Net income climbs to $27.4M as revenue jumps 21.9% at Oppenheimer Holdings (NYSE: OPY)
Rhea-AI Filing Summary
Oppenheimer Holdings reported strong second quarter 2026 results, with revenue of $454.9 million, up 21.9% from $373.2 million a year earlier. Net income was $27.4 million and basic EPS was $2.55, compared with $21.7 million and $2.06 in second quarter 2025. Results included a $24.9 million pre-tax expense from liability-based stock appreciation rights tied to a $16.35 increase in the Class A share price. Excluding this item, adjusted net income was $45.7 million and adjusted basic EPS $4.27. Year-to-date revenue reached $900.0 million, while GAAP net income was $6.8 million, reflecting the $70.0 million pre-tax legal accrual related to settlement of the “cash sweep” litigation.
Wealth Management revenue rose 10.7% to $272.7 million, but pre-tax income declined 11.4% to $55.7 million as compensation costs increased. Assets under management reached a record $59.4 billion and assets under administration $154.7 billion at June 30, 2026. Capital Markets revenue grew 45.7% to $179.2 million, and pre-tax results improved from a $3.9 million loss to $22.5 million, driven by higher advisory fees, stronger equities underwriting, and higher equities and fixed income sales and trading revenue.
Stockholders’ equity attributable to Oppenheimer Holdings was $983.4 million. Regulatory net capital at the broker-dealer subsidiary was $444.8 million, with regulatory excess net capital of $400.5 million. Compensation expense represented 67.5% of revenue, and the effective tax rate was 30.7%. The board declared a quarterly dividend of $0.20 per share, payable August 28, 2026 to shareholders of record on August 14, 2026.
Positive
- Revenue grew 21.9% year over year in Q2 2026 to $454.9 million, with net income up 26.2% and basic EPS rising to $2.55, indicating materially higher quarterly profitability versus second quarter 2025.
- Non-GAAP performance was strong, with adjusted net income of $45.7 million and adjusted basic EPS of $4.27 in Q2 2026, compared with $27.8 million and $2.64 a year earlier.
- Capital Markets significantly improved, with revenue up 45.7% to $179.2 million and pre-tax results swinging from a $3.9 million loss to $22.5 million pre-tax income versus Q2 2025.
- Wealth Management posted record client balances, with AUM of $59.4 billion and AUA of $154.7 billion at June 30, 2026, largely driven by higher asset values and favorable equity markets.
Negative
- Year-to-date 2026 GAAP net income fell to $6.8 million from $52.3 million in the prior year period, an 87.1% decline, largely reflecting a $70.0 million pre-tax legal accrual tied to settlement of “cash sweep” litigation.
- Wealth Management pre-tax income declined 11.4% year over year in Q2 2026 to $55.7 million despite higher revenue, as compensation expenses rose 24.4% and the segment’s pre-tax margin compressed from 25.5% to 20.4%.
- Firmwide compensation expense rose 28.5% in Q2 2026 to $307.1 million, lifting compensation to 67.5% of revenue, driven in part by a $24.9 million stock appreciation rights expense versus $8.3 million a year earlier.
Filing Explained
The July 31 Form 8-K updates Oppenheimer’s reported share-count baseline: period-end common shares were
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $454.9 million
Q2 2026 Net Income: $27.4 million
Q2 2026 Adjusted Net Income: $45.7 million
+5 more
8 metrics
Q2 2026 Revenue
$454.9 million
Total revenue for the second quarter of 2026, up 21.9% from $373.2 million in Q2 2025
Q2 2026 Net Income
$27.4 million
Net income for the second quarter of 2026 compared with $21.7 million in the prior-year quarter
Q2 2026 Adjusted Net Income
$45.7 million
Non-GAAP adjusted net income for second quarter 2026 excluding stock appreciation rights expense
Q2 2026 Adjusted Basic EPS
$4.27
Non-GAAP adjusted basic earnings per share in Q2 2026, versus $2.64 in Q2 2025
Cash sweep litigation accrual
$70.0 million
Pre-tax legal accrual related to settlement of “cash sweep” litigation recorded in the first quarter of 2026
Assets under management
$59.4 billion
AUM at June 30, 2026 in Wealth Management, described as a record high
Book value per share
$91.84
Book value per share at June 30, 2026, compared with $85.27 a year earlier
Quarterly dividend per share
$0.20
Dividend declared payable August 28, 2026 to shareholders of record on August 14, 2026
Key Terms
assets under management, assets under administration, bank deposit sweep income, regulatory net capital, +2 more
6 terms
assets under management financial
"AUM reached a record high of $59.4 billion at June 30, 2026"
Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.
assets under administration financial
"Rising equities markets drove AUM and assets under administration ("AUA") to record levels"
Assets under administration (AUA) is the total market value of clients’ investments and accounts that a financial firm oversees for recordkeeping, reporting, and transaction processing without necessarily deciding how the money is invested. Think of it like a warehouse that stores and tracks other people’s goods: bigger AUA shows a firm’s scale, steady fee potential and client trust, so changes can signal growing business or client withdrawals that matter to investors.
bank deposit sweep income financial
"Bank deposit sweep income decreased $3.7 million from a year ago due to lower rates"
Income from a bank deposit sweep is the small amount of interest a business or investor earns when idle cash is automatically moved each night into an interest-bearing account or short-term investment. Think of it like a smart piggy bank that funnels spare change into a savings jar that pays a little interest; it matters because it boosts cash returns, improves short-term liquidity management, and can slightly change reported earnings or cash flow for investors watching yields.
regulatory net capital regulatory
"Regulatory net capital was $444.8 million with regulatory excess net capital of $400.5 million"
Regulatory net capital is the amount of liquid assets a regulated financial firm must have on hand after subtracting required deductions and liabilities so regulators can be sure the firm can meet short-term obligations. It matters to investors because it acts like a financial “safety cushion”: low net capital can signal higher risk of default or regulatory action, while healthy net capital suggests the firm can cover losses and keep operating.
stock appreciation rights financial
"Results were impacted by a $24.9 million pre-tax expense related to stock appreciation rights"
Stock appreciation rights (SARs) are a form of employee compensation that give the holder the right to receive the increase in a company's stock price over a set baseline, paid in cash or shares, without having to buy the stock. For investors, SARs matter because they can create future cash outflows or share dilution and signal how a company rewards and motivates executives — similar to giving a bonus tied directly to how well the company’s stock performs.
non-GAAP financial measures financial
"The Company included certain non-GAAP financial measures within this Earnings Release"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $454.9 million
Second quarter and six months ended June 30, 2026
Revenue
$454.9 million
21.9% increase vs $373.2 million in Q2 2025
Net income
$27.4 million
26.2% increase vs $21.7 million in Q2 2025
Basic EPS
$2.55
23.8% increase vs $2.06 in Q2 2025
Adjusted basic EPS (non-GAAP)
$4.27
up from $2.64 in Q2 2025
Year-to-date revenue
$900.0 million
up from $741.0 million for the same period in 2025
Year-to-date net income
$6.8 million
down from $52.3 million for the same period in 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Oppenheimer Holdings (OPY) perform financially in the second quarter of 2026?
Oppenheimer reported Q2 2026 revenue of $454.9 million, up 21.9% from $373.2 million a year earlier. Net income was $27.4 million and basic EPS $2.55, compared with $21.7 million and $2.06 in the second quarter of 2025.
What were Oppenheimer Holdings (OPY) non-GAAP results for Q2 2026?
Excluding stock appreciation rights expense, adjusted net income was $45.7 million and adjusted basic EPS $4.27 in Q2 2026. A year earlier, adjusted net income was $27.8 million and adjusted basic EPS $2.64, reflecting substantial improvement in underlying operating performance.
Why is Oppenheimer Holdings (OPY) year-to-date 2026 net income much lower than in 2025?
For the six months ended June 30, 2026, Oppenheimer’s GAAP net income was $6.8 million, down from $52.3 million in 2025. The company recorded a $70.0 million pre-tax legal accrual related to settlement of “cash sweep” litigation, which significantly reduced reported earnings.
How did the Wealth Management and Capital Markets segments perform for OPY in Q2 2026?
Wealth Management revenue rose to $272.7 million (up 10.7%), with pre-tax income of $55.7 million. Capital Markets revenue reached $179.2 million (up 45.7%), and pre-tax results improved from a $3.9 million loss to $22.5 million pre-tax income versus Q2 2025.
What were Oppenheimer Holdings (OPY) assets under management and administration at June 30, 2026?
At June 30, 2026, Oppenheimer reported record assets under management (AUM) of $59.4 billion and assets under administration (AUA) of $154.7 billion. The $6.6 billion year-over-year AUM increase reflected $9.4 billion of higher asset values partly offset by $2.8 billion in net distributions.
How did compensation costs and tax rate change for Oppenheimer Holdings (OPY) in Q2 2026?
Compensation and related expenses rose to $307.1 million in Q2 2026, representing 67.5% of revenue, versus 64.1% a year earlier. The effective tax rate declined to 30.7% from 32.7%, mainly due to fewer nondeductible foreign losses.