Lazard Reports Second Quarter and First Half 2025 Results

• Financial Advisory reported record adjusted net revenue for the second quarter up 20% year over year and driven by robust activity in Europe
  
  
  
  
• Asset Management reported positive net flows in the second quarter and AUM of $248 billion as of June 30, 2025
  
  
  
  
• Financial Advisory hired 14 Managing Directors year to date, underscoring success in attracting world-class talent to support long-term growth

NEW YORK--(BUSINESS WIRE)-- Lazard, Inc. (NYSE: LAZ) today reported net revenue of $796 million and adjusted net revenue¹ of $770 million for the quarter ended June 30, 2025. For the first half of 2025, Lazard reported net revenue of $1,444 million and adjusted net revenue¹ of $1,413 million.

On both a U.S. GAAP and an adjusted basis¹, Lazard reported second quarter 2025 net income of $55 million or $0.52 per share, diluted. For the first half of 2025, on both a U.S. GAAP and an adjusted basis¹, net income was $116 million or $1.08 per share, diluted.

“Lazard reported another quarter of strong performance across the firm,” said Peter R. Orszag, CEO and Chairman. “Our Financial Advisory business delivered record revenue for the second quarter and first half of the year. Asset Management achieved positive net flows in the quarter and record gross inflows for the first half of the year, demonstrating progress towards our goal for this year to serve as an inflection point for the business. Firm-wide, high levels of client engagement continue.”

(Selected results, $ in millions,	Three Months Ended						Six Months Ended
except per share data and AUM)	June 30,						June 30,
U.S. GAAP Financial Measures	2025		2024		% ’25-’24		2025		2024		% ’25-’24
Net Revenue	$796		$685		16%		$1,444		$1,450		–%
Financial Advisory	$497		$411		21%		$865		$865		–%
Asset Management	$292		$285		2%		$581		$581		–%
Net Income	$55		$50		11%		$116		$86		35%
Per share, diluted	$0.52		$0.49		6%		$1.08		$0.84		29%
Adjusted Financial Measures1
Net Revenue	$770		$685		12%		$1,413		$1,431		(1%)
Financial Advisory	$491		$408		20%		$861		$855		1%
Asset Management	$268		$265		1%		$533		$541		(2%)
Net Income	$55		$53		5%		$116		$119		(3%)
Per share, diluted	$0.52		$0.52		–%		$1.08		$1.17		(8%)
Assets Under Management (AUM) ($ in billions)
Ending AUM	$248		$245		2%
Average AUM	$239		$245		(3%)		$235		$246		(5%)
Note: Reconciliations of U.S. GAAP to Adjusted results are shown on pages 13-15. Endnotes are on page 5 of this release.

NET REVENUE

Financial Advisory

For the second quarter of 2025, Financial Advisory reported net revenue and adjusted net revenue¹ of $497 million and $491 million, 21% and 20% higher than the second quarter of 2024, respectively.

For the first half of 2025, Financial Advisory reported net revenue and adjusted net revenue¹ of $865 million and $861 million, in line with and 1% higher than the first half of 2024, respectively.

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 second quarter of 2025, selected highlights include (clients are in italics):

• CD&R’s €16 billion acquisition of a controlling 50% stake in Sanofi consumer health unit, Opella
• Berry Global’s $15.0 billion combination with Amcor
• Ferrero’s $3.1 billion acquisition of WK Kellogg Co
• Roquette Frères’ $2.9 billion acquisition of IFF Pharma Solutions
• Assura’s $2.4 billion recommended combination with Primary Health Properties
• Biotage’s $1.2 billion acquisition by KKR
• L’Oréal’s agreement to acquire Color Wow
• Panama Canal Railway’s sale to APM Terminals

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 Accel-KKR, Hidden Harbor Capital Partners and IDG Capital on continuation funds and Mainsail Partners on the closing of its Fund VII. In addition, Lazard is advising on capital structure and executing debt raises for ZF Friedrichshafen, NeXtWind, and iFIT Health and Fitness.

Lazard’s preeminent restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving Solo Brands, Superior Industries, and Wilbur Ellis, and creditor roles involving Lowell, Franchise Group, Saks Global and Southern Water. 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 second quarter of 2025, Asset Management net revenue and adjusted net revenue¹ were $292 million and $268 million, 2% and 1% higher than the second quarter of 2024, respectively.

Management fees and other revenue, on an adjusted basis¹, were $265 million for the second quarter of 2025, 1% higher than the second quarter of 2024, and 4% higher than the first quarter of 2025.

Incentive fees on an adjusted basis¹ were $4 million for the second quarter of 2025, compared to $3 million for the second quarter of 2024.

Average assets under management (AUM) was $239 billion for the second quarter of 2025, 3% lower than the second quarter of 2024, and 3% higher than the first quarter of 2025.

For the first half of 2025, Asset Management net revenue and adjusted net revenue¹ were $581 million and $533 million, in line with and 2% lower than the first half of 2024, respectively.

Management fees and other revenue, on an adjusted basis¹, were $520 million for the first half of 2025, 2% lower than the first half of 2024.

Incentive fees on an adjusted basis¹ were $13 million for the first half of 2025, compared to $10 million for the first half of 2024.

Average AUM for the first half of 2025 was $235 billion, 5% lower than the first half of 2024. AUM as of June 30, 2025 was $248 billion, 2% higher than June 30, 2024, and 9% higher than March 31, 2025. The sequential change from March 31, 2025 was driven by market appreciation of $11.9 billion, foreign exchange appreciation of $8.4 billion and net inflows of $0.7 billion.

OPERATING EXPENSES

Compensation and Benefits Expense

For the second quarter of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis¹ was $519 million and $504 million, respectively, compared to $453 million and $452 million, respectively, for the second quarter of 2024. The adjusted compensation ratio² for the second quarter of 2025 was 65.5%, compared to the second-quarter 2024 ratio of 66.0%.

For the first half of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis¹ was $949 million and $926 million, respectively, compared to $1,003 million and $945 million, respectively, for the first half of 2024. The adjusted compensation ratio² for the first half of 2025 was 65.5%, compared to the first-half 2024 ratio of 66.0%.

We focus on the adjusted compensation ratio² to manage costs, balancing a view of current conditions in the market for talent alongside our objective to drive long-term shareholder value. Our goal is to deliver an adjusted compensation ratio² of 60% or below, with timing dependent on market conditions.

Non-Compensation Expenses

For the second quarter of 2025, non-compensation expenses on a U.S. GAAP basis were $184 million, 9% higher than the second quarter of 2024. On an adjusted basis¹, non-compensation expenses were $157 million, 6% higher than the second quarter of 2024.

The adjusted non-compensation ratio³ was 20.4% for the second quarter of 2025, compared to 21.7% for the second quarter of 2024.

For the first half of 2025, non-compensation expenses on a U.S. GAAP basis were $347 million, 6% higher than the first half of 2024. On an adjusted basis¹, non-compensation expenses were $305 million, 8% higher than the first half of 2024.

The adjusted non-compensation ratio³ was 21.6% for the first half of 2025, compared to 19.8% for the first half of 2024.

Our goal is to deliver an adjusted non-compensation ratio³ between 16% to 20%, with timing dependent on market conditions.

TAXES

The provision for income taxes on both a U.S. GAAP and an adjusted basis¹ was $32 million for the second quarter of 2025, which equates to an effective tax rate of 34.1% on a U.S. GAAP basis and 36.5% on an adjusted basis¹.

The provision for income taxes on both a U.S. GAAP and an adjusted basis¹ was $24 million for the first half of 2025, which equates to an effective tax rate of 16.5% on a U.S. GAAP basis and 17.4% on an adjusted basis¹.

CAPITAL MANAGEMENT AND BALANCE SHEET

In the second quarter of 2025, Lazard returned $60 million to shareholders, which included: $47 million in dividends; $4 million in repurchases of our common stock; and $9 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

In the first half of 2025, Lazard returned $235 million to shareholders, which included: $92 million in dividends; $40 million in repurchases of our common stock; and $103 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

During the first half of 2025, we repurchased 0.9 million shares at an average price of $46.44. As of June 30, 2025, our total outstanding share repurchase authorization was approximately $160 million.

On July 23, 2025, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on August 15, 2025, to stockholders of record on August 4, 2025.

Lazard’s financial position remains strong. As of June 30, 2025, our cash and cash equivalents were $978 million.

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 U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is a meaningful and useful way to compare our operating results across periods.
2		A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.
3		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 July 24, 2025, to discuss the company’s financial results for the second quarter and first half 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, U.S. and Canada) or +1 785-424-1699 (outside of the U.S. and Canada), 15 minutes prior to the start of the call. Conference ID: LAZQ225.

A replay of the conference call will be available by 10:00 a.m. ET, July 24, 2025, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-839-6911 (toll-free, U.S. and Canada) or +1 402-220-6059 (outside of the U.S. and Canada).

ABOUT LAZARD

Founded in 1848, Lazard is one of the world’s preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” "pipeline," or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements.

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, 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.

LAZ-EPE

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. GAAP - unaudited)
	Three Months Ended									% Change From
	June 30,			March 31,			June 30,			March 31,		June 30,
($ in thousands, except per share data)	2025			2025			2024			2025		2024
Total revenue	$817,160			$669,164			$707,991			22%		15%
Interest expense	(21,163	)		(21,113	)		(22,642	)
Net revenue	795,997			648,051			685,349			23%		16%
Operating expenses:
Compensation and benefits	519,208			430,270			452,560			21%		15%
Occupancy and equipment	33,703			35,413			32,031
Marketing and business development	29,593			27,731			25,493
Technology and information services	49,272			46,216			46,406
Professional services	24,589			18,837			23,734
Fund administration and outsourced services	30,054			26,545			27,114
Other	16,497			8,404			14,371
Non-compensation expenses	183,708			163,146			169,149			13%		9%
Operating expenses	702,916			593,416			621,709			18%		13%
Operating income	93,081			54,635			63,640			70%		46%
Provision (benefit) for income taxes	31,764			(7,354	)		11,587			NM		NM
Net income	61,317			61,989			52,053			(1%)		18%
Net income attributable to noncontrolling interests	5,971			1,614			2,144
Net income attributable to Lazard, Inc.	$55,346			$60,375			$49,909			(8%)		11%
Attributable to Lazard, Inc. Common Stockholders:
Weighted average shares outstanding:
Basic	97,534,319			95,255,423			92,886,364			2%		5%
Diluted	104,911,633			104,828,753			100,627,867			–%		4%
Net income per share:
Basic	$0.56			$0.61			$0.53			(8%)		6%
Diluted	$0.52			$0.56			$0.49			(7%)		6%

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. GAAP - unaudited)
	Six Months Ended
	June 30,			June 30,
($ in thousands, except per share data)	2025			2024			% Change
Total revenue	$1,486,324			$1,493,472			–%
Interest expense	(42,276	)		(43,370	)
Net revenue	1,444,048			1,450,102			–%
Operating expenses:
Compensation and benefits	949,478			1,003,384			(5%)
Occupancy and equipment	69,116			64,888
Marketing and business development	57,324			49,092
Technology and information services	95,488			91,323
Professional services	43,426			43,614
Fund administration and outsourced services	56,599			53,254
Other	24,901			26,346
Non-compensation expenses	346,854			328,517			6%
Operating expenses	1,296,332			1,331,901			(3%)
Operating income	147,716			118,201			25%
Provision for income taxes	24,410			25,924			(6%)
Net income	123,306			92,277			34%
Net income attributable to noncontrolling interests	7,585			6,613
Net income attributable to Lazard, Inc.	$115,721			$85,664			35%
Attributable to Lazard, Inc. Common Stockholders:
Weighted average shares outstanding:
Basic	96,394,871			92,073,414			5%
Diluted	104,870,193			99,989,817			5%
Net income per share:
Basic	$1.17			$0.91			29%
Diluted	$1.08			$0.84			29%

CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL CONDITION
(U.S. GAAP - unaudited)
	As of
	June 30,			December 31,
($ in thousands)	2025			2024
ASSETS
Cash and cash equivalents	$978,259			$1,308,218
Deposits with banks and short-term investments	237,141			268,684
Restricted cash	32,908			32,466
Receivables	754,795			753,623
Investments	637,473			614,947
Property	176,240			160,402
Operating lease right-of-use assets	443,388			434,938
Goodwill and other intangible assets	395,225			393,575
Deferred tax assets	492,254			479,582
Other assets	345,703			347,558
Total Assets	$4,493,386			$4,793,993
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS’ EQUITY
Liabilities
Deposits and other customer payables	$400,328			$308,213
Accrued compensation and benefits	391,048			844,953
Operating lease liabilities	518,172			505,483
Tax receivable agreement obligation	75,826			75,899
Senior debt	1,688,631			1,687,052
Other liabilities	549,319			607,610
Total liabilities	3,623,324			4,029,210
Commitments and contingencies
Redeemable noncontrolling interests	83,578			79,629
Stockholders’ equity
Preferred stock, par value $.01 per share	–			–
Common stock, par value $.01 per share	1,128			1,128
Additional paid-in capital	225,058			327,810
Retained earnings	1,477,618			1,472,113
Accumulated other comprehensive loss, net of tax	(268,903	)		(326,742	)
Subtotal	1,434,901			1,474,309
Common stock held by subsidiaries, at cost	(693,298	)		(838,069	)
Total Lazard, Inc. stockholders’ equity	741,603			636,240
Noncontrolling interests	44,881			48,914
Total stockholders’ equity	786,484			685,154
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$4,493,386			$4,793,993

SELECTED SUMMARY FINANCIAL INFORMATION (a)
(Adjusted Basis - Non-GAAP - unaudited)
	Three Months Ended									% Change From
	June 30,			March 31,			June 30,			March 31,		June 30,
($ in thousands, except per share data)	2025			2025			2024			2025		2024
Net Revenue:
Financial Advisory	$491,359			$369,543			$407,936			33%		20%
Asset Management	268,491			264,494			265,219			2%		1%
Corporate	10,016			9,148			11,487			9%		(13%)
Adjusted net revenue	$769,866			$643,185			$684,642			20%		12%
Expenses:
Adjusted compensation and benefits expense	$504,263			$421,286			$451,864			20%		12%
Adjusted compensation ratio (b)	65.5	%		65.5	%		66.0	%
Adjusted non-compensation expenses	$157,371			$147,882			$148,612			6%		6%
Adjusted non-compensation ratio (c)	20.4	%		23.0	%		21.7	%
Earnings:
Adjusted operating income	$108,232			$74,017			$84,166			46%		29%
Adjusted operating margin (d)	14.1	%		11.5	%		12.3	%
Adjusted net income	$55,346			$60,375			$52,869			(8%)		5%
Adjusted diluted net income per share	$0.52			$0.56			$0.52			(7%)		–%
Adjusted diluted weighted average shares (e)	106,696,656			107,676,233			102,188,981			(1%)		4%
Adjusted effective tax rate (f)	36.5	%		(13.9	%)		14.0	%

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 U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules.

See Notes to Financial Schedules

SELECTED SUMMARY FINANCIAL INFORMATION (a)
(Adjusted Basis - Non-GAAP - unaudited)
	Six Months Ended
	June 30,			June 30,
($ in thousands, except per share data)	2025			2024			% Change
Net Revenue:
Financial Advisory	$860,902			$854,570			1%
Asset Management	532,985			541,153			(2%)
Corporate	19,164			35,484			(46%)
Adjusted net revenue	$1,413,051			$1,431,207			(1%)
Expenses:
Adjusted compensation and benefits expense	$925,549			$944,597			(2%)
Adjusted compensation ratio (b)	65.5	%		66.0	%
Adjusted non-compensation expenses	$305,253			$282,905			8%
Adjusted non-compensation ratio (c)	21.6	%		19.8	%
Earnings:
Adjusted operating income	$182,249			$203,705			(11%)
Adjusted operating margin (d)	12.9	%		14.2	%
Adjusted net income	$115,721			$119,475			(3%)
Adjusted diluted net income per share	$1.08			$1.17			(8%)
Adjusted diluted weighted average shares (e)	107,186,445			101,860,599			5%
Adjusted effective tax rate (f)	17.4	%		25.5	%

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 U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules.

See Notes to Financial Schedules

ASSETS UNDER MANAGEMENT
(unaudited)
	As of								% Change From
	June 30,		March 31,			December 31,			March 31,			December 31,
($ in millions)	2025		2025			2024			2025			2024
Equity:
Emerging Markets	$33,102		$28,830			$27,926			14.8%			18.5%
Global	61,166		49,886			49,058			22.6%			24.7%
Local	49,528		46,415			49,750			6.7%			(0.4%)
Multi-Regional	48,454		48,999			48,204			(1.1%)			0.5%
Total Equity	192,250		174,130			174,938			10.4%			9.9%
Fixed Income:
Emerging Markets	5,113		5,130			6,919			(0.3%)			(26.1%)
Global	13,411		11,223			11,138			19.5%			20.4%
Local	5,546		5,637			5,617			(1.6%)			(1.3%)
Multi-Regional	22,987		22,034			19,612			4.3%			17.2%
Total Fixed Income	47,057		44,024			43,286			6.9%			8.7%
Alternative Investments	3,512		3,132			2,917			12.1%			20.4%
Private Wealth Alternative Investments	3,103		3,116			3,097			(0.4%)			0.2%
Private Equity	1,508		1,500			1,514			0.5%			(0.4%)
Cash Management	930		1,525			569			(39.0%)			63.4%
Total AUM	$248,360		$227,427			$226,321			9.2%			9.7%
	Three Months Ended								Six Months Ended
	June 30,		March 31,			June 30,			June 30,			June 30,
	2025		2025			2024			2025			2024
AUM - Beginning of Period	$227,427		$226,321			$250,432			$226,321			$246,651
Net Flows	677		(3,659	)		(6,599	)		(2,982	)		(13,229	)
Market and foreign exchange
appreciation	20,256		4,765			837			25,021			11,248
AUM - End of Period	$248,360		$227,427			$244,670			$248,360			$244,670
Average AUM	$238,552		$230,787			$245,302			$234,620			$246,126
% Change in Average AUM			3.4	%		(2.8	%)					(4.7	%)
Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)
(unaudited)
		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
($ in thousands)		2025			2025			2024			2025			2024
Net Revenue
Financial Advisory net revenue - U.S. GAAP Basis		$497,306			$367,359			$411,308			$864,665			$864,815
Adjustments:
	Reimbursable deal costs, (provision) benefit for credit losses and other (g)	(5,952	)		2,181			(3,372	)		(3,771	)		(10,873	)
	Interest expense (h)	5			3			–			8			41
	Losses associated with cost-saving initiatives (i)	–			–			–			–			587
Adjusted Financial Advisory net revenue		$491,359			$369,543			$407,936			$860,902			$854,570
Asset Management net revenue - U.S. GAAP Basis		$292,478			$288,100			$285,487			$580,578			$580,963
Adjustments:
	Revenue related to noncontrolling interests and similar arrangements (j)	(5,225	)		(6,850	)		(4,054	)		(12,075	)		(8,151	)
	Distribution fees and other (g)	(18,765	)		(16,762	)		(16,216	)		(35,527	)		(31,664	)
	Interest expense (h)	3			6			2			9			5
Adjusted Asset Management net revenue		$268,491			$264,494			$265,219			$532,985			$541,153
Corporate net revenue - U.S. GAAP Basis		$6,213			($7,408	)		($11,446	)		($1,195	)		$4,324
Adjustments:
	(Revenue) loss related to noncontrolling interests and similar arrangements (j)	(6,775	)		839			(866	)		(5,936	)		(3,872	)
	(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements (k)	(10,509	)		(5,243	)		1,201			(15,752	)		(8,172	)
	Interest expense (h)	21,087			20,960			22,598			42,047			43,204
Adjusted Corporate net revenue		$10,016			$9,148			$11,487			$19,164			$35,484
Net revenue - U.S. GAAP Basis		$795,997			$648,051			$685,349			$1,444,048			$1,450,102
Adjustments:
	Revenue related to noncontrolling interests and similar arrangements (j)	(12,000	)		(6,011	)		(4,920	)		(18,011	)		(12,023	)
	(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements (k)	(10,509	)		(5,243	)		1,201			(15,752	)		(8,172	)
	Distribution fees, reimbursable deal costs, provision for credit losses and other (g)	(24,717	)		(14,581	)		(19,588	)		(39,298	)		(42,537	)
	Interest expense (h)	21,095			20,969			22,600			42,064			43,250
	Losses associated with cost-saving initiatives (i)	–			–			–			–			587
Adjusted net revenue		$769,866			$643,185			$684,642			$1,413,051			$1,431,207

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 U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)
(unaudited)
		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
($ in thousands, except per share data)		2025			2025			2024			2025			2024
Compensation and Benefits Expense
Compensation and benefits expense - U.S. GAAP Basis		$519,208			$430,270			$452,560			$949,478			$1,003,384
Adjustments:
	Compensation and benefits expense related to noncontrolling interests and similar arrangements (j)	(4,436	)		(3,741	)		(1,897	)		(8,177	)		(4,005	)
	(Charges) credits pertaining to LFI and other similar arrangements (l)	(10,509	)		(5,243	)		1,201			(15,752	)		(8,172	)
	Expenses associated with cost-saving initiatives	–			–			–			–			(46,610	)
Adjusted compensation and benefits expense		$504,263			$421,286			$451,864			$925,549			$944,597
Non-Compensation Expenses
Non-compensation expenses - U.S. GAAP Basis		$183,708			$163,146			$169,149			$346,854			$328,517
Adjustments:
	Non-compensation expenses related to noncontrolling interests and similar arrangements (j)	(1,594	)		(657	)		(881	)		(2,251	)		(1,407	)
	Distribution fees, reimbursable deal costs, provision for credit losses and other (g)	(24,717	)		(14,581	)		(19,588	)		(39,298	)		(42,537	)
	Amortization and other acquisition-related costs	(26	)		(26	)		(68	)		(52	)		(136	)
	Expenses associated with cost-saving initiatives	–			–			–			–			(1,532	)
Adjusted non-compensation expenses		$157,371			$147,882			$148,612			$305,253			$282,905
Operating Income
Operating income - U.S. GAAP Basis		$93,081			$54,635			$63,640			$147,716			$118,201
Adjustments:
	Operating income related to noncontrolling interests and similar arrangements (j)	(5,970	)		(1,613	)		(2,142	)		(7,583	)		(6,611	)
	Interest expense (h)	21,095			20,969			22,600			42,064			43,250
	Amortization and other acquisition-related costs	26			26			68			52			136
	Losses associated with cost-saving initiatives (i)	–			–			–			–			587
	Expenses associated with cost-saving initiatives	–			–			–			–			48,142
Adjusted operating income		$108,232			$74,017			$84,166			$182,249			$203,705
Provision (Benefit) for Income Taxes
Provision (benefit) for income taxes - U.S. GAAP Basis		$31,764			($7,354	)		$11,587			$24,410			$25,924
Adjustment:
	Tax effect of adjustments	–			–			(2,960	)		–			14,918
Adjusted provision (benefit) for income taxes		$31,764			($7,354	)		$8,627			$24,410			$40,842
Net Income attributable to Lazard, Inc.
Net income attributable to Lazard, Inc. - U.S. GAAP Basis		$55,346			$60,375			$49,909			$115,721			$85,664
Adjustments:
	Losses associated with cost-saving initiatives (i)	–			–			–			–			587
	Expenses associated with cost-saving initiatives	–			–			–			–			48,142
	Tax effect of adjustments	–			–			2,960			–			(14,918	)
Adjusted net income		$55,346			$60,375			$52,869			$115,721			$119,475
Diluted Weighted Average Shares Outstanding
Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis		104,911,633			104,828,753			100,627,867			104,870,193			99,989,817
Adjustment: participating securities including profits interest participation rights and other		1,785,023			2,847,480			1,561,114			2,316,252			1,870,782
Adjusted Diluted Weighted Average Shares Outstanding (e)		106,696,656			107,676,233			102,188,981			107,186,445			101,860,599
Diluted net income per share:
U.S. GAAP Basis		$0.52			$0.56			$0.49			$1.08			$0.84
Diluted net income effect of adjustments		–			–			0.03			–			0.33
Adjusted Basis		$0.52			$0.56			$0.52			$1.08			$1.17

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 U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF NON-COMPENSATION EXPENSES U.S. GAAP TO ADJUSTED (a)
(unaudited)
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
($ in thousands)	2025			2025			2024			2025			2024
Non-compensation expenses - U.S. GAAP Basis:
Occupancy and equipment	$33,703			$35,413			$32,031			$69,116			$64,888
Marketing and business development	29,593			27,731			25,493			57,324			49,092
Technology and information services	49,272			46,216			46,406			95,488			91,323
Professional services	24,589			18,837			23,734			43,426			43,614
Fund administration and outsourced services	30,054			26,545			27,114			56,599			53,254
Other	16,497			8,404			14,371			24,901			26,346
Non-compensation expenses - U.S. GAAP Basis	$183,708			$163,146			$169,149			$346,854			$328,517
Non-compensation expenses - Adjustments:
Occupancy and equipment (j)	($95	)		($95	)		($95	)		($190	)		($1,668	)
Marketing and business development (g) (j)	(4,032	)		(2,657	)		(2,944	)		(6,689	)		(5,023	)
Technology and information services (g) (j)	(35	)		(28	)		(49	)		(63	)		(84	)
Professional services (g) (j)	(931	)		(1,736	)		(1,085	)		(2,667	)		(1,958	)
Fund administration and outsourced services (g) (j)	(17,744	)		(15,843	)		(15,588	)		(33,587	)		(30,623	)
Other (g) (j)	(3,500	)		5,095			(776	)		1,595			(6,256	)
Subtotal non-compensation expenses adjustments	($26,337	)		($15,264	)		($20,537	)		($41,601	)		($45,612	)
Adjusted non-compensation expenses:
Occupancy and equipment	$33,608			$35,318			$31,936			$68,926			$63,220
Marketing and business development	25,561			25,074			22,549			50,635			44,069
Technology and information services	49,237			46,188			46,357			95,425			91,239
Professional services	23,658			17,101			22,649			40,759			41,656
Fund administration and outsourced services	12,310			10,702			11,526			23,012			22,631
Other	12,997			13,499			13,595			26,496			20,090
Adjusted non-compensation expenses	$157,371			$147,882			$148,612			$305,253			$282,905

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 U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

LAZARD, Inc.

Notes to Financial Schedules

(a)	Selected Summary Financial Information and Reconciliations from U.S. GAAP to Adjusted Results contain non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods.
(b)	A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.
(c)	A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.
(d)	A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue.
(e)	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 computation of outstanding stock equivalents for U.S. GAAP net income per share. In addition, this measure includes the dilutive effect of the weighted average number of shares of common stock issuable from share-based compensation programs.
(f)	A non-GAAP measure which represents the adjusted provision (benefit) for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs.
		Three Months Ended						Six Months Ended
	($ in thousands)	June 30,		March 31,		June 30,		June 30,		June 30,
		2025		2025		2024		2025		2024
	Adjusted provision (benefit) for income taxes	$31,764		($7,354)		$8,627		$24,410		$40,842
	Adjusted operating income less interest expense, amortization and other acquisition-related costs	$87,111		$53,022		$61,496		$140,133		$160,317
	Adjusted effective tax rate	36.5%		(13.9%)		14.0%		17.4%		25.5%
(g)	Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs, and (provision) benefit 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, 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 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.
NM	Not meaningful

 

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Source: Lazard, Inc.