Oppenheimer Holdings Inc. Reports Second Quarter 2025 Earnings
NEW YORK, Aug. 1, 2025 /PRNewswire/ - Oppenheimer Holdings Inc. (NYSE:OPY) (the "Company" or "Firm") today reported net income of $21.7 million or $2.06 basic earnings per share for the second quarter of 2025, compared with net income of $10.3 million or $0.99 basic earnings per share for the second quarter of 2024. Revenue for the second quarter of 2025 was $373.2 million, an increase of 12.9%, compared to revenue of $330.6 million for the second quarter of 2024.
Robert S. Lowenthal, President and CEO commented, "The Firm's improved operating results for the quarter showcase the strength of our businesses and the maturing of investments in experienced team members over the past several years. At the outset of the quarter, recession fears mounted as announced policies on trade drove significant market volatility and triggered a large selloff in the equity markets. As tariffs were suspended, the markets broadly rallied with both the NASDAQ and S&P 500 reaching new record highs to close out the quarter. Concerns remained over tariff-induced inflation, a potentially softening labor market and conflict in the Middle East.
Rising markets proved quite favorable to our Wealth Management business revenue, with the rally driving assets under management ("AUM") to a fresh record, resulting in higher asset-based advisory fees when compared with the prior year period. Retail trading volumes, driven by investor interest, also remained robust, boosting commission revenue. However, the fees we earn on our FDIC sweep program are reduced from the prior year period due to lower deposit balances as clients sought higher returns in money market funds and other investments.
The Capital Markets businesses showed a substantial increase in total revenue. Institutional trading volumes were strong during the quarter due in part to increased volatility, which buoyed our sales and trading revenue. Investment Banking revenue also improved on the back of more advisory assignments that closed in the quarter and robust underwriting levels as capital markets re-opened. We are hopeful that higher deal volumes will continue in the latter half of the year as policymakers firm up key trade policy decisions and concerns around recession recede.
The Firm continues to maintain an unlevered balance sheet and ended the quarter with its capital reaching yet another all-time high. As we move into the second half of the year, we remain optimistic about our capabilities and our ability to continue delivering high quality services to our clients."
Summary Operating Results (Unaudited)
('000s, except per share amounts or otherwise indicated)
Firm
2Q-25
2Q-24
Revenue
$ 373,178
$ 330,589
Compensation Expenses
$ 239,074
$ 220,727
Non-compensation Expenses
$ 101,894
$ 93,997
Pre-Tax Income
$ 32,210
$ 15,865
Income Tax Provision
$ 10,536
$ 5,599
Net Income (1)
$ 21,674
$ 10,266
Earnings Per Share (Basic) (1)
$ 2.06
$ 0.99
Earnings Per Share (Diluted) (1)
$ 1.91
$ 0.92
Book Value Per Share
$ 85.27
$ 78.63
Tangible Book Value Per Share (2)
$ 68.25
$ 61.56
Wealth Management
Revenue
$ 246,421
$ 234,526
Pre-Tax Income
$ 62,834
$ 64,231
Assets Under Administration (billions)
$ 138.4
$ 126.0
Assets Under Management (billions)
$ 52.8
$ 47.5
Capital Markets
Revenue
$ 122,981
$ 92,141
Pre-Tax Loss
$ (3,864)
$ (21,775)
(1) Attributable to Oppenheimer Holdings Inc.
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding.
Highlights
Increased revenue for the second quarter of 2025 was primarily driven by significantly higher investment banking revenue due to an uptick in underwriting volumes and larger advisory mandates, an increase in transaction-based commissions and greater advisory fees attributable to a rise in billable AUM
Rising markets lifted assets under administration and under management to fresh records at June 30, 2025
Compensation expenses increased from the prior year quarter largely as the result of higher production and salary-related expenses
Non-compensation expenses increased from the prior year quarter primarily due to higher technology related expenses and greater travel and other miscellaneous 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 $246.4 million, 5.1% higher compared with the prior year period. Pre-tax income was $62.8 million in the current quarter, a decrease of 2.2% compared with a year ago. Financial advisor headcount at the end of the current quarter was 927, compared to 934 at the end of the second quarter of 2024.
('000s, except otherwise indicated)
2Q-25
2Q-24
Revenue
$ 246,421
$ 234,526
Commissions
$ 54,788
$ 52,872
Advisory Fees
$ 125,610
$ 117,187
Bank Deposit Sweep Income
$ 28,654
$ 34,847
Interest
$ 21,943
$ 21,626
Other
$ 15,426
$ 7,994
Total Expenses
$ 183,587
$ 170,295
Compensation
$ 132,291
$ 123,538
Non-compensation
$ 51,296
$ 46,757
Pre-Tax Income
$ 62,834
$ 64,231
Compensation Ratio
53.7 %
52.7 %
Non-compensation Ratio
20.8 %
19.9 %
Pre-Tax Margin
25.5 %
27.4 %
Assets Under Administration (billions)
$ 138.4
$ 126.0
Assets Under Management (billions)
$ 52.8
$ 47.5
Cash Sweep Balances (billions)
$ 2.8
$ 2.9
Revenue:
Retail commissions increased 3.6% from the prior year period primarily due to higher retail trading activity
Advisory fees increased 7.2% due to higher AUM during the billing period
Bank deposit sweep income decreased $6.2 million from a year ago due to lower cash sweep balances and lower short-term interest rates
Interest revenue was flat compared to the prior year period
Other revenue increased from a year ago primarily due to 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
Assets under Management (AUM):
AUM reached a record high of $52.8 billion at June 30, 2025, which is the basis for advisory fee billings for July 2025
The increase in AUM from the prior year period was comprised of higher asset values of $8.9 billion on existing client holdings, offset by net distributions of $3.6 billion
Total Expenses:
Compensation expenses increased 7.1% from the prior year period primarily due to higher production related expenses and higher deferred compensation costs, partially offset by lower expenses associated with share appreciation rights
Non-compensation expenses increased 9.7% from a year ago primarily due to an increase in interest and other miscellaneous expenses
Capital Markets
Capital Markets reported revenue for the current quarter of $123.0 million, 33.5% higher when compared with the prior year period. Pre-tax loss was $3.9 million compared with a pre-tax loss of $21.8 million a year ago.
('000s)
2Q-25
2Q-24
