What changed in this filing

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Item 1. Financial Statements

2024-10-25 compared with 2024-07-26 · 176 added, 203 removed, 1049 unchanged (27% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(Expressed in thousands, except number of shares and per share amounts) June 30, 2024 December 31, 2023

(Expressed in thousands, except number of shares and per share amounts) September 30, 2024 December 31, 2023

Cash and cash equivalents $ 32,242 $ 28,835

37 unchanged sentences

shares issued and outstanding:

10,227,845 and 10,186,783 as of June 30, 2024 and December 31, 2023, respectively

10,231,736 and 10,186,783 as of September 30, 2024 and December 31, 2023, respectively

shares authorized, issued and outstanding:

99,665 as of June 30, 2024 and December 31, 2023

99,665 as of September 30, 2024 and December 31, 2023

Additional paid-in capital 26,519 31,774

Retained earnings 811,092 756,468

Accumulated other comprehensive income (loss) ( 54 ) 914

Accumulated other comprehensive income 217 914

Total Oppenheimer Holdings Inc.

7 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

(Expressed in thousands, except number of shares and per share amounts) 2024 2023 2024 2023

14 unchanged sentences

Total expenses 337,982 291,080 968,389 911,598

Pre-tax income (loss) 15,865 ( 11,699 ) 53,320 7,350

Income tax provision (benefit) 5,599 ( 2,131 ) 17,310 2,454

Net income (loss) $ 10,266 $ ( 9,568 ) $ 36,010 $ 4,896

Pre-tax income 35,370 21,587 88,690 28,938

Income tax provision 10,862 7,808 28,172 10,262

Net income $ 24,508 $ 13,779 $ 60,518 $ 18,676

Net loss attributable to noncontrolling interest, net of tax — ( 82 ) ( 310 ) ( 403 )

Net income (loss) attributable to Oppenheimer Holdings Inc.

Net income attributable to Oppenheimer Holdings Inc.

$ 24,508 $ 13,861 $ 60,828 $ 19,079

Earnings (loss) per share attributable to Oppenheimer Holdings Inc.

Earnings per share attributable to Oppenheimer Holdings Inc.

Basic $ 2.38 $ 1.32 $ 5.87 $ 1.75

8 unchanged sentences

For the Three Months Ended

For the Six Months Ended

September 30,

For the Nine Months Ended

September 30,

(Expressed in thousands) 2024 2023 2024 2023

Net income (loss) $ 10,266 $ ( 9,568 ) $ 36,010 $ 4,896

Other comprehensive loss, net of tax

Net income $ 24,508 $ 13,779 $ 60,518 $ 18,676

Other comprehensive income (loss), net of tax

Currency translation adjustment 271 ( 580 ) ( 697 ) ( 1,740 )

Comprehensive income (loss) $ 9,686 $ ( 10,231 ) 35,043 3,736

Comprehensive income $ 24,779 $ 13,199 59,821 16,936

Less net loss attributable to noncontrolling interests — ( 82 ) ( 310 ) ( 403 )

Comprehensive income (loss) attributable to Oppenheimer Holdings Inc.

Comprehensive income attributable to Oppenheimer Holdings Inc.

$ 24,779 $ 13,281 $ 60,131 $ 17,339

3 unchanged sentences

For the Three Months Ended

For the Six Months Ended

September 30,

For the Nine Months Ended

September 30,

(Expressed in thousands, except per share amount) 2024 2023 2024 2023

15 unchanged sentences

Repurchase of Class A non-voting common stock for cancellation ( 295 ) ( 23,956 ) ( 1,219 ) ( 27,555 )

Net income (loss) (1)

Net income (1)

24,508 13,861 60,828 19,079

24 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

FOR THE SIX MONTHS ENDED JUNE 30,

FOR THE NINE MONTHS ENDED SEPTEMBER 30,

(Expressed in thousands) 2024 2023

39 unchanged sentences

Cash dividends paid on Class A non-voting and Class B voting common stock ( 4,985 ) ( 4,904 )

Issuance of Class A non-voting common stock 64 54

Repurchase of Class A non-voting common stock for cancellation ( 9,603 ) ( 31,241 )

25 unchanged sentences

The Company is headquartered in New York and has 89 retail branch offices in 25 states located throughout the United States and offices in Puerto Rico, Tel Aviv, Israel, Hong Kong, China, London, England, St.

Helier, Isle of Jersey, Portugal and Geneva, Switzerland.

Helier, Isle of Jersey, and Geneva, Switzerland.

The principal subsidiaries of OPY are Oppenheimer & Co.

4 unchanged sentences

OPY Credit Corp., which conducts secondary trading activities related to the purchase and sale of loans, primarily on a riskless principal basis;

Oppenheimer Europe Ltd., based in the United Kingdom, with offices in the Isle of Jersey, Portugal, and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority;

Oppenheimer Europe Ltd., based in the United Kingdom, with offices in the Isle of Jersey, and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority;

and Oppenheimer Investments Asia Limited, based in Hong Kong, China, which provides fixed income and equities brokerage services to institutional investors and is regulated by the Securities and Futures Commission.

13 unchanged sentences

Although these estimates are based on management's knowledge of current events and actions that the Company may undertake in the future, actual results may differ materially from the estimates.

The condensed consolidated results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any future interim or annual period.

The condensed consolidated results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for any future interim or annual period.

Oppenheimer Acquisition Corp.

2 unchanged sentences

OPY Acquisition LLC I (the “Sponsor”), a Delaware series limited liability company and the Company’s subsidiary, was the sponsor of and consolidated OHAA.

Upon IPO completion, funds totaling $ 127.8 million, including proceeds from the OHAA IPO of $ 126.5 million and $ 1.3 million investment from the Sponsor, were held in a trust account until the earlier of (i) the completion of a Business Combination or (ii) ten business days after April 29, 2023, 18 months from the closing of the OHAA IPO (“Combination Period”), pursuant to OHAA's certificate of incorporation.

Upon IPO completion, funds totaling $ 127.8 million, including proceeds from the OHAA IPO of $ 126.5 million and $ 1.3 million of investment from the Sponsor, were held in a trust account until the earlier of (i) the completion of a Business Combination or (ii) ten business days after April 29, 2023, 18 months from the closing of the OHAA IPO (“Combination Period”), pursuant to OHAA's certificate of incorporation.

OPPENHEIMER HOLDINGS INC.

2 unchanged sentences

In the fourth quarter of 2023, a fter careful consideration of the special purpose acquisition company market and after having completed an extensive search, OHAA determined it would be unable to deliver and fund a high quality value enhancing transaction to stockholders despite the extension.

Therefore, on December 18, 2023, OHAA determined not to further extend the term it has to complete an initial business combination and instead announced its intention to dissolve and liquidate.

Therefore, on December 18, 2023, OHAA determined not to further extend the term it had to complete an initial business combination and instead announced its intention to dissolve and liquidate.

On December 28, 2023, all OHAA Class A ordinary shares were cancelled with shareholders receiving their respective share redemption amounts.

14 unchanged sentences

Non-controlling interests represent ownership interests in the Sponsor of OHAA.

For the six months ended June 30, 2024 and June 30, 2023, the net loss (net of taxes) attributed to noncontrolling interests was $ 310,000 and $ 321,000 , respectively.

For the nine months ended September 30, 2024 and September 30, 2023, the net loss (net of taxes) attributed to noncontrolling interests was $ 310,000 and $ 403,000 , respectively.

Financial Instruments - Credit Losses

3 unchanged sentences

See note 9 for details.

As of June 30, 2024, the Company had $ 63.3 million of notes receivable ($ 62.6 million as of December 31, 2023).

As of September 30, 2024, the Company had $ 65.6 million of notes receivable ($ 62.6 million as of December 31, 2023).

Notes receivable represent recruiting and retention payments generally in the form of upfront loans to financial advisors and key revenue producers as part of the Company's overall growth strategy.

9 unchanged sentences

The expected loss rate is based on historical collection rates of defaulted notes.

The expected loss rate is adjusted for changes in environmental and market conditions such as changes in unemployment rates, changes in interest rates and other relevant factors.

For the three and six months ended June 30, 2024, no adjustments were made to the expected loss rates.

The expected loss rate is adjusted for changes in environmental and market conditions such as changes in unemployment rates, changes in interest rates and/or other relevant factors.

For the three and nine months ended September 30, 2024, no adjustments were made to the expected loss rates.

The Company will continuously monitor the effect of these factors on the expected loss rate and adjust it as necessary.

The allowance is measured on a pool basis as the Company has determined that the entire defaulted portion of notes receivable has similar risk characteristics.

As of June 30, 2024, the uncollected balance of defaulted notes was $ 6.6 million and the allowance for uncollectibles was $ 3.9 million.

As of September 30, 2024, the balance of defaulted notes was $ 6.0 million and the allowance for uncollectibles was $ 3.6 million.

The allowance for uncollectibles consisted of $ 2.0 million related to defaulted notes balances (five years and older) and $ 1.6 million (under five years).

The following table presents the disaggregation of defaulted notes by year of default as of June 30, 2024:

The following table presents the disaggregation of defaulted notes by year of default as of September 30, 2024:

(Expressed in thousands)

As of June 30, 2024

As of September 30, 2024

2019 and prior 1,970

Total $ 6,049

The following table presents activity in the allowance for uncollectibles of defaulted notes for the three and six months ended June 30, 2024 and 2023:

The following table presents activity in the allowance for uncollectibles of defaulted notes for the three and nine months ended September 30, 2024 and 2023:

(Expressed in thousands)

For the Three Months Ended

For the Six Months Ended

September 30,

For the Nine Months Ended

September 30,

2024 2023 2024 2023

Beginning balance $ 3,853 $ 3,814 $ 3,869 $ 4,327

Additions and other adjustments ( 238 ) ( 237 ) ( 16 ) ( 513 )

Write-offs ( 952 ) ( 95 ) ( 1,097 ) ( 901 )

Recoveries 719 229 848 522

Ending balance $ 3,620 $ 3,948 $ 3,620 $ 3,948

The Company has operating leases for office space and equipment expiring at various dates through 2034.

The Company leases its corporate headquarters at 85 Broad Street, New York, New York which houses its executive management team and many administrative functions for the Firm as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments.

In addition, the Company has 88 retail branch offices in the United States as well as offices in London, England, St.

Helier, Isle of Jersey, Geneva, Switzerland, Tel Aviv, Israel and Hong Kong, China.

The Company leases its corporate headquarters at 85 Broad Street, New York, New York which houses its executive management team and many administrative functions for the Company as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

the Company has 89 retail branch offices in the United States as well as offices in London, England, St.

Helier, Isle of Jersey, Geneva, Switzerland, Tel Aviv, Israel and Hong Kong, China.

The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year.

6 unchanged sentences

The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of June 30, 2024, the Company had right-of-use operating lease assets of $ 132.4 million (net of accumulated amortization of $ 107.6 million) which are comprised of real estate leases of $ 129.9 million (net of accumulated amortization of $ 104.8 million) and equipment leases of $ 2.5 million (net of accumulated amortization of $ 2.8 million).

As of June 30, 2024, the Company had operating lease liabilities of $ 172.6 million which are comprised of real estate lease liabilities of $ 170.1 million and equipment lease liabilities of $ 2.5 million.

The Company had no finance leases as of June 30, 2024.

As of September 30, 2024, the Company had right-of-use operating lease assets of $ 128.7 million (net of accumulated amortization of $ 114.4 million) which are comprised of real estate leases of $ 126.3 million (net of accumulated amortization of $ 111.6 million) and equipment leases of $ 2.4 million (net of accumulated amortization of $ 2.8 million).

As of September 30, 2024, the Company had operating lease liabilities of $ 167.4 million which are comprised of real estate lease liabilities of $ 165.0 million and equipment lease liabilities of $ 2.4 million.

The Company had no finance leases as of September 30, 2024.

As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

1 unchanged sentence

The Company used the incremental borrowing rate as of the lease commencement date for the operating leases that commenced subsequent to January 1, 2019.

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of June 30, 2024 and December 31, 2023, respectively:

June 30, 2024

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of September 30, 2024 and December 31, 2023, respectively:

September 30, 2024

December 31, 2023

1 unchanged sentence

Weighted average discount rate 7.76 % 7.72 %

The following table presents operating lease costs recognized for the three and six months ended June 30, 2024 and June 30, 2023, respectively, which are included in occupancy and equipment costs on the condensed consolidated income statements:

The following table presents operating lease costs recognized for the three and nine months ended September 30, 2024 and September 30, 2023, respectively, which are included in occupancy and equipment costs on the condensed consolidated income statements:

(Expressed in thousands)

For the Three Months Ended

For the Six Months Ended

September 30,

For the Nine Months Ended

September 30,

2024 2023 2024 2023

6 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

The maturities of lease liabilities as of June 30, 2024 and December 31, 2023 are as follows:

The maturities of lease liabilities as of September 30, 2024 and December 31, 2023 are as follows:

(Expressed in thousands)

June 30, 2024

September 30, 2024

December 31, 2023

8 unchanged sentences

Present value of lease liabilities $ 167,424 $ 183,273

As of June 30, 2024, the Company had $ 25.2 million of additional real estate operating leases that have not yet commenced ($ 5.8 million as of December 31, 2023).

As of September 30, 2024, the Company had $ 23.3 million of additional real estate operating leases that have not yet commenced ($ 5.8 million as of December 31, 2023).

Revenue from contracts with customers

44 unchanged sentences

Fees are earned over time and are generally received within 30 days.

Disaggregation of Revenue

The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and six months ended June 30, 2024 and 2023:

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands) For the Three Months Ended June 30, 2024

Disaggregation of Revenue

The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and nine months ended September 30, 2024 and 2023:

(Expressed in thousands) For the Three Months Ended September 30, 2024

Reportable Segments

15 unchanged sentences

Total revenue $ 218,787 $ 27,262 $ 124,030 $ 3,273 $ 373,352

(Expressed in thousands) For the Three Months Ended June 30, 2023

(Expressed in thousands) For the Three Months Ended September 30, 2023

Reportable Segments

17 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands) For the Six Months Ended June 30, 2024

(Expressed in thousands) For the Nine Months Ended September 30, 2024

Reportable Segments

15 unchanged sentences

Total revenue $ 640,521 $ 78,015 $ 328,254 $ 10,289 $ 1,057,079

(Expressed in thousands) For the Six Months Ended June 30, 2023

(Expressed in thousands) For the Nine Months Ended September 30, 2023

Reportable Segments

21 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

The Company had receivables related to revenue from contracts with customers of $ 37.3 million and $ 39.9 million at June 30, 2024 and December 31, 2023, respectively.

The Company had no significant impairments related to these receivables during the three months ended June 30, 2024.

The Company had receivables related to revenue from contracts with customers of $ 32.8 million and $ 39.9 million at September 30, 2024 and December 31, 2023, respectively.

The Company had no significant impairments related to these receivables during the three months ended September 30, 2024.

Deferred revenue relates to IRA fees received annually in advance on customers' IRA accounts managed by the Company, software license fees received upfront from customers and retainer fees and other fees earned from certain advisory transactions where the performance obligations have not yet been satisfied.

Total deferred revenue was $ 2.5 million and $ 1.1 million at June 30, 2024 and December 31, 2023, respectively.

Total deferred revenue was $ 2.4 million and $ 1.1 million at September 30, 2024 and December 31, 2023, respectively.

The following presents the Company's receivables and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the consolidated balance sheet:

(Expressed in thousands) As of

June 30, 2024

September 30, 2024

December 31, 2023

1 unchanged sentence

$ 4,603 $ 4,554

Mutual fund income (2)

Mutual fund and insurance income (2)

Advisory fees (3)

1 unchanged sentence

Investment banking fees (5)

11,856 12,847

Other 5,714 6,126

5 unchanged sentences

$ 2,419 $ 1,118

(1) Commission recorded on trade date but not yet settled.

(2) Mutual fund income earned but not yet received.

(1) Commissions earned but not yet received.

(2) Mutual fund and insurance income earned but not yet received.

(3) Management and performance fees earned but not yet received.

4 unchanged sentences

(8) Fee received in advance on an annual basis.

Earnings per share

Basic earnings per share is computed by dividing net income over the weighted average number of shares of Class A Stock and Class B Stock outstanding.

Diluted earnings per share includes the weighted average number of shares of Class A Stock and Class B Stock outstanding and options to purchase Class A Stock and unvested restricted stock awards of Class A Stock using the treasury stock method.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Earnings per share

Basic earnings per share is computed by dividing net income over the weighted average number of shares of Class A non-voting common stock ("Class A Stock") and Class B voting common stock ("Class B Stock") outstanding.

Earnings per share have been calculated as follows:

1 unchanged sentence

For the Three Months Ended

For the Six Months Ended

September 30,

For the Nine Months Ended

September 30,

2024 2023 2024 2023

8 unchanged sentences

Diluted $ 2.16 $ 1.21 $ 5.45 $ 1.62

(1) For the three months ended June 30, 2024 , there were no shares of Class A Stock with an anti-dilutive effect granted under share-based compensation arrangements.

For the six months ended June 30, 2024, the diluted net income per share computation did not include the anti-dilutive effect of 1,000 shares of Class A Stock granted under share-based compensation arrangements.

For the three months ended June 30, 2023, the diluted net income per share computation did not include the anti-dilutive effect of 1,138,992 shares of Class A Stock granted under share-based compensation arrangements.

For the six months ended June 30, 2023, the diluted net income per share computation did not include the anti-dilutive effect of 281,810 shares of Class A Stock granted under share-based compensation arrangements.

(1) For the three months ended September 30, 2024, there were no shares of Class A Stock with an anti-dilutive effect granted under share-based compensation arrangements.

For the nine months ended September 30, 2024, there were no shares of Class A Stock with an anti-dilutive effect granted under share-based compensation arrangements.

For the three months ended September 30, 2023, the diluted net income per share computation did not include the anti-dilutive effect of 286,185 shares of Class A Stock granted under share-based compensation arrangements.

For the nine months ended September 30, 2023, the diluted net income per share computation did not include the anti-dilutive effect of 277,435 shares of Class A Stock granted under share-based compensation arrangements.

Receivable from and payable to brokers, dealers and clearing organizations

(Expressed in thousands)

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Receivable from brokers, dealers and clearing organizations consisting of:

2 unchanged sentences

Clearing organizations and other 43,680 30,789

84,824 30,789

Securities failed to deliver 32,006 29,656

6 unchanged sentences

Total $ 319,529 $ 361,890

(1) As of June 30, 2024, approximately $ 41.5 million of this balance represents a receivable for trades executed, but not yet settled.

(1) As of December 31, 2023, approximately $ 48.4 million of this balance represents a payable for trades executed, but not yet settled.

31 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

The fair value of trade claims is estimated using recently executed transaction prices.

Auction Rate Securities ("ARS")

As of June 30, 2024, the Company owned $ 2.7 million of ARS.

This represents the amount that the Company holds as a result of ARS buybacks in previous years.

The Company has valued the ARS securities owned at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities and the period of time since the last tender offer.

The fair value of ARS is particularly sensitive to movements in interest rates.

However, an increase or decrease in short-term interest rates may or may not result in a higher or lower tender offer price in the future or the tender offer price may not provide a reasonable estimate of the fair value of the securities.

In such cases, other valuation techniques might be necessary.

As of June 30, 2024, the Company had a valuation allowance totaling $ 0.2 million relating to ARS owned (which is included as a reduction to securities owned on the condensed consolidated balance sheet).

In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds.

1 unchanged sentence

Changes in the fair value of these investments are reflected within other income in the consolidated financial statements.

The following table provides information about the Company's investments in Company-sponsored funds as of June 30, 2024:

The following table provides information about the Company's investments in Company-sponsored funds as of September 30, 2024:

(Expressed in thousands)

26 unchanged sentences

The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions.

As of June 30, 2024, the fair value of the investment was $ 7.2 million and was categorized in Level 2 of the fair value hierarchy.

As of September 30, 2024, the fair value of the investment was $ 7.4 million and was categorized in Level 2 of the fair value hierarchy.

OPPENHEIMER HOLDINGS INC.

1 unchanged sentence

Assets and Liabilities Measured at Fair Value

The Company's assets and liabilities, recorded at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, have been categorized based upon the above fair value hierarchy as follows:

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 :

The Company's assets and liabilities, recorded at fair value on a recurring basis as of September 30, 2024 and December 31, 2023, have been categorized based upon the above fair value hierarchy as follows:

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 :

(Expressed in thousands)

Fair Value Measurements as of June 30, 2024

Fair Value Measurements as of September 30, 2024

Level 1 Level 2 Level 3 Total

14 unchanged sentences

1,244 17,636 — 18,880

Trade claims (1)

— 1,257 — 1,257

Derivative contracts:

5 unchanged sentences

Agency securities — 1 — 1

Sovereign obligations — 1,678 — 1,678

Corporate debt and other obligations — 5,406 — 5,406

48 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2024 and 2023:

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2024 and 2023:

(Expressed in thousands)

Level 3 Assets and Liabilities

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

Total Realized

6 unchanged sentences

Level 3 Assets and Liabilities

For the Three Months Ended June 30, 2023

For the Three Months Ended September 30, 2023

Total Realized

7 unchanged sentences

Level 3 Assets and Liabilities

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

Total Realized

7 unchanged sentences

Level 3 Assets and Liabilities

For the Six Months Ended June 30, 2023

For the Nine Months Ended September 30, 2023

Total Realized

11 unchanged sentences

The fair value of the Company's senior secured notes, categorized in Level 2 of the fair value hierarchy, is based on quoted prices from the market in which the notes trade.

Assets and liabilities not measured at fair value as of June 30, 2024:

Assets and liabilities not measured at fair value as of September 30, 2024:

(Expressed in thousands) Fair Value Measurement:

11 unchanged sentences

Securities purchased under agreements to resell — — — — —

Corporate-owned life 94,646 — 94,646 — 94,646

Corporate-owned life insurance 98,068 — 98,068 — 98,068

Investments (1)

62 unchanged sentences

Treasury Notes, federal funds, general collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities.

Unrealized gains and losses on futures contracts are recorded on the consolidated balance sheet in payable to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.

Unrealized gains and losses on futures contracts are recorded on the consolidated balance sheet in payable to or receivable from brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.

To-be-announced securities

3 unchanged sentences

Net unrealized gains and losses on TBAs are recorded on the consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.

The notional amounts and fair values of the Company's derivatives as of June 30, 2024 and December 31, 2023 by product were as follows:

The notional amounts and fair values of the Company's derivatives as of September 30, 2024 and December 31, 2023 by product were as follows:

(Expressed in thousands)

Fair Value of Derivative Instruments as of June 30, 2024

Fair Value of Derivative Instruments as of September 30, 2024

Description Notional Fair Value

1 unchanged sentence

Other contracts TBAs $ 8,400 $ 38

Commodity contracts

Futures 335,000 —

$ 343,400 $ 38

22 unchanged sentences

Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.

The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the consolidated income statements for the three and six months ended June 30, 2024 and 2023:

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

Recognized in Income on Derivatives

Types Description Location Net Gain

Types Description Location Net (Loss)

Commodity contracts Futures Principal transactions revenue, net $ ( 5,892 )

Other contracts Foreign exchange forward contracts Other revenue/(Compensation and related expenses) ( 24 )

Other contracts TBAs Principal transactions revenue, net ( 2 )

1 unchanged sentence

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended June 30, 2023

For the Three Months Ended September 30, 2023

Recognized in Income on Derivatives

1 unchanged sentence

Commodity contracts Futures Principal transactions revenue, net $ 1,078

Other contracts Foreign exchange forward contracts Other revenue/(Compensation and related expenses) ( 7 )

Other contracts TBAs Principal transactions revenue, net 25

3 unchanged sentences

The Effect of Derivative Instruments in the Income Statement

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

Recognized in Income on Derivatives

Types Description Location Net Gain

Types Description Location Net (Loss)

Commodity contracts Futures Principal transactions revenue, net $ ( 1,457 )

3 unchanged sentences

The Effect of Derivative Instruments in the Income Statement

For the Six Months Ended June 30, 2023

For the Nine Months Ended September 30, 2023

Recognized in Income on Derivatives

10 unchanged sentences

Bank call loans are generally payable on demand and bear interest at various rates.

As of June 30, 2024, the outstanding balance of bank call loans was $ 218.8 million ( zero as of December 31, 2023).

As of June 30, 2024, such loans with commercial banks were collateralized by the Company's securities and customer securities with market values of approximately $ 39.1 million and $ 208.0 million, respectively.

As of June 30, 2024, the Company had approximately $ 1.6 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $ 186.2 million under securities loan agreements.

As of June 30, 2024, the Company had pledged $ 22.9 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers.

As of June 30, 2024, the Company had no outstanding letters of credit.

As of September 30, 2024, the outstanding balance of bank call loans was $ 206.7 million ( zero as of December 31, 2023).

As of September 30, 2024, such loans with commercial banks were collateralized by the Company's securities and customer securities with market values of approximately $ 35.7 million and $ 197.4 million, respectively.

As of September 30, 2024, the Company had approximately $ 1.8 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $ 203.8 million under securities loan agreements.

As of September 30, 2024, the Company had pledged $ 19.5 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers.

As of September 30, 2024, the Company had no outstanding letters of credit.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers' needs and to finance the Company's inventory positions.

1 unchanged sentence

Government and Agency securities, are carried at amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Repurchase agreements and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase agreements and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase agreements and reverse repurchase agreements exist in "book entry" form and certain other requirements are met.

The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of June 30, 2024:

(Expressed in thousands)

5 unchanged sentences

Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 1,281,465

The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of June 30, 2024 and December 31, 2023:

As of June 30, 2024

As of September 30, 2024

(Expressed in thousands)

55 unchanged sentences

Under many agreements, the Company is permitted to sell or re-pledge the securities received (e.g., use the securities to enter into securities lending transactions, or deliver to counterparties to cover short positions).

As of June 30, 2024, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $ 130.3 million ($ 151.9 million as of December 31, 2023) and $ 27.5 million ($ 8.8 million as of December 31, 2023), respectively, of which the Company has sold and re-pledged approximately $ 50.0 million ($ 61.5 million as of December 31, 2023) under securities loaned transactions and $ 27.5 million under repurchase agreements ($ 8.8 million as of December 31, 2023).

As of September 30, 2024, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $ 138.0 million ($ 151.9 million as of December 31, 2023) and $ 243.8 million ($ 8.8 million as of December 31, 2023), respectively, of which the Company has sold and re-pledged approximately $ 56.5 million ($ 61.5 million as of December 31, 2023) under securities loaned transactions and $ 243.8 million under repurchase agreements ($ 8.8 million as of December 31, 2023).

The Company pledges certain of its securities owned for securities lending and repurchase agreements and to collateralize bank call loan transactions.

The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $ 867.3 million, as presented on the face of the consolidated balance sheet as of June 30, 2024 ($ 689.4 million as of December 31, 2023).

The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $ 792.3 million, as presented on the face of the consolidated balance sheet as of September 30, 2024 ($ 689.4 million as of December 31, 2023).

The Company manages credit exposure arising from repurchase and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Company, in the event of a customer default, the right to liquidate securities and the right to offset a counterparty's rights and obligations.

8 unchanged sentences

The Company seeks to mitigate these risks by actively monitoring exposures and obtaining collateral as deemed appropriate.

Included in receivable from brokers, dealers and clearing organizations as of June 30, 2024 were receivables from two major U.S.

Included in receivable from brokers, dealers and clearing organizations as of September 30, 2024 were receivables from four major U.S.

broker-dealers totaling approximately $ 117.8 million.

Included in receivable from customers as of June 30, 2024 were fully secured margin loans from our two largest customer accounts totaling approximately $ 543.8 million.

Included in receivable from customers as of September 30, 2024 were fully secured margin loans from our two largest customer accounts totaling approximately $ 631.1 million.

The Company is obligated to settle transactions with brokers and other financial institutions even if its clients fail to meet their obligations to the Company.

2 unchanged sentences

The Company has clearing/participating arrangements with the National Securities Clearing Corporation, the Fixed Income Clearing Corporation ("FICC"), the Mortgage-Backed Securities Division (a division of FICC), and others.

With respect to its business in reverse repurchase and repurchase agreements, substantially all open contracts as of June 30, 2024 are with the FICC .

With respect to its business in reverse repurchase and repurchase agreements, substantially all open contracts as of September 30, 2024 are with the FICC .

In addition, the Company clears its non-U.S.

5 unchanged sentences

As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right.

As of June 30, 2024, the Company had recorded no liabilities with regard to this right.

As of September 30, 2024, the Company had recorded no liabilities with regard to this right.

The Company's policy is to monitor the credit standing of the clearing brokers and banks with which it conducts business.

7 unchanged sentences

The subsidiaries' general and limited partnership interests and additional capital commitments represent its maximum exposure to loss.

The subsidiaries' general partnership and limited partnership interests is included in other assets on the condensed consolidated balance sheet.

The subsidiaries' general partnership and limited partnership interests are included in other assets on the condensed consolidated balance sheet.

In addition, the Company previously served as general partner of Oppenheimer Acquisition LLC I and Oppenheimer Acquisition LLC II (the "Sponsors").

7 unchanged sentences

(Expressed in thousands)

As of June 30,

As of September 30,

Cash and cash equivalents $ — $ 5,348

6 unchanged sentences

(Expressed in thousands)

Issued Maturity Date June 30, 2024 December 31, 2023

Issued Maturity Date September 30, 2024 December 31, 2023

5.50 % Senior Secured Notes

7 unchanged sentences

On November 23, 2020, we completed an exchange offer in which we exchanged 99.8 % of the Unregistered Notes for a like principal amount of notes (the "Notes") with identical terms, except that such new Notes have been registered under the Securities Act of 1933, as amended (the "Securities Act").

We did not receive any proceeds in the exchange offer.

The Notes will mature on October 1, 2025 and bear interest at a rate of 5.50 % per annum, payable semiannually on April 1st and October 1st, respectively, of each year.

The cost to issue the Notes was $ 3.1 million, of which $ 1.9 million was paid to its subsidiary, (Oppenheimer & Co Inc., who served as the initial purchaser of the offering), and was eliminated in consolidation.

The remaining $ 1.2 million was capitalized and is amortized over the term of the Notes.

The Company has repurchased and may continue to seek to repurchase its Notes from time to time through, as applicable, tender offers, open market purchases, privately negotiated transactions or otherwise.

Such repurchases, if any, will depend on a number of factors, including, but not limited to, the Company’s priorities for the use of cash, price, market and economic conditions, its liquidity requirements, and legal and contractual restrictions.

During the first quarter of 2023, the Company repurchased and cancelled $ 1.0 million aggregate principal amount of its Notes in the open market.

As of June 30, 2024, $ 113.05 million aggregate principal amount of the Notes remain outstanding.

The Company may redeem the Notes, in whole or in part, at their par amount plus accrued and unpaid interest on or after October 1, 2024.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

The indenture governing the Notes (the "Indenture") contains covenants which place restrictions on the incurrence of indebtedness, the payment of dividends, the repurchase of equity, the sale of assets, the issuance of guarantees, mergers and acquisitions and the granting of liens.

These covenants are subject to a number of important exceptions and qualifications.

These exceptions and qualifications include, among other things, a variety of provisions that are intended to allow the Company to continue to conduct its brokerage operations in the ordinary course of business.

In addition, certain of the covenants will be suspended upon the Parent attaining an investment grade debt rating for the Notes from both S&P Global Ratings and Moody’s Investors Service, Inc.

Pursuant to the Indenture, the following covenants apply to the Parent and its restricted subsidiaries, but generally do not apply, or apply only in part, to its Regulated Subsidiaries (as defined):

• limitation on indebtedness and issuances of preferred stock, which restricts the Parent’s ability to

incur additional indebtedness or to issue preferred stock;

• limitation on restricted payments, which generally restricts the Parent’s ability to declare certain

dividends or distributions, repurchase its capital stock or to make certain investments;

• limitation on dividends and other payment restrictions affecting restricted subsidiaries or Regulated

Subsidiaries, which generally limits the ability of certain of the Parent’s subsidiaries to pay dividends

or make other transfers;

• limitation on future Subsidiary Guarantors (as hereinafter defined), which prohibits certain of the Parent’s

subsidiaries from guaranteeing its indebtedness or indebtedness of any restricted subsidiary unless the Notes

are comparably guaranteed;

• limitation on transactions with shareholders and affiliates, which generally requires transactions among

the Parent’s affiliated entities to be conducted on an arm’s-length basis;

• limitation on liens, which generally prohibits the Parent and its restricted subsidiaries from granting

liens unless the Notes are comparably secured;

• limitation on asset sales, which generally prohibits the Parent and certain of its subsidiaries from selling

assets or certain securities or property of significant subsidiaries.

The Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Notes to become or to be declared due and payable.

As of June 30, 2024, the Parent was in compliance with all of its covenants.

The Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by the Subsidiary Guarantors and future subsidiaries are required to guarantee the Notes pursuant to the Indenture.

The Notes are secured by a first-priority security interest in substantially all of the Parent’s and the Subsidiary Guarantors’ existing and future tangible and intangible assets, subject to certain exceptions and permitted liens.

Interest expense on the Notes for the three and six months ended June 30, 2024 was $ 1.6 million and $ 3.1 million, respectively.

Interest expense on the Notes for the three and six months ended June 30, 2023 was $ 1.6 million and $ 3.1 million, respectively.

The effective income tax rate for the three and six months ended June 30, 2024 was 35.3 % and 32.5 % respectively, compared with 18.2 % and 33.4 % for the three and six months ended June 30, 2023 and reflects the Company's annual estimate of the statutory federal and state tax rates adjusted for certain discrete items.

The effective tax rate for the second quarter of 2024 was impacted by permanent items and non-deductible losses in non-U.S.

As of September 30, 2024, $ 113.05 million aggregate principal amount of the Notes remain outstanding.

On September 19, 2024, the Company issued a notice of redemption to the holders of its Notes stating that it intends to redeem all of the $ 113.05 million aggregate principal amount of the Notes outstanding on October 10, 2024.

On October 10, 2024, the Company completed its redemption of all of the $ 113.05 million aggregate principal amount of the Notes outstanding at a redemption price equal to 100 % of the principal amount of the Notes redeemed, plus accrued and unpaid interest.

Interest expense on the Notes for the three and nine months ended September 30, 2024 was $ 1.6 million and $ 4.7 million, respectively.

Interest expense on the Notes for the three and nine months ended September 30, 2023 was $ 1.6 million and $ 4.7 million, respectively.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

The effective income tax rate for the three and nine months ended September 30, 2024 was 30.7 % and 31.8 % respectively, compared with 36.2 % and 35.5 % for the three and nine months ended September 30, 2023 and reflects the Company's annual estimate of the statutory federal and state tax rates adjusted for certain discrete items.

The effective tax rate for the third quarter of 2024 was impacted by permanent items and non-deductible losses in non-U.S.

Stockholders' Equity

7 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

11 unchanged sentences

This authorization supplemented the 120,155 shares that remained authorized and available under the Company's previous share repurchase program for a total of 638,155 shares authorized.

During the three months ended June 30, 2024, the Company purchased and canceled an aggregate of 23,102 shares of Class A Stock for a total consideration of $ 924,364 ($ 40.01 per share) under its share repurchase program.

During the six months ended June 30, 2024, the Company purchased and canceled an aggregate of 237,825 shares of Class A Stock for a total consideration of $ 9.3 million ($ 39.14 per share) under its share repurchase program.

During the three months ended June 30, 2023, the Company purchased and canceled an aggregate of 96,135 shares of Class A Stock for a total consideration of $ 3.6 million ($ 37.43 per share) under this program.

During the six months ended June 30, 2023, the Company purchased and canceled an aggregate of 191,190 shares of Class A Stock for a total consideration of $ 7.3 million ($ 38.11 per share) under this program.

As of June 30, 2024, 503,874 shares remained available to be purchased under the share repurchase program.

During the three months ended September 30, 2024, the Company purchased and canceled an aggregate of 5,981 shares of Class A Stock for a total consideration of $ 294,862 ($ 49.30 per share) under its share repurchase program.

During the nine months ended September 30, 2024, the Company purchased and canceled an aggregate of 243,806 shares of Class A Stock for a total consideration of $ 9.6 million ($ 39.39 per share) under its share repurchase program.

During the three months ended September 30, 2023, the Company purchased and canceled an aggregate of 168,904 shares of Class A Stock for a total consideration of $ 6.5 million ($ 38.30 per share) under this program.

During the nine months ended September 30, 2023, the Company purchased and canceled an aggregate of 360,094 shares of Class A Stock for a total consideration of $ 13.8 million ($ 38.20 per share) under this program.

As of September 30, 2024, 497,893 shares remained available to be purchased under the share repurchase program.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Share purchases will be made by the Company from time to time in the open market at the prevailing open market price using cash on hand, in compliance with the applicable rules and regulations of the New York Stock Exchange and federal and state securities laws and the terms of the Company's Notes.

4 unchanged sentences

Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

On October 25, 2024, the Company announced a quarterly dividend in the amount of $ 0.18 per share, payable on November 22, 2024 to holders of Class A Stock and Class B Stock of record on November 8, 2024.

Contingencies

19 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

Beginning on or about August 31, 2021, Oppenheimer was named as a respondent in fifty-one arbitrations, many containing multiple claimants, each filed before FINRA, relating to those claimants’ purported investment in Horizon Private Equity, III, LLC (“Horizon”).

Beginning on or about August 31, 2021, Oppenheimer was named as a respondent in numerous arbitrations, many containing multiple claimants, each filed before FINRA, relating to those claimants’ purported investment in Horizon Private Equity, III, LLC (“Horizon”).

Horizon is alleged to be a fraudulent scheme involving, among others, a former Oppenheimer employee, John Woods.

Oppenheimer has settled, or settled in principle or an award has been rendered in forty-nine of the Horizon-related arbitrations.

The two arbitrations still pending claim specific monetary damages and allege losses of approximately $ 3.8 million in the aggregate.

On June 16, 2023, Oppenheimer was served with a complaint in an action entitled John and Cynthia Kearney, John & Tera Sargent, Mike Hall et al v.

Oppenheimer & Co.

Inc., et al, filed in Georgia State Court, Fulton County.

Plaintiffs allege that Oppenheimer, through its inaction and/or misconduct, is responsible for their alleged losses and are seeking unspecified damages alleging in violations of the Georgia RICO statute and negligence per se.

Oppenheimer filed a motion to dismiss the complaint.

On April 17, 2024 the court issued an order granting plaintiffs John and Tera Sargent’s voluntary dismissal of their claims without prejudice.

On April 22, 2024, the court granted Oppenheimer’s motion to dismiss and terminated the case.

On April 26, 2024, plaintiffs filed a notice of appeal of the court’s order dismissing the case.

Additionally, on August 25, 2023, Oppenheimer was served with a complaint in an action entitled Lisa Wright, Billy Ray Boaz, et al v.

Oppenheimer & Co.

Inc., et al , filed in Georgia State Court, Fulton County.

On October 31, 2023, Oppenheimer filed a motion to dismiss the complaint.

On April 22, 2024 the court granted Oppenheimer’s motion to dismiss and terminated the case.

On April 26, 2024, plaintiffs filed a notice of appeal of the court’s order dismissing the case.

On June 30, 2022, the Oppenheimer received a "Wells Notice" from the SEC requesting that Oppenheimer make a written submission to the SEC to explain why Oppenheimer should not be charged with violations of Section 15c2-12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules G-17 and G-27 in relation to its sales of municipal notes pursuant to an exemption from continuing disclosure contained in Rule 15c2-12.

John Woods left Oppenheimer’s employ in 2016 and Oppenheimer never received a complaint from any of the investors prior to the SEC bringing a complaint against Woods and his co-conspirators in 2021.

Oppenheimer has settled or an award has been rendered and paid in all the Horizon-related arbitrations except for two arbitrations which allege losses of approximately $ 2.75 million in the aggregate.

In addition, in June and August of 2023, Oppenheimer was served with two Horizon-related complaints in Georgia State Court, by plaintiffs, virtually all of whom were never Oppenheimer customers, alleging unspecified losses.

In 2024, each of those complaints was dismissed by the trial court.

Plaintiffs in each case subsequently filed an appeal of the court’s order dismissing the cases, each of which is currently pending.

On June 30, 2022, Oppenheimer received a "Wells Notice" from the SEC requesting that Oppenheimer make a written submission to the SEC to explain why Oppenheimer should not be charged with violations of Section 15c2-12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules G-17 and G-27 in relation to its sales of municipal notes pursuant to an exemption from continuing disclosure contained in Rule 15c2-12.

On September 13, 2022, the SEC filed a complaint against Oppenheimer in the United States District Court for the Southern District of New York (the “Court") alleging that Oppenheimer violated Section 15B(c)(1) of the Exchange Act and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules.

6 unchanged sentences

Oppenheimer computes its net capital requirements under the alternative method provided for in the Rule which requires that Oppenheimer maintain net capital equal to two percent of aggregate customer-related debit items, as defined in SEC Rule 15c3-3.

As of June 30, 2024, the net capital of Oppenheimer as calculated under the Rule was $ 460.7 million or 43.90 % of Oppenheimer's aggregate debit items.

As of September 30, 2024, the net capital of Oppenheimer as calculated under the Rule was $ 487.5 million or 42.54 % of Oppenheimer's aggregate debit items.

This was $ 464.6 million in excess of the minimum required net capital at that date.

The Company's subsequent redemption of all outstanding Notes on October 10, 2024 reduced Oppenheimer's net capital by approximately $ 113 million.

This reduction did not have an impact of Oppenheimer's compliance with the Rule or its ability to continue with business-as-usual operating activities.

See note 11 for additional details.

Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $ 100,000 or 6-2/3% of aggregate indebtedness, as defined.

As of June 30, 2024, Freedom had net capital of $ 3.9 million, which was $ 3.8 million in excess of the $ 100,000 required to be maintained at that date.

As of June 30, 2024, the capital required and held under the Financial Conduct Authority's Investment Firms’ Prudential Regime (“IFPR”) for Oppenheimer Europe Ltd.

As of September 30, 2024, Freedom had net capital of $ 3.8 million, which was $ 3.7 million in excess of the $ 100,000 required to be maintained at that date.

As of September 30, 2024, the capital required and held under the Financial Conduct Authority's Investment Firms’ Prudential Regime (“IFPR”) for Oppenheimer Europe Ltd.

was as follows:

1 unchanged sentence

• Tier 1 Capital ratio 94 % (required 75.0 %);

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

• Total Capital ratio 128 % (required 100.0 %).

As of June 30, 2024, Oppenheimer Europe Ltd.

As of September 30, 2024, Oppenheimer Europe Ltd.

was in compliance with its regulatory requirements.

As of June 30, 2024, the regulatory capital of Oppenheimer Investments Asia Limited was $ 3.6 million, which was $ 3.2 million in excess of the $ 384,170 required to be maintained on that date.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

As of September 30, 2024, the regulatory capital of Oppenheimer Investments Asia Limited was $ 3.4 million, which was $ 3.0 million in excess of the $ 386,133 required to be maintained on that date.

Oppenheimer Investments Asia Limited computes its regulatory capital pursuant to the requirements of the Securities and Futures Commission of Hong Kong.

As of June 30, 2024, Oppenheimer Investment Asia Limited was in compliance with its regulatory requirements.

As of June 30, 2024, Oppenheimer Trust is required to maintain minimal capital of $ 4.15 million.

As of September 30, 2024, Oppenheimer Investment Asia Limited was in compliance with its regulatory requirements.

As of September 30, 2024, Oppenheimer Trust is required to maintain minimal capital of $ 4.15 million.

Oppenheimer Trust is currently in compliance with its capital requirements.

7 unchanged sentences

Capital Markets — includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments.

2 unchanged sentences

The Company also includes activities associated with BondWave, LLC, a cloud-based financial markets software service provider in Corporate/Other.

The table below presents information about the reported revenue and pre-tax income (loss) of the Company for the three months ended June 30, 2024 and 2023.

The table below presents information about the reported revenue and pre-tax income (loss) of the Company for the three and nine months ended September 30, 2024 and 2023.

Asset information by reportable segment is not reported since the Company does not produce such information for internal use by the chief operating decision maker.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands)

For the Three Months Ended

For the Six Months Ended

September 30,

For the Nine Months Ended

September 30,

2024 2023 2024 2023

16 unchanged sentences

Advisory fees are allocated 10.0 % to the Asset Management and 90.0 % to the Private Client segments.

Revenue, classified by the major geographic areas in which it was earned, for the three months ended June 30, 2024 and 2023 was:

Revenue, classified by the major geographic areas in which it was earned, for the three and nine months ended September 30, 2024 and 2023 was:

(Expressed in thousands)

For the Three Months Ended

For the Six Months Ended

September 30,

For the Nine Months Ended

September 30,

2024 2023 2024 2023

4 unchanged sentences

Subsequent events

On July 26, 2024, the Company announced a quarterly dividend in the amount of $ 0.18 per share, payable on August 23, 2024 to holders of Class A Stock and Class B Stock of record on August 9, 2024.

The Company has performed an evaluation of events that occurred since September 30, 2024 and through the date on which the

condensed consolidated financial statements were issued, and determined t here are no events that have occurred that would require recognition or additional disclosure except as disclosed in Note 11, Note 13 and Note 15.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements