Robert S. Lowenthal, President and CEO commented, "I am very pleased with our third quarter operating performance which saw a substantial increase in investment banking revenues amid a still-favorable capital raising environment. Market concerns about lingering inflation, a weakening labor market and eroding central bank independence were outweighed by the positive sentiments emanating from the Federal Reserve embarking on a new rate cutting cycle. In addition, continuing enthusiasm around the potential for spending related to the utilization of artificial intelligence (AI) resulted in extended rallies that pushed all major indices to new record highs in September. These conditions spurred a significant rise in new equity issuance volumes and resulted in significantly higher investment banking revenues during the third quarter.
The momentum in the financial markets also provided a positive backdrop for our Wealth Management business, as rising markets propelled assets under management ("AUM") to a new all-time high. This in turn drove higher fee-based revenues while strong investor sentiment also led to higher transaction volumes and commissions. Our Wealth Management results, however, were adversely impacted by reduced interest-sensitive sweep income largely due to lower average sweep balances and rates.
Although we were gratified to see markets recognize our success by bidding up our share price to a new record high, it also drove higher compensation expense associated with certain employee liability-based awards that rose in value in direct correlation with the increase in our share price during the quarter and negatively impacted our results for the quarter.
With three-quarters of the year now behind us, we have already exceeded the Company's full year 2024 operating results. As we enter the fourth quarter, we remain focused on our clients, helping them raise, manage and allocate their capital. Our success is a reflection of good client outcomes and long-term relationships built over many market cycles. We are optimistic about the future and the many investment opportunities available, while remaining cautious and vigilant about the uncertainties that could emerge."
Summary Operating Results (Unaudited)
('000s, except per share amounts or otherwise indicated)
Firm
3Q-25
3Q-24
Revenue
$ 424,438
$ 373,352
Compensation Expenses
$ 290,222
$ 237,935
Non-compensation Expenses
$ 102,581
$ 100,047
Pre-Tax Income
$ 31,635
$ 35,370
Income Tax Provision
$ 9,923
$ 10,862
Net Income (1)
$ 21,712
$ 24,508
Earnings Per Share (Basic) (1)
$ 2.06
$ 2.38
Earnings Per Share (Diluted) (1)
$ 1.90
$ 2.16
Book Value Per Share
$ 87.47
$ 81.10
Tangible Book Value Per Share (2)
$ 70.48
$ 64.03
Wealth Management
Revenue
$ 259,726
$ 246,049
Pre-Tax Income
$ 62,528
$ 72,015
Assets Under Administration (billions)
$ 143.5
$ 129.8
Assets Under Management (billions)
$ 55.1
$ 49.1
Capital Markets
Revenue
$ 162,145
$ 124,030
Pre-Tax Income (Loss)
$ 12,289
$ (6,144)
(1) Attributable to Oppenheimer Holdings Inc.
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding.
Highlights
Higher revenue for the third quarter of 2025 was primarily driven by robust equity underwriting volumes, an increase in transaction-based commissions and greater advisory fees attributable to a rise in billable AUM
Rising equities markets propelled both assets under administration and assets under management to new record highs at September 30, 2025
Compensation expenses increased from the prior year quarter largely as the result of greater production-related expenses, higher bonus accruals and elevated costs associated with stock appreciation rights tied to the Company's share price
Non-compensation expenses increased from the prior year quarter primarily due to higher underwriting and technology-related expenses partially offset by lower interest 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 $259.7 million, 5.6% higher compared with the prior year period. Pre-tax income was $62.5 million in the current quarter, a decrease of 13.2% compared with a year ago. Financial advisor headcount at the end of the current quarter was 927, flat when compared to 928 at the end of the third quarter of 2024.
('000s, except otherwise indicated)
3Q-25
3Q-24
Revenue
$ 259,726
$ 246,049
Commissions
$ 61,862
$ 54,872
Advisory Fees
$ 134,396
$ 121,619
Bank Deposit Sweep Income
$ 28,349
$ 34,875
Interest
$ 22,381
$ 24,331
Other
$ 12,738
$ 10,352
Total Expenses
$ 197,198
$ 174,034
Compensation
$ 148,978
$ 125,270
Non-compensation
$ 48,220
$ 48,764
Pre-Tax Income
$ 62,528
$ 72,015
Compensation Ratio
57.4 %
50.9 %
Non-compensation Ratio
18.6 %
19.8 %
Pre-Tax Margin
24.1 %
29.3 %
Assets Under Administration (billions)
$ 143.5
$ 129.8
Assets Under Management (billions)
$ 55.1
$ 49.1
Cash Sweep Balances (billions)
$ 2.8
$ 2.8
Revenue:
Retail commissions increased 12.7% from the prior year period primarily due to higher retail transaction volumes
Advisory fees increased 10.5% due to higher AUM during the billing period
Bank deposit sweep income decreased $6.5 million from a year ago due to lower average cash sweep balances and lower short-term interest rates
Interest revenue decreased 8.0% from a year ago primarily due to lower short-term interest rates
Other revenue increased slightly from a year ago due to a number of items, including 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 and greater death benefit insurance proceeds
Assets under Management (AUM):
AUM reached a record high of $55.1 billion at September 30, 2025, which is the basis for advisory fee billings for October 2025
The increase in AUM from the prior year period was comprised of higher asset values of $6.8 billion on existing client holdings, offset by net distributions of $0.8 billion including remittances
Total Expenses:
Compensation expenses increased 18.9% from the prior year period primarily due to higher production related expenses and elevated expenses associated with share appreciation rights
Non-compensation expenses were flat from a year ...
