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- **Record Q3 Performance**: Net revenues of $455 million (+29% YoY), operating margin of 21.2%, and EPS of $3.82 reflect strong execution across financial services and healthcare sectors.
- **Bank M&A Dominance**: Advised 6 of 10 largest U.S. bank M&A deals in Q3, with pipeline activity accelerating into Q4.
- **Tech Sector Expansion**: Technology group headcount expanded by 8 MDs, targeting the $1.2 billion government services and defense tech fee pool.
- **Margin Growth Potential**: Operating margin target of 20%+ achievable through disciplined expense management and top-line growth.

**【Management Opening Remarks】**
- Piper Sandler reported Q3 2025 net revenues of $455 million, up 12% sequentially and 29% year-over-year, driven by equity capital markets activity and improved market conditions.
- The company emphasized a constructive market environment for core sectors (healthcare, financial services) and strong execution across all business lines.

**【CEO Commentary】**
- **Revenue Growth**: Q3 operating margin of 21.2% and adjusted EPS of $3.82, reflecting 8 consecutive quarters of year-over-year growth.
- **Key Sectors**: Financial services and healthcare advisory businesses led growth, with 6 of the 10 largest U.S. bank M&A deals advised by Piper Sandler.
- **Strategic Investments**: Expansion of technology group with 8 new MDs and acquisition of G Squared, targeting the $1.2 billion government services and defense tech fee pool.
- **Fourth Quarter Outlook**: Advisory pipeline remains robust, with expectations for similar Q4 2025 advisory revenues to Q4 2024.

**【CFO Financial Commentary】**
- **Financial Highlights**: Year-to-date 2025 net revenues of $1.2 billion (+19% YoY), operating margin of 19.2%, and $69 million net income in Q3.
- **Expense Management**: Compensation ratio improved to 61.7% (Q3) and 62% (YTD), with disciplined cost control offsetting higher occupancy expenses.
- **Capital Allocation**: $204 million returned to shareholders YTD, including $105 million in share buybacks and $99 million in dividends.

**【Q&A Highlights】**
- **Bank M&A Momentum**: Q3 saw 6 of 10 largest U.S. bank M&A deals advised by Piper Sandler, with pipeline activity accelerating in Q4.
- **Tech Sector Expansion**: Technology group headcount expanded by 8 MDs, targeting government services and AI/ML capabilities.
- **Government Shutdown Risks**: Regulatory delays could impact Q4 corporate financing and M&A timelines, but long-term trends remain favorable.
- **Margin Potential**: Operating margin target of 20%+ achievable through expense discipline and top-line growth, with Q3 margin of 19.2% YTD.
- **Municipal Financing Outlook**: Refunding activity expected to accelerate in 2026 as rates stabilize, with Q3 municipal revenues up 8% YoY.
- **Fixed Income Brokerage**: Balance sheet restructuring activity tied to M&A transactions driving fee growth, with private equity advisory pipelines expanding.


Piper Sandler Companies (PIPR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PIPR

PIPR fundamentals

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