What changed in this filing

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Item 1. Financial Statements

2025-08-01 compared with 2025-04-25 · 266 added, 127 removed, 909 unchanged (30% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(Expressed in thousands, except number of shares and per share amounts) March 31, 2025 December 31, 2024

(Expressed in thousands, except number of shares and per share amounts) June 30, 2025 December 31, 2024

Cash and cash equivalents $ 37,618 $ 33,150

35 unchanged sentences

shares issued and outstanding:

10,425,830 and 10,231,736 as of March 31, 2025 and December 31, 2024, respectively

10,418,259 and 10,231,736 as of June 30, 2025 and December 31, 2024, respectively

shares authorized, issued and outstanding:

99,665 as of March 31, 2025 and December 31, 2024

99,665 as of June 30, 2025 and December 31, 2024

Additional paid-in capital 26,576 29,733

7 unchanged sentences

For the Three Months Ended

For the Six Months Ended

(Expressed in thousands, except number of shares and per share amounts) 2025 2024 2025 2024

31 unchanged sentences

For the Three Months Ended

For the Six Months Ended

(Expressed in thousands) 2025 2024 2025 2024

Net income $ 21,674 $ 10,266 $ 52,329 $ 36,010

Other comprehensive loss, net of tax

Other comprehensive income (loss), net of tax

Currency translation adjustment 2,146 ( 580 ) 1,659 ( 967 )

7 unchanged sentences

For the Three Months Ended

For the Six Months Ended

(Expressed in thousands, except per share amount) 2025 2024 2025 2024

14 unchanged sentences

Balance at beginning of period 848,721 780,946 819,961 756,468

Repurchase of Class A non-voting common stock for cancellation ( 580 ) ( 924 ) ( 580 ) ( 924 )

Net income (1)

2 unchanged sentences

Balance at end of period 867,922 788,739 867,922 788,739

Accumulated other comprehensive income

Accumulated other comprehensive income (loss)

Balance at beginning of period 204 526 691 914

5 unchanged sentences

Balance at beginning of period — — — 73

Capital addition to noncontrolling interest — — — 237

Net loss attributable to noncontrolling interest — — — ( 310 )

Change in redemption value of redeemable noncontrolling interests — 237

Balance at end of period — — — —

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

FOR THE THREE MONTHS ENDED MARCH 31,

FOR THE SIX MONTHS ENDED JUNE 30,

(Expressed in thousands) 2025 2024

1 unchanged sentence

Net income $ 52,329 $ 36,010

Adjustments to reconcile net income to net cash provided by (used in) operating activities

Adjustments to reconcile net income to net cash used in operating activities

Non-cash items included in net income:

5 unchanged sentences

Provision for credit losses ( 6 ) ( 125 )

Paid-in-kind interest ( 52 ) —

Share-based compensation 12,316 14,435

19 unchanged sentences

Accounts payable and other liabilities ( 14,652 ) ( 29,273 )

Cash provided by (used in) operating activities ( 91,740 ) ( 79,048 )

Cash used in operating activities ( 51,671 ) ( 194,314 )

Cash flows from investing activities

Purchase of furniture, equipment and leasehold improvements ( 2,808 ) ( 1,667 )

Proceeds from the settlement of Company-owned life insurance 1,322 —

Proceeds from the settlement of corporate-owned life insurance 1,549 252

Cash used in investing activities ( 1,259 ) ( 1,415 )

6 unchanged sentences

Cash provided by financing activities 57,398 200,108

Net increase (decrease) in cash and cash equivalents 3,546 ( 1,174 )

Net increase in cash and cash equivalents 4,468 4,379

Cash and cash equivalents, beginning of period 33,150 28,835

39 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 months ended March 31, 2025 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 six months ended June 30, 2025 are not necessarily indicative of the results to be expected for any future interim or annual period.

OPPENHEIMER HOLDINGS INC.

16 unchanged sentences

See note 9 for details.

As of March 31, 2025, the Company had $ 67.7 million of notes receivable ($ 67.9 million as of December 31, 2024).

As of June 30, 2025, the Company had $ 64.3 million of notes receivable ($ 67.9 million as of December 31, 2024).

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.

10 unchanged sentences

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 months ended March 31, 2025, no adjustments were made to the expected loss rates.

For the three and six months ended June 30, 2025, 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 March 31, 2025, the balance of defaulted notes was $ 4.8 million and the allowance for uncollectibles was $ 3.0 million.

As of June 30, 2025, the balance of defaulted notes was $ 4.5 million and the allowance for uncollectibles was $ 2.9 million.

The allowance for uncollectibles consisted of $ 1.8 million related to defaulted notes balances (five years and older) and $ 1.1 million (under five years).

The following table presents the disaggregation of defaulted notes by year of default as of March 31, 2025:

The following table presents the disaggregation of defaulted notes by year of default as of June 30, 2025:

(Expressed in thousands)

As of March 31, 2025

As of June 30, 2025

2020 and prior 1,750

Total $ 4,471

The following table presents activity in the allowance for uncollectibles of defaulted notes for the three months ended March 31, 2025 and 2024:

The following table presents activity in the allowance for uncollectibles of defaulted notes for the three and six months ended June 30, 2025 and 2024:

(Expressed in thousands)

For the Three Months Ended

For the Six Months Ended

2025 2024 2025 2024

Beginning balance $ 2,983 $ 4,091 $ 2,815 $ 3,869

Additions 128 — 296 129

Reversal — ( 93 ) — —

Write-offs ( 255 ) ( 145 ) ( 255 ) ( 145 )

Ending balance $ 2,856 $ 3,853 $ 2,856 $ 3,853

13 unchanged sentences

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

As of March 31, 2025, the Company had right-of-use operating lease assets of $ 131.8 million (net of accumulated amortization of $ 125.0 million) which are comprised of real estate leases of $ 129.1 million (net of accumulated amortization of $ 122.5 million) and equipment leases of $ 2.7 million (net of accumulated amortization of $ 2.5 million).

As of March 31, 2025, the Company had operating lease liabilities of $ 171.5 million which are comprised of real estate lease liabilities of $ 168.9 million and equipment lease liabilities of $ 2.6 million.

The Company had no finance leases as of March 31, 2025.

As of June 30, 2025, the Company had right-of-use operating lease assets of $ 127.2 million (net of accumulated amortization of $ 130.4 million) which are comprised of real estate leases of $ 124.4 million (net of accumulated amortization of $ 128.1 million) and equipment leases of $ 2.8 million (net of accumulated amortization of $ 2.3 million).

As of June 30, 2025, the Company had operating lease liabilities of $ 165.8 million which are comprised of real estate lease liabilities of $ 163.1 million and equipment lease liabilities of $ 2.8 million.

The Company had no finance leases as of June 30, 2025.

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.

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of March 31, 2025 and December 31, 2024, respectively:

March 31, 2025

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of June 30, 2025 and December 31, 2024, respectively:

June 30, 2025

December 31, 2024

1 unchanged sentence

Weighted average discount rate 7.40 % 7.50 %

The following table presents operating lease costs recognized for the three months ended March 31, 2025 and March 31, 2024, 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 six months ended June 30, 2025 and June 30, 2024, 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

2025 2024 2025 2024

Operating lease costs:

5 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

The maturities of lease liabilities as of March 31, 2025 and December 31, 2024 are as follows:

The maturities of lease liabilities as of June 30, 2025 and December 31, 2024 are as follows:

(Expressed in thousands)

March 31, 2025

June 30, 2025

December 31, 2024

8 unchanged sentences

Present value of lease liabilities $ 165,849 $ 173,320

As of March 31, 2025, the Company had $ 3.9 million of additional real estate operating leases that have not yet commenced ($ 6.9 million as of December 31, 2024).

As of June 30, 2025, the Company had $ 1.9 million of additional real estate operating leases that have not yet commenced ($ 6.9 million as of December 31, 2024).

Revenue from contracts with customers

47 unchanged sentences

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 months ended March 31, 2025 and 2024:

(Expressed in thousands) For the Three Months Ended March 31, 2025

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, 2025 and 2024:

(Expressed in thousands) For the Three Months Ended June 30, 2025

Reportable Segments

15 unchanged sentences

Total revenue $ 246,421 $ 122,981 $ 3,776 $ 373,178

(Expressed in thousands) For the Three Months Ended March 31, 2024

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

Reportable Segments

17 unchanged sentences

Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands) For the Six Months Ended June 30, 2025

Reportable Segments

Wealth Management Capital Markets Corporate/Other Total

Revenue from contracts with customers:

Commissions from sales and trading $ 95,970 $ 109,165 $ 25 $ 205,160

Mutual fund and insurance income 15,729 2 12 15,743

Advisory fees 254,402 — 29 254,431

Investment banking - capital markets 5,720 36,987 — 42,707

Investment banking - advisory — 48,449 — 48,449

Bank deposit sweep income 58,729 — — 58,729

Other 7,969 1,655 2,711 12,335

Total revenue from contracts with customers 438,519 196,258 2,777 637,554

Other sources of revenue:

Interest 43,428 27,706 3,252 74,386

Principal transactions, net 1,386 21,846 275 23,507

Other 5,074 432 50 5,556

Total other sources of revenue 49,888 49,984 3,577 103,449

Total revenue $ 488,407 $ 246,242 $ 6,354 $ 741,003

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

Reportable Segments

Wealth Management Capital Markets Corporate/Other Total

Revenue from contracts with customers:

Commissions from sales and trading $ 89,696 $ 87,219 $ 8 $ 176,923

Mutual fund and insurance income 15,970 2 10 15,982

Advisory fees 232,024 — 20 232,044

Investment banking - capital markets 5,828 29,649 ( 1 ) 35,476

Investment banking - advisory 21 44,159 — 44,180

Bank deposit sweep income 71,532 — ( 1 ) 71,531

Other 6,583 900 2,922 10,405

Total revenue from contracts with customers 421,654 161,929 2,958 586,541

Other sources of revenue:

Interest 41,822 15,713 4,036 61,571

Principal transactions, net 2,112 26,299 ( 103 ) 28,308

Other 6,899 283 125 7,307

Total other sources of revenue 50,833 42,295 4,058 97,186

Total revenue $ 472,487 $ 204,224 $ 7,016 $ 683,727

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Contract Assets and Liabilities

2 unchanged sentences

Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied.

The Company had receivables related to revenue from contracts with customers of $ 38.8 million and $ 46.2 million at March 31, 2025 and December 31, 2024, respectively.

The Company had no significant impairments related to these receivables during the three months ended March 31, 2025.

The Company had receivables related to revenue from contracts with customers of $ 45.3 million and $ 46.2 million at June 30, 2025 and December 31, 2024, respectively.

The Company had no significant impairments related to these receivables during the three and six months ended June 30, 2025.

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 $ 1.6 million and $ 0.9 million at March 31, 2025 and December 31, 2024, respectively.

Total deferred revenue was $ 3.3 million and $ 0.9 million at June 30, 2025 and December 31, 2024, 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

March 31, 2025

June 30, 2025

December 31, 2024

28 unchanged sentences

For the Three Months Ended

For the Six Months Ended

2025 2024 2025 2024

Basic weighted average number of shares outstanding 10,520,219 10,327,818 10,493,145 10,367,636

7 unchanged sentences

Diluted $ 1.91 $ 0.92 $ 4.63 $ 3.29

(1) For the three months ended March 31, 2025, the diluted net income per share computation did not include the anti-dilutive effect of 211,250 shares of Class A Stock granted under shared-based compensation arrangements.

For the three months ended March 31, 2024, there were no shares of Class A Stock with an anti-dilutive effect granted under share-based compensation arrangements.

(1) For the three months ended June 30, 2025, the diluted net income per share computation did not include the anti-dilutive effect of 199,850 shares of Class A Stock granted under share-based compensation arrangements.

For the six months ended June 30, 2025, the diluted net income per share computation did not include the anti-dilutive effect of 202,475 shares of Class A Stock granted under share-based compensation arrangements.

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.

Receivable from and payable to brokers, dealers and clearing organizations

(Expressed in thousands)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Receivable from brokers, dealers and clearing organizations consisting of:

11 unchanged sentences

Total $ 527,179 $ 253,816

(1) As of March 31, 2025, approximately $ 11.2 million of this balance represents a receivable for trades executed, but not yet settled (December 31, 2024:

$ 15.4 million).

(1) As of December 31, 2024, approximately $ 15.4 million of this balance represents a receivable for trades executed, but not yet settled.

(2) As of June 30, 2025, approximately $ 89.4 million of this balance represents a payable for trades executed, but not yet settled.

OPPENHEIMER HOLDINGS INC.

13 unchanged sentences

The Company has valued the auction rate 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.

As of March 31, 2025 and December 31, 2024, the Company had $ 128,000 and $ 2.7 million respectively, of auction rate securities in Level 3 assets.

As of June 30, 2025 and December 31, 2024, the Company had $ 128,000 and $ 2.7 million, respectively, of auction rate securities in Level 3 assets.

Additionally, the Company has valued a convertible note using a discount cash flow model and warrants using a Black-Scholes option pricing model and categorized them in Level 3 of the fair value hierarchy due to the models' use of unobservable inputs.

As of June 30, 2025, the Company had $ 1.9 million and $ 1.2 million of convertible note and warrants, respectively, in Level 3 assets.

Derivative financial instruments

6 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 March 31, 2025 and December 31, 2024, the fair value of the investment was $ 5.9 million and $ 5.9 million, respectively, and was categorized in Level 2 of the fair value hierarchy.

As of June 30, 2025 and December 31, 2024, the fair value of the investment was $ 6.3 million and $ 5.9 million, respectively, and was categorized in Level 2 of the fair value hierarchy.

Trade claims are categorized in Level 3 of the fair value hierarchy due to the illiquid nature of the claims and the period of time since the executed prices.

As of March 31, 2025, Company had $ 3.2 million of trade claims in Level 3 assets.

As of June 30, 2025, the Company had no trade claims.

OPPENHEIMER HOLDINGS INC.

3 unchanged sentences

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 March 31, 2025:

The following table provides information about the Company's investments in Company-sponsored funds as of June 30, 2025:

(Expressed in thousands)

26 unchanged sentences

Assets and Liabilities Measured at Fair Value

The Company's assets and liabilities, recorded at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, 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 March 31, 2025 :

The Company's assets and liabilities, recorded at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, 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, 2025 :

(Expressed in thousands)

Fair Value Measurements as of March 31, 2025

Fair Value Measurements as of June 30, 2025

Level 1 Level 2 Level 3 Total

14 unchanged sentences

— 17,771 — 17,771

Trade claims (1)

— — 3,218 3,218

Derivative contracts:

TBAs — 100 — 100

Derivative contracts, total — 100 — 100

Total $ 1,117,618 $ 182,556 $ 3,180 $ 1,303,354

2 unchanged sentences

Agency securities — 1 — 1

Sovereign obligations — 9,159 — 9,159

Corporate debt and other obligations — 14,779 — 14,779

3 unchanged sentences

Derivative contracts:

TBAs — 94 — 94

Derivative contracts, total 846 94 — 940

1 unchanged sentence

(1) Included in other assets on the consolidated balance sheet.

(2) Included in receivable/payable from/to brokers, dealers and clearing organizations the consolidated balance sheet.

(2) Included in receivable/payable from/to brokers, dealers and clearing organizations on the consolidated balance sheet.

OPPENHEIMER HOLDINGS INC.

33 unchanged sentences

(1) Included in other assets on the consolidated balance sheet.

(2) Included in receivable/payable to brokers, dealers and clearing organizations.

(2) Included in receivable/payable to brokers, dealers and clearing organizations on the consolidated balance sheet.

OPPENHEIMER HOLDINGS INC.

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 months ended March 31, 2025 and 2024:

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, 2025 and 2024:

(Expressed in thousands)

Level 3 Assets and Liabilities

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Total Realized

2 unchanged sentences

and Issuances Settlements In (Out) Balance

Corporate equities $ — $ 20 $ 1,170 $ — $ — $ 1,190

Corporate debt and other obligations — 32 1,830 — — 1,862

Auction rate securities (1)

128 — — — — 128

Trade claims 3,218 957 — ( 4,175 ) — —

(1) Represents auction rate securities that failed in the auction rate market.

(2) Included in principal transactions in the consolidated income statement.

(Expressed in thousands)

Level 3 Assets and Liabilities

For the Three Months Ended June 30, 2024

Total Realized

Beginning and Unrealized Purchases Sales and Transfers Ending

Balance Gain (2)

and Issuances Settlements In (Out) Balance

Auction rate securities (1)

4 unchanged sentences

Level 3 Assets and Liabilities

For the Three Months Ended March 31, 2024

For the Six Months Ended June 30, 2025

Total Realized

2 unchanged sentences

and Issuances Settlements In (Out) Balance

Corporate equities $ — 20 1,170 $ — $ — $ 1,190

Corporate debt and other obligations — 32 1,830 — — 1,862

Auction rate securities (1)

2,652 206 — ( 2,730 ) — 128

Trade claims 2,684 957 534 ( 4,175 ) — —

(1) Represents auction rate securities that failed in the auction rate market.

(2) Included in principal transactions in the consolidated income statement.

(Expressed in thousands)

Level 3 Assets and Liabilities

For the Six Months Ended June 30, 2024

Total Realized

Beginning and Unrealized Purchases Sales and Transfers Ending

Balance Gain (2)

and Issuances Settlements In (Out) Balance

Auction rate securities (1)

$ 2,713 $ — $ — $ — $ — $ 2,713

(1) Represents auction rate securities that failed in the auction rate market.

(2) Included in principal transactions in the consolidated income statement.

OPPENHEIMER HOLDINGS INC.

4 unchanged sentences

The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short-term nature of the underlying assets.

Assets and liabilities not measured at fair value as of March 31, 2025:

Assets and liabilities not measured at fair value as of June 30, 2025:

(Expressed in thousands) Fair Value Measurement:

80 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 March 31, 2025 and December 31, 2024 by product were as follows:

The notional amounts and fair values of the Company's derivatives as of June 30, 2025 and December 31, 2024 by product were as follows:

(Expressed in thousands)

Fair Value of Derivative Instruments as of March 31, 2025

Fair Value of Derivative Instruments as of June 30, 2025

Description Notional Fair Value

Derivatives not designated as hedging instruments (1)

Other contracts TBAs $ 12,100 $ 94

Commodity contracts

Futures 500,000 —

Other contracts Forward repurchase agreements 257,188 —

$ 512,100 $ 94

Derivatives not designated as hedging instruments (1)

Commodity contracts

Futures $ 12,370,000 $ 846

Other contracts TBAs 12,100 100

$ 12,382,100 $ 946

(1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments.

14 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 months ended March 31, 2025 and 2024:

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, 2025 and 2024:

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Recognized in Income on Derivatives

Types Description Location Net (Loss)

Types Description Location Net Gain (Loss)

Commodity contracts Futures Principal transactions revenue, net $ 393

Other contracts TBAs Principal transactions revenue, net 16

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Recognized in Income on Derivatives

Types Description Location Net Gain

Types Description Location Net Gain (Loss)

Commodity contracts Futures Principal transactions revenue, net $ 1,184

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

Other contracts TBAs Principal transactions revenue, net 2

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Six Months Ended June 30, 2025

Recognized in Income on Derivatives

Types Description Location Net Gain (Loss)

Commodity contracts Futures Principal transactions revenue, net $ ( 745 )

Other contracts TBAs Principal transactions revenue, net 16

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Six Months Ended June 30, 2024

Recognized in Income on Derivatives

Types Description Location Net Gain (Loss)

Commodity contracts Futures Principal transactions revenue, net $ 4,436

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

Other contracts TBAs Principal transactions revenue, net 3

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Collateralized transactions

5 unchanged sentences

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

As of March 31, 2025, the outstanding balance of bank call loans was $ 359.5 million ($ 252.1 million as of December 31, 2024).

As of March 31, 2025, such loans with commercial banks were collateralized by the Company's securities and customer securities with market values of approximately $ 23.1 million and $ 377.6 million, respectively.

As of March 31, 2025, the Company had approximately $ 1.9 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $ 306 million under securities loan agreements.

As of March 31, 2025, the Company had pledged $ 294.1 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers.

As of March 31, 2025, the Company had no outstanding letters of credit.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

As of June 30, 2025, the outstanding balance of bank call loans was $ 323.8 million ($ 252.1 million as of December 31, 2024).

As of June 30, 2025, such loans with commercial banks were collateralized by the Company's securities and customer securities with market values of approximately $ 41.3 million and $ 320 million, respectively.

As of June 30, 2025, 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 $ 339.1 million under securities loan agreements.

As of June 30, 2025, the Company had pledged $ 182.2 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, 2025, the Company had no outstanding letters of credit.

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.

2 unchanged sentences

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 March 31, 2025:

(Expressed in thousands)

5 unchanged sentences

Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 1,450,937

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 March 31, 2025 and December 31, 2024:

As of March 31, 2025

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

As of June 30, 2025

(Expressed in thousands)

24 unchanged sentences

(2) Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

As of December 31, 2024

25 unchanged sentences

(2) Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

The Company receives collateral in connection with securities borrowed and reverse repurchase agreement transactions and customer margin loans.

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 March 31, 2025, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $ 106.4 million ($ 131.7 million as of December 31, 2024) and $ 292.8 million ($ 68.1 million as of December 31, 2024), respectively, of which the Company has sold and re-pledged approximately $ 43.7 million ($ 39.2 million as of December 31, 2024) under securities loaned transactions and $ 292.8 million under repurchase agreements ($ 68.1 million as of December 31, 2024).

As of June 30, 2025, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $ 137.1 million ($ 131.7 million as of December 31, 2024) and $ 192.8 million ($ 68.1 million as of December 31, 2024), respectively, of which the Company has sold and re-pledged approximately $ 51.5 million ($ 39.2 million as of December 31, 2024) under securities loaned transactions and $ 192.8 million under repurchase agreements ($ 68.1 million as of December 31, 2024).

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 $ 1.2 billion, as presented on the face of the consolidated balance sheet as of March 31, 2025 ($ 1.0 billion as of December 31, 2024).

The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $ 1.1 billion, as presented on the face of the consolidated balance sheet as of June 30, 2025 ($ 1.0 billion as of December 31, 2024).

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.

2 unchanged sentences

In the event the counterparty is unable to meet its contractual obligation to return the securities, the Company may be exposed to off-balance sheet risk of acquiring securities at prevailing market prices.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Credit Concentrations

2 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 March 31, 2025 were receivables from three major U.S.

Included in receivable from brokers, dealers and clearing organizations as of June 30, 2025 were receivables from three major U.S.

broker-dealers totaling approximately $ 99.4 million.

Included in receivable from customers as of March 31, 2025 were fully secured margin loans from our two largest customer accounts totaling approximately $ 686.9 million, comprising 51 % of total margin loans.

Included in receivable from customers as of June 30, 2025 were fully secured margin loans from our two largest customer accounts totaling approximately $ 653.2 million, comprising 49.5 % of total margin loans.

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.

1 unchanged sentence

If clients do not fulfill their contractual obligations, the Company may incur losses.

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), the Options Clearing Corporation and others.

With respect to its business in reverse repurchase and repurchase agreements, all open contracts as of March 31, 2025 are with the FICC .

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 the FICC), the Options Clearing Corporation and others.

With respect to its business in reverse repurchase and repurchase agreements, all open contracts as of June 30, 2025 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 March 31, 2025, the Company had recorded no liabilities with regard to this right.

As of June 30, 2025, 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.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Variable interest entities ("VIEs")

7 unchanged sentences

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

As of June 30, 2025 and December 31, 2024, assets and liabilities related to a VIE where the Company is not the primary beneficiary were included in Securities owned, at fair value on the consolidated balance sheet and primarily related to a convertible note and warrants issued by a beverage manufacturing company.

The maximum loss exposure indicated in the following table relates solely to our investments in, and unfunded commitments to, the VIE.

(Expressed in thousands)

As of June 30,

Assets $ 3,052 $ —

Liabilities — —

Unfunded commitments — —

Maximum loss exposure $ 3,052 $ —

The effective income tax rate for the three and six months ended June 30, 2025 was 32.7 % and 28.9 %, respectively, compared with 35.3 % and 32.5 % for the three and six month ended June 30, 2024, respectively, 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 2025 was positively impacted by higher net income which diluted the unfavorable impact of certain permanent items and nondeductible foreign losses.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table sets forth the total assets and liabilities of VIEs consolidated on our condensed consolidated balance sheet:

(Expressed in thousands)

As of March 31,

Cash and cash equivalents $ — $ 11

Restricted Cash — —

Other Assets — —

Total Assets $ — $ 11

Other Liabilities — 171

Total Liabilities $ — $ 171

The effective income tax rate for the three months ended March 31, 2025 was 25.9 %, compared with 31.3 % for the three months ended March 31, 2024 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 first quarter of 2025 was positively impacted by fewer non-deductible expenses and a higher tax benefit upon the vesting of share awards.

Stockholders' Equity

7 unchanged sentences

For the Three Months Ended

For the Six Months Ended

2025 2024 2025 2024

Class A Stock outstanding, beginning of period 10,425,830 10,247,197 10,231,736 10,186,783

3 unchanged sentences

Stock buy-back

During the year ended December 31, 2023, the Company purchased and canceled an aggregate of 463,335 shares of Class A Stock for a total consideration of $ 17.6 million ($ 38.07 per share) under its share repurchase program.

As of December 31, 2023, 223,699 shares remained available to be purchased under its share repurchase program.

On March 1, 2024, the Company's Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 518,000 shares of the Company's Class A Stock, representing approximately 5.0 % of its 10,357,376 then issued and outstanding shares of Class A Stock.

During the year ended December 31, 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

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

repurchase program.

As of December 31, 2024, 497,893 shares remained available to be purchased under its share repurchase program.

During the three months ended March 31, 2025, the Company purchased and canceled an aggregate of 1,530 shares of Class A Stock for a total consideration of $ 80,950 ($ 58.79 per share) under its share repurchase program.

During the three months ended March 31, 2024, the Company purchased and canceled an aggregate of 214,723 shares of Class A Stock for a total consideration of $ 8.4 million ($ 39.05 per share) under this program.

As of March 31, 2025, 496,363 shares remained available to be purchased under the share repurchase program.

During the three months ended June 30, 2025, the Company purchased and canceled an aggregate of 9,855 shares of Class A Stock for a total consideration of $ 580,396 ($ 58.89 per share) under its share repurchase program.

During the six months ended June 30, 2025, the Company purchased and canceled an aggregate of 11,385 shares of Class A Stock for a total consideration of $ 670,346 ($ 58.88 per share) under its share repurchase program.

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 this 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 this program.

As of June 30, 2025, 486,508 shares remained available to be purchased under the share repurchase program.

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.

4 unchanged sentences

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

On April 25, 2025, the Company announced a quarterly dividend in the amount of $ 0.18 per share, payable on May 23, 2025 to holders of Class A Stock and Class B Stock of record on May 9, 2025.

On August 1, 2025, the Company announced a quarterly dividend in the amount of $ 0.18 per share, payable on August 29, 2025 to holders of Class A Stock and Class B Stock of record on August 15, 2025.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Contingencies

4 unchanged sentences

The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company's business, which may result in expenses, adverse judgments, settlements, fines, penalties, injunctions or other relief.

The investigations include inquiries from the SEC, the Financial Industry Regulatory Authority ("FINRA") and other regulators.

The investigations include inquiries from the Securities and Exchange Commmission (the "SEC"), the Financial Industry Regulatory Authority ("FINRA") and other regulators.

The Company accrues for estimated loss contingencies related to legal and regulatory matters within Other Expenses in the consolidated income statement when available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss.

5 unchanged sentences

For certain other legal and regulatory proceedings, the Company can estimate possible losses, or range of loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses individually, or in the aggregate, will have a material adverse effect on the Company's consolidated financial statements as a whole.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

For legal and regulatory proceedings where there is at least a reasonable possibility that a loss or an additional loss may be incurred, the Company estimates a range of aggregate loss in excess of amounts accrued of up to $ 3 million.

9 unchanged sentences

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.

Plaintiffs in each case subsequently filed an appeal of the court’s order dismissing

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

In May of 2025, the Georgia Court of Appeals upheld the trial court’s decision dismissing the cases.

In May of 2025, plaintiffs filed a writ of certiorari with the Georgia Supreme Court 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.

3 unchanged sentences

The settlement is subject to Oppenheimer obtaining a waiver of certain statutory disqualifications.

In June 2025, Oppenheimer was served with a complaint in an action entitled Liberty Capital Group v.

Oppenheimer Holdings Inc., Oppenheimer & Co.

and Oppenheimer Asset Management Inc., filed in the United States District Court for the Southern District of New York.

Plaintiffs seek class certification and allege that defendants used Oppenheimer’s Advantage Bank Deposit Sweep Program to unlawfully enrich themselves, and accordingly, breached their fiduciary duties and contractual obligations to their customers and otherwise violated New York law.

Plaintiffs allege unspecified damages to be proven at trial.

Defendants intend to vigorously defend themselves against the allegations in the complaint.

Regulatory requirements

2 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 March 31, 2025, the net capital of Oppenheimer as calculated under the Rule was $ 384.1 million or 26.73 % of Oppenheimer's aggregate debit items.

As of June 30, 2025, the net capital of Oppenheimer as calculated under the Rule was $ 408.9 million or 30.56 % of Oppenheimer's aggregate debit items.

This was $ 382.2 million in excess of the minimum required net capital at that date.

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 March 31, 2025, Freedom had net capital of $ 3.7 million, which was $ 3.6 million in excess of the $ 100,000 required to be maintained at that date.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

As of March 31, 2025, the capital required and held under the Financial Conduct Authority's Investment Firms’ Prudential Regime (“IFPR”) for Oppenheimer Europe Ltd.

As of June 30, 2025, Freedom had net capital of $ 3.6 million, which was $ 3.5 million in excess of the $ 100,000 required to be maintained at that date.

As of June 30, 2025, the capital required and held under the Financial Conduct Authority's Investment Firms’ Prudential Regime (“IFPR”) for Oppenheimer Europe Ltd.

was as follows:

2 unchanged sentences

• Total Capital ratio 144 % (required 100.0 %).

As of March 31, 2025, Oppenheimer Europe Ltd.

As of June 30, 2025, Oppenheimer Europe Ltd.

was in compliance with its regulatory requirements.

As of March 31, 2025, the regulatory capital of Oppenheimer Investments Asia Limited was $ 3.0 million, which was $ 2.6 million in excess of the $ 385,718 required to be maintained on that date.

As of June 30, 2025, the regulatory capital of Oppenheimer Investments Asia Limited was $ 2.1 million, which was $ 1.7 million in excess of the $ 382,168 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 March 31, 2025, Oppenheimer Investment Asia Limited was in compliance with its regulatory requirements.

As of March 31, 2025, Oppenheimer Trust is required to maintain minimal capital of $ 4.15 million.

As of June 30, 2025, Oppenheimer Investments Asia Limited was in compliance with its regulatory requirements.

As of June 30, 2025, Oppenheimer Trust is required to maintain minimal capital of $ 4.15 million.

Oppenheimer Trust is currently in compliance with its capital requirements.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Segment information

1 unchanged sentence

The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

The CODM evaluates the performance of the Company’s reportable segments based on their year-over-year revenue and pre-tax profit or loss and uses this measure to allocate resources (including employee, financial and/or capital resources), largely in conjunction with monthly and/or quarterly reviews of segment financial performance.

The CODM evaluates the performance of the Company’s reportable segments based on their year-over-year revenue and pre-tax profit or loss and uses these measures to allocate resources (including employee, financial and/or capital resources), largely in conjunction with monthly and/or quarterly reviews of segment financial performance.

The CODM also uses segment profit or loss in evaluating the incentive and other compensation of segment employees as well as capital investment for facilities and information technology development.

10 unchanged sentences

The costs of certain centralized or shared functions are allocated based on methodologies that reflect utilization.

The Company also includes activities associated with BondWave, LLC in Corporate/Other.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

The tables below present information about the Company’s reported segment revenues, segment pre-tax income or loss, compensation expenses, and other segment items for the three months ended March 31, 2025 and 2024.

The Company also includes activities associated with BondWave, LLC, an indirectly wholly owned subsidiary, in Corporate/Other.

There are no adjustments or reconciling items for any of the periods presented.

1 unchanged sentence

(Expressed in thousands)

For the Three Month Ended March 31, 2025

For the Three Months Ended June 30, 2025

Wealth Management Capital Markets Corporate/Other Total

5 unchanged sentences

(1) Other segment items include communication and technology expenses, occupancy and equipment costs, clearing and exchange fees, interest and other expenses.

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands)

For the Three Month Ended March 31, 2024

For the Three Months Ended June 30, 2024

Wealth Management Capital Markets Corporate/Other Total

5 unchanged sentences

(1) Other segment items include communication and technology expenses, occupancy and equipment costs, clearing and exchange fees, interest and other expenses.

Revenue, classified by the major geographic areas in which it was earned, for the three months ended March 31, 2025 and 2024 was:

(Expressed in thousands)

For the Six Months Ended June 30, 2025

Wealth Management Capital Markets Corporate/Other Total

Revenue $ 488,407 $ 246,242 $ 6,354 $ 741,003

Compensation Expenses 251,939 167,954 46,272 466,165

Other Segment Items (1)

105,770 87,249 8,233 201,252

Pre-Tax Income (Loss) $ 130,698 $ ( 8,961 ) $ ( 48,151 ) $ 73,586

(1) Other segment items include communication and technology expenses, occupancy and equipment costs, clearing and exchange fees, interest and other expenses.

(Expressed in thousands)

For the Six Months Ended June 30, 2024

Wealth Management Capital Markets Corporate/Other Total

Revenue $ 472,487 $ 204,224 $ 7,016 $ 683,727

Compensation Expenses 239,111 154,878 48,453 442,442

Other Segment Items (1)

93,360 77,823 16,782 187,965

Pre-Tax Income (Loss) $ 140,016 $ ( 28,477 ) $ ( 58,219 ) $ 53,320

(1) Other segment items include communication and technology expenses, occupancy and equipment costs, clearing and exchange fees, interest and other expenses.

Revenue, classified by the major geographic areas in which it was earned, for the three months ended June 30, 2025 and 2024 was:

(Expressed in thousands)

For the Three Months Ended

For the Six Months Ended

2025 2024 2025 2024

Americas $ 358,813 $ 316,467 $ 713,521 $ 657,884

Europe/Middle East 13,737 13,394 26,090 24,168

Asia 628 728 1,392 1,675

Total $ 373,178 $ 330,589 $ 741,003 $ 683,727

OPPENHEIMER HOLDINGS INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

Subsequent events

The Company has performed an evaluation of events that occurred since March 31, 2025 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 12.

The Company has performed an evaluation of events that occurred since June 30, 2025 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 12 related to the Company's declaration of a quarterly dividend.

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