Financial services firm Stifel Financial (NYSE: SF) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 16.7% year on year to $1.43 billion. Its non-GAAP profit of $1.95 per share was 3.1% above analysts’ consensus estimates.

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Chairman and Chief Executive Officer, said “Our third-quarter results once again highlight the strength of Stifel’s balanced business model and disciplined execution. We delivered record net revenue of more than $1.4 billion and $1.95 in earnings per share, the third highest in our history, driven by record results in Global Wealth Management and a 34% increase in Institutional revenue. As we enter year-end, I’m optimistic about the opportunities ahead. With record investment banking pipelines, record client assets, and an integrated wealth and banking platform that continues to gain momentum, Stifel is well positioned to build on its success.”

Company Overview

Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE: SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Stifel’s 8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average financials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Stifel’s annualized revenue growth of 11.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Stifel reported year-on-year revenue growth of 16.7%, and its $1.43 billion of revenue exceeded Wall Street’s estimates by 6.8%.

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Assets Under Management (AUM)

Assets Under Management (AUM) encompasses all client funds under a firm's investment management umbrella. The recurring fee structure on these assets provides consistent revenue generation, offering financial stability even during periods of poor investment returns, though sustained underperformance can impact future asset flows.

Stifel’s AUM has grown at an annual rate of 13.3% over the last five years, a step above the broader financials industry and faster than its total revenue. When analyzing Stifel’s AUM over the last two years, we can see that growth accelerated to 16.2% annually. Fundraising or short-term investment performance were net contributors for the company over this shorter period since assets grew faster than total revenue. Just remember that while assets are relevant to watch, we don't place too much emphasis on them because they ebb and flow with the market.

In Q3, Stifel’s AUM was $219.2 billion. This print was 18.3% higher than the same quarter last year.

Key Takeaways from Stifel’s Q3 Results

We enjoyed seeing Stifel beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 1.1% to $113.50 immediately after reporting.

Stifel put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.