OPY · Oppenheimer Holdings Inc.

Oppenheimer Holdings Inc. posted Q1 2026 revenue of $445.1 million, a 21% increase from $367.8 million in the prior year quarter, primarily fueled by investment banking fees surging 105.2% to $97.7 million, commissions up 15.7% to $128.3 million, and advisory fees growing 10% to $141.7 million on higher billable AUM. Wealth Management remains the largest segment at 57% of revenue, while Capital Markets contributed 42%. Assets under administration reached $139.8 billion and AUM $54.1 billion as of March 31, 2026, boosted by market appreciation. Despite revenue growth, GAAP pre-tax loss was $27.0 million versus $41.4 million income last year, driven by total expenses rising 44.6% to $472.1 million. Compensation expenses climbed 30.3% to $296.0 million due to $22.3 million mark-to-market expense on liability-based stock appreciation rights tied to share price gains, higher production costs, and incentive accruals. Non-compensation expenses more than doubled to $176.1 million, dominated by a one-time $70 million pre-tax accrual for the 'cash sweep' class action litigation settlement. Excluding these items, adjusted non-GAAP net income was $47.5 million or $4.46 basic EPS, reflecting underlying operational strength. The Board raised the quarterly dividend 11.1% to $0.20 per share, signaling confidence in cash generation amid $952.4 million stockholders' equity and strong regulatory capital of $437.2 million. Management views the litigation and stock rights expenses as non-recurring or volatility-driven, with the presentation intended as summary information alongside recent 10-Q and 10-K filings.