Fair value measurements

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

Securities owned, securities sold but not yet purchased, investments, derivative contracts and certain loans are carried at fair value with changes in fair value recognized in earnings each period. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A description of the valuation techniques applied and inputs used in measuring the fair value of the Company’s financial instruments, as well as the general classification of such instruments pursuant to the valuation hierarchy, are as follows:

Securities

The Company determines the fair value of securities (both long and short) primarily based on pricing sources with reasonable levels of price transparency. Where unadjusted quoted prices for identical assets or liabilities are available in an active market, we classify the securities within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities, money market funds and corporate equities.

If quoted market prices are unavailable, fair values are generally determined using pricing models which incorporate market observable inputs, such as benchmark yields, recently executed transaction prices, issuer spreads, reported trades, bids, offers and other reference data. Examples of such instruments, which are typically classified within Level 2 of the valuation hierarchy, include U.S. Agency securities, sovereign obligations, corporate debt and other obligations, mortgage and other asset-backed securities, municipal obligations, money market funds and convertible bonds.

In limited situations where there is reduced activity or less observability around inputs to the valuation, we classify those securities in Level 3 of the valuation hierarchy. The Company valued the auction rate securities owned at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities and the period of time since the last tender offer. As of March 31, 2026 and December 31, 2025, the Company had $128,000, of auction rate securities in Level 3 assets. The Company also valued a convertible note using a discounted cash flow model and warrants using a Black-Scholes option pricing model and categorized them in Level 3 of the fair value hierarchy due to the models' use of unobservable inputs. As of March 31, 2026, the Company had $2.2 million and $1.2 million of convertible note and warrants, respectively, in Level 3 assets. Additionally, the Company classified a $17.0 million equity security associated with a consolidated private equity fund sponsored by the Company within Level 3 of the fair value hierarchy due to unobservable pricing inputs.

Derivative financial instruments

The Company classifies exchange-traded derivative financial instruments such as futures contracts in Level 1 of the valuation hierarchy. Some of our derivative positions, such as to-be-announced securities, are valued using models that use observable market parameters, and we classify them in Level 2 of the valuation hierarchy.

Loans

The fair value of loans is estimated using recently executed transactions and current price quotations, which are usually observable. When observable pricing information is not available, fair value is generally determined based on cash flow models using discounted cash flow models, competitor comparable data and other valuation metrics. As of March 31, 2026 and December 31, 2025, the Company had $296,000 and $653,000 of loans, respectively, in Level 2 assets.

Other

The Company owns an equity method investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the condensed consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. As of March 31, 2026 and December 31, 2025, the fair value of this investment was $6.1 million and $6.3 million, respectively, and was categorized in Level 2 of the fair value hierarchy.

Trade claims are categorized in Level 3 of the fair value hierarchy due to the illiquid nature of the claims and the period of time since the executed prices. As of March 31, 2026 and December 31, 2025, the Company had no trade claims.

Investments    

In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. There are no readily available market quotations for these investments. The Company records these investments within other assets and uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment unless another method provides a better indicator of fair value. Changes in the fair value of these investments are reflected within other income in the condensed consolidated financial statements.

The following table provides information about the Company's investments in Company-sponsored funds as of March 31, 2026:

(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Private equity funds (1)	$	10,543	$	741	N/A	N/A
	$	10,543	$	741

(1) Private equity funds include portfolios focused on technology, infrastructure, real estate, natural resources and specific co-investment opportunities

The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2025:

(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Private equity funds (2)	$	5,555	$	741	N/A	N/A
	$	5,555	$	741

(1) Private equity funds includes portfolios focused on technology, infrastructure, real estate, natural resources and specific co-investment opportunities

Assets and Liabilities Measured at Fair Value

The Company's assets and liabilities, recorded at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, have been categorized based upon the above fair value hierarchy as follows:

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2026:

(Expressed in thousands)
	Fair Value Measurements as of March 31, 2026
	Level 1		Level 2		Level 3		Total
Assets
Deposits with clearing organizations	$	28,237	$	—	$	—	$	28,237
Securities owned:
U.S. Treasury securities	1,160,684		—		—		1,160,684
U.S. Agency securities	—		5,878		—		5,878
Sovereign obligations	—		5,316		—		5,316
Corporate debt and other obligations	—		7,990		2,153		10,143
Mortgage and other asset-backed securities	—		2,140		—		2,140
Municipal obligations	—		28,350		—		28,350
Convertible bonds	—		17,826		—		17,826
Corporate equities	29,053		—		1,170		30,223
Money markets	5,000		230		—		5,230
Other debt securities (3)	—		—		128		128
Securities owned, at fair value	1,194,737		67,730		3,451		1,265,918
Investments (1)	1,600		10,499		17,000		29,099
Loans (1)	—		296		—		296
Derivative contracts: (2)
TBAs	—		98		—		98
Derivative contracts, total	—		98		—		98
Total	$	1,224,574	$	78,623	$	20,451	$	1,323,648
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	209,798	$	—	$	—	$	209,798
U.S. Agency securities	—		2		—		2
Sovereign obligations	—		997		—		997
Corporate debt and other obligations	—		1,275		—		1,275
Convertible bonds	—		10,652		—		10,652
Corporate equities	9,080		—		—		9,080
Securities sold but not yet purchased, at fair value	218,878		12,926		—		231,804
Derivative contracts: (2)
Futures	3,812		—		—		3,812
TBAs	—		92		—		92
Derivative contracts, total	3,812		92		—		3,904
Total	$	222,690	$	13,018	$	—	$	235,708

(1) Included in other assets on the condensed consolidated balance sheet

(2) Included in receivables from/payables to brokers, dealers and clearing organizations on the condensed consolidated balance sheet

(3) Represents auction rate securities that failed in the auction rate market

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2025:

(Expressed in thousands)
	Fair Value Measurements as of December 31, 2025
	Level 1		Level 2		Level 3		Total
Assets
Deposits with clearing organizations	$	27,996	$	—	$	—	$	27,996
Securities owned:
U.S. Treasury securities	1,151,564		—		—		1,151,564
U.S. Agency securities	—		5,925		—		5,925
Sovereign obligations	—		1,223		—		1,223
Corporate debt and other obligations	—		3,989		2,064		6,053
Mortgage and other asset-backed securities	—		2,109		—		2,109
Municipal obligations	—		28,926		—		28,926
Convertible bonds	—		20,500		—		20,500
Corporate equities	28,200		—		1,170		29,370
Money markets	5,000		4		—		5,004
Other debt securities (3)	—		—		128		128
Securities owned, at fair value	1,184,764		62,676		3,362		1,250,802
Investments (1)	1,600		13,695		17,000		32,295
Loans (1)	—		653		—		653
Derivative contracts: (2)
TBAs	—		34		—		34
Derivative contracts, total	—		34		—		34
Total	$	1,214,360	$	77,058	$	20,362	$	1,311,780
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	155,518	$	—	$	—	$	155,518
U.S. Agency securities	—		1		—		1
Sovereign obligations	—		2,410		—		2,410
Corporate debt and other obligations	—		1,965		—		1,965
Convertible bonds	—		6,096		—		6,096
Corporate equities	9,722		—		—		9,722
Securities sold but not yet purchased, at fair value	165,240		10,472		—		175,712
Derivative contracts: (2)
Futures	133		—		—		133
TBAs	—		27		—		27
Derivative contracts, total	133		27		—		160
Total	$	165,373	$	10,499	$	—	$	175,872

(1) Included in other assets on the condensed consolidated balance sheet

(2) Included in receivables from/payables to brokers, dealers and clearing organizations

(3) Represents auction rate securities that failed in the auction rate market

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for three-months periods ended March 31, 2026 and 2025:

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended March 31, 2026
		Total Realized
	Beginning	and Unrealized	Purchases	Sales and	Transfers	Ending
	Balance	Gain (2)	and Issuances	Settlements	In (Out)	Balance
Assets
Corporate debt and other obligations	1,170	—	—	—	—	1,170
Corporate equities	2,064	89	—	—	—	2,153
Private equity securities (3)	17,000	—	—	—	—	17,000
Other debt securities (1)	128	—	—	—	—	128

(1) Represents auction rate securities that failed in the auction rate market

(2) Included in principal transactions in the condensed consolidated income statement except amounts for corporate and other obligations, which represent paid-in-kind interest, that are included in interest income in the condensed consolidated income statement

(3) Represents equity security associated with a consolidated private equity fund sponsored by the Company

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended March 31, 2025
			Total Realized
	Beginning		and Unrealized		Purchases		Sales and		Transfers		Ending
	Balance		Gain (2)		and Issuances		Settlements		In (Out)		Balance
Assets
Trade claims	$	2,684	$	—	$	534	$	—	$	—	$	3,218
Other debt securities (1)	2,652		206		—		(2,730)		—		128

(1) Represents auction rate securities that failed in the auction rate market

(2) Included in principal transactions in the condensed consolidated income statement

Financial Instruments Not Measured at Fair Value

The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the condensed consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., furniture, equipment and leasehold improvements and accrued compensation).

The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short-term nature of the underlying assets.

Assets and liabilities not measured at fair value as of March 31, 2026:

(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	34,601	$	34,601	$	—	$	—	$	34,601
Deposits with clearing organizations	85,993		85,993		—		—		85,993
Receivables from brokers, dealers and clearing organizations:
Securities borrowed	158,057		—		158,057		—		158,057
Receivables from brokers	48,775		—		48,775		—		48,775
Securities failed to deliver	20,360		—		20,360		—		20,360
Clearing organizations	28,846		—		28,846		—		28,846
Trade date receivables	33,430		—		33,430		—		33,430
Other	5,810		—		5,810		—		5,810
	295,278		—		295,278		—		295,278
Receivables from customers	1,483,755		—		1,483,755		—		1,483,755
Notes receivable, net	55,137		—		55,137				55,137
Company-owned life insurance	106,144		—		106,144		—		106,144
Investments (1)	2,924		—		2,924		—		2,924

(1) Included within other assets on the condensed consolidated balance sheet

(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	19,754	$	19,754	$	—	$	—	$	19,754
Bank call loans	287,900		—		287,900		—		287,900
Payables to brokers, dealers and clearing organizations:
Securities loaned	320,163		—		320,163		—		320,163
Payables to brokers	1,136		—		1,136		—		1,136
Securities failed to receive	49,557		—		49,557		—		49,557
Clearing organization and other	173		—		173		—		173
	371,029		—		371,029		—		371,029
Payables to customers	376,343		—		376,343		—		376,343
Securities sold under agreements to repurchase	968,346		—		968,346		—		968,346

Assets and liabilities not measured at fair value as of December 31, 2025:

(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	38,405	$	38,405	$	—	$	—	$	38,405
Deposits with clearing organizations	79,611		79,611		—		—		79,611
Receivables from brokers, dealers and clearing organizations:
Securities borrowed	160,006		—		160,006		—		160,006
Receivables from brokers	51,080		—		51,080		—		51,080
Securities failed to deliver	2,583		—		2,583		—		2,583
Clearing organizations	27,215		—		27,215		—		27,215
Trade date receivables	14,800		—		14,800		—		14,800
Other	4,283		—		4,283		—		4,283
	259,967		—		259,967		—		259,967
Receivables from customers	1,415,049		—		1,415,049		—		1,415,049
Notes receivable, net	57,965		—		57,965		—		57,965
Company-owned life insurance	109,094		—		109,094		—		109,094
Investments (1)	2,114		—		2,114		—		2,114

(1) Included within other assets on the condensed consolidated balance sheet

(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	18,347	$	18,347	$	—	$	—	$	18,347
Bank call loans	76,800		—		76,800		—		76,800
Payables to brokers, dealers and clearing organizations:
Securities loaned	370,331		—		370,331		—		370,331
Payables to brokers	728		—		728		—		728
Securities failed to receive	18,937		—		18,937		—		18,937
Clearing organizations and other	7,841		—		7,841		—		7,841
	397,837		—		397,837		—		397,837
Payables to customers	393,694		—		393,694		—		393,694
Securities sold under agreements to repurchase	997,192		—		997,192		—		997,192

Derivative Instruments and Hedging Activities

The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the condensed consolidated balance sheet.

Foreign exchange hedges

From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Any unrealized gains and losses on foreign exchange forward contracts

are recorded in other assets or other liabilities on the condensed consolidated balance sheet and other income in the condensed consolidated income statement.

Derivatives used for trading and investment purposes

Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury Notes, federal funds, general collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the condensed consolidated balance sheet in receivables from or payables to brokers, dealers and clearing organizations and in the condensed consolidated income statement as principal transactions revenue, net.

To-be-announced securities

The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on the condensed consolidated balance sheet in receivables from brokers, dealers and clearing organizations or payables to brokers, dealers and clearing organizations and in the condensed consolidated income statement as principal transactions revenue, net.

The notional amounts and fair values of the Company's derivatives as of March 31, 2026 and December 31, 2025 by product were as follows:

(Expressed in thousands)
	Fair Value of Derivative Instruments as of March 31, 2026
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	20,075	$	98
		$	20,075	$	98
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	14,420,000	$	3,812
Other contracts	TBAs	20,075		92
		$	14,440,075	$	3,904

(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.

(Expressed in thousands)
	Fair Value of Derivative Instruments as of December 31, 2025
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	9,900	$	34
		$	9,900	$	34
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	13,960,000	$	133
Other contracts	TBAs	9,900		27
		$	13,969,900	$	160

(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.

The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated income statements for the three months ended March 31, 2026 and 2025:

(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Three Months Ended March 31, 2026
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain/(Loss)
Commodity contracts	Futures	Principal transactions revenue, net	$	3,929
Other contracts	Foreign exchange forward contracts	Other revenue/(Compensation and related expenses)	2
Other contracts	TBAs	Principal transactions revenue, net	(2)
			$	3,929
(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Three Months Ended March 31, 2025
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Loss
Commodity contracts	Futures	Principal transactions revenue, net	$	(1,138)
			$	(1,138)