Oppenheimer’s diluted EPS falls 75.3% even as AUM hits a record (NYSE: OPY)

Posted by Danessa Lincoln on Oct 31st, 2026

What happened

Oppenheimer Holdings Inc. (NYSE: OPY) said third-quarter net income fell to $5.5 million from $21.7 million a year earlier. Diluted earnings per share were $0.47, down 75.3% from $1.90. Revenue fell 10.0% to $382.0 million from $424.4 million.

Capital Markets swung to a pre-tax loss of $9.9 million from income of $12.3 million. Equities underwriting fees fell 82.0% on fewer transactions. Fixed income sales and trading revenue fell 23.8%.

Wealth Management revenue rose 2.5% to $266.2 million. Advisory fees climbed 15.3% on higher average assets under management (AUM). AUM reached a record $59.6 billion at Sept. 30. Retail commissions fell 13.9% on lower trading activity.

A $21.0 million pre-tax expense on a long-term incentive program for financial advisors also weighed on results. The program is tied to the OPY stock price, which rose from $105.54 to $117.96 during the quarter. Oppenheimer changed the program formula in 2026 to reduce grants, but the full effect will take several years.

Key numbers

Metric	Latest	Change	Source
Diluted EPS, Q3	$0.47	from $1.90, -75.3%	Oppenheimer Q3 2026 earnings release (SEC 8-K Ex. 99.1)
Revenue, Q3	$382.0 million	from $424.4 million, -10.0%	Oppenheimer Q3 2026 earnings release (SEC 8-K Ex. 99.1)
Net income attributable to Oppenheimer, Q3	$5.5 million	from $21.7 million, -74.9%	Oppenheimer Q3 2026 earnings release (SEC 8-K Ex. 99.1)
Net margin, Q3	1.4%	from 5.1%, -3.7 percentage points	Calculated from SEC 8-K
Wealth Management AUM at Sept. 30	$59.6 billion	from $55.1 billion, +$4.5 billion	Oppenheimer Q3 2026 earnings release (SEC 8-K Ex. 99.1)
Capital Markets pre-tax result, Q3	-$9.9 million	from $12.3 million	Oppenheimer Q3 2026 earnings release (SEC 8-K Ex. 99.1)

Read more: Oppenheimer (OPY) company research

Why it matters

OptimistFi calculates that net margin narrowed from 5.1% to 1.4%, about 3.7 percentage points, because net income fell faster than revenue. Adjusted net income, a non-GAAP measure that leaves out the incentive expense, was $20.9 million against $31.7 million a year earlier. Earnings fell even without it.

OptimistFi has argued that Oppenheimer builds value from fee-bearing wealth management assets and higher-margin capital markets work. This quarter supports only the first half, so the view is mixed. Advisory fees grew, but Capital Markets lost money.

The record AUM comes with caveats. The $4.5 billion rise from a year earlier combined $6.2 billion of higher asset values on existing holdings with $1.7 billion of net distributions. Wealth Management pre-tax income still fell 11.0% to $55.6 million.

CEO Robert S. Lowenthal called earnings disappointing. He pointed to lower retail trading, reduced investment banking volumes and the stock-linked expense. Stockholders' equity reached a record $991.1 million.

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What's next

The board declared a quarterly dividend of $0.20 per share, payable Nov. 27 to holders of record Nov. 13.

The next quarterly report will show whether Capital Markets returns to profit and whether the lower grant count begins to trim the stock-linked incentive expense.