PIPER SANDLER COMPANIES

Net revenues on a U.S. GAAP basis were $474.4 million for the three months ended March 31, 2026, compared with $357.3 million in the prior-year period. For the three months ended March 31, 2026, adjusted net revenues were $469.5 million, compared with $383.3 million in the first quarter of 2025. 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:

(1)Includes debt capital markets advisory transactions and equity and debt private placements.

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. Investment banking revenues also include equity and debt corporate financing activities and municipal financings.

In the first quarter of 2026, investment banking revenues increased 26.0 percent to $348.2 million, compared with $276.3 million in the prior-year period. For the three months ended March 31, 2026, advisory services revenues were $251.0 million, up 15.8 percent compared to $216.8 million in the first quarter of 2025, driven primarily by more completed transactions. Our advisory services performance during the quarter was led by our healthcare and financial services groups with solid contributions from our services & industrials and energy, power & infrastructure teams. For the three months ended March 31, 2026, corporate financing revenues were $73.3 million, up 121.8 percent compared with $33.1 million for the three months ended March 31, 2025, resulting from more completed equity financings and a higher average fee. Performance during the first quarter of 2026 was led by the healthcare sector, and we served as book runner on all 23 completed healthcare equity deals. Municipal financing revenues for the three months ended March 31, 2026 were $23.9 million, down 9.4 percent compared to $26.4 million in the prior-year period, driven by reduced municipal negotiated issuance activity in our specialty sector business.

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 March 31, 2026, institutional brokerage revenues were $110.8 million, up 8.8 percent compared with $101.9 million in the prior-year period. Equity brokerage revenues were $60.5 million in the first quarter of 2026, up 11.5 percent compared with $54.3 million in the corresponding period of 2025, driven by increased client activity resulting from higher market volatility. For the three months ended March 31, 2026, fixed income services revenues were $50.4 million, up 5.7 percent compared to $47.7 million in the prior-year period. Revenues for the current quarter benefited from several balance sheet restructuring trades, which offset a decline in client activity resulting from interest rate volatility.

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 March 31, 2026, interest income increased to $11.6 million, compared with $10.0 million for the three months ended March 31, 2025, reflecting higher interest income on our cash balances.

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 March 31, 2026, we recorded investment income of $4.5 million, compared to an investment loss of $29.6 million in the corresponding period of 2025. In the first quarter of 2026, we recorded 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 loss was $0.4 million for the three months ended March 31, 2026, compared with $3.6 million for the three months ended March 31, 2025.

Interest Expense

Interest expense represents amounts associated with financing, economically hedging and holding short inventory positions, including interest paid on our financing arrangements, as well as commitment fees on certain short-term financing arrangements. For the three months ended March 31, 2026, interest expense decreased to $0.7 million, compared with $1.3 million in the prior-year period.