Piper Sandler Reports 23.6% Revenue Growth and Net Income Turnaround in Q3 2024

Piper Sandler Companies reported significant financial growth in its latest 10-Q filing for the third quarter of 2024, highlighting a robust performance compared to the same period in 2023. Total revenues for the three months ended September 30, 2024, reached $360.9 million, a 23.6% increase from $292.0 million in Q3 2023. Net income surged to $40.4 million, contrasting sharply with a net loss of $13.7 million in the prior year. This resulted in earnings per diluted share of $1.96, up from $0.22 in Q3 2023.

For the nine months ended September 30, 2024, total revenues amounted to $1.046 billion, an 18.9% increase from $883.9 million in the same period of 2023. Net income for this period was $104.9 million, compared to $34.4 million in the previous year, marking a 205.1% increase. The earnings per diluted share for the nine months rose to $6.35 from $1.95.

Investment banking revenues were a key driver of growth, totaling $241.5 million for Q3 2024, up 14.1% from $211.7 million in Q3 2023. For the nine-month period, investment banking revenues reached $731.8 million, a 26.2% increase from $580.0 million in the prior year. Advisory services also saw a notable rise, with revenues of $188.0 million in Q3 2024, up 21.7% from $154.6 million in Q3 2023.

The company completed the acquisition of Aviditi Capital Advisors on August 23, 2024, for a total economic value of $70 million, which is expected to enhance its private capital advisory capabilities. This acquisition included cash and equity considerations, as well as contingent payments based on revenue thresholds.

Piper Sandler's total assets decreased to $2.032 billion as of September 30, 2024, from $2.141 billion at the end of 2023. However, total liabilities also declined significantly to $670.0 million from $841.5 million, resulting in total shareholders' equity increasing to $1.362 billion from $1.299 billion.

The company reported a pre-tax income of $55.6 million for Q3 2024, compared to a loss of $3.5 million in Q3 2023. Non-interest expenses rose to $304.0 million, reflecting a 3.8% increase from the previous year, primarily driven by higher compensation and benefits expenses.

Piper Sandler's liquidity position remains strong, with cash and cash equivalents totaling $350.2 million as of September 30, 2024, down from $383.1 million at the end of 2023. The company continues to maintain a robust capital structure, exceeding regulatory net capital requirements by a significant margin.