PIPER SANDLER COMPANIES

Cash and cash equivalents at December 31, 2024 were $482.8 million, an increase of $99.7 million from December 31, 2023. Operating activities provided $313.3 million of cash, primarily driven by cash generated from earnings and an increase in operating liabilities. The increase in operating liabilities was primarily due to an increase in accrued compensation of $56.6 million, the result of higher compensation costs in 2024 resulting from increased revenues and operating profits. In 2024, investing activities used $31.8 million, of which $16.3 million was used for the acquisition of Aviditi Advisors and $15.5 million was used for the purchase of fixed assets. In 2024, cash of $180.6 million was used in financing activities, as we paid $73.7 million in dividends, repurchased $66.4 million of common stock and reduced short-term financing by $37.3 million.

Cash and cash equivalents at December 31, 2023 were $383.1 million, an increase of $17.5 million from December 31, 2022. Operating activities provided $275.6 million of cash, primarily driven by cash generated from earnings and a decrease in operating assets. The decrease in operating assets was primarily due to a decline in receivables from brokers, dealers and clearing organizations of $88.5 million, as well as a decrease in other assets of $28.8 million driven by lower fee receivables. In 2023, investing activities used $10.1 million for the purchase of fixed assets. Cash of $249.6 million was used in financing activities, as we repaid the $125 million of Class B unsecured fixed rate senior notes upon maturity on October 15, 2023. In addition, we paid $84.4 million in dividends and repurchased $70.7 million of common stock during 2023.