Gold prices cool after hitting over 2-week high on Fed independence fears
MINNEAPOLIS - On Friday, Piper Sandler Companies (NYSE:PIPR) reported second quarter 2025 earnings that exceeded analyst expectations, driven by strong performance across its advisory services and institutional brokerage businesses.
The investment bank posted adjusted earnings per share of $2.95, significantly above the analyst estimate of $2.25. Revenue reached $396.79 million, surpassing the consensus estimate of $355.07 million and representing a 17% increase compared to the same quarter last year.
Advisory services revenue grew 12% YoY to $206.2 million, bolstered by strong contributions from the company’s services, industrials, and healthcare industry groups, as well as its debt advisory product team. Municipal financing activity was particularly robust, generating $42 million in revenue - the best quarter since 2021.
"We delivered strong results for the second quarter of 2025 driven by year-over-year revenue growth across many of our businesses, highlighting the benefits of our broad product and sector diversification," said Chad Abraham, chairman and chief executive officer. "A more constructive environment is driving strong client engagement across our businesses and we are well-positioned as the market continues to improve."
Institutional brokerage revenue increased 22% YoY to $112 million, reflecting increased client activity across the platform. Equity brokerage revenue rose 12% to $58.1 million, while fixed income services revenue jumped 37% to $54.3 million.
The company reported a pre-tax margin of 12.3%, up from 8.3% in the second quarter of 2024. The adjusted compensation ratio decreased to 62.0% from 62.9% a year earlier, driven by higher net revenues.
Piper Sandler also announced an increase in its quarterly dividend to $0.70 per share, up from $0.65 previously. During the first half of 2025, the company returned $189 million to shareholders through share repurchases and dividends.
Additionally, the firm announced the pending acquisition of G Squared Capital Partners (WA:CPAP), a boutique investment bank specializing in government services and defense technology based in Washington, D.C.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.