Oppenheimer Holdings Reports 14.7% Revenue Growth to $1.43 Billion for Fiscal Year 2024

Oppenheimer Holdings Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $1.43 billion, a 14.7% increase from $1.25 billion in 2023. The company's net income also saw a substantial rise, climbing to $71.6 million, up 137.1% from $30.2 million in the previous year. This growth was primarily driven by increased client activity, particularly in commission and advisory fees, which rose by 17.3% and 16.3%, respectively. Investment banking revenue surged by 50% to $176.4 million, reflecting higher transaction volumes and new issuances.

In comparison to the previous fiscal year, Oppenheimer's expenses increased by 10.4% to $1.33 billion, largely due to a 19.7% rise in compensation and related expenses, which totaled $936.8 million. This increase was attributed to higher salaries, production-related expenses, and elevated costs associated with stock appreciation rights, which were impacted by the significant rise in the company's stock price. The effective income tax rate decreased to 32.6% from 35.3% in 2023, primarily due to the absence of a non-deductible regulatory settlement recorded in the prior year.

Strategically, Oppenheimer has focused on expanding its wealth management business and enhancing its capital markets operations. The company employed 3,018 individuals as of December 31, 2024, including 931 financial advisors, and operated from 88 offices across 25 states, as well as international locations in Puerto Rico, Israel, Hong Kong, the UK, Jersey, and Switzerland. The firm reported record assets under management (AUM) of $49.4 billion, contributing to a robust increase in asset-based advisory fees.

Oppenheimer's share repurchase program remains active, with the Board of Directors approving the buyback of up to 518,000 shares of Class A stock in March 2024. During 2024, the company repurchased and canceled 243,806 shares for $9.6 million, leaving 497,893 shares available for future purchases. The firm has indicated that share repurchases will continue based on market conditions and other factors, although no shares were bought back in the fourth quarter of 2024.

Looking ahead, Oppenheimer is optimistic about its growth trajectory, particularly in wealth management and capital markets. The company plans to continue investing in technology and expanding its service offerings to attract institutional clients. Additionally, Oppenheimer aims to pursue strategic acquisitions to enhance its capabilities and market presence, while managing expenses and ensuring compliance with regulatory requirements. The firm remains vigilant regarding potential economic challenges, including interest rate fluctuations and geopolitical tensions, which could impact its operations and financial performance.