A full-service investment bank and brokerage that advises wealthy families and businesses, offering wealth management, trading, and investment banking. Its roots trace to Fahnestock & Co., founded at Two Wall Street in 1881, yet it carries the name of Max Oppenheimer, a Jewish refugee from Nazi Germany who launched Oppenheimer & Co. in 1950. When Fahnestock bought the Oppenheimer brand's U.S. operations in 2003, it renamed itself after that storied name.
Capital Markets swung to a $22.5M profit as Q2 revenue rose 21.9% to $454.9M
Capital Markets returned to profit after a year of losses. rose 21.9% to $454.9M and rose 24.6% to $2.38 as investment banking fees climbed 87.9%, while Wealth Management profit fell on a $24.9M share-price charge. The business is growing, but a $70M settlement payment left negative.
Key takeaways
Capital Markets pre-tax income swung to a $22.5M profit from a $3.9M loss a year earlier, driven by a 45.7% increase and an 87.9% rise in investment banking fees including a 158.5% increase in advisory fees.
Reported was $27.4M, or $2.38 , but excluding a $24.9M charge was $45.7M, or $4.27 per share.
Wealth Management rose 10.7% and advisory fees grew 15.9% on record of $59.4B, yet its pre-tax income fell 11.4% to $55.7M as compensation rose 24.4% from the share-price-linked charge.
Section summaries
Management's Discussion and Analysis
Revenue rose 22% to $455M on strong investment banking and wealth management, but reported net income was pressured by $25M in stock appreciation rights expense.
⌄
Total increased 21.9% to $454.9M, driven by a 45.7% surge in Capital Markets revenue and a 10.7% rise in Wealth Management revenue.
Bank deposit sweep income declined 12.9% on lower short-term rates, continuing the multi-period slide flagged in prior filings.
was negative at -$55.0M after a $70M litigation settlement payment was made into escrow; the company held $350M in and $115.9M in of company-owned life insurance.
The $70M Advantage Bank Deposit class action settlement received preliminary court approval in May 2026 with final hearing set for September 17, 2026, and up to $3M additional loss is estimated for other proceedings.
What changed
The Capital Markets pre-tax result reversed from a $3.9M loss in Q2 2025 to a $22.5M profit in Q2 2026, answering the prior flag on profit sustainability after the Q3 2025 swing to profit.
The Advantage Bank Deposit program class action settled for $70M and was funded into escrow in June 2026, resolving the trial-risk flag from the FY2025 10-K; the Georgia Supreme Court had ended Horizon appeals in September 2025.
Bank deposit sweep income fell another 12.9% in Q2 2026, extending the consecutive declines flagged since FY2024 as rates and balances stayed lower.
Wealth Management pre-tax income fell 11.4% despite higher , continuing the compression seen in Q1 2026 (down 35.8%) from expense tied to the rising share price.
remained $0.0 after the FY2024 note redemption, and rose to $996.7M, up 11.1% .
What to watch
Final court approval of the $70M ABD settlement at the September 17, 2026 hearing and any escrow release.
Capital Markets pre-tax profit in Q3 2026 after the 45.7% rise and 87.9% investment banking fee increase this quarter.
Wealth Management pre-tax income as the expense develops with the share price next quarter.
Bank deposit sweep income in Q3 2026 after the 12.9% Q2 decline to see if the lower-rate continues.
Capital Markets pre-tax income swung to a $22.5M profit from a $3.9M loss, fueled by an 87.9% jump in investment banking fees, particularly a 158.5% increase in advisory fees.
Wealth Management pre-tax income fell 11.4% to $55.7M despite higher , as compensation expenses rose 24.4% due to a $24.9M charge for tied to the company's share price.
Advisory fee grew 15.9% on record of $59.4B, while bank deposit sweep income declined 12.9% due to lower short-term interest rates.
Reported for the quarter was $27.4M, or $2.55 per share, but adjusted net income, which excludes the expense, was $45.7M, or $4.27 per share.
Liquidity remains strong with $350M in and $115.9M in of company-owned life insurance, though was negative due to a $70M litigation settlement payment.
Quantitative and Qualitative Disclosures About Market Risk
During the six months ended June 30, 2026, there were no material changes to the information contained in Part II, Item 7A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. 56 Table of Contents
⌄
During the six months ended June 30, 2026, there were no material changes to the information contained in Part II, Item 7A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
56
Table of Contents
Oppenheimer settled a class action over low interest rates on bank deposits for $70 million, pending final court approval.
⌄
A alleged Oppenheimer paid unreasonably low interest on customer cash in the Advantage Bank Deposit (ABD) program.
The court dismissed Oppenheimer Holdings Inc. and Oppenheimer Asset Management Inc., leaving Oppenheimer & Co. Inc. as the defendant.
The court granted on claims for breach of contract and implied of good faith and fair dealing.
In April 2026, the parties agreed to a $70 million settlement with no admission of liability, and the court granted preliminary approval in May 2026.
Oppenheimer deposited the $70 million into escrow in June 2026, with a final approval hearing set for September 17, 2026.
The company estimates up to $3 million in aggregate possible loss above accruals for other proceedings, but cannot estimate losses for certain early-stage or indeterminate matters.
During the three months ended June 30, 2026, there were no material changes to the information contained in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
⌄
During the three months ended June 30, 2026, there were no material changes to the information contained in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.