Piper Sandler

Piper Sandler (PIPR) Q1 2025 Earnings

Reported May 2, 2025 at 7:03 AM ET · SEC Source

Q1 25 EPS

$4.09

BEAT +43.76%

Est. $2.85

Q1 25 Revenue

$357.3M

MISS 2.84%

Est. $367.7M

vs S&P Since Q1 25

-103.0%

TRAILING MARKET

PIPR -69.8% vs S&P +33.2%

Market Reaction

Did PIPR Beat Earnings? Q1 2025 Results

Piper Sandler delivered a standout first quarter in 2025, posting adjusted EPS of $4.09 against a consensus estimate of $2.85, a 43.76% beat, even as revenue of $357.27 million came in 2.84% below expectations despite growing 7.2% year-over-year. The… Read more Piper Sandler delivered a standout first quarter in 2025, posting adjusted EPS of $4.09 against a consensus estimate of $2.85, a 43.76% beat, even as revenue of $357.27 million came in 2.84% below expectations despite growing 7.2% year-over-year. The headline earnings story was driven by a record first quarter in advisory services, where revenues surged 38% year-over-year to $216.80 million, fueled by strength across financial services, healthcare, and chemicals groups and 55 completed transactions. A significant tailwind came from $25.40 million in tax benefits tied to restricted stock vesting, which pushed the effective tax rate to negative 24.9% and amplified the bottom-line beat. Partially offsetting the quarter's strength was a $29.60 million GAAP investment loss from lower public equity valuations in firm-managed alternative asset funds, compressing the GAAP pre-tax margin to 8.2% from 15.3% a year ago. Piper Sandler also returned $151.00 million to shareholders through buybacks and dividends during the period.

Key Takeaways

  • Record first quarter advisory services revenues driven by strong contributions from financial services, healthcare, and chemicals groups
  • Advisory services revenues grew 38% year-over-year driven by a higher average fee
  • Institutional brokerage revenues up 9% year-over-year driven by increased client activity across the platform
  • Equity brokerage revenues increased 10% year-over-year driven by higher volatility
  • Municipal financing revenues increased 27% year-over-year driven by increased issuance activity from more accommodative market conditions
  • Investment loss of $29.6 million primarily from lower public company equity valuations compressed GAAP pre-tax margin
  • $25.4 million of income tax benefits related to vesting of restricted stock awards boosted earnings
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PIPR YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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PIPR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We are pleased to report a strong start to 2025, led by advisory services which achieved record first quarter revenues.”

— Chad Abraham, Q1 2025 Earnings Press Release