Oppenheimer Holdings Inc. Reports Second Quarter 2025 Earnings
, President and CEO commented, "The Firm's improved operating results for the quarter showcase the strength of our businesses and the maturing of investments in experienced team members over the past several years. At the outset of the quarter, recession fears mounted as announced policies on trade drove significant market volatility and triggered a large selloff in the equity markets. As tariffs were suspended, the markets broadly rallied with both the NASDAQ and S&P 500 reaching new record highs to close out the quarter. Concerns remained over tariff-induced inflation, a potentially softening labor market and conflict in the Middle East.
Rising markets proved quite favorable to our Wealth Management business revenue, with the rally driving assets under management ("AUM") to a fresh record, resulting in higher asset-based advisory fees when compared with the prior year period. Retail trading volumes, driven by investor interest, also remained robust, boosting commission revenue. However, the fees we earn on our FDIC sweep program are reduced from the prior year period due to lower deposit balances as clients sought higher returns in money market funds and other investments.
The Capital Markets businesses showed a substantial increase in total revenue. Institutional trading volumes were strong during the quarter due in part to increased volatility, which buoyed our sales and trading revenue. Investment Banking revenue also improved on the back of more advisory assignments that closed in the quarter and robust underwriting levels as capital markets re-opened. We are hopeful that higher deal volumes will continue in the latter half of the year as policymakers firm up key trade policy decisions and concerns around recession recede.
The Firm continues to maintain an unlevered balance sheet and ended the quarter with its capital reaching yet another all-time high. As we move into the second half of the year, we remain optimistic about our capabilities and our ability to continue delivering high quality services to our clients."
(1) Attributable to Oppenheimer Holdings Inc.
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding.
Highlights
Increased revenue for the second quarter of 2025 was primarily driven by significantly higher investment banking revenue due to an uptick in underwriting volumes and larger advisory mandates, an increase in transaction-based commissions and greater advisory fees attributable to a rise in billable AUM
Rising markets lifted assets under administration and under management to fresh records at June 30, 2025
Compensation expenses increased from the prior year quarter largely as the result of higher production and salary-related expenses
Non-compensation expenses increased from the prior year quarter primarily due to higher technology related expenses and greater travel and other miscellaneous costs
Total stockholders' equity, book value and tangible book value per share reached new record highs as a result of positive earnings
Wealth Management
Wealth Management reported revenue for the current quarter of $246.4 million, 5.1% higher compared with the prior year period. Pre-tax income was $62.8 million in the current quarter, a decrease of 2.2% compared with a year ago. Financial advisor headcount at the end of the current quarter was 927, compared to 934 at the end of the second quarter of 2024.
Revenue:
Retail commissions increased 3.6% from the prior year period primarily due to higher retail trading activity
Advisory fees increased 7.2% due to higher AUM during the billing period
Bank deposit sweep income decreased $6.2 million from a year ago due to lower cash sweep balances and lower short-term interest rates
Interest revenue was flat compared to the prior year period
Other revenue increased from a year ago primarily due 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
Assets under Management (AUM):
AUM reached a record high of $52.8 billion at June 30, 2025, which is the basis for advisory fee billings for July 2025
The increase in AUM from the prior year period was comprised of higher asset values of $8.9 billion on existing client holdings, offset by net distributions of $3.6 billion
Total Expenses:
Compensation expenses increased 7.1% from the prior year period primarily due to higher production related expenses and higher deferred compensation costs, partially offset by lower expenses associated with share appreciation rights
Non-compensation expenses increased 9.7% from a year ago primarily due to an increase in interest and other miscellaneous expenses
Capital Markets
Capital Markets reported revenue for the current quarter of $123.0 million, 33.5% higher when compared with the prior year period. Pre-tax loss was $3.9 million compared with a pre-tax loss of $21.8 million a year ago.
Revenue:
Investment Banking
Advisory fees earned from investment banking activities increased 83.0% compared with the prior year period due to increased deal volumes and larger mandate sizes
Equities underwriting fees increased 9.1% compared with the prior year period primarily due to higher underwriting fees associated with larger deal sizes
Fixed income underwriting fees increased 115.3% compared with the prior year period primarily due to higher corporate and sovereign issuance activity levels
Sales and Trading
Equities sales and trading revenue increased 20.2% compared with the prior year period mostly due to higher trading volumes and greater options-related commissions revenue
Fixed income sales and trading revenue increased 23.6% compared with a year ago largely due to higher trading volumes and interest income on trading inventory
Total Expenses:
Compensation expenses increased 10.0% compared with the prior year period largely due to greater production-related expenses
Non-compensation expenses were 13.8% higher than a year ago primarily due to an increase in communication and technology expenses and travel-related costs
Other Matters
The Board of Directors announced a quarterly dividend of $0.18 per share payable on August 29, 2025 to holders of Class A non-voting and Class B voting common stock of record on August 15, 2025
Compensation expense as a percentage of revenue was modestly lower at 64.1% during the current period versus 66.8% during the same period last year
The effective tax rate for the current period was 32.7% compared with 35.3% for the prior year period, as the impact of certain unfavorable permanent items and nondeductible foreign losses was reduced in the current period
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 New York and has 89 retail branch offices in the United States and institutional businesses located in London, Tel Aviv, and Hong Kong.
Forward-Looking Statements
This press release includes certain "forward-looking statements" relating to anticipated future performance. For a discussion of the factors that could cause future performance to be different than anticipated, reference is made to Factors Affecting "Forward-Looking Statements" and Part 1A – Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
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,
2025
2024
% Change
2025
2024
% Change
REVENUE
Commissions
$ 110,025
$ 97,055
13.4
$ 220,903
$ 192,905
14.5
Advisory fees
125,628
117,197
7.2
254,431
232,044
9.6
Investment banking
43,533
29,119
49.5
91,156
79,656
14.4
Bank deposit sweep income
28,654
34,846
(17.8)
58,729
71,531
(17.9)
Interest
38,017
34,805
9.2
74,386
61,571
20.8
Principal transactions, net
14,532
10,074
44.3
23,507
28,308
(17.0)
Other
12,789
7,493
70.7
17,891
17,712
1.0
Total revenue
373,178
330,589
12.9
741,003
683,727
8.4
EXPENSES
Compensation and related expenses
239,074
220,727
8.3
466,165
442,440
5.4
Communications and technology
26,204
24,682
6.2
52,386
49,258
6.4
Occupancy and equipment costs
15,578
15,516
0.4
31,587
31,364
0.7
Clearing and exchange fees
7,041
6,780
3.8
14,793
12,622
17.2
Interest
22,529
21,980
2.5
43,925
42,528
3.3
Other
30,542
25,039
22.0
58,561
52,195
12.2
Total expenses
340,968
314,724
8.3
667,417
630,407
5.9
Pre-Tax Income
32,210
15,865
103.0
73,586
53,320
38.0
Income tax provision
10,536
5,599
88.2
21,257
17,310
22.8
Net Income
$ 21,674
$ 10,266
111.1
$ 52,329
$ 36,010
45.3
Less: Net loss attributable to non-controlling interest, net of tax
—
—
—
(310)
Net income attributable to Oppenheimer Holdings Inc.
$ 21,674
$ 10,266
111.1
$ 52,329
$ 36,320
44.1
Earnings per share attributable to Oppenheimer Holdings Inc.
Basic
$ 2.06
$ 0.99
108.1
$ 4.99
$ 3.49
43.0
Diluted
$ 1.91
$ 0.92
107.6
$ 4.63
$ 3.29
40.7
Weighted average number of common shares outstanding
Basic
10,520,219
10,327,818
1.9
10,493,145
10,367,636
1.2
Diluted
11,349,049
11,111,903
2.1
11,308,979
11,083,422
2.0
Period end number of common shares outstanding
10,517,924
10,327,510
1.8
10,517,924
10,327,510
1.8
SOURCE Oppenheimer Holdings Inc.
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