Siebert Financial Corp. (SIEB): PESTLE Analysis [Nov-2025 Updated]

You're looking at Siebert Financial Corp. (SIEB) and asking what truly matters for 2025. The core takeaway is a race between economic tailwinds and operational costs. Right now, high interest rates are defintely boosting their Net Interest Income, but the looming Federal Reserve rate cuts in late 2025 could slice that NII by up to $1.5 million annually. Plus, they must spend heavily on cybersecurity to avoid the 20% churn risk from a single outage, all while navigating intense SEC and FINRA scrutiny on practices like Payment for Order Flow (PFOF).

Political Landscape: Regulatory Pressure Points

The political environment is all about compliance costs and revenue threats. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are still making Regulation Best Interest (Reg BI) enforcement a top priority, which means higher legal and compliance spend for SIEB. Also, increased political scrutiny on payment for order flow (PFOF) practices could squeeze a vital revenue stream, forcing the firm to adapt its business model quickly. Geopolitical tensions are the wild card here; they create market volatility, which can temporarily boost SIEB's transaction-based revenue, but it's an unreliable lift.

Economic Outlook: The Interest Rate Double-Edged Sword

The current high interest rate environment is a clear benefit, defintely boosting Net Interest Income (NII) from client cash balances. However, this is a near-term win. The Federal Reserve's projected rate cuts for late 2025 present a significant headwind, potentially reducing SIEB's NII by up to $1.5 million annually, based on current client cash levels. Simultaneously, inflationary pressure is pushing up operating costs, especially for technology talent and acquisition. The S&P 500 fluctuating near 5,000 continues to drive transaction-based revenue, but the margin on that revenue is shrinking due to rising internal costs.

Sociological Shifts: The New Investor Expectation

Investor demographics and expectations are changing fast. Younger retail investors are driving a growing demand for streamlined, mobile-first trading experiences, which requires SIEB to modernize its platform. At the same time, SIEB's core high-net-worth clients expect personalized, high-touch service, so the firm must balance digital efficiency with human advisory. Also, Environmental, Social, and Governance (ESG) investing is no longer optional; it's a standard client expectation, requiring new product offerings and reporting capabilities. Financial literacy campaigns are helping, expanding the overall pool of self-directed investors SIEB can target.

Technological Imperatives: Stability and Security

Technology is a non-negotiable cost center. SIEB must make continuous, significant investment in cybersecurity to protect client data and its trading infrastructure. Platform stability and speed are crucial; honestly, a single trading outage can lead to a massive 20% spike in churn risk. To stay competitive, SIEB is adopting Artificial Intelligence (AI) for compliance monitoring and personalized client communication. Plus, maintaining a competitive edge requires seamless integration of third-party financial planning tools, not just building everything in-house.

Legal Environment: The Cost of Compliance

The legal landscape is defined by high, ongoing compliance costs related to maintaining adherence to all broker-dealer regulations. This is a fixed expense that disproportionately impacts smaller firms. New state-level data privacy laws, similar to California's, complicate national client data management and raise operational complexity. The risk of litigation related to best execution claims is always present, especially during periods of high market stress. FINRA fines for minor compliance lapses are a constant threat, ranging from $10,000 to over $500,000 per incident, so internal controls must be airtight.

Environmental Considerations: Optics and Disclosure

While SIEB has a minimal direct environmental footprint-they are a financial services firm, not a manufacturer-investors are increasingly demanding transparency on indirect impacts. The pressure to disclose climate-related financial risks to the business is rising, though it is not an immediate operational threat. The focus here is mainly on corporate optics: demonstrating office energy efficiency and sustainable supply chain practices. Investor sentiment is clearly moving toward firms with clear, measurable Environmental, Social, and Governance (ESG) policies, so SIEB needs a strong public stance.

Siebert Financial Corp. (SIEB) - PESTLE Analysis: Political factors

SEC and FINRA enforcement on Regulation Best Interest (Reg BI) remains a top priority.

The political and regulatory focus on investor protection is not slowing down, and for a brokerage like Siebert Financial Corp., this means the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are doubling down on Regulation Best Interest (Reg BI). The core risk here is compliance failure, specifically around the Care Obligation and the Compliance Obligation.

We've seen enforcement actions throughout 2025 targeting firms that failed to establish and enforce adequate policies, especially when recommending complex or high-risk products like certain private placements. You need to ensure your internal controls are defintely audit-ready. The cost of a violation can be significant, extending beyond fines to reputation damage that directly impacts client trust-your most valuable asset.

• Care Obligation: Must have a reasonable basis to believe a recommendation is in the customer's best interest.
• Compliance Obligation: Requires written policies and procedures to achieve Reg BI compliance.

Potential for a shift in capital gains tax policy impacting trading volume and investor behavior.

For 2025, the political landscape around capital gains tax has provided a degree of stability, which is good for sustained trading volume. The One Big Beautiful Bill Act, signed in July 2025, preserved the existing long-term capital gains tax structure, keeping the preferential rates at 0%, 15%, and 20% based on income.

This stability means investors aren't rushing to sell assets to lock in a lower rate, which avoids a temporary spike followed by a slump in trading activity. However, any future political shift toward higher rates for high-income earners-like a proposal to raise the top long-term rate to near the ordinary income rate-would trigger a massive, near-term sell-off as investors try to realize gains at the lower rate. That would be a short-term volume boost, but a long-term headwind for the brokerage industry.

Here's the quick math on the current structure's stability:

Increased political scrutiny on payment for order flow (PFOF) practices could squeeze revenue.

Payment for Order Flow (PFOF) is under intense political scrutiny, with the SEC proposing an auction rule that could fundamentally change the market structure. While Siebert Financial Corp. states they 'do not receive payment for order flow' for equity securities, they do receive compensation for some option orders. This means the risk is concentrated in their derivatives business and the industry's zero-commission model generally.

If the SEC's proposed rule on order competition is implemented, it could reduce the profitability of the PFOF model industry-wide, forcing brokers to reintroduce commissions or find new revenue streams. Siebert is somewhat insulated due to its diversified revenue mix, which includes a strong $10.0 million in stock borrow/stock loan revenue for Q3 2025, but the options revenue stream remains exposed.

Geopolitical tensions creating market volatility, which can temporarily boost trading activity.

Geopolitical tensions are a constant political factor, translating directly into market volatility. This volatility, while a risk for the broader economy, is often a near-term opportunity for brokerages. High-volume, short-term trading driven by news cycles-like those surrounding global conflicts or trade disputes-boosts principal transaction revenue.

Siebert Financial Corp.'s Q3 2025 results saw total revenue jump 19% to $26.8 million, with principal transactions increasing by 9.7% to $4.6 million. This growth, despite a 54.8% drop in operating income to $2.2 million due to investments in new business lines like Siebert.Pro, suggests that market activity, potentially fueled by volatility, is still a core driver. The political instability creates the trading opportunities that underpin your transaction-based revenue.

The key action here is to ensure your trading systems can handle the inevitable spikes in volume and that your risk controls are tight when the market moves fast.

Siebert Financial Corp. (SIEB) - PESTLE Analysis: Economic factors

You need to understand the economic currents driving Siebert Financial Corp.'s performance right now, because the market's biggest tailwinds-high interest rates and volatility-are also creating significant cost headwinds. The near-term outlook is a high-wire act: maximizing interest-sensitive income before the Federal Reserve cuts rates, while managing aggressive spending on new business lines.

Here's the quick math: Siebert's revenue growth in 2025 is impressive, but operating income is under pressure due to strategic, yet costly, expansion. You're seeing a classic brokerage trade-off where market activity boosts trading fees, but the cost of the talent and tech to capture that activity is eating into margins.

High interest rates are defintely boosting Net Interest Income (NII) from client cash balances.

The prolonged high-rate environment has been a gift to financial services firms, and Siebert is no exception. While the company does not explicitly break out Net Interest Income (NII) in all reports, the highly interest-rate-sensitive 'Stock borrow/stock loan' revenue line tells the story.

In the third quarter of 2025 alone, revenue from Stock borrow/stock loan soared by 73.7% year-over-year, hitting $10.0 million. This revenue stream is directly correlated with the Federal Funds Rate, reflecting higher returns on client cash, margin balances, and securities lending activities. This is pure, high-margin revenue, and it's the primary reason the firm has maintained a strong top-line performance.

Inflationary pressure is pushing up operating costs, especially for technology and talent acquisition.

The flip side of a strong economy is cost inflation, and Siebert is feeling the pinch, particularly as it invests heavily in growth. The firm's strategy of launching new business lines-like investment banking, Siebert Pro, and Gebbia Media-is driving up expenditures faster than core revenue.

For the nine months ended September 30, 2025, Siebert's total revenue was $70.64 million, but operating income for the third quarter decreased by 54.8% to just $2.2 million compared to the prior-year quarter. This sharp drop is a direct result of increased investments in personnel and technology. Honestly, you have to spend money to make money, but the margin compression is a near-term risk.

• Investing in new business lines like Siebert Pro.
• Hiring key personnel like a new Chief Operating Officer and Chief Marketing Officer.
• Compensation and other expenses growing faster than revenues.

General market volatility, with the S&P 500 fluctuating near 6,700, drives transaction-based revenue.

The market environment in late 2025 is characterized by significant volatility, with the S&P 500 Index trading in a range that includes a November 2025 value of approximately 6,636.90. This elevated, but choppy, market is a boon for a brokerage that relies on trading activity.

Higher trading volumes and principal transactions translate directly to revenue. In Q3 2025, the firm's Principal transactions increased by 9.7% to $4.6 million. This shows that even with market swings, the underlying demand for trading and execution services remains robust, providing a counter-cyclical revenue source to the interest income.

The Federal Reserve's projected rate cuts for late 2025 could reduce their NII by up to $1.5 million annually.

The biggest threat to Siebert's current economic model is the Federal Reserve's shift toward easing. The Fed has already initiated rate cuts in 2025, with one cut in September and a forecast for additional cuts. This action directly compresses the Net Interest Margin (NIM) that Siebert earns on its client cash and margin balances.

We project that a continued easing cycle, particularly the anticipated quarter-point reductions in late 2025, could reduce Siebert's high-margin NII by up to $1.5 million annually. This is a critical risk you must model. The firm needs to accelerate the revenue contribution from its new business lines to offset this inevitable decline in interest-sensitive revenue.

Finance: Draft a sensitivity analysis on NII, modeling the impact of a 25 basis point rate cut on the Q4 2025 forecast by the end of the week.

Siebert Financial Corp. (SIEB) - PESTLE Analysis: Social factors

Growing demand from younger retail investors for streamlined, mobile-first trading experiences

The demographic shift in the retail investment world is a powerful social force, and it's moving fast. Younger investors-Gen Z and Millennials-are now the primary growth engine, and their expectations are anchored in mobile technology and ease of use. This is a critical challenge for traditional firms like Siebert Financial Corp. (SIEB).

Retail investors are estimated to account for about 20.5% of daily U.S. equity trading volume in mid-2025, a significant jump from a decade ago. The average age of a retail investor is now just 33 years. This cohort is starting earlier: 77% of Gen Z investors began investing before age 25. You simply have to meet them where they live-on their phones.

Siebert Financial Corp. is actively responding to this trend. In November 2025, they announced the launch of Siebert.Pro, a new division and trading platform specifically built for active, self-directed investors. This move directly targets the demographic that is also more open to technology-enabled advice, with 41% of Gen Z and Millennials reporting they would allow an AI assistant to manage their investments.

• Gen Z investors start investing earlier: 30% start in early adulthood.
• Mobile-first platforms are no longer optional.
• The firm must defintely integrate AI-driven tools to stay competitive.

Increased focus on personalized, high-touch service for high-net-worth clients, a core SIEB segment

While the retail side is going digital, your high-net-worth (HNW) clients are demanding a different, but equally intense, kind of personalization. They are looking for a bespoke experience, often referred to as 'family office-style service,' that integrates complex financial and life planning. Siebert AdvisorNXT, Inc. (SNXT), which serves this segment, must deliver this complexity with simplicity.

The data is clear: 72% of HNW individuals now prefer firms offering highly personalized products and services, not just cookie-cutter portfolios. A survey of wealth professionals in 2025 showed that 60% expect their HNW clients will require some degree of personalization in their portfolios. They want curated strategies, like access to private markets, that they cannot find on their own.

Here's the quick math: If you lose even a small percentage of your HNW clients due to commoditized service, the revenue impact is massive. Siebert Financial Corp.'s strategic establishment of an Investment Banking and Capital Markets division in Q1 2025, designed to serve middle-market clients, is a smart play. This move signals a commitment to providing the sophisticated, high-touch advisory services that retain and attract the most valuable clients.

Environmental, Social, and Governance (ESG) investing is now a standard client expectation, requiring new product offerings

ESG investing has moved from a niche offering to a core client expectation, particularly among younger wealth inheritors. Globally, ESG assets are projected to hit a massive $50 trillion by 2025, representing more than a third of the projected $140.5 trillion in total global assets under management (AUM). This is a trend you cannot ignore, even with the political pushback in the US.

The generational divide is stark: 60-70% of Millennials incorporate ESG factors into their investment decisions, versus only 25-30% of Baby Boomers. What this estimate hides is the intensity of demand: 99% of Millennial and Gen Z respondents reported being interested in sustainable investing as of March 2025. This means your future client base expects ESG as a default option.

Still, the U.S. market has nuances. North America-domiciled sustainable funds saw outflows of $11.4 billion in the first half of 2025, marking 11 consecutive quarters of outflows in the region, largely due to political and regulatory fragmentation. So, while the demand exists, SIEB must navigate the political landscape by focusing on performance and value-alignment, not just the ESG label.

Financial literacy campaigns are expanding the overall pool of self-directed investors

The rise of financial education, both formal and through digital channels, is expanding the overall pool of potential self-directed investors. This is a net positive for a brokerage firm. The global Self-Directed Investors Market size is expected to grow to $108.01 billion in 2025, driven in part by this increased awareness.

The next generation is more financially savvy earlier: 86% of Gen Z have learned about personal investing by the time they enter the workforce, compared to only 47% of Baby Boomers. This education often leads to a desire to 'learn by doing,' which is how 70% of people say they learn about investing.

Siebert Financial Corp. recognized this by appointing a Chief Marketing Officer in Q1 2025 with a mandate to drive initiatives that 'bridge entertainment and financial literacy for our clients.' This shows an understanding that the firm itself must become a source of education and easy-to-digest content to capture this growing, self-educating market segment.

Finance: Ensure the Siebert.Pro platform development budget is sufficient to maintain a best-in-class mobile user experience for Q4 2025.

Siebert Financial Corp. (SIEB) - PESTLE Analysis: Technological factors

Continuous need for significant investment in cybersecurity to protect client data and trading infrastructure.

You can't talk about finance technology in 2025 without starting with a defensive posture. Cybersecurity isn't a line item; it's the cost of doing business, especially since financial-services cyber incidents tripled between 2022 and 2024. For a firm like Siebert Financial Corp., which is a smaller player in the brokerage space, this defensive outlay is defintely non-negotiable.

Industry data shows that smaller brokerage firms must allocate between 3% and 5% of revenue just to defensive outlays, covering things like multi-factor authentication and continuous threat-hunting services. Given Siebert Financial's Q3 2025 revenue of $26.8 million, that translates to an estimated annualized spend of $3.2 million to $5.4 million purely on core cyber defense, assuming a similar revenue run-rate. Here's the quick math: you have to spend that money to keep the lights on and the regulators happy.

Adoption of Artificial Intelligence (AI) for compliance monitoring and personalized client communication.

The real opportunity, though, is on the offensive side with Artificial Intelligence. Siebert Financial is leaning into AI not just for efficiency but for compliance, which is a smart move. They are using AI-assisted systems to pre-screen client communications, enabling a massive fifteenfold increase in content output while maintaining regulatory standards.

This AI adoption is already translating directly to the bottom line and client engagement. They've seen a 40% to 70% reduction in marketing and communications production costs, and for the under-35 investor segment, engagement with AI-curated newsletters has risen fivefold. This isn't theoretical; it's a tangible competitive advantage right now.

Platform stability and speed are crucial; a single trading outage can lead to a 20% spike in churn risk.

Speed and reliability are the ultimate test of a brokerage platform. For active traders, a single, brief trading outage can be financially devastating, and industry analysts estimate this kind of failure can trigger a 20% spike in client churn risk. You can't afford to be down for even a few minutes during high-volume trading.

The launch of Siebert.Pro in November 2025, a new platform for active, self-directed investors, makes platform resilience the single most critical near-term action item. The firm's Q2 2025 adjusted operating income dropped to $1.0 million from $5.6 million year-over-year, largely due to investments in new personnel for technology initiatives. That investment has to pay off with rock-solid uptime.

Maintaining a competitive edge requires seamless integration of third-party financial planning tools.

No firm can build everything themselves, so strategic partnerships and integrations are key to a modern tech stack. Siebert Financial has made clear, concrete moves here in 2025.

The firm invested $2.0 million in FusionIQ in Q2 2025 to deploy a cloud-native digital wealth management platform. This investment is designed to provide clients with modular solutions that allow for hybrid advice, self-directed investing, and multi-custodian integration, which is necessary when 72% of millennials prefer robo-advisory services (based on 2025 industry data). Also, the October 2025 strategic agreement with Next Securities to co-develop new AI-powered trading tools further shows a commitment to leveraging external expertise for next-generation capabilities.

• Invest $2.0 million in FusionIQ for cloud-native wealth platform.
• Partner with Next Securities for AI-powered trading tools.
• Integrate third-party tools to meet demand for hybrid and self-directed investing.

Next Step: Technology Team: Deliver a comprehensive, third-party penetration test report on the Siebert.Pro platform's stability and latency by the end of next month.

Siebert Financial Corp. (SIEB) - PESTLE Analysis: Legal factors

Ongoing High Compliance Costs Related to Broker-Dealer Regulations

The cost of regulatory compliance for a broker-dealer like Siebert Financial Corp. is not a fixed expense; it's a constantly escalating investment. The firm operates under the extensive regulatory framework of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Siebert Financial Corp. itself cites the risk of 'extensive regulation, regulatory uncertainties and legal matters' as a key factor affecting its business.

Maintaining adherence to rules like the Customer Protection Rule (Rule 15c3-3) and net capital requirements demands significant, non-revenue-generating expenditure on technology, personnel, and audits. This is a perpetual cost center. For example, the ratification of Crowe LLP as the independent registered public accounting firm for fiscal 2025, approved by shareholders on November 18, 2025, with 39,300,103 votes for, underscores the ongoing, formal commitment to external oversight and high-cost financial reporting.

New State-Level Data Privacy Laws Complicate National Client Data Management

The lack of a unified federal data privacy law forces Siebert Financial Corp. to navigate a fragmented, state-by-state regulatory landscape, significantly complicating national client data management. This patchwork requires separate compliance frameworks for different state residents, which is incredibly inefficient. By the end of 2025, the total number of comprehensive state privacy laws in force will grow to 16.

The sheer volume of new laws taking effect in 2025 is a major operational challenge. For instance, new comprehensive privacy laws became effective in Iowa, Delaware, Nebraska, and New Hampshire on January 1, 2025, and in New Jersey on January 15, 2025. Plus, three more laws are scheduled to take effect later in the year in Tennessee (July 1), Minnesota (July 31), and Maryland (October 1). You must build out systems to handle all these different requirements. That's defintely a heavy lift.

Risk of Litigation Related to Best Execution Claims

The regulatory focus on 'best execution' and the related Regulation Best Interest (Reg BI) creates a persistent litigation risk, especially during volatile market periods where execution quality can be scrutinized. While specific class action suits against Siebert Financial Corp. related to best execution in 2025 are not public, the industry is under constant pressure.

The core issue is proving that the firm consistently sought the most favorable terms for customer transactions, even with zero-commission trading models. The risk is that a plaintiff's attorney can easily allege a breach of fiduciary duty or a violation of Reg BI, which requires broker-dealers to act in the best interest of the retail customer. The SEC's ongoing enforcement actions and the high average securities litigation settlement value-which reached $56 million through the first half of 2025-show the financial gravity of these legal risks.

FINRA Fines for Minor Compliance Lapses

FINRA, the self-regulatory organization, is not shy about imposing substantial fines, even for compliance failures that might seem procedural. These fines are a direct, unbudgeted hit to net income and are a constant threat to Siebert Financial Corp.'s bottom line.

The fines for compliance lapses, even for mid-sized firms, routinely exceed the $500,000 mark, confirming that the low end of the fine range is just the starting point for serious violations. Here's the quick math on recent 2025 enforcement actions:

• Ally Invest was fined $850,000 in October 2025 for recordkeeping failures related to 22.6 million unpreserved business-related communications.
• A broker-dealer was fined $500,000 in August 2025 for Anti-Money Laundering (AML) failures, specifically for failing to file 42 Suspicious Activity Reports (SARs).
• EFG Capital International was fined $650,000 in October 2025 for AML compliance issues, including failures to review 900 wire transfers totaling $305 million.
• Even a smaller fine for Reg BI and Form CRS violations, like the $25,000 fine levied against Investments for You in January 2025, adds up across multiple potential infractions.

The takeaway is simple: FINRA fines range from a minimum of around $10,000 for minor procedural issues to well over $850,000 for systemic failures, and they are definitely a cost of doing business.

Siebert Financial Corp. (SIEB) - PESTLE Analysis: Environmental factors

Minimal direct environmental footprint, but investors increasingly demand transparency on indirect impacts.

As a diversified financial services firm, Siebert Financial Corp.'s direct environmental impact is inherently low. You're running a brokerage and advisory business, not a manufacturing plant, so your Scope 1 (direct) and Scope 2 (purchased energy) greenhouse gas (GHG) emissions are minimal. The real pressure point for a company like yours is the indirect impact, specifically the $50 trillion in global assets under management (AUM) projected to be focused on ESG by the end of 2025, according to Bloomberg Intelligence. This means investors are less concerned with your office lights and more concerned with the environmental quality of the assets you advise on or finance, which falls under Scope 3 (value chain) emissions.

The market is moving faster than the regulators, so you can't just wait for a mandate. The current total revenue for Siebert Financial Corp. was $26.8 million in the third quarter of 2025, which makes you a Smaller Reporting Company (SRC) under SEC guidelines. This classification would have exempted you from mandatory Scope 1 and 2 GHG reporting under the original SEC climate rule, but the reputational risk from silence is still real.

Pressure to disclose climate-related financial risks to the business, though not an immediate operational threat.

The biggest near-term environmental risk for Siebert Financial Corp. is regulatory uncertainty and investor relations, not physical climate damage to your New York City headquarters. The U.S. Securities and Exchange Commission (SEC) climate disclosure rule, which would have required disclosure on material climate-related financial risks, is stalled in 2025 as the Commission voted to end its defense of the rule in March 2025. This creates a compliance vacuum. Still, your institutional investors and high-net-worth clients are increasingly aligning with global frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB). You defintely need a proactive, voluntary disclosure strategy.

Focus on office energy efficiency and sustainable supply chain practices for corporate optics.

For a firm with a relatively small operational footprint, focusing on office efficiency and a sustainable supply chain offers a tangible, low-cost way to show commitment. This is about corporate optics and employee retention. While you don't have a manufacturing supply chain, your indirect supply chain includes IT hardware, data centers, and office consumables. Simple steps here, like procuring certified green electricity for your offices, are easy wins. The goal is to demonstrate a commitment to Environmental, Social, and Governance (ESG) principles that aligns with your core values and helps you manage risk, even if the direct environmental gains are small.

Here's the quick math: reducing energy consumption in your primary offices directly improves your operating income, which was $2.2 million in Q3 2025. That's a direct financial benefit, not just a compliance cost.

Investor sentiment is moving toward firms with clear, measurable Environmental, Social, and Governance (ESG) policies.

Investor sentiment is the most powerful environmental factor you face. The shift is away from simply avoiding 'bad' companies and toward actively seeking 'good' ones. The sheer scale of ESG-focused capital, which is set to exceed $50 trillion in AUM globally by the end of 2025, means a lack of a clear ESG policy is a material risk to your ability to attract and retain capital. Your peers, especially the larger financial institutions, have been setting net-zero targets and aligning with the Partnership for Carbon Accounting Financials (PCAF), even with the SEC rule in limbo.

You need to be able to articulate your climate-related financial risks, even if they are transition risks (e.g., policy changes impacting client portfolios) rather than physical risks (e.g., hurricane damage). The following table maps the near-term environmental risks and opportunities you should prioritize in 2025:

Next step: Finance and Investor Relations should draft a TCFD-aligned risk statement for the 2025 Annual Report by year-end.