PIPER SANDLER COMPANIES

Our provision for income taxes was $26.5 million and our effective tax rate was 39.7 percent for the three months ended September 30, 2026. Our adjusted provision for income taxes was $28.6 million and our adjusted effective tax rate was 31.7 percent for the three months ended September 30, 2026. The effective tax rate on a U.S. GAAP basis was negatively impacted by losses on our investments, including amounts attributable to noncontrolling interests in the alternative asset management funds we manage. The effective tax rate on both a U.S. GAAP and adjusted basis was impacted by non-deductible employee compensation expense, including limitations on the deduction of employee compensation expense enacted with the American Rescue Plan Act of 2021.

Our provision for income taxes was $24.9 million and our effective tax rate was 23.2 percent for the three months ended September 30, 2025. Our adjusted provision for income taxes was $27.8 million and our adjusted effective tax rate was 28.8 percent for the three months ended September 30, 2025. The effective tax rate on a U.S. GAAP basis was positively impacted by gains on our investments, including amounts attributable to noncontrolling interests in the alternative asset management funds we manage. The effective tax rate on both a U.S. GAAP and adjusted basis was impacted by non-deductible employee compensation expense, including limitations on the deduction of employee compensation expense enacted with the American Rescue Plan Act of 2021.