PIPER SANDLER COMPANIES

Net revenues on a U.S. GAAP basis were $479.3 million for the three months ended September 30, 2025, compared with $359.6 million in the prior-year period. For the three months ended September 30, 2025, adjusted net revenues were $455.3 million, compared with $351.8 million in the third quarter of 2024. The variance explanations for net revenues and adjusted net revenues are consistent on both a U.S. GAAP and non-GAAP basis unless stated otherwise. 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.

The following table provides supplemental business information:

Investment Banking Revenues

Investment banking revenues comprise all of the revenues generated through advisory services activities, which include M&A, equity and debt private placements, debt capital markets advisory, restructuring and private capital advisory, and municipal financial advisory transactions. Collectively, debt capital markets advisory transactions and equity and debt private placements are referred to as capital advisory transactions. Investment banking revenues also include equity and debt corporate financing activities and municipal financings.

In the third quarter of 2025, investment banking revenues increased 36.9 percent to $330.6 million, compared with $241.5 million in the prior-year period. For the three months ended September 30, 2025, advisory services revenues were $212.4 million, up 12.9 percent compared to $188.0 million in the third quarter of 2024, driven by more completed transactions. Our advisory services performance during the quarter was led by our financial services group with solid contributions from our healthcare, consumer and energy, power & infrastructure teams. For the three months ended September 30, 2025, corporate financing revenues were $79.7 million, up 345.3 percent compared with $17.9 million for the three months ended September 30, 2024, due to a higher average fee and more completed corporate financings. Consistent with the overall market, our equity financing activity increased during the quarter as the environment became more conducive resulting from reduced volatility and strong valuations. Performance during the third quarter of 2025 was led by the healthcare sector, and we served as book runner on all 13 completed healthcare equity deals. Our results also included a strong contribution from our financial services group. Municipal financing revenues for the three months ended September 30, 2025 were $38.5 million, up 8.4 percent compared to $35.5 million in the prior-year period, driven by increased municipal negotiated issuance activity across our governmental business resulting from more accommodative market conditions.

Institutional Brokerage Revenues

Institutional brokerage revenues comprise all of the revenues generated through trading activities, which principally consist of facilitating customer trades, as well as fees received for our research services and corporate access offerings. Our results may vary from quarter to quarter as a result of changes in trading margins, trading gains and losses, net interest spreads, trading volumes and the amount of fees received for research services.

For the three months ended September 30, 2025, institutional brokerage revenues were $109.5 million, up 8.5 percent compared with $100.9 million in the prior-year period. Equity brokerage revenues were $53.8 million in the third quarter of 2025, up slightly compared with $52.5 million in the corresponding period of 2024. For the three months ended September 30, 2025, fixed income services revenues were $55.7 million, up 15.0 percent compared to $48.5 million in the prior-year period, driven by increased client activity resulting from an improved interest rate outlook.

Interest Income

Interest income represents amounts earned from holding long inventory positions and cash balances, as well as interest earned on installment fee receivables. For the three months ended September 30, 2025, interest income increased to $9.4 million, compared with $7.8 million for the three months ended September 30, 2024, primarily due to interest earned on installment fee receivables.

Investment Income/(Loss)

Investment income/(loss) includes realized and unrealized gains and losses on investments, including amounts attributable to noncontrolling interests, in our alternative asset management funds, as well as management and performance fees generated from those funds. For the three months ended September 30, 2025, we recorded investment income of $30.6 million, compared to $10.7 million in the corresponding period of 2024. In the third quarter of 2025, we recorded higher gains on our investments and the noncontrolling interests in the alternative asset funds that we manage primarily due to higher public company equity valuations. Excluding the impact of noncontrolling interests, adjusted investment income was $6.7 million for the three months ended September 30, 2025, compared with $3.0 million for the three months ended September 30, 2024.

Interest Expense

Interest expense represents amounts associated with financing, economically hedging and holding short inventory positions, including interest paid on our short-term financing arrangements, as well as commitment fees on certain short-term financing arrangements. For the three months ended September 30, 2025, interest expense decreased to $0.8 million, compared with $1.4 million in the prior-year period.