Oppenheimer (OPY) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 21.0% year-over-year to $445.1 million, driven by higher investment banking, commissions, and advisory fees, despite a challenging geopolitical environment and market volatility.

• Net loss attributable to shareholders was $20.6 million ($1.93 per share), compared to net income of $30.7 million ($2.93 per share) in Q1 2025, primarily due to a $70 million legal settlement and $22.3 million in stock appreciation rights expense.

• Adjusted net income (Non-GAAP, excluding settlement and stock-based compensation) was $47.5 million, up 65.9% year-over-year.

• Assets under management reached $54.1 billion and assets under administration were $139.8 billion, both up from the prior year.

• Quarterly dividend increased by 11.1% to $0.20 per share, payable May 29, 2026.

Financial highlights

• Compensation expenses increased 30.3% year-over-year to $296.0 million, mainly due to stock appreciation rights and higher incentive accruals.

• Non-compensation expenses rose 77.2% to $176.1 million, largely due to the legal settlement.

• Book value per share at quarter-end was $88.95; tangible book value per share was $72.28.

• Adjusted basic EPS was $4.46, up from $2.74 in Q1 2025; reported basic EPS was $(1.93).

• Effective tax rate for Q1 2026 was 23.8%, down from 25.9% in Q1 2025.

Outlook and guidance

• Management expects to continue reporting non-GAAP measures excluding volatile stock appreciation rights expenses in future periods.

• Focus remains on expanding wealth management and capital markets through hiring, acquisitions, and technology investments.

• Continued investment in technology, compliance, and risk management, with ongoing review of office footprint and cost structure.

• The company does not expect the legal settlement to materially impact liquidity or ongoing cash requirements.

• Management remains focused on supporting clients amid ongoing market volatility and geopolitical uncertainty.