Piper Sandler Companies: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 30 October 2026: press release. Guidance figures: 1 new, 1 kept. The quarter’s numbers.

Key takeaways

Net revenues fell from second quarter: Net revenues were $443.0 million, down 11% from the second quarter and 8% from a year earlier. Adjusted net revenues were $456.0 million, flat year over year. Source
Nine-month revenues set a record: Net revenues and adjusted net revenues for the first nine months were each about $1.4 billion, up 15% and 14%, with corporate investment banking revenues up 21%. Source
Corporate banking posted a third-quarter record: Corporate investment banking revenue was $307 million, a third-quarter record, led by financial services, healthcare, and energy, power and infrastructure groups. Source
Fixed income reached best quarter since 2021: Fixed income services revenue was $59.8 million, up 23% sequentially and 5% year over year, as the elevated interest rate environment drove client activity. Source
Investment result turned to a loss: GAAP investment result was a $13.5 million loss, against $14.1 million of income in the second quarter and $30.6 million of income a year earlier. Source
Pre-tax margin fell to 15.0%: Pre-tax margin was 15.0%, compared with 20.3% in the second quarter and 22.4% a year earlier, driven primarily by investment losses and higher non-compensation expenses. Source

“We delivered solid results for the third quarter, supported by 18% year-over-year growth in advisory services revenues and increased client activity in fixed income,”
Chad Abraham, chairman and chief executive officer

Guidance

Area	Period	Figure	Against last quarter
Quarterly dividend Source	Quarter ending December 2026, paid December 11, 2026	$0.20 per share	Kept
Share repurchases Source	October 30, 2026 through December 31, 2028	up to $200 million	New

What changed from last quarter

New: Launched equities trading in Europe through Piper Sandler Europe in September 2026, extending the U.S. equities franchise to European clients. Source
New: Established a London-based debt advisory team of four professionals, including one managing director, within energy, power and infrastructure investment banking. Source
New: Added a managing director to the private capital advisory group, focused on secondary capital advisory. Source

Results and growth drivers

Net revenues fell from second quarter: Net revenues were $443.0 million, down 11% from the second quarter and 8% from a year earlier. Adjusted net revenues were $456.0 million, flat year over year. Source
Nine-month revenues set a record: Net revenues and adjusted net revenues for the first nine months were each about $1.4 billion, up 15% and 14%, with corporate investment banking revenues up 21%. Source
Per-share earnings declined sequentially: GAAP net income attributable to the company was $55.4 million, or $0.78 per diluted share, compared with $0.95 in the second quarter. Adjusted diluted EPS was $0.87. Source

Corporate investment banking

Corporate banking posted a third-quarter record: Corporate investment banking revenue was $307 million, a third-quarter record, led by financial services, healthcare, and energy, power and infrastructure groups. Source
Advisory fees moved in opposite directions: Advisory services revenue was $250.3 million, down 9% from the second quarter on a lower average fee, and up 18% from a year earlier on a higher average fee. Source
Energy group produced a record advisory quarter: Financial services led advisory performance. The energy, power and infrastructure team had a record quarter, and healthcare made a solid contribution. Source
Corporate financing rose on fee per deal: Corporate financing revenue was $56.6 million, up 50% sequentially on higher revenue per deal, and down 29% from a year earlier on fewer completed transactions. Source
Municipal financing fell on higher rates: Municipal financing revenue was $24.8 million, down 50% from the second quarter and 36% from a year earlier, which management linked to higher interest rates. Source

“As we build on our record year-to-date revenues, we remain focused on supporting our clients across dynamic markets, finishing the year strong and continuing to return capital to our shareholders.”
Chad Abraham, chairman and chief executive officer

Institutional brokerage and fixed income

Fixed income reached best quarter since 2021: Fixed income services revenue was $59.8 million, up 23% sequentially and 5% year over year, as the elevated interest rate environment drove client activity. Source
Equity brokerage eased from second quarter: Equity brokerage revenue was $54.5 million, down 13% from the second quarter on lower client activity and flat year over year. Source
Institutional brokerage total edged up: Total institutional brokerage revenue was $114.3 million, up 2% from the second quarter and 3% from a year earlier. Source

Investment income and noncontrolling interests

Investment result turned to a loss: GAAP investment result was a $13.5 million loss, against $14.1 million of income in the second quarter and $30.6 million of income a year earlier. Source
Adjusted investment loss was much smaller: Adjusted investment loss was $0.6 million. The adjusted presentation excludes investment results attributable to noncontrolling interests in alternative asset funds. Source

Costs and compensation

Compensation ratio rose on lower revenue: GAAP compensation ratio was 64.7%, up from 62.3% in the second quarter. Management attributed the rise to lower net revenues and the investment loss tied to noncontrolling interests. Adjusted ratio was flat at 61.5%. Source
Non-compensation costs rose on office move: Non-compensation expenses were $89.8 million, up 4% sequentially and 8% year over year, driven by occupancy and equipment costs from the New York City office move. Source
Adjusted non-compensation costs grew: Adjusted non-compensation expenses were $85.3 million, up 4% from the second quarter and 9% from a year earlier. Adjusted operating expenses fell 5% sequentially to $365.7 million. Source

Margins and tax rate

Pre-tax margin fell to 15.0%: Pre-tax margin was 15.0%, compared with 20.3% in the second quarter and 22.4% a year earlier, driven primarily by investment losses and higher non-compensation expenses. Source
Adjusted operating margin declined: Adjusted operating margin was 19.8%, compared with 21.8% in the second quarter and 21.2% a year earlier. Adjusted operating income was $90.3 million. Source
GAAP tax rate lifted by noncontrolling losses: GAAP effective tax rate was 39.7%, raised by the net loss attributable to noncontrolling interests. The adjusted effective tax rate was 31.7%, up from 30.5%. Source

Capital and shareholder returns

Third-quarter repurchases at average price: The company repurchased 0.5 million shares, or $39.4 million including restricted award shares, at an average price of $74.59 per share. Source
Nine-month capital return total: Returned $268 million to shareholders in the first nine months through dividends and repurchases of 1.8 million shares. Year-to-date dividends paid were $128.2 million. Source
Equity and share count: Common shareholders' equity was $1,382.6 million, up from $1,372.7 million in June. Total shares outstanding were 70.6 million, against 71.1 million a year earlier. Source

Headcount and people

Managing director count held near 191: Corporate investment banking managing directors were 191, against 193 in June and 183 a year earlier. Full-time employees were 1,895, against 1,915 in June. Source

Coming up, as management said on 30 October 2026

Existing buyback authorization expires: The existing repurchase authorization has $20.3 million remaining and expires at year-end 2026. Source

Figures management reported

Figure	Reported
Completed M&A and restructuring transactions Source	61
Total completed advisory transactions Source	81
Total equity transactions priced Source	16
Total debt and preferred transactions priced Source	9
Municipal total issues priced Source	104
Municipal aggregate par value of issues priced Source	$3.6 billion
Equity shares traded Source	3.3 billion

Risks management discussed

Demand: Higher interest rates reduced municipal issuance, which management cited for the decline in municipal financing revenue. Source
Financial: Investment losses, including amounts tied to alternative asset funds, were cited as the main driver of the lower pre-tax margin. Source
Demand: Lower client activity reduced equity brokerage revenue from the prior quarter. Source
Operational: Higher legal and technology consulting fees raised outside services expense. Source
Financial: The effective tax rate was raised by the net loss attributable to noncontrolling interests. Source

Earlier plans management reported on

Not stated: Management said it intends to keep returning capital to shareholders through the rest of the year. Source

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 Third Quarter 2026 Results; Declares Quarterly Dividend of $0.20 Per Share;

Announces New Share Repurchase Authorization

MINNEAPOLIS - October 30, 2026 - Piper Sandler Companies (NYSE: PIPR), a leading investment bank, today announced its results for the third quarter of 2026.

"We delivered solid results for the third quarter, supported by 18% year-over-year growth in advisory services revenues and increased client activity in fixed income," said Chad Abraham, chairman and chief executive officer. "As we build on our record year-to-date revenues, we remain focused on supporting our clients across dynamic markets, finishing the year strong and continuing to return capital to our shareholders."

	Third Quarter 2026 Results
	U.S. GAAP							Adjusted (1)
(Dollars in millions, except per share data)	Q3			vs.		vs.			Q3			vs.		vs.
2026			Q2-26	Q3-25				2026			Q2-26	Q3-25
Net revenues		$443		-11%		-8%				$456		-7%		- %
Pre-tax margin	15.0%				-5.3pp		-7.4pp		19.8%				-2.0pp		-1.4pp
Net income attributable to Piper Sandler Companies		$55		-18%		-8%				$62		-17%		-10%
Earnings per diluted common share		$0.78		-18%		-8%				$0.87		-16%		-9%

(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 for the third quarter of 2026 were $443 million, and adjusted net revenues totaled $456 million.
Corporate investment banking generated record third quarter revenues of $307 million driven by strong results from our financial services, healthcare and energy, power & infrastructure groups.
Fixed income services activity was robust, generating revenues of $60 million, the best quarter since 2021.
For the first nine months of 2026, both net revenues and adjusted net revenues were a record, totaling $1.4 billion, an increase of 15% and 14%, respectively, over last year driven by 21% growth in corporate investment banking revenues.

Strategic Updates

In September 2026, we launched equities trading in Europe through Piper Sandler Europe, expanding our reach and bringing our leading U.S. equities franchise to European clients.

Talent

Established a London-based debt advisory team within our energy, power & infrastructure investment banking group consisting of four professionals, including one managing director, focused on advising infrastructure companies.
Continued to strengthen our private capital advisory group with the addition of a managing director focused on secondary capital advisory.

Capital

Declared a quarterly cash dividend of $0.20 per share of the company's common stock on October 30, 2026 to be paid on December 11, 2026 to shareholders of record as of November 24, 2026.
Authorized the repurchase of up to $200 million of the company's outstanding common stock, effective immediately, which will expire on December 31, 2028.
Returned an aggregate of $268 million to shareholders during the first nine months of 2026 through dividends paid and repurchases of 1.8 million shares of the company's common stock at an average price of $77.80 per share.

U.S. GAAP Selected Financial Data

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

	Three Months Ended															Nine Months Ended
(Dollars in thousands, except per share data)	Sept. 30,			June 30,			Sept. 30,			Change vs.						Sept. 30,			Sept. 30,
2026			2026			2025			Q2-26			Q3-25			2026			2025			Change
Revenues
Investment banking:
Advisory services	$250,258			$274,211			$211,544			-9%			18%			$775,431			$633,185			22%
Corporate financing	56,629			37,805			79,301			50%			-29%			167,749			146,608			14%
Municipal financing	24,793			49,511			38,501			-50%			-36%			98,217			106,811			-8%
Total investment banking	331,680			361,527			329,346			-8%			1%			1,041,397			886,604			17%
Institutional brokerage:
Equity brokerage	54,498			62,907			53,750			-13%			1%			177,875			166,087			7%
Fixed income services	59,778			48,625			56,982			23%			5%			158,778			161,034			-1%
Total institutional brokerage	114,276			111,532			110,732			2%			3%			336,653			327,121			3%
Interest income	11,241			9,104			9,374			23%			20%			31,991			27,284			17%
Investment income/(loss)	(13,545)			14,091			30,642				N/M			N/M		5,010			(3,784)				N/M
Total revenues	443,652			496,254			480,094			-11%			-8%			1,415,051			1,237,225			14%
Interest expense	605			739			818			-18%			-26%			2,080			3,899			-47%
Net revenues	443,047			495,515			479,276			-11%			-8%			1,412,971			1,233,326			15%
Non-interest expenses
Compensation and benefits	286,637			308,709			288,901			-7%			-1%			891,403			795,574			12%
Non-compensation expenses	89,777			86,371			82,948			4%			8%			266,569			251,968			6%
Total non-interest expenses	376,414			395,080			371,849			-5%			1%			1,157,972			1,047,542			11%
Income before income tax expense	66,633			100,435			107,427			-34%			-38%			254,999			185,784			37%
Income tax expense	26,475			30,338			24,949			-13%			6%			76,432			34,783			120%
Net income	$40,158			$70,097			$82,478			-43%			-51%			$178,567			$151,001			18%
Net income attributable to Piper Sandler Companies	$55,415			$67,845			$60,266			-18%			-8%			$188,502			$167,363			13%
Earnings per diluted common share	$0.78			$0.95			$0.85			-18%			-8%			$2.65			$2.35			13%
Ratios and margin
Compensation ratio		64.7%			62.3%			60.3%									63.1%			64.5%
Non-compensation ratio		20.3%			17.4%			17.3%									18.9%			20.4%
Pre-tax margin		15.0%			20.3%			22.4%									18.0%			15.1%
Effective tax rate		39.7%			30.2%			23.2%									30.0%			18.7%

N/M - Not meaningful

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

	Three Months Ended													Nine Months Ended
	Sept. 30,			June 30,			Sept. 30,			Change vs.				Sept. 30,			Sept. 30,
2026			2026			2025			Q2-26		Q3-25		2026			2025			Change
Advisory services
Completed M&A and restructuring transactions		61			67			60		-9%		2%			197			151		30%
Completed capital advisory transactions (1)		20			16			22		25%		-9%			61			57		7%
Total completed advisory transactions		81			83			82		-2%		-1%			258			208		24%
Corporate financings
Total equity transactions priced		16			21			23		-24%		-30%			63			54		17%
Book run equity transactions priced		14			17			21		-18%		-33%			57			44		30%
Total debt and preferred transactions priced		9			7			15		29%		-40%			26			37		-30%
Book run debt and preferred transactions priced		-			2			8		-100%		-100%			9			24		-63%
Municipal negotiated issues
Aggregate par value of issues priced (in billions)	$3.6			$5.1			$5.7			-29%		-37%		$11.9			$14.7			-19%
Total issues priced		104			145			133		-28%		-22%			347			404		-14%
Equity brokerage
Number of shares traded (in billions)		3.3			3.4			2.7		-3%		22%			9.9			8.5		16%

(1)Includes debt capital markets advisory transactions and equity and debt private placements.

NET REVENUES

For the third quarter of 2026, net revenues of $443.0 million decreased 11% compared to the second quarter of 2026 and 8% compared to the third quarter of 2025.

Investment banking revenues of $331.7 million for the third quarter of 2026 decreased 8% compared to the second quarter of 2026 and were essentially flat compared to the third quarter of 2025.

Advisory services revenues of $250.3 million for the third quarter of 2026 decreased 9% compared to the second quarter of 2026 driven by a lower average fee, but increased 18% compared to the third quarter of 2025 resulting from a higher average fee. Performance was led by our financial services group and our energy, power & infrastructure team, which generated a record quarter, and included a solid contribution from our healthcare franchise.
Corporate financing revenues of $56.6 million for the third quarter of 2026 increased 50% compared to the second quarter of 2026 as higher revenue per deal more than offset a decline in completed financings. Corporate financing revenues decreased 29% compared to the strong third quarter of 2025 driven primarily by fewer completed transactions. Our performance during the quarter was centered around capital raising activity for our healthcare and financial services clients.
Municipal financing revenues of $24.8 million for the third quarter of 2026 decreased 50% compared to the second quarter of 2026 and 36% compared to the third quarter of 2025 as higher interest rates negatively impacted issuance activity.

Institutional brokerage revenues of $114.3 million for the third quarter of 2026 increased 2% compared to the second quarter of 2026 and 3% compared to the third quarter of 2025.

Equity brokerage revenues of $54.5 million for the third quarter of 2026 decreased 13% compared to the strong second quarter of 2026 resulting from lower client activity, but revenues were flat compared to the third quarter of 2025.
Fixed income services revenues of $59.8 million for the third quarter of 2026 increased 23% compared to the second quarter of 2026 and 5% compared to the third quarter of 2025 as the elevated interest rate environment drove increased client activity.

Investment income/(loss) for the third quarter of 2026 was a loss of $13.5 million compared to income of $14.1 million for the second quarter of 2026 and income of $30.6 million for the third quarter of 2025. 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 third quarter of 2026, non-interest expenses of $376.4 million decreased 5% compared to the second quarter of 2026 and were essentially flat compared to the third quarter of 2025.

Compensation ratio of 64.7% for the third quarter of 2026 was higher compared to 62.3% for the second quarter of 2026 and 60.3% for the third quarter of 2025 resulting from lower net revenues, which was exacerbated by the investment loss attributable to noncontrolling interests.
Non-compensation expenses of $89.8 million for the third quarter of 2026 increased 4% compared to the second quarter of 2026 and 8% compared to the third quarter of 2025. Non-compensation expenses were higher during the current quarter primarily due to incremental occupancy and equipment costs in connection with our New York City office move and increased outside services expenses resulting from higher legal fees as well as increased professional fees associated with technology consulting services.

PRE-TAX INCOME

For the third quarter of 2026, we recorded pre-tax income of $66.6 million compared to $100.4 million for the second quarter of 2026 and $107.4 million for the third quarter of 2025.

Pre-tax margin of 15.0% for the third quarter of 2026 declined compared to 20.3% for the second quarter of 2026 and 22.4% for the third quarter of 2025 driven primarily by losses on our investments, including amounts attributable to noncontrolling interests in the alternative asset funds we manage. In addition, pre-tax margin for the current quarter was impacted by higher non-compensation expenses.

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 third quarter of 2026, the effective tax rate of 39.7% was elevated due to the net loss attributable to noncontrolling interests. The effective tax rate for the second quarter of 2026 was 30.2%. For the third quarter of 2025, the effective tax rate of 23.2% was impacted by the higher net income attributable to noncontrolling interests.

NET INCOME & EARNINGS PER SHARE

For the third quarter of 2026, we generated net income of $55.4 million, or $0.78 per diluted common share.

Results for the current quarter decreased compared to net income of $67.8 million, or $0.95 per diluted common share, for the second quarter of 2026 and net income of $60.3 million, or $0.85 per diluted common share, for the third quarter of 2025 resulting from lower net revenues, a decreased pre-tax margin and a higher effective tax rate.

Non-GAAP Selected Financial Data

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

	Three Months Ended															Nine Months Ended
(Dollars in thousands, except per share data)	Sept. 30,			June 30,			Sept. 30,			Change vs.						Sept. 30,			Sept. 30,
2026			2026			2025			Q2-26			Q3-25			2026			2025			Change
Adjusted revenues
Investment banking:
Advisory services	$250,258			$274,211			$211,544			-9%			18%			$775,431			$633,185			22%
Corporate financing	56,629			37,805			79,301			50%			-29%			167,749			146,608			14%
Municipal financing	24,793			49,511			38,501			-50%			-36%			98,217			106,811			-8%
Total investment banking	331,680			361,527			329,346			-8%			1%			1,041,397			886,604			17%
Institutional brokerage:
Equity brokerage	54,498			62,907			53,750			-13%			1%			177,875			166,087			7%
Fixed income services	59,778			48,625			56,982			23%			5%			158,778			161,034			-1%
Total institutional brokerage	114,276			111,532			110,732			2%			3%			336,653			327,121			3%
Interest income	11,241			9,104			9,374			23%			20%			31,991			27,284			17%
Investment income/(loss)	(556)			9,712			6,680				N/M			N/M		8,755			6,902			27%
Adjusted total revenues	456,641			491,875			456,132			-7%			- %			1,418,796			1,247,911			14%
Interest expense	605			739			818			-18%			-26%			2,080			3,899			-47%
Adjusted net revenues	456,036			491,136			455,314			-7%			- %			1,416,716			1,244,012			14%
Adjusted operating expenses
Adjusted compensation and benefits	280,462			302,048			280,973			-7%			- %			871,749			771,882			13%
Adjusted non-compensation expenses	85,265			81,998			78,007			4%			9%			253,707			233,880			8%
Adjusted total operating expenses	365,727			384,046			358,980			-5%			2%			1,125,456			1,005,762			12%
Adjusted operating income	90,309			107,090			96,334			-16%			-6%			291,260			238,250			22%
Adjusted income tax expense	28,628			32,621			27,777			-12%			3%			83,176			43,457			91%
Adjusted net income	$61,681			$74,469			$68,557			-17%			-10%			$208,084			$194,793			7%
Adjusted earnings per diluted common share	$0.87			$1.04			$0.96			-16%			-9%			$2.91			$2.72			7%
Adjusted ratios and margin
Adjusted compensation ratio		61.5%			61.5%			61.7%									61.5%			62.0%
Adjusted non-compensation ratio		18.7%			16.7%			17.1%									17.9%			18.8%
Adjusted operating margin		19.8%			21.8%			21.2%									20.6%			19.2%
Adjusted effective tax rate		31.7%			30.5%			28.8%									28.6%			18.2%

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 third quarter of 2026, adjusted net revenues of $456.0 million decreased 7% compared to the second quarter of 2026 driven by lower municipal financing, advisory services and equity brokerage revenues which were offset in part by increased corporate financing and fixed income services revenues. Adjusted net revenues were modestly higher compared to the third quarter of 2025, as increased advisory services revenues were offset by lower corporate and municipal financing activity.

ADJUSTED OPERATING EXPENSES

For the third quarter of 2026, adjusted operating expenses of $365.7 million decreased 5% compared to the second quarter of 2026 and increased 2% compared to the third quarter of 2025.

Adjusted compensation ratio of 61.5% for the third quarter of 2026 was flat compared to the second quarter of 2026 and declined compared to 61.7% for the third quarter of 2025.
Adjusted non-compensation expenses of $85.3 million for the third quarter of 2026 increased 4% compared to the second quarter of 2026 and 9% compared to the third quarter of 2025. Adjusted non-compensation expenses were higher during the current quarter primarily due to incremental occupancy and equipment costs in connection with our New York City office move and increased outside services expenses resulting from higher legal fees as well as increased professional fees associated with technology consulting services.

ADJUSTED OPERATING INCOME

For the third quarter of 2026, adjusted operating income of $90.3 million decreased 16% compared to the second quarter of 2026 and 6% compared to the third quarter of 2025.

Adjusted operating margin of 19.8% for the third quarter of 2026 decreased compared to 21.8% for the second quarter of 2026 resulting primarily from lower adjusted net revenues. Adjusted operating margin decreased compared to 21.2% for the third quarter of 2025 primarily due to increased adjusted non-compensation expenses.

ADJUSTED EFFECTIVE TAX RATE

For the third quarter of 2026, our adjusted effective tax rate was 31.7%, compared to 30.5% for the second quarter of 2026 and 28.8% for the third quarter of 2025.

ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE

For the third quarter of 2026, we generated adjusted net income of $61.7 million, or $0.87 of adjusted earnings per diluted common share.

Results for the current quarter decreased compared to adjusted net income of $74.5 million, or $1.04 of adjusted earnings per diluted common share, for the second quarter of 2026 resulting primarily from lower adjusted net revenues, higher adjusted non-compensation expenses and a higher adjusted effective tax rate. Results for the current quarter decreased compared to adjusted net income of $68.6 million, or $0.96 of adjusted earnings per diluted common share, for the third quarter of 2025 resulting primarily from higher adjusted non-compensation expenses and a higher adjusted effective tax rate.

Capital

DIVIDENDS

On October 30, 2026, our Board of Directors declared a quarterly cash dividend on the company's common stock of $0.20 per share. This dividend will be paid on December 11, 2026, to shareholders of record as of the close of business on November 24, 2026.

During the third quarter of 2026, we paid a quarterly cash dividend of $0.20 per share of common stock, for an aggregate of $13.6 million.

During the first nine months of 2026, we paid quarterly cash dividends of $0.575 per share of common stock and a special cash dividend of $1.25 per share of common stock, which was paid in the first quarter of 2026. Total dividends paid year-to-date, including accrued forfeitable dividends paid on restricted stock awards that vested, were $128.2 million.

SHARE REPURCHASES

On October 30, 2026, our Board of Directors authorized the repurchase of up to $200 million of the company's outstanding common stock. This authorization is effective immediately and will expire on December 31, 2028. The share repurchase program will be used as part of our capital allocation strategy, which includes returning capital to our shareholders, and to offset the dilutive effect of employee equity-based compensation. Our existing share repurchase authorization has $20.3 million remaining and will expire on December 31, 2026.

During the third quarter of 2026, we repurchased 0.5 million shares of the company's common stock, at an average price of $74.53 per share, pursuant to our existing share repurchase authorization. We also repurchased 23 thousand shares of the company's common stock, at an average price of $75.91 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. The aggregate amount of 0.5 million shares, or $39.4 million of the company's common stock, were repurchased at an average price of $74.59 per share.

During the first nine months of 2026, we repurchased 1.3 million shares of the company's common stock, at an average price of $76.94 per share, pursuant to our existing share repurchase authorization. We also repurchased 0.5 million shares of the company's common stock, at an average price of $80.10 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. The aggregate amount of 1.8 million shares, or $140.3 million of the company's common stock, were repurchased at an average price of $77.80 per share.

Additional Information

	Sept. 30,		June 30,		Sept. 30,
	2026		2026		2025
Human Capital
Full-time employees		1,895		1,915		1,836
Corporate investment banking managing directors		191		193		183
Shareholder Information (amounts in millions)
Common shareholders’ equity	$1,382.6		$1,372.7		$1,282.8
Shares outstanding:
Common shares outstanding		67.1		67.5		66.9
Restricted shares outstanding		3.5		3.5		4.2
Total shares outstanding		70.6		71.0		71.1

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, October 30, 2026, at 9:00 a.m. Eastern Time (8:00 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 7198633. 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 Piper Sandler Europe SAS, an investment firm authorized by the Autorité de contrôle prudentiel et de résolution and regulated by the Autorité des marchés financiers, and 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 (e.g., M&A, debt capital markets advisory, private capital advisory), 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; 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 programs; 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;
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;
our ability to effect the repurchase program depends in part upon our results of operations and profitability and may be impacted by negative operating conditions, and an inability to access capital readily or on terms favorable to us could impair our ability to effect the repurchase program; 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, 2025 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, 2025, 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					Nine Months Ended
(Amounts in thousands, except per share data)	Sept. 30,		June 30,		Sept. 30,		Sept. 30,		Sept. 30,
2026		2026		2025		2026		2025
Revenues
Investment banking	$331,680		$361,527		$329,346		$1,041,397		$886,604
Institutional brokerage	114,276		111,532		110,732		336,653		327,121
Interest income	11,241		9,104		9,374		31,991		27,284
Investment income/(loss)	(13,545)		14,091		30,642		5,010		(3,784)
Total revenues	443,652		496,254		480,094		1,415,051		1,237,225
Interest expense	605		739		818		2,080		3,899
Net revenues	443,047		495,515		479,276		1,412,971		1,233,326
Non-interest expenses
Compensation and benefits	286,637		308,709		288,901		891,403		795,574
Occupancy and equipment	22,426		19,612		19,448		60,103		55,117
Outside services	17,445		16,776		14,626		47,938		51,017
Communications	15,564		15,885		14,852		46,359		45,237
Marketing and business development	14,855		15,883		12,385		45,889		41,127
Trade execution and clearance	6,179		5,414		4,775		16,630		14,650
Restructuring and integration costs	-		-		1,044		-		6,042
Intangible asset amortization	2,057		2,058		2,147		6,172		6,370
Other operating expenses	11,251		10,743		13,671		43,478		32,408
Total non-interest expenses	376,414		395,080		371,849		1,157,972		1,047,542
Income before income tax expense	66,633		100,435		107,427		254,999		185,784
Income tax expense	26,475		30,338		24,949		76,432		34,783
Net income	40,158		70,097		82,478		178,567		151,001
Net income/(loss) attributable to noncontrolling interests	(15,257)		2,252		22,212		(9,935)		(16,362)
Net income attributable to Piper Sandler Companies	$55,415		$67,845		$60,266		$188,502		$167,363
Earnings per common share
Basic	$0.82		$1.00		$0.90		$2.79		$2.52
Diluted	$0.78		$0.95		$0.85		$2.65		$2.35
Dividends declared per common share	$0.20		$0.20		$0.18		$1.83		$1.25
Weighted average common shares outstanding
Basic	67,257		67,698		66,862		67,596		66,401
Diluted	70,667		71,241		71,232		71,045		71,100

Piper Sandler Companies

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

	Three Months Ended						Nine Months Ended
	Sept. 30,		June 30,		Sept. 30,		Sept. 30,		Sept. 30,
(Amounts in thousands, except per share data)		2026		2026		2025		2026		2025
Adjusted revenues
Investment banking	$331,680		$361,527		$329,346		$1,041,397		$886,604
Institutional brokerage	114,276		111,532		110,732		336,653		327,121
Interest income	11,241		9,104		9,374		31,991		27,284
Investment income/(loss)	(556)		9,712		6,680		8,755		6,902
Adjusted total revenues	456,641		491,875		456,132		1,418,796		1,247,911
Interest expense	605		739		818		2,080		3,899
Adjusted net revenues (2)	456,036		491,136		455,314		1,416,716		1,244,012
Adjusted operating expenses
Adjusted compensation and benefits (3)	280,462		302,048		280,973		871,749		771,882
Adjusted non-compensation expenses (4)	85,265		81,998		78,007		253,707		233,880
Adjusted total operating expenses (5)	365,727		384,046		358,980		1,125,456		1,005,762
Adjusted operating income (6)	90,309			107,090	96,334		291,260		238,250
Adjusted income tax expense (7)	28,628			32,621	27,777		83,176		43,457
Adjusted net income (8)	$61,681			$74,469	$68,557		$208,084		$194,793
Adjusted earnings per diluted common share (9)	$0.87		$1.04		$0.96		$2.91		$2.72
Adjusted weighted average diluted common shares outstanding (10)	70,991		71,594		71,723		71,405		71,727
Adjusted ratios and margin
Adjusted compensation ratio (11)		61.5%		61.5%		61.7%		61.5%		62.0%
Adjusted non-compensation ratio (12)		18.7%		16.7%		17.1%		17.9%		18.8%
Adjusted operating margin (13)		19.8%		21.8%		21.2%		20.6%		19.2%
Adjusted effective tax rate (14)		31.7%		30.5%		28.8%		28.6%		18.2%

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						Nine Months Ended
	Sept. 30,		June 30,		Sept. 30,		Sept. 30,		Sept. 30,
(Amounts in thousands, except per share data)		2026		2026		2025		2026		2025
Net revenues:
Net revenues - U.S. GAAP basis	$443,047		$495,515		$479,276		$1,412,971		$1,233,326
Adjustment:
Investment (income)/loss related to noncontrolling interests (15)	12,989		(4,379)		(23,962)		3,745		10,686
Adjusted net revenues	$456,036		$491,136		$455,314		$1,416,716		$1,244,012
Compensation and benefits:
Compensation and benefits - U.S. GAAP basis	$286,637		$308,709		$288,901		$891,403		$795,574
Adjustment:
Compensation from acquisition-related agreements	(6,175)		(6,661)		(7,928)		(19,654)		(23,692)
Adjusted compensation and benefits	$280,462		$302,048		$280,973		$871,749		$771,882
Non-compensation expenses:
Non-compensation expenses - U.S. GAAP basis	$89,777		$86,371		$82,948		$266,569		$251,968
Adjustments:
Non-compensation expenses related to noncontrolling interests (15)	(2,268)		(2,127)		(1,750)		(6,190)		(5,676)
Restructuring and integration costs	-		-		(1,044)		-		(6,042)
Amortization of intangible assets related to acquisitions	(2,057)		(2,058)		(2,147)		(6,172)		(6,370)
Non-compensation expenses from acquisition-related agreements	(187)		(188)		-		(500)		-
Adjusted non-compensation expenses	$85,265		$81,998		$78,007		$253,707		$233,880
Income before income tax expense:
Income before income tax expense - U.S. GAAP basis	$66,633		$100,435		$107,427		$254,999		$185,784
Adjustments:
Investment (income)/loss related to noncontrolling interests (15)	12,989		(4,379)		(23,962)		3,745		10,686
Non-compensation expenses related to noncontrolling interests (15)	2,268		2,127		1,750		6,190		5,676
Compensation from acquisition-related agreements	6,175		6,661		7,928		19,654		23,692
Restructuring and integration costs	-		-		1,044		-		6,042
Amortization of intangible assets related to acquisitions	2,057		2,058		2,147		6,172		6,370
Non-compensation expenses from acquisition-related agreements	187		188		-		500		-
Adjusted operating income	$90,309		$107,090		$96,334		$291,260		$238,250
Income tax expense:
Income tax expense - U.S. GAAP basis	$26,475		$30,338		$24,949		$76,432		$34,783
Tax effect of adjustments:
Compensation from acquisition-related agreements	1,558		1,688		2,000		4,976		5,552
Restructuring and integration costs	-		-		266		-		1,454
Amortization of intangible assets related to acquisitions	545		545		562		1,635		1,668
Non-compensation expenses from acquisition-related agreements	50		50		-		133		-
Adjusted income tax expense	$28,628		$32,621		$27,777		$83,176		$43,457
Continued on next page

Piper Sandler Companies

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

	Three Months Ended						Nine Months Ended
	Sept. 30,		June 30,		Sept. 30,		Sept. 30,		Sept. 30,
(Amounts in thousands, except per share data)		2026		2026		2025		2026		2025
Net income attributable to Piper Sandler Companies:
Net income attributable to Piper Sandler Companies - U.S. GAAP basis	$55,415		$67,845		$60,266		$188,502		$167,363
Adjustments:
Compensation from acquisition-related agreements	4,617		4,973		5,928		14,678		18,140
Restructuring and integration costs	-		-		778		-		4,588
Amortization of intangible assets related to acquisitions	1,512		1,513		1,585		4,537		4,702
Non-compensation expenses from acquisition-related agreements	137		138		-		367		-
Adjusted net income	$61,681		$74,469		$68,557		$208,084		$194,793
Earnings per diluted common share:
Earnings per diluted common share - U.S. GAAP basis	$0.78		$0.95		$0.85		$2.65		$2.35
Adjustment for inclusion of unvested acquisition-related stock	-		-		(0.01)		(0.01)		(0.03)
	$0.78		$0.95		$0.84		$2.64		$2.32
Adjustments:
Compensation from acquisition-related agreements	0.07		0.07		0.09		0.21		0.27
Restructuring and integration costs	-		-		0.01		-		0.07
Amortization of intangible assets related to acquisitions	0.02		0.02		0.02		0.06		0.06
Non-compensation expenses from acquisition-related agreements	-		-		-		-		-
Adjusted earnings per diluted common share	$0.87		$1.04		$0.96		$2.91		$2.72
Weighted average diluted common shares outstanding:
Weighted average diluted common shares outstanding - U.S. GAAP basis	70,667		71,241		71,232		71,045		71,100
Adjustment:
Unvested acquisition-related restricted stock with service conditions	324		353		491		360		627
Adjusted weighted average diluted common shares outstanding	70,991		71,594		71,723		71,405		71,727

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 and (d) non-compensation expenses from acquisition-related agreements.

(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 and (d) amortization of intangible assets related to acquisitions.

(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 and (c) amortization of intangible assets related to acquisitions.

(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 and (d) 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 acquisition-related restricted stock with service conditions.

(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.