Oppenheimer Holdings Reports 19.4% Revenue Growth, Net Income Increase in Q3 2024

Oppenheimer Holdings Inc. reported significant financial growth for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenue for Q3 2024 reached $373.4 million, a 19.4% increase from $312.7 million in Q3 2023. For the nine months, revenue totaled $1.057 billion, up from $940.5 million in the prior year. The growth was driven by increases in commissions, advisory fees, and investment banking revenue, which rose to $103.1 million, $121.6 million, and $52.2 million, respectively, for Q3 2024.

Net income for Q3 2024 was $24.5 million, or $2.38 per share, compared to $13.8 million, or $1.32 per share, in Q3 2023. For the nine months, net income totaled $60.8 million, significantly up from $19.1 million in the same period last year. The pre-tax income for Q3 2024 was $35.4 million, a 63.8% increase from $21.6 million in Q3 2023.

Total expenses for Q3 2024 were $338.0 million, compared to $291.1 million in Q3 2023, reflecting increased compensation and non-compensation expenses. Compensation expenses rose due to higher incentive compensation and production-related costs, while non-compensation expenses increased primarily due to higher interest and technology-related costs.

As of September 30, 2024, Oppenheimer's total assets increased to $3.367 billion from $2.875 billion at the end of 2023. Total liabilities also rose to $2.529 billion from $2.086 billion. The company reported retained earnings of $811.1 million, up from $756.5 million at the end of 2023, and total stockholders' equity increased to $837.8 million from $789.2 million.

Oppenheimer's client assets under management (AUM) reached $49.1 billion, a 21.5% increase from $40.4 billion a year ago, while assets under administration (AUA) rose to $129.8 billion, up 17.3% from $110.7 billion in Q3 2023. The company employed 2,993 individuals, including 928 financial advisors, as of September 30, 2024.

Strategically, Oppenheimer is focused on expanding its private client and asset management businesses through targeted hiring and acquisitions. The company is also enhancing its technology platforms to improve client services and attract institutional clients. Additionally, Oppenheimer announced plans to redeem all outstanding senior secured notes totaling $113.05 million on October 10, 2024.

The company faced challenges, including increased calls for collateral deposits due to market volatility and ongoing cybersecurity risks. However, it has implemented a robust cybersecurity risk management program to mitigate these threats.