by depository client activity.
GAAP results included a $5 million restructuring charge related to headcount reductions and vacated office space from the Aviditi Advisors acquisition.
Municipal financing revenues were $42 million, up 66% year-over-year, exceeding market issuance growth of 15%.
Net revenues for the first half of 2025 totaled $789 million, operating income was $142 million with an 18% margin, and diluted EPS was $7.04.
Non-compensation expenses excluding reimbursed deal costs were $69 million for Q2, up 6% year-over-year, driven by legal and professional fees.
Hippo achieved positive net income from operating activities for the first time, with Q2 net income of $1 million and adjusted net income of $17 million, reflecting a $41 million and $37 million improvement respectively compared to Q2 2024.
Hippo reported gross written premium growth of 16% year-over-year to $299 million in Q2 2025, driven by organic growth and new hybrid fronting programs.
Operating expenses decreased by 16% year-over-year, falling from 46% to 30% of revenue, demonstrating improved operating leverage.
Revenue increased 31% year-over-year to $117 million, supported by a 12% growth in gross earned premium and a 9 percentage point increase in premium retention to 39%.
The consolidated net loss ratio improved significantly by 46 percentage points year-over-year to 47%, aided by underwriting actions, claims improvements, and favorable reserve developments.
Dafinchi