Canaccord Genuity reports fourth-quarter and fiscal 2026 results

Canada NewsWire Excluding significant items, quarterly earnings per common share of $0.48 (1) Increased quarterly dividend 17.6 % to $ 0.10 per common share TORONTO , June 3, 2026 /CNW/ - Canaccord Genuity Group Inc. (Canaccord Genuity Group, the Company) (TSX: CF) today announced its financial results for the fourth quarter and fiscal year ended March 31, 2026. "We delivered record revenue in fiscal 2026 and significantly improved profitability, reflecting stronger operating leverage and disciplined execution across the platform," said Dan Daviau, Chairman & CEO of Canaccord Genuity Group Inc. "Capital markets growth was led by higher investment banking and advisory activity, while wealth management continued to scale, supported by market appreciation, targeted investment and positive inflows. Our improved earnings profile and continued focus on disciplined capital allocation supported our decision to increase the dividend, while preserving the flexibility to invest in the areas of the business where we see the strongest opportunities to create long-term shareholder value." Fourth quarter and fiscal 2026 highlights (adjusted): (All dollar amounts are stated in thousands of Canadian dollars and on an adjusted basis excluding significant items ( 1 ) unless otherwise indicated) Fourth quarter revenue of $612.7 million, an increase of 33.2% over the same period in the prior fiscal year and the third highest quarterly revenue on record Fiscal 2026 revenue of $2.2 billion increased by 24.9% year over year Global wealth management operations earned record quarterly revenue of $306.7 million and record revenue of $1.1 billion for fiscal 2026, year-over-year improvements of 28.4% and 24.2%.

Fourth quarter growth in the Australian wealth management operations reflects contributions from the acquisition of Wilsons Advisory Global capital markets revenue for the fourth quarter of $291.6 million improved 37.3% year-over-year, primarily attributable to higher investment banking, advisory fees and commissions and fees revenue. Fiscal 2026 revenue in this division improved by 25.8% year-over-year to $1.0 billion Total client assets in the global wealth management division increased by 22.8% year-over-year to $147.8 billion. Growth reflects year-over-year increases of 30.4% in Canada, 7.0% in the UK & Crown Dependencies, and 113.2% in Australia Fourth quarter net income before taxes of $89.1 million, an increase of 176.3% or $56.8 million year-over-year Fiscal 2026 net income before taxes of $262.8 million, an increase of 76.2% or $113.7 million compared to fiscal 2025 Canaccord Genuity Group's global wealth management division contributed net income before taxes of $45.2 million in the fourth quarter and $195.2 million in fiscal 2026, year-over-year increases of 9.6% and 31.0% Canaccord Genuity Group's global capital markets division contributed net income before taxes of $58.3 million in the fourth quarter and net income before taxes of $140.9 million in fiscal 2026, representing improvements of $57.3 million and $97.1 million compared to the same periods of last year Diluted earnings per common share for the fourth fiscal quarter of $0.48, an increase of 300.0% from the same period in the prior year   Diluted earnings per share for fiscal 2026 amounted to $1.26, an increase of 106.6% compared the prior fiscal year On an IFRS basis, revenue of $615.9 million in Q4/26 increased 33.5% year-over-year.  Fourth quarter net income before taxes of $97.7 million improved 434.3% year-over-year.  Diluted earnings per common share of $0.61 compared to a diluted loss per common share of $0.01 in Q4/25 On an IFRS basis, fiscal 2026 revenue was $2.2 billion, an increase of 26.5% compared to the prior fiscal year.

Net loss before taxes was $8.5 million compared to net income before taxes of $53.5 million for fiscal 2025.  Diluted loss per common share of $1.45 compared to a diluted loss per common share of $0.30 in the prior year Fourth quarter common share dividend of $0.10 per share increased 17.6 % Update on media speculation regarding UK wealth management operations  On October 17, 2025, at the request of its regulators, the Company issued a statement in response to media coverage speculating about a potential transaction involving its U.K. Wealth Management business ("CGWM UK"), which had contributed to increased volatility in the Company's share price. As previously disclosed, the Company continues to assess a range of strategic options for CGWM UK and has engaged in discussions with various counterparties.

These activities are being conducted in the context of, among other things, the rights of the strategic and financial minority partner and that partner's investment horizon, prevailing market and execution conditions, and other relevant industry and business factors. At this time the Company's activities with respect to CGWM UK have been limited to discussions and the assessment of potential strategic opportunities as described above. The Company expects these discussions and assessments to continue on an ongoing basis and there is no fixed timeline for completion.

The valuation, structure, or terms of any transaction that may ultimately occur could differ materially from those speculated upon in media coverage or implied by other market, analyst, or transaction activity. CGWM UK is a leading wealth management business in the United Kingdom and Crown Dependencies, a meaningful contributor to the Company's results, and one in which the Company continues to see value as part of its global wealth management operations. The Company does not intend to provide further comment on this matter unless and until it determines that further disclosure is necessary or appropriate.

Core business performance highlights: Canaccord Genuity Wealth Management The Company's combined global wealth management operations earned record quarterly revenue of $306.7 million for the fourth fiscal quarter, a year-over-year increase of 28.4%.This increase was largely attributable to higher quarterly commissions and fees revenue of $248.2 million, which increased by 30.3% year-over-year, reflecting higher contributions from all geographies, in addition to higher investment banking revenue in the Canadian and Australian operations stemming from increased retail participation in new issues. Enhanced performance in the Australian operations was partially attributable to the acquisition of Wilsons Advisory, which was completed on October 1, 2025. Fiscal 2026 revenue in this division amounted to $1.1 billion, an increase of 24.2% compared to the prior fiscal year.

Net income before taxes excluding significant items ( 2 ) increased by 9.6% year-over-year to $45.2 million during Q4/26 and by 31.0% year-over-year to $195.2 million for fiscal 2026, representing a new fiscal year record. Wealth management operations in the UK & Crown Dependencies generated fourth quarter revenue of $127.4 million, an increase of 8.3% compared to the same period last year. Commissions and fees revenue improved by 12.1% year-over-year to $105.4 million.

Net income before taxes excluding significant items (1) reached $23.1 million in Q4/26, down 16.3% year-over-year. Fiscal 2026 revenue in this business increased by 14.0% year-over-year to $512.8 million, and net income before taxes excluding significant items (1) increased by 9.3% year-over-year to $110.4 million, representing a new  record. Normalized EBITDA (1)(2) , a commonly used operating metric for this business, was £22.0 million for the three months ended March 31, 2026 and £88.4 million for fiscal 2026, increases of 4.8% and 12.4% compared to the same periods in the prior year.

Canaccord Genuity Wealth Management (North America) generated record quarterly revenue of $130.3 million, a year-over-year increase of 29.8%, mainly driven by higher commissions and fees and investment banking revenue, which increased by 26.9% and 143.1%, respectively, compared to the same period of the prior year. Excluding significant items (1) , net income before taxes in this business amounted to $18.8 million in Q4/26, an increase of 47.9% compared to Q4/25. Fiscal 2026 revenue increased by 22.8% to $460.4 million, and net income before taxes excluding significant items (1) of $69.5 million increased by 61.4% year-over-year.  Normalized EBITDA (1)(2) in this business was $26.7 million for the three months ended March 31, 2026 and $96.8 million for fiscal 2026, increases of 38.7% and 40.7%, respectively.

Wealth management operations in Australia generated quarterly revenue of $49.0 million reflecting an increase of 134.7% compared to the fourth quarter of last year. Commissions and fees revenue increased by 132.9% year-over-year to $44.5 million and investment banking revenue increased by 182.4% to $4.0 million. Excluding significant items ( 1) , net income before taxes in this business amounted to $3.3 million in Q4/26, up from $1.0 million in Q4/25.

Fiscal 2026 revenue increased by 87.1% to $150.1 million, of which $34.1 million was attributable to the acquisition of Wilsons Advisory which was completed on October 1, 2025. This business generated record net income before taxes excluding significant items (1) of $15.3 million in fiscal 2026, an increase of 209.5% year-over-year. Total client assets in the Company's global wealth management division at the end of the fourth fiscal quarter amounted to a record $147.8 billion, a year-over-year increase of $27.4 billion or 22.8%.

Client assets (1) in the UK & Crown Dependencies reached $74.1 billion (£40.3 billion) as at March 31, 2026, a year-over-year increase of 7.0% (an increase of 8.1% in local currency) primarily attributable to market growth and positive net new asset flows, partially offset by foreign exchange movement.  On a sequential basis, client assets (1) decreased by 0.7% from $74.6 billion (£40.4 billion) from the previous quarter primarily attributable to a decrease market values partially offset by net new asset flows. Client assets (1) in North America reached a new record of $55.7 billion as at March 31, 2026, an increase of 30.4% from $42.7 billion from March 31, 2025 and an increase of 5.6% from December 31, 2025. The year-over-year increase was attributable to increases in market values, positive net flows and recruitment activity.

The quarter-over-quarter increase mainly driven by positive net flows and increases in market values. Client assets (1) in Australia reached a new record of $18.0 billion (AUD 18.8 billion) as at March 31, 2026, an increase of 113.2% from the fourth quarter of fiscal 2025 and an increase of 3.6% from $17.4 billion (AUD 19.0 billion) at December 31, 2025. Approximately $7.0 billion of the year-over-year increase was attributable to the acquisition of Wilsons Advisory.

In addition, client assets (1) totalling $23.9 billion (AUD 24.9 billion) are also held on record in less active and transactional accounts through our Australian platform. Canaccord Genuity Capital Markets On a consolidated basis, Canaccord Genuity Capital Markets earned revenue excluding significant items (1)  of $291.6 million for the fourth fiscal quarter, a year-over-year increase of 37.3%, primarily due to stronger contributions from investment banking and advisory activities, which increased by 161.3% and 32.0%, respectively. Fiscal 2026 revenue excluding significant items (1) increased by 25.8% to $1.0 billion, reflecting increases in investment banking and commissions and fees revenue.

Investment banking revenue for the three-month period amounted to $104.8 million, improving by 161.3% compared to Q4/25. The increase was largely driven by our Canadian and Australian operations, which contributed $50.3 million and $33.6 million for Q4/26, representing year-over-year increases of 294.3% and 174.1%, respectively. Fiscal 2026 investment banking revenue of $412.1 million increased by 92.7% year-over-year, with the largest contributions coming from Australia and Canada, primarily reflecting a strong period for capital raising activities within the metals and mining sector, with improving contributions from other core focus sectors.

During fiscal 2026, Canaccord Genuity Capital Markets participated in 472 investment banking transactions globally, raising total proceeds of $63.2 billion. Advisory revenue for the three-month period amounted to $118.8 million, an increase of 32.0% compared to Q4/25. The U.S. business was the largest contributor, representing $58.0 million or 48.8% of total advisory fees in Q4 2026, up 5.8% year-over-year.

The Canadian capital markets business contributed $42.3 million of total advisory revenue in Q4/26, an increase of 313.1% year-over-year. Advisory revenue of $312.0 million for fiscal 2026 increased by 1.8% year-over-year and represents the third highest annual revenue on record for this business line. Commissions and fees revenue increased by 26.1% year-over-year to $53.0 million for the three-month period and by 24.7% to $190.0 million for the fiscal year as revenue increased across all the core operations.

Trading revenue decreased by 80.6% year-over-year to $6.1 million in Q4/26 and by 21.8% in fiscal 2026. The decrease was largely due to lower revenue earned from the US operations, reflecting the sale of the US wholesale market making business, which was completed on November 7, 2025. Excluding significant items ( 1 ) , the global capital markets division recorded net income of $58.3 million for the quarter compared to   $1.0 million in the same period a year ago.

Fiscal 2026 net income excluding significant items (1) was $140.9 million, an increase of 221.9% compared to fiscal 2025. Summary of Corporate Developments On January 14, 2026, the Company announced that, through its US capital markets business, it has acquired Carbon Reduction Capital, LLC, a leading provider of M&A project finance and capital raising services in the US across the renewable energy spectrum with dedicated experience in the wind, solar, storage, carbon capture and energy transition segments. On March 6, 2026, the Company entered into final settlement agreements with each of the US Securities and Exchange Commissions ("SEC"), the Financial Industry Regulatory Authority ("FINRA"), and the Financial Crimes Enforcement Network ("FinCen"), resolving all previously disclosed enforcement actions related to these matters.

The final settlement is $109.4 million (US$ 80.0 million), of which $6.8 million (US$5.0 million) is subject to suspension pending the delivery of a satisfactory suspicious activity reporting lookback review pursuant to the terms of the FinCEN Consent Order. As of March 31, 2026, the Company has paid $102.6 million (US$75.0 million) of the settlement amount, consistent with expectations, with the remaining suspended amount not payable if the lookback review is deemed satisfactory. Results for the Fourth Quarter of Fiscal 2026 were impacted by the following significant items: Fair value adjustment of the non-controlling interest derivative liability Fair value adjustment of convertible debentures derivative liability Fair value adjustment of a CGWM UK management incentive plan Fair value adjustment of contingent consideration related to previous acquisitions Fair value adjustments on certain warrants and illiquid or restricted marketable securities recorded for IFRS reporting purposes in prior periods net of adjustments recorded in the current period, but which are excluded for management reporting purposes and are not used by management to assess operating performance Amortization of intangible assets acquired in connection with business combinations Certain incentive-based costs related to acquisitions in US and UK capital markets and CGWM UK Acquisition-related costs Professional fees Certain components of the non-controlling interest expense associated with CGWM UK Summary of Results for Q4 and Fiscal 2026 and Selected Financial Information Excluding Significant Items (1) Financial Condition Common and Preferred Share Dividends:   On June 3, 2026, the Board of Directors approved a dividend of $0.10 per common share, payable on June 30, 2026, with a record date of June 19, 2026.   On June 3, 2026, the Board approved a cash dividend of $0.25175 per Series A Preferred Share payable on June 30, 2026, to Series A Preferred shareholders of record as at June 19, 2026.   On June 3, 2026, the Board approved a cash dividend of $0.42731 per Series C Preferred Share payable on June 30, 2026, to Series C Preferred shareholders of record as at June 19, 2026.   Non-IFRS Measures Certain non-IFRS measures, non-IFRS ratios and supplementary financial measures are utilized by the Company as measures of financial performance.

Non-IFRS measures, non-IFRS ratios and supplementary financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Management believes that these non-IFRS measures, non-IFRS ratios and supplementary financial measures allow for a better evaluation of the operating performance of the Company's business and facilitate meaningful comparison of results in the current period to those in prior periods and future periods. Non-IFRS measures presented in this earnings release include certain figures from our statement of operations that are adjusted to exclude significant items.

Although figures that exclude significant items provide useful information by excluding certain items that may not be indicative of the Company's core operating results, a limitation of utilizing these figures that exclude significant items is that the IFRS accounting effects of these items do in fact reflect the underlying financial results of the Company's business. Accordingly, these effects should not be ignored in evaluating and analyzing the Company's financial results. Therefore, management believes that the Company's IFRS measures of financial performance and the respective non-IFRS measures should be considered together.

Non-IFRS Measures (Adjusted Figures) Figures that exclude significant items provide useful information by excluding certain items that may not be indicative of the Company's core operating results. Financial statement items that exclude significant items are non-IFRS measures. To calculate these non-IFRS financial statement items, we exclude certain items from our financial results prepared in accordance with IFRS.

The items which have been excluded are referred to herein as significant items. The following is a description of the composition of the non-IFRS measures used in this earnings release (note that some significant items excluded may not be applicable to the calculation of the non-IFRS measure for each comparative period): (i) revenue excluding significant items, which is revenue per IFRS excluding any applicable fair value adjustments on certain illiquid or restricted marketable securities, warrants and options as recorded for IFRS reporting purposes but which are excluded for management reporting purposes and are not used by management to assess operating performance; (ii) expenses excluding significant items are expenses per IFRS less any applicable amortization of intangible assets acquired in connection with a business combination, acquisition-related expense items, certain incentive-based costs related to the acquisitions and growth initiatives of Canaccord Genuity Wealth Management in the UK and Crown Dependencies ("CGWM UK") and the US and UK capital markets divisions, fair value adjustment of certain contingent consideration in connection with prior acquisitions, fair value adjustments to the derivative liability component of non-controlling interests in CGWM UK, fair value adjustments to the derivative liability component related to the convertible debentures; a fair value adjustment in respect of the CGWM UK management incentive plan; certain provisions and professional fees related to the US regulatory matters, impairment of goodwill in the US capital markets business; and  net gain on disposal of the US wholesale market making business (iii) overhead expenses excluding significant items, which are calculated as expenses excluding significant items less compensation expense; (iv) net income before taxes after intersegment allocations and excluding significant items, which is composed of revenue excluding significant items less expenses excluding significant items; (v) income taxes (adjusted), which is composed of income taxes per IFRS adjusted to reflect the associated tax effect of the excluded significant items, and also excludes the impairment of deferred tax assets in the US capital markets business; (vi) net income excluding significant items, which is net income before income taxes excluding significant items less income taxes (adjusted); (vii) non-controlling interests (adjusted), which is composed of the non-controlling interests per IFRS less the amortization of the equity component of the non-controlling interests in CGWM UK and adjusted as applicable under the treasury stock method when dilutive; (viii) net income attributable to common shareholders excluding significant items, which is net income excluding significant items less non-controlling interests (adjusted) and preferred share dividends paid on the Series A and Series C Preferred Shares.  Other non-IFRS measures include earnings before income taxes, interest, depreciation and amortization (EBITDA), which is net income before taxes excluding significant items and also excludes certain corporate interest revenue and corporate interest expense, depreciation and amortization and normalized EBITDA which is EBITDA excluding certain expenses of a specialized or non-recurring nature.  EBITDA does not exclude right of use assets amortization and lease interest expense. The respective figures as described in this paragraph for the Company's operating divisions are determined as described herein and are non-IFRS measures.

A reconciliation of non-IFRS measures that exclude significant items to the applicable IFRS measures from the unaudited interim condensed consolidated financial statements for the fourth quarter of fiscal 2026 can be found above in the table entitled "Summary of results for Q4 fiscal 2026 and selected financial information excluding significant items". Non-IFRS Ratios Non-IFRS ratios are calculated using the non-IFRS measures defined above. For the periods presented herein, we have used the following non-IFRS ratios: (i) total expenses excluding significant items as a percentage of revenue, which is calculated by dividing expenses excluding significant items by revenue excluding significant items; (ii) earnings per common share excluding significant items, which is calculated by dividing net income attributable to common shareholders excluding significant items by the weighted average number of common shares outstanding (basic); (iii) diluted earnings per common share excluding significant items which is calculated by dividing net income attributable to common shareholders excluding significant items  by the weighted average number of common shares outstanding (diluted); and (iv) pre-tax profit margin which is calculated by dividing net income before taxes excluding significant items by revenue excluding significant items.

Supplementary Financial Measures Client assets are supplementary financial measures that do not have any definitions prescribed under IFRS but do not meet the definition of a non-IFRS measure or non-IFRS ratio.  Client assets, which include both assets under management (AUM) and assets under administration (AUA), is a measure that is common to the wealth management business. Client assets are the market value of client assets managed and administered by the Company from which the Company earns commissions and fees.  This measure includes funds held in client accounts as well as the aggregate market value of long and short security positions. The Company's method of calculating client assets may differ from the methods used by other companies, and therefore these measures may not be comparable to other companies.

Management uses these measures to assess operational performance of the Canaccord Genuity Wealth Management business segment. ACCESS TO QUARTERLY RESULTS INFORMATION     Interested parties are invited to listen to Canaccord Genuity's fourth quarter fiscal 2026 results conference call via live webcast or a toll-free number. The conference call is scheduled for Thursday, June 4, 2026, at 8:00 a.m. Eastern time.

The conference call may be accessed live and will also be archived on a listen-only basis at: www.cgf.com/investor-relations/news-and-events/conference-calls-and-webcasts/   Analysts and institutional investors can call in via telephone at: 1-416-945-7677 (within Toronto) 1-888-699-1199 (toll free in North America) 448-002-797-040 (toll free from the United Kingdom) 612-801-71385 (within Australia) Please ask to participate in the Canaccord Genuity Group Inc. Q4/26 results call.  If a conference call ID is requested, please use 34315. A replay of the conference call will be made available from approximately two hours after the live call on June 4, 2026, until July 4, 2026, at 1-289-819-1450 or 1-888-660-6345 by entering passcode 34315 followed by the (#) key. ABOUT CANACCORD GENUITY GROUP INC.: Through its principal subsidiaries, Canaccord Genuity Group Inc. (the Company) is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets.  Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting client relationships.

We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The Company has wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. The Company's international capital markets division operates in North America, the UK & Europe, Asia, and Australia. Canaccord Genuity Group Inc. is listed under the symbol CF on the TSX.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS This earnings release may contain "forward-looking information" as defined under applicable securities laws ("forward-looking statements"). These statements relate to future events or future performance and reflect the Company's expectations, beliefs, plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including statements related to the Company's objectives, strategies, business prospects and opportunities including ongoing discussions and assessments of potential strategic opportunities involving the Company's UK Wealth Management business. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. Such forward-looking statements are based on management's current expectations, estimates and assumptions, including, without limitation, assumptions regarding the future financial performance of UKWM, the interests of the Company's strategic and financial minority partner in UKWM, the market for wealth management firms in the UK and general and industry economic and market conditions. Although the forward-looking statements contained in this earnings release are based upon assumptions that management believes are reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements.

In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, market and general economic conditions; the dynamic nature of the financial services industry; inflationary pressures; credit, market, liquidity, strategic, insurance, operational, reputation, conduct and legal, regulatory and environmental risk; currency value and interest rate fluctuations, including as a result of market and oil price volatility; the effectiveness and adequacy of our risk management and valuation models and processes; legislative or regulatory developments in the jurisdictions where we operate; climate change and other Environmental, Social and Governance (ESG) related risks; and the impact and market disruption arising from global tariffs, including potential ongoing effects on economic growth, inflationary pressures and geopolitical stability and the risks and uncertainties discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and its annual information form ("AIF") filed on www.sedarplus.ca as well as the factors discussed in the sections entitled "Risk Management" and "Risk Factors" in the AIF, which include market, liquidity, credit, operational, legal and regulatory risks. The forward-looking statements contained in this earnings release are made as of the date of this earnings release and should not be relied upon as representing the Company's views as of any date subsequent to the date of this earnings release.

Except as may be required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, further developments or otherwise.  None of the information on the Company's websites at www.cgf.com should be considered incorporated herein by reference.  SOURCE Canaccord Genuity Group Inc. View original content: http://www.newswire.ca/en/releases/archive/June2026/03/c7329.html Canada Newswire June 3, 2026 - 2:27 PM PDT News by QuoteMedia www.quotemedia.com