FINANCIAL SUPPLEMENT

2021 Second Quarter

July 28, 2021

TABLE OF CONTENTS

1.

COWEN INC.

- REVENUE METRICS (NON-GAAP, UNAUDITED)

- SUMMARY OPERATING AND OTHER FINANCIAL INFORMATION (NON-GAAP, UNAUDITED)

- RECONCILIATION OF US GAAP AND ECONOMIC INCOME (NON-GAAP, UNAUDITED)

2.

OPERATING CO

- REVENUE METRICS (NON-GAAP, UNAUDITED)

- SUMMARY OPERATING AND OTHER FINANCIAL INFORMATION (NON-GAAP, UNAUDITED)

3.

ASSET CO

- REVENUE METRICS (NON-GAAP, UNAUDITED)

- SUMMARY OPERATING AND OTHER FINANCIAL INFORMATION (NON-GAAP, UNAUDITED)

4.

APPENDIX

- RETURN ON COMMON EQUITY (ROCE) DEFINITION

- DEFINITION OF US GAAP TO NON-GAAP MEASURES

2

1. COWEN INC.

3

Revenue Metrics (Non-GAAP Unaudited) - Cowen Inc.

2019

$ thousands

FY

INVESTMENT BANKING REVENUE

$351,085

Advisory Revenue

$132,188

M&A

Revenue

$83,152

Total transactions

48

Average fee (implied)

1,732

Median fee

$1,008

Transaction value (in M)

$10,443

Capital Markets Advisory1

Revenue

$49,036

Total transactions

27

Average fee (implied)

$1,816

Median fee

$900

Underwriting Revenue2

Revenue

$218,897

Total transactions

114

Average fee (implied)

$1,920

Median fee

$1,477

BROKERAGE REVENUE

$459,143

Institutional brokerage3

$323,965

Institutional services

$135,178

Prime Services Management Fees4

$2,996

Miscellaneous Markets Fees4

$3,414

Total Markets Revenue4

$465,553

Markets revenue per trading day

$1,847

# Trading days

252

# Publishing analysts5

52

MANAGEMENT FEE

$42,297

Monthly run rate for period

$3,525

INCENTIVE INCOME

$45,732

INVESTMENT INCOME

$35,726

OTHER REVENUE

$5,843

TOTAL REVENUE6

$939,827

2020

Q1

Q2

Q3

Q4

FY

$99,197

$190,430

$185,151

$254,402

$729,180

$33,472

$55,694

$62,098

$137,782

$289,046

$19,773

$30,983

$32,476

$87,669

$170,901

12

9

10

17

48

$1,648

$3,443

$3,248

$5,157

3,560

$1,201

$1,295

$1,685

$2,800

$1,723

$1,114

$4,742

$6,011

$25,641

$37,508

$13,699

$24,711

$29,622

$50,113

$118,145

7

7

11

12

37

$1,957

$3,530

$2,693

$4,176

$3,193

$1,350

$1,880

$2,250

$3,465

$2,225

$65,725

$134,736

$123,053

$116,620

$440,135

24

48

50

44

166

$2,739

$2,807

$2,461

$2,650

$2,651

$2,309

$2,206

$2,033

$1,690

$2,007

$132,672

$167,067

$167,084

$185,824

$652,647

$97,961

$119,064

$113,313

$132,344

$462,682

$34,711

$48,003

$53,771

$53,480

$189,965

$826

$647

$802

$792

$3,067

($1,113)

$1,448

($445)

$1,730

$1,620

$132,385

$169,162

$167,441

$188,346

$657,334

$2,135

$2,685

$2,616

$2,943

$2,598

62

63

64

64

253

53

54

54

53

53

$13,320

$14,402

$14,636

$16,742

$59,100

$4,440

$4,801

$4,879

$5,581

$4,925

($4,086)

$46,375

($1,302)

$44,375

$85,362

$(31,103)

$140,486

$(90,488)

$10,328

$29,223

$562

$(60)

$(794)

$1,074

$782

$210,562 $558,700 $274,287 $512,745 $1,556,294

2021

Q1 Q2 YTD

$293,488

$214,427

$507,914

$132,848

$128,360

$261,208

$55,655

$85,009

$140,664

10

28

38

$5,566

$3,036

3,702

$1,580

$1,050

$1,488

$11,866

$21,029

$11,887

$77,193

$43,351

$120,544

15

18

33

$5,146

$2,408

$3,653

$2,450

$1,310

$1,850

$160,640

$86,067

$246,707

63

40

103

$2,550

$2,152

$2,395

$1,825

$1,740

$1,805

$221,848

$175,845

$397,692

$156,157

$119,783

$275,940

$65,691

$56,062

$121,752

$782

$923

$1,705

($631)

$627

-$3

$221,999

$177,395

$399,394

$3,639

$2,816

$3,221

61

63

124

51

51

51

$27,200

$18,124

$45,325

$9,067

$6,041

$3,777

$108,711

($31,052)

$77,658

$35,008

$5,478

$40,487

$1,163

$7,307

$8,470

$687,418

$390,129

$1,077,546

  1. "Capital Markets Advisory" includes private placements, PIPEs, private debt financings, debt advisory and other advisory fees
  2. "Capital Markets Underwriting" includes IPOs, secondary offerings, convertible bonds, ATM offerings and publicly rated debt
  3. "Institutional Brokerage" includes: cash and electronic trading, options, ADR, special situations and credit; "Institutional Services" includes: prime services, clearing, securities finance, commission management and recapture.
  4. "Markets Revenue" includes brokerage revenue as well as management fees for prime services and miscellaneous fees presented in management fees and other revenue in economic income (loss) respectively
  5. Includes equity, credit and macro publishing analysts
  6. Total revenue is the sum of investment banking, brokerage, management fee, incentive income, investment income and other revenue

4

Summary Operating and Other Financial Information (Non-GAAP Unaudited) - Cowen Inc.

2019

2020

2021

FY

Q1

Q2

Q3

Q4

FY

Q1

Q2

YTD

SUMMARY ECONOMIC INCOME DATA ($ thousands)

Economic proceeds

$939,827

$210,562

$558,700

$274,287

$512,745

$1,556,291

$687,418

$390,129

$1,077,546

Pre-tax economic income (loss)1

$50,490

$(10,882)

$162,962

$33,460

$134,498

$320,038

$196,831

$67,202

$264,034

Economic income tax expense

$0

$0

$0

$0

$0

$0

$52,751

$18,010

$70,760

Economic income (loss)2

$43,698

$(12,580)

$161,264

$31,762

$132,800

$313,245

$142,382

$47,494

$189,878

Economic operating income (loss)2

$64,137

$(7,145)

$166,927

$37,437

$138,705

$335,922

$145,568

$50,836

$196,406

RETURN ON AVERAGE COMMON EQUITY

Annualized return on average common equity3

PER COMMON SHARE INFORMATION

Economic income per share (basic) Economic Income per share (diluted)

Economic operating income per share (basic) Economic operating income per share (diluted)

9.0 %

(4.1)%

90.0 %

18.6 %

66.1 %

43.4 %

$1.48

$(0.44)

$5.76

$1.15

$4.93

$11.54

$1.40

$(0.44)

$5.50

$1.06

$4.38

$10.86

$2.17

$(0.25)

$5.97

$1.35

$5.15

$12.35

$2.05

$(0.25)

$5.69

$1.25

$4.58

$11.63

62.2 % 21.7 % 41.9 %

$5.20

$1.77

$6.79

$4.24

$1.40

$5.63

$5.32

$1.89

$7.02

$4.34

$1.50

$5.83

NON-INTEREST EXPENSES (EX. D&A) Compensation expenses

Non-compensation expenses

Fixed non-compensation expenses (ex. D&A) Variable non-compensation expenses

Floor brokerage & trade execution expenses Client services & business development expenses Other variable non-compensation expenses

$537,535

$298,540

$146,671

$151,869

$102,337

$41,305

$8,227

$125,707

$305,082

$153,786

$279,947

$864,520

$80,784

$75,682

$72,126

$83,930

$312,523

$37,484

$34,860

$34,384

$39,845

$146,574

$43,300

$40,822

$37,742

$44,085

$165,949

$32,666

$34,795

$33,603

$37,470

$138,534

$9,371

$1,824

$1,522

$2,717

$15,435

$1,263

$4,203

$2,617

$3,898

$11,981

$388,397 $220,413

$89,336 $87,864

$37,390 $41,902

$51,946 $45,962

$45,480 $38,695

$2,694 $3,404

$3,772 $3,863

$608,809

$177,202

$79,292

$97,910

$84,175

$6,098

$7,637

DEPRECIATION & AMORTIZATION

Depreciation

Amortization

EXPENSE RATIOS

Compensation to revenue ratio

Non-compensation expenses to revenue ratio

Fixed non-compensation expense to revenue ratio (ex. D&A) Variable non-compensation expense to revenue ratio

$7,310

$2,240

$2,389

$3,227

$2,598

$10,454

$13,122

$3,194

$3,274

$2,448

$3,307

$12,223

57.2 %

59.7 %

54.6 %

56.1 %

54.6 %

55.6 %

31.8 %

38.4 %

13.5 %

26.3 %

16.4 %

20.1 %

15.6 %

17.8 %

6.2 %

12.5 %

7.8 %

9.4 %

16.2 %

20.6 %

7.3 %

13.8 %

8.6 %

10.7 %

$2,565

$2,671

$5,236

$1,789

$1,894

$3,683

56.5 %

56.5 %

56.5 %

13.0 %

22.5 %

16.4 %

5.4 %

10.7 %

7.4 %

7.6 %

11.8 %

9.1 %

  1. Pre-taxeconomic income (loss) excludes preferred dividend payments
  2. Economic Income (Loss) is calculated net of associated taxes. The Company has utilized all available federal net operating losses not subject to limitation during 2020.
  3. See "Return on Common Equity (ROCE) Definition" page

5

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Cowen Inc. published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 11:13:03 UTC.