Oppenheimer Holdings Inc. Reports Third Quarter 2025 Earnings

Core Insights - Oppenheimer Holdings Inc. reported a net income of $21.7 million or $2.06 basic earnings per share for Q3 2025, a decrease from $24.5 million or $2.38 per share in Q3 2024, primarily due to increased compensation expenses related to liability-based awards [1][4][22] - Revenue for Q3 2025 was $424.4 million, reflecting a 13.7% increase compared to $373.4 million in Q3 2024, driven by higher investment banking revenues and a favorable capital raising environment [1][2][20] Financial Performance - Revenue: Q3 2025 revenue was $424.4 million, up 13.7% from $373.4 million in Q3 2024 [1][20] - Net Income: Net income decreased to $21.7 million from $24.5 million year-over-year [1][20] - Earnings Per Share: Basic earnings per share fell to $2.06 from $2.38 in the prior year [1][20] - Compensation Expenses: Increased to $290.2 million from $237.9 million, a rise of 22.0% [6][23] - Pre-Tax Income: Pre-tax income was $31.6 million, down from $35.4 million in Q3 2024 [6][23] Wealth Management - Revenue: Wealth Management revenue was $259.7 million, a 5.6% increase from $246.0 million in the prior year [8][11] - Pre-Tax Income: Pre-tax income decreased by 13.2% to $62.5 million compared to $72.0 million in Q3 2024 [8][11] - Assets Under Management (AUM): AUM reached a record high of $55.1 billion, up from $49.1 billion year-over-year [8][11] Capital Markets - Revenue: Capital Markets revenue increased by 30.7% to $162.1 million from $124.0 million in Q3 2024 [11][12] - Pre-Tax Income: Pre-tax income improved to $12.3 million from a loss of $6.1 million in the previous year [11][12] - Investment Banking: Investment banking revenue rose significantly, driven by robust equity underwriting volumes [15][12] Market Conditions - The company experienced a favorable capital raising environment, with increased equity issuance volumes contributing to higher investment banking revenues [2][5] - Positive market sentiment, particularly regarding artificial intelligence spending, led to record highs in major indices [2][5] Shareholder Returns - The Board of Directors announced a quarterly dividend of $0.18 per share, payable on November 28, 2025 [22]