Canaccord Genuity Group Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jeff Fenwick - Cormark Securities Inc - Analyst : Hi. Good morning, everyone. So Dan, I wanted to start with the regulatory provision in the quarter, it is a pretty sizable amount. Could you just speak to capital position and your ability to fund that? Do you still require raising some debt here? Or how is that going to be managed?

Question: Jeff Fenwick - Cormark Securities Inc - Analyst : That's helpful. And then obviously, alongside of that, as you mentioned, reorienting the business, trying to change some of the risk exposures. I think you referred to that comment. I assume that's in part related to the divestment of the trading desk, the wholesale trading group there. With that closing, is there any way you could provide us some color, even just backward looking on what top line contribution that group made and the related expenses? Any color you can add that might help us with modeling that going forward?

Question: Jeff Fenwick - Cormark Securities Inc - Analyst : And then in terms of responding to these market demand -- market conditions that are evolving, I know there's been a focus on expanding advisory. Is there more work to do in the US, maybe reorienting the focus of that segment now? Maybe cutting some areas and adding others? Or where do you feel you are in that process?

Question: Jeff Fenwick - Cormark Securities Inc - Analyst : Okay. Thank you. And I can't leave without asking about UK Wealth Management. I know there's lots of rumors and speculation. Clearly, you're clearly featuring it in your slides there on the time line and giving us an EBITDA number that you obviously want us to zero in on. So just maybe it's a bigger picture question here. What are you and the Board thinking in terms of strategic direction going forward? If you were to surface value and exit a market like the UK, that would be a very significant change for the continuation of the run rate of the business. So does that -- is there another area to focus growth on another market? It just -- you'd be giving up obviously the largest contributor to your earnings. Clearly, it's servicing some big value. But what would you think that would do with respect to the strategy going forward for Canaccord?

Question: Jeff Fenwick - Cormark Securities Inc - Analyst : Okay. Thanks. I appreciate that. I had to ask. I'll pass it along. Thank you.

Question: Rob Goff - Ventum Financial Corp - Analyst : Okay. Thank you. Thank you Jeff for asking the tough questions upfront. So my question will turn down to Australia. Could you talk to the integration time line strategy with Wilsons? And you often build into momentum and the momentum is certainly in Australia. Can you talk to further inorganic growth in that region?

Question: Rob Goff - Ventum Financial Corp - Analyst : Thank you. And you mentioned in your remarks the rationalization of the Canadian wealth marketplace and where you're seeing opportunities. Could you perhaps talk to how that's impacting your efforts and pipeline?

Question: Rob Goff - Ventum Financial Corp - Analyst : Thank you and good luck.

Question: Stephen Boland - Raymond James Holdings (Canada) Inc - Analyst : Morning, everyone. Maybe -- Nadine, maybe you could just dig into the impairment a little bit. I know you're saying US Capital Markets. But is it specific to one of the subsidiaries that you purchased, Petsky or Sawaya? Like I'm just trying to get an idea of is it just a widespread impairment or it's specific to certain segments?

Question: Stephen Boland - Raymond James Holdings (Canada) Inc - Analyst : Okay. I mean, when I look at the revenue trend, this is probably your second highest revenue quarter for the last few years, I think. Profitability seems to be tough to be consistent. So I'm wondering what you can do in the US to -- there's still another $100 million of goodwill, I think, allocated to that division. So I'm just curious like how do you drive the profitability going forward? Like is $112 million of revenue the breakeven number that you have to do just to breakeven? Or is there triggers that you can pull here?

Question: Stephen Boland - Raymond James Holdings (Canada) Inc - Analyst : Okay. That's great color. And then the second thing I just -- I'll turn to Australia. And obviously, the revenue is pretty strong, mostly mining. So I'm just curious on the financing, which accounts or jurisdictions are buying these deals? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2025 / 2:00PM, CF.TO - Q2 2026 Canaccord Genuity Group Inc Earnings Call And the reason I ask is because I think in the past, you've said if Asian accounts are coming into buying Australian deals and especially mining deals, that's a very bullish sign and could lengthen the timeline of having a bullish market there. So I'm just curious if that's occurring.

Question: Stephen Boland - Raymond James Holdings (Canada) Inc - Analyst : I'll ask one more just on the Canadian Wealth Management, the expansion in the margin. Revenue -- AUM continues to go up, revenue continues to go up, but the expenses seem to be managed pretty well. Is that something that we can continue to expect that, that margin will continue to expand?

Question: Stephen Boland - Raymond James Holdings (Canada) Inc - Analyst : Okay. That's it for me. Thank you very much.