Oppenheimer Capital Markets Revenue Jumps 46% on Advisory Surge

The Tip Desk · July 31, 2026 · 2 min read

Revenue rose 21.9% year-over-year to $454.9 million as investment banking fees surged.

Capital markets activity drove the second-quarter results for Oppenheimer Holdings (OPY), the investment banking and wealth management firm. Revenue for the segment grew 45.7% year-over-year to $179.2 million, shifting the unit to a pre-tax profit of $22.5 million from a pre-tax loss of $3.9 million in the prior-year period.

Investment banking advisory fees increased 158.5% year-over-year, supported by a higher volume of closings and larger fees from transactions within the financial institutions sector. Equities underwriting fees also rose 46.0% year-over-year, led by activity in the healthcare sector. These gains offset a 20.9% year-over-year decline in fixed income underwriting fees, which the company attributed to lower sovereign issuance volumes.

Wealth management revenue increased 10.7% year-over-year to $272.7 million, though pre-tax income for the segment fell 11.4% year-over-year to $55.7 million. Advisory fees grew 15.9% year-over-year as assets under management reached a record $59.4 billion, up from $52.8 billion in the second quarter of 2025. Assets under administration also hit a record $154.7 billion at June 30, compared to $138.4 billion a year earlier.

Lower short-term interest rates impacted the wealth management unit's margins. Bank deposit sweep income decreased by $3.7 million year-over-year.

Operating costs rose alongside revenue. Compensation expenses increased 24.4% year-over-year, driven by higher production costs and a $24.9 million stock appreciation rights expense, compared to $8.3 million in the second quarter of 2025.

Regulatory net capital rose to $444.8 million from $408.9 million in the prior-year period. Book value per share increased to $91.84 from $85.27, while tangible book value per share rose to $75.19 from $68.25. The company increased its quarterly dividend by 11.1% to $0.20 per share.

Oppenheimer recorded a $70 million pre-tax legal accrual in the first quarter for the settlement of cash sweep litigation. The company excluded this amount from adjusted net income for the first half of 2024.