Oppenheimer (OPY -3.34%), a full-service investment bank and wealth management firm, reported its latest financial results on Aug. 1, 2025, for the second quarter of fiscal 2025. The headline news was robust top- and bottom-line growth: Revenue jumped 12.9% to $373.2 million (GAAP) in Q2 2025, while Net income (GAAP) more than doubled to $21.7 million in Q2 2025 and Diluted earnings per share (EPS) (GAAP) rose to $1.91 from $0.92 in Q2 2025. Analysts did not provide estimates this quarter, so direct comparison to consensus forecasts is not possible. The results marked a notable improvement over the prior-year period, with particular strength in Capital Markets revenues and resilient performance from the Wealth Management business despite margin pressure. Overall, the quarter showed meaningful business progress amid ongoing industry competition.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS (Diluted, GAAP) | $1.91 | $0.92 | 107.6% |
| Revenue (GAAP) | $373.2 million | $330.6 million | 12.9% |
| Net Income (GAAP) | $21.7 million | N/A | N/A |
| Pre-Tax Income | $32.2 million | N/A | N/A |
| Revenue – Wealth Management | $246.4 million | $234.5 million | 5.1% |
| Revenue – Capital Markets | $123.0 million | $92.1 million | 33.6% |
Overview of Oppenheimer’s business and strategic focus
Oppenheimer delivers financial services through two core divisions: Wealth Management and Capital Markets. The Wealth Management arm provides personalized advice, brokerage, planning, and investment services to individuals and institutions. Its scope includes full-service brokerage, margin lending, and advisory accounts. Capital Markets offers investment banking services, including mergers, acquisitions, equity and debt placements, and sales and trading in various financial instruments.
The company’s recent strategic focus has centered on growing asset-based revenues and expanding its middle-market investment banking franchise. Key success factors include the ability to attract high-net-worth clients and skilled advisers, maintain stable regulatory capital, and streamline costs to protect margins amid a competitive advisory and banking landscape.
Quarter in review: Financial and service performance
The period saw firmwide revenue climb 12.9% (GAAP), fueled by a dramatic rebound in Capital Markets and solid Wealth Management results. Capital Markets revenue surged 33.5%. Net income (GAAP) more than doubled compared to the prior year, and Pre-tax income (GAAP) was $32.2 million, up 103% compared to Q2 2024. These gains pushed diluted EPS (GAAP) to $1.91, marking a significant year-over-year jump.
Most of this growth was market-driven; the value of client holdings grew by $8.9 billion, but net distributions—money withdrawn by clients—outpaced new deposits by $3.6 billion, making market returns the main growth engine rather than organic client inflows.
Despite the increase in revenue, Wealth Management pre-tax income declined 2.2%. and Pre-tax profit margin fell to 25.5% from 27.4% in Q2 2024. Compensation and non-compensation expenses both rose faster than revenues compared to Q2 2024. The Wealth Management compensation ratio climbed to 53.7%, up from 52.7% in Q2 2024, while The Wealth Management non-compensation expenses accounted for 20.8% of revenue, up from 19.9% in Q2 2024. Advisor headcount also slipped, with 927 financial advisors at the end of Q2 2025 compared to 934 at the end of Q2 2024.
The Capital Markets division delivered a sharp turnaround in performance. Revenue shot up 33.5%, driven by increased investment banking activity. Advisory fees earned from investment banking rose 83.0%, reflecting higher deal volumes and larger mandates. Equities underwriting fees (GAAP) increased 9.1%, and Fixed income underwriting fees more than doubled compared to Q2 2024. Sales and trading revenue also saw improvement, with equities up 20.2% and fixed income up 23.6%. Despite these gains, the segment remained unprofitable but narrowed its pre-tax loss to $3.9 million from $21.8 million in Q2 2024. Both compensation and non-compensation expense ratios fell, indicating improved cost discipline as revenues scaled higher.
Wealth Management margin pressure, higher compensation expenses (GAAP), and a slow decline in adviser headcount suggest competitive intensity for talent and clients. Regulatory net capital at the firm's broker-dealer unit dropped to $408.9 million, down from $460.7 million in Q2 2024. However, Oppenheimer highlighted record book value and tangible book value per share, providing some financial cushion. The company enacted minimal share repurchases ($0.6 million), and The average repurchase price climbed from $40.01 in Q2 2024 to $58.89 in Q2 2025.
A quarterly dividend of $0.18 per share was declared, matching the prior period. The dividend has not changed, and the company has continued its policy of regular payouts each quarter. Book value per share and tangible book value per share reached new highs at $85.27 and $68.25, respectively, reflecting the stronger earnings and capital position during the quarter.
Looking ahead: Guidance and investor considerations
Oppenheimer’s management did not provide numerical guidance for the remainder of fiscal 2025 or beyond. Leadership expressed optimism that increased deal flow could continue if market and policy conditions stabilize later in the year. They pointed to a positive outlook based on improved earnings, capital position, and business momentum.
Investors should monitor core trends identified this quarter: the ability to drive organic asset growth in Wealth Management, manage rising compensation and expense ratios, and work toward translating Capital Markets revenue gains into profitability. Continued attention will also be needed on adviser retention, regulatory capital levels, and competitive dynamics in advisory and investment banking. The quarterly dividend remains at $0.18 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
