Core Viewpoint - Piper Sandler Companies (PIPR) is showing potential for a bullish breakout due to a recent "golden cross" in its moving averages, indicating a key level of support has been reached [1] Technical Analysis - PIPR's 50-day simple moving average has crossed above its 200-day simple moving average, forming a "golden cross," which is a bullish technical chart pattern [1] - A golden cross typically follows a downtrend, where the shorter moving average crosses above the longer moving average, leading to a positive trend reversal and continued upward momentum [2] Performance Metrics - Over the past four weeks, PIPR has gained 11.4%, indicating strong performance [3] - The company currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [3] Earnings Expectations - There has been one upward revision in earnings expectations for the current quarter, with no downward changes in the past 60 days, and the Zacks Consensus Estimate has also increased [3] - The positive movement in earnings estimates, combined with the technical factors, suggests that PIPR may continue to see gains in the near future [5]

Part I. Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Piper Sandler Companies' unaudited consolidated financial statements as of June 30, 2025, including statements of financial condition, operations, cash flows, and detailed notes [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets decreased to **$1.96 billion** by June 30, 2025, from **$2.26 billion** at year-end 2024, mainly due to reduced cash and cash equivalents Consolidated Statements of Financial Condition (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,959,140** | **$2,255,936** | | Cash and cash equivalents | $123,323 | $482,834 | | Total financial instruments owned | $488,579 | $425,728 | | Goodwill | $311,944 | $312,024 | | **Total Liabilities** | **$559,726** | **$840,163** | | Accrued compensation | $299,903 | $563,088 | | **Total Shareholders' Equity** | **$1,399,414** | **$1,415,773** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 net revenues increased **17.0%** to **$396.8 million**, with diluted EPS rising to **$2.38**, while six-month net revenues grew **10.5%** to **$754.1 million** Q2 2025 vs Q2 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $398,577 | $340,844 | | Net Revenues | $396,778 | $339,179 | | Net Income Attributable to Piper Sandler | $42,182 | $34,773 | | Diluted EPS | $2.38 | $1.97 | Six Months 2025 vs 2024 Performance (in thousands, except per share data) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Total Revenues | $757,131 | $685,283 | | Net Revenues | $754,050 | $682,235 | | Net Income Attributable to Piper Sandler | $107,097 | $77,266 | | Diluted EPS | $6.03 | $4.40 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$175.1 million** for the six months ended June 30, 2025, reversing from **$69.3 million** provided in 2024, leading to a **$359.5 million** decrease in cash Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | $(175,081) | $69,289 | | Net cash used in investing activities | $(25,364) | $(4,652) | | Net cash used in financing activities | $(162,229) | $(126,291) | | **Net decrease in cash and cash equivalents** | **$(359,511)** | **$(62,163)** | | Cash and cash equivalents at end of period | $123,323 | $320,935 | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, acquisitions like Aviditi Advisors and G Squared Capital Partners, fair value measurements, equity activities, and compensation plans - On August 23, 2024, the company completed the acquisition of Aviditi Capital Advisors, LLC, an alternative investment bank, adding private capital advisory capabilities, which resulted in **$10.2 million** of goodwill[34](index=34&type=chunk)[35](index=35&type=chunk) - The company declared and paid quarterly cash dividends aggregating **$1.30 per share** and a special cash dividend of **$3.00 per share** during the first six months of 2025[113](index=113&type=chunk) - On August 1, 2025, the company announced a definitive agreement to acquire G Squared Capital Partners LLC, a boutique investment bank specializing in government services and defense technology, with the transaction expected to close in Q3 2025[177](index=177&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial performance, highlighting revenue growth, strategic acquisitions, market conditions, liquidity, capital resources, and risk management [Executive Overview](index=38&type=section&id=Executive%20Overview) The company, focusing on middle-market investment banking, completed the Aviditi Advisors acquisition and announced G Squared Capital Partners, with Q2 2025 GAAP net revenues up **17.0%** to **$396.8 million** - Recent strategic growth initiatives include the completed acquisition of Aviditi Advisors on August 23, 2024, and the announced definitive agreement to acquire G Squared Capital Partners LLC on August 1, 2025[184](index=184&type=chunk) Q2 2025 Financial Highlights (U.S. GAAP) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $396,778 | $339,179 | 17.0% | | Net income attributable to Piper Sandler | $42,182 | $34,773 | 21.3% | | Earnings per diluted common share | $2.38 | $1.97 | 20.8% | [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 net revenues increased **17.0%** to **$396.8 million**, driven by **9.0%** growth in investment banking and **22.5%** in institutional brokerage, despite a decline in corporate financing Q2 2025 vs Q2 2024 Revenue Breakdown (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total investment banking | $283,085 | $259,782 | 9.0% | | - Advisory services | $206,202 | $183,908 | 12.1% | | - Corporate financing | $34,976 | $50,641 | (30.9)% | | - Municipal financing | $41,907 | $25,233 | 66.1% | | Total institutional brokerage | $112,374 | $91,737 | 22.5% | | **Net revenues** | **$396,778** | **$339,179** | **17.0%** | - Compensation expenses for Q2 2025 increased **10.0%** to **$258.2 million** due to higher revenues, but the compensation ratio improved, decreasing to **65.1%** from **69.2%** in Q2 2024[209](index=209&type=chunk) - Restructuring and integration costs for Q2 2025 were **$5.0 million**, primarily consisting of **$2.9 million** in severance benefits and **$1.8 million** for vacated office space related to the Aviditi Advisors acquisition[216](index=216&type=chunk) [Liquidity, Funding and Capital Resources](index=54&type=section&id=Liquidity%2C%20Funding%20and%20Capital%20Resources) The company maintains robust liquidity, with an adjusted leverage ratio of **1.6x** as of June 30, 2025, and **$222.7 million** in net capital, significantly exceeding regulatory minimums - The company's board authorized a **$150.0 million** share repurchase program effective February 5, 2025, with **$16.6 million** in shares repurchased during the first six months of 2025 under this authorization[261](index=261&type=chunk) Leverage Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Leverage ratio | 1.4 | 1.6 | | Adjusted leverage ratio | 1.6 | 1.9 | - At June 30, 2025, the company's net capital was **$222.7 million**, which was **$221.7 million** in excess of the SEC's minimum requirement[278](index=278&type=chunk) [Risk Management](index=60&type=section&id=Risk%20Management) The company employs a formal risk management process to identify and monitor strategic, market, liquidity, credit, operational, human capital, and legal/regulatory risks, overseen by internal committees and the board - The company's principal risks are identified as strategic, market, liquidity, credit, operational, human capital, and legal/regulatory risk[291](index=291&type=chunk) - As of June 30, 2025, the company estimates that a parallel **50 basis point** adverse change in interest rates would result in a decrease of approximately **$0.7 million** in the carrying value of its fixed income securities inventory, including hedging effects[300](index=300&type=chunk) Credit Rating of Long Fixed Income Securities (June 30, 2025) | Rating | % of Total | | :--- | :--- | | AAA | 11.2% | | AA | 73.8% | | A | 11.1% | | BBB | 0.1% | | BB | 0.0% | | Not Rated | 3.8% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the detailed discussion of market risk from the 'Risk Management' section in Item 2 of this report - The disclosures about market risk are incorporated by reference from the 'Risk Management' section in Part I, Item 2 of the report[324](index=324&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of the end of the period[325](index=325&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter that materially affected, or are reasonably likely to materially affect, internal controls[326](index=326&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal proceedings from Note 13, with management believing pending actions will not materially affect financial condition or operations - The discussion of legal proceedings is incorporated by reference from Note 13 to the consolidated financial statements[327](index=327&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024[329](index=329&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **84,608** shares at an average of **$246.88** per share, with **$133.4 million** remaining for future repurchases Share Repurchases for the Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | April 2025 | 11,894 | $230.04 | — | | May 2025 | 64,777 | $249.02 | 61,850 | | June 2025 | 7,937 | $254.69 | 4,908 | | **Total** | **84,608** | **$246.88** | **66,758** | - As of the end of Q2 2025, **$133.4 million** remained under the company's share repurchase authorization, which is effective through December 31, 2026[332](index=332&type=chunk)

Core Viewpoint - Piper Sandler Companies (PIPR) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system focuses on changes in earnings estimates, which are crucial for assessing a company's future performance and stock price movements [2][5]. - The Zacks Consensus Estimate for Piper Sandler Companies has increased by 8.5% over the past three months, reflecting analysts' growing confidence in the company's earnings potential [9]. Impact of Institutional Investors - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to significant stock price movements when estimates are revised [5][6]. - The upgrade to Zacks Rank 1 positions Piper Sandler in the top 5% of stocks covered by Zacks, suggesting strong potential for market-beating returns in the near term [10][11]. Historical Performance of Zacks Rank - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, highlighting the effectiveness of earnings estimate revisions in predicting stock performance [8]. Conclusion - The upgrade of Piper Sandler Companies reflects an overall improvement in its business outlook, which is expected to drive stock price appreciation as investor sentiment becomes more favorable [4][6].

Group 1 - Piper Sandler Companies reported quarterly earnings of $2.95 per share, exceeding the Zacks Consensus Estimate of $1.99 per share, and showing an increase from $2.52 per share a year ago, resulting in an earnings surprise of +48.24% [1] - The company achieved revenues of $405.39 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 17.61%, compared to $339.18 million in the same quarter last year [2] - Piper Sandler Companies has outperformed consensus EPS estimates in all four of the last quarters [2] Group 2 - The stock has increased approximately 5.1% since the beginning of the year, while the S&P 500 has gained 7.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $2.92 on revenues of $406.9 million, and for the current fiscal year, it is $12.75 on revenues of $1.6 billion [7] Group 3 - The Financial - Investment Bank industry, to which Piper Sandler belongs, is currently ranked in the top 7% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Piper Sandler was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Adjusted net revenues for the second quarter of 2025 were $405 million, with an operating margin of 18.1% and adjusted EPS of $2.95, all higher compared to the same period last year [6][20][21] - Advisory revenues reached $206 million during the quarter, up 12% year over year, driven by a higher average fee and a total of 71 transactions completed [6][7] - For the first half of 2025, net revenues totaled $789 million, with an operating income of $142 million and an operating margin of 18% [20][21] Business Line Data and Key Metrics Changes - Advisory services accounted for 54% of total net revenues, increasing 24% year over year, with strong performance in M&A and non-M&A advisory services [21][22] - Corporate financing revenues were $35 million, down 31% from the previous year, with 26 financings completed, raising $10 billion for corporate clients [10][11] - Municipal financing revenues increased by 66% year over year to $42 million, driven by strong demand and favorable market conditions [14] - Equity brokerage revenues were $58 million, up 12% year over year, with robust trading activity [16] - Fixed income revenues reached $54 million, up 21% from the first quarter and 37% from the previous year, driven by strong activity with depository clients [17] Market Data and Key Metrics Changes - The economic fee pool for companies with sub-five billion dollars of market cap decreased by 19% year over year, with a significant 61% decline in the biopharma sector [11] - The IPO market is showing signs of improvement, particularly in med tech, although biotech IPOs remain slow [43][44] Company Strategy and Development Direction - The company is focused on expanding its M&A business and technology capabilities, as evidenced by the acquisition of G Squared Capital Partners [26][28] - There is a strategic emphasis on managing headcount and driving productivity while enhancing sector and product expertise [12][13] Management's Comments on Operating Environment and Future Outlook - The macro environment has shown improvement, with increased client engagement and a robust pipeline of transactions expected to continue into the third quarter [5][9] - Management expressed optimism about the advisory services outlook, despite some volatility impacting deal processes earlier in the quarter [9][10] Other Important Information - The company repurchased approximately 85,000 shares for $21 million and paid $17 million in dividends during the quarter [24][25] - A $0.05 increase in the quarterly cash dividend to $0.70 per share was announced, effective September 12 [24][25] Q&A Session Summary Question: What does a more normal bank consolidation market mean for revenue? - Management noted that conditions for depository M&A have improved, with quicker regulatory approvals and an increase in transaction announcements expected to impact revenues positively [32][33] Question: How is the Avidity acquisition enhancing client connectivity? - Management reported that the acquisition has met expectations, enhancing relationships with senior partners and improving overall transaction activity [36][38] Question: What is the outlook for the IPO market, particularly in biotech? - Management indicated that while the IPO market is improving, biotech remains slow, with a need for continued improvement before significant activity resumes [43][44] Question: How do the fixed income trading and bank M&A outlooks align? - Management clarified that the strong second quarter in fixed income does not contradict the positive outlook for bank M&A, as both areas are experiencing different dynamics [46][50] Question: What is the current state of conversations with sponsor clients? - Management observed increased activity and a positive outlook for transactions in the second half of the year, although caution remains [55][56] Question: What is the trajectory for compensation and non-compensation expenses? - Management expects the compensation ratio to remain stable, while non-compensation expenses may trend higher due to increased occupancy and legal fees [76][78]

Financial Data and Key Metrics Changes - Adjusted net revenues for Q2 2025 were $405 million, with an operating margin of 18.1% and adjusted EPS of $2.95, all higher compared to the same period last year [5][19] - Advisory revenues reached $206 million during the quarter, up 12% year over year, driven by a higher average fee and an increase in completed transactions [5][6] - For the first half of 2025, net revenues totaled $789 million, with an operating income of $142 million and an operating margin of 18% [19][20] Business Line Data and Key Metrics Changes - Advisory revenues for the first half of 2025 were $423 million, up 24% compared to the previous year, with significant growth in M&A and non-M&A advisory services [6][20] - Corporate financing revenues were $35 million, down 31% year over year, with 26 financings completed, raising $10 billion for corporate clients [9][10] - Public finance revenues increased by 66% year over year to $42 million, driven by strong market conditions and demand [13] - Equity brokerage revenues were $58 million, a 12% increase year over year, with robust trading activity [15] - Fixed income revenues reached $54 million, up 37% from the previous year, driven by strong activity with depository clients [16] Market Data and Key Metrics Changes - The economic fee pool for companies with sub-five billion dollars market cap decreased by 19% year over year, with a notable 61% decline in the biopharma sector [10] - The municipal financing market saw a 15% growth in par value issuance, with Piper Sandler exceeding this growth with a 66% increase in revenues [13] Company Strategy and Development Direction - The company is focused on expanding its M&A business and enhancing its technology investment banking group through strategic acquisitions, such as the planned acquisition of G Squared Capital Partners [25][26] - Investments in non-M&A advisory capabilities are gaining traction, with total revenues from these product lines growing faster than overall advisory revenues [6][7] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in market sentiment and improved client engagement, leading to a robust pipeline of announced and in-process transactions [4][9] - The outlook for advisory services is positive, with expectations for third-quarter advisory revenues to be consistent with the second quarter [9] - Management expressed confidence in the recovery of the IPO market, particularly in sectors like med tech and insurance, while noting challenges in the biotech IPO space [40][42] Other Important Information - The company repurchased approximately 85,000 shares for $21 million and paid $17 million in dividends during the quarter [23][24] - A restructuring charge of $5 million was included in GAAP results due to headcount reductions and vacated office space [18] Q&A Session Summary Question: What does a more normal bank consolidation market mean for revenue? - Management indicated that conditions for depository M&A are improving, with quicker regulatory approvals and an increase in transaction announcements expected to impact revenues positively [30][32] Question: How is the Avidity acquisition enhancing client connectivity? - Management reported that the acquisition has met expectations, enhancing relationships with senior partners and improving overall transaction activity [34][36] Question: What is the outlook for the IPO market, especially in biotech? - Management noted a general improvement in the IPO market but highlighted that biotech IPOs remain slow, requiring continued improvement before significant activity resumes [42][43] Question: How do the fixed income trading and bank M&A outlooks align? - Management clarified that the strong Q2 results in fixed income do not contradict the positive outlook for bank M&A, attributing the fixed income performance to large transactions [44][46] Question: How are conversations with sponsor clients evolving? - Management observed increased activity and a positive outlook for transactions, although caution remains in the process [55][56] Question: What is the confidence level in achieving the $2 billion investment banking target? - Management expressed confidence in achieving the target, citing diverse growth opportunities across various industry teams [57][61]

[Second Quarter 2025 Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Results%20Overview) [Second Quarter 2025 Performance Summary](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Summary) Piper Sandler reported strong Q2 2025 results with significant year-over-year revenue and EPS growth across both GAAP and adjusted metrics, alongside a dividend increase | Metric | U.S. GAAP | vs. Q2-24 | Adjusted (Non-GAAP) | vs. Q2-24 | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $397 million | 17% | $405 million | 14% | | Pre-tax Margin | 12.3% | +4.0pp | 18.1% | +0.8pp | | Net Income | $42 million | 21% | $53 million | 17% | | Diluted EPS | $2.38 | 21% | $2.95 | 17% | - The strong quarterly results were attributed to year-over-year revenue growth across many businesses, highlighting the benefits of product and sector diversification in a more constructive market environment[3](index=3&type=chunk) [Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) The company achieved robust revenue growth in key segments, pursued strategic acquisitions and talent acquisition, and returned **$189 million** to shareholders in H1 2025 - Key revenue drivers for Q2 2025 included: **Advisory services revenues of $206 million, up 12% YoY**; **Municipal financing revenues of $42 million**, the best quarter since 2021; and **Institutional brokerage revenues of $112 million, up 22% YoY**[6](index=6&type=chunk) - Strategic growth initiatives included the pending acquisition of G Squared Capital Partners and the hiring of several managing directors to strengthen various advisory groups[6](index=6&type=chunk) - Capital management included an increased quarterly cash dividend to **$0.70 per share** and a total of **$189 million** returned to shareholders in H1 2025 through repurchases and dividends[6](index=6&type=chunk) [U.S. GAAP Financial Results](index=2&type=section&id=U.S.%20GAAP%20Financial%20Results) [U.S. GAAP Selected Financial Data](index=2&type=section&id=U.S.%20GAAP%20Selected%20Financial%20Data) Q2 2025 U.S. GAAP net revenues increased **17%** to **$396.8 million**, with net income up **21%** to **$42.2 million** or **$2.38** per diluted share | U.S. GAAP (in thousands) | Q2 2025 | Q2 2024 | Change vs. Q2-24 | | :--- | :--- | :--- | :--- | | Net Revenues | $396,778 | $339,179 | 17% | | Total Non-interest Expenses | $347,854 | $310,933 | 12% | | Income Before Income Tax | $48,924 | $28,246 | 73% | | Net Income Attributable to Piper Sandler | $42,182 | $34,773 | 21% | | Earnings Per Diluted Share | $2.38 | $1.97 | 21% | | Business Metrics | Q2 2025 | Q2 2024 | Change vs. Q2-24 | | :--- | :--- | :--- | :--- | | Total Completed Advisory Transactions | 71 | 68 | 4% | | Municipal Negotiated Issues (Par Value) | $5.7 billion | $3.2 billion | 78% | | Equity Brokerage Shares Traded | 2.9 billion | 2.8 billion | 4% | [Detailed Revenue Analysis (GAAP)](index=3&type=section&id=Detailed%20Revenue%20Analysis%20(GAAP)) Q2 2025 total net revenues increased **17%** to **$396.8 million**, driven by **9%** growth in investment banking and **22%** in institutional brokerage | Revenue Segment (GAAP) | Q2 2025 ($M) | vs. Q2 2024 | | :--- | :--- | :--- | | Advisory Services | $206.2 | 12% | | Corporate Financing | $35.0 | -31% | | Municipal Financing | $41.9 | 66% | | **Total Investment Banking** | **$283.1** | **9%** | | Equity Brokerage | $58.1 | 12% | | Fixed Income Services | $54.3 | 37% | | **Total Institutional Brokerage** | **$112.4** | **22%** | - Significant growth in municipal financing was driven by increased issuance activity, while fixed income services benefited from increased depository client activity and balance sheet restructuring trades[13](index=13&type=chunk) [Expense and Profitability Analysis (GAAP)](index=4&type=section&id=Expense%20and%20Profitability%20Analysis%20(GAAP)) Total non-interest expenses increased **12%** to **$347.9 million**, yet the pre-tax margin improved to **12.3%** due to higher revenues and a lower compensation ratio - The compensation ratio decreased to **65.1%** from **69.2%** in Q2 2024, primarily due to higher net revenues[8](index=8&type=chunk)[19](index=19&type=chunk) - Non-compensation expenses increased **18% YoY**, driven by higher reimbursed deal expenses and **$5.0 million** in restructuring and integration costs[19](index=19&type=chunk) - The pre-tax margin expanded to **12.3%** in Q2 2025 from **8.3%** in Q2 2024, driven by revenue growth and a lower compensation ratio[16](index=16&type=chunk) [Non-GAAP Financial Results](index=5&type=section&id=Non-GAAP%20Financial%20Results) [Non-GAAP Selected Financial Data](index=5&type=section&id=Non-GAAP%20Selected%20Financial%20Data) Q2 2025 adjusted net revenues grew **14%** to **$405.4 million**, with adjusted operating income up **19%** to **$73.4 million** and diluted EPS at **$2.95** | Adjusted (Non-GAAP) (in thousands) | Q2 2025 | Q2 2024 | Change vs. Q2-24 | | :--- | :--- | :--- | :--- | | Adjusted Net Revenues | $405,388 | $356,710 | 14% | | Adjusted Total Operating Expenses | $332,016 | $295,116 | 13% | | Adjusted Operating Income | $73,372 | $61,594 | 19% | | Adjusted Net Income | $52,741 | $45,221 | 17% | | Adjusted Earnings Per Diluted Share | $2.95 | $2.52 | 17% | [Detailed Revenue, Expense, and Profitability Analysis (Non-GAAP)](index=6&type=section&id=Detailed%20Revenue%2C%20Expense%2C%20and%20Profitability%20Analysis%20(Non-GAAP)) Adjusted net revenues grew **14% YoY**, leading to an improved adjusted operating margin of **18.1%** due to higher revenues and a lower compensation ratio - Adjusted operating margin improved to **18.1%** in Q2 2025 from **17.3%** in Q2 2024, driven by higher adjusted net revenues and a lower adjusted compensation ratio[25](index=25&type=chunk) - The adjusted compensation ratio decreased to **62.0%** from **62.9%** in Q2 2024, reflecting operating leverage from higher adjusted net revenues[30](index=30&type=chunk) - Adjusted non-compensation expenses rose **14% YoY**, primarily due to higher reimbursed deal expenses and increased outside services costs[30](index=30&type=chunk) [Capital Management](index=6&type=section&id=Capital%20Management) [Dividends](index=6&type=section&id=Dividends) The company increased its quarterly cash dividend to **$0.70 per share** and returned **$87.3 million** to shareholders through dividends in H1 2025 - The quarterly cash dividend was increased by **$0.05** to **$0.70 per share**, payable on September 12, 2025[28](index=28&type=chunk) - Total dividends returned to shareholders in the first half of 2025 amounted to **$87.3 million**, or **$4.30 per share**[29](index=29&type=chunk) [Share Repurchases](index=7&type=section&id=Share%20Repurchases) In Q2 2025, the company repurchased **85,000 shares** for **$20.9 million**, contributing to **$101.5 million** in repurchases for H1 2025 - During Q2 2025, the company repurchased **$20.9 million** of its common stock (**85,000 shares**) at an average price of **$246.88 per share**[31](index=31&type=chunk) - For the first half of 2025, total share repurchases were **$101.5 million** (**351,000 shares**), with a significant portion covering tax obligations for vesting restricted stock awards[32](index=32&type=chunk) [Additional Information](index=7&type=section&id=Additional%20Information) [Human Capital and Shareholder Information](index=7&type=section&id=Human%20Capital%20and%20Shareholder%20Information) As of June 30, 2025, Piper Sandler had **1,845 full-time employees** and **182 corporate investment banking managing directors**, with common shareholders' equity at **$1.23 billion** | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Full-time employees | 1,845 | 1,768 | | Corporate investment banking managing directors | 182 | 170 | | Common shareholders' equity | $1,229.9 million | $1,126.3 million | [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to significant risks and uncertainties, including market volatility and geopolitical conditions, which may cause actual results to differ materially - The company provides a cautionary note that forward-looking statements are not guarantees of future performance and are subject to risks detailed in its SEC filings[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) [Financial Statements and Reconciliations](index=9&type=section&id=Financial%20Statements%20and%20Reconciliations) [U.S. GAAP Results of Operations](index=9&type=section&id=U.S.%20GAAP%20Results%20of%20Operations) This section presents the unaudited consolidated statements of operations on a U.S. GAAP basis for the three and six months ended June 30, 2025 and 2024 [Non-GAAP Selected Summary Financial Information](index=10&type=section&id=Non-GAAP%20Selected%20Summary%20Financial%20Information) This section summarizes the company's adjusted, non-GAAP financial results for the three and six months ended June 30, 2025 and 2024, for comparative analysis [Reconciliation of U.S. GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliation tables bridging U.S. GAAP to adjusted non-GAAP measures, including adjustments for investment losses, compensation, and restructuring costs

Company Performance - Piper Sandler Companies (PIPR) shares increased by 4.4% to close at $302.62, supported by solid trading volume, and have gained 11.5% over the past four weeks [1][2] - The stock has seen a price increase for two consecutive trading sessions, driven by growing investor optimism regarding investment banks due to a rebound in deal-making activities linked to clarity on Trump's tariff plans [2] Earnings Expectations - The company is expected to report quarterly earnings of $1.99 per share, reflecting a year-over-year decline of 21%, while revenues are projected to be $344.7 million, an increase of 1.6% from the previous year [3] - The consensus EPS estimate for Piper Sandler has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Piper Sandler belongs to the Zacks Financial - Investment Bank industry, which includes other companies like Citigroup (C), that closed 1.5% higher at $87.08, with a 9.5% return over the past month [5] - Citigroup's consensus EPS estimate has increased by 0.6% to $1.62, representing a year-over-year change of 6.6% [6]

This presentation also contains financial measures that are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Management believes that presenting results and measures on an adjusted basis alongside U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods and enhances the overall understanding of our current financial performance by excluding certain items that may not be indicative of our core operating results. The no ...

Group 1 - The Value Lab focuses on long-only value investment ideas, targeting international mispriced equities with a portfolio yield of approximately 4% [1][2] - Piper Sandler reported a decent quarter, with Q1 benefiting from volatility in the brokerage business, and Q2 expected to continue this trend [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are downside limited and likely to yield non-correlated and outsized returns in the current economic environment [3]