Oppenheimer Holdings Inc. Reports First Quarter 2026 Earnings
Rhea-AI Summary
Oppenheimer Holdings (NYSE: OPY) reported a 1Q-2026 net loss of $20.6M or $(1.93) per share on $445.1M revenue, up 21.0% year-over-year. Results included a $70M pre-tax legal accrual for settlement and a $22.3M pre-tax mark-to-market stock‑based compensation charge.
Adjusted net income was $47.5M ($4.46 per share). Assets under management were $54.1B, and the Board raised the quarterly dividend 11.1% to $0.20 per share.
AI-generated analysis. Not financial advice.
Positive
- Revenue +21.0% YoY to $445.1M
- Adjusted net income $47.5M (non-GAAP)
- AUM $54.1B, up $5.2B year-over-year
- Capital Markets revenue +53.4% YoY to $189.1M
- Investment banking fees +142.7% YoY
Negative
- Net loss $20.6M attributable to the quarter
- $70M legal accrual related to cash sweep settlement
- $22.3M stock‑based compensation pre-tax charge for advisors
- Firm pre-tax loss $27.0M vs $41.4M pre-tax income a year ago
- Wealth Management pre-tax income down 35.8% YoY
News Market Reaction – OPY
On the day this news was published, OPY declined 6.70%, reflecting a notable negative market reaction. Argus tracked a trough of -3.1% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $84M from the company's valuation, bringing the market cap to $1.17B at that time. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Momentum scanner flagged 2 peers (PWP, CNCK) moving down (median move about -6.4%) with no same‑day news, suggesting broader pressure in parts of Capital Markets, but OPY’s own direction around this release is not specified.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 30 | Q4/FY 2025 earnings | Positive | +10.3% | Record Q4 and full‑year 2025 revenue and net income with special dividend. |
| Oct 31 | Q3 2025 earnings | Positive | +0.7% | Revenue and Capital Markets growth with record AUM despite lower net income. |
| Aug 01 | Q2 2025 earnings | Positive | -3.3% | Strong revenue and profit growth across segments with record AUM and dividend. |
| Apr 25 | Q1 2025 earnings | Positive | -0.6% | Higher revenue and net income, growing AUM, and improved Capital Markets results. |
| Jan 31 | Q4/FY 2024 earnings | Positive | -5.1% | Record full‑year revenue and AUM with higher compensation tied to stock price. |
Earnings releases often highlighted strong revenue and AUM growth, but price reactions were mixed, with several positive reports followed by negative or muted moves.
Over the past year, Oppenheimer’s earnings reports have emphasized growth in revenue and assets under management, alongside rising compensation costs tied to share‑price‑linked awards. Notable milestones include record Q4 and full‑year 2025 results with revenue of $1.64B and net income of $148.4M, plus repeated records in AUM above $55B. Earlier quarters, such as Q2 and Q3 2025, showed solid top‑line gains but margin pressure from higher compensation. Today’s Q1 2026 release, with a GAAP loss driven by a $70M legal reserve yet strong adjusted earnings, fits this theme of operational strength offset by elevated expenses.
Historical Comparison
In the last 5 earnings releases, OPY’s average next‑day move was about 0.39%, with several strong reports followed by muted or negative reactions.
Earnings over 2024–2025 showed growing revenue and record AUM, but rising compensation costs repeatedly pressured margins ahead of the current Q1 2026 report.
Market Pulse Summary
The stock moved -6.7% in the session following this news. A negative reaction despite strong underlying revenue growth would fit prior instances where earnings strength was overshadowed by expense or one‑off items. Q1 2026 featured a GAAP net loss of $20.6M due to a $70M legal accrual and $22.3M in stock‑linked compensation, even as adjusted EPS reached $4.46 and AUM climbed to $54.1B. Historically, several earnings beats were followed by declines, so investors may focus on margin pressure and litigation over non‑GAAP strength.
Key Terms
non-gaap financial
cash sweep financial
stock appreciation rights financial
assets under management financial
assets under administration financial
class action litigation regulatory
regulatory net capital regulatory
restricted stock award financial
AI-generated analysis. Not financial advice.
First quarter 2026 results were adversely affected by a
Robert S. Lowenthal, President and CEO commented, "Notwithstanding the unfavorable impact of the "cash sweep" settlement on the Company's overall results for the first quarter, the Firm's core businesses delivered solid operating results. Despite an increasingly challenging geopolitical environment, the strength of our franchise proved its ability to support clients across all business environments. The ongoing conflict with
While the pre-tax results for our Wealth Management segment were lowered by the impact of our stock-based compensation program for financial advisors, underlying performance across the business remained solid. Commission revenues benefited from heightened market volatility, which drove elevated client trading. Although assets under management ("AUM") eased from last quarter's all-time highs, they remained meaningfully above prior year levels, supporting continued strength in our asset-based advisory fees. Overall segment results were negatively impacted by higher compensation expense related to liability-based stock appreciation rights benefiting advisors that rose in value in direct correlation with the significant increase in our share price throughout the quarter.
Our Capital Markets business delivered a strong start to the year, driven by higher investment banking fees, when compared with the prior year period, reflecting the successful closing of advisory and underwriting mandates. Sales and trading revenue within our Equities and Fixed Income businesses were also boosted by higher volatility in both the debt and equity markets.
We are pleased to have resolved the "cash sweep" litigation and to put this matter behind us. Despite the settlement's negative impact to our quarterly results, our operating businesses performed well. Our capital position remains robust, enabling us to return additional value to stockholders as highlighted by our announced
Summary Operating Results (Unaudited) | ||
('000s, except per share amounts or otherwise indicated) | ||
Firm | 1Q-26 | 1Q-25 |
Revenue | ||
Compensation Expenses | ||
Non-compensation Expenses | $ 99,358 | |
Pre-tax (Loss) Income | $ 41,376 | |
Income Tax (Benefit) Provision | $ (6,432) | $ 10,721 |
Net (Loss) Income (1) | $ 30,655 | |
Adjusted Net Income (Non-GAAP) (1)(a) | $ 47,491 | $ 28,627 |
(Loss) Earnings Per Share (Basic) (1) | $ (1.93) | $ 2.93 |
Adjusted Earnings Per Share (Basic) (Non-GAAP)(1)(a) | $ 4.46 | $ 2.74 |
(Loss) Earnings Per Share (Diluted) (1) | $ (1.93) | $ 2.72 |
Adjusted Earnings Per Share (Diluted) (Non-GAAP) (1)(a) | $ 4.21 | $ 2.54 |
Book Value Per Share | $ 88.95 | $ 82.87 |
Tangible Book Value Per Share (2) | $ 72.28 | $ 65.85 |
Wealth Management | ||
Revenue | ||
Pre-tax Income | $ 43,554 | $ 67,864 |
Assets Under Administration (billions) | $ 139.8 | $ 129.9 |
Assets Under Management (billions) | $ 54.1 | $ 48.9 |
Capital Markets | ||
Revenue | ||
Pre-tax Income (Loss) | $ 35,441 | $ (5,097) |
(1) Attributable to Oppenheimer Holdings Inc. |
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding |
Highlights
- Higher revenue in the first quarter of 2026 was driven primarily by significantly higher investment banking fees, increased transaction-based commissions and higher advisory fees reflecting growth in billable AUM
- Assets under management and administration both increased year-over-year as of March 31, 2026, primarily due to market appreciation
- Compensation expenses rose from the prior year quarter due mainly to elevated costs associated with stock appreciation rights tied to the Company's share price, higher production-related costs and greater incentive compensation accruals
- Non-compensation expenses significantly increased from the prior year quarter primarily due to higher legal costs associated with our settlement of the "cash sweep" class action litigation
- The Board of Directors increased the quarterly dividend to be paid on May 29, 2026 by
11.1% to$0.20
Wealth Management
Wealth Management reported revenue for the current quarter of
('000s, except otherwise indicated) | ||
1Q-26 | 1Q-25 | |
Revenue | ||
Commissions | $ 60,379 | $ 56,911 |
Advisory Fees | ||
Bank Deposit Sweep Income | $ 26,118 | $ 30,075 |
Interest | $ 20,863 | $ 21,485 |
Other | $ 4,626 | $ 4,723 |
Total Expenses | ||
Compensation | ||
Non-compensation | $ 54,326 | $ 54,474 |
Pre-Tax Income | $ 43,554 | $ 67,864 |
Compensation Ratio | 61.4 % | 49.4 % |
Non-compensation Ratio | 21.4 % | 22.5 % |
Pre-Tax Margin | 17.2 % | 28.0 % |
Assets Under Administration (billions) | $ 139.8 | $ 129.9 |
Assets Under Management (billions) | $ 54.1 | $ 48.9 |
Cash Sweep Balances (billions) | $ 3.0 | $ 2.9 |
Revenue:
- Retail commissions increased
6.1% from the prior year period primarily due to higher retail transaction volumes - Advisory fees increased
10.0% from a year ago due to higher AUM during the billing period - Bank deposit sweep income decreased
$4.0 million - Interest revenue decreased
2.9% from a year ago primarily due to lower short-term interest rates - Other revenue was relatively flat compared to the prior year period
Assets under Management (AUM):
- AUM were
$54.1 billion - The
$5.2 billion
Total Expenses:
- Compensation expenses increased
30.2% from the prior year period primarily due to elevated expenses associated with stock appreciation rights ($22.3 million - Non-compensation expenses were flat year-over-year
Capital Markets
Capital Markets reported revenue for the current quarter of
('000s) | ||
1Q-26 | 1Q-25 | |
Revenue | $ 189,122 | $ 123,261 |
Investment Banking | $ 94,209 | $ 44,980 |
Advisory Fees | $ 62,997 | $ 25,962 |
Equities Underwriting | $ 27,829 | $ 13,399 |
Fixed Income Underwriting | $ 2,692 | $ 5,301 |
Other | $ 691 | $ 318 |
Sales and Trading | $ 94,572 | $ 76,879 |
Equities | $ 45,583 | $ 41,744 |
Fixed Income | $ 48,989 | $ 35,135 |
Other | $ 341 | $ 1,402 |
Total Expenses | $ 153,681 | $ 128,358 |
Compensation | $ 112,639 | $ 87,344 |
Non-compensation | $ 41,042 | $ 41,014 |
Pre-Tax Income (Loss) | $ 35,441 | $ (5,097) |
Compensation Ratio | 59.6 % | 70.9 % |
Non-compensation Ratio | 21.7 % | 33.3 % |
Pre-Tax Margin | 18.7 % | (4.1) % |
Revenue:
Investment Banking
- Advisory fees earned from investment banking activities increased
142.7% compared with the prior year period primarily due to higher placement fees in the technology sector and an increase in completed sell-side M&A transactions with larger associated fees in the financial institutions sector - Equities underwriting fees increased
107.7% when compared with the prior year period, driven by higher new issuance volumes in the financial institutions sector - Fixed income underwriting fees decreased by
49.2% from a year ago primarily due to lower public finance transaction revenue
Sales and Trading
- Equities sales and trading revenue increased
9.2% compared with the prior year period mostly due to higher overall trading volumes, including greater options-related commissions - Fixed income sales and trading revenue increased
39.4% compared with a year ago largely due to higher volatility levels
Total Expenses:
- Compensation expenses increased
29.0% compared with the prior year period largely due to higher incentive compensation accruals and production-related costs - Non-compensation expenses were flat year-over-year
Other Matters
(In millions, except number of shares and per share amounts) | ||
1Q-26 | 1Q-25 | |
Capital | ||
Stockholders' Equity (1) | $ 952.4 | $ 872.3 |
Regulatory Net Capital (2) | $ 437.2 | $ 384.1 |
Regulatory Excess Net Capital (2) | $ 403.9 | $ 355.4 |
Common Stock Repurchases | ||
Repurchases | $ — | $ 0.1 |
Number of Shares | — | 1,530 |
Average Price | $ — | $ 58.79 |
Period End Shares | 10,708,005 | 10,525,495 |
Effective Tax Rate | 23.8 % | 25.9 % |
(1) Attributable to Oppenheimer Holdings Inc. | ||
(2) Attributable to Oppenheimer & Co. Inc. broker-dealer | ||
- The Board of Directors announced a
$0.02 11.1% increase in the quarterly dividend to$0.20 - Compensation expense as a percentage of revenue was higher at
66.5% during the current period versus61.7% during the same period last year largely due to higher costs associated with stock appreciation rights - The effective tax rate for the current period was
23.8% , slightly lower when compared with25.9% for the prior year period primarily due to the impact of a discrete legal charge related to the "cash sweep" settlement recorded during the quarter
Note
(a) Adjusted net income and earnings per share attributable to Oppenheimer Holdings Inc. (a non-GAAP financial measure) excludes a
Company Information
Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services. With roots tracing back to 1881, the Company is headquartered in
Forward-Looking Statements
This press release includes certain "forward-looking statements" relating to anticipated future performance. For a discussion of the factors that could cause future performance to be different than anticipated, reference is made to Factors Affecting "Forward-Looking Statements" and Part 1A – Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
Oppenheimer Holdings Inc. | ||||||
Consolidated Income Statements (Unaudited) | ||||||
('000s, except number of shares and per share amounts) | ||||||
For the Three Months Ended March 31, | ||||||
2026 | 2025 | % Change | ||||
Revenue | ||||||
Commissions | $ 128,341 | $ 110,878 | 15.7 | |||
Advisory fees | 141,718 | 128,803 | 10.0 | |||
Investment banking | 97,720 | 47,623 | 105.2 | |||
Bank deposit sweep income | 26,118 | 30,075 | (13.2) | |||
Interest | 37,531 | 36,369 | 3.2 | |||
Principal transactions, net | 10,787 | 8,975 | 20.2 | |||
Other | 2,880 | 5,102 | (43.6) | |||
Total revenue | 445,095 | 367,825 | 21.0 | |||
Expenses | ||||||
Compensation and related expenses | 296,001 | 227,091 | 30.3 | |||
Communications and technology | 26,566 | 26,182 | 1.5 | |||
Occupancy and equipment costs | 15,775 | 16,009 | (1.5) | |||
Clearing and exchange fees | 6,361 | 7,752 | (17.9) | |||
Interest | 18,686 | 21,396 | (12.7) | |||
Other | 108,707 | 28,019 | 288.0 | |||
Total expenses | 472,096 | 326,449 | 44.6 | |||
Pre-tax (loss) income | (27,001) | 41,376 | (165.3) | |||
Income tax provision | (6,432) | 10,721 | (160.0) | |||
Net (loss) income | $ (20,569) | $ 30,655 | (167.1) | |||
Less: Net income attributable to non-controlling interest, net of tax | 9 | — | * | |||
Net (loss) income attributable to Oppenheimer Holdings Inc. | $ (20,578) | $ 30,655 | (167.1) | |||
(Loss) Earnings per share attributable to Oppenheimer Holdings Inc. | ||||||
Basic | $ (1.93) | $ 2.93 | (165.9) | |||
Diluted | $ (1.93) | $ 2.72 | (171.0) | |||
Weighted average number of common shares outstanding | ||||||
Basic | 10,642,909 | 10,465,771 | 1.7 | |||
Diluted | 10,642,909 | 11,277,939 | (5.6) | |||
Period end number of common shares outstanding | 10,708,005 | 10,525,495 | 1.7 | |||
* Percentage not meaningful |
Explanation of Non-GAAP Financial Measures
The Company included certain non-GAAP financial measures within this Earnings Release to supplement the
We also included non-GAAP measures that exclude compensation expense related to the recurring, mark-to-market remeasurement of liability-based stock appreciation rights from net income and earnings per share because the period-to-period variability in this expense is largely driven by factors outside the Company's direct control, including changes in the fair value of and underlying volatility levels in Oppenheimer Holdings Inc.'s Class A common stock price. For this reason, management expects to provide this non-GAAP measure in future reporting periods, subject to ongoing evaluation.
The Company believes that these non-GAAP financial measures provide additional useful information for investors because they permit investors to view the Company's financial performance measures on a basis consistent with how management views the operating performance of the Firm. These non-GAAP financial measures, when presented in conjunction with comparable
The following tables reconcile our non-GAAP financial measures to their respective
Net (Loss) Income Attributable to Oppenheimer Holdings Inc. and (Loss) Earnings Per Share
Reconciliation of net (loss) income attributable to Oppenheimer Holdings Inc. to adjusted net income attributable to Oppenheimer Holdings Inc., reconciliation of basic (loss) earnings per share to adjusted basic earnings per share, and reconciliation of diluted (loss) earnings per share to adjusted diluted earnings per share are as follows:
('000s, except per share amounts) | For the Three Months Ended | For the Three Months Ended | |
March 31, 2026 | March 31, 2025 | ||
Net (loss) income attributable to Oppenheimer Holdings Inc. ( | $ (20,578) | $ 30,655 | |
Non-GAAP adjustments: | |||
Class action sweep litigation settlement | $ 70,000 | $ — | |
Liability-based stock appreciation rights expense | $ 22,285 | $ (2,742) | |
Tax impact of Non-GAAP adjustments (1) | $ (24,216) | $ 714 | |
Adjusted net income attributable to Oppenheimer Holdings Inc. (Non-GAAP) | $ 47,491 | $ 28,627 | |
Basic (loss) earnings per share ( | $ (1.93) | $ 2.93 | |
Impact of Non-GAAP adjustments | $ 6.39 | $ (0.19) | |
Adjusted basic earnings per share (Non-GAAP) | $ 4.46 | $ 2.74 | |
Diluted (loss) earnings per share ( | $ (1.93) | $ 2.72 | |
Impact of Non-GAAP adjustments | $ 6.14 | $ (0.18) | |
Adjusted diluted earnings per share (Non-GAAP) | $ 4.21 | $ 2.54 | |
Weighted average shares outstanding | |||
Basic ( | 10,642,909 | 10,465,771 | |
Diluted ( | 10,642,909 | 11,277,939 | |
Diluted (Non- GAAP) (2) | 11,288,897 | 11,277,939 |
(1) The tax impact is estimated using the statutory rates for the applicable entities |
(2) Includes 645,988 shares which were previously anti-dilutive due to the net loss, however, the Non-GAAP adjustments result in adjusted net income and those shares are now dilutive |
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SOURCE Oppenheimer Holdings Inc.