PIPER SANDLER COMPANIES
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
PIPR$65.92-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001230245-25-000080
Management's Discussion and Analysis of Financial Condition and Results ofExecutive OverviewCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001230245-25-000137
Management's Discussion and Analysis of Financial Condition and Results ofExecutive OverviewThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 20 previous paragraphs and 21 current paragraphs.
11 unchanged; 4 reworded; 6 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
We have taken the following important steps in the execution of our growth strategy:
Current report
•On August 1, 2025, we announced a definitive agreement to acquire G Squared Capital Partners LLC, a boutique investment bank specializing in government services and defense technology. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions.
Current report
Our advisory services results continued to benefit from our sector and product diversification during the first half of 2025 even as the number of completed middle-market mergers and acquisitions ("M&A") transactions declined year-over-year. Although volatility early in the second quarter of 2025 impacted some deal processes, the outlook for advisory services improved in the current quarter. We have a robust pipeline of announced and in-process M&A transactions and we expect our advisory services revenues in the third quarter of 2025 to be largely consistent with the second quarter.
Current report
While certain areas of corporate financing activity are improving, other areas continued to be impacted by sector-specific factors. The economic fee pool for companies with sub-$5 billion of market cap in the first half of 2025 decreased 19 percent year-over-year, with some of our core sectors down more meaningfully. Our pipeline remains strong and diverse and our corporate financing activity for the third quarter of 2025 is off to a good start.
Current report
Our fixed income services business experienced robust activity among our depository clients during the second quarter of 2025 due to more accommodative markets. In addition, the acceleration of bank M&A activity has resulted in increased opportunities for balance sheet restructuring trades. Our non-depository client activity has been subdued as a result of spread tightening and relative value concerns. The combination of potential short-term benchmark interest rate cuts by the U.S. Federal Reserve and a steepening yield curve should continue to enhance client engagement and activity; however, given our strong second quarter results, we anticipate fixed income services revenues to soften in the third quarter of 2025.
Current report
Our municipal financing activity was robust across both our governmental and specialty sector businesses in the second quarter of 2025. Market conditions remained favorable during the quarter driven by growing infrastructure needs, relatively stable borrowing conditions and strong investor demand due to higher yields. These dynamics led issuers to more actively access the market. We have a robust pipeline yet we expect municipal financing revenues for the third quarter of 2025 to moderate from the very strong second quarter.
Removed paragraphs (5)
Previous report
Our advisory services performance for the first quarter of 2025 was broad-based across industry groups as our results continue to benefit from our sector and product diversification. With heightened volatility, we expect active mergers and acquisitions ("M&A") transaction cycles to slow and new transaction announcements to be delayed. We anticipate that the conversion of our pipeline will be impacted and that second quarter of 2025 advisory services revenues will decline from the first quarter levels. However, we expect certain areas of the M&A market to remain active, such as service-based business models, and those companies that are less impacted by trade barriers will continue to transact at strong valuations. When markets become more constructive, we anticipate a strong and fairly broad rebound in activity, particularly with financial sponsors, which we are well positioned to capitalize on.
Previous report
Our corporate financing activity declined in the first quarter as the market environment for equity financing weakened. Declining equity valuations and increased uncertainty resulted in a meaningful decline in the economic fee pool year-over-year, while the healthcare economic fee pool decreased over 60 percent from the first quarter of 2024. Equity financing activity has been very slow to start the second quarter and we expect that trend to continue until volatility subsides and valuations stabilize.
Previous report
Our fixed income services business experienced solid activity across most of our client verticals during the first quarter of 2025 due to more accommodative markets. The near-term fixed income outlook remains cautious as persistent rate volatility continues to hamper client activity. However, the combination of potential short-term benchmark interest rate cuts by the U.S. Federal Reserve, a steepening yield curve, and reduced day-to-day volatility should increase investor confidence in committing capital into fixed income markets.
Previous report
Our municipal financing activity was robust in the first quarter of 2025 across both our governmental and specialty sector businesses. Favorable market conditions, combined with growing infrastructure needs, led many issuers to access the market. However, activity in the second quarter of 2025 has started slowly as significant rate volatility has made it challenging to price transactions and several transactions have been postponed. We have a robust pipeline of issuers looking to access the market, but our near-term outlook is dependent on stabilization of the market.
Reworded paragraphs (4)
Previous wording
Item 2 in this Form 10-Q includes financial measures that are not prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). Management believes that presenting these results and measures on an adjusted basis in conjunction with the corresponding U.S. GAAP measures provides the most meaningful basis for comparison of our operating results across periods and enhances the overall understanding of our current financial performance by excluding certain items that may not be indicative of our core operating results. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. See "Explanation and Reconciliation of Non-GAAP Financial Measures" for a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures and a reconciliation of U.S. GAAP to adjusted, non-GAAP financial information.
Current wording
Part I, Item 2 of this Quarterly Report on Form 10-Q includes financial measures that are not prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). Management believes that presenting these results and measures on an adjusted basis in conjunction with the corresponding U.S. GAAP measures provides the most meaningful basis for comparison of our operating results across periods and enhances the overall understanding of our current financial performance by excluding certain items that may not be indicative of our core operating results. The non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. See "Explanation and Reconciliation of Non-GAAP Financial Measures" for a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures and a reconciliation of U.S. GAAP to adjusted, non-GAAP financial information.
Previous wording
As part of our growth strategy, on August 23, 2024, we completed the acquisition of Aviditi Capital Advisors, LLC, an alternative investment bank providing full lifecycle services to financial sponsors, global alternative investment managers and limited partner investors. The transaction added private capital advisory capabilities to our platform.
Current wording
•On August 23, 2024, we completed the acquisition of Aviditi Capital Advisors, LLC ("Aviditi Advisors"), an alternative investment bank providing full lifecycle services to financial sponsors, global alternative investment managers and limited partner investors. The transaction added private capital advisory capabilities to our platform.
Previous wording
During the first quarter of 2025, uncertainty concerning the outlook for the U.S. economy increased in response to announcements by the U.S. presidential administration concerning its trade policy, including the implementation of increased global tariffs. The effects of announced U.S. trade policy, and any retaliatory actions (i.e., "trade wars") by global trading partners, including China and the European Union, and their potential impact on inflation, supply chains, and global trade is difficult to predict and has led to volatility in financial markets. Furthermore, there are concerns that this uncertainty has begun to lead to a global economic deceleration, and increased fears of a recession in the U.S. Monetary policy in the U.S. remains a prevalent factor impacting the economy and financial markets. The U.S. Federal Reserve held its short-term benchmark interest rate steady in the first quarter of 2025, indicating that it will monitor the inflationary impacts of U.S. trade policy as it balances its goals of maximum employment and stable prices. In addition, geopolitical concerns, including the conflicts in the Middle East and Eastern Europe and increased tensions with China as a result of the current trade war, could negatively impact financial market activity. These risks and uncertainties may pose consequences for the global economy and inject periods of heightened volatility into the U.S. equity and debt markets and may impact our overall client and business activity. A significant decrease in uncertainty, or resolutions to trade disputes and geopolitical concerns, would likely be constructive for global and U.S. economic conditions, and consequently, our client and business activity.
Current wording
During the second quarter of 2025, financial market volatility moderated and equity markets recovered after a sharp sell-off in April with major indices reaching all-time highs, which has led to a more constructive outlook and an increase in our client and business activity. Monetary policy in the U.S. remains a prevalent factor impacting the economy and financial markets. The U.S. Federal Reserve held its short-term benchmark interest rate steady in the second quarter of 2025, indicating that it will monitor the inflationary impacts of U.S. trade policy as it balances its goals of maximum employment and stable prices. The effects of changes to U.S. trade policy, and any retaliatory actions (i.e., "trade wars") by global trading partners, including China, and their potential impact on inflation, supply chains, and global trade remains difficult to predict and has led to periods of heightened volatility in financial markets. In addition, geopolitical concerns, including the conflicts in the Middle East and Eastern Europe and increased tensions with China as a result of the current trade war, could negatively impact financial market activity. A significant decrease in uncertainty, or resolutions to trade disputes and geopolitical concerns, would likely be constructive for global and U.S. economic conditions, and consequently, our client and business activity.
Previous wording
The equity markets experienced increased volatility and higher volumes during the first quarter of 2025. Our equity brokerage business continues to benefit from the quality of our trade execution and research product, especially during periods of heightened volatility. The second quarter of 2025 has started strong, and as long as volatility persists, activity should remain elevated as clients actively position their portfolios in this rapidly evolving landscape.
Current wording
The equity markets experienced increased volatility and higher volumes during the second quarter of 2025. Our equity brokerage business continues to benefit from the quality of our trade execution and research product as we assist clients in navigating the heightened volatility and rapidly changing landscape. We expect our equity brokerage revenues to moderate from second quarter levels as volatility has normalized.