Lazard Reports First Quarter 2026 Results
Rhea-AI Summary
Lazard (NYSE: LAZ) reported Q1 2026 net revenue of $757 million (up 17%) and adjusted net revenue of $673 million (up 5%). GAAP net income was $101 million ($0.91 diluted); adjusted net income was $47 million ($0.42 diluted). Asset Management net revenue rose 42% to $410 million and ending AUM was $259 billion (up 14%). Financial Advisory net revenue declined 2% to $360 million. Lazard returned $174 million to shareholders and declared a quarterly dividend of $0.50 per share. The company agreed to acquire Campbell Lutyens with ~$500 million anticipated combined 2027 revenue.
Positive
- Net revenue increased to $757M (+17% YoY)
- GAAP net income of $101M (+67% YoY)
- Asset Management net revenue +42% to $410M
- Ending AUM of $259B (+14% YoY)
- Announced acquisition of Campbell Lutyens with ~$500M anticipated combined 2027 revenue
- Returned $174M to shareholders and declared a $0.50 quarterly dividend
Negative
- Adjusted net income declined to $47M (−23% YoY)
- Financial Advisory net revenue fell to $360M (−2% YoY)
- Adjusted compensation ratio widened to 69.9%, above 60% target
- Adjusted non-compensation expense ratio was 22.1%, above 16–20% target range
Key Figures
Market Reality Check
Peers on Argus
LAZ was up 2.15% pre-release, while peers MC, PIPR, SNEX, BGC, and PJT also showed gains between 0.76% and 2.49%, indicating a supportive capital‑markets tape rather than an isolated move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Q4/FY 2025 results | Positive | +2.2% | Full-year 2025 revenue growth, record advisory, strong AUM and capital returns. |
| Oct 23 | Q3 2025 results | Positive | -1.4% | Record adjusted Q3 revenue and strong advisory with rising AUM and inflows. |
| Jul 24 | Q2 2025 results | Positive | -0.7% | Strong Q2 revenue, record advisory growth and higher AUM with net inflows. |
| Apr 25 | Q1 2025 results | Negative | -3.1% | Lower advisory and asset management revenue with AUM down year over year. |
| Jan 30 | Q4/FY 2024 results | Positive | +4.6% | Firm-wide adjusted revenue growth and strong full-year advisory performance. |
Earnings headlines often led to modest price moves, with a mix of aligned and divergent reactions despite generally solid revenue and AUM trends.
Recent earnings releases for Lazard show growing revenue and AUM with active capital return. Q4 and full-year 2024 and full-year 2025 highlighted rising adjusted net revenue, record Financial Advisory performance, and AUM rebuilding to the mid‑$200B range. Quarterly updates through 2025 repeatedly cited record advisory revenue and positive flows. Against this backdrop, the current Q1 2026 report continues the theme of firm‑wide revenue growth and stronger Asset Management, while Financial Advisory trends and profitability metrics remain key watch points.
Historical Comparison
Past earnings releases moved LAZ a modest average of 0.36%, even when revenue and AUM trends were strong, suggesting typically contained post‑earnings volatility.
Sequential earnings since late 2024 have highlighted record Financial Advisory revenue, growing AUM back into the mid‑$200B range, and consistent capital returns, framing Q1 2026 as another step in that multi‑year growth narrative.
Market Pulse Summary
This announcement highlights Q1 2026 revenue growth to $757M, stronger Asset Management performance, and AUM of $259B, alongside lower adjusted net income of $47M. Historically, Lazard’s earnings have produced modest share-price moves despite record advisory years and steady capital returns. Investors may focus on advisory revenue trends, progress toward targeted compensation and non‑compensation ratios, and the strategic impact of the Campbell Lutyens acquisition on longer‑term growth and margins.
Key Terms
adjusted net revenue financial
non-gaap financial
assets under management (aum) financial
adjusted compensation ratio financial
adjusted non-compensation ratio financial
effective tax rate financial
AI-generated analysis. Not financial advice.
- Campbell Lutyens acquisition will establish the leading global primary and secondary advisory business, with approximately
$500 million - Financial Advisory exceeded Lazard 2030 growth goal for 2025 with 28 net Managing Director additions
- Asset Management adjusted net revenue increased
17% year-over-year with positive flows of$9 billion
On a
"The acquisition of Campbell Lutyens is a meaningful step in Lazard's long‑term strategy to build a more productive, resilient, and growth‑oriented firm," said Peter R. Orszag, CEO and Chairman of Lazard. "Asset Management delivered strong results, reflecting early progress in positioning the business to meet client demand. While M&A revenue was affected by the timing of transactions, our outlook is optimistic, and the 28 new Managing Directors added to our Financial Advisory platform over the past year position us well for the future. Across the firm, engagement is strong as clients seek the independent, differentiated advice and investment solutions grounded in contextual alpha that Lazard uniquely provides."
(Selected results, $ in millions, | Three Months Ended | ||||
except per share data and AUM) | March 31, | ||||
2026 | 2025 | % Change | |||
Net Revenue | 17 % | ||||
Financial Advisory | (2 %) | ||||
Asset Management | 42 % | ||||
Net Income | 67 % | ||||
Per share, diluted | 63 % | ||||
Adjusted Financial Measures1 | |||||
Net Revenue | 5 % | ||||
Financial Advisory | (4 %) | ||||
Asset Management | 17 % | ||||
Net Income | (23 %) | ||||
Per share, diluted | (25 %) | ||||
Assets Under Management (AUM) ($ in billions) | |||||
Ending AUM | 14 % | ||||
Average AUM | 15 % | ||||
Note: | On April 30, 2026, Lazard announced that it had entered into a definitive agreement to acquire Campbell Lutyens ("the Transaction"). |
You can read the full press release and investor presentation on Lazard.com. | |
Reconciliations of |
NET REVENUE
Financial Advisory
For the first quarter of 2026, Financial Advisory reported net revenue and adjusted net revenue1 of
Lazard is one of the world's leading independent financial advisors, serving as a trusted partner to clients on significant and complex M&A transactions. During and since the first quarter of 2026, selected highlights include (clients are in italics):
- Keurig Dr. Pepper's
$23 billion - Principal Shareholder Group Trustee Companies on the
£9.9 billion acquisition of Schroders by Nuveen - Zurich Insurance Group on its
£8.2 billion recommended cash offer for Beazley - Biogen's
$5.6 billion - Lone Star Funds'
$3.0 billion - Portland General Electric Company's
$1.9 billion - eBay's
$1.2 billion
Lazard provides tailored advice, expertise and access to a broad universe of capital providers through our Private Capital Advisory and Capital Solutions practices. Private Capital Advisory assignments include advising Falfurrias Capital Partners, Fremman Capital, Parthenon Capital and advising on the closing of Black Bay Partners Third Fund and NOVA Infrastructure on the raise of Infrastructure Fund II. In addition, Lazard advised on raising
Lazard's preeminent restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving First Brands Group, Pine Gate Renewables, Videndum, and Xerox Holdings, and creditor roles involving Anthology, Dish, Gigaclear, Netceed, QVC and Saks Global. In addition, our sovereign advisory practice continues to be active in advising governments and sovereign entities across developed and emerging markets.
For a list of publicly announced transactions please visit our website or follow Lazard on LinkedIn.
Asset Management
For the first quarter of 2026, Asset Management reported net revenue and adjusted net revenue1 of
Management fees on an adjusted basis1 were
Incentive fees on an adjusted basis1 were
Other revenue2 on an adjusted basis1 was
Average assets under management (AUM) was
AUM as of March 31, 2026 was
OPERATING EXPENSES
Compensation and Benefits Expense
For the first quarter of 2026, compensation and benefits expense on a
We focus on the adjusted compensation ratio3 to manage costs, balancing a view of current conditions in the market for talent alongside our objective to drive long-term shareholder value. As part of our Lazard 2030 vision and long-term growth strategy, we aim to deliver an adjusted compensation ratio3 of
Non-Compensation Expenses
For the first quarter of 2026, non-compensation expenses on a
The adjusted non-compensation ratio4 was
As part of our Lazard 2030 vision and long-term growth strategy, we aim to deliver an adjusted non-compensation ratio4 between
TAXES
The benefit for income taxes on a
CAPITAL MANAGEMENT AND BALANCE SHEET
In the first quarter of 2026, Lazard returned
On April 30, 2026, Lazard declared a quarterly dividend of
Lazard's financial position remains strong. As of March 31, 2026, our cash and cash equivalents were
ENDNOTES
1 A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding |
2 Beginning in the first quarter of 2026, the Company presents Other revenue separately from Management fees in order to improve the analysis of average annual fee rates. Prior period results have been recast to conform to this change. |
3 A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue. |
4 A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue. |
CONFERENCE CALL
Lazard will host a conference call at 8:00 a.m. ET on May 1, 2026, to discuss the company's financial results for the first quarter of 2026. The conference call can be accessed via a live audio webcast available through Lazard's Investor Relations website at www.lazard.com, or by dialing +1 800-445-7795 (toll-free,
A replay of the conference call will be available by 10:00 a.m. ET, May 1, 2026, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-839-5241 (toll-free,
ABOUT LAZARD
Founded in 1848, Lazard is the preeminent financial advisory and asset management firm, with operations in
Lazard's Announced Agreement to Acquire Campbell Lutyens
On April 30, 2026, Lazard announced that it had entered into a definitive agreement to acquire Campbell Lutyens. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions. Additional information is available on our website, including Lazard's Form 8‑K and investor relations presentation filed with the Securities and Exchange Commission on April 30, 2026.
No Offer or Solicitation
This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made in
Cautionary Note Regarding Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the
These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A "Risk Factors," and also discussed from time to time in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including the following:
- Adverse general economic conditions or adverse conditions in global or regional financial markets;
- Changes in international trade policies and practices including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, the risk of potential government shutdowns, and the economic impacts, volatility and uncertainty resulting therefrom;
- A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);
- Losses caused by financial or other problems experienced by third parties;
- Losses due to unidentified or unanticipated risks;
- A lack of liquidity, i.e., ready access to funds, for use in our businesses;
- Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels; and
- Changes in relevant tax laws, regulations or treaties or an adverse interpretation of those items
These risks and uncertainties are not exhaustive. Our SEC reports describe additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
As a result, there can be no assurance that the forward-looking statements included in this release will prove to be accurate or correct. Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.
Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||
( | |||||||||
Three Months Ended | % Change From | ||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | |||||
($ in thousands, except per share data) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||
REVENUE | |||||||||
Total revenue | (16 %) | 16 % | |||||||
Interest expense | (22,817) | (22,657) | (21,113) | ||||||
Net revenue | 756,582 | 906,721 | 648,051 | (17 %) | 17 % | ||||
OPERATING EXPENSES | |||||||||
Compensation and benefits | 491,894 | 637,694 | 430,270 | (23 %) | 14 % | ||||
Occupancy and equipment | 31,420 | 31,579 | 35,413 | ||||||
Marketing and business development | 28,662 | 35,077 | 27,731 | ||||||
Technology and information services | 48,275 | 48,845 | 46,216 | ||||||
Professional services | 20,678 | 23,708 | 18,837 | ||||||
Fund administration and outsourced services | 33,516 | 33,077 | 26,545 | ||||||
Other | 12,563 | 10,418 | 8,404 | ||||||
Non-compensation expenses | 175,114 | 182,704 | 163,146 | (4 %) | 7 % | ||||
Provision pursuant to tax receivable agreement | – | 1,371 | – | ||||||
Operating expenses | 667,008 | 821,769 | 593,416 | (19 %) | 12 % | ||||
Operating income | 89,574 | 84,952 | 54,635 | 5 % | 64 % | ||||
Provision (benefit) for income taxes | (10,989) | 30,738 | (7,354) | NM | 49 % | ||||
Net income | 100,563 | 54,214 | 61,989 | 85 % | 62 % | ||||
Net income (loss) attributable to noncontrolling interests | (353) | 4,351 | 1,614 | ||||||
Net income attributable to Lazard, Inc. | 102 % | 67 % | |||||||
Attributable to Lazard, Inc. Common Stockholders: | |||||||||
Weighted average shares outstanding: | |||||||||
Basic | 99,460,256 | 99,014,231 | 95,255,423 | – % | 4 % | ||||
Diluted | 106,787,975 | 107,610,166 | 104,828,753 | (1 %) | 2 % | ||||
Net income per share: | |||||||||
Basic | 100 % | 61 % | |||||||
Diluted | 102 % | 63 % | |||||||
CONDENSED CONSOLIDATED | |||
STATEMENT OF FINANCIAL CONDITION | |||
( | |||
As of | |||
March 31, | December 31, | ||
($ in thousands) | 2026 | 2025 | |
ASSETS | |||
Cash and cash equivalents | |||
Deposits with banks and short-term investments | 207,207 | 167,134 | |
Restricted cash | 6,590 | 34,021 | |
Receivables | 773,785 | 897,786 | |
Investments | 516,555 | 625,846 | |
Property | 160,103 | 168,005 | |
Operating lease right-of-use assets | 402,500 | 412,584 | |
Goodwill and other intangible assets | 394,591 | 395,262 | |
Deferred tax assets | 463,527 | 449,531 | |
Other assets | 295,124 | 316,687 | |
Total Assets | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY | |||
Liabilities | |||
Deposits and other customer payables | |||
Accrued compensation and benefits | 214,084 | 794,754 | |
Operating lease liabilities | 472,576 | 485,149 | |
Senior debt | 1,688,808 | 1,688,086 | |
Other liabilities | 553,585 | 652,763 | |
Total liabilities | 3,286,767 | 3,951,604 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 81,426 | 78,379 | |
Stockholders' equity | |||
Preferred stock, par value | – | – | |
Common stock, par value | 1,117 | 1,117 | |
Additional paid-in capital | 106,494 | 306,425 | |
Retained earnings | 1,559,269 | 1,517,571 | |
Accumulated other comprehensive loss, net of tax | (276,678) | (271,509) | |
Subtotal | 1,390,202 | 1,553,604 | |
Common stock held in treasury, at cost | (508,906) | (684,411) | |
Total Lazard, Inc. stockholders' equity | 881,296 | 869,193 | |
Noncontrolling interests | (8,841) | 37,096 | |
Total stockholders' equity | 872,455 | 906,289 | |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | |||
Note: In the first quarter of 2026, the Company changed its accounting principle for recognizing compensation expense for share-based incentive compensation awards and certain deferred compensation arrangements with only a service condition. As a result, the cumulative effect of applying the change to the prior period is reflected on the Company's Condensed Consolidated Statement of Financial Condition as of December 31, 2025. |
SELECTED SUMMARY FINANCIAL INFORMATION | |||||||||
(Adjusted Basis - Non-GAAP - unaudited) | |||||||||
Three Months Ended | % Change From | ||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | |||||
($ in thousands, except per share data) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||
Net Revenue: | |||||||||
Financial Advisory | (34 %) | (4 %) | |||||||
Asset Management | 308,838 | 338,589 | 264,494 | (9 %) | 17 % | ||||
Corporate | 7,976 | 11,892 | 9,148 | (33 %) | (13 %) | ||||
Adjusted net revenue | (25 %) | 5 % | |||||||
Expenses: | |||||||||
Adjusted compensation and benefits expense | (20 %) | 12 % | |||||||
Adjusted compensation ratio (a) | 69.9 % | 65.5 % | 65.5 % | ||||||
Adjusted non-compensation expenses | (6 %) | 1 % | |||||||
Adjusted non-compensation ratio (b) | 22.1 % | 17.8 % | 23.0 % | ||||||
Earnings: | |||||||||
Adjusted operating income | (64 %) | (27 %) | |||||||
Adjusted operating margin (c) | 8.0 % | 16.7 % | 11.5 % | ||||||
Adjusted net income | (47 %) | (23 %) | |||||||
Adjusted diluted net income per share | (48 %) | (25 %) | |||||||
Adjusted diluted weighted average shares (d) | 110,364,000 | 111,064,073 | 107,676,233 | (1 %) | 2 % | ||||
Adjusted effective tax rate (e) | (50.4 %) | 29.5 % | (13.9 %) | ||||||
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding |
See Notes to Financial Schedules |
ASSETS UNDER MANAGEMENT | |||||||||
(unaudited) | |||||||||
As of | % Change From | ||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | |||||
($ in millions) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||
AUM by Asset Class: | |||||||||
Equity: | |||||||||
Emerging Markets | 6.4 % | 51.8 % | |||||||
Global / International | 124,432 | 117,746 | 95,777 | 5.7 % | 29.9 % | ||||
24,831 | 25,580 | 38,714 | (2.9 %) | (35.9 %) | |||||
Total Equity | 193,049 | 184,472 | 163,330 | 4.6 % | 18.2 % | ||||
Fixed Income | 34,423 | 35,065 | 32,287 | (1.8 %) | 6.6 % | ||||
Multi Asset | 23,113 | 24,783 | 22,991 | (6.7 %) | 0.5 % | ||||
Alternative Investments | 8,602 | 9,980 | 8,819 | (13.8 %) | (2.5 %) | ||||
Total AUM | 1.9 % | 14.0 % | |||||||
Three Months Ended | |||||||||
March 31, | December 31, | March 31, | |||||||
2026 | 2025 | 2025 | |||||||
AUM - Beginning of Period | |||||||||
Net Flows | 9,005 | (19,713) | (3,659) | ||||||
Market Value Appreciation / (Depreciation) | 354 | 10,245 | 825 | ||||||
Foreign Exchange Appreciation / (Depreciation) | (2,980) | (769) | 3,940 | ||||||
Acquisitions / (Divestitures) | (1,492) | – | – | ||||||
AUM - End of Period | |||||||||
Average AUM | |||||||||
% Change in Average AUM | – % | 1.7 % | 15.0 % | ||||||
Note: Average AUM generally represents the average of the monthly ending AUM balances for the period. In 2026, AUM Asset Classes have been expanded to include a multi asset classification. The comparable prior period information has been recast to reflect the current presentation. |
RECONCILIATION OF | ||||||
(unaudited) | ||||||
Three Months Ended | ||||||
March 31, | December 31, | March 31, | ||||
($ in thousands) | 2026 | 2025 | 2025 | |||
Net Revenue | ||||||
Financial Advisory net revenue - | ||||||
Adjustments: | ||||||
Reimbursable deal costs, (provision) benefit for credit losses and other (f) | (3,399) | (601) | 2,181 | |||
Interest expense (credit) (g) | – | (74) | 3 | |||
Adjusted Financial Advisory net revenue | ||||||
Asset Management net revenue - | ||||||
Adjustments: | ||||||
Noncontrolling interests and similar arrangements (h) | (3,446) | (7,432) | (6,850) | |||
Distribution fees and other (f) | (19,530) | (21,102) | (16,762) | |||
Interest expense (g) | 41 | 4 | 6 | |||
Gain on sale and deconsolidation of Edgewater (i) | (77,990) | – | – | |||
Adjusted Asset Management net revenue | ||||||
Corporate net revenue - | ( | ( | ( | |||
Adjustments: | ||||||
Noncontrolling interests and similar arrangements (h) | (180) | (4,312) | 839 | |||
Gains related to Lazard Fund Interests ("LFI") and similar arrangements (j) | (1,782) | (3,749) | (5,243) | |||
Interest expense (g) | 22,687 | 22,654 | 20,960 | |||
Adjusted Corporate net revenue | ||||||
Net revenue - | ||||||
Adjustments: | ||||||
Noncontrolling interests and similar arrangements (h) | (3,626) | (11,744) | (6,011) | |||
Gains related to Lazard Fund Interests ("LFI") and similar arrangements (j) | (1,782) | (3,749) | (5,243) | |||
Distribution fees, reimbursable deal costs, provision for credit losses and other (f) | (22,929) | (21,703) | (14,581) | |||
Interest expense (g) | 22,728 | 22,584 | 20,969 | |||
Gain on sale and deconsolidation of Edgewater (i) | (77,990) | – | – | |||
Adjusted net revenue | ||||||
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding |
See Notes to Financial Schedules |
RECONCILIATION OF | ||||||
(unaudited) | ||||||
Three Months Ended | ||||||
March 31, | December 31, | March 31, | ||||
($ in thousands, except per share data) | 2026 | 2025 | 2025 | |||
Compensation and Benefits Expense | ||||||
Compensation and benefits expense - | ||||||
Adjustments: | ||||||
Noncontrolling interests and similar arrangements (h) | (2,870) | (5,310) | (3,741) | |||
Charges pertaining to LFI and similar arrangements (k) | (1,782) | (3,749) | (5,243) | |||
Expenses associated with senior management transition (l) | (16,658) | (43,976) | – | |||
Adjusted compensation and benefits expense | ||||||
Non-Compensation Expenses | ||||||
Non-compensation expenses - | ||||||
Adjustments: | ||||||
Noncontrolling interests and similar arrangements (h) | (1,110) | (2,085) | (657) | |||
Distribution fees, reimbursable deal costs, provision for credit losses and other (f) | (22,929) | (21,703) | (14,581) | |||
Expenses related to the Transaction (m) | (2,400) | – | – | |||
Amortization and other acquisition-related costs | – | (26) | (26) | |||
Adjusted non-compensation expenses | ||||||
Operating Income | ||||||
Operating income - | ||||||
Adjustments: | ||||||
Noncontrolling interests and similar arrangements (h) | 354 | (4,349) | (1,613) | |||
Interest expense (g) | 22,728 | 22,584 | 20,969 | |||
Amortization and other acquisition-related costs | – | 26 | 26 | |||
Gain on sale and deconsolidation of Edgewater (i) | (77,990) | – | – | |||
Expenses associated with senior management transition (l) | 16,658 | 43,976 | – | |||
Expenses related to the Transaction (m) | 2,400 | – | – | |||
Provision pursuant to tax receivable agreement obligation ("TRA") (n) | – | 1,371 | – | |||
Adjusted operating income | ||||||
Provision (Benefit) for Income Taxes | ||||||
Provision (benefit) for income taxes - | ( | ( | ||||
Adjustment: | ||||||
Tax effect of adjustments | (4,634) | 6,439 | – | |||
Adjusted provision (benefit) for income taxes | ( | ( | ||||
Net Income attributable to Lazard, Inc. | ||||||
Net income attributable to Lazard, Inc. - | ||||||
Adjustments: | ||||||
Gain on sale and deconsolidation of Edgewater (i) | (77,990) | – | – | |||
Expenses associated with senior management transition (l) | 16,658 | 43,976 | – | |||
Expenses related to the Transaction (m) | 2,400 | – | – | |||
Provision pursuant to tax receivable agreement obligation ("TRA") (n) | – | 1,371 | – | |||
Tax effect of adjustments | 4,634 | (6,439) | – | |||
Adjusted net income | ||||||
Diluted Weighted Average Shares Outstanding | ||||||
Diluted weighted average shares outstanding - | 106,787,975 | 107,610,166 | 104,828,753 | |||
Adjustment: | ||||||
Participating securities including profits interest participation rights and other | 3,576,025 | 3,453,907 | 2,847,480 | |||
Adjusted diluted weighted average shares outstanding (d) | 110,364,000 | 111,064,073 | 107,676,233 | |||
Diluted Net Income per Share | ||||||
Diluted net income per share - | ||||||
Diluted net income effect of adjustments | (0.49) | 0.35 | – | |||
Adjusted net income per share | ||||||
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding |
See Notes to Financial Schedules |
RECONCILIATION OF NON-COMPENSATION EXPENSES | |||||
(unaudited) | |||||
Three Months Ended | |||||
March 31, | December 31, | March 31, | |||
($ in thousands) | 2026 | 2025 | 2025 | ||
Non-compensation expenses - | |||||
Occupancy and equipment | |||||
Marketing and business development | 28,662 | 35,077 | 27,731 | ||
Technology and information services | 48,275 | 48,845 | 46,216 | ||
Professional services | 20,678 | 23,708 | 18,837 | ||
Fund administration and outsourced services | 33,516 | 33,077 | 26,545 | ||
Other | 12,563 | 10,418 | 8,404 | ||
Non-compensation expenses - | |||||
Non-compensation expenses - Adjustments: | |||||
Occupancy and equipment (h) | ( | ( | ( | ||
Marketing and business development (f) (h) | (3,925) | (5,885) | (2,657) | ||
Technology and information services (f) (h) | (55) | (52) | (28) | ||
Professional services (f) (h) (m) | (3,851) | (1,310) | (1,736) | ||
Fund administration and outsourced services (f) (h) | (18,340) | (19,121) | (15,843) | ||
Other (f) (h) | (172) | 2,653 | 5,095 | ||
Non-compensation expenses - Adjustments | ( | ( | ( | ||
Adjusted non-compensation expenses: | |||||
Occupancy and equipment | |||||
Marketing and business development | 24,737 | 29,192 | 25,074 | ||
Technology and information services | 48,220 | 48,793 | 46,188 | ||
Professional services | 16,827 | 22,398 | 17,101 | ||
Fund administration and outsourced services | 15,176 | 13,956 | 10,702 | ||
Other | 12,391 | 13,071 | 13,499 | ||
Adjusted non-compensation expenses | |||||
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding |
See Notes to Financial Schedules |
Notes to Financial Schedules | ||||||||||
(a) | A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue. | |||||||||
(b) | A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue. | |||||||||
(c) | A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue. | |||||||||
(d) | A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, | |||||||||
(e) | A non-GAAP measure which represents the adjusted provision (benefit) for income taxes as a percentage of adjusted operating income less | |||||||||
Three Months Ended | ||||||||||
($ in thousands) | March 31, | December 31, | March 31, | |||||||
2026 | 2025 | 2025 | ||||||||
Adjusted provision (benefit) for income taxes | ( | ( | ||||||||
Adjusted operating income less interest expense, | ||||||||||
Adjusted effective tax rate | (50.4 %) | 29.5 % | (13.9 %) | |||||||
(f) | Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs, and (provision) benefit for credit | |||||||||
(g) | Interest expense (credit), excluding interest expense incurred by Lazard Frères Banque SA ("LFB"), is added back in determining adjusted net | |||||||||
(h) | (Revenue) loss and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the | |||||||||
(i) | Represents a non-cash gain on the sale and deconsolidation of the Edgewater management vehicles. | |||||||||
(j) | Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which | |||||||||
(k) | Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive | |||||||||
(l) | Represents expenses associated with the departure of certain executive officers. | |||||||||
(m) | Represents expenses related to the Transaction. | |||||||||
(n) | Represents the effect of the periodic revaluation of the TRA liability. | |||||||||
NM | Not meaningful | |||||||||
Media Contact: | Shannon | +1 212 632 6880 | |
Investor Contact: | Alexandra Deignan | +1 212 632 6886 |
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SOURCE Lazard