SIEBERT FINANCIAL CORP Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how Siebert Financial Corp (SIEB) performed this year. My goal is to turn complex filings into plain English so you can decide if this company fits your investment goals.

1. What does this company do?

Siebert is a financial firm with over 55 years of history. They started as a discount broker, but they now offer a wide range of services, including retirement accounts, wealth management, and corporate stock plans.

They also operate a Media, Sports, and Entertainment division. This arm manages "Name, Image, and Likeness" (NIL) deals for college athletes and buys music catalogs to earn royalty payments, using these unique assets to attract new clients to their financial services.

2. Financial performance: The 2025 Snapshot

It was a mixed year. While revenue grew to $94.2 million from $83.9 million in 2024, profit fell as the company increased spending on staff and their new digital platform.

• Profit: They earned $5.1 million in 2025, down 61.6% from $13.3 million in 2024.
• Earnings per share: This dropped to $0.13 from $0.33 the previous year.

The bright spots:

• Customer Wealth: The total net worth of their retail clients grew 9% to $19.5 billion.
• Stock Lending: Revenue from lending securities to other firms jumped 51% to $12.8 million.
• Trading: Revenue from their own trading increased 20% to $8.4 million.

3. Major wins and strategic shifts

Siebert is actively evolving beyond traditional stock brokerage:

• Full Ownership of RISE: They bought the remaining 32% of their subsidiary, RISE Financial Services, for $3.7 million. They now retain 100% of the profits from this digital banking and clearing business.
• NIL Revenue: Helping college athletes negotiate deals brought in $594,000, marking a new revenue stream for the sports division.
• Music Assets: They acquired music rights for artists like Daughtry and Sammy Hagar, which generated $1.2 million in royalties this year.

4. Financial health

Siebert maintains strict cash reserves to protect client assets, holding $42.5 million in cash at the end of 2025. The company has not paid dividends in 2024 or 2025, as management is currently prioritizing reinvestment into growth and acquisitions.

5. Key risks for investors

• Cybersecurity: As a digital-first firm, they face constant threats; a data breach could impact their reputation and bottom line.
• Market Sensitivity: Profits are tied to the stock market. If market activity slows or interest rates drop, income often shrinks while operating costs remain fixed.
• Stock Volatility: The stock is "thinly traded," meaning fewer shares change hands. This can lead to larger price swings, which may make it harder to buy or sell large positions quickly.
• Legal/Regulatory: The company is subject to ongoing audits and has set aside $1.5 million to cover potential legal settlements.

6. Future outlook

Siebert is in a growth phase. Management believes that integrating finance with sports and media will help them capture a younger demographic. Their strategy involves reinvesting profits into their "SiebertNow" digital platform and pursuing further acquisitions to scale the business.

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Investor Takeaway: Siebert is currently trading profitability for growth. If you are interested in this company, consider whether you believe their "finance-meets-entertainment" strategy will successfully attract the next generation of investors, and whether you are comfortable with the volatility that comes with a smaller, thinly traded stock.