Oppenheimer(OPY) - 2025 Q4 - Annual Results

Financial Performance - Oppenheimer Holdings Inc. reported a net income of $74.4 million for Q4 2025, a 593.1% increase from $10.7 million in Q4 2024, with revenue rising 25.9% to $472.6 million[1][2]. - For the full year 2025, net income reached $148.4 million, up 107.4% from $71.6 million in 2024, while revenue increased 14.4% to $1.6 billion[2]. - Total revenue for FY-25 was $591.3 million, a 32.0% increase from $447.6 million in FY-24[30]. - Pre-tax income for FY-25 was $56.2 million, compared to a loss of $39.6 million in FY-24[30]. - The effective tax rate improved to 29.9% in FY-25 from 32.6% in FY-24[37]. Segment Performance - Wealth Management segment revenue for Q4 2025 was $287.3 million, a 13.3% increase year-over-year, with pre-tax income rising 84.0% to $98.8 million[12][21]. - Capital Markets segment revenue for Q4 2025 was $182.9 million, a 53.3% increase compared to Q4 2024, with pre-tax income of $52.8 million compared to a loss of $5.0 million a year ago[16][19]. - The Capital Markets segment saw a significant increase in investment banking activity, with advisory fees from investment banking up 41.3% year-over-year[19]. - Investment banking revenue increased by 56.0% to $260.4 million from $166.8 million in the prior year[30]. - Equities underwriting fees surged by 163.8% compared to the prior year, reflecting higher new issuance activity in key sectors[32]. - Fixed income underwriting fees increased by $7.1 million, or 60.0%, due to a higher number of public finance transactions[32]. Expenses and Dividends - Compensation expenses increased to $260.1 million in Q4 2025, up from $256.4 million in Q4 2024, primarily due to higher production-related expenses[3][7]. - Non-compensation expenses for the full year 2025 rose to $410.4 million, reflecting higher underwriting and technology-related costs[3][7]. - Total expenses for FY-25 were $535.1 million, up 9.8% from $487.2 million in FY-24[30]. - The company declared a special dividend of $1.00 per share, payable in January 2026, and repurchased 46,292 shares at an average price of $64.36 during the year[7][9]. - The company announced a quarterly dividend of $0.18 per share for Q4 2025, payable on February 27, 2026[37]. Market Position and Outlook - Assets Under Management (AUM) reached a record $55.2 billion as of December 31, 2025, reflecting a $5.8 billion increase from the previous year due to market appreciation[15][21]. - The company remains well-positioned to navigate evolving market conditions and capitalize on opportunities across its businesses as it enters 2026[9]. - Retail commissions increased by 6.2% year-over-year, reaching a record high due to higher retail transaction volumes[26]. - Advisory fees rose by 14.9% from the prior year, driven by higher billable AUM and increased incentive fees from alternative investments[26].