PIPER SANDLER COMPANIES

Our business principally consists of providing investment banking and institutional brokerage services to corporations, private equity groups, public entities, non-profit entities and institutional investors in the U.S. and Europe. We operate through one reportable business segment in order to maximize the value we provide to clients by leveraging our diversified expertise and broad relationships of the experienced professionals across our company. Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for a full description of our business, including our business strategy.

We have taken the following steps in the execution of our growth strategy:

•On September 12, 2025, we completed the acquisition of G Squared Capital Partners LLC ("G Squared"), a boutique investment bank specializing in government services and defense technology. The acquisition expands the scale of our investment banking technology sector.

•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.

Financial Highlights

(1)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.

External Factors Impacting Our Business

Performance in the financial services industry in which we operate is highly correlated to the overall strength of macroeconomic conditions, financial market activity and the effect of geopolitical events. Overall market conditions are a product of many factors, which are beyond our control, often unpredictable and at times inherently volatile. These factors may affect the financial decisions made by investors, including their level of participation in the financial markets. In turn, these decisions may affect our business results. With respect to financial market activity, our profitability is sensitive to a variety of factors, including the demand for investment banking services as reflected by the number and size of advisory transactions, equity and debt corporate financings, and municipal financings; the relative level of volatility of the equity and fixed income markets; changes in interest rates and credit spreads (especially rapid and extreme changes); overall market liquidity; the level and shape of various yield curves; the volume and value of trading in securities; and overall equity valuations.

Factors that differentiate our business within the financial services industry also may affect our financial results. For example, our capital markets business focuses on specific industry sectors while serving principally a middle-market clientele. If the business environment for our focus sectors is impacted adversely, our business and results of operations could reflect these impacts. In addition, our business, with its specific areas of focus and investment, may not track overall market trends. Given the variability of the capital markets and securities businesses, our earnings may fluctuate significantly from period to period, and results for any individual period should not be considered indicative of future results.

Outlook for the Remainder of 2025

The market environment improved significantly during the third quarter of 2025. The equity markets reached record highs, and with lower volatility, equity underwriting meaningfully improved. Monetary policy in the U.S. remains a prevalent factor impacting the economy and financial markets. The U.S. Federal Reserve lowered its short-term benchmark interest rate in the third quarter of 2025 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 continues to contribute to elevated economic outlook uncertainty. In addition, geopolitical concerns, including the conflicts in the Middle East and Eastern Europe and tensions with China as a result of the current trade war, could negatively impact financial market activity. Additionally, a prolonged shutdown of the U.S. federal government could also negatively impact capital market activity. A significant decrease in uncertainty, or resolutions to trade disputes and geopolitical concerns, would likely be constructive for overall economic conditions, and consequently, our client and business activity.

Our advisory services results continued to benefit from our sector and product diversification as well as improvement in the market outlook for mergers and acquisitions ("M&A") activity. Our advisory services pipeline is robust and building, and we expect advisory services revenues for the fourth quarter of 2025 to be similar to last year's fourth quarter.

Our corporate financing activity was strong in the third quarter of 2025 driven by more favorable market conditions. The overall market environment became more conducive resulting from reduced volatility and strong valuations. While our pipeline remains strong and diverse, we expect fourth quarter corporate financing revenues to moderate from the particularly strong third quarter.

Our equity brokerage business continues to benefit from the quality of our trade execution and research product. The fourth quarter tends to be our equity brokerage business's strongest quarter of the year and we expect our results to follow that trend for 2025.

Our fixed income services results benefited from solid client activity across most products and client verticals during the third quarter of 2025 in anticipation of further short-term benchmark interest rate cuts by the U.S. Federal Reserve. In addition, we continued to advise on balance sheet repositioning resulting from bank M&A activity, and as depository clients adjust to the changing rate environment. We remain actively engaged with clients on regular-way sales and trading, and continue to execute on balance sheet restructurings.

Our municipal financing activity was broad-based in the third quarter of 2025 with strong performance from both our governmental and specialty sector businesses as market conditions remained favorable. With record levels of issuance in the first nine months of the year, we experienced some pull forward of activity. Our pipeline remains strong, particularly in our specialty sector business, and we expect municipal financing revenues for the fourth quarter of 2025 to be similar to the third quarter of 2025.