Oct 29, 2026 earnings call — M&A-driven revenue rebound and backlog
Perella Weinberg reported third quarter revenues of $251 million, up 53% from a year ago.
Revenue $0.3B (est $0.2B) · EPS $0.39 (est $0.17)
Key quotes
"The momentum in our business has moved from pipeline into announcements and it is steadily converting into revenue."
"This year, we have added 14 partners and 13 managing directors, including the Gleacher Shacklock team, and we intend to continue adding talent that broadens our client coverage and expands our product capabilities, consistent with our strategy and our brand."
"Our adjusted compensation margin for the first 9 months was 67%, in line with last year and with our full year target."
Analyst Q&A 3
When announced deals convert to revenue
Q (Devin Ryan · Citizens Bank): He asked how quickly announced and pending backlog will convert to revenue and what gives greater visibility into 2027. He also asked what is driving the backlog build, where the firm will add scale or capability, and expectations for partner recruiting over the next 12-18 months.
A: Not all announced and pending backlog will hit in 2026; some will move into 2027, most are timing differences not closing risk, and much should convert within one to two quarters. Bednar said the build reflects clients engaging and the ramp of recent hires and partners (more than 30% of the partnership here less than 3 years), plus two recent acquisitions, and that the firm will focus on expanding client coverage and selective product capabilities while being cautious on geography and continuing to add partners where additive.
"So not all of that announced and pending will hit in 2026." — Andrew Bednar (CEO·CHAIR)
full-year comp target and deal-market focus
Q (Alexander Bond · KBW): He asked how sensitive the 67% full-year compensation target is to deal slippage into early 2027. He also asked about expectations for large-cap strategic activity in 2027 and whether current activity levels are sustainable.
A: Management said they remain committed and very focused on a 67% full-year comp ratio based on their modeling. Bednar said the mega-cap (above $10 billion) market is narrow (about 70 transactions), while the $1 billion to $5 billion segment is much larger (close to 1,000 transactions) and more attractive for volume and fee realization, so they feel good about that market segment.
"Based on all the modeling we're doing and our expectation about where we're going to land at year-end, we're still committed and very focused on 67% as our full year comp ratio." — Andrew Bednar (CEO·CHAIR)
higher rates and elections' effect on deals
Q (James Yaro · Goldman Sachs): He asked how higher interest rates would impact the business and which parts of the firm would be affected. He also asked whether midterm elections are affecting client or sponsor deal plans and what election results could mean for deal activity.
A: Bednar said the impact depends on the path of rate increases: a steady trajectory can be absorbed and markets could handle another 50 to 75 basis points, but a sharp step-up would hurt valuations and highly levered transactions (including some private equity deals). On midterms, he said they have not seen evidence clients are accelerating or delaying deals for elections and that firms and clients are not spending much time on midterms unless there is a surprise to the base case.
"I think as long as we're on a trajectory versus something that's more of a violent move up, I think the markets will absorb another 50 to 75 basis points of Fed funds increase." — Andrew Bednar (CEO·CHAIR)