Infinity Natural Resources - CL | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 16.79 B

Revenue: As of FY2025 Q2, the actual value is USD 16.79 B, beating the estimate of USD 83.39 M.

EPS: As of FY2025 Q2, the actual value is USD 2.13.

Institutional Securities

• Net Revenues: $7,643 million in Q2 2025, a 9% increase from $6,982 million in Q2 2024, driven by higher client activity in Equity and Fixed Income.
• Provision for Credit Losses: $168 million in Q2 2025, primarily due to portfolio growth in corporate loans and a macroeconomic outlook reflecting slower GDP growth.
• Non-Interest Expenses: $5,364 million in Q2 2025, a 10% increase from Q2 2024, due to higher compensation and non-compensation expenses.

Wealth Management

• Net Revenues: $7,764 million in Q2 2025, a 14% increase from $6,792 million in Q2 2024, driven by higher asset management and transactional revenues.
• Provision for Credit Losses: $28 million in Q2 2025, related to specific loans in the tailored lending portfolio and residential real estate loans.
• Non-Interest Expenses: $5,536 million in Q2 2025, a 12% increase from Q2 2024, primarily due to higher compensation expenses.

Investment Management

• Net Revenues: $1,552 million in Q2 2025, a 12% increase from $1,386 million in Q2 2024, driven by higher asset management fees and performance-based income.
• Non-Interest Expenses: $1,229 million in Q2 2025, a 6% increase from Q2 2024, due to higher compensation and non-compensation expenses.

Future Outlook and Strategy

• Core Business Focus: The firm aims to maintain strong performance across its business segments, with a focus on increasing client activity and managing expenses efficiently. The ROTCE goal is set at 20%.
• Non-Core Business: The firm continues to manage its balance sheet and liquidity resources to support business growth and meet regulatory requirements.