opy-20250331

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-12043

OPPENHEIMER HOLDINGS INC.

(Exact name of registrant as specified in its charter)


Delaware			98-0080034
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

85 Broad Street

New York, NY 10004

(Address of principal executive offices) (Zip Code)

(212) 668-8000

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A non-voting common stock	OPY	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☐

Accelerated Filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the Company's Class A non-voting common stock and Class B voting common stock (being the only classes of common stock of the Company) outstanding on April 25, 2025 was 10,425,830 and 99,665 shares, respectively.

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OPPENHEIMER HOLDINGS INC.

INDEX TO QUARTERLY REPORT ON FORM 10-Q



		Page No.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of March 3 1 , 202 5 and December 31, 20 24	3
	Condensed Consolidated Income Statements for the three months ended March 31 , 202 5 and 20 24	4
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31 , 202 5 and 202 4	5
	Condensed Consolidated Statements of Changes in Stockholders' Equity and Noncontrolling Interests for the three months ended March 3 1 , 202 5 and 202 4	7
	Condensed Consolidated Statements of Cash Flows for the three months ended March 3 1 , 202 5 and 202 4	8
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	47
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 5.	Other Information	50
Item 6.	Exhibits	51
	Signatures	52

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PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (UNAUDITED)

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)


(Expressed in thousands, except number of shares and per share amounts)	March 31, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	36,696	$	33,150
Deposits with clearing organizations	95,822		98,909

Receivable from brokers, dealers and clearing organizations	250,308		241,478
Receivable from customers, net of allowance for credit losses of $165 ($175 in 2024)	1,349,938		1,268,866
Income tax receivable	1,103		1,499

Securities owned, including amounts pledged of $1,178,324 ($1,015,604 in 2024), at fair value	1,217,688		1,108,206
Notes receivable, net	67,731		67,931
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $93,737 ($92,390 in 2024)	37,084		38,188
Right-of-use lease assets, net of accumulated amortization of $124,992 ($118,325 in 2024)	131,779		133,821
Corporate-owned life insurance	96,987		98,828
Goodwill	143,607		143,607
Intangible assets	35,543		35,709
Other assets	107,896		112,534
Total assets	$	3,572,182	$	3,382,726
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable	$	15,331	$	21,661
Bank call loans	359,500		252,100
Payable to brokers, dealers and clearing organizations	384,470		253,816
Payable to customers	328,298		357,835
Securities sold under agreements to repurchase	866,413		931,754
Securities sold but not yet purchased, at fair value	277,888		98,892
Accrued compensation	181,406		331,298
Income tax payable	11,423		3,963
Accounts payable and other liabilities	59,176		65,764
Lease liabilities	171,497		173,320

Deferred tax liabilities, net of deferred tax assets of $45,075 ($48,640 in 2024)	44,514		41,928
Total liabilities	2,699,916		2,532,331
Commitments and contingencies (Note 13)

Stockholders' equity
Common stock ($0.001 par value per share): Class A: shares authorized: 50,000,000; shares issued and outstanding: 10,425,830 and 10,231,736 as of March 31, 2025 and December 31, 2024, respectively Class B: shares authorized, issued and outstanding: 99,665 as of March 31, 2025 and December 31, 2024	10		10
Additional paid-in capital	23,331		29,733
Retained earnings	848,721		819,961
Accumulated other comprehensive income	204		691


Total Stockholders' equity	872,266		850,395
Total Liabilities and Stockholders' Equity	$	3,572,182	$	3,382,726

The accompanying notes are an integral part of these condensed consolidated financial statements.

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OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited)



	For the Three Months Ended March 31,
(Expressed in thousands, except number of shares and per share amounts)	2025		2024
REVENUE
Commissions	$	110,878	$	95,850
Advisory fees	128,803		114,847
Investment banking	47,623		50,537
Bank deposit sweep income	30,075		36,685
Interest	36,369		26,766
Principal transactions, net	8,975		18,234
Other	5,102		10,219
Total revenue	367,825		353,138
EXPENSES
Compensation and related expenses	227,091		221,713
Communications and technology	26,182		24,576
Occupancy and equipment costs	16,009		15,848
Clearing and exchange fees	7,752		5,842
Interest	21,396		20,548
Other	28,019		27,156
Total expenses	326,449		315,683

Pre-tax income	41,376		37,455
Income tax provision	10,721		11,711
Net income	$	30,655	$	25,744

Net loss attributable to noncontrolling interest, net of tax	—		(310)
Net income attributable to Oppenheimer Holdings Inc.	$	30,655	$	26,054

Earnings per share attributable to Oppenheimer Holdings Inc.
Basic	$	2.93	$	2.50
Diluted	$	2.72	$	2.37

Weighted average shares outstanding
Basic	10,465,771		10,407,454
Diluted	11,277,939		11,001,669

Period end shares outstanding	10,525,495		10,346,862

The accompanying notes are an integral part of these condensed consolidated financial statements.

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OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)



	For the Three Months Ended March 31,
(Expressed in thousands)	2025		2024
Net income	$	30,655	$	25,744
Other comprehensive loss, net of tax
Currency translation adjustment	(487)		(388)
Comprehensive income	$	30,168	$	25,356
Less net loss attributable to noncontrolling interests	—		(310)
Comprehensive income attributable to Oppenheimer Holdings Inc.	$	30,168	$	25,666

The accompanying notes are an integral part of these condensed consolidated financial statements.

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OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND NONCONTROLLING INTERESTS (unaudited)


	For the Three Months Ended March 31,
(Expressed in thousands, except per share amount)	2025		2024
Common stock ($0.001 par value per share)
Balance at beginning of period	$	10	$	10
Issuance of Class A non-voting common stock	—		—
Repurchase of Class A non-voting common stock for cancellation	—		—
Balance at end of period	10		10
Additional paid-in capital
Balance at beginning of period	29,733		31,774
Issuance of Class A non-voting common stock	6,199		8,238
Repurchase of Class A non-voting common stock for cancellation	(90)		(8,384)



Share-based expense	3,458		3,145
Vested employee share plan awards	(15,969)		(14,996)
Change in redemption value of redeemable noncontrolling interests	—		263
Balance at end of period	23,331		20,040
Retained earnings
Balance at beginning of period	819,961		756,468

Net income (1)	30,655		26,054
Dividends paid	(1,895)		(1,576)

Balance at end of period	848,721		780,946
Accumulated other comprehensive income
Balance at beginning of period	691		914
Currency translation adjustment	(487)		(388)
Balance at end of period	204		526
Total Oppenheimer Holdings Inc. stockholders' equity	$	872,266	$	801,522
Noncontrolling interest
Balance at beginning of period	—		73

Net loss attributable to noncontrolling interest	—		(310)
Change in redemption value of redeemable noncontrolling interests	—		237
Balance at end of period	—		—
Total stockholders' equity	$	872,266	$	801,522






Dividends paid per share	$	0.18	$	0.15


(1) Attributable to Oppenheimer Holdings Inc.

The accompanying notes are an integral part of these condensed consolidated financial statements.

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

FOR THE THREE MONTHS ENDED MARCH 31,


(Expressed in thousands)	2025		2024
Cash flows from operating activities
Net income	$	30,655	$	25,744
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Non-cash items included in net income:
Depreciation and amortization of furniture, equipment and leasehold improvements	2,785		2,643
Deferred income taxes	2,600		3,004
Amortization of intangible assets	166		76
Amortization of notes receivable	4,520		4,426
Amortization of debt issuance costs	—		55

Provision for credit losses	(10)		4
Share-based compensation	716		1,736
Amortization of right-of-use lease assets	6,333		6,478

Decrease (increase) in operating assets:
Deposits with clearing organizations	3,087		(15,310)
Receivable from brokers, dealers and clearing organizations	(8,830)		24,225
Receivable from customers	(81,062)		(119,812)
Income tax receivable	396		1,444
Securities purchased under agreements to resell	—		1,752
Securities owned	(109,482)		(248,777)
Notes receivable	(4,320)		(8,675)
Corporate-owned life insurance	1,841		(6,252)
Other assets	2,829		(18,581)
Increase (decrease) in operating liabilities:
Drafts payable	(6,330)		12,457
Payable to brokers, dealers and clearing organizations	130,654		135,476
Payable to customers	(29,537)		78,340
Securities sold under agreements to repurchase	(65,341)		(353,927)
Securities sold but not yet purchased	178,996		489,256
Accrued compensation	(147,150)		(93,310)
Income tax payable	7,460		6,515
Accounts payable and other liabilities	(12,716)		(8,035)
Cash provided by (used in) operating activities	(91,740)		(79,048)
Cash flows from investing activities
Purchase of furniture, equipment and leasehold improvements	(1,681)		(258)


Proceeds from the settlement of Company-owned life insurance	1,322		—
Cash used in investing activities	(359)		(258)
Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock	(1,895)		(1,576)


Repurchase of Class A non-voting common stock for cancellation	(90)		(8,384)
Payments for employee taxes withheld related to vested share-based awards	(9,770)		(6,758)


Redemption of redeemable noncontrolling interests	—		500





Increase in bank call loans	107,400		94,350
Cash provided by financing activities	95,645		78,132
Net increase (decrease) in cash and cash equivalents	3,546		(1,174)
Cash and cash equivalents, beginning of period	33,150		28,835
Cash and cash equivalents, end of period	$	36,696	$	27,661

Reconciliation of cash and cash equivalents within the condensed consolidated balance sheets:	2025		2024
Cash and cash equivalents	$	36,696	$	27,661

Total cash and cash equivalents	$	36,696	$	27,661

Schedule of non-cash financing activities
Employee share plan issuance	$	10,277	$	13,368



Supplemental disclosure of cash flow information
Cash paid during the period for interest	$	20,630	$	21,399
Cash paid during the period for income taxes, net	$	289	$	769

The accompanying notes are an integral part of these condensed consolidated financial statements.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

1. Organization

Oppenheimer Holdings Inc. ("OPY" or the "Parent") is incorporated under the laws of the State of Delaware. The condensed consolidated financial statements include the accounts of OPY and its consolidated subsidiaries (together, the "Company"). Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services.

The Company is headquartered in New York and has 89 retail branch offices in 25 states located throughout the United States and offices in Puerto Rico, Tel Aviv, Israel, Hong Kong, China, London, England, St. Helier, Isle of Jersey, and Geneva, Switzerland. The principal subsidiaries of OPY are Oppenheimer & Co. Inc. ("Oppenheimer"), a registered broker-dealer in securities and investment adviser under the Investment Advisers Act of 1940; Oppenheimer Asset Management Inc. ("OAM") and its wholly-owned subsidiary, Oppenheimer Investment Management LLC, both registered investment advisers under the Investment Advisers Act of 1940; Oppenheimer Trust Company of Delaware ("Oppenheimer Trust"), a limited purpose trust company that provides fiduciary services such as trust and estate administration and investment management; OPY Credit Corp., which conducts secondary trading activities related to the purchase and sale of loans and trade claims, primarily on a riskless principal basis; Oppenheimer Europe Ltd., based in the United Kingdom, with offices in the Isle of Jersey, and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority; and Oppenheimer Investments Asia Limited, based in Hong Kong, China, which provides fixed income and equities brokerage services to institutional investors and is regulated by the Securities and Futures Commission.

Oppenheimer owns Freedom Investments, Inc. ("Freedom"), a registered broker dealer in securities, which provides discount brokerage services on a limited basis, and Oppenheimer Israel (OPCO) Ltd., based in Tel Aviv, Israel, which provides investment services in the State of Israel and operates subject to the authority of the Israel Securities Authority.

2. Summary of significant accounting policies and estimates

Basis of Presentation

The accompanying condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America ("U.S. GAAP") and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K"). The accompanying condensed consolidated balance sheet data was derived from the same sources as the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Certain reclassifications have been made to prior periods to place them on a basis comparable with current period presentation. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Although these estimates are based on management's knowledge of current events and actions that the Company may undertake in the future, actual results may differ materially from the estimates. The condensed consolidated results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for any future interim or annual period.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Oppenheimer Principal Investments LLC

Oppenheimer Principal Investments LLC ("OPI") is a Delaware special purpose "Series" limited liability company formed in December 2020 and designed to retain and reward talented employees of the Company, primarily in connection with the deployment of Company capital into successful private market investments, and also in connection with the Company's receipt of non-cash compensation from investment banking assignments. OPI is designed to promote alignment of Company, client and employee interests as they relate to profitable investment opportunities. This program acts as an incentive for senior employees to identify attractive private investments for the Company and its clients, and as a retention tool for key employees of the Company. OPI treats its members as partners for tax purposes generally and with respect to the separate Series formed to participate in (i) the incentive fees generated by successful client investments in the Company's Private Market Opportunities program, or (ii) principal investments made by the Company or a portion of the gains thereon, either through the outright purchase of an investment or consideration earned in lieu of an investment banking fee or other transaction fee. Employees who become members of a Series receive a "profit interest", as that term is used in Internal Revenue Service (“IRS”) regulations, and receive an allocation of capital appreciation of the investment held by the particular Series that exceeds a threshold amount established for each Series. Participating employees are also subject to vesting and forfeiture requirements for each Series investment. Vested profit interests are accounted for as compensation expense under FASB Topic ASC 710. Additionally, the Company’s policy is to consolidate those entities where it owns the majority voting interests. The Company owns the majority voting interest of OPI through Oppenheimer Alternative Investment Management (“OAIM”), the managing member of OPI and a subsidiary of OAM. Pursuant to the Company’s policy for consolidation, the Company consolidates OPI.

3. Financial Instruments - Credit Losses

Under ASC 326, "Financial Instruments - Credit Losses", the Company can elect to use an approach to measure the allowance for credit losses using the fair value of collateral where the borrower is required to, and reasonably expected to, continually adjust and replenish the amount of collateral securing the instrument to reflect changes in the fair value of such collateral. The Company has elected to use this approach for securities borrowed, margin loans, and reverse repurchase agreements. No material historical losses have been reported on these assets. See note 9 for details.

As of March 31, 2025, the Company had $67.7 million of notes receivable ($67.9 million as of December 31, 2024). Notes receivable represent recruiting and retention payments generally in the form of upfront loans to financial advisors and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 9 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. At that point, any uncollected portion of the notes is reclassified into a defaulted notes category.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

The allowance for uncollectibles is a valuation account that is deducted from the amortized cost basis of the defaulted notes balance to present the net amount expected to be collected. Balances are charged-off against the allowance when management deems the amount to be uncollectible.

The Company reserves 100% of the uncollected balance of defaulted notes which are five years and older and applies an expected loss rate to the remaining balance. The expected loss rate is based on historical collection rates of defaulted notes. The expected loss rate is adjusted for changes in environmental and market conditions such as changes in unemployment rates, changes in interest rates and/or other relevant factors. For the three months ended March 31, 2025, no adjustments were made to the expected loss rates. The Company will continuously monitor the effect of these factors on the expected loss rate and adjust it as necessary.

The allowance is measured on a pool basis as the Company has determined that the entire defaulted portion of notes receivable has similar risk characteristics.

As of March 31, 2025, the balance of defaulted notes was $4.8 million and the allowance for uncollectibles was $3.0 million. The allowance for uncollectibles consisted of $1.8 million related to defaulted notes balances (five years and older) and $1.2 million (under five years).

The following table presents the disaggregation of defaulted notes by year of default as of March 31, 2025:


(Expressed in thousands)
	As of March 31, 2025

2025	$	43
2024	449
2023	889
2022	141
2021	1,490
2020 and prior	1,758
Total	$	4,770

The following table presents activity in the allowance for uncollectibles of defaulted notes for the three months ended March 31, 2025 and 2024:


(Expressed in thousands)
	For the Three Months Ended March 31,
	2025		2024
Beginning balance	$	2,814	$	3,869

Additions	168		222
Ending balance	$	2,982	$	4,091


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

4. Leases

The Company has operating leases for office space and equipment expiring at various dates through 2034. The Company leases its corporate headquarters at 85 Broad Street, New York, New York, which houses its executive management team and many administrative functions for the Company as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments. In addition, the Company has 89 retail branch offices in the United States as well as offices in London, England, St. Helier, Isle of Jersey, Geneva, Switzerland, Tel Aviv, Israel and Hong Kong, China.

The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year.

Substantially all of the leases are held by the Company's subsidiary, Viner Finance Inc., which is a wholly owned subsidiary of the Company.

Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew and the exercise of lease renewal options is at the Company's sole discretion. The Company did not include the renewal options as part of the right of use assets and liabilities.

The depreciable life of assets and leasehold improvements is limited by the expected lease term. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of March 31, 2025, the Company had right-of-use operating lease assets of $131.8 million (net of accumulated amortization of $125.0 million) which are comprised of real estate leases of $129.1 million (net of accumulated amortization of $122.5 million) and equipment leases of $2.7 million (net of accumulated amortization of $2.5 million). As of March 31, 2025, the Company had operating lease liabilities of $171.5 million which are comprised of real estate lease liabilities of $168.9 million and equipment lease liabilities of $2.6 million. The Company had no finance leases as of March 31, 2025.

As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of March 31, 2025 and December 31, 2024, respectively:


	As of
	March 31, 2025	December 31, 2024

Weighted average remaining lease term (in years)	5.97	6.08
Weighted average discount rate	7.40%	7.50%

The following table presents operating lease costs recognized for the three months ended March 31, 2025 and March 31, 2024, respectively, which are included in occupancy and equipment costs on the condensed consolidated income statements:


(Expressed in thousands)
	For the Three Months Ended March 31,
	2025		2024
Operating lease costs:
Real estate leases - Right-of-use lease asset amortization	$	5,957	$	6,046
Real estate leases - Interest expense	3,129		3,323
Equipment leases - Right-of-use lease asset amortization	424		431
Equipment leases - Interest expense	45		46


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

The maturities of lease liabilities as of March 31, 2025 and December 31, 2024 are as follows:


(Expressed in thousands)
	As of
	March 31, 2025		December 31, 2024
2025	$	32,678	$	42,466
2026	41,896		40,596
2027	39,142		38,151
2028	25,444		24,794
2029	19,426		18,816
After 2030	55,117		52,472
Total lease payments	$	213,703	$	217,295
Less interest	(42,206)		(43,975)
Present value of lease liabilities	$	171,497	$	173,320

As of March 31, 2025, the Company had $3.9 million of additional real estate operating leases that have not yet commenced ($6.9 million as of December 31, 2024).

5. Revenue from contracts with customers

Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good or service.

The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of its past experiences, the time period during which uncertainties are expected to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties.

The Company earns revenue from contracts with customers and other sources (principal transactions, interest and other). The following provides detailed information on the recognition of the Company's revenue from contracts with customers:

Commissions

Commissions from Sales and Trading — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. A substantial portion of the Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, is recognized at a point in time on trade date when the performance obligation is satisfied.

Commission revenue is generally paid on settlement date, which is generally one business day after trade date. The Company records a receivable on the trade date and receives a payment on the settlement date.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Mutual Fund Income — The Company earns mutual fund income for sales and distribution of mutual fund shares, which consists of a fixed fee amount and a variable amount. The Company recognizes mutual fund income at a point in time on the trade date when the performance obligation is satisfied which is when the mutual fund interest is sold to the investor. The ongoing distribution fees for distributing investment products from mutual fund companies are generally considered variable consideration because they are based on the value of AUM and are uncertain on trade date. The Company recognizes distribution fees over the investment period as the amounts become known and the portion recognized in the current period may relate to distribution services performed in prior periods. Mutual fund income is generally received within 90 days.

Advisory Fees

The Company earns management and performance (or incentive) fees in connection with the advisory and asset management services it provides to various types of funds, asset-based programs and investment vehicles through its subsidiaries. Management fees are generally based on the account value at the valuation date per the respective asset management agreements and are recognized over time as the customer receives the benefits of the services evenly throughout the term of the contract. Performance fees are recognized when the return on client AUM exceeds a specified benchmark return or other performance targets over a 12-month measurement period are met. Performance fees are considered variable as they are subject to fluctuation and/or are contingent on a future event over the measurement period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Both management and performance fees are generally received within 90 days.

Investment Banking

The Company earns underwriting revenue by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenue is recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that time. These fees are generally received within 90 days after the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenue and related expenses are presented gross on the consolidated income statements.

Revenue from financial advisory services includes fees generated in connection with mergers, acquisitions and restructuring transactions. Such revenue and fees are primarily recorded at a point in time when services for the performance obligations have been completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Payment for advisory services is generally due upon a completion of the transaction or milestone. Retainer fees and fees earned from certain advisory services are recognized ratably over the service period as the customer receives the benefit of the services throughout the term of the contracts, and such fees are collected based on the terms of the contracts.

Bank Deposit Sweep Income

Bank deposit sweep income consists of revenue earned from the FDIC-insured bank deposit program. Under this program, client funds are swept into deposit accounts at participating banks and are eligible for FDIC deposit insurance up to FDIC standard maximum deposit insurance amounts. Fees are earned over time and are generally received within 30 days.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Disaggregation of Revenue

The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three months ended March 31, 2025 and 2024:


(Expressed in thousands)	For the Three Months Ended March 31, 2025
	Reportable Segments
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	48,767	$	53,948	$	12	$	102,727
Mutual fund and insurance income	8,144		1		6		8,151
Advisory fees	128,792		—		11		128,803
Investment banking - capital markets	2,962		18,699		—		21,661
Investment banking - advisory	—		25,962		—		25,962
Bank deposit sweep income	30,075		—		—		30,075
Other	4,349		1,108		1,313		6,770
Total revenue from contracts with customers	223,089		99,718		1,342		324,149
Other sources of revenue:
Interest	21,485		13,454		1,430		36,369
Principal transactions, net	(587)		9,795		(233)		8,975
Other	(2,001)		294		39		(1,668)
Total other sources of revenue	18,897		23,543		1,236		43,676
Total revenue	$	241,986	$	123,261	$	2,578	$	367,825


(Expressed in thousands)	For the Three Months Ended March 31, 2024
	Reportable Segments
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	44,930	$	43,045	$	5	$	87,980
Mutual fund and insurance income	7,864		1		5		7,870
Advisory fees	114,836		—		11		114,847
Investment banking - capital markets	3,021		15,627		—		18,648
Investment banking - advisory	21		31,868		—		31,889
Bank deposit sweep income	36,685		—		—		36,685
Other	3,416		320		980		4,716
Total revenue from contracts with customers	210,773		90,861		1,001		302,635
Other sources of revenue:
Interest	20,196		4,303		2,267		26,766
Principal transactions, net	1,736		16,733		(235)		18,234
Other	5,256		186		61		5,503
Total other sources of revenue	27,188		21,222		2,093		50,503
Total revenue	$	237,961	$	112,083	$	3,094	$	353,138


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Contract Assets and Liabilities

The timing of the Company's revenue recognition may differ from the timing of payment by its customers. The Company records contract assets when payment is due from a client conditioned on future performance or the occurrence of other events. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied.

The Company had receivables related to revenue from contracts with customers of $38.8 million and $46.2 million at March 31, 2025 and December 31, 2024, respectively. The Company had no significant impairments related to these receivables during the three months ended March 31, 2025.

Deferred revenue relates to IRA fees received annually in advance on customers' IRA accounts managed by the Company, software license fees received upfront from customers and retainer fees and other fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. Total deferred revenue was $1.6 million and $0.9 million at March 31, 2025 and December 31, 2024, respectively.

The following presents the Company's receivables and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the consolidated balance sheet:


(Expressed in thousands)	As of
	March 31, 2025		December 31, 2024
Receivables
Commission (1)	$	6,160	$	4,408
Mutual fund and insurance income (2)	5,790		5,838
Advisory fees (3)	5,365		11,271
Bank deposit sweep income (4)	4,405		4,748
Investment banking fees (5)	11,713		14,798
Other	5,415		5,124
Total receivables	$	38,848	$	46,187
Deferred revenue (payables):
Investment Banking fees (6)	$	374	$	28
Software license fees (7)	648		902
IRA fees (8)	610		—
	$	1,632	$	930

(1)Commissions earned but not yet received.

(2)Mutual fund and insurance income earned but not yet received.

(3)Management and performance fees earned but not yet received.

(4)Fees earned from FDIC-insured bank deposit program but not yet received.

(5)Underwriting revenue and advisory fees earned but not yet received.

(6)Retainer fees and fees received from certain advisory transactions where the performance obligations have not yet been satisfied.

(7)Software license fees received upfront from customers and recognized ratably over the contract period

(8)Fees received in advance on an annual basis.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

6. Earnings per share

Basic earnings per share is computed by dividing net income over the weighted average number of shares of Class A non-voting common stock ("Class A Stock") and Class B voting common stock ("Class B Stock") outstanding. Diluted earnings per share includes the weighted average number of shares of Class A Stock and Class B Stock outstanding and options to purchase Class A Stock and unvested restricted stock awards of Class A Stock using the treasury stock method.

Earnings per share have been calculated as follows:


(Expressed in thousands, except number of shares and per share amounts)
	For the Three Months Ended March 31,
	2025		2024
Basic weighted average number of shares outstanding	10,465,771		10,407,454
Net dilutive effect of share-based awards, treasury stock method (1)	812,168		594,215
Diluted weighted average number of shares outstanding	11,277,939		11,001,669

Net income attributable to Oppenheimer Holdings Inc.	$	30,655	$	26,054

Earnings per share attributable to Oppenheimer Holdings Inc.
Basic	$	2.93	$	2.50
Diluted	$	2.72	$	2.37

(1) For the three months ended March 31, 2025, the diluted net income per share computation did not include the anti-dilutive effect of 211,250 shares of Class A Stock granted under shared-based compensation arrangements. For the three months ended March 31, 2024, there were no shares of Class A Stock with an anti-dilutive effect granted under share-based compensation arrangements.

7. Receivable from and payable to brokers, dealers and clearing organizations


(Expressed in thousands)
	As of
	March 31, 2025		December 31, 2024
Receivable from brokers, dealers and clearing organizations consisting of:
Securities borrowed	$	109,303	$	137,177
Receivable from brokers	59,537		59,487
Securities failed to deliver	43,625		8,459
Clearing organizations and other (1)	37,843		36,355


Total	$	250,308	$	241,478
Payable to brokers, dealers and clearing organizations consisting of:
Securities loaned	$	360,889	$	235,498
Securities failed to receive	20,252		14,757
Payable to brokers	328		607
Clearing organizations and other	3,001		2,954
Total	$	384,470	$	253,816

(1) As of March 31, 2025, approximately $11.2 million of this balance represents a receivable for trades executed, but not yet settled (December 31, 2024: $15.4 million).


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

8. Fair value measurements

Securities owned, securities sold but not yet purchased, investments, derivative contracts and certain loans are carried at fair value with changes in fair value recognized in earnings each period. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A description of the valuation techniques applied and inputs used in measuring the fair value of the Company’s financial instruments, as well as the general classification of such instruments pursuant to the valuation hierarchy, are as follows:

Securities

The Company determines the fair value of securities (both long and short) primarily based on pricing sources with reasonable levels of price transparency. Where unadjusted quoted prices for identical assets or liabilities are available in an active market, we classify the securities within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities, money market funds and corporate equities.

If quoted market prices are unavailable, fair values are generally determined using pricing models which incorporate market observable inputs, such as benchmark yields, recently executed transaction prices, issuer spreads, reported trades, bids, offers and other reference data. Examples of such instruments, which are typically classified within Level 2 of the valuation hierarchy, include U.S. Agency securities, sovereign obligations, corporate debt and other obligations, mortgage and other asset-backed securities, municipal obligations, money market funds and convertible bonds.

In limited situations where there is reduced activity or less observability around inputs to the valuation, we classify those securities in Level 3 of the valuation hierarchy. The Company has valued the auction rate securities owned at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities and the period of time since the last tender offer. As of March 31, 2025 and December 31, 2024, the Company had $128,000 and $2.7 million respectively, of auction rate securities in Level 3 assets.

Derivative financial instruments

The Company classifies exchange-traded derivative financial instruments such as futures contracts in Level 1 of the valuation hierarchy. Some of our derivative positions, such as to-be-announced securities, are valued using models that use observable market parameters, and we classify them in Level 2 of the valuation hierarchy.

Loans

The fair value of loans is estimated using recently executed transactions and current price quotations, which are usually observable. In rare occurrences when observable pricing information is not available, fair value is generally determined based on cash flow models using discounted cash flow models, competitor comparable data and other valuation metrics.

Other

The Company owns an equity method investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. As of March 31, 2025 and December 31, 2024, the fair value of the investment was $5.9 million and $5.9 million, respectively, and was categorized in Level 2 of the fair value hierarchy.

Trade claims are categorized in Level 3 of the fair value hierarchy due to the illiquid nature of the claims and the period of time since the executed prices. As of March 31, 2025, Company had $3.2 million of trade claims in Level 3 assets.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Investments

In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. The Company records these investments within other assets and uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment unless another method provides a better indicator of fair value. Changes in the fair value of these investments are reflected within other income in the consolidated financial statements.

The following table provides information about the Company's investments in Company-sponsored funds as of March 31, 2025:


(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	278	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	5,141		856		N/A	N/A
	$	5,419	$	856

(1) Hedge funds represent investments in credit driven strategies.

(2) Private equity funds includes portfolios focused on technology, infrastructure, real estate, natural resources and specific co-investment opportunities.

The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2024:


(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	283	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	5,090		1,314		N/A	N/A
	$	5,373	$	1,314

(1) Hedge funds represent investments in credit driven strategies.

(2) Private equity funds includes portfolios focused on technology, infrastructure, real estate, natural resources and specific co-investment opportunities.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Assets and Liabilities Measured at Fair Value

The Company's assets and liabilities, recorded at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, have been categorized based upon the above fair value hierarchy as follows:

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2025:


(Expressed in thousands)
	Fair Value Measurements as of March 31, 2025
	Level 1		Level 2		Level 3		Total
Assets

Deposits with clearing organizations	$	31,340	$	—	$	—	$	31,340
Securities owned:
U.S. Treasury securities	1,080,309		—		—		1,080,309
U.S. Agency securities	—		3,861		—		3,861
Sovereign obligations	—		4,289		—		4,289
Corporate debt and other obligations	—		31,923		—		31,923
Mortgage and other asset-backed securities	—		8,723		—		8,723
Municipal obligations	—		32,568		—		32,568
Convertible bonds	—		16,929		—		16,929
Corporate equities	32,357		—		—		32,357
Money markets	6,525		76		—		6,601
Auction rate securities	—		—		128		128
Securities owned, at fair value	1,119,191		98,369		128		1,217,688
Investments (1)	565		17,284		—		17,849
Trade claims(1)	—		—		3,218		3,218
Loans(1)	—		797		—		797





Total	$	1,151,096	$	116,450	$	3,346	$	1,270,892
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	227,505	$	—	$	—	$	227,505
U.S. Agency securities	—		2		—		2

Corporate debt and other obligations	—		33,014		—		33,014


Convertible bonds	—		5,774		—		5,774
Corporate equities	11,593		—		—		11,593

Securities sold but not yet purchased, at fair value	239,098		38,790		—		277,888

Derivative contracts:
Futures (2)	726		—		—		726




Derivative contracts, total	726		—		—		726
Total	$	239,824	$	38,790	$	—	$	278,614

(1) Included in other assets on the consolidated balance sheet.

(2) Included in receivable/payable from/to brokers, dealers and clearing organizations the consolidated balance sheet.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:


(Expressed in thousands)
	Fair Value Measurements as of December 31, 2024
	Level 1		Level 2		Level 3		Total
Assets


Deposits with clearing organizations	28,071		$	—	$	—	$	28,071
Securities owned:
U.S. Treasury securities	995,420		—		—		995,420
U.S. Agency securities	—		3,691		—		3,691

Corporate debt and other obligations	—		9,423		—		9,423
Mortgage and other asset-backed securities	—		8,954		—		8,954
Municipal obligations	—		34,704		—		34,704
Convertible bonds	—		21,938		—		21,938
Corporate equities	23,873		—		—		23,873
Money markets	7,551		—		—		7,551
Auction rate securities	—		—		2,652		2,652
Securities owned, at fair value	1,026,844		78,710		2,652		1,108,206
Investments (1)	978		17,005		—		17,983
Trade claims (1)	—		—		2,684		2,684
Loans (1)	—		432		—		432






Total	$	1,055,893	$	96,147	$	5,336	$	1,157,376
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	82,767	$	—	$	—	$	82,767
U.S. Agency securities	—		4		—		4

Corporate debt and other obligations	—		11		—		11


Convertible bonds	—		4,998		—		4,998
Corporate equities	11,112		—		—		11,112

Securities sold but not yet purchased, at fair value	93,879		5,013		—		98,892

Derivative contracts:
Futures (2)	1,071		—		—		1,071



Derivative contracts, total	1,071		—		—		1,071
Total	$	94,950	$	5,013	$	—	$	99,963

(1) Included in other assets on the consolidated balance sheet.

(2) Included in receivable/payable to brokers, dealers and clearing organizations.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2025 and 2024:


(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended March 31, 2025
			Total Realized
	Beginning		and Unrealized		Purchases		Sales and		Transfers		Ending
	Balance		Gain (2)		and Issuances		Settlements		In (Out)		Balance
Assets
Trade claims	$	2,684	$	—	$	534	$	—	$	—	$	3,218
Auction rate securities (1)	$	2,652	$	206	$	—	$	(2,730)	$	—	$	128

(1) Represents auction rate securities that failed in the auction rate market.

(2) Included in principal transactions in the consolidated income statement.


(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended March 31, 2024
			Total Realized
	Beginning		and Unrealized		Purchases		Sales and		Transfers		Ending
	Balance		Gain (2)		and Issuances		Settlements		In (Out)		Balance
Assets
Auction rate securities (1)	$	2,713	$	—	$	—	$	—	$	—	$	2,713

(1) Represents auction rate securities that failed in the auction rate market.

(2) Included in principal transactions in the consolidated income statement.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Financial Instruments Not Measured at Fair Value

The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., furniture, equipment and leasehold improvements and accrued compensation).

The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short-term nature of the underlying assets.

Assets and liabilities not measured at fair value as of March 31, 2025:


(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	36,696	$	36,696	$	—	$	—	$	36,696

Deposits with clearing organizations	64,482		64,482		—		—		64,482
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	109,303		—		109,303		—		109,303
Receivables from brokers	59,537		—		59,537		—		59,537
Securities failed to deliver	43,625		—		43,625		—		43,625

Clearing organizations and other	37,843		—		37,843		—		37,843
	250,308		—		250,308		—		250,308
Receivable from customers	1,349,938		—		1,349,938		—		1,349,938
Notes receivable, net	67,731		—		67,731		—		67,731

Corporate-owned life insurance	96,987		—		96,987		—		96,987
Investments(1)	2,197		—		2,197		—		2,197

(1) Included within other assets on the consolidated balance sheet.


(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	15,331	$	15,331	$	—	$	—	$	15,331
Bank call loans	359,500		—		359,500		—		359,500
Payables to brokers, dealers and clearing organizations:
Securities loaned	360,889		—		360,889		—		360,889
Payable to brokers	328		—		328		—		328
Securities failed to receive	20,252		—		20,252		—		20,252
Clearing organization and other	2,276		—		2,276		—		2,276
	383,745		—		383,745		—		383,745
Payables to customers	328,298		—		328,298		—		328,298
Securities sold under agreements to repurchase	866,413		—		866,413		—		866,413


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Assets and liabilities not measured at fair value as of December 31, 2024:


(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	33,150	$	33,150	$	—	$	—	$	33,150

Deposits with clearing organization	70,838		70,838		—		—		70,838
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	137,177		—		137,177		—		137,177
Receivables from brokers	59,487		—		59,487		—		59,487
Securities failed to deliver	8,459		—		8,459		—		8,459
Clearing organizations and other	36,355		—		36,355		—		36,355

	241,478		—		241,478		—		241,478
Receivable from customers	1,268,866		—		1,268,866		—		1,268,866

Notes receivable, net	67,931		—		67,931		—		67,931
Corporate-owned life insurance	98,828		—		98,828		—		98,828
Investments (1)	1,634		—		1,634		—		1,634

(1) Included within other assets on the consolidated balance sheet.


(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	21,661	$	21,661	$	—	$	—	$	21,661
Bank call loans	$	252,100	$	—	$	252,100	$	—	$	252,100
Payables to brokers, dealers and clearing organizations:
Securities loaned	235,498		—		235,498		—		235,498
Payable to brokers	607		—		607		—		607
Securities failed to receive	14,757		—		14,757		—		14,757
Clearing organizations and other	1,883		—		1,883		—		1,883
	252,745		—		252,745		—		252,745
Payables to customers	357,835		—		357,835		—		357,835
Securities sold under agreements to repurchase	931,754		—		931,754		—		931,754

Derivative Instruments and Hedging Activities

The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the consolidated balance sheet.

Foreign exchange hedges

From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Unrealized gains and losses on foreign exchange forward contracts are recorded in other assets or other liabilities on the consolidated balance sheet and other income in the consolidated income statement.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Derivatives used for trading and investment purposes

Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury Notes, federal funds, general collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the consolidated balance sheet in payable to or receivable from brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.

To-be-announced securities

The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on the consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.

The notional amounts and fair values of the Company's derivatives as of March 31, 2025 and December 31, 2024 by product were as follows:


(Expressed in thousands)
	Fair Value of Derivative Instruments as of March 31, 2025
	Description	Notional		Fair Value






Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	13,035,000	$	726



Other contracts	Forward repurchase agreements	257,188		—

		$	13,292,188	$	726

(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)


(Expressed in thousands)
	Fair Value of Derivative Instruments as of December 31, 2024
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	360	$	—



		$	360	$	—
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	11,475,000	$	1,071


Other contracts	TBAs	360		—


		$	11,475,360	$	1,071

The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the consolidated income statements for the three months ended March 31, 2025 and 2024:

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended March 31, 2025

Recognized in Income on Derivatives
(pre-tax)

Types

Description

Location

Net (Loss)

Commodity contracts

Futures

Principal transactions revenue, net

(1,138)

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended March 31, 2024

Recognized in Income on Derivatives
(pre-tax)

Types

Description

Location

Net Gain

Commodity contracts

Futures

Principal transactions revenue, net

3,252

Other contracts

TBAs

Principal transactions revenue, net

3,253


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

9. Collateralized transactions

The Company enters into collateralized borrowing and lending transactions in order to meet customers' needs and earn interest rate spreads, obtain securities for settlement and finance trading inventory positions. Under these transactions, the Company either receives or provides collateral, including U.S. Government and Agency, asset-backed, corporate debt, equity, and non-U.S. Government and Agency securities.

The Company obtains short-term borrowings primarily through bank call loans. Bank call loans are generally payable on demand and bear interest at various rates. As of March 31, 2025, the outstanding balance of bank call loans was $359.5 million ($252.1 million as of December 31, 2024). As of March 31, 2025, such loans with commercial banks were collateralized by the Company's securities and customer securities with market values of approximately $23.1 million and $377.6 million, respectively.

As of March 31, 2025, the Company had approximately $1.9 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $306 million under securities loan agreements.

As of March 31, 2025, the Company had pledged $294.1 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers.

As of March 31, 2025, the Company had no outstanding letters of credit.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers' needs and to finance the Company's inventory positions. Except as described below, repurchase and reverse repurchase agreements, principally involving U.S. Government and Agency securities, are carried at amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest.

Repurchase agreements and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase agreements and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase agreements and reverse repurchase agreements exist in "book entry" form and certain other requirements are met.

The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of March 31, 2025:


(Expressed in thousands)
	Overnight and Open
Repurchase agreements:
U.S. Treasury securities	$	1,159,320
Securities loaned:
Corporate equities	360,889
Gross amount of recognized liabilities for repurchase agreements and securities loaned	$	1,520,209

The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of March 31, 2025 and December 31, 2024:


As of March 31, 2025
(Expressed in thousands)							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Amounts of Assets Presented on the Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amount
Reverse repurchase agreements	$	292,907	$	(292,907)	$	—	$	—	$	—	$	—
Securities borrowed (1)	109,303		—		109,303		(107,850)		—		1,453
Total	$	402,210	$	(292,907)	$	109,303	$	(107,850)	$	—	$	1,453

(1)Included in receivable from brokers, dealers and clearing organizations on the consolidated balance sheet.


(Expressed in thousands)							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Amounts of Liabilities Presented on the Balance Sheet		Financial Instruments		Cash Collateral Pledged		Net Amount
Repurchase agreements	$	1,159,320	$	(292,907)	$	866,413	$	(866,413)	$	—	$	—
Securities loaned (2)	360,889		—		360,889		(350,785)		—		10,104
Total	$	1,520,209	$	(292,907)	$	1,227,302	$	(1,217,198)	$	—	$	10,104

(2)Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)


As of December 31, 2024
(Expressed in thousands)							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Amounts of Assets Presented on the Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amount
Reverse repurchase agreements	$	68,055	$	(68,055)	$	—	$	—	$	—	$	—
Securities borrowed (1)	137,177		—		137,177		(130,568)		—		6,609
Total	$	205,232	$	(68,055)	$	137,177	$	(130,568)	$	—	$	6,609

(1)Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet.


(Expressed in thousands)							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Amounts of Liabilities Presented on the Balance Sheet		Financial Instruments		Cash Collateral Pledged		Net Amount
Repurchase agreements	$	999,809	$	(68,055)	$	931,754	$	(931,754)	$	—	$	—
Securities loaned (2)	235,498		—		235,498		(229,156)		—		6,342
Total	$	1,235,307	$	(68,055)	$	1,167,252	$	(1,160,910)	$	—	$	6,342

(2)Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet.

The Company receives collateral in connection with securities borrowed and reverse repurchase agreement transactions and customer margin loans. Under many agreements, the Company is permitted to sell or re-pledge the securities received (e.g., use the securities to enter into securities lending transactions, or deliver to counterparties to cover short positions). As of March 31, 2025, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $106.4 million ($131.7 million as of December 31, 2024) and $292.8 million ($68.1 million as of December 31, 2024), respectively, of which the Company has sold and re-pledged approximately $43.7 million ($39.2 million as of December 31, 2024) under securities loaned transactions and $292.8 million under repurchase agreements ($68.1 million as of December 31, 2024).

The Company pledges certain of its securities owned for securities lending and repurchase agreements and to collateralize bank call loan transactions. The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $1.2 billion, as presented on the face of the consolidated balance sheet as of March 31, 2025 ($1.0 billion as of December 31, 2024).

The Company manages credit exposure arising from repurchase and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Company, in the event of a customer default, the right to liquidate securities and the right to offset a counterparty's rights and obligations. The Company manages market risk of repurchase agreements and securities loaned by monitoring the market value of collateral held and the market value of securities receivable from others. It is the Company's policy to request and obtain additional collateral when exposure to loss exists. In the event the counterparty is unable to meet its contractual obligation to return the securities, the Company may be exposed to off-balance sheet risk of acquiring securities at prevailing market prices.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

Credit Concentrations

Credit concentrations may arise from trading, investing, underwriting and financing activities and may be impacted by changes in economic, industry or political factors. In the normal course of business, the Company may be exposed to credit risk in the event customers, counterparties including other brokers and dealers, issuers, banks, depositories or clearing organizations are unable to fulfill their contractual obligations. The Company seeks to mitigate these risks by actively monitoring exposures and obtaining collateral as deemed appropriate. Included in receivable from brokers, dealers and clearing organizations as of March 31, 2025 were receivables from three major U.S. broker-dealers totaling approximately $77.3 million. Included in receivable from customers as of March 31, 2025 were fully secured margin loans from our two largest customer accounts totaling approximately $686.9 million, comprising 51% of total margin loans.

The Company is obligated to settle transactions with brokers and other financial institutions even if its clients fail to meet their obligations to the Company. Clients are required to complete their transactions on the settlement date, generally one business day after the trade date. If clients do not fulfill their contractual obligations, the Company may incur losses. The Company has clearing/participating arrangements with the National Securities Clearing Corporation, the Fixed Income Clearing Corporation ("FICC"), the Mortgage-Backed Securities Division (a division of FICC), the Options Clearing Corporation and others. With respect to its business in reverse repurchase and repurchase agreements, all open contracts as of March 31, 2025 are with the FICC. In addition, the Company clears its non-U.S. international equities business carried on by Oppenheimer Europe Ltd. through Global Prime Partners, Ltd, a global clearing financial institution located in the United Kingdom. The clearing organizations have the right to charge the Company for losses that result from a client's failure to fulfill its contractual obligations. Accordingly, the Company has credit exposures with these clearing brokers. The clearing brokers can re-hypothecate the securities held on behalf of the Company. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. As of March 31, 2025, the Company had recorded no liabilities with regard to this right. The Company's policy is to monitor the credit standing of the clearing brokers and banks with which it conducts business.

10. Variable interest entities ("VIEs")

The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE.

The Company serves as general partner of hedge funds and private equity funds that were established for the purpose of providing alternative investments to both its institutional and qualified retail clients. The Company's investment in and additional capital commitments to these hedge funds and private equity funds are considered variable interests. The Company's additional capital commitments are subject to call at a later date and are limited to the amount committed.

The Company assesses whether it is the primary beneficiary of the hedge funds and private equity funds in which it holds a variable interest in the form of general and limited partner interests. In each instance, the Company has determined that it is not the primary beneficiary and therefore need not consolidate the hedge funds or private equity funds. The subsidiaries' general and limited partnership interests and additional capital commitments represent its maximum exposure to loss. The subsidiaries' general partnership and limited partnership interests are included in other assets on the condensed consolidated balance sheet.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

The following table sets forth the total assets and liabilities of VIEs consolidated on our condensed consolidated balance sheet:


(Expressed in thousands)
	As of March 31,
	2025		2024
Asset
Cash and cash equivalents	$	—	$	11
Restricted Cash	—		—
Other Assets	—		—
Total Assets	$	—	$	11
Liabilities
Other Liabilities	—		171
Total Liabilities	$	—	$	171

11. Income taxes

The effective income tax rate for the three months ended March 31, 2025 was 25.9%, compared with 31.3% for the three months ended March 31, 2024 and reflects the Company's annual estimate of the statutory federal and state tax rates adjusted for certain discrete items. The effective tax rate for the first quarter of 2025 was positively impacted by fewer non-deductible expenses and a higher tax benefit upon the vesting of share awards.

12. Stockholders' Equity

The Company's authorized shares consist of (a) 50,000,000 shares of Preferred Stock, par value $0.001 per share; (b) 50,000,000 shares of Class A Stock, par value $0.001 per share; and (c) 99,665 shares of Class B Stock, par value $0.001 per share. No Preferred Stock has been issued. 99,665 shares of Class B Stock have been issued and are outstanding.

The Class A Stock and the Class B Stock are equal in all respects except that the Class A Stock is non-voting.

The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated:


	For the Three Months Ended March 31,
	2025	2024
Class A Stock outstanding, beginning of period	10,231,736	10,186,783
Issued pursuant to share-based compensation plans	195,624	275,137
Repurchased and cancelled	(1,530)	(214,723)
Class A Stock outstanding, end of period	10,425,830	10,247,197

Stock buy-back

During the year ended December 31, 2023, the Company purchased and canceled an aggregate of 463,335 shares of Class A Stock for a total consideration of $17.6 million ($38.07 per share) under its share repurchase program. As of December 31, 2023, 223,699 shares remained available to be purchased under its share repurchase program.

On March 1, 2024, the Company's Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 518,000 shares of the Company's Class A Stock, representing approximately 5.0% of its 10,357,376 then issued and outstanding shares of Class A Stock. During the year ended December 31, 2024, the Company purchased and canceled an aggregate of 243,806 shares of Class A Stock for a total consideration of $9.6 million ($39.39 per share) under its share


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

repurchase program. As of December 31, 2024, 497,893 shares remained available to be purchased under its share repurchase program.

During the three months ended March 31, 2025, the Company purchased and canceled an aggregate of 1,530 shares of Class A Stock for a total consideration of $80,950 ($58.79 per share) under its share repurchase program. During the three months ended March 31, 2024, the Company purchased and canceled an aggregate of 214,723 shares of Class A Stock for a total consideration of $8.4 million ($39.05 per share) under this program. As of March 31, 2025, 496,363 shares remained available to be purchased under the share repurchase program.

Share purchases will be made by the Company from time to time in the open market at the prevailing open market price using cash on hand, in compliance with the applicable rules and regulations of the New York Stock Exchange and federal and state securities laws. All shares purchased will be canceled. The share repurchase program is expected to continue indefinitely. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of Class A Stock. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice.

On April 25, 2025, the Company announced a quarterly dividend in the amount of $0.18 per share, payable on May 23, 2025 to holders of Class A Stock and Class B Stock of record on May 9, 2025.

13. Contingencies

Many aspects of the Company's business involve substantial risks of liability. In the normal course of business, the Company has been named as defendant or co-defendant in various legal actions, including arbitrations, class actions and other litigation, creating substantial exposure and periodic expenses. Certain of the actual or threatened legal matters include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. These proceedings arise primarily from securities brokerage, asset management and investment banking activities. The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company's business, which may result in expenses, adverse judgments, settlements, fines, penalties, injunctions or other relief. The investigations include inquiries from the SEC, the Financial Industry Regulatory Authority ("FINRA") and other regulators.

The Company accrues for estimated loss contingencies related to legal and regulatory matters within Other Expenses in the consolidated income statement when available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where a loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is often not possible to reasonably estimate the size of the possible loss or range of loss or possible additional losses or range of additional losses.

For certain legal and regulatory proceedings, the Company cannot reasonably estimate such losses, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial, indeterminate or special damages. Counsel may be required to review, analyze and resolve numerous issues, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before the Company can reasonably estimate a loss or range of loss or additional loss for the proceeding. Even after lengthy review and analysis, the Company, in many legal and regulatory proceedings, may not be able to reasonably estimate possible losses or range of losses.

For certain other legal and regulatory proceedings, the Company can estimate possible losses, or range of loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses individually, or in the aggregate, will have a material adverse effect on the Company's consolidated financial statements as a whole.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

For legal and regulatory proceedings where there is at least a reasonable possibility that a loss or an additional loss may be incurred, the Company estimates a range of aggregate loss in excess of amounts accrued of up to $9 million. This estimated aggregate range is based upon currently available information for those legal proceedings in which the Company is involved, where the Company can make an estimate for such losses. For certain cases, the Company does not believe that it can make an estimate. The foregoing aggregate estimate is based on various factors, including the varying stages of the proceedings (including the fact that some are currently in preliminary stages), the numerous yet-unresolved issues in many of the proceedings and the attendant uncertainty of the various potential outcomes of such proceedings. Accordingly, the Company's estimate will change from time to time, and actual losses may be more than the current estimate.

Beginning on or about August 31, 2021, Oppenheimer was named as a respondent in numerous arbitrations, many containing multiple claimants, each filed before FINRA, relating to those claimants’ purported investment in Horizon Private Equity, III, LLC (“Horizon”). Horizon is alleged to be a fraudulent scheme involving, among others, a former Oppenheimer employee, John Woods. John Woods left Oppenheimer’s employ in 2016 and Oppenheimer never received a complaint from any of the investors prior to the SEC bringing a complaint against Woods and his co-conspirators in 2021. Oppenheimer has settled or an award has been rendered and paid in all but one of the Horizon-related arbitrations.

In addition, in June and August of 2023, Oppenheimer was served with two Horizon-related complaints in Georgia State Court, by plaintiffs, virtually all of whom were never Oppenheimer customers, alleging unspecified losses. In 2024, each of those complaints was dismissed by the trial court. Plaintiffs in each case subsequently filed an appeal of the court’s order dismissing the cases, each of which is currently pending.

On June 30, 2022, Oppenheimer received a "Wells Notice" from the SEC requesting that Oppenheimer make a written submission to the SEC to explain why Oppenheimer should not be charged with violations of Section 15c2-12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules G-17 and G-27 in relation to its sales of municipal notes pursuant to an exemption from continuing disclosure contained in Rule 15c2-12. On September 13, 2022, the SEC filed a complaint against Oppenheimer in the United States District Court for the Southern District of New York (the “Court") alleging that Oppenheimer violated Section 15B(c)(1) of the Exchange Act and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules G-17 and G-27 for not having fully complied with the exemption from the continuing disclosure obligations under Rule 15c2-12. The SEC asked the Court to enter an order enjoining Oppenheimer from violating the above-referenced rules and requiring it to disgorge approximately $1.9 million plus interest and pay a civil penalty. On January 30, 2024, Oppenheimer and the SEC reached an agreement in principle to settle the litigation pursuant to which Oppenheimer would pay a civil penalty of $1.2 million. The settlement is subject to Oppenheimer obtaining a waiver of certain statutory disqualifications.

14. Regulatory requirements

The Company's U.S. broker dealer subsidiaries, Oppenheimer and Freedom are subject to the uniform net capital requirements of the SEC under Rule 15c3-1 (the "Rule") promulgated under the Exchange Act. Oppenheimer computes its net capital requirements under the alternative method provided for in the Rule which requires that Oppenheimer maintain net capital equal to two percent of aggregate customer-related debit items, as defined in SEC Rule 15c3-3. As of March 31, 2025, the net capital of Oppenheimer as calculated under the Rule was $384.1 million or 26.73% of Oppenheimer's aggregate debit items. This was $355.4 million in excess of the minimum required net capital at that date.

Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $100,000 or 6-2/3% of aggregate indebtedness, as defined. As of March 31, 2025, Freedom had net capital of $3.7 million, which was $3.6 million in excess of the $100,000 required to be maintained at that date.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

As of March 31, 2025, the capital required and held under the Financial Conduct Authority's Investment Firms’ Prudential Regime (“IFPR”) for Oppenheimer Europe Ltd. was as follows:

•Common Equity Tier 1 ratio 124% (required 56.0%);

•Tier 1 Capital ratio 124% (required 75.0%); and

•Total Capital ratio 166% (required 100.0%).

As of March 31, 2025, Oppenheimer Europe Ltd. was in compliance with its regulatory requirements.

As of March 31, 2025, the regulatory capital of Oppenheimer Investments Asia Limited was $3.0 million, which was $2.6 million in excess of the $385,718 required to be maintained on that date. Oppenheimer Investments Asia Limited computes its regulatory capital pursuant to the requirements of the Securities and Futures Commission of Hong Kong. As of March 31, 2025, Oppenheimer Investment Asia Limited was in compliance with its regulatory requirements.

As of March 31, 2025, Oppenheimer Trust is required to maintain minimal capital of $4.15 million. Oppenheimer Trust is currently in compliance with its capital requirements.

15. Segment information

The Company has determined its reportable segments based on the Company's method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

The CODM evaluates the performance of the Company’s reportable segments based on their year-over-year revenue and pre-tax profit or loss and uses this measure to allocate resources (including employee, financial and/or capital resources), largely in conjunction with monthly and/or quarterly reviews of segment financial performance. The CODM also uses segment profit or loss in evaluating the incentive and other compensation of segment employees as well as capital investment for facilities and information technology development.

Effective in the fourth quarter of 2024, the Company combined the former Private Client and Asset Management business segments to form the Wealth Management segment. The revised segment structure is aligned with how the CODM and senior management view the performance and operations of our retail focused business. Our Capital Markets and Corporate/Other segments were not impacted by these changes. To provide historical information on a basis consistent with the revised segment presentation, the Company recast prior period segment results.

The Company's reportable segments are:

Wealth Management — includes commissions and fee income earned on assets under management ("AUM"), net interest earnings on client margin loans and cash balances, fees from money market funds, custodian fees, net contributions from stock loan activities and financing activities, and direct expenses; and

Capital Markets — includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment.

The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit. Costs associated with these groups are separately reported in a Corporate/Other category and primarily include compensation and benefits. The costs of certain centralized or shared functions are allocated based on methodologies that reflect utilization. The Company also includes activities associated with BondWave, LLC in Corporate/Other.


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OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)

The tables below present information about the Company’s reported segment revenues, segment pre-tax income or loss, compensation expenses, and other segment items for the three months ended March 31, 2025 and 2024. There are no adjustments or reconciling items for any of the periods presented. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the CODM


(Expressed in thousands)
	For the Three Month Ended March 31, 2025
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue	$	241,986	$	123,261	$	2,578	$	367,825
Less :
Compensation Expenses	119,648		87,344		20,099		227,091
Other Segment Items(1)	54,474		41,014		3,870		99,358
Pre-Tax Income (Loss)	$	67,864	$	(5,097)	$	(21,391)	$	41,376

(1) Other segment items include communication and technology expenses, occupancy and equipment costs, clearing and exchange fees, interest and other expenses.


(Expressed in thousands)
	For the Three Month Ended March 31, 2024
	Wealth Management		Capital Markets		Corporate/Other		Total
Revenue	$	237,961	$	112,083	$	3,094	$	353,138
Less :
Compensation Expenses	115,572		81,588		24,554		221,714
Other Segment Items(1)	46,604		37,197		10,168		93,969
Pre-Tax Income (Loss)	$	75,785	$	(6,702)	$	(31,628)	$	37,455

(1) Other segment items include communication and technology expenses, occupancy and equipment costs, clearing and exchange fees, interest and other expenses.

Revenue, classified by the major geographic areas in which it was earned, for the three months ended March 31, 2025 and 2024 was:


(Expressed in thousands)
	For the Three Months Ended March 31,
	2025		2024
Americas	$	354,709	$	341,417
Europe/Middle East	12,352		10,774
Asia	764		947
Total	$	367,825	$	353,138

16. Subsequent events

The Company has performed an evaluation of events that occurred since March 31, 2025 and through the date on which the

condensed consolidated financial statements were issued, and determined there are no events that have occurred that would require recognition or additional disclosure except as disclosed in Note 12.

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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

BACKGROUND

The condensed consolidated financial statements include the accounts of Oppenheimer Holdings Inc. and its consolidated subsidiaries (together, the "Company", "Firm", "Parent", "we", "our" or "us"). The Company's condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto which appear elsewhere in this quarterly report.

Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the securities industry, including retail securities brokerage, institutional sales and trading, market-making, research, investment banking (both corporate and public finance), investment advisory and asset management services and trust services. Its principal subsidiaries are Oppenheimer & Co. Inc. ("Oppenheimer") and Oppenheimer Asset Management Inc. ("OAM"). As of March 31, 2025, we provided our services from 89 offices in 25 states located throughout the United States and offices in Puerto Rico, Tel Aviv, Israel, Hong Kong, China, London, England, St. Helier, Isle of Jersey and Geneva, Switzerland. The Company provides investment advisory services through OAM and Oppenheimer Investment Management LLC ("OIM") and Oppenheimer's financial advisor directed programs. At March 31, 2025, client assets under management ("AUM") totaled $48.9 billion. AUM includes the total market value of client investments in discretionary and non-discretionary advisory programs as well as the net asset value of private placements of alternative investments offered by and held by clients of the Firm. Client assets under administration ("CAUA") as of March 31, 2025 totaled $129.9 billion. CAUA includes AUM and the other assets held for which the Firm provides services. We also provide trust services and products through Oppenheimer Trust Company of Delaware and limited discount brokerage services through Freedom Investments, Inc. ("Freedom"). Through OPY Credit Corp., we conduct our secondary trading activities related to the purchase and sale of loans and trade claims, primarily on a riskless principal basis. At March 31, 2025, the Company employed 3,012 employees (2,974 full-time and 38 part-time), of whom 933 were financial advisors.

Outlook

We are focused on growing our wealth management business through strategic additions of experienced financial advisors in our existing branch system and employment of experienced money management personnel in our asset management business as well as deploying our capital for expansion through targeted acquisitions or strategic partnerships. We are increasingly creating and investing in private market opportunities on our own behalf and on behalf of qualified clients. We are also focused on opportunities in our capital market businesses, including integrating new technology platforms to expand the suite of services offered to our clients and onboarding experienced personnel and/or small units that will improve our ability to attract institutional clients in both equities and fixed income without significantly raising our risk profile. In investment banking, we are committed to growing our footprint by adding experienced bankers within our existing industry practices as well as new industry practices where we believe we can be successful.

We continuously invest in and improve our technology platform to support client service and to remain competitive, while simultaneously managing expenses. The Company's long-term growth plan is to continue to expand existing offices by hiring experienced professionals as well as expand through the purchase of operating branch offices from other broker-dealers or the opening of new branch offices in attractive locations, and to continue to grow and develop the existing trading, investment banking, investment advisory and other divisions. We recognize employee work habits have changed in a post-pandemic world. As a result, we are continuously reviewing our physical footprint on lease renewals, and in many cases reducing office size and configuration. We are committed to continuing to improve our capabilities to ensure compliance with industry regulations, support client service and expand our wealth management and capital markets capabilities. We recognize the importance of compliance with applicable regulatory requirements and are committed to performing rigorous and ongoing assessments of our compliance and risk management effort, and investing in people and programs, while providing a platform with first class investment programs and services.

The Company also reviews its full service business model to determine the opportunities available to build or acquire closely related businesses in areas where others have shown some success. Equally important is the search for viable acquisition candidates. Our long-term intention is to pursue growth by acquisition where we can find a comfortable match in terms of corporate goals and personnel at a price that would provide our stockholders with incremental value. We review potential acquisition opportunities from time to time with the aim of fulfilling the Company's strategic goals,

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while evaluating and managing our existing businesses. In addition, the Company may from time to time acquire a controlling financial interest in a business or make minority private investments out of excess capital in allied or unrelated businesses with the goal of either syndicating the investment to eligible clients or retaining ownership because we believe them to be an attractive investment or offer products and services aligned with the Company's long-term business objectives.

Short-term Interest Rate Environment

After reducing the federal funds rate by 1 percentage point to a target range of 4.25% - 4.50% through a series of rate cuts in the latter half of 2024, the Federal Reserve (the “FED”) held rates steady at their first two meetings of 2025. The current pause is driven by the FED’s desire to wait for further clarity on the economy, as uncertainty around the economic outlook has increased in light of recent policy changes impacting trade, immigration and government spending. Recent announcements around the imposition of universal and targeted tariffs have significantly impacted investor sentiment leading to major declines in market averages. Such disruption often leads to FED intervention. The FED’s forecast continues to pencil in two rate cuts for 2025, though this is subject to change.

Potential decreases to the federal funds rate may impact our interest-based revenues. While decreases in interest rates will lower fees the Company earns from FDIC-insured deposits of clients through a program offered by the Company, such decreases may be offset to a degree if the cash sweep balances increase as clients find fewer higher-yielding alternatives to deploy these balances. Future rate decreases will also reduce the rates the Company charges on customer margin loans and earns on other interest-sensitive assets, which will have a negative impact on our earnings.

Israel-Hamas War and Conflict with Hezbollah and Iran

On October 7, 2023, Hamas initiated an unprovoked invasion of Israel from the Gaza Strip, resulting in thousands of casualties. Israel formally declared war on Hamas in response to the attack and initiated several military operations in an effort to clear militants from the area. The war has now finished its second year and has seen a significant escalation in a longstanding conflict between Israel and Hezbollah, the Lebanese-based militant group. The conflict was further intensified in 2024 by the direct entry of Iran, which launched a missile attack on Israel. The expiration of a cease-fire and the resumption of hostilities is likely to increase the calls for peace and may interfere with Israel’s relations with the rest of the world. Given the continued unrest, there remains a risk that these conflicts could expand into a wider regional war which could have an adverse impact on the worldwide economy, financial markets and thus on our business. At this time, these conflicts have not yet had a material impact on our business operations in Israel or elsewhere.

EXECUTIVE SUMMARY

The Firm’s solid performance for the quarter underscores the ability of our diversified businesses to deliver profitable operating results in increasingly uncertain macroeconomic conditions. During the quarter, all major indices receded from prior quarter highs as the financial markets digested the new administration’s swift policy changes on trade, immigration and government spending as well as initiatives on decreased regulation. Concerns that recently enacted tariffs would likely provoke a wider trade war and spur “stagflation” – a combination of slower growth and higher inflation – produced increased volatility and lower valuations for equity securities as well as pressure on the U.S. dollar. The likelihood of a recession has increased significantly, coupled with reduced consumer confidence and expectations for higher inflation resulting from increased import prices. There are dimmed hopes for a resumption of active capital market activity with little probability of increased corporate issuances of common stock through IPOs or secondaries. Should market declines persist, this will also negatively impact our assets under management ("AUM") and fees earned from that activity. We hope that recent market turbulence will convince policy makers that recent “on-off” announcements of market-moving policy is significantly impacting likely economic outcomes and that they will significantly reduce such activity.

Notwithstanding the increasingly negative market sentiment, our Wealth Management business delivered strong results with a number of improvements over the prior year. The volatile markets spurred robust trading by our clients, driving higher retail commissions. Asset-based advisory fees also increased since AUM, while slightly reduced from recently established all-time highs, remained well above AUMs outstanding during the comparable period. A decline in our interest-sensitive revenues, partially offset these improvements due to lower short term interest rates and reduced FDIC sweep balances.

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Our Capital Markets revenues exceeded prior year levels despite challenging market conditions that saw lower underwriting activity amid postponed transactions by corporate clients owing to policy uncertainties and volatile markets that put a damper on deal making activities and new issuance levels. Institutional trading volumes increased in the volatile markets seen during the latter part of the 1st quarter, which were favorable to our sales and trading revenues.

RESULTS OF OPERATIONS

The Company reported net income of $30.7 million or $2.93 basic earnings per share for the first quarter of 2025, compared with net income of $26.1 million or $2.50 per share for the first quarter of 2024. Revenue for the first quarter of 2025 was $367.8 million, an increase of 4.2%, compared to revenue of $353.1 million for the first quarter of 2024.


(Expressed in thousands, except Per Share Amounts or otherwise indicated)
	1Q-2025		1Q-2024		Change		% Change
Revenue	$	367,825	$	353,138	$	14,687	4.2
Compensation expense	$	227,091	$	221,713	$	5,378	2.4
Non-compensation expense	$	99,358	$	93,970	$	5,388	5.7
Pre-tax Income	$	41,376	$	37,455	$	3,921	10.5
Income tax provision	$	10,721	$	11,711	$	(990)	(8.5)
Net Income (1)	$	30,655	$	26,054	$	4,601	17.7

Earnings per share (basic) (1)	$	2.93	$	2.50	$	0.43	17.2
Earnings per share (diluted) (1)	$	2.72	$	2.37	$	0.35	14.8

Book Value Per Share	$	82.87	$	77.47	$	5.40	7.0
Tangible Book Value Per Share (2)	$	65.85	$	60.41	$	5.44	9.0
Class A Shares Outstanding	10,425,830		10,247,197		178,633		1.7

AUA ($ billions)	$	129.9	$	124.9	$	5.0	4.0
AUM ($ billions)	$	48.9	$	46.6	$	2.3	4.9
(1) Attributable to Oppenheimer Holdings Inc.
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding.

Highlights

•Increased revenue for the first quarter of 2025 was primarily driven by significantly higher advisory fees attributable to a rise in billable AUM and an increase in transaction-based commissions as well as sales and trading revenue

•Assets under administration and under management at March 31, 2025 modestly decreased below recently established records

•Compensation expenses increased from the prior year quarter largely as a result of inflationary pressures on wages and higher production-related expenses

•Non-compensation expenses increased from the prior year quarter primarily due to higher interest and technology related expenses and higher clearing and exchange costs attributable to higher volumes

•Total stockholders' equity, book value and tangible book value per share reached new record highs as a result of positive earnings

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BUSINESS SEGMENTS

The table below presents information about the reported revenue and pre-tax income (loss) of the Company's reportable business segments for the three months ended March 31, 2025 and 2024:


(Expressed in thousands)
	For the Three Months Ended March 31,
	2025		2024		% Change
Revenue
Wealth Management	$	241,986	$	237,961	1.7
Capital Markets	123,261		112,083		10.0
Corporate/Other	2,578		3,094		(16.7)
Total	$	367,825	$	353,138	4.2

Pre-Tax Income (Loss)
Wealth Management	$	67,864	$	75,785	(10.5)
Capital Markets	(5,097)		(6,702)		(23.9)
Corporate/Other	(21,391)		(31,628)		(32.4)
Total	$	41,376	$	37,455	10.5

Wealth Management

Wealth Management reported revenue for the current quarter of $242.0 million, 1.7% higher compared with a year ago. Pre-tax income was $67.9 million in the current quarter, a decrease of 10.5% compared with a year ago. Financial advisor headcount at the end of the current quarter was 933, compared to 936 and 931 at the end of the first quarter of 2024 and fourth quarter of 2024, respectively.


('000s unless otherwise indicated)
	1Q-2025			1Q-2024			Change			% Change
Revenue	$	241,986		$	237,961		$	4,025		1.7
Commissions	$	56,911		$	52,794		$	4,117		7.8
Advisory fee revenue	$	128,792		$	114,836		$	13,956		12.2
Bank deposit sweep income	$	30,075		$	36,685		$	(6,610)		(18.0)
Interest	$	21,485		$	20,196		$	1,289		6.4
Other	$	4,723		$	13,450		$	(8,727)		(64.9)

Total Expenses	$	174,122		$	162,176		$	11,946		7.4
Compensation	$	119,648		$	115,572		$	4,076		3.5
Non-compensation	$	54,474		$	46,604		$	7,870		16.9

Pre-Tax Income	$	67,864		$	75,785		$	(7,921)		(10.5)

Compensation Ratio	49.4		%	48.6		%	0.8		%	1.6
Non-compensation Ratio	22.5		%	19.6		%	2.9		%	14.8
Pre-Tax Margin	28.0		%	31.8		%	(3.8)		%	(11.9)

Asset Under Administration (billions)	$	129.9		$	124.9		$	5.0		4.0
Asset Under Management (billions)	$	48.9		$	46.6		$	2.3		4.9
Cash Sweep Balances (billions)	$	2.9		$	3.2		$	(0.3)		(9.4)

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•Retail commissions increased 7.8% from a year ago primarily due to higher retail trading activity

•Advisory fees increased 12.2% due to higher AUM during the billing period

•Bank deposit sweep income decreased $6.6 million from a year ago due to lower cash sweep balances and lower short-term interest rates

•Interest revenue increased 6.4% from the prior year period due to higher average margin loan balances

•Other revenue decreased from a year ago primarily due to a decline in the cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in the fair value of the policies' underlying investments

•Compensation expenses increased 3.5% from a year ago primarily due to higher production related expenses, partially offset by lower deferred compensation expenses and decreased costs associated with share appreciation rights

•Non-compensation expenses increased 16.9% from a year ago primarily due to an increase in legal expenses and higher external portfolio management costs, which are directly related to the increase in AUM

The following table provides a breakdown of the change in assets under management for the three months ended March 31, 2025:


(Expressed in millions)
	For the Three Months Ended March 31, 2025
Fund Type	Beginning Balance		Contributions		Redemptions/Profit Distribution		Appreciation (Depreciation)		Ending Balance
Traditional (1)	$	43,039	$	2,361	$	(2,052)	$	(635)	$	42,713
Institutional Fixed Income (2)	916		4		(43)		19		895
Alternative Investments:
Hedge funds (3)	4,015		35		(161)		(94)		3,794
Private Equity Funds (4)	1,185		55		(3)		58		1,295
Portfolio Enhancement Program (5)	228		6		(3)				231
Other	—		$	2	$	—	$	—	2
	$	49,383	$	2,462	$	(2,262)	$	(652)	$	48,930

(1)Traditional investments include third party advisory programs, Oppenheimer financial advisor managed and advisory programs, and Oppenheimer Asset Management taxable and tax-exempt portfolio management strategies.

(2)Institutional fixed income provides solutions to institutional investors including: Taft-Hartley Funds, Public Pension Funds, Corporate Pension Funds, and Foundations and Endowments.

(3)Hedge funds represent investments in strategies including long/short equity, global macro, event driven, merger arbitrage, multi-strategy and credit. They may be single manager or fund of funds.

(4)Private equity funds include portfolios focused on technology, infrastructure, real estate, natural resources and specific co-investment opportunities.

(5)The portfolio enhancement program sells uncovered, out-of-money puts and calls on the S&P 500 Index. The program is market neutral and uncorrelated to the index. Valuation is based on collateral requirements for a series of contracts representing the investment strategy.

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Capital Markets

Capital Markets reported revenue for the current quarter of $123.3 million, 10.0% higher when compared with the prior year period. Pre-tax loss was $5.1 million compared with a pre-tax loss of $6.7 million a year ago.


('000s)	1Q-2025			1Q-2024			Change			% Change
Revenue	$	123,261		$	112,083		$	11,178		10.0

Investment Banking	$	44,980		$	47,918		$	(2,938)		(6.1)
Advisory fees	$	25,962		$	31,868		$	(5,906)		(18.5)
Equities underwriting	$	13,399		$	13,179		$	220		1.7
Fixed income underwriting	$	5,301		$	2,447		$	2,854		116.6
Other	$	318		$	424		$	(106)		(25.0)

Sales and Trading	$	76,879		$	63,659		$	13,220		20.8
Equities	$	41,744		$	30,266		$	11,478		37.9
Fixed Income	$	35,135		$	33,393		$	1,742		5.2

Other	$	1,402		$	506		$	896		177.1

Total Expenses	$	128,358		$	118,785		$	9,573		8.1
Compensation	$	87,344		$	81,588		$	5,756		7.1
Non-compensation	$	41,014		$	37,197		$	3,817		10.3

Pre-Tax Loss	$	(5,097)		$	(6,702)		$	1,605		*

Compensation Ratio	70.9		%	72.8		%	(1.9)		%	(2.6)
Non-compensation Ratio	33.3		%	33.2		%	0.1		%	0.3
Pre-Tax Margin	(4.1)		%	(6.0)		%	1.9		%	(31.7)
*Percentage not meaningful

•Advisory fees earned from investment banking activities decreased 18.5% compared with a year ago primarily due to fewer private placement transactions

•Equities underwriting fees were flat when compared to the prior year period

•Fixed income underwriting fees increased 116.6% compared with prior year period primarily due to higher public finance transaction revenue

•Equities sales and trading revenue increased 37.9% compared with the prior year period mostly due to higher trading volumes and greater options-related revenue

•Fixed income sales and trading revenue increased 5.2% compared with a year ago largely due to higher interest income on trading inventory

•Compensation expenses increased 7.1% compared with a year ago largely due to costs associated with opportunistic new hires and greater production related expense

•Non-compensation expenses were 10.3% higher than a year ago primarily due to an increase in communication and technology expenses and execution-related fees

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CRITICAL ACCOUNTING POLICIES

The Company's condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Reference is also made to the Company's condensed consolidated financial statements and notes thereto found in its Annual Report on Form 10-K for the year ended December 31, 2024.

The Company's accounting policies are essential to understanding and interpreting the financial results reported on the condensed consolidated financial statements. The significant accounting policies used in the preparation of the Company's condensed consolidated financial statements are summarized in note 2 to those statements and the notes thereto found in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Certain of those policies are considered to be particularly important to the presentation of the Company's financial results because they require management to make difficult, complex or subjective judgments, often as a result of matters that are inherently uncertain.

During the three months ended March 31, 2025, there were no material changes to matters discussed under the heading "Critical Accounting Polices" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

New Accounting Pronouncements

The following Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board ("FASB") have not yet been adopted by the Company:

ASU 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures

The FASB issued this ASU in December of 2023 to enhance the transparency and decision usefulness of income tax disclosures. The amendments require certain entities to enhance the annual reconciliation of its statutory income tax rate to its effective tax rate by mandating the disclosure of the impact associated with specific categories and requiring separate disclosure for reconciling items exceeding certain quantitative thresholds. The amendments also require entities to annually disclose the amount of taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes, with separate disclosure of individual jurisdictions exceeding 5% of total income taxes paid. The new guidance, which becomes effective in 2025, will not have an impact on our financial position or results of operations since it only amends certain disclosures.

ASU 2024-03 – Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

The FASB issued this ASU in November of 2024 which will require public business entities to disclose specified information about certain costs and expenses, including employee compensation, depreciation and intangible asset amortization at each interim and annual reporting period. The new guidance, which becomes effective in 2027, will not have an impact on our financial position or results of operations since it only amends certain disclosures.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2025, total assets increased by 5.6% from December 31, 2024. The Company satisfies its need for financing from internally generated funds and collateralized and uncollateralized borrowings, consisting primarily of bank call loans, stock loans, and uncommitted lines of credit. We finance our trading in government securities through the use of securities sold under repurchase agreements. Oppenheimer has uncommitted arrangements with banks for borrowings on a fully collateralized basis. The amount of Oppenheimer's bank borrowings fluctuates in response to changes in the level of the Company's securities inventories and customer margin debt, changes in notes receivable from employees, investment in furniture, equipment and leasehold improvements, and changes in stock loan balances and financing through repurchase agreements. At March 31, 2025, the Company had an outstanding bank call loan balance of $439.6 million compared to $252.1 million at December 31, 2024. The Company also has some availability of short-term bank financing on an unsecured basis.

The Company's overseas subsidiaries, Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited, are subject to local regulatory capital requirements that restrict our ability to utilize their capital for other purposes.

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The regulatory capital requirements for Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited were $6.1 million and $385,718, respectively, at March 31, 2025. The liquid assets at Oppenheimer Europe Ltd. are primarily comprised of cash deposits in bank accounts.

The liquid assets at Oppenheimer Investments Asia Limited are primarily comprised of investments in U.S. Treasuries and cash deposits in bank accounts. Any transfer of these liquid assets from Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited to the Company or its other subsidiaries would be limited by regulatory capital requirements.

The Company permanently reinvests eligible earnings of its foreign subsidiaries and, accordingly, does not accrue any U.S. income taxes that would arise if these earnings were repatriated. The unrecognized deferred tax liability associated with the outside basis difference of its foreign subsidiaries is estimated at $3.4 million for those subsidiaries. We have continued to reinvest permanently the excess earnings of Oppenheimer Israel (OPCO) Ltd. in its own business and in the businesses in Europe and Asia to support business initiatives in those regions. We will continue to review our historical treatment of these earnings to determine whether our historical practice will continue or whether a change is warranted.

Liquidity

For the most part, the Company's assets consist of cash and cash equivalents and assets that it can readily convert into cash. The receivable from brokers, dealers and clearing organizations represents deposits for securities borrowed transactions, margin deposits and current transactions awaiting settlement. The receivable from customers represents margin balances and amounts due on transactions awaiting settlement. Our receivables are, for the most part, collateralized by marketable securities. Our collateral maintenance policies and procedures are designed to limit our exposure to credit risk. Securities owned are mainly comprised of actively traded readily marketable securities. We issued $2.6 million in forgivable notes (which are inherently illiquid) to employees during the three months ended March 31, 2025 ($4.5 million for the three months ended March 31, 2024) as upfront or backend inducements to commence or continue employment as the case may be. The amount of funds allocated to such inducements will vary with hiring activity and retention initiatives.

We satisfy our need for liquidity from internally generated funds, collateralized and uncollateralized bank borrowings, stock loans and repurchase agreements. Bank borrowings are uncommitted in nature and, in most cases, collateralized by Firm and customer securities.

We obtain short-term borrowings primarily through bank call loans. Bank call loans are generally payable on demand, uncommitted in nature and bear interest at various rates. At March 31, 2025, the Company had $359.5 million of bank call loans ($252.1 million at December 31, 2024). The average daily bank loan outstanding for the three months ended March 31, 2025 was $277.3 million ($57.8 million for the three months ended March 31, 2024). The largest daily bank loans outstanding for the three months ended March 31, 2025 was $491.7 million ($164.9 million for the three months ended March 31, 2024).

At March 31, 2025, securities loan balances totaled $360.9 million ($235.5 million at December 31, 2024 and $298.0 million at March 31, 2024). The average daily securities loan balances outstanding for the three months ended March 31, 2025 were $359.2 million ($303.4 million for the three months ended March 31, 2024). The largest daily stock loan balance for the three months ended March 31, 2025 was $436.8 million ($335.7 million for the three months ended March 31, 2024).

We finance our government trading operations through the use of securities purchased under reverse repurchase agreements and repurchase agreements. Except as described below, repurchase and reverse repurchase agreements, primarily involving government and agency securities, are carried at amounts at which securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest.

Repurchase and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase and reverse repurchase agreements exist in "book entry" form and certain other requirements are met.

At March 31, 2025, the gross balances of reverse repurchase agreements and repurchase agreements were $292.9 million and $1,159.3 million, respectively. The average daily balance of reverse repurchase agreements and repurchase agreements on a gross basis for the three months ended March 31, 2025 was $370.5 million and $1,044 million, respectively ($122.9 million and $809.3 million, respectively, for the three months ended March 31, 2024). The largest amount of reverse repurchase agreements and repurchase agreements outstanding on a gross basis during the three

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months ended March 31, 2025 was $633.5 million and $1,220 million, respectively ($578.4 million and $1.1 billion, respectively, for the three months ended March 31, 2024).

Liquidity Management

We manage our liquidity to meet our current obligations and upcoming liquidity needs as well as to ensure compliance with regulatory requirements. Our liquidity needs may be affected by market conditions, increased inventory positions, business expansion and other unanticipated occurrences. In the event that existing financial resources do not satisfy our liquidity needs, we may have to seek additional external financing. The availability of such additional external financing may depend on market factors outside our control.

We have Company-owned life insurance policies which are utilized to fund certain non-qualified deferred compensation plans. Certain policies which could provide additional liquidity if needed had a cash surrender value of $97.0 million as of March 31, 2025.

We regularly review our sources of liquidity and financing, both on a short term and long term basis, and conduct internal stress analyses to determine the impact on the Company of events that could remove sources of liquidity or financing and to plan actions the Company could take in the case of such an eventuality. Regulators are increasingly focused on liquidity management and we have seen increased regulatory scrutiny of liquidity management by our industry. Should a disruption occur in our liquidity and financing sources, we have developed a contingency funding plan that we believe would result in a reduction of assets through liquidation that would significantly reduce the Company's need for external financing.

Our primary long-term cash requirements are related to $171.5 million of operating lease obligations. The total cash requirement for interest expense related to operating lease obligations is estimated to be $8.8 million for the remainder of 2025.

Funding Risk


(Expressed in thousands)
	For the Three Months Ended March 31,
	2025		2024
Cash provided by (used in) operating activities	$	(91,740)	$	(79,048)
Cash used in investing activities	(359)		(258)
Cash provided by financing activities	95,645		78,132
Net decrease in cash, cash equivalents and restricted cash	$	3,546	$	(1,174)

Management believes that funds from operations, combined with our capital base and available credit facilities, are sufficient for our liquidity needs for the foreseeable future. Under some circumstances, banks including those on whom we rely may back away from providing funding to the securities industry. Such a development might impact our ability to finance our day-to-day activities or increase the costs to acquire funding. We may or may not be able to pass such increased funding costs on to our clients.

During periods of high volatility such as the current environment, we see increased calls for deposits of collateral to offset perceived risk between the Company's settlement liability to industry clearinghouses such as the Options Clearing Corporation (“OCC”) and National Securities Clearing Corp. (“NSCC”) as well as more stringent collateral arrangements with our bank lenders. The recent reduction of the settlement cycle for security transactions in the U.S. have substantially reduced settlement risks. All such requirements have been and will be met in the ordinary course with available collateral.

CYBERSECURITY

Cybersecurity presents significant challenges to the business community in general, including to the financial services industry. Increasingly, bad actors, both domestic and international, attempt to steal personal data and/or interrupt the normal functioning of businesses through accessing individuals' and companies' files and equipment connected to the internet. Recent incidents have reflected the increasing sophistication of intruders and their intent to steal personally identifiable information as well as funds and securities. These intruders sometimes use instructions that are seemingly from authorized parties but, in fact are from parties intent on attempting to steal. In other instances these intruders

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attempt to bypass normal safeguards and disrupt or steal significant amounts of information and then either release it to the Internet or hold it for ransom. Regulators are increasingly requiring companies to provide heightened levels of sophisticated defenses. The Company maintains processes and systems with an aim to preventing any such attack from disrupting its services to clients as well as to prevent any loss of data concerning its clients, their financial affairs, as well as Company privileged information.

Our management is actively involved in the oversight of our cybersecurity risk management program. We have devoted significant financial and personnel resources to implement and maintain security measures to meet regulatory requirements and customer expectations. We have incorporated cybersecurity processes to assess, identify and manage risks from cybersecurity threats into our overall risk assessment process. The Company maintains a cybersecurity program that is designed to identify, protect from, detect, respond to, and recover from cybersecurity threats and risks, and protect the confidentiality, integrity, and availability of its information systems, including the information residing on such systems. The National Institute of Standards and Technology Cybersecurity Framework helps the Company inform its cybersecurity agenda and prioritize its cybersecurity activities. The Company takes a risk-based approach to cybersecurity, which begins with the identification and evaluation of cybersecurity risks or threats that could affect the Company’s operations, finances, legal or regulatory compliance, or reputation. The Company has processes in place for assessing, identifying and managing material risks from cybersecurity threats along with risk assessment procedures designed to allow such processes to remain responsive to emerging risks. Our processes include, but are not limited to, the following:

•we engage third-party cybersecurity firms and tools to assist with network monitoring, endpoint protection, vulnerability assessments and penetration testing;

•we engage cyber security consultants and auditors to perform tabletop exercises and evaluate our cyber processes including an assessment of our incident response procedures. Identified risks are formally tracked until mitigated or eliminated;

•we perform regular scanning of our systems to identify and resolve critical vulnerabilities;

•we provide periodic training and testing, including phishing tests, to help our employees understand cybersecurity risks and their responsibility in mitigating those risks; and

•we insure against potential losses from cyber incidents by maintaining cybersecurity insurance.

We have a written incident response plan that identifies the steps to be taken in response to a cybersecurity incident that includes investigation, escalation and remediation provisions. The incident response plan includes standard processes for reporting and escalating cybersecurity incidents to senior management.

We have processes to evaluate third party service providers and vendors that have access to sensitive systems and Company and customer data, which does include the use of cybersecurity questionnaires and due diligence procedures such as assessments of that service provider’s cybersecurity posture.

Management’s Role

Management has implemented risk management structures, policies and procedures, and manages our risk exposure on a day-to-day basis. The Company has a dedicated cybersecurity organization within its technology department that focuses on current and emerging cybersecurity matters. The Company’s cybersecurity function is led by the Company’s Chief Information Officer ("CIO") and the Company’s Chief Information Security Officer ("CISO"), who reports to the Company’s CIO. The CIO and his direct reports, including the CISO, discuss action items related to risks at a standing monthly meeting. The CISO and many members of his team have multiple decades of cybersecurity related experience. Risk reporting is provided at monthly meetings of the Firm's cross-business Cybersecurity Committee and periodic presentations to the Firm’s Risk Management Committee, at which many members of the Company’s senior management are present.

The CEO meets regularly with the CIO to discuss cybersecurity threats and existing and potentially new technology systems including those related to cybersecurity. The CIO and CISO have a standing monthly meeting with the President and General Counsel to discuss potential vulnerabilities in the cyber environment. The President formerly ran the Information Technology Department at the Firm and as a result has significant systems experience including experience related to cybersecurity.

Board Oversight

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The Board of Directors, both directly and through the Audit Committee, oversees management’s responsibility of ensuring proper functioning of our cybersecurity risk management program. In particular, the Audit Committee assists the Board in its oversight of management’s responsibility to assess, manage and mitigate cybersecurity risks. Recently the Audit Committee added a member with significant cybersecurity experience. The Audit Committee receives a cybersecurity update at each regular meeting of the Board covering cybersecurity risks, cybersecurity staffing and staff development including certifications and training. These updates are given either in person by the CIO and CISO or in written presentations created by them.

As of the date of this filing, the Company has not identified any cybersecurity threats that have materially affected or are reasonably anticipated to have a material effect on the Company’s business strategy, results of operations or financial condition. Although the Company has not experienced cybersecurity incidents that are individually, or in the aggregate, material, the Company has experienced cyberattacks in the past, which the Company believes have thus far been mitigated by preventative, detective, and responsive measures put in place by the Company. Given the continuing reports of cyber incidents in general, we believe that the Company will most likely continue to be a target of cybersecurity attacks by bad actors.

For additional information on how risks from cybersecurity threats may adversely affect the Company see “Item 1A. Risk Factors-Risks Related to Our Business” in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

REGULATORY MATTERS AND DEVELOPMENTS

See the discussion of the regulatory environment in which we operate and the impact on our operations of certain rules and regulations in Item 1 “Business - Regulation” in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

Oppenheimer and many of its affiliates are each subject to various regulatory capital requirements. As of March 31, 2025, all of our active regulated domestic and international subsidiaries had net capital in excess of minimum requirements. See note 15 to the condensed consolidated financial statements in Item 1 for further information on regulatory capital requirements.

On December 20, 2024, the SEC adopted rule amendments to SEC Rule 15c3-3 (the customer protection rule) to require certain broker-dealers, including those with average total credits (amounts owed to customers) equal to or greater than $500 million, to increase the frequency with which they perform computation of the net cash they owe customers and proprietary accounts of other broker-dealers ("PAB") from weekly to daily. Impacted entities must perform the customer and PAB reserve computations daily beginning no later than December 31, 2025. We anticipate that the new amendments will impact our principal broker dealer and may result in an increase in required staffing levels.

The Organization for Economic Co-operation and Development (“OECD”) issued the Global Anti-Base Erosion Model Rules (“Pillar II”), which among its provisions, requires companies to pay a minimum corporate tax rate of 15% in each jurisdiction in which they do business. While we have foreign affiliates that operate within the scope of Pillar II, we do not believe that it will have a material impact on our consolidated results of operations or effective income tax rate.

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FACTORS AFFECTING "FORWARD-LOOKING STATEMENTS"

From time to time, the Company may publish or make oral statements that constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995 which provides a safe harbor for forward-looking statements. These forward-looking statements may relate to such matters as anticipated financial performance, future revenues, earnings, liabilities or expenses, business prospects, projected ventures, new products, anticipated market performance, and similar matters. The Company cautions readers that a variety of factors could cause the Company’s actual results to differ materially from the anticipated results or other expectations expressed in the Company’s forward-looking statements. These risks and uncertainties, many of which are beyond the Company’s control, include, but are not limited to: (i) transaction volume in the securities markets, (ii) the volatility of the securities markets, (iii) fluctuations in interest rates, (iv) changes in regulatory requirements that could affect the cost and method of doing business, (v) general economic conditions, both domestic and international, including inflation, recession, stagflation, and changes in consumer confidence and spending, (vi) competition from existing financial institutions, new entrants and other participants in the securities markets and financial services industry, (vii) potential cybersecurity threats and attacks, (viii) legal developments affecting the litigation experience of the securities industry and the Company, (ix) changes in foreign, federal and state tax laws that could affect the popularity of products sold by the Company or impose taxes on securities transactions, (x) the adoption and implementation of the SEC’s “Regulation Best Interest” and other regulations adopted in recent years, (xi) war, terrorist acts and nuclear confrontation as well as political unrest, including events relating to the Israel-Hamas war, the conflict with Hezbollah and Iran and related unrest in the Middle East and Russia's invasion of Ukraine and related Western sanctions, (xii) the Company’s ability to achieve its business plan, (xiii) the effects of the economy on the Company’s ability to find and maintain financing options and liquidity, (xiv) credit, operational, legal and regulatory risks, (xv) risks related to foreign operations, (xvi) the effect of technological innovation on the financial services industry and securities business, (xvii) risks related to election results, Congressional gridlock, political and social unrest, government shutdowns and investigations, government spending, immigration, impact of tariffs and trade wars, bank failures, changes in or uncertainty surrounding regulation, and the potential for default by the U.S. government on the nation's debt, (xviii) risks related to changes in capital requirements under international standards that may cause banks to back away from providing funding to the securities industry and (xix) economic, market, political and social impact of, and uncertainty relating to, any catastrophic events, including pandemics, epidemics or other outbreaks of disease, climate-related risks such as natural disasters and extreme weather events. There can be no assurance that the Company has correctly or completely identified and assessed all of the factors affecting the Company's business. See “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

During the three months ended March 31, 2025, there were no material changes to the information contained in Part II, Item 7A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

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Item 4. CONTROLS AND PROCEDURES

The Company carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rule 13a–15(e) of the Exchange Act. Based on this evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report.

Management, including the Chief Executive Officer and Chief Financial Officer, does not expect that the Company's disclosure controls and procedures or its internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or omission. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based, in part, upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost–effective control system, misstatements due to error or fraud may occur and not be detected.

The Company confirms that its management, including its Chief Executive Officer and its Chief Financial Officer, concluded that the Company's disclosure controls and procedures are effective to ensure that the information required to be disclosed by the Company in its reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company's internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the three months ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting.

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PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

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Act, and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules G-17 and G-27 in relation to its sales of municipal notes pursuant to an exemption from continuing disclosure contained in Rule 15c2-12. On September 13, 2022, the SEC filed a complaint against Oppenheimer in the United States District Court for the Southern District of New York (the “Court") alleging that Oppenheimer violated Section 15B(c)(1) of the Exchange Act and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules. The SEC asked the Court to enter an order enjoining Oppenheimer from violating the above-referenced rules and requiring disgorgement and payment of a civil penalty. On January 30, 2024, Oppenheimer and the SEC reached an agreement in principle to settle the litigation pursuant to which Oppenheimer would pay a civil penalty of $1.2 million. The settlement is subject to Oppenheimer obtaining a waiver of certain statutory disqualifications.

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Item 1A. RISK FACTORS

During the three months ended March 31, 2025, there were no material changes to the information contained in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information with respect to shares of the Company’s Class A Stock purchased by the Company during each of the three months in the Company’s quarter ended March 31, 2025:


	(a)	(b)	(c)	(d)
Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs (1)
January 1 - 31, 2025	—	$—	—	497,893
February 1 - 28, 2025	—	$—		497,893
March 1 - 31, 2025	1,530	$58.79	1,530	496,363
Q1 2025 Total	1,530	$58.79	1,530	496,363

(1) None of the foregoing authorizations is subject to expiration.

Item 5. OTHER INFORMATION

During the period covered by this Quarterly Report on Form 10-Q, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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Item 6. EXHIBITS


31.1*			Certification of Albert G. Lowenthal

31.2*			Certification of Brad M. Watkins

32*			Certification of Albert G. Lowenthal and Brad M. Watkins

101*			Interactive data files pursuant to Rule 405 of Regulation S-T (unaudited): (i) the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, (ii) the Condensed Consolidated Income Statements for the three months ended March 31, 2025 and 2024, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024, (iv) the Condensed Consolidated Statements of Changes in Stockholders' Equity and Noncontrolling Interests for the three months ended March 31, 2025 and 2024, (v) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024, and (vi) the notes to the Condensed Consolidated Financial Statements.+
104*			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*			Filed herewith
+			This information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


OPPENHEIMER HOLDINGS INC.

Signed at New York, New York, this 25th day of April, 2025

By: /s/ Albert G. Lowenthal
Albert G. Lowenthal, Chairman and Chief Executive Officer
(Principal Executive Officer)

By: /s/ Brad M. Watkins
Brad M. Watkins, Chief Financial Officer
(Principal Financial and Accounting Officer)