OPPENHEIMER HOLDINGS INCOPY

OPPENHEIMER HOLDINGS INC Leases Disclosure

10-KFiled Feb 26, 20263 min read
Leases
The Company has operating leases for office space and equipment expiring at various dates through 2035. The Company leases its corporate headquarters at 85 Broad Street, New York, New York which houses its executive management team and many administrative functions for the Company as well as its research, trading, investment banking, and asset management businesses and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments. In addition, the Company has 88 retail branch offices in the United States as well as offices in London, England, St. Helier, Isle of Jersey, Geneva, Switzerland, Tel Aviv, Israel and Hong Kong, China.

The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year. Substantially all of the leases are held by the Company's subsidiary, Viner Finance Inc., which is a wholly owned subsidiary of the Company.

Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew and the exercise of lease renewal options is at the Company's sole discretion. The Company did not include the renewal options as part of the right of use assets and liabilities. The depreciable life of assets and leasehold improvements is limited by the expected lease term. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As of December 31, 2025, the Company had right-of-use operating lease assets of $119.1 million (net of accumulated amortization of $137.0 million) which are comprised of real estate leases of $116.2 million (net of accumulated amortization of $134.8 million) and equipment leases of $2.9 million (net of accumulated amortization of $2.2 million). As of December 31, 2025, the Company had operating lease liabilities of $154.9 million which are comprised of real estate lease liabilities of $152 million and equipment lease liabilities of $2.9 million. The Company had no finance leases as of December 31, 2025.

As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of December 31, 2025 and December 31, 2024, respectively:
As of
December 31, 2025
December 31, 2024
Weighted average remaining lease term (in years)5.576.08
Weighted average discount rate7.36%7.50%
The following table presents operating lease costs recognized for the years ended December 31, 2025 and December 31, 2024, respectively, which are included in occupancy and equipment costs on the consolidated income statements:
                                                                                        
(Expressed in thousands)
For the Year Ended
December 31, 2025
For the Year Ended
December 31, 2024
Operating lease costs:
      Real estate leases - Right-of-use lease asset amortization$24,399 $24,394 
      Real estate leases - Interest expense11,839 12,761 
      Equipment leases - Right-of-use lease asset amortization1,693 1,706 
      Equipment leases - Interest expense197 176 

The maturities of lease liabilities as of December 31, 2025 are as follows:
    
(Expressed in thousands)


As of
December 31, 2025
2026$43,665 
202740,976 
202826,884 
202920,251 
203017,429 
After 203040,674 
Total lease payments189,879 
Less interest(34,951)
Present value of lease liabilities$154,928 

As of December 31, 2025, the Company had $9.5 million of additional operating leases that have not yet commenced. ($6.9 million as of December 31, 2024).

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Mar 1, 2024
2022Feb 28, 2023
2021Feb 28, 2022
2020Mar 1, 2021
2019Mar 2, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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