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Income taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
Income tax expenses shown in the consolidated income statements are reconciled to amounts of tax that would have been payable from the application of the federal tax rate to pre-tax profit, as follows:
(Expressed in thousands)      
 For the Years Ended December 31,
 202520242023
 AmountPercentageAmountPercentageAmountPercentage
U.S. federal statutory income tax$44,344 21.0 %$22,194 21.0 %$9,806 21.0 %
U.S. state and local income taxes, net of U.S. federal income tax benefits (1)
12,351 5.8 %7,062 6.6 %1,805 3.9 %
Foreign tax effects
United Kingdom
Changes in valuation allowances 2,638 1.2 %1,869 1.8 %1,945 4.2 %
Statutory tax rate difference between United Kingdom and U.S.(500)(0.2)%(370)(0.3)%(203)(0.4)%
Other102 0.0 %592 0.5 %(358)(0.8)%
Other foreign jurisdictions 295 0.1 %257 0.2 %(159)(0.3)%
Non-taxable or non-deductible items
Executive compensation 4,910 2.4 %2,747 2.6 %1,514 3.2 %
Meals and entertainment expenses 974 0.5 %853 0.8 %726 1.6 %
Fine and penalties — — %364 0.3 %2,859 6.1 %
Transit and parking expenses505 0.2 %492 0.5 %501 1.1 %
Insurance proceeds (664)(0.3)%(885)(0.8)%(511)(1.1)%
Interest income (222)(0.1)%(209)(0.2)%(453)(1.0)%
Other 74 0.0 %68 0.1 %28 (0.1)%
Excess tax benefits from share-based awards(1,547)(0.7)%(671)(0.6)%(1,317)(2.8)%
Other adjustments (28)0.0 %147 0.1 %315 0.7 %
Total income taxes$63,232 29.9 %$34,510 32.6 %$16,498 35.3 %

(1)State and local taxes in New York, California, Florida, Pennsylvania and New Jersey comprised the majority (greater than 50 percent) of the tax effect in this category
The effective income tax rate for the year ended December 31, 2025 was 29.9% compared with 32.6% for the year ended December 31, 2024. The tax rate in the 2025 year improved as the impact of certain unfavorable permanent items and nondeductible foreign losses was reduced due to higher income levels in the current period.
Pre-tax income from continuing operations included in the consolidated income statements represent the following:
(Expressed in thousands)   
 For the Years Ended December 31,
 202520242023
Pre-tax income from continuing operations
U.S.$214,443 $106,969 $41,926 
Foreign(3,251)(1,212)4,844 
Total pre-tax income from continuing operations$211,192 $105,757 $46,770 
Income tax expenses included in the consolidated income statements represent the following:
(Expressed in thousands)   
 For the Years Ended December 31,
 202520242023
Current tax expense
U.S. federal tax$42,943 $22,249 $6,967 
State and local tax14,330 7,459 2,137 
Foreign 1,127 1,250 937 
Total current tax expense 58,400 30,958 10,041 
Deferred tax expenses (benefit)
U.S. federal tax3,524 2,323 5,207 
State and local tax1,676 1,262 919 
Foreign (368)(33)331 
Total deferred tax expense (benefit)4,832 3,552 6,457 
Total income tax expense (benefit)$63,232 $34,510 $16,498 
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Company's deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows:
(Expressed in thousands)  
 As of December 31,
 20252024
Deferred tax assets:
Deferred compensation$37,320 $35,846 
Deferred rent and lease incentives8,805 7,504 
Net operating losses and credits17,130 13,822 
Receivables reserves679 925 
Accrued expenses297 1,284 
Involuntary conversion1,693 1,696 
Other980 1,028 
Total deferred tax assets66,904 62,105 
Valuation allowance(14,335)(11,516)
Deferred tax assets after valuation allowance52,569 50,589 
Deferred tax liabilities:
Goodwill41,569 41,560 
Partnership investments31,390 28,967 
Company-owned life insurance19,450 16,619 
Depreciation4,238 3,151 
Other342 198 
Total deferred tax liabilities96,989 90,495 
Deferred tax liabilities, net$(44,420)$(39,906)
The Company recognized deferred tax assets of $2.7 million at December 31, 2025 within other assets arising from net operating losses incurred by Oppenheimer Israel (OPCO) Ltd. The Company believes that realization of the deferred tax assets is more likely than not based on expectations of future taxable income in Israel. These net operating losses carry forward indefinitely and are not subject to expiration, provided that these subsidiaries and their underlying businesses continue operating normally (as is anticipated).
As of December 31, 2025, the Company had deferred tax assets of $13.1 million arising from net operating losses incurred by Oppenheimer Europe Ltd. and had recorded full valuation allowances. Although the net operating losses carry forward indefinitely, the Company believes it is more likely than not that the Company will not be able to realize its deferred tax assets in the future. The net change during the year in the total valuation allowance is $2.5 million.
The Company and one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and in various states and foreign jurisdictions. The Company has closed tax years through 2019 in the U.S. federal jurisdiction.
The Company has unrecognized tax benefits of $1.5 million, $1.3 million and $1.2 million as of December 31, 2025, 2024 and 2023, respectively (as shown on the table below). Included in the balance of unrecognized tax benefits as of December 31, 2025 and 2024 were $1.2 million and $994,000, respectively, of tax benefits for either year that, if recognized, would affect the effective tax rate.
During the year ended December 31, 2025, the Company added $0.8 million and released $0.6 million related to state and local tax matters. A reconciliation of the beginning and ending amount of unrecognized tax benefit follows:
(Expressed in thousands)   
 202520242023
Balance at beginning of year$1,258 $1,236 $1,072 
Additions for tax positions of prior years823 217 224 
Lapse in statute of limitations(411)(136)— 
Settlements with taxing authorities(140)(59)(60)
Balance at end of year$1,530 $1,258 $1,236 
In its consolidated income statements, the Company records interest and penalties accruing on unrecognized tax benefits in pre-tax income as interest expense and other expense, respectively. For the year ended December 31, 2025, the Company added tax-related interest expense of $55,000, and for the years ended December 2024 and 2023, the Company released tax-related interest expense of $3,000 and $107,000, respectively, in its consolidated income statement. As of December 31, 2025 and 2024, the Company had an income tax-related interest payable of $269,000 and $325,000, respectively, on its consolidated balance sheets.
Income taxes paid during the year included in the consolidated statement of cash flows represent the following:
(Expressed in thousands)   
 For the Years Ended December 31,
 202520242023
Federal$34,364 $18,717 $11,520 
State
New York State 2,883 *3,530 
New York City **2,499 
Others7,219 1,430 1,798 
10,102 1,430 7,827 
Foreign1,675 1,125 1,229 
Total$46,141 $21,272 $20,576 
(*) The amount of income taxes paid during this year does not meet the 5% disaggregation threshold for this jurisdiction