second quarter of 2026
Filed Jul 31, 2026Oppenheimer Holdings Inc. Reports Second Quarter 2026 Earnings
Revenue increased 21.9% to $454.9 million, Capital Markets revenue increased 45.7%, and adjusted net income increased to $45.7 million, while reported earnings were materially affected by a $24.9 million pre-tax stock appreciation rights expense.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 454,876 | – | 21.9% |
| Year to date revenueGAAP | $900.0 million | – | – |
| Compensation expensesGAAP | $ 307,141 | – | – |
| Non-compensation expensesGAAP | $ 108,290 | – | – |
| Pre-tax incomeGAAP | $ 39,445 | – | – |
| Income tax provisionGAAP | $ 12,094 | – | – |
| Net income attributable to Oppenheimer Holdings Inc.GAAP | $ 27,351 | – | – |
| Adjusted net income attributable to Oppenheimer Holdings Inc.non-GAAP | $ 45,713 | – | – |
| Earnings per share (Basic)GAAP | $ 2.55 | – | – |
| Adjusted earnings per share (Basic)non-GAAP | $ 4.27 | – | – |
| Earnings per share (Diluted)GAAP | $ 2.38 | – | – |
| Adjusted earnings per share (Diluted)non-GAAP | $ 3.98 | – | – |
| Book value per shareother | $ 91.84 | – | – |
| Tangible book value per shareother | $ 75.19 | – | – |
| Wealth Management pre-tax incomeGAAP | $ 55,654 | – | a decrease of 11.4% |
| Wealth Management AUA (billions)other | $ 154.7 | – | – |
| Wealth Management AUM (billions)other | $ 59.4 | – | – |
| Capital Markets pre-tax income (loss)GAAP | $ 22,542 | – | – |
| Capital stockholders' equityGAAP | $ 983.4 | – | – |
| Regulatory net capitalother | $ 444.8 | – | – |
| Regulatory excess net capitalother | $ 400.5 | – | – |
| Effective tax rateGAAP | 30.7 % | – | – |
| Six months ended June 30 adjusted net incomenon-GAAP | $93.2 million | – | – |
| Six months ended June 30 adjusted basic earnings per sharenon-GAAP | $8.73 | – | – |
| Six months ended June 30 net incomeGAAP | $6.8 million | – | – |
| Six months ended June 30 basic earnings per shareGAAP | $0.63 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wealth ManagementHigher retail commissions from elevated retail trading activity and higher advisory fees due to higher AUM during the billing period. | $272.7 million | – | 10.7% higher |
| Capital MarketsIncreased investment banking activity, including advisory and underwriting transactions, along with higher Equities and Fixed Income sales and trading revenue. | $179.2 million | – | 45.7% higher |
Capital returns
- Quarterly dividend of $0.20 per share payable on August 28, 2026 to holders of Class A non-voting and Class B voting common stock of record on August 14, 2026.
- Common stock repurchases: $ —, compared with $ 0.6.
- Number of shares repurchased: —, compared with 9,855.
- Average repurchase price: $ —, compared with $ 58.89.
- Period end shares: 10,708,005, compared with 10,517,924.
What drove it
- Firm revenue increased primarily due to stronger investment banking performance driven by advisory fees, plus increased transaction-based commissions and advisory fees attributable to growth in billable AUM.
- Wealth Management retail commissions increased 8.3%, and advisory fees increased 15.9%.
- AUM reached a record high of $59.4 billion at June 30, 2026. The increase was comprised of higher asset values of $9.4 billion on existing client holdings, offset by net distributions of $2.8 billion.
- Capital Markets investment-banking advisory fees increased 158.5%, Equities underwriting fees increased 46.0%, and Equities sales and trading revenue increased 37.8%.
- Capital Markets Fixed Income sales and trading revenue increased modestly, primarily due to higher levels of market volatility.
Concerns
- Second-quarter reported results included a $24.9 million pre-tax expense associated with an employee compensation program for financial advisors directly tied to the OPY stock price.
- Compensation expense as a percentage of revenue was 67.5% during the current period versus 64.1% during the prior-year period.
- Wealth Management pre-tax income decreased 11.4% despite revenue growth, as compensation expenses increased 24.4%.
- Bank deposit sweep income decreased $3.7 million from a year ago due to lower short-term interest rates.
- For the six months ended June 30, 2026, adjusted net income excludes a $70 million pre-tax legal accrual related to the settlement of the Company's cash sweep litigation recorded in the first quarter of 2026.
- Fixed income underwriting fees decreased 20.9% from the prior-year period, primarily driven by lower sovereign issuance volumes.
What to watch
- The impact of the revised employee compensation program formula, which management stated will take several years to be fully reflected.
- The level of stock appreciation rights expense, which was $24.9 million in the quarter, compared with $8.3 million in the prior-year period.
- Whether record AUM of $59.4 billion sustains advisory-fee growth.
- The effect of lower short-term interest rates on bank deposit sweep income.
- Investment banking advisory activity, underwriting volumes, and market volatility affecting sales and trading revenue.
Balance sheet and cash flow
- Capital stockholders' equity: $ 983.4, compared with $ 896.9.
- Regulatory net capital: $ 444.8, compared with $ 408.9.
- Regulatory excess net capital: $ 400.5, compared with $ 382.2.
- Book value per share: $ 91.84, compared with $ 85.27.
- Tangible book value per share: $ 75.19, compared with $ 68.25.
Analysis
Oppenheimer reported second-quarter revenue of $454.9 million, an increase of 21.9% from $373.2 million in the second quarter of 2025. Reported net income rose to $27.4 million, or $2.55 basic earnings per share, from $21.7 million, or $2.06 basic earnings per share. Adjusted net income, which excludes the stock appreciation rights expense, was $45.7 million, or $4.27 adjusted basic earnings per share, compared with $27.8 million, or $2.64 adjusted basic earnings per share.
Capital Markets was the principal growth contributor. Segment revenue was $179.2 million, 45.7% higher than the prior-year period, and pre-tax income was $22.5 million versus a pre-tax loss of $3.9 million. Investment banking revenue was $81.5 million versus $43.4 million, led by advisory fees of $58.1 million versus $22.5 million. Equities sales and trading revenue was $55.1 million versus $40.0 million, while Fixed Income sales and trading revenue was $41.5 million versus $39.0 million.
Wealth Management revenue was $272.7 million, 10.7% higher than the prior-year period, supported by retail commissions and advisory fees. AUM reached a record $59.4 billion and AUA reached $154.7 billion. However, segment pre-tax income declined to $55.7 million from $62.8 million as compensation expenses rose to $164.5 million from $132.3 million. Bank deposit sweep income declined to $25.0 million from $28.7 million because of lower short-term interest rates.
The primary earnings offset was stock appreciation rights expense. The quarter included $24.9 million of such expense, compared with $8.3 million in the prior-year period, after the Class A Stock price increased from $89.19 to $105.54 during the quarter. Firmwide compensation expense increased to $307.1 million from $239.1 million, and compensation expense as a percentage of revenue rose to 67.5% from 64.1%. The company stated that it changed the program formula beginning in 2026 to reduce the number of grants awarded, although the impact will take several years to be fully reflected.
Capital resources increased versus the prior-year quarter, with capital stockholders' equity of $983.4 million, regulatory net capital of $444.8 million, and regulatory excess net capital of $400.5 million. The board announced a $0.20 per-share quarterly dividend. No forward guidance was provided. The central reported items to follow are the durability of advisory and investment-banking activity, the effect of lower rates on sweep income, and the ongoing stock appreciation rights expense.
Management, verbatim
Favorable market conditions during the second quarter of 2026 helped drive the strong operating performance of our core businesses, although reported results were significantly and negatively impacted by the higher compensation expense related to stock appreciation rights for financial advisors.
Robert S. Lowenthal, President and CEO
We ended the quarter with a strong balance sheet and ample capital, positioning us to continue investing in our platform and capabilities.
Robert S. Lowenthal, President and CEO
Not in the filing
stated, not guessed- Forward revenue, expense, margin, tax-rate, earnings-per-share, or other financial guidance was not provided.
- Prior-quarter comparisons for reported metrics were not provided.
- Gross profit and gross margin were not reported.
- Operating income and operating margin were not reported.
- Cash balance, debt balance, operating cash flow, and free cash flow were not reported.
- CFO commentary was not provided in the supplied filing text.
- Detailed non-GAAP reconciliation schedule referenced on page 7 was not included in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.