Oppenheimer Holdings Inc. Reports First Quarter 2025 Earnings
Oppenheimer Holdings (NYSE: OPY) reported strong Q1 2025 financial results with net income of $30.7 million ($2.93 basic EPS), up from $26.1 million ($2.50 EPS) in Q1 2024. Revenue increased 4.2% to $367.8 million.
The Wealth Management segment saw revenue rise 1.7% to $242.0 million, though pre-tax income declined 10.5%. Advisory fees grew 12.2% due to higher Assets Under Management (AUM) of $48.9 billion. Capital Markets revenue increased 10.0% to $123.3 million, reducing its pre-tax loss to $5.1 million from $6.7 million.
The company faces challenges from uncertain macroeconomic conditions, with concerns about recession risks, reduced consumer confidence, and market volatility affecting capital market activity. The Board declared a quarterly dividend of $0.18 per share, payable May 23, 2025.
Oppenheimer Holdings (NYSE: OPY) ha riportato solidi risultati finanziari nel primo trimestre 2025 con un utile netto di 30,7 milioni di dollari (utile base per azione di 2,93$), in aumento rispetto ai 26,1 milioni di dollari (2,50$ per azione) del primo trimestre 2024. I ricavi sono cresciuti del 4,2%, raggiungendo 367,8 milioni di dollari.
Il segmento Wealth Management ha registrato un aumento dei ricavi dell'1,7%, arrivando a 242,0 milioni di dollari, anche se l'utile ante imposte è diminuito del 10,5%. Le commissioni di consulenza sono cresciute del 12,2% grazie a un aumento degli Asset Under Management (AUM) a 48,9 miliardi di dollari. I ricavi del Capital Markets sono aumentati del 10,0%, raggiungendo 123,3 milioni di dollari, riducendo la perdita ante imposte a 5,1 milioni di dollari dai 6,7 milioni precedenti.
L'azienda deve affrontare sfide derivanti da condizioni macroeconomiche incerte, con preoccupazioni legate ai rischi di recessione, alla riduzione della fiducia dei consumatori e alla volatilità del mercato che influenzano l'attività nei mercati dei capitali. Il Consiglio di Amministrazione ha dichiarato un dividendo trimestrale di 0,18$ per azione, con pagamento previsto per il 23 maggio 2025.
Oppenheimer Holdings (NYSE: OPY) reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 30,7 millones de dólares (EPS básico de 2,93$), frente a los 26,1 millones de dólares (EPS de 2,50$) del primer trimestre de 2024. Los ingresos aumentaron un 4,2%, alcanzando los 367,8 millones de dólares.
El segmento de Gestión de Patrimonios vio un aumento de ingresos del 1,7%, llegando a 242,0 millones de dólares, aunque las ganancias antes de impuestos disminuyeron un 10,5%. Las comisiones por asesoramiento crecieron un 12,2% debido a un mayor volumen de Activos Bajo Gestión (AUM) de 48,9 mil millones de dólares. Los ingresos de Mercados de Capitales aumentaron un 10,0% a 123,3 millones de dólares, reduciendo su pérdida antes de impuestos a 5,1 millones de dólares desde 6,7 millones.
La empresa enfrenta desafíos debido a condiciones macroeconómicas inciertas, con preocupaciones sobre riesgos de recesión, menor confianza del consumidor y volatilidad del mercado que afectan la actividad en mercados de capitales. La Junta declaró un dividendo trimestral de 0,18$ por acción, pagadero el 23 de mayo de 2025.
오펜하이머 홀딩스 (NYSE: OPY)는 2025년 1분기 강력한 재무 실적을 발표했으며, 순이익 3,070만 달러 (기본 주당순이익 2.93달러)를 기록해 2024년 1분기 2,610만 달러(주당순이익 2.50달러) 대비 증가했습니다. 매출은 4.2% 증가하여 3억 6,780만 달러에 달했습니다.
자산관리 부문은 매출이 1.7% 증가해 2억 4,200만 달러를 기록했으나 세전 이익은 10.5% 감소했습니다. 자문 수수료는 운용자산(AUM)이 489억 달러로 증가하며 12.2% 성장했습니다. 자본시장 부문 매출은 10.0% 증가해 1억 2,330만 달러에 이르렀고, 세전 손실은 670만 달러에서 510만 달러로 감소했습니다.
회사는 경기 침체 위험, 소비자 신뢰 감소, 시장 변동성 등 불확실한 거시경제 환경으로 인한 도전에 직면해 있으며, 이로 인해 자본시장 활동에 영향을 받고 있습니다. 이사회는 주당 0.18달러의 분기 배당금을 선언했으며, 지급일은 2025년 5월 23일입니다.
Oppenheimer Holdings (NYSE : OPY) a publié de solides résultats financiers pour le premier trimestre 2025 avec un revenu net de 30,7 millions de dollars (BPA de base de 2,93 $), en hausse par rapport à 26,1 millions de dollars (BPA de 2,50 $) au premier trimestre 2024. Le chiffre d'affaires a augmenté de 4,2 % pour atteindre 367,8 millions de dollars.
Le segment de la gestion de patrimoine a vu ses revenus augmenter de 1,7 % pour atteindre 242,0 millions de dollars, bien que le résultat avant impôts ait diminué de 10,5 %. Les frais de conseil ont progressé de 12,2 % grâce à une augmentation des actifs sous gestion (AUM) à 48,9 milliards de dollars. Les revenus des marchés de capitaux ont augmenté de 10,0 % pour atteindre 123,3 millions de dollars, réduisant la perte avant impôts à 5,1 millions de dollars contre 6,7 millions auparavant.
L'entreprise fait face à des défis liés à des conditions macroéconomiques incertaines, avec des inquiétudes concernant les risques de récession, la baisse de la confiance des consommateurs et la volatilité des marchés affectant l'activité des marchés de capitaux. Le conseil d'administration a déclaré un dividende trimestriel de 0,18 $ par action, payable le 23 mai 2025.
Oppenheimer Holdings (NYSE: OPY) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettoeinkommen von 30,7 Millionen US-Dollar (Grundgewinn je Aktie 2,93$), gegenüber 26,1 Millionen US-Dollar (2,50$ je Aktie) im ersten Quartal 2024. Der Umsatz stieg um 4,2 % auf 367,8 Millionen US-Dollar.
Der Bereich Wealth Management verzeichnete einen Umsatzanstieg von 1,7 % auf 242,0 Millionen US-Dollar, obwohl das Ergebnis vor Steuern um 10,5 % zurückging. Die Beratungsgebühren wuchsen um 12,2 % aufgrund höherer verwalteter Vermögenswerte (AUM) von 48,9 Milliarden US-Dollar. Die Umsätze im Kapitalmarkt stiegen um 10,0 % auf 123,3 Millionen US-Dollar, wodurch der Verlust vor Steuern von 6,7 Millionen auf 5,1 Millionen US-Dollar reduziert wurde.
Das Unternehmen steht vor Herausforderungen durch unsichere makroökonomische Bedingungen, mit Sorgen über Rezessionsrisiken, sinkendes Verbrauchervertrauen und Marktschwankungen, die die Kapitalmarktaktivitäten beeinträchtigen. Der Vorstand erklärte eine Quartalsdividende von 0,18 US-Dollar je Aktie, zahlbar am 23. Mai 2025.
- Net income increased 17.7% to $30.7 million
- Revenue grew 4.2% to $367.8 million
- Advisory fees increased 12.2% due to higher AUM
- Capital Markets revenue rose 10.0%
- Record levels achieved in stockholders' equity, book value, and tangible book value per share
- Wealth Management pre-tax income decreased 10.5%
- Bank deposit sweep income declined by $6.6 million
- Capital Markets segment still operating at a loss ($5.1 million pre-tax)
- Investment banking advisory fees decreased 18.5%
- Principal transactions revenue declined 50.8%
Insights
Oppenheimer delivered strong Q1 results with 17.7% higher net income and 4.2% revenue growth despite management's cautious macroeconomic outlook.
Oppenheimer Holdings reported robust financial performance for Q1 2025, with net income rising 17.7% to $30.7 million and basic EPS increasing 17.2% to $2.93 compared to Q1 2024. Revenue grew 4.2% year-over-year to $367.8 million, demonstrating the firm's operational resilience despite what CEO Albert Lowenthal described as "increasingly uncertain macroeconomic conditions."
The results reveal a tale of two segments with different trajectories. Wealth Management, generating 65.8% of total revenue, saw modest revenue growth of 1.7% but experienced a pre-tax income decline of 10.5% and margin compression from 31.8% to 28.0%. This profit squeeze stemmed from higher legal expenses and increased portfolio management costs. However, the segment benefited from strong advisory fee growth of 12.2% and higher retail commissions (+7.8%) due to increased trading activity during market volatility.
Meanwhile, the Capital Markets segment showed marked improvement with revenue up 10.0% to $123.3 million and a narrowed pre-tax loss of $5.1 million versus $6.7 million a year ago. The segment's enhanced performance came primarily from equities sales and trading revenue surging 37.9% and fixed income underwriting fees jumping 116.6%, offsetting an 18.5% decline in advisory fees.
Particularly noteworthy is Oppenheimer's strengthened balance sheet, with stockholders' equity reaching a record $872.3 million and book value per share climbing to $82.87, a 7.0% increase. The firm maintained its $0.18 quarterly dividend and improved its effective tax rate to 25.9% from 31.3%.
These strong results stand in contrast to management's cautious commentary about increasing recession probability, stagflation risks, and market volatility stemming from policy uncertainties. The performance demonstrates Oppenheimer's ability to capitalize on volatile trading conditions while positioning for the upcoming CEO transition to Robert Lowenthal.
Albert G. Lowenthal, Chairman and CEO commented, "The Firm's solid performance for the quarter underscores the ability of our diversified businesses to deliver profitable operating results in increasingly uncertain macroeconomic conditions. During the quarter, all major indices receded from prior quarter highs as the financial markets digested the new administration's swift policy changes on trade, immigration and government spending as well as initiatives on decreased regulation. Concerns that recently enacted tariffs would likely provoke a wider trade war and spur "stagflation" – a combination of slower growth and higher inflation – produced increased volatility and lower valuations for equity securities as well as pressure on the
Notwithstanding the increasingly negative market sentiment, our Wealth Management business delivered strong results with a number of improvements over the prior year. The volatile markets spurred robust trading by our clients, driving higher retail commissions. Asset-based advisory fees also increased since AUM, while slightly reduced from recently established all-time highs, remained well above AUMs outstanding during the comparable period. A decline in our interest-sensitive revenues, partially offset these improvements due to lower short term interest rates and reduced FDIC sweep balances.
Our Capital Markets revenues exceeded prior year levels despite challenging market conditions that saw lower underwriting activity amid postponed transactions by corporate clients owing to policy uncertainties and volatile markets that put a damper on deal making activities and new issuance levels. Institutional trading volumes increased in the volatile markets seen during the latter part of the 1st quarter, which were favorable to our sales and trading revenues.
The Firm ended the quarter with record equity levels and is well-positioned for our CEO-elect, Robert Lowenthal, to take advantage of the opportunities that lie ahead. I am confident that the Firm is heading into the next era with the right leadership team that will guide the Company to its best days yet."
Summary Operating Results (Unaudited) | ||
('000s, except per share amounts or otherwise indicated) | ||
Firm | 1Q-25 | 1Q-24 |
Revenue | $ 367,825 | $ 353,138 |
Compensation Expenses | $ 227,091 | $ 221,713 |
Non-compensation Expenses | $ 99,358 | $ 93,970 |
Pre-Tax Income | $ 41,376 | $ 37,455 |
Income Tax Provision | $ 10,721 | $ 11,711 |
Net Income (1) | $ 30,655 | $ 26,054 |
Earnings Per Share (Basic) (1) | $ 2.93 | $ 2.50 |
Earnings Per Share (Diluted) (1) | $ 2.72 | $ 2.37 |
Book Value Per Share | $ 82.87 | $ 77.47 |
Tangible Book Value Per Share (2) | $ 65.85 | $ 60.41 |
Wealth Management | ||
Revenue | $ 241,986 | $ 237,961 |
Pre-Tax Income | $ 67,864 | $ 75,785 |
Assets Under Administration (billions) | $ 129.9 | $ 124.9 |
Assets Under Management (billions) | $ 48.9 | $ 46.6 |
Capital Markets | ||
Revenue | $ 123,261 | $ 112,083 |
Pre-Tax Loss | $ (5,097) | $ (6,702) |
(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 first quarter of 2025 was primarily driven by significantly higher advisory fees attributable to a rise in billable AUM and an increase in transaction-based commissions as well as sales and trading revenue
- Assets under administration and under management at March 31, 2025 modestly decreased below recently established records
- Compensation expenses increased from the prior year quarter largely as a result of inflationary pressures on wages and higher production-related expenses
- Non-compensation expenses increased from the prior year quarter primarily due to higher interest and technology related expenses and higher clearing and execution costs attributable to higher volumes
- 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
('000s, except otherwise indicated) | ||
1Q-25 | 1Q-24 | |
Revenue | $ 241,986 | $ 237,961 |
Commissions | ||
Advisory Fees | $ 128,792 | $ 114,836 |
Bank Deposit Sweep Income | ||
Interest | ||
Other | $ 4,723 | |
Total Expenses | $ 174,122 | $ 162,176 |
Compensation | $ 119,648 | $ 115,572 |
Non-compensation | ||
Pre-Tax Income | ||
Compensation Ratio | 49.4 % | 48.6 % |
Non-compensation Ratio | 22.5 % | 19.6 % |
Pre-Tax Margin | 28.0 % | 31.8 % |
Assets Under Administration (billions) | $ 129.9 | $ 124.9 |
Assets Under Management (billions) | $ 48.9 | $ 46.6 |
Cash Sweep Balances (billions) | $ 2.9 | $ 3.2 |
Revenue:
- Retail commissions increased
7.8% from a year ago primarily due to higher retail trading activity - Advisory fees increased
12.2% due to higher AUM during the billing period - Bank deposit sweep income decreased
$6.6 million - Interest revenue increased
6.4% from the prior year period due to higher average margin loan balances - Other revenue decreased from a year ago primarily due to a decline 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 totaled
$48.9 billion - The increase in AUM from the prior year period was comprised of higher asset values of
$2.8 billion $0.5 billion
Total Expenses:
- Compensation expenses increased
3.5% from a year ago primarily due to higher production related expenses, partially offset by lower deferred compensation expenses and decreased costs associated with share appreciation rights - Non-compensation expenses increased
16.9% from a year ago primarily due to an increase in legal expenses and higher external portfolio management costs, which are directly related to the increase in AUM
Capital Markets
Capital Markets reported revenue for the current quarter of
('000s) | ||
1Q-25 | 1Q-24 | |
Revenue | $ 123,261 | $ 112,083 |
Investment Banking | $ 44,980 | $ 47,918 |
Advisory Fees | $ 25,962 | $ 31,868 |
Equities Underwriting | $ 13,399 | $ 13,179 |
Fixed Income Underwriting | $ 5,301 | $ 2,447 |
Other | $ 318 | $ 424 |
Sales and Trading | $ 76,879 | $ 63,659 |
Equities | $ 41,744 | $ 30,266 |
Fixed Income | $ 35,135 | $ 33,393 |
Other | $ 1,402 | $ 506 |
Total Expenses | $ 128,358 | $ 118,785 |
Compensation | $ 87,344 | $ 81,588 |
Non-compensation | $ 41,014 | $ 37,197 |
Pre-Tax Loss | $ (5,097) | $ (6,702) |
Compensation Ratio | 70.9 % | 72.8 % |
Non-compensation Ratio | 33.3 % | 33.2 % |
Pre-Tax Margin | (4.1) % | (6.0) % |
Revenue:
Investment Banking
- Advisory fees earned from investment banking activities decreased
18.5% compared with a year ago primarily due to fewer private placement transactions - Equities underwriting fees were flat when compared to the prior year period
- Fixed income underwriting fees increased
116.6% compared with the prior year period primarily due to higher public finance transaction revenue
Sales and Trading
- Equities sales and trading revenue increased
37.9% compared with the prior year period mostly due to higher trading volumes and greater options-related revenue - Fixed income sales and trading revenue increased
5.2% compared with a year ago largely due to higher interest income on trading inventory
Total Expenses:
- Compensation expenses increased
7.1% compared with a year ago largely due to costs associated with opportunistic new hires and greater production related expense - Non-compensation expenses were
10.3% higher than a year ago primarily due to an increase in communication and technology expenses and execution-related fees
Other Matters
(In millions, except number of shares and per share amounts) | ||
1Q-25 | 1Q-24 | |
Capital | ||
Stockholders' Equity (1) | $ 872.3 | $ 801.5 |
Regulatory Net Capital (2) | $ 384.1 | $ 431.4 |
Regulatory Excess Net Capital (2) | $ 355.4 | $ 412.6 |
Common Stock Repurchases | ||
Repurchases | $ 0.1 | $ 8.4 |
Number of Shares | 1,530 | 214,723 |
Average Price | $ 58.79 | $ 39.05 |
Period End Shares | 10,525,495 | 10,346,862 |
Effective Tax Rate | 25.9 % | 31.3 % |
(1) Attributable to Oppenheimer Holdings Inc. | ||
(2) Attributable to Oppenheimer & Co. Inc. broker-dealer | ||
- The Board of Directors announced a quarterly dividend of
$0.18 - Compensation expense as a percentage of revenue at
61.7% was relatively flat with the same period last year - The effective tax rate for the current period was
25.9% compared with31.3% for the prior year period. The effective tax rate for the first quarter of 2025 was positively impacted by fewer non-deductible expenses and a higher tax benefit upon the vesting of share awards
Company Information
Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services. With roots tracing back to 1881, the Company is headquartered in
Forward-Looking Statements
This press release includes certain "forward-looking statements" relating to anticipated future performance. For a discussion of the factors that could cause future performance to be different than anticipated, reference is made to Factors Affecting "Forward-Looking Statements" and Part 1A – Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
Oppenheimer Holdings Inc. | ||||||
Consolidated Income Statements (Unaudited) | ||||||
('000s, except number of shares and per share amounts) | ||||||
For the Three Months Ended March 31, | ||||||
2025 | 2024 | % Change | ||||
REVENUE | ||||||
Commissions | $ 110,878 | $ 95,850 | 15.7 | |||
Advisory fees | 128,803 | 114,847 | 12.2 | |||
Investment banking | 47,623 | 50,537 | (5.8) | |||
Bank deposit sweep income | 30,075 | 36,685 | (18.0) | |||
Interest | 36,369 | 26,766 | 35.9 | |||
Principal transactions, net | 8,975 | 18,234 | (50.8) | |||
Other | 5,102 | 10,219 | (50.1) | |||
Total revenue | 367,825 | 353,138 | 4.2 | |||
EXPENSES | ||||||
Compensation and related expenses | 227,091 | 221,713 | 2.4 | |||
Communications and technology | 26,182 | 24,576 | 6.5 | |||
Occupancy and equipment costs | 16,009 | 15,848 | 1.0 | |||
Clearing and exchange fees | 7,752 | 5,842 | 32.7 | |||
Interest | 21,396 | 20,548 | 4.1 | |||
Other | 28,019 | 27,156 | 3.2 | |||
Total expenses | 326,449 | 315,683 | 3.4 | |||
Pre-Tax Income | 41,376 | 37,455 | 10.5 | |||
Income tax provision | 10,721 | 11,711 | (8.5) | |||
Net Income | $ 30,655 | $ 25,744 | 19.1 | |||
Less: Net loss attributable to non-controlling interest, net of tax | — | (310) | * | |||
Net income attributable to Oppenheimer Holdings Inc. | $ 30,655 | $ 26,054 | 17.7 | |||
Earnings per share attributable to Oppenheimer Holdings Inc. | ||||||
Basic | $ 2.93 | $ 2.50 | 17.2 | |||
Diluted | $ 2.72 | $ 2.37 | 14.8 | |||
Weighted average number of common shares outstanding | ||||||
Basic | 10,465,771 | 10,407,454 | 0.6 | |||
Diluted | 11,277,939 | 11,001,669 | 2.5 | |||
Period end number of common shares outstanding | 10,525,495 | 10,346,862 | 1.7 | |||
* Percentage not meaningful |
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SOURCE Oppenheimer Holdings Inc.
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