Oppenheimer surges to record highs on record earnings
Investment bank posts 593% profit jump as wealth management AUM hits $55.2 billion
Oppenheimer Holdings shares rallied more than 9 percent on Friday, touching a fresh 52-week high after the mid-market investment bank reported a near six-fold surge in quarterly earnings driven by robust deal activity and record assets under management.
The New York-based firm's stock climbed to $83.28, extending its gain for the year and surpassing its previous 52-week peak of $82.39. The surge came after Oppenheimer announced net income of $74.4 million for the fourth quarter of 2025, a 593 percent increase from $10.7 million in the same period a year earlier. Revenue rose 25.9 percent to $472.6 million, up from $375.4 million.
Diluted earnings per share jumped 607.6 percent to $6.51, while basic earnings per share reached $7.08 compared to $1.04 in the fourth quarter of 2024. The performance capped what chief executive Robert S. Lowenthal described as a record year for the century-old financial institution.
"The Firm's operating results for the fourth quarter and full year 2025 were much improved," Lowenthal said in a statement. "We achieved record full year and quarterly earnings per share with increased revenues driven by broad-based strength across our core businesses."
The company's wealth management division, its largest business segment, drove much of the growth. Assets under management swelled to a record $55.2 billion by December 31, 2025, up 11.7 percent year-over-year. Wealth management revenue increased 13.3 percent to $287.3 million in the quarter, with pre-tax income soaring 84 percent to $98.8 million.
Advisory fees within the wealth management unit jumped 28.4 percent, benefiting from higher market valuations and increased incentive fees from alternative investments. Both retail commissions and advisory fees reached record highs for the full year, rising 6.2 percent and 14.9 percent respectively.
Perhaps most notably, Oppenheimer's capital markets business engineered a dramatic turnaround from the previous year. The segment, which includes investment banking and trading, generated revenue of $182.9 million in the fourth quarter, up 53.3 percent from the prior year. More importantly, it swung to a pre-tax profit of $52.8 million from a $5 million loss in the same quarter of 2024.
Investment banking activity surged during the quarter, with advisory fees climbing 41.3 percent and equity underwriting fees showing significant gains. The firm cited increased deal flow in healthcare and technology sectors as key drivers.
For the full year 2025, Oppenheimer reported net income of $148.4 million, up 107.4 percent from $71.6 million in 2024. Total revenue increased 14.4 percent to $1.6 billion. Book value per share climbed to $93.81 at year-end from $82.31 at the end of 2024, while tangible book value per share rose to $76.78 from $64.96.
The strong results reflect a broader recovery in capital markets activity following a challenging period for the investment banking industry. Lowenthal noted that both operating segments benefited from a "generally favorable macroeconomic environment, including a sustained rise in equity markets and interest in AI platforms."
Oppenheimer, which traces its roots to 1881, focuses on middle-market companies and high-net-worth individuals. Its relatively smaller scale compared to Wall Street giants like Goldman Sachs or Morgan Stanley allows it to be more nimble in pursuing specialized transactions and serving niche client segments.
The firm's balance sheet remains conservatively positioned, with shareholders' equity reaching fresh highs, according to management. Lowenthal said the company is "well-positioned to navigate evolving market and economic conditions and capitalize on opportunities across our businesses" and expects momentum to continue into 2026.
Analysts have been watching Oppenheimer closely as a bellwether for mid-tier investment banking performance. The company's ability to generate record earnings despite competitive pressure from larger institutions suggests sustained demand for specialized financial services among middle-market clients.
The strong quarter follows a broader trend of improving deal activity in late 2025, as companies resumed merger discussions and initial public offerings after a prolonged slowdown. Oppenheimer's emphasis on healthcare and technology sectors positioned it to benefit from areas that saw particularly robust deal flow.