3Q21 Financial Supplement

FINANCIAL SUPPLEMENT

2021 Third Quarter

October 29, 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

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1. COWEN INC.

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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	Q3	YTD
$293,488	$214,427	$262,618	$770,533
$132,848	$128,360	$175,744	$436,952
$55,655	$85,009	$103,326	$243,990
10	28	25	63
$5,566	$3,036	$4,133	3,873
$1,580	$1,050	$1,730	$1,541
$11,866	$21,029	$10,395	$43,290
$77,193	$43,351	$72,418	$192,962
15	18	31	64
$5,146	$2,408	$2,336	$3,015
$2,450	$1,310	$1,500	$1,880
$160,640	$86,067	$86,874	$333,581
63	40	46	149
$2,550	$2,152	$1,889	$2,239
$1,825	$1,740	$1,457	$1,825
$221,848	$175,845	$160,486	$558,178
$156,157	$119,783	$112,944	$388,884
$65,691	$56,062	$47,542	$169,294
$782	$923	$941	$2,646
($631)	$627	$13	$10
$221,999	$177,395	$161,440	$560,834
$3,639	$2,816	$2,523	$2,983
61	63	64	188
51	51	55	55
$27,200	$18,124	$15,034	$60,359
$9,067	$6,041	$5,011	$5,030
$108,711	($31,052)	($57,735)	$19,923
$35,008	$5,478	$(20,027)	$20,459
$1,163	$7,307	$(1,321)	$7,149
$687,418	$390,129	$359,055	$1,436,601

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

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

	2019				2020					2021
	FY		Q1	Q2	Q3	Q4	FY		Q1	Q2	Q3	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	$359,055		$1,436,601
Pre-tax economic income (loss)1	$50,490	$(10,882)	$162,962	$33,460	$134,498	$320,038	$196,831	$67,202	$55,272		$319,306
Economic income tax expense	$0	$0	$0	$0	$0	$0	$52,751	$18,010	$13,855		$84,616
Economic income (loss)2	$43,698	$(12,580)	$161,264	$31,762	$132,800	$313,245	$142,382	$47,494	$39,719		$229,596
Economic operating income (loss)2	$64,137	$(7,145)	$166,927	$37,437	$138,705	$335,922	$145,568	$50,836	$43,272		$239,681

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 %	62.2 %	21.7 %	17.5 %	34.5 %
$1.48	$(0.44)	$5.76	$1.15	$4.93	$11.54	$5.20	$1.77	$1.38	$8.20
$1.40	$(0.44)	$5.50	$1.06	$4.38	$10.86	$4.24	$1.40	$1.21	$6.90
$2.17	$(0.25)	$5.97	$1.35	$5.15	$12.35	$5.32	$1.89	$1.50	$8.57
$2.05	$(0.25)	$5.69	$1.25	$4.58	$11.63	$4.34	$1.50	$1.32	$7.21

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

Non-compensation expenses

Fixed non-compensation expenses (ex. D&A)4 Variable non-compensation expenses4

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

$537,535

$298,540

$142,864

$155,674

$102,337

$41,305

$12,032

$125,707 $305,082 $153,786

$80,784 $75,683 $72,127

$35,961 $33,984 $33,101

$44,823 $41,699 $39,026

$32,666 $34,795 $33,603

$9,371 $1,824 $1,522

$2,786 $5,080 $3,901

$279,947	$864,520
$83,930	$312,523
$38,948	$141,994
$44,982	$170,529
$37,470	$138,534
$2,717	$15,435
$4,795	$16,561

$388,397 $220,413 $202,888

$89,336 $87,866 $88,394

$35,623 $40,376 $40,344

$53,713 $47,490 $48,050

$45,480 $38,695 $33,476

$2,694 $3,404 $5,227

$5,539 $5,391 $9,347

$811,697

$265,595

$116,343

$149,252

$117,651

$11,324

$20,277

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	$2,565	$2,671	$2,870	$8,106
$13,122	$3,194	$3,274	$2,448	$3,307	$12,223	$1,789	$1,894	$1,926	$5,609
57.2 %	59.7 %	54.6 %	56.1 %	54.6 %	55.6 %	56.5 %	56.5 %	56.5 %	56.5 %
31.8 %	38.4 %	13.5 %	26.3 %	16.4 %	20.1 %	13.0 %	22.5 %	24.6 %	18.5 %
15.2 %	17.1 %	6.1 %	12.1 %	7.6 %	9.1 %	5.4 %	10.3 %	11.2 %	8.1 %
16.6 %	21.3 %	7.5 %	14.2 %	8.8 %	11.0 %	7.6 %	12.2 %	13.4 %	10.4 %

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
4. Starting in Q321, a portion of our legal fees which are directly associated with revenues are now being presented as variable non-compensation expenses rather than fixed non-compensation expenses. As a result, variable expenses increased from what was previously reported by $6.0 million, $4.6 million and $3.8 million for the nine months ended September 30, 2021, FY2020 and FY2019, respectively, while fixed non-compensation expenses were reduced by the same amounts.

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