PIPER SANDLER COMPANIESPIPR

PIPER SANDLER COMPANIES Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
EARNINGS PER SHARE
Basic earnings per common share is computed by dividing net income attributable to Piper Sandler Companies by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive stock options, restricted stock units and restricted shares. The Company uses the treasury stock method to calculate diluted earnings per common share.

The computation of EPS is as follows:
 Year Ended December 31,
(Amounts in thousands, except per share data)202520242023
Net income attributable to Piper Sandler Companies
$281,331 $181,114 $85,491 
Shares for basic and diluted calculations
Average shares used in basic computation16,658 15,838 14,958 
Stock options60 55 25 
Restricted stock units153 184 163 
Restricted shares914 1,617 2,079 
Average shares used in diluted computation17,785 17,695 17,224 
Earnings per common share
Basic$16.89 $11.44 $5.72 
Diluted$15.82 $10.24 $4.96 

The anti-dilutive effects from stock options and restricted shares were immaterial for the years ended December 31, 2025, 2024 and 2023.

Common Stock Split
As discussed in Note 1, on February 6, 2026, the Company's board of directors approved a four-for-one forward split of its common stock, which will be effected through the filing of an amendment to the Company's amended and restated certificate of incorporation on March 23, 2026. The unaudited proforma computation of EPS on a post-split basis is as follows:
 Year Ended December 31,
(Amounts in thousands, except per share data)202520242023
Net income attributable to Piper Sandler Companies, as reported
$281,331 $181,114 $85,491 
Proforma shares for basic and diluted calculations
Proforma average shares used in basic computation
66,632 63,354 59,830 
Proforma stock options
239 221 99 
Proforma restricted stock units
614 736 651 
Proforma restricted shares
3,655 6,469 8,316 
Proforma average shares used in diluted computation
71,140 70,780 68,896 
Proforma earnings per common share
Proforma basic
$4.22 $2.86 $1.43 
Proforma diluted
$3.95 $2.56 $1.24 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 25, 2021
2019Feb 28, 2020
2018Feb 26, 2019
2017Feb 26, 2018
2016Feb 24, 2017
2015Feb 25, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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