Piper Sandler Companies (PIPR) investor relations material

Executive summary

• Q2 2026 net revenues reached up to $496 million, up as much as 25% year-over-year, with adjusted net revenues of $491 million and adjusted EPS of $1.04, both significantly higher year-over-year.

• Marked the 11th consecutive quarter of year-over-year revenue growth, with record results in investment banking, advisory, municipal finance, and equity brokerage, while fixed income lagged due to market headwinds.

• Advisory services delivered record Q2 revenues, up 34% year-over-year, driven by increased M&A activity, especially in healthcare and financial services.

• Declared a quarterly dividend of $0.20 per share and returned $215 million to shareholders in H1 2026 through dividends and share repurchases.

• Institutional brokerage revenues declined slightly due to lower fixed income activity, while equity brokerage revenues were among the best on record.

Financial highlights

• Q2 2026 net revenues: up to $496 million (+25% YoY); net income attributable to shareholders: $67.8 million (+61% YoY); adjusted net income: $74.5 million (+41% YoY); diluted EPS: $0.95 (GAAP), $1.04 (adjusted).

• First half 2026 net revenues: up to $969.9 million (+28.6% YoY); net income: $146 million (adjusted), $133.1 million (GAAP); diluted EPS: $2.04 (adjusted).

• Compensation ratio improved to as low as 61.5% for Q2 and first half; non-compensation expenses for Q2 were $82 million (16.7% of net revenues).

• Pre-tax margin improved to 20.3% (GAAP) and 21.8% (adjusted); effective tax rate: 30.5% (adjusted), 30.2% (GAAP).

• Book value per share and equity metrics improved, with common shareholders' equity at $1.37 billion as of June 30, 2026.

Outlook and guidance

• Management expects continued constructive market conditions for M&A, especially in healthcare and middle-market depositories, but anticipates seasonal declines in equity brokerage and municipal financing in Q3.

• Fixed income revenues expected to remain flat or similar to Q2 due to ongoing market challenges.

• Forward-looking statements caution on transaction volume variability, market volatility, and macroeconomic risks.