PIPER SANDLER COMPANIES

Non-interest expenses on a U.S. GAAP basis were $1.05 billion for the nine months ended September 30, 2025, compared to $905.5 million in the corresponding period of 2024. For the nine months ended September 30, 2025, adjusted non-interest expenses were $1.01 billion, compared with $860.1 million for the nine months ended September 30, 2024. The variance explanations for non-interest expenses and adjusted non-interest expenses 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.

Outside Services

For the nine months ended September 30, 2025, outside services expenses increased 13.1 percent to $45.1 million, compared with $39.9 million in the corresponding period of 2024, primarily due to increased professional fees associated with technology consulting services and higher legal fees.

Communications

For the nine months ended September 30, 2025, communication expenses increased 3.1 percent to $42.8 million, compared with $41.5 million in the corresponding period of 2024, primarily due to higher market data services expenses.

Marketing and Business Development

For the nine months ended September 30, 2025, marketing and business development expenses increased 8.9 percent to $35.4 million, compared with $32.5 million in the corresponding period of 2024, primarily due to higher travel expenses associated with increased business activity.

Restructuring and Integration Costs

For the nine months ended September 30, 2025, we incurred restructuring and integration costs of $6.0 million. The expenses principally consisted of $2.8 million of severance benefits related to headcount reductions, $1.8 million for vacated leased office space associated with our acquisition of Aviditi Advisors, as well as $1.4 million of integration costs related to our acquisition of G Squared.

For the nine months ended September 30, 2024, we incurred restructuring and integration costs of $1.8 million, primarily consisting of integration costs related to our acquisition of Aviditi Advisors.

Other Operating Expenses

For the nine months ended September 30, 2025, other operating expenses were $16.3 million, compared with $12.2 million in the corresponding period of 2024. Other operating expenses for the nine months ended September 30, 2024 included a $4.0 million reduction in the accrual for civil penalties related to our regulatory settlements regarding recordkeeping requirements for business-related communications.