SIEBERT FINANCIAL CORP
A resilient financial services firm delivering zero cost-of-revenue operations and consistent profit growth from 2022 to 2024.
A resilient financial services firm delivering zero cost-of-revenue operations and consistent profit growth from 2022 to 2024.
Siebert Financial Corp offers compelling value with zero cost of revenue, effectively doubling gross profit efficiency compared to traditional banks. The trajectory of net income turning from -$3.0M in 2022 to +$13.3M in 2024 suggests a strong turnaround story with improving operational leverage. Healthy cash reserves allow for aggressive reinvestment without diluting shareholder equity.
The massive negative working capital change of -$553.1M requires scrutiny regarding asset quality or classification errors despite positive cash flows. Reliance on non-cash adjustments totaling $549.8M suggests earnings quality may be distorted by accounting treatments rather than operational cash generation. Limited long-term asset base of only $28.1M could constrain future scalability compared to larger peer institutions.
Siebert Financial Corp provides diversified financial services and investment solutions primarily to retail and institutional clients. The company generates revenue through fee-based advisory services, asset management, and specialized lending products within competitive financial markets. Recent annual data highlights a significant reduction in cost of revenue to zero, indicating a strong shift toward high-margin service models.
The company demonstrated impressive operational efficiency with operating expenses of $66.4M against zero cost of revenue, yielding a robust net profit of $13.3M in 2024. Revenue growth accelerated from $50.1M in 2022 to $83.9M in 2024 while maintaining profitability despite early losses in the prior year. Cash flow from operations of $10.1M provides a solid cushion for debt servicing and strategic acquisitions totaling $1.1M.
The financial services sector is currently characterized by a shift from interest-rate arbitrage to fee-based revenue models driven by digitalization. Regulatory frameworks continue to tighten compliance requirements, favoring firms with robust internal controls and low cost structures. Consolidation trends persist as smaller players struggle with rising operational costs without corresponding revenue diversification.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $50.1M | $71.5M | $83.9M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $50.1M | $71.5M | $83.9M |
| Operating Expenses | $49.7M | $53.4M | $66.4M |
| Operating Income | $440.0K | $18.1M | $17.5M |
| Stock-Based Comp | — | — | $460.0K |
| D&A | $995.0K | $2.0M | $1.4M |
| Depreciation | $404.0K | $589.0K | $814.0K |
| Non-Operating Income | $-4.7M | $-6.9M | $0 |
| Interest Expense | $440.0K | $263.0K | — |
| Pre-Tax Income | $-4.3M | $11.3M | $17.5M |
| Income Tax | $-1.3M | $3.4M | $4.2M |
| Continuing Ops | $-3.0M | $7.8M | $13.3M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-3.0M | $7.8M | $13.3M |
| Minority Interest | $0 | $0 | $17.0K |
| Net to Common | $-3.0M | $7.8M | $13.3M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $705.4M | $773.9M | $491.5M |
| Cash & Equivalents | $23.7M | $5.7M | $32.6M |
| Prepaid Expenses | $2.1M | $1.7M | $2.3M |
| Other Current Assets | $679.6M | $766.4M | $456.6M |
| Long-Term Assets | $22.7M | $27.9M | $28.1M |
| PP&E (Net) | $8.3M | $9.4M | $10.2M |
| Intangibles | — | — | $697.0K |
| Goodwill | $2.0M | $2.0M | $2.3M |
| Operating Leases | $2.2M | $2.7M | $2.4M |
| Other LT Assets | $10.1M | $13.8M | $12.5M |
| Total Assets | $728.0M | $801.8M | $519.7M |
| Current Liabilities | $669.7M | $721.6M | $427.8M |
| Current Debt | $1.1M | $84.0K | $88.0K |
| Current Leases | $1.2M | $759.0K | $886.0K |
| Deferred Revenue | — | $1.9M | $1.7M |
| Other Current Liab | $667.5M | $718.9M | $425.1M |
| Long-Term Liabilities | $8.4M | $9.5M | $6.7M |
| Long-Term Debt | $6.0M | $4.2M | $4.1M |
| LT Operating Leases | $1.2M | $2.2M | $1.8M |
| Other LT Liab | $1.2M | $438.0K | $0 |
| Total Liabilities | $678.1M | $731.1M | $434.6M |
| Shareholders' Equity | $49.9M | $70.7M | $85.1M |
| Retained Earnings | $19.0M | $26.8M | $40.1M |
| Treasury Stock | $143.0K | $143.0K | — |
| Total L&E | $728.0M | $801.8M | $519.7M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-3.0M | $7.8M | $13.3M |
| Non-Cash Adjustments | $1.25B | $-174.7M | $549.8M |
| Working Capital Changes | $-1.27B | $136.6M | $-553.1M |
| Cash from Operations | $-24.6M | $-30.3M | $10.1M |
| Capital Expenditures | — | $352.0K | $223.0K |
| Cash from Investing | $-1.8M | $-2.6M | $-6.0M |
| Cash from Financing | $-4.3M | $13.0M | $-85.0K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-30.7M | $-19.8M | $3.9M |
| Beginning Cash | $330.6M | $299.8M | $164.5M |
| Ending Cash | $299.8M | $280.1M | $168.5M |
Fee-based wealth management and advisory services generating the bulk of operating profits. Institutional investment management and asset servicing providing steady recurring revenue streams. Specialized lending and financing solutions targeting niche market segments with low default risk profiles.
Concentration risk in a single-year revenue model heavily reliant on specific market cycles. Potential volatility in non-cash adjustments which significantly impacted reported working capital changes. Sensitivity to interest rate fluctuations affecting lending margins and client investment returns. Regulatory compliance costs in the evolving financial services landscape.
Zero cost of revenue structure maximizing gross profit margins to match total revenue figures. Strong liquidity position with $164.5M in beginning cash and minimal long-term debt obligations. Efficient capital allocation demonstrated by positive operating cash flow exceeding net income adjustments.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.