Oppenheimer Q1 Revenue Grows 21% to $445.1M Despite $20.6M Loss
OPY•Oppenheimer Holdings reported a 1Q net loss of $20.6 million ($1.93/share) on $445.1 million revenue, up 21.0% year-over-year, after incurring a $70 million legal accrual and $22.3 million advisor compensation expense. Adjusted net income rose to $47.5 million ($4.46/share) and the quarterly dividend was hiked 11.1% to $0.20 per share.
1. Financial Results
Oppenheimer Holdings reported a net loss of $20.6 million ($1.93 per share) for the first quarter of 2026, compared with net income of $30.7 million ($2.93 per share) in the year-ago period, on revenue of $445.1 million, up 21.0% from $367.8 million. Adjusted net income, excluding special items, was $47.5 million ($4.46 per share), versus $28.6 million ($2.74 per share) a year earlier.
2. Impact of Special Items
First-quarter results were lowered by a pre-tax $70 million accrual to settle cash sweep litigation and a $22.3 million expense tied to a liability-based compensation program for financial advisors linked to share price appreciation during the quarter.
3. Segment Performance
Wealth Management revenue increased 4.8% to $253.7 million, but pre-tax income fell 35.8% to $43.6 million due largely to higher stock-based compensation; assets under management rose to $54.1 billion and assets under administration to $139.8 billion. Capital Markets revenue surged to $189.1 million, driving a pre-tax profit of $35.4 million versus a loss of $5.1 million in Q1 2025.
4. Dividend and Outlook
The board approved an 11.1% increase in the quarterly dividend to $0.20 per share, reflecting a robust capital position. Management emphasized continued focus on supporting clients through volatile market conditions.
