Oppenheimer Holdings Inc. (OPY): Business Model Canvas [Dec-2025 Updated]

You're looking to map out exactly how Oppenheimer Holdings Inc. makes its money, right? After two decades analyzing firms, I can tell you their model isn't simple; it's a powerful blend of full-service Wealth Management and Capital Markets, which is key to their stability. Still, the numbers tell the real story: as of late 2025, they are managing $55.1 Billion in client assets, supported by 927 Financial Professionals, all while generating a trailing twelve-month revenue of about $1.48 Billion. Honestly, understanding the mechanics behind that revenue-especially how compensation eats up 68.4% of it-is crucial for any serious valuation. Dive below to see the full nine blocks of their business engine.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships Oppenheimer Holdings Inc. relies on to execute its business model, especially in capital markets and wealth management as of late 2025. These partnerships are critical for everything from trade settlement to product sourcing.

Co-managers and joint bookrunners for underwriting syndicates are crucial for the Capital Markets segment. The activity level dictates associated costs and revenue generation. For instance, in the third quarter of 2025, Capital Markets reported revenue of $162.1 million, which was 30.7% higher than the prior year period, with non-compensation expenses rising due to increased underwriting activity. This activity involves partnering with other firms to share risk and broaden distribution for corporate clients.

Here are some examples of recent syndicate roles from Q3 2025:

• Co-Lead Manager on Centessa Pharmaceuticals' $287.5MM CMPO.
• Co-Lead Manager on MindMed's $259MM CMPO.
• Joint Bookrunner on Olema Oncology's $218.5MM CMPO.

The scale of the business supported by these partnerships is significant; Assets Under Management (AUM) stood at $55.1 billion as of September 30, 2025.

Clearing and custody providers for client accounts are non-negotiable partners for any major broker-dealer. Oppenheimer Holdings Inc. depends on these entities for the ultimate custody of client securities and for market operations. As of September 30, 2025, the firm maintains clearing/participating arrangements with several key organizations:

• National Securities Clearing Corporation
• Fixed Income Clearing Corporation (FICC)
• Mortgage-Backed Securities Division (a division of FICC)
• Options Clearing Corporation

For its international equities business, Oppenheimer Europe, Ltd. clears through Global Prime Partners, Ltd., a UK-based global clearing financial institution. While the right to charge the Company for client failures exists with no stated maximum, as of September 30, 2025, no liabilities were recorded related to this right.

Technology vendors for trading and advisory platforms represent a necessary, recurring cost within the operating structure. Non-compensation expenses in the second quarter of 2025 were 13.8% higher than the prior year, primarily driven by an increase in communication and technology expenses. Similarly, Q3 2025 non-compensation expenses were modestly higher, partially due to increased technology-related expenses. These vendors support the execution, clearance, and custody functions that underpin daily operations.

Strategic alliances for specialized investment products are central to the Wealth Management offering, particularly for qualified investors seeking diversification. Oppenheimer Asset Management partners directly with specialized managers at alternative asset funds that possess unique investment themes. This allows the firm to offer clients access to a wide universe of alternatives via a proprietary platform. The types of specialized products accessed through these alliances include:

• Traditional Private Equity
• Direct Investment
• Fund of Funds
• Single Strategy

The overall financial scale managed through these services is reflected in the Assets Under Administration (AUA), which stood at $143.5 billion at the end of Q3 2025.

Here's a quick look at the financial context surrounding these operational partnerships as of late 2025:

Finance: draft 13-week cash view by Friday.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Key Activities

You're looking at the core engine driving Oppenheimer Holdings Inc. (OPY) as of late 2025, focusing on the actual numbers that define what they spend time and capital on.

Investment banking: M&A advisory and capital raising

The Capital Markets segment is definitely seeing momentum. Investment Banking Income hit $211.892M in the third quarter of 2025, which is a solid jump from $173.816M in the third quarter of 2024. This shows advisory and banking activity is strong. For instance, in the second quarter of 2025, advisory fees earned from investment banking activities surged by 83.0% year-over-year, largely thanks to bigger mandate sizes. Capital raising also showed strength:

• Equities underwriting fees increased 9.1% in Q2 2025 versus the prior year period.
• Fixed income underwriting fees saw an even bigger jump, up 115.3% in Q2 2025 due to higher corporate and sovereign issuance.

The firm is definitely leaning into deal-making. It's a core revenue driver.

Sales and trading across equities and fixed income

This activity feeds directly into the Total Revenue figure, which was $424.438M in Q3 2025. The sales and trading engine is crucial, as evidenced by the strong non-interest income of $385.579M for that same quarter. Trading volumes were robust, especially when volatility picked up. Here's a look at how the sales and trading components performed in earlier quarters:

The balance sheet reflects this activity, with Trading Account Securities at $1.417B in Q3 2025. In the first quarter, equities sales and trading revenue was up 37.9% year-over-year, and fixed income sales and trading revenue increased 5.2%.

Asset management and investment advisory services

Rising markets proved quite favorable to the revenue derived from asset management. The firm reported that Assets under Administration (AUA) and Assets under Management (AUM) hit fresh records as of June 30, 2025. Specifically, as of March 31, 2025, AUM stood at $48.9B, with AUA at $129.9B. This growth directly impacts advisory fees, which rose 12.2% year-over-year in Q1 2025. The Wealth Management segment generated revenue of $242.0M in Q1 2025.

Proprietary equity research on over 600 companies

The research function supports both the advisory and trading businesses. As of the first quarter of 2025, the firm had 35+ senior research analysts actively covering over 600 companies. This deep coverage is a key resource for the firm's advisory-driven approach, moving beyond simple transactional business.

Recruiting and retaining 927 Financial Professionals

Talent is a critical resource, and the firm actively manages its professional headcount. The Financial Advisor headcount at the end of the second quarter of 2025 was reported at 927. Recruiting and retention efforts are supported by upfront loans to financial advisors, which generally amortize over a service period ranging from 3 to 9 years, contingent on continued employment. Overall, Oppenheimer & Co. Inc. employs more than 2,900 people, including over 1,000 financial professionals as of a recent filing context.

Finance: draft 13-week cash view by Friday.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Key Resources

You're looking at the core assets that power Oppenheimer Holdings Inc.'s operations as of late 2025. These aren't just line items; they are the engines driving their middle-market investment banking and wealth management services. Honestly, the firm's strength rests heavily on the people it employs and the capital it manages, which is clear when you look at the numbers coming out of the third quarter.

Here's a quick look at the most concrete, measurable resources Oppenheimer Holdings Inc. is deploying:

That stockholders' equity figure, hitting a record high, definitely speaks to a strong regulatory capital base and a solid balance sheet, which is crucial for weathering market uncertainty. It gives them the capacity to take calculated risks and support growth initiatives.

The physical and intangible presence of Oppenheimer Holdings Inc. is also a vital resource, underpinning its ability to serve a diverse client base across geographies. This network supports the established, independent broker-dealer brand recognition they have built over time.

• Global network footprint includes key financial centers: US, London, Tel Aviv, and Hong Kong.
• The US operations are supported by 88 retail branches across the country.
• The brand represents an established, independent broker-dealer and investment bank.
• The firm's structure allows it to provide financial services and advice to high net-worth investors, individuals, businesses, and institutions.

Finance: draft 13-week cash view by Friday.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Oppenheimer Holdings Inc. over competitors, especially now, given the market volatility seen through the third quarter of 2025. The value proposition is built on being an independent player offering a full spectrum of services.

Full-service, independent investment bank and broker-dealer

Oppenheimer Holdings Inc. stands as a well-recognized brand and one of the few independent, non-bank broker-dealers offering full-service capabilities. This independence is key; it means they aren't tied to a massive commercial bank structure, allowing for more objective advice. Their business is structured around delivering both wealth management and capital markets solutions under one roof.

The firm serves a diverse clientele, including high net worth investors, individuals, businesses, and institutions. As of the end of the third quarter of 2025, the firm employed 927 financial advisors.

Deep expertise in the middle-market segment

The Capital Markets division is a leading force, focusing heavily on providing sophisticated investment banking, research, and trading solutions. A core part of this value is the specialization in the middle-market. Their investment banking division specifically focuses on strategic advisory, capital raising, Mergers & Acquisitions (M&A), and restructuring, particularly for emerging growth and mid-sized companies.

This focus translated into strong revenue performance in the latest reported quarter. For the third quarter of 2025, Capital Markets revenue surged 30.7% year-over-year to $162.1 million. The pre-tax margin for Capital Markets in Q3 2025 stood at 7.6%.

Comprehensive wealth management and financial planning

For the individual and family side, the value is in comprehensive, integrated wealth planning. This goes beyond simple brokerage. You get services covering financial planning, retirement solutions, insurance, and trust services, all supported by dedicated financial professionals. The momentum in financial markets through Q3 2025 propelled assets under management (AUM) to a new all-time high.

Here's how the Wealth Management segment performed in Q3 2025:

By September 30, 2025, Assets Under Management (AUM) reached $55.1 billion, and Assets Under Administration (AUA) hit $143.5 billion, both at record highs.

Access to proprietary research and institutional-grade products

Oppenheimer Holdings Inc. emphasizes an open architecture approach, meaning they aren't just pushing proprietary products. They leverage independent thinking and trusted research to give clients access to a broad universe of investment opportunities. This includes offering access to specialized products like Hedge Funds & Fund-of-Funds within their Retail Investments services.

The firm's overall revenue for Q3 2025 was $424.4 million, a 13.7% increase compared to Q3 2024, showing that the market activity driven by positive sentiment-like the Federal Reserve's rate cutting cycle-is feeding directly into their revenue streams.

Tailored, client-centric financial solutions for long-term growth

The firm's strategy blends traditional and specialized financial products using a team-based approach to meet the unique goals of clients. This client-centricity is evident in the tailored advice offered across equities, fixed income, alternative assets, and capital markets transactions. They focus on delivering solutions for complex financial needs for individuals, families, businesses, and institutions.

The firm's commitment to its balance sheet strength supports these long-term solutions. As of September 30, 2025, Book Value per Share reached a record high of $87.47, and Tangible Book Value per Share was $70.48.

The value proposition is supported by these core service areas:

• Full-Service Brokerage
• Investment Policy Design & Implementation
• Asset Allocation & Portfolio Construction
• Mergers & Acquisitions Advisory
• Securities Lending

Finance: draft the 13-week cash view by Friday.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Customer Relationships

You're looking at how Oppenheimer Holdings Inc. maintains its client connections, which is really the engine for their Wealth Management segment. The relationship is fundamentally built around the individual Financial Professional, acting as the primary, high-touch interface for clients.

The scale of this personalized relationship is best seen in the numbers as of September 30, 2025. The firm supported its client base with a dedicated headcount of 927 Financial Advisors across the enterprise. This team manages client assets that reached a record high of $55.1 billion in Assets Under Management (AUM) by the end of Q3 2025. To give you a fuller picture of the relationship scope, Client Assets Under Administration (CAUA) totaled $143.5 billion on that same date. This focus on deep, one-on-one engagement is what drives the recurring revenue stream.

The full-service model requiring high-touch interaction is evident in their operational structure. Oppenheimer & Co. Inc. operates as a full service broker-dealer, meaning they aren't just executing trades; they are providing comprehensive advice. This high-touch approach is supported by a broad geographic footprint, serving clients from 88 offices in 25 states across the United States, plus international locations including Hong Kong, London, Geneva, St. Helier, and Tel Aviv as of September 30, 2025. The firm's Wealth Management segment reported revenue of $259.7 million for the third quarter of 2025, showing a 5.6% increase year-over-year, which reflects the ongoing value clients place on this integrated service.

When we look at discretionary and non-discretionary advisory services, you see the direct monetization of this relationship. AUM, which includes client investments in both discretionary and non-discretionary advisory programs, hit that record $55.1 billion in Q3 2025. This directly translated to advisory fees increasing by 10.5% year-over-year in Q3 2025, because of the higher billable AUM during the billing period. The services offered are quite granular, covering everything from initial strategy to ongoing monitoring.

Here's a quick look at how the Wealth Management revenue components stacked up in Q3 2025:

The model supports a spectrum of client needs, from full delegation to advisor-directed programs. For instance, advisory services include Investment Policy Design & Implementation, Asset Allocation & Portfolio Construction, and Portfolio Monitoring & Reporting. If onboarding takes 14+ days, churn risk rises, so efficiency in setting up these tailored plans is defintely key.

Finally, the institutional sales and trading desk support provides a complementary, high-volume relationship channel. This segment serves corporate and municipal issuers with debt and equity offerings, and supports investors through execution. The strength of this relationship channel is reflected in the Capital Markets revenue performance for Q3 2025, which was $162.1 million, a 30.7% increase compared with the prior year period. This indicates strong engagement with institutional clients, driven by market activity.

• Equities sales and trading revenue increased 32.5% compared with the prior year period in Q3 2025.
• Fixed income sales and trading revenue increased 8.0% compared with a year ago in Q3 2025.
• Investment Banking revenue improved on the back of more advisory mandates and strong equity underwriting fees.
• The institutional platform delivers in-depth research coverage across multiple sectors.

Finance: draft 13-week cash view by Friday.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Channels

You're looking at how Oppenheimer Holdings Inc. gets its services and products to its clients, which is a mix of old-school physical presence and modern digital access. It's a classic full-service model, relying heavily on its people and footprint.

The core of the retail distribution is the physical network across the United States. As of the first quarter of 2025, Oppenheimer Holdings Inc. maintained a network of 89 US retail branch offices, down slightly from 88 offices reported at the end of 2024. This physical presence is the base for direct client interaction.

Direct access is channeled primarily through its Financial Professionals. This is where the bulk of the wealth management service delivery happens. The headcount for financial advisors shows the scale of this direct channel:

• Financial Advisor Headcount (End of Q1 2025): 933
• Financial Advisor Headcount (End of Q2 2025): 927

To give you a clearer picture of the scale across the key distribution segments, here is a breakdown of the personnel supporting these channels:

Institutional sales desks provide global reach for capital markets services. The fixed income sales and trading effort supports institutional accounts from offices in the U.S., the United Kingdom (London and Isle of Jersey), and Asia (Hong Kong). The Investment Banking division also has professionals operating across the United States, the United Kingdom, Germany, and Israel. International offices supporting these institutional and wealth management functions are also present in St. Helier, Geneva, and Tel Aviv.

Finally, the model incorporates digital platforms for client servicing. These platforms are essential for modern delivery, even if the specific usage metrics aren't always broken out in the same way as advisor headcount. Oppenheimer Holdings Inc. uses these systems for:

• Client reporting access for wealth management clients.
• Trading access capabilities.
• Distribution of research and market analysis.

The firm's Capital Markets revenue is driven by investment banking activities and sales/trading, which are supported by these direct and institutional channels, supplemented by the digital infrastructure. Finance: draft 13-week cash view by Friday.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Customer Segments

You're looking at the core groups Oppenheimer Holdings Inc. serves as of late 2025. This firm positions itself as a leading middle market investment bank and full-service broker-dealer, which means its client base is quite diverse, spanning from individuals to corporations and public entities.

High-net-worth (HNW) and ultra-high-net-worth individuals

This group forms the backbone of the Wealth Management segment. These clients utilize the firm's full-service brokerage capabilities, financial planning, and advisory services. The success with this segment is directly tied to Assets Under Management (AUM), which reached a record high of $55.1 billion as of September 30, 2025. The firm supported these clients with a headcount of 927 Financial Advisors at the end of the third quarter of 2025.

The revenue derived from managing these relationships shows clear growth drivers:

Retail Investments offered to these clients also include access to Hedge Funds & Fund-of-Funds and Private Equity opportunities, specifically the Private Market Opportunity for Qualified Investors only.

Retail investors seeking full-service brokerage

While overlapping with HNW individuals, this segment captures the broader base utilizing the firm's retail services, which include Margin & Securities Lending alongside core brokerage. The firm maintains 88 retail branch offices across 25 states in the United States. The activity level from this group directly impacts transaction-based revenue streams. For instance, retail commissions saw a 12.7% rise in the third quarter of 2025 compared to the prior year, driven by higher retail transaction volumes.

Middle-market corporations and emerging growth companies

These entities are primary targets for the Capital Markets division, specifically within Investment Banking. Oppenheimer Holdings Inc. describes itself as a leading middle market investment bank. The focus industries for their Capital Markets business include Healthcare, Technology, Transportation & Logistics, Finance & Real Estate, Consumer & Retail, and Energy. The firm's advisory assignments for these companies drove a substantial increase in Investment Banking revenues in the third quarter of 2025.

The overall Capital Markets segment generated revenue of $162.1 million in the third quarter of 2025, a 30.7% increase year-over-year, and posted a pre-tax income of $12.3 million, swinging from a pre-tax loss of $6.1 million a year ago.

Institutional investors (e.g., pension funds, hedge funds)

Institutional clients interact heavily with the Institutional Equities side of Capital Markets, which encompasses Sales and Trading, and Equity Research. The momentum in financial markets during Q3 2025, which included extended rallies, resulted in strong institutional trading volumes, which buoyed sales and trading revenue. The firm provides Equity Research, covering fixed income professionals covering high yield corporate, mortgage backed, emerging market, and municipal securities. Client Assets under Administration (CAUA), which includes assets managed for institutions, stood at $143.5 billion as of September 30, 2025.

Government and public finance entities

Oppenheimer Holdings Inc. engages in public finance activities as part of its investment banking services. While specific revenue attribution for this segment is not broken out separately in the latest reports, it falls under the broader Capital Markets umbrella, which saw significant revenue growth. The firm provides financial services and advice to institutions, which includes public entities requiring capital raising or advisory services through its investment banking platform.

The firm's total global footprint supporting these segments includes offices in 25 states in the US, plus international locations like London, Hong Kong, Geneva, Tel Aviv, and St. Helier, Isle of Jersey. The total employee count supporting all client segments was 2,978 as of the third quarter of 2025.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Cost Structure

You're looking at the core expenses for Oppenheimer Holdings Inc. (OPY) as of late 2025, which shows a clear focus on personnel costs, typical for a full-service investment bank. The cost structure is heavily weighted toward the people who generate the revenue.

Compensation expense is the dominant cost driver. For the third quarter of 2025, compensation and related expenses hit $290.222 million, which represented approximately 68.4% of the total revenue of $424.438 million for that period. This percentage aligns precisely with the expected structure for a performance-driven financial services firm.

The variable nature of these costs is evident in the components driving the expense:

• Greater production-related expenses.
• Higher bonus accruals.
• Elevated costs associated with stock appreciation rights tied to the share price.
• Pre-tax compensation expenses for liability-based awards totaled $13.5 million in Q3 2025.

To give you a clearer picture of the Q3 2025 expense allocation, here is the breakdown of the major cost categories:

Note: The percentage of Total Expenses is calculated from the reported figures for 3Q-25.

Non-compensation costs are the second largest bucket. For the three months ended September 30, 2025, these expenses totaled $102.581 million. These costs include the technology and communication expenses you mentioned, as well as other operating overhead. For instance, in the second quarter of 2025, non-compensation expenses were 13.8% higher than the prior year, driven primarily by an increase in communication and technology expenses and travel-related costs.

Regulatory compliance and professional fees fall within the non-compensation category. While a specific dollar amount for just these items isn't explicitly broken out in the Q3 2025 summary, the overall non-compensation expense reflects these necessary operational costs. The firm also noted that higher underwriting expenses were a factor in the marginal increase of non-compensation expenses in Q3 2025.

The physical footprint costs, specifically real estate and occupancy, are tied to the firm's network. As of the third quarter of 2025, Oppenheimer Holdings Inc. maintained 89 retail branch offices across 25 states, plus offices in Puerto Rico. This physical presence is a fixed cost component within the broader non-compensation expenses, supporting the firm's Wealth Management segment, which had 927 financial advisors at the end of Q3 2025.

Finance: draft 13-week cash view by Friday.

Oppenheimer Holdings Inc. (OPY) - Canvas Business Model: Revenue Streams

You're looking at how Oppenheimer Holdings Inc. actually brings in the money, which is crucial for any valuation model you're building. It's a mix of recurring fees and transactional spikes, as you'd expect from a full-service firm.

The trailing twelve months (TTM) revenue, as of September 30, 2025, clocked in at approximately $1.54 Billion. That's up from the $1.4 Billion annual revenue reported for the full year 2024. For the third quarter of 2025 alone, total revenue hit $424.4 million, a solid 13.7% increase year-over-year.

Here's a look at the key components driving that top line, focusing on the most recent detailed segment data from Q3 2025:

• Advisory fees are directly tied to the assets they manage. As of September 30, 2025, Assets Under Management (AUM) hit a record high of $55.1 billion, which directly fuels this fee-based income stream.
• Transaction-based activity saw strong tailwinds. Equities sales and trading revenue jumped 32.5% year-over-year in Q3 2025.
• Investment banking revenue saw a substantial increase in Q3 2025 amid a favorable capital raising environment.

The revenue breakdown between the two main segments for Q3 2025 shows where the current momentum lies:

The Capital Markets segment's surge in Q3 2025, up 30.7%, was a major driver, with investment banking revenues benefiting from increased equity issuance volumes. Still, Wealth Management remains the larger component of the total revenue base, even with slower growth that quarter.

You see the impact of market conditions on the transaction side clearly when you look at the components within those segments. For instance, in Q1 2025, revenue was driven by higher advisory fees from billable AUM, plus increased transaction-based commissions and sales and trading revenue. Here's a snapshot of the drivers mentioned in earlier 2025 reports:

• Advisory Fees based on AUM: Q1 2025 saw Advisory Fees growth of 12.2% year-over-year, supported by AUM of $48.9 billion at March 31, 2025.
• Investment Banking Fees: Q3 2025 saw a substantial increase in these fees, which include underwriting and M&A advisory mandates.
• Commissions from Brokerage Activity: Q3 2025 saw higher commissions due to strong investor sentiment.
• Sales and Trading Revenue: Fixed income sales and trading revenue increased 8.0% in Q3 2025, while equities sales and trading revenue increased 32.5% in Q1 2025.

The total Assets Under Administration (AUA) for Oppenheimer Holdings Inc. reached $143.5 billion as of September 30, 2025. That massive base is what supports the recurring advisory fee revenue stream, which is the bedrock of the Wealth Management business.

Finance: draft 13-week cash view by Friday.