Piper Sandler Companies (NYSE:PIPR) outlined a strong finish to 2025 and pointed to continued momentum entering 2026, citing improved market conditions, higher advisory activity, and broad-based contributions across businesses.
Fourth-quarter and full-year performance
Chairman and CEO Chad Abraham said the firm “performed well during 2025,” highlighted by record fourth-quarter adjusted net revenues of $635 million, a 27.2% operating margin, and adjusted EPS of $6.88. For the full year, the company reported adjusted net revenues of $1.9 billion, a 21.9% operating margin, and adjusted EPS of $17.74.
Investment banking: advisory strength and expanding non-M&A contributions
Corporate investment banking was the largest driver of results. Abraham said the firm generated $469 million of corporate investment banking revenue in the fourth quarter, “driven by robust M&A activity as well as solid debt capital markets advisory activity.” For the year, corporate investment banking revenue totaled $1.3 billion, up 28% from 2024, with five of seven industry teams growing year-over-year.
Within that segment, advisory was the standout. Fourth-quarter advisory revenue was $403 million, up 44% year-over-year. Full-year advisory revenue reached a record $1 billion, up 28% from 2024 and above the firm’s prior high from 2021. Piper Sandler completed 335 advisory transactions in 2025, up 16% from the prior year, and the firm cited higher average fees. Abraham said the company ranked No. 2 by number of announced U.S. M&A deals under $1 billion and No. 1 in U.S. bank M&A by number of announced transactions.
Abraham emphasized that non-M&A advisory has become increasingly meaningful. He said the most significant components include:
- Debt capital markets advisory
- Private capital advisory
- Restructuring
Non-M&A advisory revenue exceeded 25% of total advisory revenues in 2025, according to Abraham, and debt capital markets advisory posted its third consecutive year of record revenues, aided by higher average fees and a broader client base.
On the outlook, Abraham said several larger advisory transactions closed in the final week of 2025, while engagement mandates in the pipeline are “building.” He said the company expects “another strong year” of advisory revenue in 2026.
Corporate financing activity and market sensitivity
Corporate financing revenue was $67 million in the fourth quarter, with the firm completing 31 financings and raising $15 billion for clients, centered in healthcare and depositories. For the year, corporate financing revenue was $217 million, up 25%, as the second half strengthened. The firm completed 122 financings in 2025, raising $48 billion.
Abraham said January financing activity was strong and that the pipeline is healthy, with “strong demand from institutional investors looking to deploy capital across sectors.” During the Q&A, he also cautioned that equity capital markets can shift quickly. He noted Piper Sandler’s concentration in healthcare within equity capital markets and said healthcare had held up better than sectors tied to a tech/software-led sell-off, while acknowledging that broader weakness can lead investors to pull back from new issues.
Public finance and brokerage: municipal strength, record equity brokerage
President Deb Schoneman said market conditions in public finance remained favorable, supported by infrastructure funding needs and investor demand. The firm generated $39 million of municipal financing revenue in the fourth quarter, down 5% year-over-year, and $146 million for 2025, its second strongest year on record. She said revenues increased 19% year-over-year, exceeding negotiated market issuance growth of 12%.
Piper Sandler underwrote 555 municipal negotiated transactions in 2025, raising $19 billion of par value, and maintained its position as the No. 2 underwriter by number of transactions. Schoneman highlighted broad activity across governmental and specialty sectors, as well as strength in regions including Texas, California, Oregon, and the Midwest. Looking to 2026, she said the company expects similar issuance volumes to 2025, with seasonality returning to a more typical pattern.
In brokerage, Schoneman reported a quarterly record $64 million of equity brokerage revenue in the fourth quarter, contributing to full-year record revenue of $230 million. She said the platform attracted approximately 1,700 unique clients and traded 11 billion shares in 2025, and she expects 2026 equity brokerage revenue to be similar to 2025.
Fixed income revenue was $48 million in the fourth quarter, down from a strong third quarter and year-ago period. Full-year fixed income revenue rose 9% to $203 million, driven by activity with depository clients. Schoneman tied the strength to increased bank M&A and balance sheet repositioning amid a changing rate environment, along with growth among asset managers and public entities. She said the firm expects clients to be more active in 2026 in anticipation of further rate cuts and additional work tied to a robust M&A environment.
Expenses, capital returns, dividend actions, and stock split
CFO Kate Clune said fourth-quarter 2025 results included operating income of $172 million and net income of $123 million on an adjusted basis, while full-year operating income was $411 million and net income was $318 million.
The firm’s compensation ratio was 60.1% in the fourth quarter and 61.4% for the full year, both improved from 2024 levels, which Clune attributed to higher net revenues and operating discipline. She said the firm expects the 2026 compensation ratio to be similar to 2025.
Non-compensation expenses (excluding reimbursed deal costs) were $67 million in the fourth quarter and $271 million for the year, up 8%, driven by increased business activity, the relocation of the Minneapolis headquarters office, and business investments including technology and consulting. Clune said 2026 non-compensation expenses should rise modestly, with the relocation of the New York office as a notable driver, while the full-year non-compensation expense ratio is expected to be similar to 2025.
Clune reported an income tax rate of 28.5% in the fourth quarter. For 2025, the effective tax rate was 22.6% due to $30 million of tax benefits related to vesting of restricted stock awards; excluding those benefits, the effective rate was 29.8%. She said the firm continues to expect a full-year tax rate around 30%, excluding vesting impacts.
On capital returns, Piper Sandler returned $239 million to shareholders in 2025 through repurchases and dividends. Repurchases included approximately 421,000 shares, totaling $125 million, related to employee tax withholding on vesting of restricted stock awards and open-market activity, which Clune said offset dilution from annual grants. Dividends totaled $114 million, or $5.70 per share, in 2025 through quarterly and special dividends.
The board approved a special cash dividend of $5 per share tied to full-year 2025 results. Including that special dividend and quarterly dividends, total 2025 dividends equal $7.70 per share, representing a 43% payout ratio of adjusted net income. The board also approved a quarterly cash dividend of $0.70 per share. Both the special and quarterly dividends are scheduled to be paid on March 13 to shareholders of record as of March 3.
Clune also announced the board approved a 4-for-1 forward stock split intended to increase liquidity and accessibility, accompanied by a proportional increase in authorized shares. The stock is set to begin trading on a split-adjusted basis at the start of trading on March 24, 2026.
In Q&A, Abraham said the firm expects to continue using “all the tools in the toolbox” for capital deployment, including dividends, buybacks, and acquisitions. He said improved liquidity and the announced split could allow the firm to “lean into the buyback a little more” than in the past, while also expressing optimism about acquisition opportunities as conditions improve for potential sellers.
About Piper Sandler Companies (NYSE:PIPR)
Piper Sandler Companies (NYSE: PIPR) is an investment bank and institutional securities firm that provides a range of capital markets and advisory services to corporations, institutions, municipalities and high-net-worth individuals. The firm’s core activities include investment banking and M&A advisory, underwriting and distribution of equity and debt securities, public finance, and sector-focused advisory across industries such as healthcare, energy, financial services and technology.
In addition to traditional investment banking, Piper Sandler offers equity and fixed income research, institutional sales and trading, and market-making services.
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