Piper Sandler Companies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenues for the third quarter of 2026 were $443 million, a decrease of 11% from the second quarter of 2026 and 8% from the third quarter of 2025.
• Adjusted net revenues totaled $456 million, a decrease of 7% from the second quarter of 2026 and flat compared to the third quarter of 2025.
• Net income attributable to Piper Sandler Companies was $55 million, a decrease of 18% from the second quarter of 2026 and 8% from the third quarter of 2025.
• Earnings per diluted common share were $0.78, down 18% from the second quarter of 2026 and 8% from the third quarter of 2025.
• Adjusted net income was $61.7 million, a decrease of 17% from the second quarter of 2026 and 10% from the third quarter of 2025.
• Adjusted earnings per diluted common share were $0.87, down 16% from the second quarter of 2026 and 9% from the third quarter of 2025.
• Pre-tax margin was 15.0% for the quarter, down 5.3 percentage points from the second quarter of 2026 and 7.4 percentage points from the third quarter of 2025.
• Adjusted operating margin was 19.8%, down 2.0 percentage points from the second quarter of 2026 and 1.4 percentage points from the third quarter of 2025.
• Compensation ratio was 64.7% (GAAP) and 61.5% (Adjusted); non-compensation expenses were $89.8 million (GAAP) and $85.3 million (Adjusted).
• For the first nine months of 2026, net revenues were $1.4 billion, an increase of 15% year-over-year, while adjusted net revenues were $1.4 billion, an increase of 14% year-over-year.

Business Segments and Product Lines:

• Corporate investment banking generated record third quarter revenues of $307 million, driven by strong results in financial services, healthcare, and energy, power & infrastructure groups.
• Advisory services revenues were $250.3 million, down 9% from the second quarter of 2026 but up 18% from the third quarter of 2025.
• Corporate financing revenues were $56.6 million, up 50% from the second quarter of 2026 but down 29% from the third quarter of 2025.
• Municipal financing revenues were $24.8 million, down 50% from the second quarter of 2026 and 36% from the third quarter of 2025 due to higher interest rates impacting issuance activity.
• Institutional brokerage revenues were $114.3 million, up 2% from the second quarter of 2026 and 3% from the third quarter of 2025.
• Fixed income services revenues were $59.8 million, up 23% from the second quarter of 2026 and 5% from the third quarter of 2025, driven by an elevated interest rate environment.
• Equity brokerage revenues were $54.5 million, down 13% from the second quarter of 2026 but flat compared to the third quarter of 2025.
• Investment income/loss was a loss of $13.5 million for the quarter, compared to income of $14.1 million in the second quarter of 2026 and $30.6 million in the third quarter of 2025.

Market and Competitive Landscape:

• Advisory services performance was led by the financial services group and the energy, power & infrastructure team, which generated a record quarter.
• Corporate financing performance centered on capital raising activity for healthcare and financial services clients.
• Higher interest rates negatively impacted municipal financing issuance activity.
• The elevated interest rate environment drove increased client activity in fixed income services.

Risks and Challenges:

• Pre-tax margins were impacted by losses on investments, including amounts attributable to noncontrolling interests in alternative asset funds.
• Higher non-compensation expenses, including incremental occupancy and equipment costs from the New York City office move, increased legal fees, and technology consulting fees, impacted margins.
• The effective tax rate was elevated at 39.7% due to net losses attributable to noncontrolling interests.
• Forward-looking statements note risks including potential declines in macroeconomic conditions, market volatility, trade policy impacts, and interest rate volatility affecting fixed income business and liquidity.

Management Commentary and Tone:

• Chad Abraham, chairman and chief executive officer, stated the company delivered "solid results" supported by 18% year-over-year growth in advisory services revenues and increased client activity in fixed income.
• Management noted they are building on record year-to-date revenues and remain focused on supporting clients across dynamic markets to finish the year strong.
• The tone emphasized a commitment to continuing to return capital to shareholders.

Other Key Points:

• Declared a quarterly cash dividend of $0.20 per share, payable on December 11, 2026, to shareholders of record as of November 24, 2026.
• Authorized a new share repurchase program of up to $200 million, effective immediately and expiring on December 31, 2028.
• Returned an aggregate of $268 million to shareholders during the first nine months of 2026 through dividends and repurchases of 1.8 million shares at an average price of $77.80 per share.
• In September 2026, launched equities trading in Europe through Piper Sandler Europe.
• Established a London-based debt advisory team within the energy, power & infrastructure investment banking group consisting of four professionals.
• Strengthened the private capital advisory group with the addition of a managing director focused on secondary capital advisory.
• Full-time employees stood at 1,895 as of September 30, 2026, compared to 1,915 in June 2026 and 1,836 in September 2025.
• Common shareholders' equity was $1,382.6 million as of September 30, 2026.