Piper Sandler(PIPR) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenues for Q1 2025 were $357 million, a decrease of 26$65 million, a decrease of 6% from Q4 2024 but an increase of 53% compared to Q1 2024[17]. - Earnings per diluted common share for Q1 2025 were $3.65, down 5$358.554 million, a decrease of 26.1% from $485.384 million in Q4 2024[40]. - Net income attributable to Piper Sandler Companies for Q1 2025 was$64,915,000, a decrease of 6.6% from $69,059,000 in Q4 2024 and an increase of 52.8$42,493,000 in Q1 2024[43]. - Adjusted net income for Q1 2025 was $73.495 million, a decrease of 15.2$86.756 million in Q4 2024[41]. - Adjusted earnings per diluted common share for Q1 2025 was $4.09, down 14.8$4.80 in Q4 2024 but up 46.5% from $2.79 in Q1 2024[43]. Revenue Breakdown - Advisory services revenues reached$217 million, accounting for approximately 60% of net revenues, and grew 38% year-over-year[5]. - Investment banking revenues totaled $278.9 million, a decrease of 25$99 million, down 15% from Q4 2024 but up 9% compared to Q1 2024[11]. - Adjusted total revenues for Q1 2025 were $384.592 million, down 23.1$499.860 million in Q4 2024[41]. Operating Metrics - The pre-tax margin for Q1 2025 was 8.2%, down from 17.0% in Q4 2024 and 15.3% in Q1 2024[15]. - Adjusted operating income for Q1 2025 was $68.5 million, down 44$314.8 million, a decrease of 17% from Q4 2024 and an increase of 13% from Q1 2024[24]. Shareholder Returns - The company returned an aggregate of $151 million to shareholders in Q1 2025, including$81 million in share repurchases and $70 million in dividends[5]. - The company declared a quarterly cash dividend of$0.65 per share, to be paid on June 13, 2025, and paid a special cash dividend of $3.00 per share during Q1 2025, totaling$70.3 million[30]. - Approximately 266,000 shares were repurchased during Q1 2025 for $80.6 million at an average price of$303.05 per share[31]. Tax and Compensation - The effective tax rate for Q1 2025 was negative 24.9%, influenced by $25.4 million in tax benefits related to restricted stock awards[16]. - The adjusted effective tax rate for Q1 2025 was negative 7.2$248.457 million, down 21.4% from $316.004 million in Q4 2024[40]. Employee Metrics - Full-time employees as of March 31, 2025, were 1,801, a slight decrease from 1,805 in Q4 2024[32]. - The company hired several managing directors to expand its investment banking capabilities in energy, healthcare, and fixed income sectors[5]. Non-GAAP Measures - The company emphasizes that non-GAAP measures are presented to provide a meaningful basis for comparison of operating results across periods[46].