Oppenheimer Holdings Inc. (NYSE: OPY) reported its third quarter 2026 financial results, disclosing a significant decline in net income compared to the prior year despite reaching record-high asset levels. The company reported net income of $5.5 million, or $0.52 basic earnings per share, for the quarter ended September 30, 2026. This represents a decrease from the $21.7 million, or $2.06 basic earnings per share, reported in the third quarter of 2025.
Revenue for the third quarter of 2026 was $382.0 million, a 10.0% decrease from the $424.4 million generated in the same period last year. However, year-to-date revenue for the first nine months of 2026 totaled $1,282.0 million, an increase of 10.0% compared to the $1,165.4 million for the same period in 2025.
The decline in earnings was attributed to a $21.0 million pre-tax expense related to a long-term employee incentive compensation program tied to the company's stock price. During the quarter, the price of Oppenheimer's Class A stock increased by $12.42 per share, from $105.54 to $117.96. Management noted that while the program formula was changed in 2026 to reduce the number of grants, the impact of the revised formula will take several years to fully reflect. Adjusted net income, which excludes this specific compensation expense, was $20.9 million, or $1.96 basic earnings per share.
Despite the lower earnings, the company reported record-high asset levels. Assets under management (AUM) reached $59.6 billion at the end of the quarter, a new record and an increase of $4.5 billion from the prior year. Assets under administration (AUA) also remained above prior year levels at $153.7 billion. The Wealth Management business benefited from these high AUM levels, which drove advisory fee revenues up 15.3%.
Conversely, the Capital Markets business saw a 29.7% decrease in revenue, falling to $114.0 million. This decline was driven by lower investment banking advisory fees and equities underwriting revenue, which decreased by 82.0% due to fewer transactions. The company ended the quarter with stockholders' equity reaching a record $991.1 million.
The Board of Directors announced a quarterly dividend of $0.20 per share, payable on November 27, 2026, to holders of record on November 13, 2026.
