Earnings release
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Piper Sandler Companies Reports Second Quarter 2025 Results; Increases Quarterly Dividend to $0.70 Per Share MINNEAPOLIS—August 1, 2025—Piper Sandler Companies (NYSE: PIPR), a leading investment bank, today announced its results for the second quarter of 2025. "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." Second Quarter 2025 Results U.S. GAAP Adjusted (1) (Dollars in millions, except per share data) Q2 vs. vs. Q2 vs. vs. 2025 Q1-25 Q2-24 2025 Q1-25 Q2-24 Net revenues $397 11 % 17 % $405 6 % 14 % Pre-tax margin 12.3 % 4.1pp 4.0pp 18.1 % 0.2pp 0.8pp Net income attributable to Piper Sandler Companies $42 -35 % 21 % $53 -28 % 17 % Earnings per diluted common share $2.38 -35 % 21 % $2.95 -28 % 17 % (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 $397 million for the second quarter of 2025 and adjusted net revenues of $405 million increased compared to the year-ago quarter. ◦ Advisory services revenues of $206 million grew 12% year-over-year driven by strong contributions from our services & industrials and healthcare industry groups, and our debt advisory product team. ◦ Municipal financing activity was robust, generating revenues of $42 million, the best quarter since 2021. ◦ Institutional brokerage delivered $112 million of revenues, up 22% over the second quarter of 2024, driven by increased client activity across the platform. • Net revenues of $754 million for the first half of 2025 and adjusted net revenues of $789 million increased over the prior year period by 11% and 14%, respectively, powered by a 24% growth in advisory services revenues. • Today, we announced the pending acquisition of G Squared Capital Partners, a boutique investment bank specializing in government services and defense technology based in the Washington, D.C. area. Talent • Strengthened our private capital advisory group with the hiring of an investment banking managing director to serve as co- head of secondary capital advisory. • Hired three investment banking managing directors to strengthen our insurance team, expand our healthcare group in the biopharma sector, and enhance our technology franchise. Capital • Increased the quarterly cash dividend to $0.70 per share of common stock, which will be paid on September 12, 2025 to shareholders of record as of August 29, 2025. • Returned an aggregate of $189 million to shareholders during the first half of 2025 through share repurchases and dividends. 1
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U.S. GAAP Selected Financial Data The following summarizes our results on a U.S. GAAP basis. Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30, Mar. 31, June 30, Change vs. June 30, June 30, 2025 2025 2024 Q1-25 Q2-24 2025 2024 Change Revenues Investment banking: Advisory services $ 206,202 $ 216,800 $ 183,908 -5 % 12 % $ 423,002 $ 341,097 24 % Corporate financing 34,976 35,729 50,641 -2 % -31 % 70,705 103,222 -32 % Municipal financing 41,907 26,403 25,233 59 % 66 % 68,310 45,986 49 % Total investment banking 283,085 278,932 259,782 1 % 9 % 562,017 490,305 15 % Institutional brokerage: Equity brokerage 58,083 54,254 52,075 7 % 12 % 112,337 101,563 11 % Fixed income services 54,291 45,002 39,662 21 % 37 % 99,293 81,616 22 % Total institutional brokerage 112,374 99,256 91,737 13 % 22 % 211,630 183,179 16 % Interest income 7,947 9,963 6,676 -20 % 19 % 17,910 14,982 20 % Investment loss (4,829) (29,597) (17,351) N/M N/M (34,426) (3,183) N/M Total revenues 398,577 358,554 340,844 11 % 17 % 757,131 685,283 10 % Interest expense 1,799 1,282 1,665 40 % 8 % 3,081 3,048 1 % Net revenues 396,778 357,272 339,179 11 % 17 % 754,050 682,235 11 % Non-interest expenses Compensation and benefits 258,216 248,457 234,709 4 % 10 % 506,673 457,155 11 % Non-compensation expenses 89,638 79,382 76,224 13 % 18 % 169,020 144,412 17 % Total non-interest expenses 347,854 327,839 310,933 6 % 12 % 675,693 601,567 12 % Income before income tax expense/ (benefit) 48,924 29,433 28,246 66 % 73 % 78,357 80,668 -3 % Income tax expense/(benefit) 17,169 (7,335) 13,276 N/M 29 % 9,834 16,120 -39 % Net income $ 31,755 $ 36,768 $ 14,970 -14 % 112 % $ 68,523 $ 64,548 6 % Net income attributable to Piper Sandler Companies $ 42,182 $ 64,915 $ 34,773 -35 % 21 % $ 107,097 $ 77,266 39 % Earnings per diluted common share $ 2.38 $ 3.65 $ 1.97 -35 % 21 % $ 6.03 $ 4.40 37 % Ratios and margin Compensation ratio 65.1 % 69.5 % 69.2 % 67.2 % 67.0 % Non-compensation ratio 22.6 % 22.2 % 22.5 % 22.4 % 21.2 % Pre-tax margin 12.3 % 8.2 % 8.3 % 10.4 % 11.8 % Effective tax rate 35.1 % -24.9 % 47.0 % 12.6 % 20.0 % N/M — Not meaningful 2
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The following table summarizes additional business metrics for the periods presented. Three Months Ended Six Months Ended June 30, Mar. 31, June 30, Change vs. June 30, June 30, 2025 2025 2024 Q1-25 Q2-24 2025 2024 Change Advisory services Completed M&A and restructuring transactions 49 42 52 17 % -6 % 91 100 -9 % Completed capital advisory transactions 22 13 16 69 % 38 % 35 25 40 % Total completed advisory transactions 71 55 68 29 % 4 % 126 125 1 % Corporate financings Total equity transactions priced 16 15 20 7 % -20 % 31 45 -31 % Book run equity transactions priced 12 11 17 9 % -29 % 23 37 -38 % Total debt and preferred transactions priced 10 12 11 -17 % -9 % 22 21 5 % Book run debt and preferred transactions priced 8 8 8 — % — % 16 14 14 % Municipal negotiated issues Aggregate par value of issues priced (in billions) $ 5.7 $ 3.4 $ 3.2 68 % 78 % $ 9.0 $ 7.2 25 % Total issues priced 175 94 110 86 % 59 % 269 196 37 % Equity brokerage Number of shares traded (in billions) 2.9 2.9 2.8 — % 4 % 5.8 5.4 7 % NET REVENUES For the second quarter of 2025, net revenues of $396.8 million increased 11% compared to the first quarter of 2025 and 17% compared to the second quarter of 2024. Investment banking revenues of $283.1 million for the second quarter of 2025 were essentially flat compared to the first quarter of 2025 and increased 9% compared to the second quarter of 2024. • Advisory services revenues of $206.2 million for the second quarter of 2025 decreased 5% compared to the first quarter of 2025 driven by a lower average fee offset in part by more completed transactions. Advisory services revenues for the current quarter increased 12% compared to the second quarter of 2024 driven by a higher average fee with strong results from our debt advisory product team, highlighting the benefits of our diverse product offerings. • Corporate financing revenues of $35.0 million for the second quarter of 2025 were essentially flat compared to the first quarter of 2025 and decreased 31% compared second quarter of 2024 driven by a lower average fee and fewer completed financings. Performance during the quarter was led by capital raising activity for our financial services clients. • Municipal financing revenues of $41.9 million for the second quarter of 2025 increased 59% compared to the first quarter of 2025 and 66% compared to the second quarter of 2024 driven by increased issuance activity across both our governmental and specialty sector businesses resulting from more accommodative market conditions. Institutional brokerage revenues of $112.4 million for the second quarter of 2025 increased 13% compared to the first quarter of 2025 and 22% compared to the second quarter of 2024. • Equity brokerage revenues of $58.1 million for the second quarter of 2025 increased 7% compared to the first quarter of 2025 and 12% compared to the second quarter of 2024 driven by higher volatility. • Fixed income services revenues of $54.3 million for the second quarter of 2025 increased 21% compared to the first quarter of 2025 and 37% compared to the second quarter of 2024 driven by increased activity among our depository clients as we executed several balance sheet restructuring trades. 3
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Investment income/(loss) for the second quarter of 2025 was a loss of $4.8 million compared to a loss of $29.6 million for the first quarter of 2025 and a loss of $17.4 million for the second quarter of 2024. For the current and prior periods, investment income/(loss) includes amounts attributable to noncontrolling interests primarily related to the alternative asset funds we manage. NON-INTEREST EXPENSES For the second quarter of 2025, non-interest expenses of $347.9 million increased 6% compared to the first quarter of 2025 and 12% compared to the second quarter of 2024. • Compensation ratio of 65.1% for the second quarter of 2025 decreased compared to the first quarter of 2025 and the second quarter of 2024 driven primarily by higher net revenues. • Non-compensation expenses of $89.6 million for the second quarter of 2025 increased 13% compared to the first quarter of 2025 and 18% compared to the second quarter of 2024 driven by higher reimbursed deal expenses. In addition, non-compensation expenses for the current quarter included $5.0 million of restructuring and integration costs related to headcount reductions, as well as vacated office space associated with our acquisition of Aviditi Advisors. PRE-TAX INCOME For the second quarter of 2025, we recorded pre-tax income of $48.9 million compared to $29.4 million for the first quarter of 2025 and $28.2 million for the second quarter of 2024. • Pre-tax margin of 12.3% for the second quarter of 2025 increased compared to 8.2% for the first quarter of 2025 and 8.3% for the second quarter of 2024. Pre-tax margin was higher for the current quarter driven by increased net revenues and a lower 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 second quarter of 2025, the effective tax rate of 35.1% was elevated due to the net loss attributable to noncontrolling interests. The effective tax rate of negative 24.9% for the first quarter of 2025 included $25.4 million of tax benefits related to the vesting of restricted stock awards. For the second quarter of 2024, the effective tax rate of 47.0% was elevated due to the net loss attributable to noncontrolling interests. NET INCOME & EARNINGS PER SHARE For the second quarter of 2025, we generated net income of $42.2 million, or $2.38 per diluted common share. Results for the current quarter decreased compared to the first quarter of 2025 which included $25.4 million, or $1.43 per diluted common share, of income tax benefits related to the vesting of restricted stock awards. Results for the current quarter increased compared to the second quarter of 2024 due to increased net revenues, a higher pre-tax margin and a lower effective tax rate. 4
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Non-GAAP Selected Financial Data The following summarizes our results on an adjusted, non-GAAP basis. Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30, Mar. 31, June 30, Change vs. June 30, June 30, 2025 2025 2024 Q1-25 Q2-24 2025 2024 Change Adjusted revenues Investment banking: Advisory services $ 206,202 $ 216,800 $ 183,908 -5 % 12 % $ 423,002 $ 341,097 24 % Corporate financing 34,976 35,729 50,641 -2 % -31 % 70,705 103,222 -32 % Municipal financing 41,907 26,403 25,233 59 % 66 % 68,310 45,986 49 % Total investment banking 283,085 278,932 259,782 1 % 9 % 562,017 490,305 15 % Institutional brokerage: Equity brokerage 58,083 54,254 52,075 7 % 12 % 112,337 101,563 11 % Fixed income services 54,291 45,002 39,662 21 % 37 % 99,293 81,616 22 % Total institutional brokerage 112,374 99,256 91,737 13 % 22 % 211,630 183,179 16 % Interest income 7,947 9,963 6,676 -20 % 19 % 17,910 14,982 20 % Investment income/(loss) 3,781 (3,559) 180 N/M N/M 222 5,197 -96 % Adjusted total revenues 407,187 384,592 358,375 6 % 14 % 791,779 693,663 14 % Interest expense 1,799 1,282 1,665 40 % 8 % 3,081 3,048 1 % Adjusted net revenues 405,388 383,310 356,710 6 % 14 % 788,698 690,615 14 % Adjusted operating expenses Adjusted compensation and benefits 251,340 239,569 224,370 5 % 12 % 490,909 435,068 13 % Adjusted non-compensation expenses 80,676 75,197 70,746 7 % 14 % 155,873 138,007 13 % Adjusted total operating expenses 332,016 314,766 295,116 5 % 13 % 646,782 573,075 13 % Adjusted operating income 73,372 68,544 61,594 7 % 19 % 141,916 117,540 21 % Adjusted income tax expense/(benefit) 20,631 (4,951) 16,373 N/M 26 % 15,680 22,335 -30 % Adjusted net income $ 52,741 $ 73,495 $ 45,221 -28 % 17 % $ 126,236 $ 95,205 33 % Adjusted earnings per diluted common share $ 2.95 $ 4.09 $ 2.52 -28 % 17 % $ 7.04 $ 5.31 33 % Adjusted ratios and margin Adjusted compensation ratio 62.0 % 62.5 % 62.9 % 62.2 % 63.0 % Adjusted non-compensation ratio 19.9 % 19.6 % 19.8 % 19.8 % 20.0 % Adjusted operating margin 18.1 % 17.9 % 17.3 % 18.0 % 17.0 % Adjusted effective tax rate 28.1 % -7.2 % 26.6 % 11.0 % 19.0 % 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." 5
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See page 3 for a summary of additional business metrics. ADJUSTED NET REVENUES For the second quarter of 2025, adjusted net revenues of $405.4 million increased 6% compared to the first quarter of 2025 driven by robust activity from our municipal financing and institutional brokerage businesses. Adjusted net revenues increased 14% compared to the second quarter of 2024 driven by growth in advisory services revenues as well as strong results from our institutional brokerage and municipal financing businesses, which more than offset the decline in corporate financing activity. ADJUSTED OPERATING EXPENSES For the second quarter of 2025, adjusted operating expenses of $332.0 million increased 5% compared to the first quarter of 2025 and 13% compared to the second quarter of 2024. • Adjusted compensation ratio of 62.0% for the second quarter of 2025 decreased compared to 62.5% for the first quarter of 2025 and 62.9% for the second quarter of 2024 driven by higher adjusted net revenues. • Adjusted non-compensation expenses of $80.7 million for the second quarter of 2025 increased 7% compared to the first quarter of 2025 and 14% compared to the second quarter of 2024 driven by higher reimbursed deal expenses. In addition, adjusted non-compensation expenses increased compared to the second quarter of 2024 due to outside services expenses, including higher legal fees as well as increased professional fees associated with technology consulting services. ADJUSTED OPERATING INCOME For the second quarter of 2025, adjusted operating income of $73.4 million increased 7% compared to the first quarter of 2025 and 19% compared to the second quarter of 2024. • Adjusted operating margin of 18.1% for the second quarter of 2025 increased compared to 17.9% for the first quarter of 2025 and 17.3% for the second quarter of 2024 driven by higher adjusted net revenues and a lower adjusted compensation ratio. ADJUSTED EFFECTIVE TAX RATE For the second quarter of 2025, our adjusted effective tax rate of 28.1% increased compared to 26.6% for the second quarter of 2024 which benefitted from lower non-deductible expenses. The adjusted effective tax rate of negative 7.2% for the first quarter of 2025 included $25.4 million of tax benefits related to the vesting of restricted stock awards. ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE For the second quarter of 2025, we generated adjusted net income of $52.7 million, or $2.95 of adjusted earnings per diluted common share. Results for the current quarter decreased compared to the first quarter of 2025 which included $25.4 million, or $1.41 per diluted common share, of income tax benefits related to the vesting of restricted stock awards. Results for the current quarter increased compared to the second quarter of 2024 due primarily to higher adjusted net revenues and adjusted operating margin. Capital DIVIDENDS On August 1, 2025, our Board of Directors declared a quarterly cash dividend on the company's common stock of $0.70 per share, an increase of $0.05 compared to the previous quarterly cash dividend. The dividend will be paid on September 12, 2025, to shareholders of record as of the close of business on August 29, 2025. During the second quarter of 2025, we paid a quarterly cash dividend of $0.65 per share of common stock, for an aggregate of $17.1 million. For the first half of 2025, we returned an aggregate of $87.3 million, or $4.30 per share of common stock, to shareholders through quarterly cash dividends and a special cash dividend, which was paid in the first quarter of 2025. 6
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SHARE REPURCHASES During the second quarter of 2025, we repurchased 85 thousand shares, or $20.9 million of the company's common stock, at an average price of $246.88 per share. The majority of these shares were repurchased pursuant to our share repurchase authorization. For the first half of 2025, we repurchased 284 thousand shares of the company's common stock, at an average price of $299.20 per share, from restricted stock award recipients selling shares upon the award vesting to meet their employment tax obligations. We also repurchased 67 thousand shares of the company's common stock, at an average price of $248.25 per share, pursuant to our share repurchase authorization. The aggregate amount of 351 thousand shares, or $101.5 million of the company's common stock, was repurchased at an average price of $289.50 per share. Additional Information June 30, Mar. 31, June 30, 2025 2025 2024 Human Capital Full-time employees 1,845 1,801 1,768 Corporate investment banking managing directors 182 182 170 Shareholder Information (amounts in millions) Common shareholders’ equity $ 1,229.9 $ 1,213.5 $ 1,126.3 Shares outstanding: Common shares outstanding 16.7 16.5 15.9 Restricted shares outstanding 1.1 1.3 1.9 Total shares outstanding 17.8 17.8 17.8 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, August 1, 2025, at 8 a.m. Eastern Time (7 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 2797135. 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. 350 North 5th Street, Suite 1000, Minneapolis, Minnesota 55401. For more information, please contact Kate Clune, chief financial officer, at 212 466-7799 or investorrelations@psc.com. 7
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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., the second half of 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, the financial performance of pending transactions (i.e., G Squared Capital Partners), 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; • the impact of trade policy, including tariffs, on market, geopolitical and economic conditions is difficult to predict, and may result in a decline in macroeconomic conditions or the financial markets that negatively impacts our business; • continued business and investor uncertainty around future trade policy or geopolitical conditions may adversely affect our business, revenue levels, and profitability; • the expected benefits of our pending acquisition of G Squared Capital Partners may take longer than anticipated to achieve or may not be achieved in its entirety or at all, and will in part depend on our ability to retain and hire key personnel, and the costs or difficulties relating to the combination of the business may be greater than expected and may adversely affect our results of operations; • 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, 2024 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, 2024, and updated in our subsequent reports filed with the SEC (available at our Website at www.pipersandler.com and at the SEC Website 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. ### 8
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Piper Sandler Companies Results of Operations (U.S. GAAP – Unaudited) Investment banking $ 283,085 $ 278,932 $ 259,782 $ 562,017 $ 490,305 Institutional brokerage 112,374 99,256 91,737 211,630 183,179 Interest income 7,947 9,963 6,676 17,910 14,982 Investment loss (4,829) (29,597) (17,351) (34,426) (3,183) Total revenues 398,577 358,554 340,844 757,131 685,283 Interest expense 1,799 1,282 1,665 3,081 3,048 Net revenues 396,778 357,272 339,179 754,050 682,235 Non-interest expenses Compensation and benefits 258,216 248,457 234,709 506,673 457,155 Outside services 16,789 14,718 13,974 31,507 26,396 Occupancy and equipment 17,442 18,227 16,757 35,669 32,793 Communications 14,255 14,779 14,568 29,034 27,797 Marketing and business development 11,813 13,474 11,372 25,287 22,135 Deal-related expenses 11,746 5,462 5,943 17,208 12,330 Trade execution and clearance 4,701 5,174 4,515 9,875 9,381 Restructuring and integration costs 4,998 — 977 4,998 977 Intangible asset amortization 2,147 2,076 2,361 4,223 4,722 Other operating expenses 5,747 5,472 5,757 11,219 7,881 Total non-interest expenses 347,854 327,839 310,933 675,693 601,567 Income before income tax expense/(benefit) 48,924 29,433 28,246 78,357 80,668 Income tax expense/(benefit) 17,169 (7,335) 13,276 9,834 16,120 Net income 31,755 36,768 14,970 68,523 64,548 Net loss attributable to noncontrolling interests (10,427) (28,147) (19,803) (38,574) (12,718) Net income attributable to Piper Sandler Companies $ 42,182 $ 64,915 $ 34,773 $ 107,097 $ 77,266 Earnings per common share Basic $ 2.53 $ 3.96 $ 2.19 $ 6.47 $ 4.92 Diluted $ 2.38 $ 3.65 $ 1.97 $ 6.03 $ 4.40 Dividends declared per common share $ 0.65 $ 3.65 $ 0.60 $ 4.30 $ 2.20 Weighted average common shares outstanding Basic 16,703 16,378 15,879 16,542 15,689 Diluted 17,726 17,788 17,633 17,758 17,569 Three Months Ended Six Months Ended (Amounts in thousands, except per share data) June 30, Mar. 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Revenues 9
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Piper Sandler Companies Preliminary Selected Summary Financial Information (Non-GAAP – Unaudited) (1) Adjusted revenues Investment banking $ 283,085 $ 278,932 $ 259,782 $ 562,017 $ 490,305 Institutional brokerage 112,374 99,256 91,737 211,630 183,179 Interest income 7,947 9,963 6,676 17,910 14,982 Investment income/(loss) 3,781 (3,559) 180 222 5,197 Adjusted total revenues 407,187 384,592 358,375 791,779 693,663 Interest expense 1,799 1,282 1,665 3,081 3,048 Adjusted net revenues (2) 405,388 383,310 356,710 788,698 690,615 Adjusted operating expenses Adjusted compensation and benefits (3) 251,340 239,569 224,370 490,909 435,068 Adjusted non-compensation expenses (4) 80,676 75,197 70,746 155,873 138,007 Adjusted total operating expenses (5) 332,016 314,766 295,116 646,782 573,075 Adjusted operating income (6) 73,372 68,544 61,594 141,916 117,540 Adjusted income tax expense/(benefit) (7) 20,631 (4,951) 16,373 15,680 22,335 Adjusted net income (8) $ 52,741 $ 73,495 $ 45,221 $ 126,236 $ 95,205 Adjusted earnings per diluted common share (9) $ 2.95 $ 4.09 $ 2.52 $ 7.04 $ 5.31 Adjusted weighted average diluted common shares outstanding (10) 17,902 17,962 17,960 17,932 17,941 Adjusted ratios and margin Adjusted compensation ratio (11) 62.0 % 62.5 % 62.9 % 62.2 % 63.0 % Adjusted non-compensation ratio (12) 19.9 % 19.6 % 19.8 % 19.8 % 20.0 % Adjusted operating margin (13) 18.1 % 17.9 % 17.3 % 18.0 % 17.0 % Adjusted effective tax rate (14) 28.1 % -7.2 % 26.6 % 11.0 % 19.0 % Three Months Ended Six Months Ended June 30, Mar. 31, June 30, June 30, June 30, (Amounts in thousands, except per share data) 2025 2025 2024 2025 2024 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." 10
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Net revenues: Net revenues – U.S. GAAP basis $ 396,778 $ 357,272 $ 339,179 $ 754,050 $ 682,235 Adjustments: Investment loss related to noncontrolling interests (15) 8,610 26,038 17,531 34,648 8,380 Adjusted net revenues $ 405,388 $ 383,310 $ 356,710 $ 788,698 $ 690,615 Compensation and benefits: Compensation and benefits – U.S. GAAP basis $ 258,216 $ 248,457 $ 234,709 $ 506,673 $ 457,155 Adjustment: Compensation from acquisition-related agreements (6,876) (8,888) (10,339) (15,764) (22,087) Adjusted compensation and benefits $ 251,340 $ 239,569 $ 224,370 $ 490,909 $ 435,068 Non-compensation expenses: Non-compensation expenses – U.S. GAAP basis $ 89,638 $ 79,382 $ 76,224 $ 169,020 $ 144,412 Adjustments: Non-compensation expenses related to noncontrolling interests (15) (1,817) (2,109) (2,272) (3,926) (4,338) Restructuring and integration costs (4,998) — (977) (4,998) (977) Amortization of intangible assets related to acquisitions (2,147) (2,076) (2,361) (4,223) (4,722) Non-compensation expenses from regulatory settlements — — 132 — 3,632 Adjusted non-compensation expenses $ 80,676 $ 75,197 $ 70,746 $ 155,873 $ 138,007 Income before income tax expense/(benefit): Income before income tax expense/(benefit) – U.S. GAAP basis $ 48,924 $ 29,433 $ 28,246 $ 78,357 $ 80,668 Adjustments: Investment loss related to noncontrolling interests (15) 8,610 26,038 17,531 34,648 8,380 Non-compensation expenses related to noncontrolling interests (15) 1,817 2,109 2,272 3,926 4,338 Compensation from acquisition-related agreements 6,876 8,888 10,339 15,764 22,087 Restructuring and integration costs 4,998 — 977 4,998 977 Amortization of intangible assets related to acquisitions 2,147 2,076 2,361 4,223 4,722 Non-compensation expenses from regulatory settlements — — (132) — (3,632) Adjusted operating income $ 73,372 $ 68,544 $ 61,594 $ 141,916 $ 117,540 Income tax expense/(benefit): Income tax expense/(benefit) – U.S. GAAP basis $ 17,169 $ (7,335) $ 13,276 $ 9,834 $ 16,120 Tax effect of adjustments: Compensation from acquisition-related agreements 1,712 1,840 2,114 3,552 4,606 Restructuring and integration costs 1,188 — 259 1,188 259 Amortization of intangible assets related to acquisitions 562 544 626 1,106 1,252 Non-compensation expenses from regulatory settlements — — 98 — 98 Adjusted income tax expense/(benefit) $ 20,631 $ (4,951) $ 16,373 $ 15,680 $ 22,335 Continued on next page Three Months Ended Six Months Ended June 30, Mar. 31, June 30, June 30, June 30, (Amounts in thousands, except per share data) 2025 2025 2024 2025 2024 Piper Sandler Companies Reconciliation of U.S. GAAP to Selected Summary Financial Information (1) (Unaudited) 11
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Net income attributable to Piper Sandler Companies: Net income attributable to Piper Sandler Companies – U.S. GAAP basis $ 42,182 $ 64,915 $ 34,773 $ 107,097 $ 77,266 Adjustments: Compensation from acquisition-related agreements 5,164 7,048 8,225 12,212 17,481 Restructuring and integration costs 3,810 — 718 3,810 718 Amortization of intangible assets related to acquisitions 1,585 1,532 1,735 3,117 3,470 Non-compensation expenses from regulatory settlements — — (230) — (3,730) Adjusted net income $ 52,741 $ 73,495 $ 45,221 $ 126,236 $ 95,205 Earnings per diluted common share: Earnings per diluted common share – U.S. GAAP basis $ 2.38 $ 3.65 $ 1.97 $ 6.03 $ 4.40 Adjustment for inclusion of unvested acquisition-related stock (0.03) (0.04) (0.05) (0.07) (0.11) $ 2.35 $ 3.61 $ 1.92 $ 5.96 $ 4.29 Adjustments: Compensation from acquisition-related agreements 0.30 0.39 0.47 0.69 0.99 Restructuring and integration costs 0.21 — 0.04 0.21 0.04 Amortization of intangible assets related to acquisitions 0.09 0.09 0.10 0.18 0.20 Non-compensation expenses from regulatory settlements — — (0.01) — (0.21) Adjusted earnings per diluted common share $ 2.95 $ 4.09 $ 2.52 $ 7.04 $ 5.31 Weighted average diluted common shares outstanding: Weighted average diluted common shares outstanding – U.S. GAAP basis 17,726 17,788 17,633 17,758 17,569 Adjustment: Unvested acquisition-related restricted stock with service conditions 176 174 327 174 372 Adjusted weighted average diluted common shares outstanding 17,902 17,962 17,960 17,932 17,941 Three Months Ended Six Months Ended June 30, Mar. 31, June 30, June 30, June 30, (Amounts in thousands, except per share data) 2025 2025 2024 2025 2024 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) 12
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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 investment loss related to noncontrolling interests (see (15) below). (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 (15) 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 regulatory settlements regarding recordkeeping requirements for business-related communications. (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 loss and non-compensation expenses related to noncontrolling interests (see (15) below), (b) 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 regarding recordkeeping requirements for business-related communications. (7) A non-GAAP measure which includes the income tax effect of the adjustments for (a) 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 regarding recordkeeping requirements for business-related communications. (8) A non-GAAP measure which represents net income attributable to Piper Sandler Companies adjusted for (a) the exclusion of 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 regarding recordkeeping requirements for business-related communications and (e) the income tax impact allocated to the adjustments. (9) 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. (10) A non-GAAP measure which assumes the vesting of restricted stock with service conditions granted pursuant to all acquisitions since January 1, 2020. (11) A non-GAAP measure which represents adjusted compensation and benefits expenses as a percentage of adjusted net revenues. (12) A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenues. (13) A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenues. (14) A non-GAAP measure which represents adjusted income tax expense/(benefit) as a percentage of adjusted operating income. (15) Noncontrolling interests include investment loss and non-compensation expenses from consolidated alternative asset management entities that are not attributable, either directly or indirectly, to Piper Sandler Companies. 13