OPY · Oppenheimer Holdings Inc.

Oppenheimer Holdings reported a mixed first quarter of 2026, where strong underlying operational performance was masked by significant one-time charges. The firm reported a GAAP net loss of $20.6 million, or $(1.93) per share, a sharp reversal from the $30.7 million profit in the prior year period. This loss was driven almost entirely by a $70 million pre-tax legal accrual related to the settlement of 'cash sweep' program litigation. Additionally, compensation expenses were elevated by $22.3 million due to mark-to-market adjustments on liability-based stock appreciation rights, triggered by a $16.90 increase in the Company's share price during the quarter. Excluding these items, adjusted net income was $47.5 million, or $4.46 per share, more than doubling the adjusted earnings from the first quarter of 2025.

Revenue growth was robust, increasing 21.0% year-over-year to $445.1 million. The Capital Markets segment was the standout performer, with revenue surging 53.4% to $189.1 million. Investment banking revenue more than doubled, driven by a 142.7% increase in advisory fees and a 107.7% jump in equities underwriting. This segment swung from a pre-tax loss of $5.1 million in the prior year to a pre-tax profit of $35.4 million. Wealth Management revenue grew 4.8% to $253.7 million, supported by higher advisory fees and retail commissions, though pre-tax income declined 35.8% due to the stock-based compensation expenses. Management highlighted that core businesses remained solid despite geopolitical volatility, noting that the conflict with Iran disrupted energy flows but also drove trading activity. The Board of Directors signaled confidence in the firm's capital position by increasing the quarterly dividend by 11.1% to $0.20 per share.