Lazard Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
Lazard (NYSE: LAZ) reported Q4 2025 net revenue $907M and adjusted net revenue $892M; full-year 2025 net revenue was $3,099M and adjusted net revenue $3,030M. Financial Advisory delivered record full-year adjusted net revenue of $1.8B. Asset Management AUM rose to $254B (+12% YoY). Adjusted net income for 2025 was $266M ($2.44 diluted), while U.S. GAAP net income was $237M ($2.17 diluted). Lazard returned $393M to shareholders in 2025 and announced Tracy Farr as CFO.
Positive
- Financial Advisory record adjusted net revenue of $1.8B
- Asset Management AUM up 12% to $254B
- Full-year adjusted net revenue of $3,030M (+5% YoY)
- Adjusted net income $266M (+9% YoY)
- Revenue per Financial Advisory MD $8.9M; 21 MDs hired in 2025
- Returned $393M to shareholders in 2025 (dividends + buybacks)
Negative
- U.S. GAAP net income declined 15% to $237M for 2025
- Diluted EPS on GAAP fell 19% to $2.17 for 2025
- Q4 2025 net income fell 42% to $50M
- Net outflows of $18.1B for full-year 2025
News Market Reaction
On the day this news was published, LAZ gained 2.24%, reflecting a moderate positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $116M to the company's valuation, bringing the market cap to $5.29B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
LAZ was down 0.3% with mixed peer performance: MC (-1.1%), PIPR (-0.34%), SNEX (-0.8%), while BGC (+1.12%) and PJT (+1.23%) rose. Moves appear stock-specific rather than a unified capital-markets trade.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 23 | Q3 2025 earnings | Positive | -1.4% | Record adjusted net revenue and strong advisory, but shares fell modestly post-print. |
| Jul 24 | Q2 2025 earnings | Positive | -0.7% | Strong quarter with record advisory revenue and higher AUM, yet stock slipped slightly. |
| Apr 25 | Q1 2025 earnings | Negative | -3.1% | Lower advisory and asset management revenue with AUM down year-on-year and stock declining. |
| Jan 30 | FY 2024 earnings | Positive | +4.6% | Strong 2024 revenue growth and shareholder returns accompanied by a solid positive price reaction. |
| Jul 25 | Q2 2024 earnings | Positive | +11.9% | Record first-half advisory revenue and higher AUM drove a double-digit one-day gain. |
Earnings releases often trigger moderate single-day moves, with a mix of aligned and divergent reactions versus generally constructive fundamentals.
Over the past five earnings cycles, Lazard has consistently highlighted growth in Financial Advisory and resilient Asset Management. Prior reports showed record or strong adjusted revenue, ongoing hiring of Managing Directors, and substantial capital returns, including dividends and buybacks. Share price reactions have varied, with both positive and negative moves following fundamentally solid updates. Today’s fourth‑quarter and full‑year 2025 results, featuring record advisory revenue and higher AUM, extend this pattern of steady franchise growth and shareholder distributions.
Historical Comparison
Earnings headlines for LAZ have produced an average one-day move of 4.33%, with both strong rallies and occasional negative reactions.
Across recent earnings, Lazard has maintained growing advisory revenue, gradually expanding AUM, and consistently returning capital via dividends and buybacks, building on 2024 strength into 2025.
Market Pulse Summary
This announcement highlights record 2025 Financial Advisory revenue, 12% year-over-year AUM growth to $254 billion, and continued capital returns of $393 million. Adjusted EPS rose to $2.44 even as GAAP EPS declined, underscoring the importance of non‑GAAP metrics and cost ratios. Historically, Lazard’s earnings have produced varied price reactions, so investors may focus on revenue mix, flows, and progress toward targeted compensation and non‑compensation ratios.
Key Terms
adjusted net revenue financial
assets under management (AUM) financial
non-GAAP financial
restricted stock units (RSUs) financial
deferred stock units (DSUs) financial
Schedule 13G regulatory
effective tax rate financial
AI-generated analysis. Not financial advice.
- Record full-year Financial Advisory adjusted net revenue of
$1.8 billion - Record full-year Asset Management inflows and total AUM up
12% year-over-year - Financial Advisory ahead of 2030 targets, with revenue per MD of
$8.9 million
On a
"2025 demonstrates our ongoing focus on executing our Lazard 2030 long-term growth strategy, with record revenue in Financial Advisory and record gross inflows in Asset Management," said Peter R. Orszag, CEO and Chairman of Lazard. "Efforts to transform both businesses over the past two years are gaining traction and delivering results. With favorable business conditions and strong client demand for contextual alpha—combining business decision-making with broader macroeconomic and geopolitical perspective—Lazard is well positioned for substantial growth opportunities ahead."
Today, Lazard also announced that Tracy Farr has been appointed Chief Financial Officer. You can read the full press release on Lazard.com.
(Selected results, $ in millions, | Three Months Ended | Year Ended | |||||||||
except per share data and AUM) | December 31, | December 31, | |||||||||
2025 | 2024 | % '25-'24 | 2025 | 2024 | % '25-'24 | ||||||
Net Revenue | 11 % | 2 % | |||||||||
Financial Advisory | 4 % | 4 % | |||||||||
Asset Management | 18 % | 7 % | |||||||||
Net Income | (42 %) | (15 %) | |||||||||
Per share, diluted | (44 %) | (19 %) | |||||||||
Adjusted Financial Measures2 | |||||||||||
Net Revenue | 10 % | 5 % | |||||||||
Financial Advisory | 7 % | 5 % | |||||||||
Asset Management | 18 % | 6 % | |||||||||
Net Income | 5 % | 9 % | |||||||||
Per share, diluted | 3 % | 4 % | |||||||||
Assets Under Management (AUM) ($ in billions) | |||||||||||
Ending AUM | 12 % | ||||||||||
Average AUM | 12 % | 2 % | |||||||||
Note: Reconciliations of |
NET REVENUE
Financial Advisory
For the fourth quarter of 2025, Financial Advisory reported both net revenue and adjusted net revenue2 of
For the full year of 2025, Financial Advisory reported net revenue and adjusted net revenue2 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 fourth quarter of 2025, selected highlights include (clients are in italics):
- Kellanova's
$35.9 billion - Constellation Energy's
$26.6 billion - AkzoNobel's
$25.0 billion - TPG's
€6.7 billion acquisition of Techem by Partners Group and a consortium of minority investors including GIC, TPG Rise Climate and Mubadala - Investindustrial's
$2.9 billion - Atlas Holding's
$1.0 billion - Goodyear Tire & Rubber's
$650 million - Locusview's
$525 million - Audi Group's sale of a majority stake in Italdesign to UST Global
- Apollo's acquisition of Prosol Group
- 3Cloud's acquisition by Cognizant
Lazard provides tailored advice, expertise and access to a broad universe of capital providers through our Private Capital Advisory and Capital Solutions practices. Private equity assignments include advising CVC Capital Partners on multiple engagements, Odyssey Investment Partners on a continuation fund, and advising on the closing of EIR Partner's Fund III. In addition, capital structure and debt raising assignments include Lighthouse, NeXtwind, and Ørsted.
Lazard's preeminent restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving Anastasia Beverly Hills, Bourbon, First Brands Group, Pine Gate Renewables, and Superior Industries, and creditor roles involving Modivcare, Saks Global, and SI Group. 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 fourth quarter of 2025, Asset Management reported net revenue and adjusted net revenue2 of
Management fees and other revenue, on an adjusted basis2, were
Incentive fees on an adjusted basis2 were
Average assets under management (AUM) was
For the full year of 2025, Asset Management net revenue and adjusted net revenue2 were
Management fees and other revenue, on an adjusted basis2, were
Incentive fees on an adjusted basis2 were
Average AUM for the full year of 2025 was
OPERATING EXPENSES
Compensation and Benefits Expense
For the fourth quarter of 2025, compensation and benefits expense on a
For the full year of 2025, 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 fourth quarter of 2025, non-compensation expenses on a
The adjusted non-compensation ratio4 was
For the full year of 2025, 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 provision for income taxes on a
The provision for income taxes on a
CAPITAL MANAGEMENT AND BALANCE SHEET
In the fourth quarter of 2025, Lazard returned
In the full year of 2025, Lazard returned
In the fourth quarter of 2025, we repurchased 1.0 million shares at an average price of
On January 28, 2026, Lazard declared a quarterly dividend of
Lazard's financial position remains strong. As of December 31, 2025, our cash and cash equivalents were
ENDNOTES
1 | Revenue per MD is calculated as Financial Advisory adjusted net revenue divided by the average number of Financial Advisory Managing Directors.
|
2 | A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding
|
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 January 29, 2026, to discuss the company's financial results for the fourth quarter and full year of 2025. 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, January 29, 2026, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-839-5109 (toll-free,
ABOUT LAZARD
Founded in 1848, Lazard is the preeminent financial advisory and asset management firm, with operations 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 | ||||||||
December 31, | September 30, | December 31, | September 30, | December 31, | |||||
($ in thousands, except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||
REVENUE | |||||||||
Total revenue | 21 % | 11 % | |||||||
Interest expense | (22,657) | (22,686) | (22,149) | ||||||
Net revenue | 906,721 | 748,078 | 816,869 | 21 % | 11 % | ||||
OPERATING EXPENSES | |||||||||
Compensation and benefits | 637,694 | 498,212 | 534,423 | 28 % | 19 % | ||||
Occupancy and equipment | 31,579 | 31,908 | 33,798 | ||||||
Marketing and business development | 35,077 | 26,085 | 28,572 | ||||||
Technology and information services | 48,845 | 48,862 | 47,573 | ||||||
Professional services | 23,708 | 20,951 | 23,954 | ||||||
Fund administration and outsourced services | 33,077 | 32,390 | 25,923 | ||||||
Other | 10,418 | 14,886 | 23,779 | ||||||
Non-compensation expenses | 182,704 | 175,082 | 183,599 | 4 % | – % | ||||
Provision (benefit) pursuant to tax receivable agreement | 1,371 | (20,146) | (8,237) | ||||||
Operating expenses | 821,769 | 653,148 | 709,785 | 26 % | 16 % | ||||
Operating income | 84,952 | 94,930 | 107,084 | (11 %) | (21 %) | ||||
Provision for income taxes | 30,738 | 21,430 | 28,788 | 43 % | 7 % | ||||
Net income | 54,214 | 73,500 | 78,296 | (26 %) | (31 %) | ||||
Net income (loss) attributable to noncontrolling interests | 4,351 | 2,253 | (8,014) | ||||||
Net income attributable to Lazard, Inc. | (30 %) | (42 %) | |||||||
Attributable to Lazard, Inc. Common Stockholders: | |||||||||
Weighted average shares outstanding: | |||||||||
Basic | 99,014,231 | 98,112,393 | 94,783,104 | 1 % | 4 % | ||||
Diluted | 107,610,166 | 108,001,762 | 106,113,813 | – % | 1 % | ||||
Net income per share: | |||||||||
Basic | (31 %) | (45 %) | |||||||
Diluted | (31 %) | (44 %) | |||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (
| |||||
Year Ended | |||||
December 31, | December 31, | ||||
($ in thousands, except per share data) | 2025 | 2024 | % Change | ||
REVENUE | |||||
Total revenue | 1 % | ||||
Interest expense | (87,619) | (88,067) | |||
Net revenue | 3,098,847 | 3,051,837 | 2 % | ||
OPERATING EXPENSES | |||||
Compensation and benefits | 2,085,384 | 2,003,212 | 4 % | ||
Occupancy and equipment | 132,603 | 132,935 | |||
Marketing and business development | 118,486 | 99,446 | |||
Technology and information services | 193,195 | 183,524 | |||
Professional services | 88,085 | 87,109 | |||
Fund administration and outsourced services | 122,066 | 107,173 | |||
Other | 50,205 | 60,203 | |||
Non-compensation expenses | 704,640 | 670,390 | 5 % | ||
Benefit pursuant to tax receivable agreement | (18,775) | (8,237) | |||
Operating expenses | 2,771,249 | 2,665,365 | 4 % | ||
Operating income | 327,598 | 386,472 | (15 %) | ||
Provision for income taxes | 76,578 | 99,764 | (23 %) | ||
Net income | 251,020 | 286,708 | (12 %) | ||
Net income attributable to noncontrolling interests | 14,189 | 6,796 | |||
Net income attributable to Lazard, Inc. | (15 %) | ||||
Attributable to Lazard, Inc. Common Stockholders: | |||||
Weighted average shares outstanding: | |||||
Basic | 97,479,092 | 93,139,352 | 5 % | ||
Diluted | 106,338,079 | 102,392,171 | 4 % | ||
Net income per share: | |||||
Basic | (19 %) | ||||
Diluted | (19 %) | ||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (
| |||
As of | |||
December 31, | December 31, | ||
($ in thousands) | 2025 | 2024 | |
ASSETS | |||
Cash and cash equivalents | |||
Deposits with banks and short-term investments | 167,134 | 268,684 | |
Restricted cash | 34,021 | 32,466 | |
Receivables | 897,786 | 753,623 | |
Investments | 625,846 | 614,947 | |
Property | 168,005 | 160,402 | |
Operating lease right-of-use assets | 412,584 | 434,938 | |
Goodwill and other intangible assets | 395,262 | 393,575 | |
Deferred tax assets | 459,087 | 479,582 | |
Other assets | 311,593 | 347,558 | |
Total Assets | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY | |||
Liabilities | |||
Deposits and other customer payables | |||
Accrued compensation and benefits | 794,754 | 844,953 | |
Operating lease liabilities | 485,149 | 505,483 | |
Senior debt | 1,688,086 | 1,687,052 | |
Other liabilities | 652,763 | 683,509 | |
Total liabilities | 3,951,604 | 4,029,210 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 78,379 | 79,629 | |
Stockholders' equity | |||
Preferred stock, par value | – | – | |
Common stock, par value | 1,117 | 1,128 | |
Additional paid-in capital | 340,351 | 327,810 | |
Retained earnings | 1,488,107 | 1,472,113 | |
Accumulated other comprehensive loss, net of tax | (271,509) | (326,742) | |
Subtotal | 1,558,066 | 1,474,309 | |
Common stock held in treasury, at cost | (684,411) | (838,069) | |
Total Lazard, Inc. stockholders' equity | 873,655 | 636,240 | |
Noncontrolling interests | 37,096 | 48,914 | |
Total stockholders' equity | 910,751 | 685,154 | |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | |||
SELECTED SUMMARY FINANCIAL INFORMATION (Adjusted Basis - Non-GAAP - unaudited)
| |||||||||
Three Months Ended | % Change From | ||||||||
December 31, | September 30, | December 31, | September 30, | December 31, | |||||
($ in thousands, except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||
Net Revenue: | |||||||||
Financial Advisory | 28 % | 7 % | |||||||
Asset Management | 338,589 | 294,189 | 287,211 | 15 % | 18 % | ||||
Corporate | 11,892 | 8,185 | 17,550 | 45 % | (32 %) | ||||
Adjusted net revenue | 23 % | 10 % | |||||||
Expenses: | |||||||||
Adjusted compensation and benefits expense | 23 % | 10 % | |||||||
Adjusted compensation ratio (a) | 65.5 % | 65.5 % | 65.6 % | ||||||
Adjusted non-compensation expenses | 7 % | 3 % | |||||||
Adjusted non-compensation ratio (b) | 17.8 % | 20.5 % | 19.0 % | ||||||
Earnings: | |||||||||
Adjusted operating income | 47 % | 18 % | |||||||
Adjusted operating margin (c) | 16.7 % | 14.0 % | 15.5 % | ||||||
Adjusted net income | 43 % | 5 % | |||||||
Adjusted diluted net income per share | 43 % | 3 % | |||||||
Adjusted diluted weighted average shares (d) | 111,064,073 | 110,354,682 | 108,357,556 | 1 % | 2 % | ||||
Adjusted effective tax rate (e) | 29.5 % | 21.4 % | 18.1 % | ||||||
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 |
SELECTED SUMMARY FINANCIAL INFORMATION (Adjusted Basis - Non-GAAP - unaudited)
| |||||
Year Ended | |||||
December 31, | December 31, | ||||
($ in thousands, except per share data) | 2025 | 2024 | % Change | ||
Net Revenue: | |||||
Financial Advisory | 5 % | ||||
Asset Management | 1,165,763 | 1,099,874 | 6 % | ||
Corporate | 39,241 | 58,631 | (33 %) | ||
Adjusted net revenue | 5 % | ||||
Expenses: | |||||
Adjusted compensation and benefits expense | 4 % | ||||
Adjusted compensation ratio (a) | 65.5 % | 65.9 % | |||
Adjusted non-compensation expenses | 7 % | ||||
Adjusted non-compensation ratio (b) | 20.2 % | 19.9 % | |||
Earnings: | |||||
Adjusted operating income | 5 % | ||||
Adjusted operating margin (c) | 14.3 % | 14.2 % | |||
Adjusted net income | 9 % | ||||
Adjusted diluted net income per share | 4 % | ||||
Adjusted diluted weighted average shares (d) | 108,947,912 | 104,398,248 | 4 % | ||
Adjusted effective tax rate (e) | 22.7 % | 24.4 % | |||
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 |
COMPENSATION AND BENEFITS EXPENSE - ANALYSIS (Adjusted Basis - Non-GAAP - unaudited)
| ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
($ in millions) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||
Base salary | ||||||||||||||||
Benefits and other | 396 | 345 | 291 | 293 | 287 | 228 | 258 | |||||||||
Current cash incentive compensation (f) | 583 | 587 | 365 | 458 | 662 | 435 | 391 | |||||||||
Total cash compensation, benefits and other | 1,558 | 1,479 | 1,213 | 1,286 | 1,436 | 1,118 | 1,096 | |||||||||
Amortization of deferred incentive awards | 427 | 424 | 489 | 371 | 400 | 384 | 368 | |||||||||
Adjusted compensation and benefits expense | ||||||||||||||||
Adjusted compensation ratio (a) | 65.5 % | 65.9 % | 69.8 % | 59.8 % | 58.5 % | 59.5 % | 57.5 % | |||||||||
Memo: | ||||||||||||||||
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 |
ASSETS UNDER MANAGEMENT (unaudited)
| |||||||||
As of | % Change From | ||||||||
December 31, | September 30, | December 31, | September 30, | December 31, | |||||
($ in millions) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||
Equity: | |||||||||
Emerging Markets | 9.0 % | 47.2 % | |||||||
Global | 69,192 | 66,695 | 49,058 | 3.7 % | 41.0 % | ||||
Local | 36,973 | 52,445 | 49,750 | (29.5 %) | (25.7 %) | ||||
Multi-Regional | 51,970 | 51,633 | 48,204 | 0.7 % | 7.8 % | ||||
Total Equity | 199,256 | 208,510 | 174,938 | (4.4 %) | 13.9 % | ||||
Fixed Income: | |||||||||
Emerging Markets | 4,856 | 5,191 | 6,919 | (6.5 %) | (29.8 %) | ||||
Global | 12,038 | 12,625 | 11,138 | (4.6 %) | 8.1 % | ||||
Local | 5,166 | 5,268 | 5,617 | (1.9 %) | (8.0 %) | ||||
Multi-Regional | 23,582 | 24,102 | 19,612 | (2.2 %) | 20.2 % | ||||
Total Fixed Income | 45,642 | 47,186 | 43,286 | (3.3 %) | 5.4 % | ||||
Alternative Investments | 3,842 | 3,616 | 2,917 | 6.3 % | 31.7 % | ||||
Private Wealth Alternative Investments | 3,343 | 3,163 | 3,097 | 5.7 % | 7.9 % | ||||
Private Equity | 1,576 | 1,477 | 1,514 | 6.7 % | 4.1 % | ||||
Cash Management | 641 | 585 | 569 | 9.6 % | 12.7 % | ||||
Total AUM | (3.9 %) | 12.4 % | |||||||
Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||
2025 | 2025 | 2024 | 2025 | 2024 | |||||
AUM - Beginning of Period | |||||||||
Net Flows | (19,713) | 4,575 | (10,068) | (18,120) | (35,676) | ||||
Market and foreign exchange | |||||||||
appreciation (depreciation) | 9,476 | 11,602 | (11,268) | 46,099 | 15,346 | ||||
AUM - End of Period | |||||||||
Average AUM | |||||||||
% Change in Average AUM | 1.4 % | 11.7 % | 1.6 % | ||||||
Note: Average AUM generally represents the average of the monthly ending AUM balances for the period. |
RECONCILIATION OF (unaudited)
| ||||||||||
Three Months Ended | Year Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
($ in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||
Net Revenue | ||||||||||
Financial Advisory net revenue - | ||||||||||
Adjustments: | ||||||||||
Reimbursable deal costs, provision for credit losses and other (g) | (601) | (5,061) | (12,780) | (9,433) | (25,764) | |||||
Interest expense (credit) (h) | (74) | 5 | 1 | (61) | 43 | |||||
Losses associated with cost-saving initiatives (i) | – | – | – | – | 587 | |||||
Adjusted Financial Advisory net revenue | ||||||||||
Asset Management net revenue - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (j) | (7,432) | (12,765) | (8,893) | (32,272) | (22,214) | |||||
Distribution fees and other (g) | (21,102) | (20,083) | (16,038) | (76,712) | (64,901) | |||||
Interest expense (h) | 4 | 8 | 6 | 21 | 12 | |||||
Adjusted Asset Management net revenue | ||||||||||
Corporate net revenue - | ( | ( | ( | ( | ||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (j) | (4,312) | (3,327) | 2,476 | (13,575) | (7,339) | |||||
(Gains) losses related to Lazard Fund Interests ("LFI") and similar arrangements (k) | (3,749) | (4,823) | 8,728 | (24,324) | (16,176) | |||||
Interest expense (h) | 22,654 | 22,621 | 22,064 | 87,322 | 87,740 | |||||
Gain on sale of property (l) | – | – | – | – | (114,271) | |||||
Adjusted Corporate net revenue | ||||||||||
Net revenue - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (j) | (11,744) | (16,092) | (6,417) | (45,847) | (29,553) | |||||
(Gains) losses related to Lazard Fund Interests ("LFI") and similar arrangements (k) | (3,749) | (4,823) | 8,728 | (24,324) | (16,176) | |||||
Distribution fees, reimbursable deal costs, provision for credit losses and other (g) | (21,703) | (25,144) | (28,818) | (86,145) | (90,665) | |||||
Interest expense (h) | 22,584 | 22,634 | 22,071 | 87,282 | 87,795 | |||||
Losses associated with cost-saving initiatives (i) | – | – | – | – | 587 | |||||
Gain on sale of property (l) | – | – | – | – | (114,271) | |||||
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 | Year Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
($ in thousands, except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||
Compensation and Benefits Expense | ||||||||||
Compensation and benefits expense - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (j) | (5,310) | (12,594) | (13,707) | (26,081) | (19,961) | |||||
(Charges) credits pertaining to LFI and similar arrangements (m) | (3,749) | (4,823) | 8,728 | (24,324) | (16,176) | |||||
Expenses associated with senior management transition (n) | (43,976) | (6,148) | – | (50,124) | – | |||||
Expenses associated with cost-saving initiatives | – | – | – | – | (46,610) | |||||
Expenses associated with sale of property (o) | – | – | 3,119 | – | (17,002) | |||||
Adjusted compensation and benefits expense | ||||||||||
Non-Compensation Expenses | ||||||||||
Non-compensation expenses - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (j) | (2,085) | (1,246) | (726) | (5,582) | (2,805) | |||||
Distribution fees, reimbursable deal costs, provision for credit losses and other (g) | (21,703) | (25,144) | (28,818) | (86,145) | (90,665) | |||||
Amortization and other acquisition-related costs | (26) | (27) | (53) | (105) | (242) | |||||
Expenses associated with cost-saving initiatives | – | – | – | – | (1,532) | |||||
Adjusted non-compensation expenses | ||||||||||
Operating Income | ||||||||||
Operating income - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (j) | (4,349) | (2,252) | 8,016 | (14,184) | (6,787) | |||||
Interest expense (h) | 22,584 | 22,634 | 22,071 | 87,282 | 87,795 | |||||
Amortization and other acquisition-related costs | 26 | 27 | 53 | 105 | 242 | |||||
Expenses associated with senior management transition (n) | 43,976 | 6,148 | – | 50,124 | – | |||||
Losses associated with cost-saving initiatives (i) | – | – | – | – | 587 | |||||
Expenses associated with cost-saving initiatives | – | – | – | – | 48,142 | |||||
Gain on sale of property (l) | – | – | – | – | (114,271) | |||||
Expenses associated with sale of property (o) | – | – | (3,119) | – | 17,002 | |||||
Provision (benefit) pursuant to tax receivable agreement obligation ("TRA") (p) | 1,371 | (20,146) | (8,237) | (18,775) | (8,237) | |||||
Adjusted operating income | ||||||||||
Provision for Income Taxes | ||||||||||
Provision for income taxes - | ||||||||||
Adjustment: | ||||||||||
Tax effect of adjustments | 6,439 | (4,623) | (9,975) | 1,816 | (20,972) | |||||
Adjusted provision for income taxes | ||||||||||
Net Income attributable to Lazard, Inc. | ||||||||||
Net income attributable to Lazard, Inc. - | ||||||||||
Adjustments: | ||||||||||
Expenses associated with senior management transition (n) | 43,976 | 6,148 | – | 50,124 | – | |||||
Losses associated with cost-saving initiatives (i) | – | – | – | – | 587 | |||||
Expenses associated with cost-saving initiatives | – | – | – | – | 48,142 | |||||
Gain on sale of property (l) | – | – | – | – | (114,271) | |||||
Expenses associated with sale of property (o) | – | – | (3,119) | – | 17,002 | |||||
Provision (benefit) pursuant to tax receivable agreement obligation ("TRA") (p) | 1,371 | (20,146) | (8,237) | (18,775) | (8,237) | |||||
Noncontrolling interests effect of adjustments | – | – | – | – | 3 | |||||
Tax effect of adjustments | (6,439) | 4,623 | 9,975 | (1,816) | 20,972 | |||||
Adjusted net income | ||||||||||
Diluted Weighted Average Shares Outstanding | ||||||||||
Diluted weighted average shares outstanding - | 107,610,166 | 108,001,762 | 106,113,813 | 106,338,079 | 102,392,171 | |||||
Adjustment: | ||||||||||
Participating securities including profits interest participation rights and other | 3,453,907 | 2,352,920 | 2,243,743 | 2,609,833 | 2,006,077 | |||||
Adjusted diluted weighted average shares outstanding (d) | 111,064,073 | 110,354,682 | 108,357,556 | 108,947,912 | 104,398,248 | |||||
Diluted Net Income per Share | ||||||||||
Diluted net income per share - | ||||||||||
Diluted net income effect of adjustments | 0.35 | (0.09) | (0.02) | 0.27 | (0.34) | |||||
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 | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||
($ in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||
Non-compensation expenses - | |||||||||
Occupancy and equipment | |||||||||
Marketing and business development | 35,077 | 26,085 | 28,572 | 118,486 | 99,446 | ||||
Technology and information services | 48,845 | 48,862 | 47,573 | 193,195 | 183,524 | ||||
Professional services | 23,708 | 20,951 | 23,954 | 88,085 | 87,109 | ||||
Fund administration and outsourced services | 33,077 | 32,390 | 25,923 | 122,066 | 107,173 | ||||
Other | 10,418 | 14,886 | 23,779 | 50,205 | 60,203 | ||||
Non-compensation expenses - | |||||||||
Non-compensation expenses - Adjustments: | |||||||||
Occupancy and equipment (j) | ( | ( | ( | ( | ( | ||||
Marketing and business development (g) (j) | (5,885) | (3,989) | (4,501) | (16,563) | (12,588) | ||||
Technology and information services (g) (j) | (52) | (39) | (30) | (154) | (180) | ||||
Professional services (g) (j) | (1,310) | (957) | (1,368) | (4,934) | (4,596) | ||||
Fund administration and outsourced services (g) (j) | (19,121) | (18,814) | (14,942) | (71,522) | (62,226) | ||||
Other (g) (j) | 2,653 | (2,520) | (8,662) | 1,728 | (13,805) | ||||
Non-compensation expenses - Adjustments | ( | ( | ( | ( | ( | ||||
Adjusted non-compensation expenses: | |||||||||
Occupancy and equipment | |||||||||
Marketing and business development | 29,192 | 22,096 | 24,071 | 101,923 | 86,858 | ||||
Technology and information services | 48,793 | 48,823 | 47,543 | 193,041 | 183,344 | ||||
Professional services | 22,398 | 19,994 | 22,586 | 83,151 | 82,513 | ||||
Fund administration and outsourced services | 13,956 | 13,576 | 10,980 | 50,544 | 44,947 | ||||
Other | 13,071 | 12,366 | 15,117 | 51,933 | 46,398 | ||||
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, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights may be excluded from the computations to | |||||||||
(e) | A non-GAAP measure which represents the adjusted provision for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs. | |||||||||
Three Months Ended | Year Ended | |||||||||
($ in thousands) | December 31, | September 30, | December 31, | December 31, | December 31, | |||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||
Adjusted provision for income taxes | ||||||||||
Adjusted operating income less interest expense, amortization and other acquisition-related costs | ||||||||||
Adjusted effective tax rate | 29.5 % | 21.4 % | 18.1 % | 22.7 % | 24.4 % | |||||
(f) | Current cash incentive compensation is composed of cash bonuses for a given year which are paid early in the following year, and for which no future service is required. | |||||||||
(g) | Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs, and provision for credit losses relating to fees and other receivables that are deemed uncollectible, for which an equal amount is excluded for purposes of determining adjusted non-compensation expenses and included for purposes of determining adjusted net revenue. | |||||||||
(h) | Interest expense (credit), excluding interest expense incurred by Lazard Frères Banque SA ("LFB"), is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business. | |||||||||
(i) | Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, primarily consisting of the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss. | |||||||||
(j) | (Revenue) loss and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts. | |||||||||
(k) | Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation and benefits expense. | |||||||||
(l) | Represents gain on the sale of an owned office building. | |||||||||
(m) | Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue. | |||||||||
(n) | Represents expenses associated with the departure of certain executive officers. | |||||||||
(o) | Represents estimated statutory profit-sharing expenses associated with the sale of an owned office building. | |||||||||
(p) | Represents the effect of the periodic revaluation of the TRA liability. | |||||||||
Media Contact: | Shannon | +1 212 632 6880 | |
Investor Contact: | Alexandra Deignan | +1 212 632 6886 |
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SOURCE Lazard
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