v3.26.1
Fair value measurements
 6 Months Ended
Jun. 30, 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 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 June 30, 2026, the Company had $2.2 million ($2.1 million as of December 31, 2025) and $1.2 million ($1.2 million as of December 31, 2025) of convertible note and warrants, respectively, in Level 3 assets. Additionally, as of each of June 30, 2026 and December 31, 2025, 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 ("TBA") 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 June 30, 2026 and December 31, 2025, the Company had $148,000 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 using observable market data, including comparable company transactions, to derive an implied market-multiple. During the three months ended June 30, 2026, the investment was reclassified from Level 2 to Level 3 based on the Company's assessment of the observability of certain valuation inputs used in estimating fair value. As of June 30, 2026 and December 31, 2025, the fair value of this investment was $6.3 million and $6.3 million, respectively.
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 each of June 30, 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 June 30, 2026:

(Expressed in thousands)    
 Fair ValueUnfunded
Commitments		Redemption
Frequency		Redemption
Notice Period
Private equity funds (1)
$10,738 $741 N/AN/A
$10,738 $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 ValueUnfunded
Commitments		Redemption
Frequency		Redemption
Notice Period
Private equity funds (1)
$5,555 $741 N/AN/A
$5,555 $741 
(1) Private equity funds include 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 June 30, 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 June 30, 2026:
(Expressed in thousands)
Fair Value Measurements as of June 30, 2026
 Level 1Level 2Level 3Total
Assets
Deposits with clearing organizations$37,408 $— $— $37,408 
Securities owned:
U.S. Treasury securities1,211,878 — — 1,211,878 
U.S. Agency securities— 6,153 — 6,153 
Sovereign obligations— 740 — 740 
Corporate debt and other obligations— 36,914 2,242 39,156 
Mortgage and other asset-backed securities— 2,229 — 2,229 
Municipal obligations— 229,181 — 229,181 
Convertible bonds— 6,974 — 6,974 
Corporate equities30,063 — 1,170 31,233 
Money markets5,000 13 — 5,013 
Securities owned, at fair value1,246,941 282,204 3,412 1,532,557 
Investments (1)
1,622 4,301 23,286 29,209 
Loans (1)
— 148 — 148 
Total$1,285,971 $286,653 $26,698 $1,599,322 
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities$229,891 $— $— $229,891 
U.S. Agency securities— 1 — 1 
Sovereign obligations— 6,903 — 6,903 
Corporate debt and other obligations— 561 — 561 
Convertible bonds— 7,642 — 7,642 
Corporate equities5,826 — — 5,826 
Securities sold but not yet purchased, at fair value235,717 15,107 — 250,824 
Derivative contracts: (2)
Futures 4,889 — — 4,889 
Derivative contracts, total4,889 — — 4,889 
Total$240,606 $15,107 $— $255,713 

(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
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 1Level 2Level 3Total
Assets
Deposits with clearing organizations$27,996 $— $— $27,996 
Securities owned:
U.S. Treasury securities1,151,564 — — 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 equities28,200 — 1,170 29,370 
Money markets5,000 4 — 5,004 
Other debt securities (3)
— — 128 128 
Securities owned, at fair value1,184,764 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 equities9,722 — — 9,722 
Securities sold but not yet purchased, at fair value165,240 10,472 — 175,712 
Derivative contracts: (2)
Futures 133 — — 133 
TBAs— 27 — 27 
Derivative contracts, total133 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 the three and six months ended June 30, 2026 and 2025:
(Expressed in thousands)Level 3 Assets and Liabilities
For the Three Months Ended June 30, 2026
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
Balance
Gain (2)
and IssuancesSettlementsIn (Out)Balance
Assets
Corporate debt and other obligations$2,153 $89 $— $— $— $2,242 
Corporate equities1,170 — — — — 1,170 
Other debt securities (1)
128 — — (128)— — 
Investments (3)
17,000 — — — 6,286 23,286 
(1) Represents auction rate securities that failed in the auction rate market
(2) Included in principal transactions, net in the condensed consolidated income statement except amounts for corporate debt and other obligations, which represent paid-in-kind interest, that are included in interest income in the condensed consolidated income statement
(3) Includes $17 million of 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 June 30, 2025
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
Balance
Gain (2)
and IssuancesSettlementsIn (Out)Balance
Assets
Corporate equities$— $20 $1,170 $— $— $1,190 
Corporate debt and other obligations— 32 1,830 — — 1,862 
Other debt securities (1)
128 — — — — 128 
Trade claims3,218 957 — (4,175)— — 
(1) Represents auction rate securities that failed in the auction rate market
(2) Included in principal transactions, net in the condensed consolidated income statement

(Expressed in thousands)Level 3 Assets and Liabilities
For the Six Months Ended June 30, 2026
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
Balance
Gain (2)
and IssuancesSettlementsIn (Out)Balance
Assets
Corporate debt and other obligations$2,064 $178 $— — $— $2,242 
Corporate equities1,170 — — — — 1,170 
Other debt securities (1)
128 — — (128)— — 
Investments (3)
17,000 — — — 6,286 23,286 
(1) Represents auction rate securities that failed in the auction rate market
(2) Included in principal transactions, net in the condensed consolidated income statement except amounts for corporate debt and other obligations, which represent paid-in-kind interest, that are included in interest income in the condensed consolidated income statement
(3) Includes $17 million of equity security associated with a consolidated private equity fund sponsored by the Company
(Expressed in thousands)Level 3 Assets and Liabilities
For the Six Months Ended June 30, 2025
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
Balance
Gain (2)
and IssuancesSettlementsIn (Out)Balance
Assets
Corporate equities$— $20 $1,170 $— $— $1,190 
Corporate debt and other obligations— 32 1,830 — — 1,862 
Other debt securities (1)
2,652 206 — (2,730)— 128 
Trade claims2,684 957 534 (4,175)— — 
(1) Represents auction rate securities that failed in the auction rate market
(2) Included in principal transactions, net 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 June 30, 2026:
(Expressed in thousands) Fair Value Measurement: Assets
 Carrying ValueLevel 1Level 2Level 3Total
Cash and cash equivalents$38,453 $38,453 $— $— $38,453 
Deposits with clearing organizations120,860 120,860 — — 120,860 
Receivables from brokers, dealers and clearing organizations:
Securities borrowed154,634 — 154,634 — 154,634 
Receivables from brokers54,320 — 54,320 — 54,320 
Securities failed to deliver43,866 — 43,866 — 43,866 
Clearing organizations56,929 — 56,929 — 56,929 
Other7,479 — 7,479 — 7,479 
317,228 — 317,228 — 317,228 
Receivables from customers1,550,773 — 1,550,773 — 1,550,773 
Notes receivable, net53,482 — 53,482 — 53,482 
Company-owned life insurance115,874 — 115,874 — 115,874 
Investments (1)
2,441 — 2,441 — 2,441 
(1) Included within other assets on the condensed consolidated balance sheet
(Expressed in thousands) Fair Value Measurement: Liabilities
 Carrying ValueLevel 1Level 2Level 3Total
Drafts payable$7,181 $7,181 $— $— $7,181 
Bank call loans349,900 — 349,900 — 349,900 
Payables to brokers, dealers and clearing organizations:
Securities loaned392,375 — 392,375 — 392,375 
Payables to brokers3,907 — 3,907 — 3,907 
Securities failed to receive36,095 — 36,095 — 36,095 
Trade date payables, net181,210 — 181,210 — 181,210 
Clearing organization and other4,975 — 4,975 — 4,975 
618,562 — 618,562 — 618,562 
Payables to customers423,779 — 423,779 — 423,779 
Securities sold under agreements to repurchase983,116 — 983,116 — 983,116 

Assets and liabilities not measured at fair value as of December 31, 2025:
(Expressed in thousands) Fair Value Measurement: Assets
 Carrying ValueLevel 1Level 2Level 3Total
Cash and cash equivalents$38,405 $38,405 $— $— $38,405 
Deposits with clearing organizations79,611 79,611 — — 79,611 
Receivables from brokers, dealers and clearing organizations:
Securities borrowed160,006 — 160,006 — 160,006 
Receivables from brokers51,080 — 51,080 — 51,080 
Securities failed to deliver2,583 — 2,583 — 2,583 
Clearing organizations 27,215 — 27,215 — 27,215 
Trade date receivables, net14,800 — 14,800 — 14,800 
Other4,283 — 4,283 — 4,283 
259,967 — 259,967 — 259,967 
Receivables from customers1,415,049 — 1,415,049 — 1,415,049 
Notes receivable, net57,965 — 57,965 — 57,965 
Company-owned life insurance109,094 — 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 ValueLevel 1Level 2Level 3Total
Drafts payable$18,347 $18,347 $— $— $18,347 
Bank call loans76,800 — 76,800 — 76,800 
Payables to brokers, dealers and clearing organizations:
Securities loaned370,331 — 370,331 — 370,331 
Payables to brokers728 — 728 — 728 
Securities failed to receive18,937 — 18,937 — 18,937 
Clearing organizations and other 7,841 — 7,841 — 7,841 
397,837 — 397,837 — 397,837 
Payables to customers393,694 — 393,694 — 393,694 
Securities sold under agreements to repurchase997,192 — 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 June 30, 2026 and December 31, 2025 by product were as follows:
(Expressed in thousands)   
 
Fair Value of Derivative Instruments as of June 30, 2026
 DescriptionNotionalFair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contractsTBAs$75 $— 
$75 $— 
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures$14,645,000 $4,889 
       Other contractsTBAs75 — 
$14,645,075 $4,889 
(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
 DescriptionNotionalFair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contractsTBAs$9,900 $34 
$9,900 $34 
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures$13,960,000 $133 
       Other contractsTBAs9,900 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 and six months ended June 30, 2026 and 2025:
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Three Months Ended June 30, 2026
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet Gain/(Loss)
Commodity contractsFuturesPrincipal transactions revenue, net$3,309 
Other contractsForeign exchange forward contractsOther revenue/(Compensation and related expenses)(22)
Other contractsTBAsPrincipal transactions revenue, net36 
$3,323 
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Three Months Ended June 30, 2025
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet Gain
Commodity contractsFuturesPrincipal transactions revenue, net$393 
Other contractsTBAsPrincipal transactions revenue, net16 
$409 
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Six Months Ended June 30, 2026
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet Gain/(Loss)
Commodity contractsFuturesPrincipal transactions revenue, net$7,238 
Other contractsForeign exchange forward contractsOther revenue/(Compensation and related expenses)(20)
Other contractsTBAsPrincipal transactions revenue, net34 
$7,252 
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Six Months Ended June 30, 2025
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet Gain/(Loss)
Commodity contractsFuturesPrincipal transactions revenue, net$(745)
Other contractsTBAsPrincipal transactions revenue, net16 
$(729)