Executive Summary

Revenue rose 13.7% YoY to $424.4M, with net income of $21.7M and basic EPS of $2.06; results were negatively impacted by $13.5M of liability-based compensation tied to OPY share appreciation, reducing basic EPS by $0.95 after tax .
Investment Banking strength: equity underwriting fees surged to $48.3M from $12.6M (+284%), driving Capital Markets revenue up 30.7% YoY and swinging segment pre-tax to +$12.3M from a loss .
Wealth Management set AUM to a record $55.1B, boosting advisory fees (+10.5% YoY), but bank sweep income fell $6.5M YoY; firm-level compensation expense ratio climbed to 68.4% vs. 63.7% in the prior-year quarter .
Quarterly dividend maintained at $0.18 per share, payable Nov 28, 2025, with record date Nov 14, 2025 .
Macro tailwinds cited by management include the Federal Reserve’s rate-cutting cycle and enthusiasm for AI-related spending, supporting equity issuance momentum; however, higher liability-based compensation and reduced sweep revenue are near-term margin headwinds .

What Went Well and What Went Wrong

What Went Well

Robust equity underwriting: “Equities underwriting fees increased significantly…with large completed transactions in the financial institutions and technology sectors,” lifting Investment Banking revenue to $75.0M and Capital Markets pre-tax to +$12.3M .
Sales & Trading strength: Equities sales and trading revenue +32.5% YoY; Fixed Income S&T +8.0% YoY, aided by higher trading volumes and interest income on inventory .
AUM/AUA records: “Rising equities markets propelled both assets under administration and assets under management to new record highs,” driving advisory fees +10.5% YoY .
Quote: “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.” — Robert S. Lowenthal, President & CEO .

What Went Wrong

Investment Banking advisory fees -33.3% YoY due to absence of a large restructuring transaction present last year, partially offsetting underwriting strength .
Interest-sensitive revenue pressure: Bank deposit sweep income down $6.5M YoY on lower average sweep balances and rates; interest revenue also declined 8.0% YoY in Wealth Management .
Elevated compensation expense: Liability-based awards and stock appreciation rights tied to OPY’s share price increased costs, pushing firm-level compensation expense to 68.4% of revenue vs. 63.7% last year and weighing on EPS .

Financial Results

Consolidated Results vs Prior Periods

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$373.4	$373.2	$424.4
Pre-Tax Income ($USD Millions)	$35.4	$32.2	$31.6
Net Income ($USD Millions)	$24.5	$21.7	$21.7
EPS (Basic) ($USD)	$2.38	$2.06	$2.06
EPS (Diluted) ($USD)	$2.16	$1.91	$1.90
Compensation Expense % of Revenue	63.7%	64.1%	68.4%
Effective Tax Rate (%)	30.7%	32.7%	31.4%
Book Value Per Share ($USD)	$81.10	$85.27	$87.47
Tangible Book Value Per Share ($USD)	$64.03	$68.25	$70.48

Notes: Q3 2025 EPS was negatively impacted by $13.5M of liability-based compensation ($0.95 basic EPS after tax) .

Segment Breakdown

Segment Metric	Q3 2024	Q2 2025	Q3 2025
Wealth Mgmt Revenue ($USD Millions)	$246.0	$246.4	$259.7
Wealth Mgmt Pre-Tax ($USD Millions)	$72.0	$62.8	$62.5
Capital Markets Revenue ($USD Millions)	$124.0	$123.0	$162.1
Capital Markets Pre-Tax ($USD Millions)	$(6.1)	$(3.9)	$12.3

KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Assets Under Administration ($USD Billions)	$129.8	$138.4	$143.5
Assets Under Management ($USD Billions)	$49.1	$52.8	$55.1
Cash Sweep Balances ($USD Billions)	$2.8	$2.8	$2.8
Financial Advisor Headcount (#)	928	927	927

Guidance Changes

No formal financial guidance ranges were provided for revenue, margins, OpEx, OI&E, tax rate, or segment outcomes in Q3 2025. The following capital return item was disclosed.

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2025 (payable 11/28/2025; record 11/14/2025)	$0.18 (Q2 dividend, payable 8/29/2025)	$0.18	Maintained

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available via our sources; themes are drawn from company press releases.

Topic	Previous Mentions (Q1 2025 and Q2 2025)	Current Period (Q3 2025)	Trend
Macro/Policy & Rates	Q1: Tariff-induced inflation fears, recession risk, volatility lifted institutional trading . Q2: Tariffs suspended; markets rallied to records; recession fears receded .	Fed rate-cutting cycle and AI enthusiasm supported record equity indices and issuance volumes .	Improving issuance environment
Equity Underwriting	Q1: Flat YoY; fixed income underwriting +116.6% . Q2: Underwriting improved; IB revenue +49.5% YoY .	Equities underwriting fees increased significantly with large transactions in financial institutions and tech; IB revenue +48.5% YoY .	Strong acceleration
Advisory (IB)	Q1: Advisory -18.5% YoY on fewer private placements . Q2: Advisory +83.0% YoY on volume and mandate size .	Advisory -33.3% YoY due to absence of prior-year restructuring transaction .	Mixed/volatile
Wealth Mgmt AUM/Fees	Q1: AUM near records; advisory fees +12.2% YoY . Q2: Record AUM; advisory +7.2% YoY .	Record AUM $55.1B; advisory +10.5% YoY .	Positive
Sweep/Interest-sensitive	Q1: Sweep income -$6.6M YoY; lower rates and balances . Q2: Sweep income -$6.2M YoY .	Sweep income -$6.5M YoY; lower balances and rates .	Persistent headwind
Sales & Trading	Q1: Equities S&T +37.9% YoY; Fixed Income +5.2% . Q2: Equities +20.2% YoY; Fixed Income +23.6% .	Equities +32.5% YoY; Fixed Income +8.0% YoY .	Solid

Management Commentary

“A substantial increase in investment banking revenues amid a still-favorable capital raising environment…positive sentiments emanating from the Federal Reserve embarking on a new rate cutting cycle…enthusiasm around…artificial intelligence (AI) resulted in extended rallies…spurred a significant rise in new equity issuance volumes” — Robert S. Lowenthal, President & CEO .
“Rising markets propelled assets under management (AUM) to a new all-time high…higher fee-based revenues…strong investor sentiment led to higher transaction volumes and commissions…Wealth Management results…adversely impacted by reduced interest-sensitive sweep income” .
“Higher compensation expense associated with certain employee liability-based awards…rose in value in direct correlation with the increase in our share price…negatively impacted our results for the quarter” .

Q&A Highlights

No Q3 2025 earnings call transcript was available through our document search; therefore, no Q&A themes or clarifications could be sourced.

Estimates Context

S&P Global consensus estimates for OPY EPS and revenue were unavailable for Q3 2025 (and counts of estimates were not present). As a result, a beat/miss determination versus Wall Street consensus cannot be assessed at this time. Values retrieved from S&P Global.*

Key Takeaways for Investors

Equity issuance momentum and AI-related capital markets enthusiasm materially benefited underwriting, driving Capital Markets back to profitability; watch for sustainability into Q4 amid the Fed’s rate-cut cycle .
Wealth Management’s secular AUM growth continues to support advisory fee resilience, but lower sweep balances/rates remain a drag; mix shift favors fee-based revenues over interest-sensitive income .
Compensation intensity rose on liability-based awards tied to share price; near-term margin volatility is likely if OPY shares continue to appreciate sharply .
Dividend held at $0.18 per share, consistent capital return posture amid record book/tangible book per share and rising equity capital .
Advisory revenues are lumpy, influenced by large transactions; underwriting breadth across financial institutions and technology is the more durable driver near term .
Absent formal guidance and consensus visibility, focus on quarterly operating ratios (compensation expense % of revenue, tax rate) and segment pre-tax trajectory to gauge earnings power .
Near-term trading: strong IB/underwriting pipeline and record AUM are positive catalysts; monitor sweep income sensitivity and compensation dynamics as potential offsets .

Citations: Consolidated and segment metrics, KPIs, and commentary from OPY Q3 2025 8-K and press release , Q2 2025 press release/8-K , and Q1 2025 press release .

OPPENHEIMER HOLDINGS INC (OPY)·Q3 2025 Earnings Summary