Rf Capital Group Inc. ( (GMPXF) ) has released its Q3 earnings. Here is a breakdown of the information Rf Capital Group Inc. presented to its investors.
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RF Capital Group Inc., a prominent independent wealth management firm in Canada, operates under the Richardson Wealth brand, offering strategic wealth advice and investment solutions for high net worth families and entrepreneurs, managing over $39 billion in assets across 22 offices in the country.
In the third quarter of 2024, RF Capital Group Inc. reported a 5% increase in revenue to $91.9 million, driven by a 12% growth in assets under administration (AUA), attributed to strong equity markets and successful advisor recruitment. Despite the revenue growth, the company faced a net loss from continuing operations of $2.3 million, impacting profitability.
Key financial highlights include an adjusted EBITDA decline of $4.4 million due to increased adjusted operating expenses related to leadership transition. Free cash flow available for growth decreased by 44% to $6.2 million, influenced by higher payments for advisor recruitment, while net working capital remained stable at $94.9 million.
Looking ahead, RF Capital Group aims to maintain its recruiting momentum and expects financial performance to be influenced by equity market trends, interest rate changes, and efforts to achieve operating cost efficiencies. The company plans to reinvest free cash flow towards further advisor recruitment to strengthen its position in the market.
