Focus Financial Partners, Inc. (Nasdaq: FOCS) reported total 3Q 2022 revenue of $519.9 million, an increase of 14.4% year-over-year (YoY). Here are five things you should know about this call.
- FOCS reported GAAP net income of $38.3 million in 3Q 2022, compared to $1.8 million in the prior year quarter. Q3 2022 adjusted net income (excluding tax adjustments) per share was $0.86 (2.4% YoY growth) and tax adjustments per share was $0.20 (42.9% YoY growth).
- YoY organic growth rate in Q3 2022 was 3.4%, above the projected range of 0% to 2% for the quarter. This compares to 15% organic growth in Q2 2022. Over the last 16 quarters, FOCS’ average organic growth has been 15.7%.
- Q3 2022 adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) was $128.7 million, representing 13.4%, or $15.2 million, higher than the prior year quarter. Adjusted EBITDA margin was 24.8%, above the projected outlook of 24% for the quarter – reflecting higher revenue and the variable nature of management fees.
- Of the $519.9 million in Q3 revenue, $48.4 million was from new partner firms acquired during the last twelve months. $16.9 million resulted from growth in wealth management fees at existing partner firms, including the effect of mergers completed by partner firms.
- FOCS’s merger & acquisition (M&A) activity continues to be strong, reporting 24 transactions closed or announced year-to-date, including five new partner firms and 19 mergers on behalf of partner firms. This is a 23% YoY increase in transactions. FOCS indicated that prices may be softening but the company is seeing more flexible deal structures and is confident that it has sufficient capital to support continued M&A activity through 2023.
To learn more visit – Focus Financial Reports Third Quarter 2022 Results
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