Oppenheimer Holdings Inc. Reports Second Quarter 2026 Earnings
Rhea-AI Summary
Oppenheimer Holdings (NYSE: OPY) reported second quarter 2026 net income of $27.4 million and basic EPS of $2.55, up from $21.7 million and $2.06 a year earlier. Revenue rose 21.9% to $454.9 million. Adjusted net income (non-GAAP), excluding stock appreciation rights expense, was $45.7 million, or $4.27 adjusted basic EPS, versus $27.8 million and $2.64 in 2Q 2025.
Year-to-date 2026 revenue reached $900.0 million, but GAAP net income fell to $6.8 million from $52.3 million, reflecting higher compensation costs and a $70 million pre-tax legal accrual recorded in the first quarter. Wealth Management revenue grew 10.7% to $272.7 million with record AUM of $59.4 billion, while Capital Markets revenue increased 45.7% to $179.2 million, turning a prior-year pre-tax loss into $22.5 million of pre-tax income. Firm-wide compensation expenses rose 28.5%, lifting the compensation ratio to 67.5%. The board declared a quarterly dividend of $0.20 per share, payable August 28, 2026.
Positive
- Q2 2026 revenue up 21.9% YoY to $454.9 million
- Adjusted Q2 net income rose to $45.7 million from $27.8 million
- Capital Markets revenue up 45.7% YoY; pre-tax income $22.5 million vs. loss
- Wealth Management AUM reached record $59.4 billion; AUA $154.7 billion
- Book value per share increased to $91.84 from $85.27 year-over-year
- Quarterly dividend of $0.20 per share declared for August 28, 2026
Negative
- YTD 2026 GAAP net income down 87.1% to $6.8 million
- Firm-wide compensation ratio increased to 67.5% from 64.1%
- Wealth Management pre-tax income declined 11.4% YoY to $55.7 million
- Bank deposit sweep income fell 12.9% YoY in Q2 to $25.0 million
- $70 million pre-tax legal accrual recorded in Q1 2026 for cash sweep settlement
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 01 | First-quarter earnings | Negative | -6.7% | Legal accrual and stock-linked compensation produced a reported quarterly net loss. |
| Jan 30 | Fourth-quarter earnings | Positive | +10.3% | Record quarterly and full-year results included revenue growth and a special dividend. |
| Oct 31 | Third-quarter earnings | Positive | +0.7% | Revenue growth and record AUM offset lower quarterly earnings per share. |
| Aug 01 | Second-quarter earnings | Positive | -3.3% | Revenue and segment performance improved while the subsequent price reaction was negative. |
| Apr 25 | First-quarter earnings | Positive | -0.6% | Net income and revenue increased despite weaker Wealth Management pre-tax income. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions were mixed despite generally positive operating headlines, with two divergences among five tag-matched events.
Key Terms
non-gaap financial
stock appreciation rights financial
mark-to-market technical
aum financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second quarter 2026 results were impacted by a
Robert S. Lowenthal, President and CEO commented, "Favorable market conditions during the second quarter of 2026 helped drive the strong operating performance of our core businesses, although reported results were significantly and negatively impacted by the higher compensation expense related to stock appreciation rights for financial advisors. Equity markets registered their best quarterly performance in six years, supported by strong corporate earnings, sustained momentum in A.I. and improving sentiment around potential de-escalation in the
In Wealth Management, we delivered strong operating results, driven by higher commission revenue from increased retail trading levels and increased advisory fees reflecting record assets under management ("AUM") largely driven by market appreciation. Reported pre-tax results, however, were partially offset by lower sweep revenue. In Capital Markets, we saw strong performance driven by increased investment banking activity—which included a balance of both advisory and underwriting transactions—along with higher sales and trading revenue in both Equities and Fixed Income amid elevated market volatility.
We ended the quarter with a strong balance sheet and ample capital, positioning us to continue investing in our platform and capabilities. We are focused on attracting and retaining high-quality talent to support our growth initiatives and remain confident in the strength and resiliency of our businesses as we continue to deliver value to our clients and shareholders."
Summary Operating Results (Unaudited) | ||
('000s, except per share amounts or otherwise indicated) | ||
Firm | 2Q-26 | 2Q-25 |
Revenue | ||
Compensation expenses | ||
Non-compensation expenses | ||
Pre-tax income | $ 39,445 | $ 32,210 |
Income tax provision | $ 12,094 | $ 10,536 |
Net income (1) | $ 27,351 | $ 21,674 |
Adjusted net income (Non-GAAP) (1)(a) | $ 45,713 | $ 27,781 |
Earnings per share (Basic) (1) | $ 2.55 | $ 2.06 |
Adjusted earnings per share (Basic) (Non-GAAP) (1)(a) | $ 4.27 | $ 2.64 |
Earnings per share (Diluted) (1) | $ 2.38 | $ 1.91 |
Adjusted earnings per share (Diluted) (Non-GAAP) (1)(a) | $ 3.98 | $ 2.45 |
Book value per share | $ 91.84 | $ 85.27 |
Tangible book value per share (2) | $ 75.19 | $ 68.25 |
Wealth Management | ||
Revenue | ||
Pre-tax income | $ 55,654 | $ 62,834 |
AUA (billions) | $ 154.7 | $ 138.4 |
AUM (billions) | $ 59.4 | $ 52.8 |
Capital Markets | ||
Revenue | ||
Pre-tax income (loss) | $ 22,542 | $ (3,864) |
(1) Attributable to Oppenheimer Holdings Inc. | ||
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding. |
Highlights
- Revenue increased in the second quarter of 2026 primarily due to stronger investment banking performance, driven by advisory fees, along with increased transaction-based commissions and advisory fees attributable to growth in billable assets under management ("AUM")
- Rising equities markets drove AUM and assets under administration ("AUA") to record levels at June 30, 2026
- Compensation expenses increased compared with the prior year quarter primarily due to higher stock appreciation rights expense resulting from a rise in the Company's share price as well as higher production-related costs and incentive compensation accruals
- Non-compensation expenses increased modestly when compared with the prior year quarter, driven primarily by increases in legal fees and technology-related expenses
Wealth Management
Wealth Management reported revenue for the current quarter of
('000s, except otherwise indicated) | ||
2Q-26 | 2Q-25 | |
Revenue | ||
Commissions | $ 59,311 | $ 54,788 |
Advisory fees | ||
Bank deposit sweep income | $ 24,955 | $ 28,654 |
Interest | $ 21,921 | $ 21,943 |
Other | $ 20,935 | $ 15,426 |
Total expenses | ||
Compensation | ||
Non-compensation | $ 52,503 | $ 51,296 |
Pre-tax income | $ 55,654 | $ 62,834 |
Compensation ratio | 60.3 % | 53.7 % |
Non-compensation ratio | 19.3 % | 20.8 % |
Pre-tax margin | 20.4 % | 25.5 % |
AUA (billions) | $ 154.7 | $ 138.4 |
AUM (billions) | $ 59.4 | $ 52.8 |
Cash sweep balances (billions) | $ 2.8 | $ 2.8 |
Revenue
- Retail commissions increased
8.3% from the prior year period primarily due to elevated retail trading activity - Advisory fees increased
15.9% due to higher AUM during the billing period - Bank deposit sweep income decreased
$3.7 million - Other revenue increased
35.7% from a year ago due primarily to an increase in the cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in the fair value of the policies' underlying investments and greater death benefit insurance proceeds
AUM
- AUM reached a record high of
$59.4 billion - The
$6.6 billion $9.4 billion $2.8 billion
Total Expenses
- Compensation expenses increased
24.4% from the prior year period primarily due to higher production-related costs and increased share appreciation rights expense ($24.9 million $8.3 million $47.2 million $5.5 million - Non-compensation expenses increased modestly compared to the prior year period
Capital Markets
Capital Markets reported revenue for the current quarter of
('000s) | ||
2Q-26 | 2Q-25 | |
Revenue | ||
Investment Banking | $ 81,549 | $ 43,394 |
Advisory fees | $ 58,136 | $ 22,487 |
Equities underwriting | $ 17,849 | $ 12,225 |
Fixed income underwriting | $ 4,794 | $ 6,062 |
Other | $ 770 | $ 2,620 |
Sales and Trading | $ 96,600 | $ 78,904 |
Equities | $ 55,067 | $ 39,953 |
Fixed income | $ 41,533 | $ 38,951 |
Other | $ 1,014 | $ 683 |
Total expenses | ||
Compensation | $ 80,610 | |
Non-compensation | $ 46,749 | $ 46,235 |
Pre-tax income (loss) | $ 22,542 | $ (3,864) |
Compensation ratio | 61.3 % | 65.5 % |
Non-compensation ratio | 26.1 % | 37.6 % |
Pre-tax margin | 12.6 % | (3.1) % |
Revenue:
Investment Banking
- Advisory fees earned from investment banking activities increased
158.5% compared with the prior year period primarily reflecting the successful closing of transactions in the financial institutions sector that carried larger associated fees as well as an increase in overall transaction closings - Equities underwriting fees increased
46.0% when compared with the prior year period due to higher underwriting volumes, led by strong activity in the healthcare sector - Fixed income underwriting fees decreased
20.9% from the prior year period, primarily driven by lower sovereign issuance volumes
Sales and Trading
- Equities sales and trading revenue increased
37.8% compared with the prior year period mostly due to higher trading volumes and growth in options-related commission revenue - Fixed income sales and trading revenue increased modestly compared with the prior year period primarily due to higher levels of market volatility
Total Expenses:
- Compensation expenses increased
36.3% compared with the prior year period largely due to higher incentive compensation accruals - Non-compensation expenses were flat compared with the prior year period
Other Matters
(In millions, except number of shares and per share amounts) | ||
2Q-26 | 2Q-25 | |
Capital | ||
Stockholders' equity (1) | $ 983.4 | $ 896.9 |
Regulatory net capital (2) | $ 444.8 | $ 408.9 |
Regulatory excess net capital (2) | $ 400.5 | $ 382.2 |
Common stock repurchases | ||
Repurchases | $ — | $ 0.6 |
Number of shares | — | 9,855 |
Average price | $ — | $ 58.89 |
Period end shares | 10,708,005 | 10,517,924 |
Effective tax rate | 30.7 % | 32.7 % |
(1) Attributable to Oppenheimer Holdings Inc. | ||
(2) Attributable to Oppenheimer & Co. Inc., a registered broker-dealer and wholly owned subsidiary of Oppenheimer Holdings Inc. |
- The Board of Directors announced a quarterly dividend of
$0.20 - Compensation expense as a percentage of revenue was higher at
67.5% during the current period versus64.1% during the prior year period largely due to higher costs associated with stock appreciation rights - The effective tax rate for the current period was
30.7% , lower when compared with32.7% for the prior year period primarily due to fewer nondeductible foreign losses during the current period
Note
(a) Represents a non-GAAP measure; refer to the schedule on page 7 for additional explanation of non-GAAP financial measures and a reconciliation of adjusted net income and earnings per share to
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 contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this release include, but are not limited to, statements regarding the Company's future financial performance, business strategy, growth initiatives, market conditions, and ability to attract and retain talent. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to: changes in general economic and market conditions; fluctuations in interest rates; changes in securities markets and trading volumes; the impact of current and future regulations; competition in the financial services industry; the Company's ability to attract and retain key personnel; litigation and regulatory matters; and other factors described in Part 1A – Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law.
Oppenheimer Holdings Inc. | ||||||||||||
Consolidated Income Statements (Unaudited) | ||||||||||||
('000s, except number of shares and per share amounts) | ||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||
Revenue | ||||||||||||
Commissions | $ 127,538 | $ 110,025 | 15.9 | $ 255,879 | $ 220,903 | 15.8 | ||||||
Advisory fees | 145,565 | 125,628 | 15.9 | 287,283 | 254,431 | 12.9 | ||||||
Investment banking | 84,332 | 43,533 | 93.7 | 182,052 | 91,156 | 99.7 | ||||||
Bank deposit sweep income | 24,955 | 28,654 | (12.9) | 51,073 | 58,729 | (13.0) | ||||||
Interest | 39,293 | 38,017 | 3.4 | 76,824 | 74,386 | 3.3 | ||||||
Principal transactions, net | 16,239 | 14,532 | 11.7 | 27,026 | 23,507 | 15.0 | ||||||
Other | 16,954 | 12,789 | 32.6 | 19,834 | 17,891 | 10.9 | ||||||
Total revenue | 454,876 | 373,178 | 21.9 | 899,971 | 741,003 | 21.5 | ||||||
Expenses | ||||||||||||
Compensation and related expenses | 307,141 | 239,074 | 28.5 | 603,142 | 466,165 | 29.4 | ||||||
Communications and technology | 27,836 | 26,204 | 6.2 | 54,402 | 52,386 | 3.8 | ||||||
Occupancy and equipment costs | 15,507 | 15,578 | (0.5) | 31,282 | 31,587 | (1.0) | ||||||
Clearing and exchange fees | 7,969 | 7,041 | 13.2 | 14,330 | 14,793 | (3.1) | ||||||
Interest | 19,882 | 22,529 | (11.7) | 38,568 | 43,925 | (12.2) | ||||||
Other | 37,096 | 30,542 | 21.5 | 145,803 | 58,561 | 149.0 | ||||||
Total expenses | 415,431 | 340,968 | 21.8 | 887,527 | 667,417 | 33.0 | ||||||
Pre-tax income | 39,445 | 32,210 | 22.5 | 12,444 | 73,586 | (83.1) | ||||||
Income tax provision | 12,094 | 10,536 | 14.8 | 5,662 | 21,257 | (73.4) | ||||||
Net income | $ 27,351 | $ 21,674 | 26.2 | $ 6,782 | $ 52,329 | (87.0) | ||||||
Less: Net income attributable to noncontrolling interest, net of tax | — | — | — | 9 | — | * | ||||||
Net income attributable to Oppenheimer Holdings Inc. | $ 27,351 | $ 21,674 | 26.2 | $ 6,773 | $ 52,329 | (87.1) | ||||||
Earnings per share attributable to Oppenheimer Holdings Inc. | ||||||||||||
Basic | $ 2.55 | $ 2.06 | 23.8 | $ 0.63 | $ 4.99 | (87.4) | ||||||
Diluted | $ 2.38 | $ 1.91 | 24.6 | $ 0.60 | $ 4.63 | (87.0) | ||||||
Weighted average number of common shares outstanding | ||||||||||||
Basic | 10,708,005 | 10,520,219 | 1.8 | 10,675,637 | 10,493,145 | 1.7 | ||||||
Diluted | 11,483,286 | 11,349,049 | 1.2 | 11,380,760 | 11,308,979 | 0.6 | ||||||
Period end number of common shares outstanding | 10,708,005 | 10,517,924 | 1.8 | 10,708,005 | 10,517,924 | 1.8 | ||||||
* Percentage not meaningful
Explanation of Non-GAAP Financial Measures
The Company included certain non-GAAP financial measures within this Earnings Release to supplement the
The non-GAAP measures presented also exclude the expense associated with the settlement of the class action "cash sweep" litigation in the first quarter of 2026 because management does not view this as ordinary-course litigation for the Company given the nature of the claims and the manner in which the action was brought.
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 Company. These non-GAAP financial measures, when presented in conjunction with comparable
The following tables reconcile our non-GAAP financial measures to their respective
Net Income Attributable to Oppenheimer Holdings Inc. and Earnings Per Share
Reconciliation of net income attributable to Oppenheimer Holdings Inc. to adjusted net income attributable to Oppenheimer Holdings Inc., reconciliation of basic earnings per share to adjusted basic earnings per share, and reconciliation of diluted earnings per share to adjusted diluted earnings per share are as follows:
('000s, except per share amounts) | For the Three Months Ended | For the Six Months Ended | |||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||
Net income attributable to Oppenheimer Holdings Inc. ( | $ 27,351 | $ 21,674 | $ 6,773 | $ 52,329 | |||
Non-GAAP adjustments: | |||||||
Class action sweep litigation settlement | — | — | 70,000 | — | |||
Liability-based stock appreciation rights expense | 24,894 | 8,281 | 47,179 | 5,539 | |||
Tax impact of non-GAAP adjustments (1) | (6,532) | (2,174) | (30,748) | (1,454) | |||
Adjusted net income attributable to Oppenheimer Holdings Inc. (Non-GAAP) | $ 45,713 | $ 27,781 | $ 93,204 | $ 56,414 | |||
Basic earnings per share ( | $ 2.55 | $ 2.06 | $ 0.63 | $ 4.99 | |||
Impact of non-GAAP adjustments | 1.72 | 0.58 | 8.10 | 0.39 | |||
Adjusted basic earnings per share (Non-GAAP) | $ 4.27 | $ 2.64 | $ 8.73 | $ 5.38 | |||
Diluted earnings per share ( | $ 2.38 | $ 1.91 | $ 0.60 | $ 4.63 | |||
Impact of non-GAAP adjustments | 1.60 | 0.54 | 7.59 | 0.36 | |||
Adjusted diluted earnings per share (Non-GAAP) | $ 3.98 | $ 2.45 | $ 8.19 | $ 4.99 | |||
Weighted average shares outstanding | |||||||
Basic ( | 10,708,005 | 10,520,219 | 10,675,637 | 10,493,145 | |||
Diluted ( | 11,483,286 | 11,349,049 | 11,380,760 | 11,308,979 | |||
(1) The tax impact is estimated using the statutory rates for the applicable entities
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SOURCE Oppenheimer Holdings Inc.