Operating margins expanded to 28.5% in 2025Q4 as the firm successfully scaled profitability during a period of peak revenue generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Sales/Revenue | 2B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 1.95B | 1.78B | 1.48B | 1.3B | 1.37B | 1.97B | 1.18B | 798.56M | 707.82M | 815.46M | 739.7M | 665.12M | 640.52M | 516.92M | 480.9M | 423.16M | 468.59M | 468.79M | 294.87M | 504.38M | 505.05M | 421.31M | 434.21M | 786.73M | 729.05M | 16.22M | 16.13M |
| Gross Margin % | 97.34% | 93.61% | 99.62% | 99.23% | 99.31% | 99.46% | 98.79% | 98.55% | 97.72% | 97.57% | 97.04% | 96.6% | 96.23% | 95.38% | 96.18% | 95.33% | 93.09% | 96.28% | 94.05% | 95.51% | 93.99% | 92.84% | 95.09% | 97.58% | 95.5% | 17% | 11.18% |
| Gross Profit Growth % | - | 20.8% | 13.52% | -5.37% | -30.33% | 66.91% | 47.92% | 12.82% | -13.2% | 10.24% | 11.21% | 3.84% | 23.91% | 7.49% | 13.64% | -9.69% | -0.04% | 58.98% | -41.54% | -0.13% | 19.88% | -2.97% | -44.81% | 7.91% | 4394.77% | 0.55% | - |
| Operating Expenses | 1.51B | 1.4B | 1.26B | 1.18B | 1.24B | 1.53B | 1.11B | 679.58M | 635.33M | 736.14M | 770.57M | 578.7M | 530.21M | 441.31M | 411.89M | 503.35M | 414.77M | 412.24M | 518.48M | 473.95M | 471.7M | 385.28M | 385.17M | 744.9M | 723.09M | 90.1M | -23.06M |
| OpEx % of Revenue | - | 73.36% | 84.87% | 89.87% | 89.6% | 77.19% | 93.06% | 83.87% | 87.71% | 88.08% | 101.1% | 84.05% | 79.66% | 81.43% | 82.38% | 113.4% | 82.4% | 84.67% | 165.37% | 89.75% | 87.78% | 84.9% | 84.35% | 92.39% | 94.72% | 94.41% | -15.98% |
| Selling, General & Admin | 569.08M | 1.27B | 1.05B | 934.77M | 1.03B | 1.33B | 890.93M | 544.87M | 515.42M | 618.31M | 541.02M | 451.72M | 421.77M | 344.07M | 316.79M | 287.65M | 301.69M | 334.88M | 353.78M | 356.43M | 382.63M | 265.37M | 275.85M | 521.43M | 493.44M | 513.62M | 662.59M |
| SG&A % of Revenue | - | 66.92% | 70.64% | 71.36% | 74.21% | 66.89% | 74.51% | 67.24% | 71.15% | 73.98% | 70.98% | 65.61% | 63.37% | 63.49% | 63.36% | 64.81% | 59.93% | 68.78% | 112.84% | 67.5% | 71.21% | 58.48% | 60.41% | 64.67% | 64.64% | 538.19% | 459.15% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 434.82M | 385.53M | 218.41M | 122.59M | 134.37M | 441.51M | 68.55M | 118.98M | 72.49M | 79.32M | -30.87M | 86.42M | 110.31M | 75.61M | 69.01M | -80.19M | 53.82M | 56.55M | -223.61M | 30.43M | 33.35M | 36.03M | 49.04M | 41.83M | 5.96M | -73.88M | 39.19M |
| Operating Margin % | 21.76% | 20.25% | 14.74% | 9.36% | 9.72% | 22.27% | 5.73% | 14.68% | 10.01% | 9.49% | -4.05% | 12.55% | 16.57% | 13.95% | 13.8% | -18.07% | 10.69% | 11.62% | -71.32% | 5.76% | 6.21% | 7.94% | 10.74% | 5.19% | 0.78% | -77.42% | 27.16% |
| Operating Income Growth % | - | 76.52% | 78.17% | -8.77% | -69.57% | 544.09% | -42.39% | 64.13% | -8.61% | 356.9% | -135.72% | -21.66% | 45.89% | 9.57% | 186.06% | -249% | -4.84% | 125.29% | -834.85% | -8.75% | -7.45% | -26.52% | 17.22% | 601.79% | 108.07% | -288.53% | - |
| EBITDA | 462.71M | 412.92M | 245.48M | 159.96M | 165.38M | 484.22M | 123.97M | 138.1M | 91.31M | 101.97M | -3.25M | 99.14M | 124.85M | 89.32M | 83.69M | -64.58M | 68.57M | 66.22M | -212.03M | 41.79M | 47.59M | 55.77M | 70.56M | 64.72M | 30.61M | -53.48M | 59.29M |
| EBITDA Margin % | 23.15% | 21.68% | 16.57% | 12.21% | 11.96% | 24.43% | 10.37% | 17.04% | 12.61% | 12.2% | -0.43% | 14.4% | 18.76% | 16.48% | 16.74% | -14.55% | 13.62% | 13.6% | -67.63% | 7.91% | 8.86% | 12.29% | 15.45% | 8.03% | 4.01% | -56.04% | 41.09% |
| EBITDA Growth % | 108.28% | 68.21% | 53.47% | -3.28% | -65.85% | 290.58% | -10.23% | 51.25% | -10.46% | 3237.48% | -103.28% | -20.59% | 39.78% | 6.73% | 229.59% | -194.18% | 3.54% | 131.23% | -607.38% | -12.19% | -14.66% | -20.97% | 9.02% | 111.45% | 157.23% | -190.21% | - |
| D&A (Non-Cash Add-back) | 27.89M | 27.39M | 27.07M | 37.37M | 31.01M | 42.71M | 55.43M | 19.12M | 18.82M | 22.65M | 27.62M | 12.72M | 14.54M | 13.71M | 14.67M | 15.61M | 14.75M | 9.67M | 11.57M | 11.36M | 14.24M | 19.73M | 21.52M | 22.89M | 24.65M | 20.4M | 20.1M |
| EBIT | 434.72M | 385.53M | 218.41M | 122.59M | 134.37M | 441.51M | 68.55M | 118.98M | 72.49M | 79.32M | -30.87M | 86.42M | 110.31M | 75.61M | 69.01M | -80.19M | 53.82M | 56.55M | -223.61M | 30.43M | 33.35M | 36.03M | 49.04M | 41.83M | 5.96M | -73.88M | 39.19M |
| Net Interest Income | 72M | 65.31M | 27.23M | 16.58M | 10.88M | -3.77M | -1.28M | 15.01M | 16.2M | 11.69M | 10.55M | 18.16M | 23.64M | 25.37M | 18.75M | 22.73M | 16.91M | 22.56M | -1.69M | 37.18M | 31.81M | 12.36M | 13.3M | 25.77M | 25.37M | 16.22M | 16.13M |
| Interest Income | 76.3M | 70.15M | 32.91M | 26.72M | 20.36M | 6.97M | 13.16M | 26.74M | 32.75M | 31.95M | 33.07M | 41.56M | 48.72M | 50.41M | 37.84M | 43.45M | 51.7M | 40.65M | 16.97M | 60.87M | 64.11M | 44.86M | 35.72M | 45.28M | 59.69M | 95.44M | 144.31M |
| Interest Expense | 4.29M | 4.84M | 5.68M | 10.15M | 9.48M | 10.73M | 14.45M | 11.73M | 16.55M | 20.27M | 22.52M | 23.4M | 25.07M | 25.04M | 19.09M | 20.72M | 34.79M | 18.09M | 18.66M | 23.69M | 32.3M | 32.49M | 22.42M | 19.51M | 34.31M | 79.22M | 128.18M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 433.05M | 374.55M | 218.41M | 122.59M | 134.37M | 441.51M | 68.55M | 118.98M | 72.49M | 79.32M | -30.87M | 86.42M | 110.31M | 75.61M | 69.01M | -80.19M | 53.82M | 56.55M | -223.61M | 30.43M | 33.35M | 36.03M | 49.04M | 41.83M | 5.96M | -73.88M | 39.19M |
| Pretax Margin % | 21.67% | 19.67% | 14.74% | 9.36% | 9.72% | 22.27% | 5.73% | 14.68% | 10.01% | 9.49% | -4.05% | 12.55% | 16.57% | 13.95% | 13.8% | -18.07% | 10.69% | 11.62% | -71.32% | 5.76% | 6.21% | 7.94% | 10.74% | 5.19% | 0.78% | -77.42% | 27.16% |
| Income Tax | 107.54M | 80.58M | 60.97M | 23.61M | 33.19M | 111.14M | 19.19M | 24.58M | 18.05M | 53.81M | -17.13M | 27.94M | 35.99M | 20.39M | 19.47M | 9.12M | 32.16M | 26.18M | -40.13M | 5.79M | 10.21M | 10.86M | 16.73M | 15.84M | 5.86M | -23.83M | 18.48M |
| Effective Tax Rate % | 24.83% | 21.51% | 27.92% | 19.26% | 24.7% | 25.17% | 28% | 20.66% | 24.89% | 67.84% | 55.48% | 32.33% | 32.62% | 26.97% | 28.21% | -11.37% | 59.76% | 46.3% | 17.95% | 19.03% | 30.62% | 30.15% | 34.11% | 37.85% | 98.22% | 32.26% | 47.16% |
| Net Income | 281.66M | 281.33M | 181.11M | 85.49M | 110.67M | 278.51M | 40.5M | 111.71M | 57.04M | -61.94M | -21.95M | 52.08M | 63.17M | 45.09M | 41.27M | -102.02M | 24.36M | 30.37M | -182.97M | 21.94M | 195.43M | 40.08M | 50.35M | 26M | 106K | -50.05M | 20.71M |
| Net Margin % | 14.09% | 14.77% | 12.23% | 6.53% | 8% | 14.05% | 3.39% | 13.79% | 7.87% | -7.41% | -2.88% | 7.56% | 9.49% | 8.32% | 8.25% | -22.98% | 4.84% | 6.24% | -58.36% | 4.16% | 36.37% | 8.83% | 11.03% | 3.22% | 0.01% | -52.44% | 14.35% |
| Net Income Growth % | 38.38% | 55.33% | 111.85% | -22.75% | -60.26% | 587.62% | -63.74% | 95.86% | 192.08% | -182.16% | -142.15% | -17.57% | 40.1% | 9.26% | 140.45% | -518.77% | -19.78% | 116.6% | -933.86% | -88.77% | 387.55% | -20.39% | 93.65% | 24427.36% | 100.21% | -341.7% | - |
| Net Income (Continuing) | 325.51M | 293.96M | 157.44M | 98.97M | 101.18M | 330.37M | 49.36M | 94.4M | 54.44M | 25.51M | -13.75M | 58.48M | 74.33M | 55.22M | 49.54M | -89.31M | 21.65M | 30.37M | -183.47M | 24.64M | 23.14M | 25.17M | 32.31M | 26M | 106K | -50.05M | 20.71M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23.77M | 1.39M | -85.06M | 0 | 0 | 0 | -4.74M | -5.81M | -11.25M | 2.28M | 0 | 499K | -2.7M | 172.29M | 14.91M | 18.04M | 0 | 0 | 0 | 0 |
| Minority Interest | 216.02M | 211.79M | 187.94M | 213.97M | 199.96M | 164.65M | 96.66M | 75.25M | 52.97M | 47.9M | 57.02M | 49.16M | 149.55M | 147.4M | 56.88M | 32.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.95 | 3.96 | 2.56 | 1.24 | 1.63 | 4.11 | 0.68 | 1.93 | 0.93 | -1.27 | -0.43 | 0.84 | 0.97 | 0.68 | 0.57 | -1.63 | 0.31 | 0.39 | -2.89 | 0.30 | 2.52 | 0.53 | 0.65 | 0.34 | 0.00 | -0.65 | 0.27 |
| EPS Growth % | 38.46% | 54.69% | 106.45% | -23.93% | -60.32% | 504.04% | -64.68% | 106.99% | 173.37% | -193.06% | -151.8% | -13.7% | 43.33% | 19.47% | 134.72% | -629.27% | -20.65% | 113.42% | -1054.55% | -87.98% | 379.52% | -19.23% | 92.59% | - | 100.38% | -338.53% | - |
| EPS (Basic) | - | 4.22 | 2.86 | 1.43 | 1.98 | 4.88 | 0.74 | 1.37 | 0.95 | -1.27 | -0.43 | 0.84 | 0.97 | 0.68 | 0.57 | -1.63 | 0.31 | 0.39 | -2.89 | 0.33 | 2.72 | 0.53 | 0.65 | 0.34 | 0.00 | -0.65 | 0.27 |
| Diluted Shares Outstanding | 71.23M | 71.14M | 70.78M | 68.9M | 67.86M | 67.82M | 59.6M | 55.75M | 53.7M | 51.23M | 51.12M | 57.56M | 60.1M | 60.24M | 62.46M | 62.69M | 61.51M | 64.03M | 63.35M | 72.47M | 75.87M | 76.32M | 77.6M | 76.95M | 76.64M | 77.12M | 76.24M |
| Basic Shares Outstanding | 67.84M | 66.63M | 63.35M | 59.83M | 55.93M | 57.06M | 55.12M | 54.22M | 52.94M | 51.23M | 50.7M | 57.47M | 59.88M | 60.18M | 62.46M | 62.69M | 61.39M | 63.81M | 63.35M | 65.9M | 72.01M | 75.25M | 77.33M | 76.95M | 76.64M | 77.12M | 76.24M |
| Dividend Payout Ratio | - | 40.57% | 40.71% | 98.78% | 97.16% | 35.67% | 69.55% | 31.86% | 82.68% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical M&A deal flow
As reported in recent financial statements, Piper Sandler achieved a significant revenue peak of $667.0M in 2025Q4, reflecting a robust recovery in transaction-based advisory activity that suggests the firm is successfully capitalizing on a more favorable mid-market M&A environment compared to the previous year's lower baseline.
The revenue trajectory appears highly sensitive to the cadence of mid-market deal closures, which creates inherent lumpiness in quarterly performance. Investors should monitor whether the recent growth surge represents a sustainable shift in market share or merely a temporary release of pent-up demand within the FIG and healthcare verticals.
Based on the provided income statement data, Piper Sandler's operating margin expanded to 28.5% in 2025Q4, demonstrating that the firm can effectively scale its profitability when revenue growth outpaces the variable compensation costs that typically dominate its operating expense structure during periods of high deal volume.
The firm's ability to maintain operating leverage is contingent upon its management of discretionary bonus pools, which act as a shock absorber during market downturns. This suggests that while the firm is operationally efficient, its bottom-line stability remains tethered to the firm's willingness to adjust compensation in response to revenue volatility.
According to quarterly filings, Piper Sandler consistently records significant stock-based compensation expenses, such as the $32.3M reported in 2024Q4, which warrants careful adjustment when evaluating the firm's underlying cash-generating capacity and the true economic cost of talent retention within its highly competitive advisory business model.
These non-cash charges frequently create a wedge between reported net income and the actual cash flow available to shareholders. Analysts should treat these figures as a recurring operational cost rather than an anomaly, as they represent a structural necessity for retaining the rainmakers who drive the firm's advisory pipeline.
While the firm's 2025Q4 performance appears strong, the reliance on the FIG sector for advisory revenue, as noted in historical context, leaves the firm vulnerable to potential regulatory shifts that could dampen the pace of community bank consolidation and compress the firm's most lucrative fee-generating segment.
Short-term revenue spikes may mask the long-term risk posed by increased DOJ and FDIC scrutiny of bank mergers. If the regulatory environment tightens, the firm may struggle to maintain its current growth trajectory, potentially leading to a contraction in margins as fixed costs remain while deal flow slows.
Quick answers to the most common questions about buying PIPR stock.
Piper Sandler Companies (PIPR) is profitable, generating $281.3M in net income for the fiscal year ending 2025 with a net profit margin of 14.8%.
Piper Sandler Companies (PIPR) reported an operating income of $385.5M, resulting in an operating profit margin of 20.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Piper Sandler Companies (PIPR) generated $1.78B in gross profit for the year, representing a gross profit margin of 93.6%. This demonstrates the company's core pricing power and production efficiency.