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 internationally. We operate through one reportable 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, 2025 for a full description of our business, including our business strategy and strategic activities.

Financial Highlights

(1)Earnings per diluted common share has been adjusted to reflect the four-for-one forward split of common stock. See Note 1 to our unaudited consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

(2)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

While the macroeconomic environment remains uncertain, the overall market backdrop reflects a constructive underlying trend evidenced by economic activity expansion and a stable labor market. Market conditions were increasingly selective during the third quarter of 2026, resulting in a decline in overall mergers and acquisitions ("M&A") activity. Monetary policy in the U.S. remains a prevalent factor impacting the economy and financial markets. The U.S. Federal Reserve raised its short-term benchmark interest rate in the third quarter as inflation continued to remain elevated and additional rate hikes are expected. The sharp rise in yields created a challenging execution environment in public financing, but led to increased trading activity in fixed income. Heightened concerns over geopolitical conflicts, including in the Middle East, Eastern Europe and Taiwan, could negatively impact financial market activity. In addition, higher U.S. tariffs and shifts in trade policy, along with retaliatory actions by global trading partners, including Canada, the European Union and China, continue to contribute to elevated financial market uncertainty and upward pressure on inflation, energy prices and supply chain costs. A significant decrease in uncertainty, or resolutions to geopolitical concerns and trade disputes, would likely be constructive for overall economic conditions, and consequently, our client and business activity.

Our advisory services results continued to benefit from our broad industry coverage and comprehensive product capabilities. Our advisory services pipeline is healthy and we expect advisory services revenues for the fourth quarter of 2026 to be our strongest quarter of the year, although below the fourth quarter of 2025.

Despite a decline in completed financings, our corporate financing revenues increased in the third quarter of 2026 compared to the second quarter of 2026, driven by higher average revenue per deal. Client engagement remains active; however, we expect corporate financing activity to slow in the fourth quarter of 2026 as investors become increasingly selective.

Our equity brokerage performance decreased in the third quarter of 2026 as market volatility and trading volumes declined from the strong second quarter of 2026. Our equity brokerage business continues to benefit from our high-quality trade execution and research product. We expect that fourth quarter equity brokerage revenues will improve compared to the third quarter of 2026.

Client activity for fixed income services strengthened in the third quarter of 2026 as rising interest rates prompted investors to adjust their holdings. We expect fourth quarter of 2026 fixed income services revenues to be consistent with the third quarter of 2026.

Our municipal financing results declined in the current quarter from a strong second quarter of 2026. Market conditions were challenging as a rapid rise in interest rates resulted in deals being delayed or downsized. We expect fourth quarter of 2026 municipal financing revenues to improve modestly from the third quarter of 2026. Municipal issuers are adjusting to higher rates while their funding needs persist, but it will take time for market participants to adapt to the new rate environment.