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Piper Sandler Companies — 4Q2024 PSC earnings release (company IR deck)
Piper Sandler Companies (PIPR) · 15 slides · Filed Oct 30, 2026
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Slide 1 — Piper Sandler Companies Reports Fourth Quarter and
Piper Sandler Companies Reports Fourth Quarter and Full Year 2024 Results; Declares Special Dividend of $3.00 Per Share and Quarterly Dividend of $0.65 Per Share MINNEAPOLIS—January 31, 2025—Piper Sandler Companies (NYSE: PIPR), a leading investment bank, today announced its results for the fourth quarter and full year of 2024. "For 2024, we delivered a strong fourth quarter and our second strongest year on record with over $1.5 billion of net revenues. We grew revenues in each of our businesses leading to increased profitability and earnings relative to 2023," said Chad Abraham, chairman and chief executive officer. "We are pleased with our momentum and remain focused on driving revenue growth and returns for our shareholders." Fourth Quarter 2024 Results Full Year 2024 Results U.S. GAAP Adjusted (1) U.S. GAAP Adjusted (1) (Dollars in millions, except per share data) Q4 vs. vs. Q4 vs. vs. vs. vs. 2024 Q3-24 Q4-23 2024 Q3-24 Q4-23 2024 2023 2024 2023 Net revenues $484 35 % 3 % $499 42 % 9 % $1,526 13 % $1,541 16 % Pre-tax margin 17.0 % 1.5pp -1.2pp 24.4 % 6.0pp 2.7pp 14.3 % 5.2pp 19.7 % 3.7pp Net income attributable to Piper Sandler Companies $69 99 % 33 % $87 88 % 20 % $181 112 % $228 37 % Earnings per diluted common share $3.86 97 % 29 % $4.80 87 % 19 % $10.24 106 % $12.69 37 % (1) A non-U.S. GAAP ("non-GAAP") measure. Management believes that presenting results and measures on an adjusted basis alongside U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information." Financial & Business Highlights • Net revenues of $484 million for the fourth quarter of 2024 and adjusted net revenues of $499 million both increased compared to the sequential and prior year quarters. ◦ Advisory services revenues of $280 million represent our third strongest quarter on record, driven by strong contributions from our financial services, energy & power, healthcare and consumer groups. ◦ Corporate financing revenues of $53 million represent our strongest quarter since 2021. • Net revenues and adjusted net revenues of $1.5 billion for 2024 both increased compared to the prior year. ◦ Corporate investment banking revenues of $983 million increased 17% over 2023, driven by more completed transactions, and six of our seven industry groups delivered year-over-year growth. ◦ Municipal financing activity was robust across our specialty sector and governmental businesses, generating revenues of $123 million, up 47% over the prior year and our best year since 2021. ◦ Fixed income services revenues of $186 million were up 11% over 2023, driven by increased activity among our depository clients following the Federal Reserve's action to reduce short-term interest rates. Talent • Hired one managing director into our financial services investment banking group who will operate within our asset and wealth management vertical and focus on advising family offices and their respective portfolio companies. • Bolstered our fixed income team with the hiring of a managing director to serve as head of structured products. • Expanded our energy equity research team with the addition of a senior research analyst covering oilfield services. Capital • Declared a special cash dividend of $3.00 per share of common stock and a quarterly cash dividend of $0.65 per share of common stock on January 31, 2025 to be paid on March 14, 2025 to shareholders of record as of March 4, 2025. • Total dividend for fiscal year 2024 totaled $5.50 per share of common stock, a payout ratio of 43% of adjusted net income. • Returned an aggregate of $140 million to shareholders during 2024 through share repurchases and dividends. 1
Slide 2 — U.S. GAAP Selected Financial Data
U.S. GAAP Selected Financial Data The following summarizes our results on a U.S. GAAP basis. Three Months Ended Twelve Months Ended (Dollars in thousands, except per share data) Dec. 31, Sept. 30, Dec. 31, Change vs. Dec. 31, Dec. 31, 2024 2024 2023 Q3-24 Q4-23 2024 2023 Change Revenues Investment banking: Advisory services $ 279,602 $ 188,047 $ 284,317 49 % -2 % $ 808,746 $ 709,316 14 % Corporate financing 52,751 17,903 30,178 195 % 75 % 173,876 131,077 33 % Municipal financing 41,007 35,520 29,280 15 % 40 % 122,513 83,419 47 % Total investment banking 373,360 241,470 343,775 55 % 9 % 1,105,135 923,812 20 % Institutional brokerage: Equity brokerage 61,232 52,480 55,003 17 % 11 % 215,275 209,512 3 % Fixed income services 56,097 48,454 47,892 16 % 17 % 186,167 168,027 11 % Total institutional brokerage 117,329 100,934 102,895 16 % 14 % 401,442 377,539 6 % Interest income 10,095 7,831 7,302 29 % 38 % 32,908 26,723 23 % Investment income/(loss) (15,400) 10,693 20,235 N/M N/M (7,890) 30,039 N/M Total revenues 485,384 360,928 474,207 34 % 2 % 1,531,595 1,358,113 13 % Interest expense 1,277 1,356 2,356 -6 % -46 % 5,681 10,146 -44 % Net revenues 484,107 359,572 471,851 35 % 3 % 1,525,914 1,347,967 13 % Non-interest expenses Compensation and benefits 316,004 231,014 301,154 37 % 5 % 1,004,173 897,034 12 % Non-compensation expenses 85,974 72,943 84,851 18 % 1 % 303,329 328,347 -8 % Total non-interest expenses 401,978 303,957 386,005 32 % 4 % 1,307,502 1,225,381 7 % Income before income tax expense 82,129 55,615 85,846 48 % -4 % 218,412 122,586 78 % Income tax expense 29,627 15,225 21,273 95 % 39 % 60,972 23,613 158 % Net income $ 52,502 $ 40,390 $ 64,573 30 % -19 % $ 157,440 $ 98,973 59 % Net income attributable to Piper Sandler Companies $ 69,059 $ 34,789 $ 52,025 99 % 33 % $ 181,114 $ 85,491 112 % Earnings per diluted common share $ 3.86 $ 1.96 $ 3.00 97 % 29 % $ 10.24 $ 4.96 106 % Ratios and margin Compensation ratio 65.3 % 64.2 % 63.8 % 65.8 % 66.5 % Non-compensation ratio 17.8 % 20.3 % 18.0 % 19.9 % 24.4 % Pre-tax margin 17.0 % 15.5 % 18.2 % 14.3 % 9.1 % Effective tax rate 36.1 % 27.4 % 24.8 % 27.9 % 19.3 % N/M — Not meaningful 2
Slide 3 — The following table summarizes additional business metrics for the periods presented.
The following table summarizes additional business metrics for the periods presented. Three Months Ended Twelve Months Ended Dec. 31, Sept. 30, Dec. 31, Change vs. Dec. 31, Dec. 31, 2024 2024 2023 Q3-24 Q4-23 2024 2023 Change Advisory services Completed M&A and restructuring transactions 63 57 62 11 % 2 % 220 213 3 % Completed capital advisory transactions 29 14 26 107 % 12 % 68 56 21 % Total completed advisory transactions 92 71 88 30 % 5 % 288 269 7 % Corporate financings Total equity transactions priced 25 11 14 127 % 79 % 81 73 11 % Book run equity transactions priced 19 8 13 138 % 46 % 64 65 -2 % Total debt and preferred transactions priced 9 6 5 50 % 80 % 36 15 140 % Book run debt and preferred transactions priced 5 4 2 25 % 150 % 23 7 229 % Municipal negotiated issues Aggregate par value of issues priced (in billions) $ 4.3 $ 5.5 $ 3.2 -22 % 34 % $ 16.9 $ 12.4 36 % Total issues priced 148 157 100 -6 % 48 % 501 413 21 % Equity brokerage Number of shares traded (in billions) 3.1 2.7 2.6 15 % 19 % 11.3 10.7 6 % NET REVENUES For the fourth quarter of 2024, net revenues of $484.1 million increased 35% compared to the third quarter of 2024 and 3% compared to the fourth quarter of 2023. Net revenues of $1.53 billion for 2024 increased 13% compared to the prior year. Investment banking revenues of $373.4 million for the fourth quarter of 2024 increased 55% compared to the third quarter of 2024 and 9% compared to the fourth quarter of 2023. For 2024, investment banking revenues of $1.11 billion increased 20% compared to 2023. • Advisory services revenues of $279.6 million for the fourth quarter of 2024 increased 49% compared to the third quarter of 2024 driven by more completed deals and a higher average fee. Advisory services revenues for the current quarter were essentially flat compared to the fourth quarter of 2023 as more completed transactions were offset by a lower average fee. Advisory services revenues of $808.7 million for 2024 increased 14% compared to the prior year driven by more completed deals and a higher average fee. We also benefited from increased activity from our private equity clients. Sector contributions were led by our financial services group and a record year from energy & power, followed by our healthcare, consumer and services & industrials teams. • Corporate financing revenues of $52.8 million for the fourth quarter of 2024 increased 195% compared to the third quarter of 2024 and 75% compared to the fourth quarter of 2023 driven by more completed deals. In addition, compared to the sequential quarter, we generated a higher average fee during the current quarter. Corporate financing revenues of $173.9 million for the year increased 33% compared to 2023 driven by more completed deals. Performance was led by our healthcare franchise which served as book runner on 40 of the 42 equity deals the team priced during the year. In addition, we grew our share of financial services corporate equity financings, which drove the year-over-year revenue growth. 3
Slide 4 — Institutional brokerage revenues of $117.3 million for the fourth quarter of 2024 increased 16% compared to the third quarter
• Municipal financing revenues of $41.0 million for the fourth quarter of 2024 increased 15% compared to the third quarter of 2024 and 40% compared to the fourth quarter of 2023 driven by increased issuance activity across our specialty sectors resulting from more accommodative market conditions. Municipal financing revenues of $122.5 million for 2024 increased 47% compared to the prior year driven by increased issuance activity across both our specialty sector and governmental businesses as market conditions improved during 2024 relative to the prior year resulting from increased investor demand. Institutional brokerage revenues of $117.3 million for the fourth quarter of 2024 increased 16% compared to the third quarter of 2024 and 14% compared to the fourth quarter of 2023. Institutional brokerage revenues of $401.4 million for 2024 increased 6% compared to the prior year. • Equity brokerage revenues of $61.2 million for the fourth quarter of 2024 increased 17% compared to the third quarter of 2024 and 11% compared to the fourth quarter of 2023. Equity brokerage revenues of $215.3 million for 2024 increased 3% compared to the prior year. Revenues increased compared to the prior periods due to increased client activity across our full suite of products. • Fixed income services revenues of $56.1 million for the fourth quarter of 2024 increased 16% compared to the third quarter of 2024 and 17% compared to the fourth quarter of 2023 driven by increased activity among our depository clients as banks and credit unions deployed liquidity. In addition, we advised clients on repositioning their balance sheets and executed several restructuring trades. Fixed income services revenues of $186.2 million for 2024 increased 11% compared to the prior year driven by increased activity from our depository clients during the second half of the year following the action of the Federal Reserve to reduce short-term interest rates. Investment income/(loss) for the fourth quarter of 2024 was a loss of $15.4 million compared to income of $10.7 million for the third quarter of 2024 and income of $20.2 million for the fourth quarter of 2023. Investment income/(loss) for 2024 was a loss of $7.9 million compared to income of $30.0 million for 2023. For the current and prior periods, investment income/(loss), which includes amounts attributable to noncontrolling interests, primarily related to the alternative asset management funds we manage. NON-INTEREST EXPENSES For the fourth quarter of 2024, non-interest expenses of $402.0 million increased 32% compared to the third quarter of 2024 and 4% compared to the fourth quarter of 2023. Non-interest expenses of $1.31 billion for 2024 increased 7% compared to the prior year. • Compensation ratio of 65.3% for the fourth quarter of 2024 increased compared to both the third quarter of 2024 and the fourth quarter of 2023 driven by higher acquisition-related compensation expenses as well as the investment loss attributable to noncontrolling interests relative to investment income for the comparable quarters. Compensation ratio of 65.8% for 2024 decreased compared to 66.5% for the year-ago period driven by higher net revenues offset in part by the investment loss attributable to noncontrolling interests compared to investment income for 2023. 4
Slide 5 — Non-compensation expenses of $303.3 million for 2024 decreased 8% compared to 2023 primarily driven by lower
• Non-compensation expenses of $86.0 million for the fourth quarter of 2024 increased 18% compared to the third quarter of 2024 driven primarily by increased reimbursed deal expenses as well as higher non-compensation expenses from acquisition-related agreements. Non-compensation expenses for the fourth quarter of 2024 were essentially flat compared to the fourth quarter of 2023 as the increase in reimbursed deal expenses was offset by lower other operating expenses as well as a decline in restructuring and integration costs. Other operating expenses were higher during the fourth quarter of 2023 resulting from $5.2 million of expenses related to an estimated regulatory settlement with the SEC and CFTC regarding recordkeeping requirements for business-related communications. Non-compensation expenses of $303.3 million for 2024 decreased 8% compared to 2023 primarily driven by lower other operating expenses, decreased acquisition-related intangible asset amortization, and a decline in restructuring and integration costs. Other operating expenses were higher during 2023 resulting from $21.5 million of expenses related to an estimated regulatory settlement with the SEC and CFTC regarding recordkeeping requirements for business-related communications as well as the write-off of a $7.5 million uncollectible receivable in our municipal financing business. PRE-TAX INCOME For the fourth quarter of 2024, we recorded pre-tax income of $82.1 million compared to $55.6 million for the third quarter of 2024 and $85.8 million for the fourth quarter of 2023. Pre-tax income of $218.4 million for 2024 increased 78% compared to the prior year. • Pre-tax margin of 17.0% for the fourth quarter of 2024 increased compared to 15.5% for the third quarter of 2024 resulting from higher net revenues. Pre-tax margin for the current quarter decreased compared to 18.2% for the fourth quarter of 2023 as the increase in net revenues was offset by a higher compensation ratio. Pre-tax margin of 14.3% for 2024 increased compared to 9.1% for 2023 resulting from higher net revenues as well as a lower compensation ratio and non-compensation ratio. EFFECTIVE TAX RATE For the current and prior periods, the effective tax rate is impacted by the level of noncontrolling interests, the amount of non- deductible expenses, and the vesting of restricted stock awards. For the fourth quarter of 2024, the effective tax rate was 36.1% compared to 27.4% for the third quarter of 2024 and 24.8% for the fourth quarter of 2023. The effective tax rate for the current quarter was higher due to the net loss attributable to noncontrolling interests. The effective tax rate for 2024 was 27.9% compared to 19.3% for 2023. The effective tax rate for the current year was higher due to the net loss attributable to noncontrolling interests. NET INCOME & EARNINGS PER SHARE For the fourth quarter of 2024, we generated net income of $69.1 million, or $3.86 per diluted common share. Results for the current quarter increased compared to the third quarter of 2024 due to increased net revenues and a higher pre-tax margin. Results for the current quarter increased compared to the fourth quarter of 2023 due primarily to increased net revenues. For 2024, we generated net income of $181.1 million, or $10.24 per diluted common share. Results for the year increased compared to 2023 driven by an increased net revenues and a higher pre-tax margin. 5
Slide 6 — Non-GAAP Selected Financial Data
Non-GAAP Selected Financial Data The following summarizes our results on an adjusted, non-GAAP basis. Three Months Ended Twelve Months Ended (Dollars in thousands, except per share data) Dec. 31, Sept. 30, Dec. 31, Change vs. Dec. 31, Dec. 31, 2024 2024 2023 Q3-24 Q4-23 2024 2023 Change Adjusted revenues Investment banking: Advisory services $ 279,602 $ 188,047 $ 284,317 49 % -2 % $ 808,746 $ 709,316 14 % Corporate financing 52,751 17,903 30,178 195 % 75 % 173,876 131,077 33 % Municipal financing 41,007 35,520 29,280 15 % 40 % 122,513 83,419 47 % Total investment banking 373,360 241,470 343,775 55 % 9 % 1,105,135 923,812 20 % Institutional brokerage: Equity brokerage 61,232 52,480 55,003 17 % 11 % 215,275 209,512 3 % Fixed income services 56,097 48,454 47,892 16 % 17 % 186,167 168,027 11 % Total institutional brokerage 117,329 100,934 102,895 16 % 14 % 401,442 377,539 6 % Interest income 10,095 7,831 7,302 29 % 38 % 32,908 26,723 23 % Investment income/(loss) (924) 2,965 5,506 N/M N/M 7,238 7,123 2 % Adjusted total revenues 499,860 353,200 459,478 42 % 9 % 1,546,723 1,335,197 16 % Interest expense 1,277 1,356 2,085 -6 % -39 % 5,681 5,000 14 % Adjusted net revenues 498,583 351,844 457,393 42 % 9 % 1,541,042 1,330,197 16 % Adjusted operating expenses Adjusted compensation and benefits 300,475 219,903 290,144 37 % 4 % 955,446 845,976 13 % Adjusted non-compensation expenses 76,698 67,160 68,182 14 % 12 % 281,865 271,278 4 % Adjusted total operating expenses 377,173 287,063 358,326 31 % 5 % 1,237,311 1,117,254 11 % Adjusted operating income $ 121,410 $ 64,781 $ 99,067 87 % 23 % $ 303,731 $ 212,943 43 % Adjusted income tax expense 34,654 18,519 26,422 87 % 31 % 75,506 41,404 82 % Adjusted net income $ 86,756 $ 46,262 $ 72,374 88 % 20 % $ 228,225 $ 166,393 37 % Adjusted earnings per diluted common share $ 4.80 $ 2.57 $ 4.03 87 % 19 % $ 12.69 $ 9.28 37 % Adjusted ratios and margin Adjusted compensation ratio 60.3 % 62.5 % 63.4 % 62.0 % 63.6 % Adjusted non-compensation ratio 15.4 % 19.1 % 14.9 % 18.3 % 20.4 % Adjusted operating margin 24.4 % 18.4 % 21.7 % 19.7 % 16.0 % Adjusted effective tax rate 28.5 % 28.6 % 26.7 % 24.9 % 19.9 % N/M — Not meaningful Throughout this press release, including the table above, we present financial measures that are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Management believes that presenting results and measures on an adjusted basis alongside U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods and enhances the overall understanding of our current financial performance by excluding certain items that may not be indicative of our core operating results. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information." 6
Slide 7 — Adjusted net revenues of $1.54 billion for 2024 increased 16% compared to the prior year resulting from higher revenues
See page 3 for a summary of additional business metrics. ADJUSTED NET REVENUES For the fourth quarter of 2024, adjusted net revenues of $498.6 million increased 42% compared to the third quarter of 2024 driven by higher revenues across all of our businesses. Adjusted net revenues increased 9% compared to the fourth quarter of 2023 as higher revenues across corporate and municipal financing as well as institutional brokerage offset a decline in advisory revenues. Adjusted net revenues of $1.54 billion for 2024 increased 16% compared to the prior year resulting from higher revenues across all of our businesses. ADJUSTED OPERATING EXPENSES For the fourth quarter of 2024, adjusted operating expenses of $377.2 million increased 31% compared to the third quarter of 2024 and 5% compared to the fourth quarter of 2023. Adjusted operating expenses of $1.24 billion for 2024 increased 11% compared to the prior year. • Adjusted compensation ratio of 60.3% for the fourth quarter of 2024 decreased compared to 62.5% for the third quarter of 2024 and 63.4% for the fourth quarter of 2023 driven by higher adjusted net revenues. Adjusted compensation ratio of 62.0% for 2024 decreased compared to 63.6% for the year-ago period driven by higher adjusted net revenues. • Adjusted non-compensation expenses of $76.7 million for the fourth quarter of 2024 increased 14% compared to the third quarter of 2024 and 12% compared to the fourth quarter of 2023 primarily due to higher reimbursed deal expenses as well as increased outside services expenses associated with recruiting and placement fees. Adjusted non-compensation expenses of $281.9 million for 2024 increased 4% compared to the prior year driven by higher outside services expenses, increased marketing and business development costs, and higher reimbursed deal expenses. ADJUSTED OPERATING INCOME For the fourth quarter of 2024, adjusted operating income of $121.4 million increased 87% compared to the third quarter of 2024 and 23% compared to the fourth quarter of 2023. For 2024, adjusted operating income of $303.7 million increased 43% compared to 2023. • Adjusted operating margin of 24.4% for the fourth quarter of 2024 increased compared to 18.4% for the third quarter of 2024 and 21.7% for the fourth quarter of 2023 driven by higher adjusted net revenues and a lower adjusted compensation ratio. Adjusted operating margin of 19.7% for 2024 increased compared to 16.0% for the prior year driven by higher adjusted net revenues as well as a lower adjusted compensation ratio and adjusted non-compensation ratio. ADJUSTED EFFECTIVE TAX RATE For the fourth quarter of 2024, our adjusted effective tax rate was 28.5%, essentially flat compared to 28.6% for the third quarter of 2024. The adjusted effective tax rate for the current quarter increased compared to 26.7% for the fourth quarter of 2023 due to higher non-deductible expenses in 2024. For 2024, our adjusted effective tax rate of 24.9% increased compared to 19.9% for the prior year driven by a lower tax benefit related to the vesting of restricted stock awards. 7
Slide 8 — Capital
ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE For the fourth quarter of 2024, we generated adjusted net income of $86.8 million, or $4.80 of adjusted earnings per diluted common share. Results for the fourth quarter of 2024 increased compared to the third quarter of 2024 and the fourth quarter of 2023 driven primarily by a higher adjusted operating margin. For 2024, we generated adjusted net income of $228.2 million, or $12.69 of adjusted earnings per diluted common share. Results for the current year increased compared to 2023 due to a higher adjusted operating margin, offset in part by a higher adjusted effective tax rate. Capital DIVIDENDS On January 31, 2025, our Board of Directors declared a special cash dividend on the company's common stock of $3.00 per share related to our financial results for fiscal year 2024 to be paid on March 14, 2025, to shareholders of record as of the close of business on March 4, 2025. Including this special cash dividend, our total dividend related to fiscal year 2024 amounts to $5.50 per share of common stock, a payout ratio of 43% of adjusted net income. In addition, our Board of Directors declared a quarterly cash dividend on the company's common stock of $0.65 per share to be paid on March 14, 2025, to shareholders of record as of the close of business on March 4, 2025. During the fourth quarter of 2024, we paid a quarterly cash dividend of $0.65 per share of common stock, for an aggregate of $12.6 million. For 2024, we returned an aggregate of $73.7 million, or $3.50 per share of common stock, to shareholders through quarterly cash dividends and a special cash dividend, which was paid in the first quarter of 2024. SHARE REPURCHASES During the fourth quarter of 2024, we repurchased approximately 22,000 shares, or $6.5 million, of the company's common stock, at an average price of $294.08 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. For 2024, we repurchased approximately 347,000 shares, or $66.4 million, of the company's common stock, at an average price of $191.44 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. Additional Information Dec. 31, Sept. 30, Dec. 31, 2024 2024 2023 Human Capital Full-time employees 1,805 1,813 1,725 Corporate investment banking managing directors 183 184 169 Shareholder Information (amounts in millions) Common shareholders’ equity $ 1,227.8 $ 1,167.3 $ 1,085.5 Shares outstanding: Common shares outstanding 16.1 15.9 15.2 Restricted shares outstanding 1.7 1.9 2.6 Total shares outstanding 17.8 17.8 17.8 8
Slide 9 — Management Conference Call
Management Conference Call Chad Abraham, chairman and chief executive officer; Deb Schoneman, president; and Kate Clune, chief financial officer, will host a conference call to discuss the financial results on Friday, January 31, 2025, at 9 a.m. Eastern Time (8 a.m. Central Time). Participants can access the call by dialing 888 394-8218 (in the U.S.) or +1 773 305-6853 (outside the U.S.) and passcode number 7788151. Callers should dial in at least 15 minutes prior to the call time. The conference call will also be accessible as an audio webcast through the company's website at pipersandler.com/earnings. A replay of the conference call will be available beginning approximately three hours after the event through the same link. About Piper Sandler Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; in the EU through Aviditi Capital Advisors Europe GmbH, authorized and regulated by BaFin as a tied agent of AHP Capital Management GmbH; and in Hong Kong through Piper Sandler Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Alternative asset management and fixed income advisory services are offered through separately registered advisory affiliates. © 2025. Since 1895. Piper Sandler Companies. 800 Nicollet Mall, Minneapolis, Minnesota 55402-7036 Kate Clune Tel: 212 466-7799 [email protected] 9
Slide 10 — Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This press release and the conference call to discuss the contents of this press release contain forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are subject to significant risks and uncertainties that are difficult to predict. These forward-looking statements cover, among other things, statements made about the outlook for future periods, e.g., 2025, for corporate advisory (i.e., M&A), corporate financing, public finance, equity brokerage, and fixed income brokerage, current deal pipelines (or backlogs), growth plans for our businesses, including corporate investment banking and fixed income, our recruiting pipeline, anticipated financial results for future periods (including expectations regarding revenue levels, non-compensation expenses, effective tax rate, compensation ratio, compensation and benefits expense, operating margins, and earnings per share), our strategic priorities, the payment of our quarterly and special cash dividends to our shareholders, our share repurchase program, economic, geopolitical, and market conditions generally, or other similar matters. Forward-looking statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, the following: • the volume of anticipated transactions – including corporate advisory (i.e., M&A), equity financing, and debt financing – and the corresponding revenues from the transactions may vary from quarter to quarter significantly, particularly if there is a decline in macroeconomic conditions or the financial markets; • revenues from corporate advisory (i.e., M&A) engagements and equity and debt financings may vary materially depending on the number, size, and timing of completed transactions, and completed transactions do not generally provide for subsequent engagements; • market, geopolitical and economic conditions or developments may be unfavorable, including in specific sectors in which we operate, and these conditions or developments, such as market fluctuations or volatility, may adversely affect our business, revenue levels and profitability; • market, geopolitical and economic conditions or developments may be unfavorable, including in specific sectors in which we operate, and these conditions or developments, such as market fluctuations or volatility, may adversely affect our business, revenue levels and profitability; • interest rate volatility, especially if the changes are rapid or severe, could negatively impact our fixed income institutional business and the negative impact could be exaggerated by reduced liquidity in the fixed income markets; and • our stock price may fluctuate as a result of several factors, including but not limited to, changes in our revenues and operating results. A further listing and description of these and other risks, uncertainties and important factors can be found in the sections titled "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023, and updated in our subsequent reports filed with the SEC (available at our Web site at www.pipersandler.com and at the SEC Web site at www.sec.gov). Forward-looking statements speak only as of the date they are made, and readers are cautioned not to place undue reliance on them. We undertake no obligation to update them in light of new information or future events. ### 10
Slide 11 — Piper Sandler Companies
Piper Sandler Companies Results of Operations (U.S. GAAP – Unaudited) Investment banking $ 373,360 $ 241,470 $ 343,775 $ 1,105,135 $ 923,812 Institutional brokerage 117,329 100,934 102,895 401,442 377,539 Interest income 10,095 7,831 7,302 32,908 26,723 Investment income/(loss) (15,400) 10,693 20,235 (7,890) 30,039 Total revenues 485,384 360,928 474,207 1,531,595 1,358,113 Interest expense 1,277 1,356 2,356 5,681 10,146 Net revenues 484,107 359,572 471,851 1,525,914 1,347,967 Non-interest expenses Compensation and benefits 316,004 231,014 301,154 1,004,173 897,034 Outside services 15,835 13,525 13,634 55,756 51,754 Occupancy and equipment 17,256 16,481 16,300 66,530 64,356 Communications 13,408 13,712 12,477 54,917 52,718 Marketing and business development 9,712 10,392 8,078 42,239 37,734 Deal-related expenses 12,111 6,050 8,017 30,491 28,189 Trade execution and clearance 5,302 5,153 5,340 19,836 19,972 Restructuring and integration costs 834 775 3,846 2,586 7,749 Intangible asset amortization 2,994 2,572 4,799 10,288 19,440 Other operating expenses 8,522 4,283 12,360 20,686 46,435 Total non-interest expenses 401,978 303,957 386,005 1,307,502 1,225,381 Income before income tax expense 82,129 55,615 85,846 218,412 122,586 Income tax expense 29,627 15,225 21,273 60,972 23,613 Net income 52,502 40,390 64,573 157,440 98,973 Net income/(loss) attributable to noncontrolling interests (16,557) 5,601 12,548 (23,674) 13,482 Net income attributable to Piper Sandler Companies $ 69,059 $ 34,789 $ 52,025 $ 181,114 $ 85,491 Earnings per common share Basic $ 4.30 $ 2.19 $ 3.44 $ 11.44 $ 5.72 Diluted $ 3.86 $ 1.96 $ 3.00 $ 10.24 $ 4.96 Dividends declared per common share $ 0.65 $ 0.65 $ 0.60 $ 3.50 $ 3.65 Weighted average common shares outstanding Basic 16,052 15,921 15,143 15,838 14,958 Diluted 17,870 17,769 17,367 17,695 17,224 Three Months Ended Twelve Months Ended (Amounts in thousands, except per share data) Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, 2024 2024 2023 2024 2023 Revenues 11
Slide 12 — Piper Sandler Companies
Piper Sandler Companies Preliminary Selected Summary Financial Information (Non-GAAP – Unaudited) (1) Adjusted revenues Investment banking $ 373,360 $ 241,470 $ 343,775 $ 1,105,135 $ 923,812 Institutional brokerage 117,329 100,934 102,895 401,442 377,539 Interest income 10,095 7,831 7,302 32,908 26,723 Investment income/(loss) (924) 2,965 5,506 7,238 7,123 Adjusted total revenues 499,860 353,200 459,478 1,546,723 1,335,197 Interest expense 1,277 1,356 2,085 5,681 5,000 Adjusted net revenues (2) 498,583 351,844 457,393 1,541,042 1,330,197 Adjusted operating expenses Adjusted compensation and benefits (3) 300,475 219,903 290,144 955,446 845,976 Adjusted non-compensation expenses (4) 76,698 67,160 68,182 281,865 271,278 Adjusted total operating expenses (5) 377,173 287,063 358,326 1,237,311 1,117,254 Adjusted operating income (6) 121,410 64,781 99,067 303,731 212,943 Interest expense on long-term financing — — 271 — 5,146 Adjusted income before adjusted income tax expense (7) 121,410 64,781 98,796 303,731 207,797 Adjusted income tax expense (8) 34,654 18,519 26,422 75,506 41,404 Adjusted net income (9) $ 86,756 $ 46,262 $ 72,374 $ 228,225 $ 166,393 Adjusted earnings per diluted common share (10) $ 4.80 $ 2.57 $ 4.03 $ 12.69 $ 9.28 Adjusted weighted average diluted common shares outstanding (11) 18,060 18,009 17,937 17,988 17,939 Adjusted ratios and margin Adjusted compensation ratio (12) 60.3 % 62.5 % 63.4 % 62.0 % 63.6 % Adjusted non-compensation ratio (13) 15.4 % 19.1 % 14.9 % 18.3 % 20.4 % Adjusted operating margin (14) 24.4 % 18.4 % 21.7 % 19.7 % 16.0 % Adjusted effective tax rate (15) 28.5 % 28.6 % 26.7 % 24.9 % 19.9 % Three Months Ended Twelve Months Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (Amounts in thousands, except per share data) 2024 2024 2023 2024 2023 This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information." 12
Slide 13 — Piper Sandler Companies
Net revenues: Net revenues – U.S. GAAP basis $ 484,107 $ 359,572 $ 471,851 $ 1,525,914 $ 1,347,967 Adjustments: Investment (income)/loss related to noncontrolling interests (16) 14,476 (7,728) (14,729) 15,128 (22,916) Interest expense on long-term financing — — 271 — 5,146 Adjusted net revenues $ 498,583 $ 351,844 $ 457,393 $ 1,541,042 $ 1,330,197 Compensation and benefits: Compensation and benefits – U.S. GAAP basis $ 316,004 $ 231,014 $ 301,154 $ 1,004,173 $ 897,034 Adjustment: Compensation from acquisition-related agreements (15,529) (11,111) (11,010) (48,727) (51,058) Adjusted compensation and benefits $ 300,475 $ 219,903 $ 290,144 $ 955,446 $ 845,976 Non-compensation expenses: Non-compensation expenses – U.S. GAAP basis $ 85,974 $ 72,943 $ 84,851 $ 303,329 $ 328,347 Adjustments: Non-compensation expenses related to noncontrolling interests (16) (2,081) (2,127) (2,181) (8,546) (9,434) Restructuring and integration costs (834) (775) (3,846) (2,586) (7,749) Amortization of intangible assets related to acquisitions (2,994) (2,572) (4,799) (10,288) (19,440) Non-compensation expenses from acquisition-related agreements (2,780) (309) (658) (3,089) 1,102 Non-compensation expenses from regulatory settlements (587) — (5,185) 3,045 (21,548) Adjusted non-compensation expenses $ 76,698 $ 67,160 $ 68,182 $ 281,865 $ 271,278 Income before income tax expense: Income before income tax expense – U.S. GAAP basis $ 82,129 $ 55,615 $ 85,846 $ 218,412 $ 122,586 Adjustments: Investment (income)/loss related to noncontrolling interests (16) 14,476 (7,728) (14,729) 15,128 (22,916) Interest expense on long-term financing — — 271 — 5,146 Non-compensation expenses related to noncontrolling interests (16) 2,081 2,127 2,181 8,546 9,434 Compensation from acquisition-related agreements 15,529 11,111 11,010 48,727 51,058 Restructuring and integration costs 834 775 3,846 2,586 7,749 Amortization of intangible assets related to acquisitions 2,994 2,572 4,799 10,288 19,440 Non-compensation expenses from acquisition-related agreements 2,780 309 658 3,089 (1,102) Non-compensation expenses from regulatory settlements 587 — 5,185 (3,045) 21,548 Adjusted operating income $ 121,410 $ 64,781 $ 99,067 $ 303,731 $ 212,943 Interest expense on long-term financing — — (271) — (5,146) Adjusted income before adjusted income tax expense $ 121,410 $ 64,781 $ 98,796 $ 303,731 $ 207,797 Continued on next page Three Months Ended Twelve Months Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (Amounts in thousands, except per share data) 2024 2024 2023 2024 2023 Piper Sandler Companies Reconciliation of U.S. GAAP to Selected Summary Financial Information (1) (Unaudited) 13
Slide 14 — Piper Sandler Companies
Income tax expense: Income tax expense – U.S. GAAP basis $ 29,627 $ 15,225 $ 21,273 $ 60,972 $ 23,613 Tax effect of adjustments: Compensation from acquisition-related agreements 3,293 2,325 2,507 10,224 10,467 Restructuring and integration costs 126 205 1,046 590 2,053 Amortization of intangible assets related to acquisitions 741 682 1,375 2,675 5,152 Non-compensation expenses from acquisition-related agreements 715 82 162 797 (292) Non-compensation expenses from regulatory settlements 152 — 59 248 411 Adjusted income tax expense $ 34,654 $ 18,519 $ 26,422 $ 75,506 $ 41,404 Net income attributable to Piper Sandler Companies: Net income attributable to Piper Sandler Companies – U.S. GAAP basis $ 69,059 $ 34,789 $ 52,025 $ 181,114 $ 85,491 Adjustments: Compensation from acquisition-related agreements 12,236 8,786 8,503 38,503 40,591 Restructuring and integration costs 708 570 2,800 1,996 5,696 Amortization of intangible assets related to acquisitions 2,253 1,890 3,424 7,613 14,288 Non-compensation expenses from acquisition-related agreements 2,065 227 496 2,292 (810) Non-compensation expenses from regulatory settlements 435 — 5,126 (3,293) 21,137 Adjusted net income $ 86,756 $ 46,262 $ 72,374 $ 228,225 $ 166,393 Earnings per diluted common share: Earnings per diluted common share – U.S. GAAP basis $ 3.86 $ 1.96 $ 3.00 $ 10.24 $ 4.96 Adjustment for inclusion of unvested acquisition-related stock (0.05) (0.03) (0.15) (0.20) (0.38) $ 3.81 $ 1.93 $ 2.85 $ 10.04 $ 4.58 Adjustments: Compensation from acquisition-related agreements 0.68 0.49 0.49 2.17 2.36 Restructuring and integration costs 0.04 0.03 0.16 0.11 0.33 Amortization of intangible assets related to acquisitions 0.13 0.11 0.20 0.43 0.83 Non-compensation expenses from acquisition-related agreements 0.12 0.01 0.03 0.13 (0.05) Non-compensation expenses from regulatory settlements 0.02 — 0.30 (0.19) 1.23 Adjusted earnings per diluted common share $ 4.80 $ 2.57 $ 4.03 $ 12.69 $ 9.28 Weighted average diluted common shares outstanding: Weighted average diluted common shares outstanding – U.S. GAAP basis 17,870 17,769 17,367 17,695 17,224 Adjustment: Unvested acquisition-related restricted stock with service conditions 190 240 570 293 715 Adjusted weighted average diluted common shares outstanding 18,060 18,009 17,937 17,988 17,939 Three Months Ended Twelve Months Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (Amounts in thousands, except per share data) 2024 2024 2023 2024 2023 This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. Piper Sandler Companies Reconciliation of U.S. GAAP to Selected Summary Financial Information (1) (Unaudited) 14
Slide 15 — Piper Sandler Companies
Piper Sandler Companies Notes to Non-GAAP Financial Schedules (1) Selected Summary Financial Information are non-GAAP measures. Management believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods. (2) A non-GAAP measure which excludes (a) investment (income)/loss related to noncontrolling interests (see (16) below) and (b) interest expense on long-term financing. (3) A non-GAAP measure which excludes compensation expenses from acquisition-related agreements. (4) A non-GAAP measure which excludes (a) non-compensation expenses related to noncontrolling interests (see (16) below), (b) restructuring and integration costs related to acquisitions and/or headcount reductions, (c) amortization of intangible assets related to acquisitions, (d) non-compensation expenses from acquisition-related agreements and (e) non-compensation expenses from regulatory settlements with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). (5) A non-GAAP measure which is computed as the summation of adjusted compensation and benefits and adjusted non-compensation expenses (see (3) and (4) above). (6) A non-GAAP measure which excludes (a) investment (income)/loss and non-compensation expenses related to noncontrolling interests (see (16) below), (b) interest expense on long-term financing, (c) compensation and non-compensation expenses from acquisition-related agreements, (d) restructuring and integration costs related to acquisitions and/or headcount reductions, (e) amortization of intangible assets related to acquisitions and (f) non-compensation expenses from regulatory settlements with the SEC and CFTC. (7) A non-GAAP measure which excludes (a) investment (income)/loss and non-compensation expenses related to noncontrolling interests (see (16) below), (b) compensation and non-compensation expenses from acquisition-related agreements, (c) restructuring and integration costs related to acquisitions and/or headcount reductions, (d) amortization of intangible assets related to acquisitions and (e) non-compensation expenses from regulatory settlements with the SEC and CFTC. (8) A non-GAAP measure which includes the income tax effect of the adjustments for (a) compensation and non-compensation expenses from acquisition-related agreements, (b) restructuring and integration costs related to acquisitions and/or headcount reductions, (c) amortization of intangible assets related to acquisitions and (d) non-compensation expenses from regulatory settlements with the SEC and CFTC. (9) A non-GAAP measure which represents net income attributable to Piper Sandler Companies adjusted for (a) the exclusion of compensation and non-compensation expenses from acquisition-related agreements, (b) the exclusion of restructuring and integration costs related to acquisitions and/or headcount reductions, (c) the exclusion of amortization of intangible assets related to acquisitions, (d) the exclusion of non-compensation expenses from regulatory settlements with the SEC and CFTC and (e) the income tax impact allocated to the adjustments. (10) A non-GAAP measure which is computed based on a quotient of which the numerator is adjusted net income and the denominator is adjusted weighted average diluted common shares outstanding. (11) A non-GAAP measure which assumes the vesting of restricted stock with service conditions granted pursuant to all acquisitions since January 1, 2020. (12) A non-GAAP measure which represents adjusted compensation and benefits expenses as a percentage of adjusted net revenues. (13) A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenues. (14) A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenues. (15) A non-GAAP measure which represents adjusted income tax expense as a percentage of adjusted income before adjusted income tax expense. (16) Noncontrolling interests include investment income/(loss) and non-compensation expenses from consolidated alternative asset management entities that are not attributable, either directly or indirectly, to Piper Sandler Companies. 15