Piper Sandler Companies Reports Third Quarter 2026 Results; Declares Quarterly Dividend of $0.20 Per Share; Announces New Share Repurchase Authorization
MINNEAPOLIS-October 30, 2026-Piper Sandler Companies (NYSE: PIPR), a leading investment bank, today announced its results for the third quarter of 2026.
"We delivered solid results for the third quarter, supported by 18% year-over-year growth in advisory services revenues and increased client activity in fixed income," said Chad Abraham, chairman and chief executive officer. "As we build on our record year-to-date revenues, we remain focused on supporting our clients across dynamic markets, finishing the year strong and continuing to return capital to our shareholders."
(Dollars in millions, except per share data)
Net revenues Pre-tax margin
Net income attributable to Piper Sandler Companies Earnings per diluted common share
Third Quarter 2026 Results
U.S. GAAP Adjusted (1)
Q3 2026 | vs. vs. Q2-26 Q3-25 |
$443 | -11% -8% |
15.0% | -5.3pp -7.4pp |
$55 | -18% -8% |
$0.78 | -18% -8% |
Q3 2026 | vs. vs. Q2-26 Q3-25 |
$456 | -7% -% |
19.8% | -2.0pp -1.4pp |
$62 | -17% -10% |
$0.87 | -16% -9% |
A non-U.S. GAAP ("non-GAAP") measure. Management believes that presenting results and measures on an adjusted basis alongside U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of
U.S. GAAP to Selected Summary Financial Information."
Financial & Business HighlightsNet revenues for the third quarter of 2026 were $443 million, and adjusted net revenues totaled $456 million.
Corporate investment banking generated record third quarter revenues of $307 million driven by strong results from our financial services, healthcare and energy, power & infrastructure groups.
Fixed income services activity was robust, generating revenues of $60 million, the best quarter since 2021.
For the first nine months of 2026, both net revenues and adjusted net revenues were a record, totaling $1.4 billion, an increase of 15% and 14%, respectively, over last year driven by 21% growth in corporate investment banking revenues.
Strategic UpdatesIn September 2026, we launched equities trading in Europe through Piper Sandler Europe, expanding our reach and bringing our leading U.S. equities franchise to European clients.
TalentEstablished a London-based debt advisory team within our energy, power & infrastructure investment banking group consisting of four professionals, including one managing director, focused on advising infrastructure companies.
Continued to strengthen our private capital advisory group with the addition of a managing director focused on secondary capital advisory.
CapitalDeclared a quarterly cash dividend of $0.20 per share of the company's common stock on October 30, 2026 to be paid on December 11, 2026 to shareholders of record as of November 24, 2026.
Authorized the repurchase of up to $200 million of the company's outstanding common stock, effective immediately, which will expire on December 31, 2028.
Returned an aggregate of $268 million to shareholders during the first nine months of 2026 through dividends paid and repurchases of 1.8 million shares of the company's common stock at an average price of $77.80 per share.
The following summarizes our results on a U.S. GAAP basis.
Three Months Ended | Nine Months Ended | |||||||
Sept. 30, June 30, Sept. 30, | Change vs. | Sept. 30, Sept. 30, | ||||||
(Dollars in thousands, except per share data) | 2026 | 2026 | 2025 | Q2-26 | Q3-25 | 2026 | 2025 | Change |
Revenues | ||||||||
Investment banking: | ||||||||
Advisory services | $ 250,258 | $ 274,211 | $ 211,544 | -9% | 18% | $ 775,431 | $ 633,185 | 22% |
Corporate financing | 56,629 | 37,805 | 79,301 | 50% | -29% | 167,749 | 146,608 | 14% |
Municipal financing | 24,793 | 49,511 | 38,501 | -50% | -36% | 98,217 | 106,811 | -8% |
Total investment banking | 331,680 | 361,527 | 329,346 | -8% | 1% | 1,041,397 | 886,604 | 17% |
Institutional brokerage: | ||||||||
Equity brokerage 54,498 | 62,907 | 53,750 | -13% | 1% | 177,875 | 166,087 | 7% | |
Fixed income services 59,778 | 48,625 | 56,982 | 23% | 5% | 158,778 | 161,034 | -1% | |
Total institutional brokerage | 114,276 | 111,532 | 110,732 | 2% | 3% | 336,653 | 327,121 | 3% |
Interest income | 11,241 | 9,104 | 9,374 | 23% | 20% | 31,991 | 27,284 | 17% |
Investment income/(loss) | (13,545) | 14,091 | 30,642 | N/M | N/M | 5,010 | (3,784) | N/M |
Total revenues | 443,652 | 496,254 | 480,094 | -11% | -8% | 1,415,051 | 1,237,225 | 14% |
Interest expense | 605 | 739 | 818 | -18% | -26% | 2,080 | 3,899 | -47% |
Net revenues | 443,047 | 495,515 | 479,276 | -11% | -8% | 1,412,971 | 1,233,326 | 15% |
Non-interest expenses | ||||||||
Compensation and benefits | 286,637 | 308,709 | 288,901 | -7% | -1% | 891,403 | 795,574 | 12% |
Non-compensation expenses | 89,777 | 86,371 | 82,948 | 4% | 8% | 266,569 | 251,968 | 6% |
Total non-interest expenses | 376,414 | 395,080 | 371,849 | -5% | 1% | 1,157,972 | 1,047,542 | 11% |
Income before income tax expense | 66,633 | 100,435 | 107,427 | -34% | -38% | 254,999 | 185,784 | 37% |
Income tax expense | 26,475 | 30,338 | 24,949 | -13% | 6% | 76,432 | 34,783 | 120% |
Net income | $ 40,158 | $ 70,097 | $ 82,478 | -43% | -51% | $ 178,567 | $ 151,001 | 18% |
Net income attributable to Piper Sandler Companies | $ 55,415 | $ 67,845 | $ 60,266 | -18% | -8% | $ 188,502 | $ 167,363 | 13% |
Earnings per diluted common share | $ 0.78 | $ 0.95 | $ 0.85 | -18% | -8% | $ 2.65 | $ 2.35 | 13% |
Ratios and margin | ||||||||
Compensation ratio | 64.7% | 62.3% | 60.3% | 63.1% | 64.5% | |||
Non-compensation ratio | 20.3% | 17.4% | 17.3% | 18.9% | 20.4% | |||
Pre-tax margin | 15.0% | 20.3% | 22.4% | 18.0% | 15.1% | |||
Effective tax rate | 39.7% | 30.2% | 23.2% | 30.0% | 18.7% | |||
N/M - Not meaningful | ||||||||
The following table summarizes additional business metrics for the periods presented.
Three Months Ended Nine Months Ended Sept. 30, June 30, Sept. 30, Change vs. Sept. 30, Sept. 30,
2026 | 2026 | 2025 | Q2-26 | Q3-25 | 2026 | 2025 | Change | ||||
Advisory services | |||||||||||
Completed M&A and restructuring transactions | 61 | 67 | 60 | -9% | 2% | 197 | 151 | 30% | |||
Completed capital advisory transactions (1) | 20 | 16 | 22 | 25% | -9% | 61 | 57 | 7% | |||
Total completed advisory transactions | 81 | 83 | 82 | -2% | -1% | 258 | 208 | 24% | |||
Corporate financings | |||||||||||
Total equity transactions priced | 16 | 21 | 23 | -24% | -30% | 63 | 54 | 17% | |||
Book run equity transactions priced | 14 | 17 | 21 | -18% | -33% | 57 | 44 | 30% | |||
Total debt and preferred transactions priced | 9 | 7 | 15 | 29% | -40% | 26 | 37 | -30% | |||
Book run debt and preferred transactions priced | - | 2 | 8 | -100% | -100% | 9 | 24 | -63% | |||
Municipal negotiated issues | |||||||||||
Aggregate par value of issues priced (in billions) | $ 3.6 | $ 5.1 | $ 5.7 | -29% | -37% | $ 11.9 | $ 14.7 | -19% | |||
Total issues priced | 104 | 145 | 133 | -28% | -22% | 347 | 404 | -14% | |||
Equity brokerage | |||||||||||
Number of shares traded (in billions) | 3.3 | 3.4 | 2.7 | -3% | 22% | 9.9 | 8.5 | 16% | |||
(1) Includes debt capital markets advisory transactions and equity and debt private placements.
NET REVENUESFor the third quarter of 2026, net revenues of $443.0 million decreased 11% compared to the second quarter of 2026 and 8% compared to the third quarter of 2025.
Investment banking revenues of $331.7 million for the third quarter of 2026 decreased 8% compared to the second quarter of 2026 and were essentially flat compared to the third quarter of 2025.
Advisory services revenues of $250.3 million for the third quarter of 2026 decreased 9% compared to the second quarter of 2026 driven by a lower average fee, but increased 18% compared to the third quarter of 2025 resulting from a higher average fee. Performance was led by our financial services group and our energy, power & infrastructure team, which generated a record quarter, and included a solid contribution from our healthcare franchise.
Corporate financing revenues of $56.6 million for the third quarter of 2026 increased 50% compared to the second quarter of 2026 as higher revenue per deal more than offset a decline in completed financings. Corporate financing revenues decreased 29% compared to the strong third quarter of 2025 driven primarily by fewer completed transactions. Our performance during the quarter was centered around capital raising activity for our healthcare and financial services clients.
Municipal financing revenues of $24.8 million for the third quarter of 2026 decreased 50% compared to the second quarter of 2026 and 36% compared to the third quarter of 2025 as higher interest rates negatively impacted issuance activity.
Institutional brokerage revenues of $114.3 million for the third quarter of 2026 increased 2% compared to the second quarter of 2026 and 3% compared to the third quarter of 2025.
Equity brokerage revenues of $54.5 million for the third quarter of 2026 decreased 13% compared to the strong second quarter of 2026 resulting from lower client activity, but revenues were flat compared to the third quarter of 2025.
Fixed income services revenues of $59.8 million for the third quarter of 2026 increased 23% compared to the second quarter of 2026 and 5% compared to the third quarter of 2025 as the elevated interest rate environment drove increased client activity.
Investment income/(loss) for the third quarter of 2026 was a loss of $13.5 million compared to income of $14.1 million for the second quarter of 2026 and income of $30.6 million for the third quarter of 2025. For the current and prior periods, investment income/(loss) includes amounts attributable to noncontrolling interests primarily related to the alternative asset funds we manage.
NON-INTEREST EXPENSESFor the third quarter of 2026, non-interest expenses of $376.4 million decreased 5% compared to the second quarter of 2026 and were essentially flat compared to the third quarter of 2025.
Compensation ratio of 64.7% for the third quarter of 2026 was higher compared to 62.3% for the second quarter of 2026 and 60.3% for the third quarter of 2025 resulting from lower net revenues, which was exacerbated by the investment loss attributable to noncontrolling interests.
Non-compensation expenses of $89.8 million for the third quarter of 2026 increased 4% compared to the second quarter of 2026 and 8% compared to the third quarter of 2025. Non-compensation expenses were higher during the current quarter primarily due to incremental occupancy and equipment costs in connection with our New York City office move and increased outside services expenses resulting from higher legal fees as well as increased professional fees associated with technology consulting services.
PRE-TAX INCOMEFor the third quarter of 2026, we recorded pre-tax income of $66.6 million compared to $100.4 million for the second quarter of 2026 and $107.4 million for the third quarter of 2025.
Pre-tax margin of 15.0% for the third quarter of 2026 declined compared to 20.3% for the second quarter of 2026 and 22.4% for the third quarter of 2025 driven primarily by losses on our investments, including amounts attributable to noncontrolling interests in the alternative asset funds we manage. In addition, pre-tax margin for the current quarter was impacted by higher non-compensation expenses.
EFFECTIVE TAX RATEFor the current and prior periods, the effective tax rate is impacted by the level of noncontrolling interests, the amount of non-deductible expenses, and the vesting of restricted stock awards. For the third quarter of 2026, the effective tax rate of 39.7% was elevated due to the net loss attributable to noncontrolling interests. The effective tax rate for the second quarter of 2026 was 30.2%. For the third quarter of 2025, the effective tax rate of 23.2% was impacted by the higher net income attributable to noncontrolling interests.
NET INCOME & EARNINGS PER SHAREFor the third quarter of 2026, we generated net income of $55.4 million, or $0.78 per diluted common share.
Results for the current quarter decreased compared to net income of $67.8 million, or $0.95 per diluted common share, for the second quarter of 2026 and net income of $60.3 million, or $0.85 per diluted common share, for the third quarter of 2025 resulting from lower net revenues, a decreased pre-tax margin and a higher effective tax rate.
Non-GAAP Selected Financial DataThe following summarizes our results on an adjusted, non-GAAP basis.
Three Months Ended
Nine Months Ended
Sept. 30, June 30, Sept. 30,
Change vs.
Sept. 30, Sept. 30,
(Dollars in thousands, except per share data)
2026
2026
2025
Q2-26
Q3-25
2026
2025
Change
Adjusted revenues
Investment banking:
Advisory services
$ 250,258
$ 274,211
$ 211,544
-9%
18%
$ 775,431
$ 633,185
22%
Corporate financing
56,629
37,805
79,301
50%
-29%
167,749
146,608
14%
Municipal financing
24,793
49,511
38,501
-50%
-36%
98,217
106,811
-8%
Total investment banking
331,680
361,527
329,346
-8%
1%
1,041,397
886,604
17%
Institutional brokerage:
Equity brokerage 54,498
62,907
53,750
-13%
1%
177,875
166,087
7%
Fixed income services 59,778
48,625
56,982
23%
5%
158,778
161,034
-1%
Total institutional brokerage
114,276
111,532
110,732
2%
3%
336,653
327,121
3%
Interest income
11,241
9,104
9,374
23%
20%
31,991
27,284
17%
Investment income/(loss)
(556)
9,712
6,680
N/M
N/M
8,755
6,902
27%
Adjusted total revenues
456,641
491,875
456,132
-7%
-%
1,418,796
1,247,911
14%
Interest expense
605
739
818
-18%
-26%
2,080
3,899
-47%
Adjusted net revenues
456,036
491,136
455,314
-7%
-%
1,416,716
1,244,012
14%
Adjusted operating expenses
Adjusted compensation and benefits
280,462
302,048
280,973
-7%
-%
871,749
771,882
13%
Adjusted non-compensation expenses
85,265
81,998
78,007
4%
9%
253,707
233,880
8%
Adjusted total operating expenses
365,727
384,046
358,980
-5%
2%
1,125,456
1,005,762
12%
Adjusted operating income
90,309
107,090
96,334
-16%
-6%
291,260
238,250
22%
Adjusted income tax expense
28,628
32,621
27,777
-12%
3%
83,176
43,457
91%
Adjusted net income
$ 61,681
$ 74,469
$ 68,557
-17%
-10%
$ 208,084
$ 194,793
7%
Adjusted earnings per diluted common share
$
0.87
$
1.04
$
0.96
-16%
-9%
$
2.91
$
2.72
7%
Adjusted ratios and margin
Adjusted compensation ratio
61.5%
61.5%
61.7%
61.5%
62.0%
Adjusted non-compensation ratio
18.7%
16.7%
17.1%
17.9%
18.8%
Adjusted operating margin
19.8%
21.8%
21.2%
20.6%
19.2%
Adjusted effective tax rate
31.7%
30.5%
28.8%
28.6%
18.2%
N/M - Not meaningful
Throughout this press release, including the table above, we present financial measures that are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Management believes that presenting results and measures on an adjusted basis alongside U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods and enhances the overall understanding of our current financial performance by excluding certain items that may not be indicative of our core operating results. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information."
See page 3 for a summary of additional business metrics.
ADJUSTED NET REVENUESFor the third quarter of 2026, adjusted net revenues of $456.0 million decreased 7% compared to the second quarter of 2026 driven by lower municipal financing, advisory services and equity brokerage revenues which were offset in part by increased corporate financing and fixed income services revenues. Adjusted net revenues were modestly higher compared to the third quarter of 2025, as increased advisory services revenues were offset by lower corporate and municipal financing activity.
ADJUSTED OPERATING EXPENSESFor the third quarter of 2026, adjusted operating expenses of $365.7 million decreased 5% compared to the second quarter of 2026 and increased 2% compared to the third quarter of 2025.
Adjusted compensation ratio of 61.5% for the third quarter of 2026 was flat compared to the second quarter of 2026 and declined compared to 61.7% for the third quarter of 2025.
Adjusted non-compensation expenses of $85.3 million for the third quarter of 2026 increased 4% compared to the second quarter of 2026 and 9% compared to the third quarter of 2025. Adjusted non-compensation expenses were higher during the current quarter primarily due to incremental occupancy and equipment costs in connection with our New York City office move and increased outside services expenses resulting from higher legal fees as well as increased professional fees associated with technology consulting services.
ADJUSTED OPERATING INCOMEFor the third quarter of 2026, adjusted operating income of $90.3 million decreased 16% compared to the second quarter of 2026 and 6% compared to the third quarter of 2025.
Adjusted operating margin of 19.8% for the third quarter of 2026 decreased compared to 21.8% for the second quarter of 2026 resulting primarily from lower adjusted net revenues. Adjusted operating margin decreased compared to 21.2% for the third quarter of 2025 primarily due to increased adjusted non-compensation expenses.
For the third quarter of 2026, our adjusted effective tax rate was 31.7%, compared to 30.5% for the second quarter of 2026 and 28.8% for the third quarter of 2025.
ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHAREFor the third quarter of 2026, we generated adjusted net income of $61.7 million, or $0.87 of adjusted earnings per diluted common share.
Results for the current quarter decreased compared to adjusted net income of $74.5 million, or $1.04 of adjusted earnings per diluted common share, for the second quarter of 2026 resulting primarily from lower adjusted net revenues, higher adjusted non-compensation expenses and a higher adjusted effective tax rate. Results for the current quarter decreased compared to adjusted net income of $68.6 million, or $0.96 of adjusted earnings per diluted common share, for the third quarter of 2025 resulting primarily from higher adjusted non-compensation expenses and a higher adjusted effective tax rate.
Capital DIVIDENDSOn October 30, 2026, our Board of Directors declared a quarterly cash dividend on the company's common stock of $0.20 per share. This dividend will be paid on December 11, 2026, to shareholders of record as of the close of business on
November 24, 2026.
During the third quarter of 2026, we paid a quarterly cash dividend of $0.20 per share of common stock, for an aggregate of
$13.6 million.
During the first nine months of 2026, we paid quarterly cash dividends of $0.575 per share of common stock and a special cash dividend of $1.25 per share of common stock, which was paid in the first quarter of 2026. Total dividends paid year-to-date, including accrued forfeitable dividends paid on restricted stock awards that vested, were $128.2 million.
SHARE REPURCHASESOn October 30, 2026, our Board of Directors authorized the repurchase of up to $200 million of the company's outstanding common stock. This authorization is effective immediately and will expire on December 31, 2028. The share repurchase program will be used as part of our capital allocation strategy, which includes returning capital to our shareholders, and to offset the dilutive effect of employee equity-based compensation. Our existing share repurchase authorization has
$20.3 million remaining and will expire on December 31, 2026.
During the third quarter of 2026, we repurchased 0.5 million shares of the company's common stock, at an average price of
$74.53 per share, pursuant to our existing share repurchase authorization. We also repurchased 23 thousand shares of the company's common stock, at an average price of $75.91 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. The aggregate amount of 0.5 million shares, or $39.4 million of the company's common stock, were repurchased at an average price of $74.59 per share.
During the first nine months of 2026, we repurchased 1.3 million shares of the company's common stock, at an average price of $76.94 per share, pursuant to our existing share repurchase authorization. We also repurchased 0.5 million shares of the company's common stock, at an average price of $80.10 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. The aggregate amount of 1.8 million shares, or $140.3 million of the company's common stock, were repurchased at an average price of $77.80 per share.
Additional Information | |||
Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 | |
Human Capital | |||
Full-time employees | 1,895 | 1,915 | 1,836 |
Corporate investment banking managing directors | 191 | 193 | 183 |
Shareholder Information (amounts in millions) | |||
Common shareholders' equity | $ 1,382.6 | $ 1,372.7 | $ 1,282.8 |
Shares outstanding: | |||
Common shares outstanding | 67.1 | 67.5 | 66.9 |
Restricted shares outstanding | 3.5 | 3.5 | 4.2 |
Total shares outstanding | 70.6 | 71.0 | 71.1 |
Chad Abraham, chairman and chief executive officer; Deb Schoneman, president; and Kate Clune, chief financial officer, will host a conference call to discuss the financial results on Friday, October 30, 2026, at 9:00 a.m. Eastern Time (8:00 a.m.
Central Time). Participants can access the call by dialing 800 330-6710 (in the U.S.) or +1 312 471-1353 (outside the U.S.) and passcode number 7198633. Callers should dial in at least 15 minutes prior to the call time. The conference call will also be accessible as an audio webcast through the company's website at pipersandler.com/earnings. A replay of the conference call will be available beginning approximately three hours after the event through the same link.
About Piper SandlerPiper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; in the EU through Piper Sandler Europe SAS, an investment firm authorized by the Autorité de contrôle prudentiel et de résolution and regulated by the Autorité des marchés financiers, and Aviditi Capital Advisors Europe GmbH, a tied agent of AHP Capital Management GmbH, authorized and regulated by BaFin; and in the Abu Dhabi Global Market through Piper Sandler MENA Ltd., authorized and regulated by the ADGM Financial Services Regulatory Authority. Alternative asset management and fixed income advisory services are offered through separately registered advisory affiliates.
© 2026. Since 1895. Piper Sandler Companies. 350 North 5th Street, Suite 1000, Minneapolis, Minnesota 55401.
For more information, please contact Kate Clune, chief financial officer, at 212 466-7799 or [email protected].
Cautionary Note Regarding Forward-Looking StatementsThis press release and the conference call to discuss the contents of this press release contain forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are subject to significant risks and uncertainties that are difficult to predict. These forward-looking statements cover, among other things, statements made about the outlook for future periods, e.g., the outlook for corporate advisory (e.g., M&A, debt capital markets advisory, private capital advisory), corporate financing, public finance, equity brokerage, and fixed income brokerage; current deal pipelines (or backlogs); growth plans for our businesses, including corporate investment banking and fixed income; the financial performance of recently completed transactions; our recruiting pipeline; anticipated financial results for future periods (including expectations regarding revenue levels, non-compensation expenses, non-compensation ratio, effective tax rate, compensation ratio, compensation and benefits expense, operating margins, and earnings per share); our strategic priorities; the payment of our quarterly and special cash dividends; our share repurchase programs; and economic, geopolitical, and market conditions generally.
Forward-looking statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, the following:
the volume of anticipated transactions - including corporate advisory (i.e., M&A), equity financing, and debt financing - and the corresponding revenues from the transactions may vary from quarter to quarter significantly, particularly if there is a decline in macroeconomic conditions or the financial markets;
revenues from corporate advisory (i.e., M&A) engagements and equity and debt financings may vary materially depending on the number, size, and timing of completed transactions, and completed transactions do not generally provide for subsequent engagements;
market, geopolitical and economic conditions or developments may be unfavorable, including in specific sectors in which we operate, and these conditions or developments, such as market fluctuations or volatility, may adversely affect our business, revenue levels and profitability;
the impact of trade policy, including tariffs, on market, geopolitical and economic conditions is difficult to predict, and may result in a decline in macroeconomic conditions or the financial markets that negatively impacts our business;
continued business and investor uncertainty around future trade policy or geopolitical conditions may adversely affect our business, revenue levels, and profitability;
interest rate volatility, especially if the changes are rapid or severe, could negatively impact our fixed income institutional business and the negative impact could be exaggerated by reduced liquidity in the fixed income markets;
our ability to effect the repurchase program depends in part upon our results of operations and profitability and may be impacted by negative operating conditions, and an inability to access capital readily or on terms favorable to us could impair our ability to effect the repurchase program; and
our stock price may fluctuate as a result of several factors, including but not limited to, changes in our revenues and operating results.
A further listing and description of these and other risks, uncertainties and important factors can be found in the sections titled "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025, and updated in our subsequent reports filed with the SEC (available at our Website at https://www.pipersandler.com and at the SEC Website at https://www.sec.gov).
Forward-looking statements speak only as of the date they are made, and readers are cautioned not to place undue reliance on them. We undertake no obligation to update them in light of new information or future events.
###
(Amounts in thousands, except per share data) | Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 | Sept. 30, 2026 | Sept. 30, 2025 |
Revenues | |||||
Investment banking | $ 331,680 | $ 361,527 | $ 329,346 | $ 1,041,397 | $ 886,604 |
Institutional brokerage | 114,276 | 111,532 | 110,732 | 336,653 | 327,121 |
Interest income | 11,241 | 9,104 | 9,374 | 31,991 | 27,284 |
Investment income/(loss) | (13,545) | 14,091 | 30,642 | 5,010 | (3,784) |
Total revenues | 443,652 | 496,254 | 480,094 | 1,415,051 | 1,237,225 |
Interest expense | 605 | 739 | 818 | 2,080 | 3,899 |
Net revenues | 443,047 | 495,515 | 479,276 | 1,412,971 | 1,233,326 |
Non-interest expenses | |||||
Compensation and benefits | 286,637 | 308,709 | 288,901 | 891,403 | 795,574 |
Occupancy and equipment | 22,426 | 19,612 | 19,448 | 60,103 | 55,117 |
Outside services | 17,445 | 16,776 | 14,626 | 47,938 | 51,017 |
Communications | 15,564 | 15,885 | 14,852 | 46,359 | 45,237 |
Marketing and business development | 14,855 | 15,883 | 12,385 | 45,889 | 41,127 |
Trade execution and clearance | 6,179 | 5,414 | 4,775 | 16,630 | 14,650 |
Restructuring and integration costs | - | - | 1,044 | - | 6,042 |
Intangible asset amortization | 2,057 | 2,058 | 2,147 | 6,172 | 6,370 |
Other operating expenses | 11,251 | 10,743 | 13,671 | 43,478 | 32,408 |
Total non-interest expenses | 376,414 | 395,080 | 371,849 | 1,157,972 | 1,047,542 |
Income before income tax expense | 66,633 | 100,435 | 107,427 | 254,999 | 185,784 |
Income tax expense | 26,475 | 30,338 | 24,949 | 76,432 | 34,783 |
Net income | 40,158 | 70,097 | 82,478 | 178,567 | 151,001 |
Net income/(loss) attributable to noncontrolling interests | (15,257) | 2,252 | 22,212 | (9,935) | (16,362) |
Net income attributable to Piper Sandler Companies | $ 55,415 | $ 67,845 | $ 60,266 | $ 188,502 | $ 167,363 |
Earnings per common share | |||||
Basic | $ 0.82 | $ 1.00 | $ 0.90 | $ 2.79 | $ 2.52 |
Diluted | $ 0.78 | $ 0.95 | $ 0.85 | $ 2.65 | $ 2.35 |
Dividends declared per common share | $ 0.20 | $ 0.20 | $ 0.18 | $ 1.83 | $ 1.25 |
Weighted average common shares outstanding | |||||
Basic | 67,257 | 67,698 | 66,862 | 67,596 | 66,401 |
Diluted | 70,667 | 71,241 | 71,232 | 71,045 | 71,100 |
(Amounts in thousands, except per share data) | Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 | Sept. 30, 2026 | Sept. 30, 2025 |
Adjusted revenues | |||||
Investment banking | $ 331,680 | $ 361,527 | $ 329,346 | $ 1,041,397 | $ 886,604 |
Institutional brokerage | 114,276 | 111,532 | 110,732 | 336,653 | 327,121 |
Interest income | 11,241 | 9,104 | 9,374 | 31,991 | 27,284 |
Investment income/(loss) | (556) | 9,712 | 6,680 | 8,755 | 6,902 |
Adjusted total revenues | 456,641 | 491,875 | 456,132 | 1,418,796 | 1,247,911 |
Interest expense | 605 | 739 | 818 | 2,080 | 3,899 |
Adjusted net revenues (2) | 456,036 | 491,136 | 455,314 | 1,416,716 | 1,244,012 |
Adjusted operating expenses | |||||
Adjusted compensation and benefits (3) | 280,462 | 302,048 | 280,973 | 871,749 | 771,882 |
Adjusted non-compensation expenses (4) | 85,265 | 81,998 | 78,007 | 253,707 | 233,880 |
Adjusted total operating expenses (5) | 365,727 | 384,046 | 358,980 | 1,125,456 | 1,005,762 |
Adjusted operating income (6) | 90,309 | 107,090 | 96,334 | 291,260 | 238,250 |
Adjusted income tax expense (7) | 28,628 | 32,621 | 27,777 | 83,176 | 43,457 |
Adjusted net income (8) | $ 61,681 | $ 74,469 | $ 68,557 | $ 208,084 | $ 194,793 |
Adjusted earnings per diluted common share (9) | $ 0.87 | $ 1.04 | $ 0.96 | $ 2.91 | $ 2.72 |
Adjusted weighted average diluted common shares outstanding (10) | 70,991 | 71,594 | 71,723 | 71,405 | 71,727 |
Adjusted ratios and margin | |||||
Adjusted compensation ratio (11) | 61.5% | 61.5% | 61.7% | 61.5% | 62.0% |
Adjusted non-compensation ratio (12) | 18.7% | 16.7% | 17.1% | 17.9% | 18.8% |
Adjusted operating margin (13) | 19.8% | 21.8% | 21.2% | 20.6% | 19.2% |
Adjusted effective tax rate (14) | 31.7% | 30.5% | 28.8% | 28.6% | 18.2% |
This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information."
Sept. 30, (Amounts in thousands, except per share data) 2026 | June 30, 2026 | Sept. 30, 2025 | Sept. 30, 2026 | Sept. 30, 2025 |
Net revenues: | ||||
Net revenues - U.S. GAAP basis $ 443,047 | $ 495,515 | $ 479,276 | $ 1,412,971 | $ 1,233,326 |
Adjustment: | ||||
Investment (income)/loss related to noncontrolling interests (15) 12,989 (4,379) (23,962) 3,745 10,686
Adjusted net revenues $ 456,036 $ 491,136 $ 455,314 $ 1,416,716 $ 1,244,012
Compensation and benefits: | |||||
Compensation and benefits - U.S. GAAP basis | $ 286,637 | $ 308,709 | $ 288,901 | $ 891,403 | $ 795,574 |
Adjustment: | |||||
Compensation from acquisition-related agreements | (6,175) | (6,661) | (7,928) | (19,654) | (23,692) |
Adjusted compensation and benefits | $ 280,462 | $ 302,048 | $ 280,973 | $ 871,749 | $ 771,882 |
Non-compensation expenses: | |||||
Non-compensation expenses - U.S. GAAP basis | $ 89,777 | $ 86,371 | $ 82,948 | $ 266,569 | $ 251,968 |
Adjustments: | |||||
Non-compensation expenses related to noncontrolling interests (15) | (2,268) | (2,127) | (1,750) | (6,190) | (5,676) |
Restructuring and integration costs | - | - | (1,044) | - | (6,042) |
Amortization of intangible assets related to acquisitions | (2,057) | (2,058) | (2,147) | (6,172) | (6,370) |
Non-compensation expenses from acquisition-related agreements | (187) | (188) | - | (500) | - |
Adjusted non-compensation expenses | $ 85,265 | $ 81,998 | $ 78,007 | $ 253,707 | $ 233,880 |
Income before income tax expense: | |||||
Income before income tax expense - U.S. GAAP basis | $ 66,633 | $ 100,435 | $ 107,427 | $ 254,999 | $ 185,784 |
Adjustments: | |||||
Investment (income)/loss related to noncontrolling interests (15) | 12,989 | (4,379) | (23,962) | 3,745 | 10,686 |
Non-compensation expenses related to noncontrolling interests (15) | 2,268 | 2,127 | 1,750 | 6,190 | 5,676 |
Compensation from acquisition-related agreements | 6,175 | 6,661 | 7,928 | 19,654 | 23,692 |
Restructuring and integration costs | - | - | 1,044 | - | 6,042 |
Amortization of intangible assets related to acquisitions | 2,057 | 2,058 | 2,147 | 6,172 | 6,370 |
Non-compensation expenses from acquisition-related agreements | 187 | 188 | - | 500 | - |
Adjusted operating income | $ 90,309 | $ 107,090 | $ 96,334 | $ 291,260 | $ 238,250 |
Income tax expense: | |||||
Income tax expense - U.S. GAAP basis | $ 26,475 | $ 30,338 | $ 24,949 | $ 76,432 | $ 34,783 |
Tax effect of adjustments: | |||||
Compensation from acquisition-related agreements | 1,558 | 1,688 | 2,000 | 4,976 | 5,552 |
Restructuring and integration costs | - | - | 266 | - | 1,454 |
Amortization of intangible assets related to acquisitions | 545 | 545 | 562 | 1,635 | 1,668 |
Non-compensation expenses from acquisition-related agreements | 50 | 50 | - | 133 | - |
Adjusted income tax expense | $ 28,628 | $ 32,621 | $ 27,777 | $ 83,176 | $ 43,457 |
Continued on next page
(Amounts in thousands, except per share data) | Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 | Sept. 30, 2026 | Sept. 30, 2025 |
Net income attributable to Piper Sandler Companies: | |||||
Net income attributable to Piper Sandler Companies - U.S. GAAP basis | $ 55,415 $ 67,845 $ 60,266 $ 188,502 $ 167,363 | ||||
Adjustments: | |||||
Compensation from acquisition-related agreements | 4,617 4,973 5,928 14,678 18,140 | ||||
Restructuring and integration costs | - - 778 - 4,588 | ||||
Amortization of intangible assets related to acquisitions | 1,512 1,513 1,585 4,537 4,702 | ||||
Non-compensation expenses from acquisition-related agreements | 137 138 - 367 - | ||||
Adjusted net income | $ 61,681 $ 74,469 $ 68,557 $ 208,084 $ 194,793 | ||||
Earnings per diluted common share: | |||||
Earnings per diluted common share - U.S. GAAP basis | $ 0.78 | $ 0.95 | $ 0.85 | $ 2.65 | $ 2.35 |
Adjustment for inclusion of unvested acquisition-related stock | - | - | (0.01) | (0.01) | (0.03) |
$ 0.78 | $ 0.95 | $ 0.84 | $ 2.64 | $ 2.32 | |
Adjustments: | |||||
Compensation from acquisition-related agreements | 0.07 | 0.07 | 0.09 | 0.21 | 0.27 |
Restructuring and integration costs | - | - | 0.01 | - | 0.07 |
Amortization of intangible assets related to acquisitions | 0.02 | 0.02 | 0.02 | 0.06 | 0.06 |
Non-compensation expenses from acquisition-related agreements | - | - | - | - | - |
Adjusted earnings per diluted common share | $ 0.87 | $ 1.04 | $ 0.96 | $ 2.91 | $ 2.72 |
Weighted average diluted common shares outstanding:
Weighted average diluted common shares outstanding - U.S. GAAP basis
70,667
71,241
71,232
71,045
71,100
Adjustment:
Unvested acquisition-related restricted stock with service conditions | 324 | 353 | 491 | 360 | 627 |
Adjusted weighted average diluted common shares outstanding | 70,991 | 71,594 | 71,723 | 71,405 | 71,727 |
This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.
Notes to Non-GAAP Financial SchedulesSelected Summary Financial Information are non-GAAP measures. Management believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods.
A non-GAAP measure which excludes investment (income)/loss related to noncontrolling interests (see (15) below).
A non-GAAP measure which excludes compensation expenses from acquisition-related agreements.
A non-GAAP measure which excludes (a) non-compensation expenses related to noncontrolling interests (see (15) below), (b) restructuring and integration costs related to acquisitions and/or headcount reductions, (c) amortization of intangible assets related to acquisitions and (d) non-compensation expenses from acquisition-related agreements.
A non-GAAP measure which is computed as the summation of adjusted compensation and benefits and adjusted non-compensation expenses (see (3) and (4) above).
A non-GAAP measure which excludes (a) investment (income)/loss and non-compensation expenses related to noncontrolling interests (see (15) below), (b) compensation and non-compensation expenses from acquisition-related agreements, (c) restructuring and integration costs related to acquisitions and/or headcount reductions and (d) amortization of intangible assets related to acquisitions.
A non-GAAP measure which includes the income tax effect of the adjustments for (a) compensation and non-compensation expenses from acquisition-related agreements, (b) restructuring and integration costs related to acquisitions and/or headcount reductions and (c) amortization of intangible assets related to acquisitions.
A non-GAAP measure which represents net income attributable to Piper Sandler Companies adjusted for (a) the exclusion of compensation and non-compensation expenses from acquisition-related agreements, (b) the exclusion of restructuring and integration costs related to acquisitions and/or headcount reductions, (c) the exclusion of amortization of intangible assets related to acquisitions and (d) the income tax impact allocated to the adjustments.
A non-GAAP measure which is computed based on a quotient of which the numerator is adjusted net income and the denominator is adjusted weighted average diluted common shares outstanding.
A non-GAAP measure which assumes the vesting of acquisition-related restricted stock with service conditions.
A non-GAAP measure which represents adjusted compensation and benefits expenses as a percentage of adjusted net revenues.
A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenues.
A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenues.
A non-GAAP measure which represents adjusted income tax expense as a percentage of adjusted operating income.
Noncontrolling interests include investment income/(loss) and non-compensation expenses from consolidated alternative asset management entities that are not attributable, either directly or indirectly, to Piper Sandler Companies.