Piper Sandler Companies: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 6 February 2026: press release. Guidance figures: 1 new, 1 kept. The quarter’s numbers.

Key takeaways

Record fourth quarter revenues: The company reported its record quarter, with net revenues of $666 million and adjusted net revenues of $635 million for the fourth quarter. Source
Advisory revenue up 90% sequentially: Advisory services revenues were $402.6 million in the fourth quarter, up 90% from the third quarter on more completed transactions and a higher average fee. Source
Corporate financing down from third quarter: Corporate financing revenues were $66.7 million in the fourth quarter, down 16% from the third quarter because fewer transactions priced. Source
Pre-tax margin rose to 28.3%: Fourth-quarter pre-tax margin was 28.3%, up from 22.4% in the third quarter and 17.0% a year earlier, on higher net revenues and a lower compensation ratio. Source
Adjusted EPS of $6.88: Adjusted earnings per diluted share were $6.88 for the fourth quarter, against GAAP diluted EPS of $6.40, with adjusted net income of $123.3 million. Source
Returned $239 million to shareholders: The company returned $239 million to shareholders in 2025 through share repurchases and dividends. Source
Private markets trading launched: The company launched private markets trading, with three managing director hires who will trade equity shares of private companies. Source

“We had a fantastic finish to 2025, delivering record fourth quarter revenues.”
Chad Abraham, chairman and chief executive officer

Guidance

Area	Period	Figure	Against last quarter
Quarterly cash dividend Source	Payable March 13, 2026	$0.70 per share	Kept
Special cash dividend Source	Payable March 13, 2026	$5.00 per share	New

What changed from last quarter

Guidance kept: Quarterly dividend kept at $0.70 per share, the same amount declared in the prior quarter.
New: Four-for-one forward split of common stock announced; the prior quarter's release did not include a split. Source
New: Special cash dividend of $5.00 per share declared; the prior quarter's release declared only the quarterly dividend. Source
New: J.P. Peltier named global co-head of investment banking and capital markets. Source
New: Mike Piper appointed head of fixed income; John Beckelman, the prior head, moved to vice chairman. Source
New: Private markets trading launched with three managing director hires. Source
New: Five investment banking managing directors added to technology, financial services and chemicals practices. Source

Results and growth drivers

Record fourth quarter revenues: The company reported its record quarter, with net revenues of $666 million and adjusted net revenues of $635 million for the fourth quarter. Source
Full-year revenue grew 24%: Full-year 2025 net revenues were $1.90 billion, up 24% from 2024; adjusted net revenues were $1.88 billion, up 22%. Source
Fourth-quarter net income reached $114.0 million: Net income attributable to the company was $114.0 million, or $6.40 per diluted share, up 89% from the third quarter and 65% from a year earlier. Source

Investment banking revenue lines

Advisory revenue up 90% sequentially: Advisory services revenues were $402.6 million in the fourth quarter, up 90% from the third quarter on more completed transactions and a higher average fee. Source
Full-year advisory revenue at a record: Advisory revenues for 2025 were a record $1.04 billion, up 28%, on more completed deals and a higher average fee. Source
Financial services and industrials led: The financial services and services & industrials groups led advisory results, with solid contributions from healthcare, energy, power & infrastructure, and consumer teams. Source
Corporate financing down from third quarter: Corporate financing revenues were $66.7 million in the fourth quarter, down 16% from the third quarter because fewer transactions priced. Source
Corporate financing fees lifted full year: Full-year corporate financing revenues were $217.2 million, up 25%, mainly on higher average fees. Source
Municipal financing fell in fourth quarter: Municipal financing revenues were $38.9 million in the fourth quarter, flat on the third quarter and down 5% year over year as specialty sector issuance declined. Source

“We are pleased with our results, and are well-positioned for 2026.”
Chad Abraham, chairman and chief executive officer

Institutional brokerage and investment income

Brokerage revenue at record for year: Institutional brokerage revenues for 2025 were a record $433.2 million, up 8% from the prior year. Source
Equity brokerage record for year: Equity brokerage revenues for 2025 were a record $230.3 million, up 7%, on increased client activity across the full product suite. Source
Fixed income services fell in fourth quarter: Fixed income services revenues were $47.9 million in the fourth quarter, down 14% from the third quarter and 15% from a year earlier. Source
Investment income reached $37.0 million: Investment income was $37.0 million in the fourth quarter, compared with $30.6 million in the third quarter and a $15.4 million loss a year earlier. Source

Costs, compensation and margins

Pre-tax margin rose to 28.3%: Fourth-quarter pre-tax margin was 28.3%, up from 22.4% in the third quarter and 17.0% a year earlier, on higher net revenues and a lower compensation ratio. Source
Compensation ratio fell to 58.7%: The GAAP compensation ratio was 58.7% in the fourth quarter, lower than the third quarter and the year-earlier quarter, on higher net revenues. Source
Non-compensation costs rose on travel: Non-compensation expenses were $86.5 million in the fourth quarter, up 4% from the third quarter on travel-related marketing and development costs and intangible amortization. Source
Minneapolis move raised annual costs: Full-year non-compensation expenses rose 12% to $338.5 million, mainly from reimbursed deal expenses and occupancy and equipment costs tied to the Minneapolis headquarters move. Source

Adjusted versus GAAP results

Adjusted revenues exclude noncontrolling interests: Adjusted net revenues remove investment income tied to noncontrolling interests, $31.1 million in the fourth quarter, to reach $635.0 million. Source
Acquisition-related pay excluded from adjusted: Adjusted compensation excludes $9.0 million of compensation from acquisition-related agreements in the fourth quarter; the adjusted compensation ratio was 60.1%. Source
Adjusted EPS of $6.88: Adjusted earnings per diluted share were $6.88 for the fourth quarter, against GAAP diluted EPS of $6.40, with adjusted net income of $123.3 million. Source

Capital and shareholder returns

Returned $239 million to shareholders: The company returned $239 million to shareholders in 2025 through share repurchases and dividends. Source
Full-year dividend payout ratio 43%: Including the special dividend, fiscal 2025 dividends total $7.70 per share, a 43% payout of adjusted net income. Source
Fourth-quarter buybacks under authorization: The company repurchased 35 thousand shares under its authorization in the fourth quarter at an average price of $337.54, and 24 thousand shares from restricted stock recipients for tax obligations. Source
Full-year repurchases totaled $125 million: Total 2025 repurchases were 421 thousand shares, or $125.0 million, at an average of $297.22, including shares withheld from restricted stock vesting. Source

Hiring, leadership and new business

Private markets trading launched: The company launched private markets trading, with three managing director hires who will trade equity shares of private companies. Source
Peltier named investment banking co-head: J.P. Peltier was named global co-head of investment banking and capital markets, alongside James Baker and Mike Dillahunt. Source
Fixed income head changed: Mike Piper was appointed head of fixed income, and John Beckelman, the prior head, moved to vice chairman. Source
Five investment banking MDs added: Five investment banking managing directors were added to strengthen the technology, financial services and chemicals practices. Source

Coming up, as management said on 6 February 2026

Stock split takes effect: The four-for-one split becomes effective at 4:30 p.m. Eastern Time on March 23, 2026. Source
Split-adjusted trading starts: Common stock begins trading on a split-adjusted basis at the start of trading on March 24, 2026. Source
Dividend payment and record dates: The special and quarterly dividends are payable March 13, 2026, to shareholders of record at the close of business on March 3, 2026. Source

Figures management reported

Figure	Reported
Total completed advisory transactions Source	127
Total equity transactions priced Source	21
Total debt and preferred transactions priced Source	10
Total issues priced (municipal negotiated) Source	151
Number of shares traded (in billions) Source	3.0

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Piper Sandler Companies Reports Fourth Quarter and

Full Year 2025 Results; Declares Special Dividend of $5.00 Per Share and Quarterly Dividend of $0.70 Per Share; Announces 4-for-1 Stock Split

MINNEAPOLIS - February 6, 2026 - Piper Sandler Companies (NYSE: PIPR), a leading investment bank, today announced its results for the fourth quarter and full year of 2025.

"We had a fantastic finish to 2025, delivering record fourth quarter revenues. Full year revenues of $1.9 billion grew over 20% fueled by a record year from our advisory business, and strong growth across the rest of our businesses, " said Chad Abraham, chairman and chief executive officer. "We are pleased with our results, and are well-positioned for 2026."

	Fourth Quarter 2025 Results													Full Year 2025 Results
	U.S. GAAP							Adjusted (1)						U.S. GAAP						Adjusted (1)
(Dollars in millions, except per share data)	Q4			vs.		vs.			Q4			vs.		vs.						vs.						vs.
2025			Q3-25	Q4-24				2025			Q3-25	Q4-24				2025			2024			2025			2024
Net revenues		$666		39%		38%				$635		39%		27%				$1,899		24%				$1,879		22%
Pre-tax margin	28.3%				5.9pp		11.3pp		27.2%				6.0pp		2.8pp		19.7%				5.4pp		21.9%				2.2pp
Net income attributable to Piper Sandler Companies		$114		89%		65%				$123		80%		42%				$281		55%				$318		39%
Earnings per diluted common share		$6.40		89%		66%				$6.88		80%		43%				$15.82		54%				$17.74		40%

(1)A non-U.S. GAAP ("non-GAAP") measure. Management believes that presenting results and measures on an adjusted basis alongside U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information."

Financial & Business Highlights

Net revenues of $666 million for the fourth quarter of 2025 and adjusted net revenues of $635 million represent our strongest quarter on record.
Advisory services revenues of $403 million grew 44% year-over-year led by both our financial services franchise, which recorded their second strongest quarter, and a record quarter from our services & industrials team.
Net revenues and adjusted net revenues of $1.9 billion for 2025 both increased compared to the prior year.
Corporate investment banking revenues of $1.3 billion increased 28% over 2024, driven by record advisory services revenues, with five of our seven industry groups delivering year-over-year growth.
Institutional brokerage revenues of $433 million were up 8% over 2024, driven by record revenues from our equity brokerage business, and our second strongest year from fixed income services.
Municipal financing activity was robust across our specialty sector and governmental businesses, generating revenues of $146 million, up 19% over the prior year and our second best year on record.
Delivered increased profitability and earnings relative to 2024 driven by revenue growth and strong operating discipline.

Talent

Named J.P. Peltier as global co-head of investment banking and capital markets to serve alongside James Baker and Mike Dillahunt.
Appointed Mike Piper as the head of fixed income, with John Beckelman, the prior head, transitioning to vice chairman.
Added five investment banking MDs to strengthen our technology, financial services, and chemicals practices.
Launched private markets trading with three managing director hires who will trade equity shares of private companies.

Capital

Declared a special cash dividend of $5.00 per share and a quarterly cash dividend of $0.70 per share.
Announced a four-for-one forward split of our common stock to be effected at the start of trading on March 24, 2026.
Total dividend for fiscal year 2025 totaled $7.70 per share of common stock, an increase of 40% over 2024.
Returned an aggregate of $239 million to shareholders during 2025 through share repurchases and dividends.

U.S. GAAP Selected Financial Data

The following summarizes our results on a U.S. GAAP basis.

	Three Months Ended														Twelve Months Ended
(Dollars in thousands, except per share data)	Dec. 31,			Sept. 30,			Dec. 31,			Change vs.					Dec. 31,			Dec. 31,
2025			2025			2024			Q3-25		Q4-24			2025			2024			Change
Revenues
Investment banking:
Advisory services	$402,585			$212,372			$279,602			90%		44%			$1,037,959			$808,746			28%
Corporate financing	66,736			79,715			52,751			-16%		27%			217,156			173,876			25%
Municipal financing	38,940			38,501			41,007			1%		-5%			145,751			122,513			19%
Total investment banking	508,261			330,588			373,360			54%		36%			1,400,866			1,105,135			27%
Institutional brokerage:
Equity brokerage	64,186			53,750			61,232			19%		5%			230,273			215,275			7%
Fixed income services	47,892			55,740			56,097			-14%		-15%			202,925			186,167			9%
Total institutional brokerage	112,078			109,490			117,329			2%		-4%			433,198			401,442			8%
Interest income	9,620			9,374			10,095			3%		-5%			36,904			32,908			12%
Investment income/(loss)	37,033			30,642			(15,400)			21%			N/M		33,249			(7,890)				N/M
Total revenues	666,992			480,094			485,384			39%		37%			1,904,217			1,531,595			24%
Interest expense	942			818			1,277			15%		-26%			4,841			5,681			-15%
Net revenues	666,050			479,276			484,107			39%		38%			1,899,376			1,525,914			24%
Non-interest expenses
Compensation and benefits	390,796			288,901			316,004			35%		24%			1,186,370			1,004,173			18%
Non-compensation expenses	86,491			82,948			85,974			4%		1%			338,459			303,329			12%
Total non-interest expenses	477,287			371,849			401,978			28%		19%			1,524,829			1,307,502			17%
Income before income tax expense	188,763			107,427			82,129			76%		130%			374,547			218,412			71%
Income tax expense	45,799			24,949			29,627			84%		55%			80,582			60,972			32%
Net income	$142,964			$82,478			$52,502			73%		172%			$293,965			$157,440			87%
Net income attributable to Piper Sandler Companies	$113,968			$60,266			$69,059			89%		65%			$281,331			$181,114			55%
Earnings per diluted common share	$6.40			$3.38			$3.86			89%		66%			$15.82			$10.24			54%
Ratios and margin
Compensation ratio		58.7%			60.3%			65.3%								62.5%			65.8%
Non-compensation ratio		13.0%			17.3%			17.8%								17.8%			19.9%
Pre-tax margin		28.3%			22.4%			17.0%								19.7%			14.3%
Effective tax rate		24.3%			23.2%			36.1%								21.5%			27.9%

N/M - Not meaningful

The following table summarizes additional business metrics for the periods presented.

	Three Months Ended													Twelve Months Ended
	Dec. 31,			Sept. 30,			Dec. 31,			Change vs.				Dec. 31,			Dec. 31,
2025			2025			2024			Q3-25		Q4-24		2025			2024			Change
Advisory services
Completed M&A and restructuring transactions		99			60			63		65%		57%			250			220		14%
Completed capital advisory transactions		28			22			29		27%		-3%			85			68		25%
Total completed advisory transactions		127			82			92		55%		38%			335			288		16%
Corporate financings
Total equity transactions priced		21			23			25		-9%		-16%			75			81		-7%
Book run equity transactions priced		18			21			19		-14%		-5%			62			64		-3%
Total debt and preferred transactions priced		10			15			9		-33%		11%			47			36		31%
Book run debt and preferred transactions priced		7			8			5		-13%		40%			31			23		35%
Municipal negotiated issues
Aggregate par value of issues priced (in billions)	$4.1			$5.7			$4.3			-28%		-5%		$18.8			$16.9			11%
Total issues priced		151			133			148		14%		2%			555			501		11%
Equity brokerage
Number of shares traded (in billions)		3.0			2.7			3.1		11%		-3%			11.4			11.3		1%

NET REVENUES

For the fourth quarter of 2025, net revenues of $666.1 million increased 39% compared to the third quarter of 2025 and 38% compared to the fourth quarter of 2024.

Net revenues of $1.90 billion for 2025 increased 24% compared to the prior year.

Investment banking revenues of $508.3 million for the fourth quarter of 2025 increased 54% compared to the third quarter of 2025 and 36% compared to the fourth quarter of 2024.

For 2025, investment banking revenues of $1.40 billion increased 27% compared to 2024.

Advisory services revenues of $402.6 million for the fourth quarter of 2025 increased 90% compared to the third quarter of 2025 driven by more completed transactions and a higher average fee. Advisory services revenues increased 44% compared to the fourth quarter of 2024 due to more completed transactions. Sector performance was led by both the financial services and services & industrials groups, with solid contributions from our healthcare, energy, power & infrastructure, and consumer teams.

Record advisory services revenues of $1.04 billion for 2025 increased 28% compared to the prior year driven by more completed deals and a higher average fee. Revenues for the year reflect robust M&A activity as well as record results from our non-M&A advisory product teams. Sector contributions were led by our financial services group, followed by a record year from services & industrials and strong results from our healthcare team.

Corporate financing revenues of $66.7 million for the fourth quarter of 2025 decreased 16% compared to the third quarter of 2025 as we priced fewer transactions. Corporate financing revenues increased 27% compared to the fourth quarter of 2024 driven by a higher average fee which more than offset the decline in completed corporate financings.

Corporate financing revenues of $217.2 million for the year increased 25% compared to 2024 primarily due to increased average fees. Our healthcare franchise served as book runner on 37 of the 38 equity financings the team priced during the year, and our financial services group executed on a strong flow of debt and preferred financings.

Municipal financing revenues of $38.9 million for the fourth quarter of 2025 were essentially flat compared to the third quarter of 2025 and decreased 5% compared a strong fourth quarter of 2024 as issuance activity in our specialty sector business declined.

Municipal financing revenues of $145.8 million for 2025 increased 19% compared to the prior year driven by increased issuance activity resulting from improved market conditions and increased investor demand. Performance for the year included solid contributions from our specialty sectors as well as our governmental business, which drove the year-over-year revenue growth.

Institutional brokerage revenues of $112.1 million for the fourth quarter of 2025 increased 2% compared to the third quarter of 2025 and decreased 4% compared to the fourth quarter of 2024.

Record institutional brokerage revenues of $433.2 million for 2025 increased 8% compared to the prior year.

Equity brokerage revenues of $64.2 million for the fourth quarter of 2025 increased 19% compared to the third quarter of 2025 and 5% compared to the fourth quarter of 2024 driven by increased client activity.

Record equity brokerage revenues of $230.3 million for 2025 increased 7% compared to the prior year due to increased client activity across our full suite of products.

Fixed income services revenues of $47.9 million for the fourth quarter of 2025 decreased 14% and 15% compared to the strong results in the third quarter of 2025 and fourth quarter of 2024, respectively.

Fixed income services revenues of $202.9 million for 2025 increased 9% compared to the prior year driven by increased activity from our depository clients resulting from an improved interest rate outlook, as well as growth with our asset management and public entity clients.

Investment income/(loss) for the fourth quarter of 2025 was income of $37.0 million compared to income of $30.6 million for the third quarter of 2025 and a loss of $15.4 million for the fourth quarter of 2024. Investment income/(loss) for 2025 was income of $33.2 million compared to a loss of $7.9 million for 2024. For the current and prior periods, investment income/(loss) includes amounts attributable to noncontrolling interests primarily related to the alternative asset funds we manage.

NON-INTEREST EXPENSES

For the fourth quarter of 2025, non-interest expenses of $477.3 million increased 28% compared to the third quarter of 2025 and 19% compared to the fourth quarter of 2024.

Non-interest expenses of $1.52 billion for 2025 increased 17% compared to the prior year.

Compensation ratio of 58.7% for the fourth quarter of 2025 decreased compared to the third quarter of 2025 and the fourth quarter of 2024 driven by higher net revenues. In addition, the compensation ratio for the fourth quarter of last year was higher due to the investment loss attributable to noncontrolling interests.

Compensation ratio of 62.5% for 2025 decreased compared to 65.8% for the year-ago period driven by higher net revenues including investment income attributable to noncontrolling interests in the current year compared to an investment loss in 2024.

Non-compensation expenses of $86.5 million for the fourth quarter of 2025 increased 4% compared to the third quarter of 2025 due to higher marketing and development expenses associated with increased travel as well as acquisition-related intangible asset amortization. Non-compensation expenses for the current quarter were essentially flat compared to the fourth quarter of 2024.

Non-compensation expenses of $338.5 million for 2025 increased 12% compared to 2024 primarily driven by increased reimbursed deal expenses, incremental occupancy and equipment expenses in connection with our Minneapolis headquarters office move, and higher marketing and business development expenses associated with increased travel activity.

PRE-TAX INCOME

For the fourth quarter of 2025, we recorded pre-tax income of $188.8 million compared to $107.4 million for the third quarter of 2025 and $82.1 million for the fourth quarter of 2024.

Pre-tax income of $374.5 million for 2025 increased 71% compared to the prior year.

Pre-tax margin of 28.3% for the fourth quarter of 2025 increased compared to 22.4% for the third quarter of 2025 and 17.0% for the fourth quarter of 2024. Pre-tax margin was higher for the current quarter driven by increased net revenues and a lower compensation ratio.

Pre-tax margin of 19.7% for 2025 increased compared to 14.3% for 2024 resulting from higher net revenues as well as a lower compensation ratio.

EFFECTIVE TAX RATE

For the current and prior periods, the effective tax rate is impacted by the level of noncontrolling interests, the amount of non-deductible expenses, and the vesting of restricted stock awards. For the fourth quarter of 2025, the effective tax rates was 24.3% compared to 23.2% for the third quarter of 2025 and 36.1% for the fourth quarter of 2024. The effective tax rate for the fourth quarter of 2024 was higher due to the net loss attributable to noncontrolling interests.

The effective tax rate for 2025 was 21.5% compared to 27.9% for 2024. The effective tax rate for the current year was lower due to the net income attributable to noncontrolling interests and a higher tax benefit related to the vesting of restricted stock awards.

NET INCOME & EARNINGS PER SHARE

For the fourth quarter of 2025, we generated net income of $114.0 million, or $6.40 per diluted common share. Results for the current quarter increased compared to the third quarter of 2025 and the fourth quarter of 2024 due to increased net revenues and a higher pre-tax margin.

For 2025, we generated net income of $281.3 million, or $15.82 per diluted common share. Results for the year increased compared to 2024 driven by increased net revenues, a higher pre-tax margin and a lower effective tax rate.

Non-GAAP Selected Financial Data

The following summarizes our results on an adjusted, non-GAAP basis.

	Three Months Ended														Twelve Months Ended
(Dollars in thousands, except per share data)	Dec. 31,			Sept. 30,			Dec. 31,			Change vs.					Dec. 31,			Dec. 31,
2025			2025			2024			Q3-25		Q4-24			2025			2024			Change
Adjusted revenues
Investment banking:
Advisory services	$402,585			$212,372			$279,602			90%		44%			$1,037,959			$808,746			28%
Corporate financing	66,736			79,715			52,751			-16%		27%			217,156			173,876			25%
Municipal financing	38,940			38,501			41,007			1%		-5%			145,751			122,513			19%
Total investment banking	508,261			330,588			373,360			54%		36%			1,400,866			1,105,135			27%
Institutional brokerage:
Equity brokerage	64,186			53,750			61,232			19%		5%			230,273			215,275			7%
Fixed income services	47,892			55,740			56,097			-14%		-15%			202,925			186,167			9%
Total institutional brokerage	112,078			109,490			117,329			2%		-4%			433,198			401,442			8%
Interest income	9,620			9,374			10,095			3%		-5%			36,904			32,908			12%
Investment income/(loss)	5,980			6,680			(924)			-10%			N/M		12,882			7,238			78%
Adjusted total revenues	635,939			456,132			499,860			39%		27%			1,883,850			1,546,723			22%
Interest expense	942			818			1,277			15%		-26%			4,841			5,681			-15%
Adjusted net revenues	634,997			455,314			498,583			39%		27%			1,879,009			1,541,042			22%
Adjusted operating expenses
Adjusted compensation and benefits	381,830			280,973			300,475			36%		27%			1,153,712			955,446			21%
Adjusted non-compensation expenses	80,703			78,007			76,698			3%		5%			314,583			281,865			12%
Adjusted total operating expenses	462,533			358,980			377,173			29%		23%			1,468,295			1,237,311			19%
Adjusted operating income	172,464			96,334			121,410			79%		42%			410,714			303,731			35%
Adjusted income tax expense	49,185			27,777			34,654			77%		42%			92,642			75,506			23%
Adjusted net income	$123,279			$68,557			$86,756			80%		42%			$318,072			$228,225			39%
Adjusted earnings per diluted common share	$6.88			$3.82			$4.80			80%		43%			$17.74			$12.69			40%
Adjusted ratios and margin
Adjusted compensation ratio		60.1%			61.7%			60.3%								61.4%			62.0%
Adjusted non-compensation ratio		12.7%			17.1%			15.4%								16.7%			18.3%
Adjusted operating margin		27.2%			21.2%			24.4%								21.9%			19.7%
Adjusted effective tax rate		28.5%			28.8%			28.5%								22.6%			24.9%

N/M - Not meaningful

Throughout this press release, including the table above, we present financial measures that are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Management believes that presenting results and measures on an adjusted basis alongside U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods and enhances the overall understanding of our current financial performance by excluding certain items that may not be indicative of our core operating results. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information."

See page 3 for a summary of additional business metrics.

ADJUSTED NET REVENUES

For the fourth quarter of 2025, adjusted net revenues of $635.0 million increased 39% compared to the third quarter of 2025 and 27% compared to the fourth quarter of 2024 driven primarily by growth in advisory services revenues.

Adjusted net revenues of $1.88 billion for 2025 increased 22% compared to the prior year driven by record advisory services revenues and strong performance across the rest of our businesses.

ADJUSTED OPERATING EXPENSES

For the fourth quarter of 2025, adjusted operating expenses of $462.5 million increased 29% compared to the third quarter of 2025 and 23% compared to the fourth quarter of 2024.

Adjusted operating expenses of $1.47 billion for 2025 increased 19% compared to the prior year.

Adjusted compensation ratio of 60.1% for the fourth quarter of 2025 decreased compared to 61.7% for the third quarter of 2025 and 60.3% for the fourth quarter of 2024 driven by higher adjusted net revenues.

Adjusted compensation ratio of 61.4% for 2025 decreased compared to 62.0% for the year-ago period driven by higher adjusted net revenues.

Adjusted non-compensation expenses of $80.7 million for the fourth quarter of 2025 increased 3% compared to the third quarter of 2025 and 5% compared to the fourth quarter of 2024 primarily due to higher other operating expenses associated with increased business activity and higher marketing and business development expenses resulting from increased travel activity. In addition, adjusted non-compensation expenses for the current quarter increased compared to the prior year quarter resulting from higher reimbursed deal expenses and incremental occupancy and equipment expenses in connection with our Minneapolis headquarters office move.

Adjusted non-compensation expenses of $314.6 million for 2025 increased 12% compared to the prior year driven by increased reimbursed deal expenses, incremental occupancy and equipment expenses in connection with our Minneapolis headquarters office move, and higher marketing and business development expenses associated with increased travel activity.

ADJUSTED OPERATING INCOME

For the fourth quarter of 2025, adjusted operating income of $172.5 million increased 79% compared to the third quarter of 2025 and 42% compared to the fourth quarter of 2024.

For 2025, adjusted operating income of $410.7 million increased 35% compared to 2024.

Adjusted operating margin of 27.2% for the fourth quarter of 2025 increased compared to 21.2% for the third quarter of 2025 and 24.4% for the fourth quarter of 2024 driven by higher adjusted net revenues and a lower adjusted non-compensation ratio.

Adjusted operating margin of 21.9% for 2025 increased compared to 19.7% for the prior year driven by higher adjusted net revenues as well as a lower adjusted compensation ratio.

ADJUSTED EFFECTIVE TAX RATE

For the fourth quarter of 2025, our adjusted effective tax rate was 28.5%, compared to 28.8% for the third quarter of 2025 and 28.5% for the fourth quarter of 2024.

For 2025, our adjusted effective tax rate of 22.6% was lower compared to 24.9% for the prior year driven by a higher tax benefit related to the vesting of restricted stock awards.

ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE

For the fourth quarter of 2025, we generated adjusted net income of $123.3 million, or $6.88 of adjusted earnings per diluted common share. Results for the current quarter increased compared to the third quarter of 2025 and the fourth quarter of 2024 due primarily to higher adjusted net revenues and adjusted operating margin.

For 2025, we generated adjusted net income of $318.1 million, or $17.74 of adjusted earnings per diluted common share. Results for the current year increased compared to 2024 due to increased adjusted net revenues, a higher adjusted operating margin, and a lower adjusted effective tax rate.

Capital

STOCK SPLIT

On February 6, 2026, our Board of Directors approved a four-for-one forward split of Piper Sandler's common stock to increase liquidity and help make our stock more accessible to a wider range of investors.

The four-for-one stock split will be effected through the filing of an amendment to our Certificate of Incorporation, which will be accompanied by a proportionate increase in the number of shares of our authorized common stock.

The amendment effecting the stock split will be effective at 4:30 p.m. Eastern Time on March 23, 2026. At that time, every share of our common stock will automatically become four shares of our common stock. Record and beneficial owners of our common stock do not need to take any action. Our common stock will begin trading on the split-adjusted basis at the start of trading on March 24, 2026.

DIVIDENDS

On February 6, 2026, our Board of Directors declared a special cash dividend on the company's common stock of $5.00 per share related to our financial results for fiscal year 2025 to be paid on March 13, 2026, to shareholders of record as of the close of business on March 3, 2026. Including this special cash dividend, our total dividend related to fiscal year 2025 amounts to $7.70 per share of common stock, a payout ratio of 43% of adjusted net income.

In addition, our Board of Directors declared a quarterly cash dividend on the company's common stock of $0.70 per share to be paid on March 13, 2026, to shareholders of record as of the close of business on March 3, 2026.

During the fourth quarter of 2025, we paid a quarterly cash dividend of $0.70 per share of common stock, for an aggregate of $14.9 million.

During 2025, we paid $5.70 per share of common stock to shareholders through quarterly cash dividends and a special cash dividend, which was paid in the first quarter of 2025, for an aggregate of $114.1 million.

SHARE REPURCHASES

During the fourth quarter of 2025, we repurchased 35 thousand shares of the company's common stock, at an average price of $337.54 per share, pursuant to our share repurchase authorization. We also repurchased 24 thousand shares of the company's common stock, at an average price of $337.04 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. The aggregate amount of 59 thousand shares, or $19.8 million of the company's common stock, were repurchased at an average price of $337.34 per share.

For 2025, we repurchased 319 thousand shares of the company's common stock, at an average price of $303.03 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. We also repurchased 102 thousand shares of the company's common stock, at an average price of $279.05 per share, pursuant to our share repurchase authorization. The aggregate amount of 421 thousand shares, or $125.0 million of the company's common stock, was repurchased at an average price of $297.22 per share.

Additional Information

	Dec. 31,		Sept. 30,		Dec. 31,
	2025		2025		2024
Human Capital
Full-time employees		1,858		1,836		1,805
Corporate investment banking managing directors		187		183		183
Shareholder Information (amounts in millions)
Common shareholders’ equity	$1,371.0		$1,282.8		$1,227.8
Shares outstanding:
Common shares outstanding		16.9		16.7		16.1
Restricted shares outstanding		0.9		1.1		1.7
Total shares outstanding		17.8		17.8		17.8

Management Conference Call

Chad Abraham, chairman and chief executive officer; Deb Schoneman, president; and Kate Clune, chief financial officer, will host a conference call to discuss the financial results on Friday, February 6, 2026, at 8 a.m. Eastern Time (7 a.m. Central Time). Participants can access the call by dialing 800 330-6710 (in the U.S.) or +1 312 471-1353 (outside the U.S.) and passcode number 3387875. Callers should dial in at least 15 minutes prior to the call time. The conference call will also be accessible as an audio webcast through the company's website at pipersandler.com/earnings. A replay of the conference call will be available beginning approximately three hours after the event through the same link.

About Piper Sandler

Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; in the EU through Aviditi Capital Advisors Europe GmbH, a tied agent of AHP Capital Management GmbH, authorized and regulated by BaFin; and in the Abu Dhabi Global Market through Piper Sandler MENA Ltd., authorized and regulated by the ADGM Financial Services Regulatory Authority. Alternative asset management and fixed income advisory services are offered through separately registered advisory affiliates.

For more information, please contact Kate Clune, chief financial officer, at 212 466-7799 or investorrelations@psc.com.

Cautionary Note Regarding Forward-Looking Statements

Forward-looking statements notice

This press release and the conference call to discuss the contents of this press release contain forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are subject to significant risks and uncertainties that are difficult to predict. These forward-looking statements cover, among other things, statements made about the outlook for future periods, e.g., the outlook for corporate advisory (i.e., M&A), corporate financing, public finance, equity brokerage, and fixed income brokerage; current deal pipelines (or backlogs); growth plans for our businesses, including corporate investment banking and fixed income; the financial performance of recently completed transactions (i.e., our acquisition of G Squared Capital Partners); our recruiting pipeline; anticipated financial results for future periods (including expectations regarding revenue levels, non-compensation expenses, non-compensation ratio, effective tax rate, compensation ratio, compensation and benefits expense, operating margins, and earnings per share); our strategic priorities; the payment of our quarterly and special cash dividends; our share repurchase program; our announced four-for-one stock split; and economic, geopolitical, and market conditions generally.

Forward-looking statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, the following:

the volume of anticipated transactions - including corporate advisory (i.e., M&A), equity financing, and debt financing - and the corresponding revenues from the transactions may vary from quarter to quarter significantly, particularly if there is a decline in macroeconomic conditions or the financial markets;
revenues from corporate advisory (i.e., M&A) engagements and equity and debt financings may vary materially depending on the number, size, and timing of completed transactions, and completed transactions do not generally provide for subsequent engagements;
market, geopolitical and economic conditions or developments may be unfavorable, including in specific sectors in which we operate, and these conditions or developments, such as market fluctuations or volatility, may adversely affect our business, revenue levels and profitability;
the impact of trade policy, including tariffs, on market, geopolitical and economic conditions is difficult to predict, and may result in a decline in macroeconomic conditions or the financial markets that negatively impacts our business;
continued business and investor uncertainty around future trade policy or geopolitical conditions may adversely affect our business, revenue levels, and profitability;
the expected benefits of our recently completed acquisition of G Squared Capital Partners may take longer than anticipated to achieve or may not be achieved in its entirety or at all, and will in part depend on our ability to retain and hire key personnel, and the costs or difficulties relating to the combination of the business may be greater than expected and may adversely affect our results of operations;
interest rate volatility, especially if the changes are rapid or severe, could negatively impact our fixed income institutional business and the negative impact could be exaggerated by reduced liquidity in the fixed income markets; and
our stock price may fluctuate as a result of several factors, including but not limited to, changes in our revenues and operating results.

A further listing and description of these and other risks, uncertainties and important factors can be found in the sections titled "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, and updated in our subsequent reports filed with the SEC (available at our Website at www.pipersandler.com and at the SEC Website at www.sec.gov).

Forward-looking statements speak only as of the date they are made, and readers are cautioned not to place undue reliance on them. We undertake no obligation to update them in light of new information or future events.

Piper Sandler Companies

Results of Operations (U.S. GAAP - Unaudited)

	Three Months Ended					Twelve Months Ended
(Amounts in thousands, except per share data)	Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,
2025		2025		2024		2025		2024
Revenues
Investment banking	$508,261		$330,588		$373,360		$1,400,866		$1,105,135
Institutional brokerage	112,078		109,490		117,329		433,198		401,442
Interest income	9,620		9,374		10,095		36,904		32,908
Investment income/(loss)	37,033		30,642		(15,400)		33,249		(7,890)
Total revenues	666,992		480,094		485,384		1,904,217		1,531,595
Interest expense	942		818		1,277		4,841		5,681
Net revenues	666,050		479,276		484,107		1,899,376		1,525,914
Non-interest expenses
Compensation and benefits	390,796		288,901		316,004		1,186,370		1,004,173
Outside services	13,537		13,630		15,835		58,674		55,756
Occupancy and equipment	18,334		19,448		17,256		73,451		66,530
Communications	13,439		13,774		13,408		56,247		54,917
Marketing and business development	11,764		10,150		9,712		47,201		42,239
Deal-related expenses	13,327		12,948		12,111		43,483		30,491
Trade execution and clearance	4,949		4,775		5,302		19,599		19,836
Restructuring and integration costs	102		1,044		834		6,144		2,586
Intangible asset amortization	3,629		2,147		2,994		9,999		10,288
Other operating expenses	7,410		5,032		8,522		23,661		20,686
Total non-interest expenses	477,287		371,849		401,978		1,524,829		1,307,502
Income before income tax expense	188,763		107,427		82,129		374,547		218,412
Income tax expense	45,799		24,949		29,627		80,582		60,972
Net income	142,964		82,478		52,502		293,965		157,440
Net income/(loss) attributable to noncontrolling interests	28,996		22,212		(16,557)		12,634		(23,674)
Net income attributable to Piper Sandler Companies	$113,968		$60,266		$69,059		$281,331		$181,114
Earnings per common share
Basic	$6.77		$3.61		$4.30		$16.89		$11.44
Diluted	$6.40		$3.38		$3.86		$15.82		$10.24
Dividends declared per common share	$0.70		$0.70		$0.65		$5.70		$3.50
Weighted average common shares outstanding
Basic	16,829		16,716		16,052		16,658		15,838
Diluted	17,813		17,808		17,870		17,785		17,695

Piper Sandler Companies

Preliminary Selected Summary Financial Information (Non-GAAP - Unaudited) (1)

	Three Months Ended						Twelve Months Ended
	Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,
(Amounts in thousands, except per share data)		2025		2025		2024		2025		2024
Adjusted revenues
Investment banking	$508,261		$330,588		$373,360		$1,400,866		$1,105,135
Institutional brokerage	112,078		109,490		117,329		433,198		401,442
Interest income	9,620		9,374		10,095		36,904		32,908
Investment income/(loss)	5,980		6,680		(924)		12,882		7,238
Adjusted total revenues	635,939		456,132		499,860		1,883,850		1,546,723
Interest expense	942		818		1,277		4,841		5,681
Adjusted net revenues (2)	634,997		455,314		498,583		1,879,009		1,541,042
Adjusted operating expenses
Adjusted compensation and benefits (3)	381,830		280,973		300,475		1,153,712		955,446
Adjusted non-compensation expenses (4)	80,703		78,007		76,698		314,583		281,865
Adjusted total operating expenses (5)	462,533		358,980		377,173		1,468,295		1,237,311
Adjusted operating income (6)	172,464			96,334	121,410		410,714		303,731
Adjusted income tax expense (7)	49,185			27,777	34,654		92,642		75,506
Adjusted net income (8)	$123,279			$68,557	$86,756		$318,072		$228,225
Adjusted earnings per diluted common share (9)	$6.88		$3.82		$4.80		$17.74		$12.69
Adjusted weighted average diluted common shares outstanding (10)	17,924		17,931		18,060		17,930		17,988
Adjusted ratios and margin
Adjusted compensation ratio (11)		60.1%		61.7%		60.3%		61.4%		62.0%
Adjusted non-compensation ratio (12)		12.7%		17.1%		15.4%		16.7%		18.3%
Adjusted operating margin (13)		27.2%		21.2%		24.4%		21.9%		19.7%
Adjusted effective tax rate (14)		28.5%		28.8%		28.5%		22.6%		24.9%

This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information."

Piper Sandler Companies

Reconciliation of U.S. GAAP to Selected Summary Financial Information (1) (Unaudited)

	Three Months Ended						Twelve Months Ended
	Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,
(Amounts in thousands, except per share data)		2025		2025		2024		2025		2024
Net revenues:
Net revenues - U.S. GAAP basis	$666,050		$479,276		$484,107		$1,899,376		$1,525,914
Adjustment:
Investment (income)/loss related to noncontrolling interests (15)	(31,053)		(23,962)		14,476		(20,367)		15,128
Adjusted net revenues	$634,997		$455,314		$498,583		$1,879,009		$1,541,042
Compensation and benefits:
Compensation and benefits - U.S. GAAP basis	$390,796		$288,901		$316,004		$1,186,370		$1,004,173
Adjustment:
Compensation from acquisition-related agreements	(8,966)		(7,928)		(15,529)		(32,658)		(48,727)
Adjusted compensation and benefits	$381,830		$280,973		$300,475		$1,153,712		$955,446
Non-compensation expenses:
Non-compensation expenses - U.S. GAAP basis	$86,491		$82,948		$85,974		$338,459		$303,329
Adjustments:
Non-compensation expenses related to noncontrolling interests (15)	(2,057)		(1,750)		(2,081)		(7,733)		(8,546)
Restructuring and integration costs	(102)		(1,044)		(834)		(6,144)		(2,586)
Amortization of intangible assets related to acquisitions	(3,629)		(2,147)		(2,994)		(9,999)		(10,288)
Non-compensation expenses from acquisition-related agreements	-		-		(2,780)		-		(3,089)
Non-compensation expenses from regulatory settlements	-		-		(587)		-		3,045
Adjusted non-compensation expenses	$80,703		$78,007		$76,698		$314,583		$281,865
Income before income tax expense:
Income before income tax expense - U.S. GAAP basis	$188,763		$107,427		$82,129		$374,547		$218,412
Adjustments:
Investment (income)/loss related to noncontrolling interests (15)	(31,053)		(23,962)		14,476		(20,367)		15,128
Non-compensation expenses related to noncontrolling interests (15)	2,057		1,750		2,081		7,733		8,546
Compensation from acquisition-related agreements	8,966		7,928		15,529		32,658		48,727
Restructuring and integration costs	102		1,044		834		6,144		2,586
Amortization of intangible assets related to acquisitions	3,629		2,147		2,994		9,999		10,288
Non-compensation expenses from acquisition-related agreements	-		-		2,780		-		3,089
Non-compensation expenses from regulatory settlements	-		-		587		-		(3,045)
Adjusted operating income	$172,464		$96,334		$121,410		$410,714		$303,731
Income tax expense:
Income tax expense - U.S. GAAP basis	$45,799		$24,949		$29,627		$80,582		$60,972
Tax effect of adjustments:
Compensation from acquisition-related agreements	2,361		2,000		3,293		7,913		10,224
Restructuring and integration costs	43		266		126		1,497		590
Amortization of intangible assets related to acquisitions	982		562		741		2,650		2,675
Non-compensation expenses from acquisition-related agreements	-		-		715		-		797
Non-compensation expenses from regulatory settlements	-		-		152		-		248
Adjusted income tax expense	$49,185		$27,777		$34,654		$92,642		$75,506
Continued on next page

Piper Sandler Companies

Reconciliation of U.S. GAAP to Selected Summary Financial Information (1) (Unaudited)

	Three Months Ended						Twelve Months Ended
	Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,
(Amounts in thousands, except per share data)		2025		2025		2024		2025		2024
Net income attributable to Piper Sandler Companies:
Net income attributable to Piper Sandler Companies - U.S. GAAP basis	$113,968		$60,266		$69,059		$281,331		$181,114
Adjustments:
Compensation from acquisition-related agreements	6,605		5,928		12,236		24,745		38,503
Restructuring and integration costs	59		778		708		4,647		1,996
Amortization of intangible assets related to acquisitions	2,647		1,585		2,253		7,349		7,613
Non-compensation expenses from acquisition-related agreements	-		-		2,065		-		2,292
Non-compensation expenses from regulatory settlements	-		-		435		-		(3,293)
Adjusted net income	$123,279		$68,557		$86,756		$318,072		$228,225
Earnings per diluted common share:
Earnings per diluted common share - U.S. GAAP basis	$6.40		$3.38		$3.86		$15.82		$10.24
Adjustment for inclusion of unvested acquisition-related stock	(0.04)		(0.03)		(0.05)		(0.14)		(0.20)
	$6.36		$3.35		$3.81		$15.68		$10.04
Adjustments:
Compensation from acquisition-related agreements	0.37		0.34		0.68		1.39		2.17
Restructuring and integration costs	-		0.04		0.04		0.26		0.11
Amortization of intangible assets related to acquisitions	0.15		0.09		0.13		0.41		0.43
Non-compensation expenses from acquisition-related agreements	-		-		0.12		-		0.13
Non-compensation expenses from regulatory settlements	-		-		0.02		-		(0.19)
Adjusted earnings per diluted common share	$6.88		$3.82		$4.80		$17.74		$12.69
Weighted average diluted common shares outstanding:
Weighted average diluted common shares outstanding - U.S. GAAP basis	17,813		17,808		17,870		17,785		17,695
Adjustment:
Unvested acquisition-related restricted stock with service conditions	111		123		190		145		293
Adjusted weighted average diluted common shares outstanding	17,924		17,931		18,060		17,930		17,988

Piper Sandler Companies

Notes to Non-GAAP Financial Schedules

(1)Selected Summary Financial Information are non-GAAP measures. Management believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods.

(2)A non-GAAP measure which excludes investment (income)/loss related to noncontrolling interests (see (15) below).

(3)A non-GAAP measure which excludes compensation expenses from acquisition-related agreements.

(4)A non-GAAP measure which excludes (a) non-compensation expenses related to noncontrolling interests (see (15) below), (b) restructuring and integration costs related to acquisitions and/or headcount reductions, (c) amortization of intangible assets related to acquisitions, (d) non-compensation expenses from acquisition-related agreements and (e) non-compensation expenses from regulatory settlements regarding recordkeeping requirements for business-related communications.

(5)A non-GAAP measure which is computed as the summation of adjusted compensation and benefits and adjusted non-compensation expenses (see (3) and (4) above).

(6)A non-GAAP measure which excludes (a) investment (income)/loss and non-compensation expenses related to noncontrolling interests (see (15) below), (b) compensation and non-compensation expenses from acquisition-related agreements, (c) restructuring and integration costs related to acquisitions and/or headcount reductions, (d) amortization of intangible assets related to acquisitions and (e) non-compensation expenses from regulatory settlements regarding recordkeeping requirements for business-related communications.

(7)A non-GAAP measure which includes the income tax effect of the adjustments for (a) compensation and non-compensation expenses from acquisition-related agreements, (b) restructuring and integration costs related to acquisitions and/or headcount reductions, (c) amortization of intangible assets related to acquisitions and (d) non-compensation expenses from regulatory settlements regarding recordkeeping requirements for business-related communications.

(8)A non-GAAP measure which represents net income attributable to Piper Sandler Companies adjusted for (a) the exclusion of compensation and non-compensation expenses from acquisition-related agreements, (b) the exclusion of restructuring and integration costs related to acquisitions and/or headcount reductions, (c) the exclusion of amortization of intangible assets related to acquisitions, (d) the exclusion of non-compensation expenses from regulatory settlements regarding recordkeeping requirements for business-related communications and (e) the income tax impact allocated to the adjustments.

(9)A non-GAAP measure which is computed based on a quotient of which the numerator is adjusted net income and the denominator is adjusted weighted average diluted common shares outstanding.

(10)A non-GAAP measure which assumes the vesting of restricted stock with service conditions granted pursuant to all acquisitions since January 1, 2020.

(11)A non-GAAP measure which represents adjusted compensation and benefits expenses as a percentage of adjusted net revenues.

(12)A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenues.

(13)A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenues.

(14)A non-GAAP measure which represents adjusted income tax expense as a percentage of adjusted operating income.

(15)Noncontrolling interests include investment income/(loss) and non-compensation expenses from consolidated alternative asset management entities that are not attributable, either directly or indirectly, to Piper Sandler Companies.