LAZARD REPORTS SECOND QUARTER AND FIRST HALF 2026 RESULTS
Rhea-AI Summary
Lazard (NYSE: LAZ) reported second‑quarter 2026 net revenue of $808 million (up 1% year over year) and adjusted net revenue of $786 million (up 2%). U.S. GAAP net income was $5 million, or $0.03 per diluted share, while adjusted net income was $13 million, or $0.12 per share, both sharply below 2025 levels.
For the first half of 2026, net revenue was $1,564 million (up 8%) and adjusted net revenue $1,459 million (up 3%). GAAP net income was $106 million (EPS $0.94), and adjusted net income $60 million (EPS $0.54). Financial Advisory revenue declined 9% in the quarter, while Asset Management revenue rose 20% with average AUM up 17% to $279 billion and period‑end AUM at a record $285 billion.
The adjusted compensation ratio increased to 69.9%, and the adjusted non‑compensation ratio to 21.8%. Lazard returned $277 million to shareholders in the first half, authorized an additional $200 million in share repurchases (total authorization about $257 million), and declared a quarterly dividend of $0.50 per share.
Positive
- Asset Management net revenue up 20% YoY in Q2 2026
- First‑half 2026 Asset Management net revenue up 31% YoY to $761 million
- Ending AUM $285 billion, up 15% YoY and 10% sequentially
- Positive net flows of $7.4 billion in Asset Management first half 2026
- Capital returned to shareholders $277 million in first half 2026
- New share repurchase authorization $200 million, total authorization about $257 million
- Quarterly dividend of $0.50 per share declared for August 14, 2026
- Cash and cash equivalents of $1,100 million as of June 30, 2026
Negative
- Q2 2026 GAAP net income down 91% YoY to $5 million
- Q2 2026 GAAP diluted EPS down 94% YoY to $0.03
- Q2 2026 adjusted net income down 77% YoY to $13 million
- First‑half 2026 adjusted net income down 49% YoY to $60 million
- Financial Advisory net revenue down 9% YoY in Q2 and 6% in first half 2026
- Adjusted compensation ratio rose to 69.9% from 65.5% year over year
- Adjusted non‑compensation ratio increased to 21.8% in Q2 2026 from 20.4%
- Q2 2026 effective tax rate elevated to 63.5% GAAP and 69.7% adjusted
News Explained
The completed second-quarter report updates Lazard’s liquidity picture with
Sources and calculations
- Lazard second-quarter and first-half 2026 results release (2026-07-23)
- Lazard first-quarter 2026 fundamentals record (2026-03-31)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $1,020,666,000 / ($219,267,000 / 90) = [object Object]
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 13 | LCOE report | Positive | -0.8% | Report identified renewables as the lowest-cost new-build generation source. |
| Jul 13 | AUM update | Positive | -0.8% | Preliminary June AUM reached approximately $284.7 billion with positive first-half net flows. |
| Jul 07 | Board appointment | Positive | -3.6% | Kathy Elsesser joined Lazard's board and assumed a compensation committee role. |
| Jul 02 | Earnings scheduling | Neutral | +0.5% | Lazard scheduled its second-quarter and first-half results release for July 23. |
| Jun 23 | Fund distribution | Positive | -4.3% | LGI confirmed a monthly distribution of $0.15340 per share payable July 22. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history showed negative reactions to three positive Lazard announcements, while the earnings-date notice gained 0.53%.
Key Terms
non-gaap financial
assets under management (aum) financial
effective tax rate financial
deconsolidation financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
On a
"Lazard continues to progress toward our 2030 objectives, with underlying trends reinforcing our confidence in our long-term growth strategy," said Peter R. Orszag, CEO and Chairman. "In Asset Management, we delivered our best first-half net inflows in nearly 20 years and reached record reported AUM, providing clear evidence of the inflection we anticipated. In Financial Advisory, we achieved our strongest announced half-year league table position since 2014, with a variety of forward indicators supporting our view that the investments we made to strengthen our MD talent are shifting from a headwind to a tailwind for productivity and revenue growth."
"We are excited about the momentum and evidence of progress across both of our businesses," said Tracy Farr, CFO. "This quarter's earnings were impacted by an elevated tax rate, which is not indicative of the full-year rate. In addition, as we exit the most substantial period of repositioning our advisory talent, the benefits of our growth investments will increasingly mature into earnings. Combined with our focus on operational efficiency, this supports our path toward long-term profitability and shareholder value."
(Selected results, $ in millions, | Three Months Ended | Six Months Ended | |||||||||
except per share data and AUM) | June 30, | June 30, | |||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||
Net Revenue | 1 % | 8 % | |||||||||
Financial Advisory | (9 %) | (6 %) | |||||||||
Asset Management | 20 % | 31 % | |||||||||
Net Income | (91 %) | (9 %) | |||||||||
Per share, diluted | (94 %) | (13 %) | |||||||||
Adjusted Financial Measures1 | |||||||||||
Net Revenue | 2 % | 3 % | |||||||||
Financial Advisory | (9 %) | (7 %) | |||||||||
Asset Management | 23 % | 20 % | |||||||||
Net Income | (77 %) | (49 %) | |||||||||
Per share, diluted | (77 %) | (50 %) | |||||||||
Assets Under Management (AUM) ($ in billions) | |||||||||||
Ending AUM | 15 % | ||||||||||
Average AUM | 17 % | 16 % | |||||||||
Notes: The effective tax rate for this quarter includes certain anomalous factors, including the effect of the catch-up adjustment from the tax benefit related to the vesting of equity awards in the first quarter, and is not indicative of the expected full-year tax rate.
Reconciliations of
NET REVENUE
Financial Advisory
For the second quarter of 2026, Financial Advisory reported net revenue and adjusted net revenue1 of
For the first half 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 second quarter of 2026, we advised on the largest energy deal in history, NextEra Energy on its combination with Dominion Energy with a combined enterprise value of
In addition, we advised on the following transactions (clients are in italics):
- Altice France's proposed up to
€21.0 billion sale of SFR to Bouygues Telecom, the Free–iliad Group, and Orange - Olin on its
$10.0 billion - SunOpta on its
$1.1 billion sale to Refresco - CVC's acquisition of Irca
- Apollo's acquisition of the Prosol Group
- Network Connex's sale to Olympus Partners
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 Corsair Capital, G Square, and Verdane Capital on continuation funds and advising on the closing of Regal Healthcare's Fund IV and Uplift's Fund I. In addition, Lazard advised Thoreau on fundraising and its investment in Ensemble Health and on financing for Atos, DomusVi, and Loxam.
Lazard's restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving Deutsche Glasfaser, Republic National Distributing Company, Searles Valley Minerals, and Xerox Holdings, and creditor roles involving Dish, Gigaclear, Saks Global, and Trinseo.
In addition, Lazard is the preeminent financial advisor to governments and public sector entities across the world with recent mandates including the Government of
For a list of publicly announced transactions please visit our website or follow Lazard on LinkedIn.
Asset Management
For the second 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
For the first half of 2026, Asset Management net revenue and adjusted net revenue1 were
Management fees on an adjusted basis1 were
Incentive fees on an adjusted basis1 were
Other revenue2 on an adjusted basis1 was
Average AUM for the first half of 2026 was
OPERATING EXPENSES
Compensation and Benefits Expense
For the second quarter of 2026, compensation and benefits expense on a
For the first half 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 second quarter of 2026, non-compensation expenses on a
The adjusted non-compensation ratio4 was
For the first half 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 provision for income taxes on a
The provision for income taxes on a
CAPITAL MANAGEMENT AND BALANCE SHEET
In the second quarter of 2026, Lazard returned
In the first half of 2026, Lazard returned
During the first half of 2026, we repurchased 1.2 million shares at an average price of
On July 22, 2026, Lazard declared a quarterly dividend of
Lazard's financial position remains strong. As of June 30, 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. Other revenue generally consists of commission income, net interest income, and net investment gains/losses.
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 July 23, 2026, to discuss the company's financial results for the second 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, July 23, 2026, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-839-2382 (toll-free,
ABOUT LAZARD
Founded in 1848, Lazard is the preeminent financial advisory and asset management firm, 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. Lazard is listed on the New York Stock Exchange as Lazard, Inc. under the ticker LAZ. For more information, please visit Lazard.com and Lazard on LinkedIn.
Media Contact:
Shannon Houston
+1 212-632-6880
Shannon.Houston@lazard.com
Investor Contact:
William Murdock
+1 212-632-1564
William.Murdock@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, 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 | ||||||||
June 30, | March 31, | June 30, | March 31, | June 30, | |||||
($ in thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||
REVENUE | |||||||||
Total revenue | 7 % | 2 % | |||||||
Interest expense | (22,531) | (22,817) | (21,163) | ||||||
Net revenue | 807,669 | 756,582 | 795,997 | 7 % | 1 % | ||||
OPERATING EXPENSES | |||||||||
Compensation and benefits | 562,409 | 491,894 | 519,208 | 14 % | 8 % | ||||
Occupancy and equipment | 33,807 | 31,420 | 33,703 | ||||||
Marketing and business development | 34,408 | 28,662 | 29,593 | ||||||
Technology and information services | 52,633 | 48,275 | 49,272 | ||||||
Professional services | 32,879 | 20,678 | 24,589 | ||||||
Fund administration and outsourced services | 38,054 | 33,516 | 30,054 | ||||||
Other | 15,876 | 12,563 | 16,497 | ||||||
Non-compensation expenses | 207,657 | 175,114 | 183,708 | 19 % | 13 % | ||||
Operating expenses | 770,066 | 667,008 | 702,916 | 15 % | 10 % | ||||
Operating income | 37,603 | 89,574 | 93,081 | (58 %) | (60 %) | ||||
Provision (benefit) for income taxes | 23,871 | (10,989) | 31,764 | NM | (25 %) | ||||
Net income | 13,732 | 100,563 | 61,317 | (86 %) | (78 %) | ||||
Net income (loss) attributable to noncontrolling interests | 8,924 | (353) | 5,971 | ||||||
Net income attributable to Lazard, Inc. | (95 %) | (91 %) | |||||||
Attributable to Lazard, Inc. Common Stockholders: | |||||||||
Weighted average shares outstanding: | |||||||||
Basic | 101,357,540 | 99,460,256 | 97,534,319 | 2 % | 4 % | ||||
Diluted | 107,341,353 | 106,787,975 | 104,911,633 | 1 % | 2 % | ||||
Net income per share: | |||||||||
Basic | (97 %) | (95 %) | |||||||
Diluted | (97 %) | (94 %) | |||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||
Six Months Ended | |||||
June 30, | June 30, | ||||
($ in thousands, except per share data) | 2026 | 2025 | % Change | ||
REVENUE | |||||
Total revenue | 8 % | ||||
Interest expense | (45,348) | (42,276) | |||
Net revenue | 1,564,251 | 1,444,048 | 8 % | ||
OPERATING EXPENSES | |||||
Compensation and benefits | 1,054,303 | 949,478 | 11 % | ||
Occupancy and equipment | 65,227 | 69,116 | |||
Marketing and business development | 63,070 | 57,324 | |||
Technology and information services | 100,908 | 95,488 | |||
Professional services | 53,557 | 43,426 | |||
Fund administration and outsourced services | 71,570 | 56,599 | |||
Other | 28,439 | 24,901 | |||
Non-compensation expenses | 382,771 | 346,854 | 10 % | ||
Operating expenses | 1,437,074 | 1,296,332 | 11 % | ||
Operating income | 127,177 | 147,716 | (14 %) | ||
Provision for income taxes | 12,882 | 24,410 | (47 %) | ||
Net income | 114,295 | 123,306 | (7 %) | ||
Net income attributable to noncontrolling interests | 8,571 | 7,585 | |||
Net income attributable to Lazard, Inc. | (9 %) | ||||
Attributable to Lazard, Inc. Common Stockholders: | |||||
Weighted average shares outstanding: | |||||
Basic | 100,408,897 | 96,394,871 | 4 % | ||
Diluted | 107,064,663 | 104,870,193 | 2 % | ||
Net income per share: | |||||
Basic | (14 %) | ||||
Diluted | (13 %) | ||||
CONDENSED CONSOLIDATED | |||
As of | |||
June 30, | December 31, | ||
($ in thousands) | 2026 | 2025 | |
ASSETS | |||
Cash and cash equivalents | |||
Deposits with banks and short-term investments | 197,187 | 167,134 | |
Restricted cash | 5,779 | 34,021 | |
Receivables | 765,228 | 897,786 | |
Investments | 540,634 | 625,846 | |
Property | 152,658 | 168,005 | |
Operating lease right-of-use assets | 393,617 | 412,584 | |
Goodwill and other intangible assets | 447,556 | 395,262 | |
Deferred tax assets | 468,830 | 449,531 | |
Other assets | 293,382 | 316,687 | |
Total Assets | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY | |||
Liabilities | |||
Deposits and other customer payables | |||
Accrued compensation and benefits | 365,776 | 794,754 | |
Operating lease liabilities | 463,473 | 485,149 | |
Senior debt | 1,689,530 | 1,688,086 | |
Other liabilities | 467,155 | 652,763 | |
Total liabilities | 3,348,843 | 3,951,604 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 111,286 | 78,379 | |
Stockholders' equity | |||
Preferred stock, par value | – | – | |
Common stock, par value | 1,105 | 1,117 | |
Additional paid-in capital | 195,119 | 306,425 | |
Retained earnings | 1,505,836 | 1,517,571 | |
Accumulated other comprehensive loss, net of tax | (278,753) | (271,509) | |
Subtotal | 1,423,307 | 1,553,604 | |
Common stock held in treasury, at cost | (509,002) | (684,411) | |
Total Lazard, Inc. stockholders' equity | 914,305 | 869,193 | |
Noncontrolling interests | (9,773) | 37,096 | |
Total stockholders' equity | 904,532 | 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 | |||||||||
Three Months Ended | % Change From | ||||||||
June 30, | March 31, | June 30, | March 31, | June 30, | |||||
($ in thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||
Net Revenue: | |||||||||
Financial Advisory | 25 % | (9 %) | |||||||
Asset Management | 331,308 | 308,838 | 268,491 | 7 % | 23 % | ||||
Corporate | 9,839 | 7,976 | 10,016 | 23 % | (2 %) | ||||
Adjusted net revenue | 17 % | 2 % | |||||||
Expenses: | |||||||||
Adjusted compensation and benefits expense | 17 % | 9 % | |||||||
Adjusted compensation ratio (a) | 69.9 % | 69.9 % | 65.5 % | ||||||
Adjusted non-compensation expenses | 16 % | 9 % | |||||||
Adjusted non-compensation ratio (b) | 21.8 % | 22.1 % | 20.4 % | ||||||
Earnings: | |||||||||
Adjusted operating income | 21 % | (40 %) | |||||||
Adjusted operating margin (c) | 8.3 % | 8.0 % | 14.1 % | ||||||
Adjusted net income | (72 %) | (77 %) | |||||||
Adjusted diluted net income per share | (71 %) | (77 %) | |||||||
Adjusted diluted weighted average shares (d) | 110,458,354 | 110,364,000 | 106,696,656 | – % | 4 % | ||||
Adjusted effective tax rate (e) | 69.7 % | (50.4 %) | 36.5 % | ||||||
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
See Notes to Financial Schedules |
SELECTED SUMMARY FINANCIAL INFORMATION | |||||
Six Months Ended | |||||
June 30, | June 30, | ||||
($ in thousands, except per share data) | 2026 | 2025 | % Change | ||
Net Revenue: | |||||
Financial Advisory | (7 %) | ||||
Asset Management | 640,146 | 532,985 | 20 % | ||
Corporate | 17,815 | 19,164 | (7 %) | ||
Adjusted net revenue | 3 % | ||||
Expenses: | |||||
Adjusted compensation and benefits expense | 10 % | ||||
Adjusted compensation ratio (a) | 69.9 % | 65.5 % | |||
Adjusted non-compensation expenses | 5 % | ||||
Adjusted non-compensation ratio (b) | 22.0 % | 21.6 % | |||
Earnings: | |||||
Adjusted operating income | (35 %) | ||||
Adjusted operating margin (c) | 8.1 % | 12.9 % | |||
Adjusted net income | (49 %) | ||||
Adjusted diluted net income per share | (50 %) | ||||
Adjusted diluted weighted average shares (d) | 110,411,176 | 107,186,445 | 3 % | ||
Adjusted effective tax rate (e) | 19.2 % | 17.4 % | |||
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 |
ASSETS UNDER MANAGEMENT | |||||||||
As of | % Change From | ||||||||
June 30, | March 31, | June 30, | March 31, | June 30, | |||||
($ in millions) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||
AUM by Asset Class: | |||||||||
Equity: | |||||||||
Emerging Markets | 16.8 % | 54.6 % | |||||||
Global / International | 136,748 | 124,432 | 106,809 | 9.9 % | 28.0 % | ||||
26,467 | 24,831 | 39,735 | 6.6 % | (33.4 %) | |||||
Total Equity | 214,368 | 193,049 | 179,639 | 11.0 % | 19.3 % | ||||
Fixed Income | 34,977 | 34,423 | 34,534 | 1.6 % | 1.3 % | ||||
Multi Asset | 24,480 | 23,113 | 24,832 | 5.9 % | (1.4 %) | ||||
Alternative Investments | 10,825 | 8,602 | 9,355 | 25.8 % | 15.7 % | ||||
Total AUM | 9.8 % | 14.6 % | |||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||
2026 | 2026 | 2025 | 2026 | 2025 | |||||
AUM - Beginning of Period | |||||||||
Net Flows | (1,614) | 9,005 | 677 | 7,391 | (2,982) | ||||
Market Value Appreciation | 27,111 | 354 | 11,886 | 27,465 | 12,711 | ||||
Foreign Exchange Appreciation / (Depreciation) | (1,067) | (2,980) | 8,370 | (4,047) | 12,310 | ||||
Acquisitions / (Divestitures) | 1,033 | (1,492) | – | (459) | – | ||||
AUM - End of Period | |||||||||
Average AUM | |||||||||
% Change in Average AUM | – % | 5.1 % | 17.0 % | 15.6 % | |||||
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 | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
($ in thousands) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||
Net Revenue | ||||||||||
Financial Advisory net revenue - | ||||||||||
Adjustments: | ||||||||||
Reimbursable deal costs, provision for credit losses and other (f) | (4,848) | (3,399) | (5,952) | (8,247) | (3,771) | |||||
Interest expense (g) | – | – | 5 | – | 8 | |||||
Adjusted Financial Advisory net revenue | ||||||||||
Asset Management net revenue - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (h) | (147) | (3,446) | (5,225) | (3,593) | (12,075) | |||||
Distribution fees and other (f) | (22,077) | (19,530) | (18,765) | (41,607) | (35,527) | |||||
Interest expense (g) | 19 | 41 | 3 | 60 | 9 | |||||
Gain on sale and deconsolidation of Edgewater (i) | 2,482 | (77,990) | – | (75,508) | – | |||||
Adjusted Asset Management net revenue | ||||||||||
Corporate net revenue - | ( | ( | ( | |||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (h) | (9,122) | (180) | (6,775) | (9,302) | (5,936) | |||||
Gains related to Lazard Fund Interests ("LFI") and similar arrangements (j) | (9,921) | (1,782) | (10,509) | (11,703) | (15,752) | |||||
Interest expense (g) | 22,411 | 22,687 | 21,087 | 45,098 | 42,047 | |||||
Adjusted Corporate net revenue | ||||||||||
Net revenue - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (h) | (9,269) | (3,626) | (12,000) | (12,895) | (18,011) | |||||
Gains related to Lazard Fund Interests ("LFI") and similar arrangements (j) | (9,921) | (1,782) | (10,509) | (11,703) | (15,752) | |||||
Distribution fees, reimbursable deal costs, provision for credit losses and other (f) | (26,925) | (22,929) | (24,717) | (49,854) | (39,298) | |||||
Interest expense (g) | 22,430 | 22,728 | 21,095 | 45,158 | 42,064 | |||||
Gain on sale and deconsolidation of Edgewater (i) | 2,482 | (77,990) | – | (75,508) | – | |||||
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 | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
($ in thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||
Compensation and Benefits Expense | ||||||||||
Compensation and benefits expense - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (h) | (142) | (2,870) | (4,436) | (3,012) | (8,177) | |||||
Charges pertaining to LFI and similar arrangements (j) | (9,921) | (1,782) | (10,509) | (11,703) | (15,752) | |||||
Expenses associated with senior management transition (k) | (2,775) | (16,658) | – | (19,433) | – | |||||
Adjusted compensation and benefits expense | ||||||||||
Non-Compensation Expenses | ||||||||||
Non-compensation expenses - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (h) | (204) | (1,110) | (1,594) | (1,314) | (2,251) | |||||
Distribution fees, reimbursable deal costs, provision for credit losses and other (f) | (26,925) | (22,929) | (24,717) | (49,854) | (39,298) | |||||
Expenses related to the pending acquisition of Campbell Lutyens (l) | (8,808) | (2,400) | – | (11,208) | – | |||||
Other | – | – | (26) | – | (52) | |||||
Adjusted non-compensation expenses | ||||||||||
Operating Income | ||||||||||
Operating income - | ||||||||||
Adjustments: | ||||||||||
Noncontrolling interests and similar arrangements (h) | (8,923) | 354 | (5,970) | (8,569) | (7,583) | |||||
Interest expense (g) | 22,430 | 22,728 | 21,095 | 45,158 | 42,064 | |||||
Gain on sale and deconsolidation of Edgewater (i) | 2,482 | (77,990) | – | (75,508) | – | |||||
Expenses associated with senior management transition (k) | 2,775 | 16,658 | – | 19,433 | – | |||||
Expenses related to the pending acquisition of Campbell Lutyens (l) | 8,808 | 2,400 | – | 11,208 | – | |||||
Other | – | – | 26 | – | 52 | |||||
Adjusted operating income | ||||||||||
Provision (Benefit) for Income Taxes | ||||||||||
Provision (benefit) for income taxes - | ( | |||||||||
Adjustment: | ||||||||||
Tax effect of adjustments | 5,921 | (4,634) | – | 1,287 | – | |||||
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) | 2,482 | (77,990) | – | (75,508) | – | |||||
Expenses associated with senior management transition (k) | 2,775 | 16,658 | – | 19,433 | – | |||||
Expenses related to the pending acquisition of Campbell Lutyens (l) | 8,808 | 2,400 | – | 11,208 | – | |||||
Tax effect of adjustments | (5,921) | 4,634 | – | (1,287) | – | |||||
Adjusted net income | ||||||||||
Diluted Weighted Average Shares Outstanding | ||||||||||
Diluted weighted average shares outstanding - | 107,341,353 | 106,787,975 | 104,911,633 | 107,064,663 | 104,870,193 | |||||
Adjustment: | ||||||||||
Participating securities including profits interest participation rights and other | 3,117,001 | 3,576,025 | 1,785,023 | 3,346,513 | 2,316,252 | |||||
Adjusted diluted weighted average shares outstanding (d) | 110,458,354 | 110,364,000 | 106,696,656 | 110,411,176 | 107,186,445 | |||||
Diluted Net Income per Share | ||||||||||
Diluted net income per share - | ||||||||||
Diluted net income effect of adjustments | 0.09 | (0.49) | – | (0.40) | – | |||||
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 | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||
($ in thousands) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||
Non-compensation expenses - | |||||||||
Occupancy and equipment | |||||||||
Marketing and business development | 34,408 | 28,662 | 29,593 | 63,070 | 57,324 | ||||
Technology and information services | 52,633 | 48,275 | 49,272 | 100,908 | 95,488 | ||||
Professional services | 32,879 | 20,678 | 24,589 | 53,557 | 43,426 | ||||
Fund administration and outsourced services | 38,054 | 33,516 | 30,054 | 71,570 | 56,599 | ||||
Other | 15,876 | 12,563 | 16,497 | 28,439 | 24,901 | ||||
Non-compensation expenses - | |||||||||
Non-compensation expenses - Adjustments: | |||||||||
Occupancy and equipment (h) | ( | ( | ( | ( | ( | ||||
Marketing and business development (f) (h) | (3,741) | (3,925) | (4,032) | (7,666) | (6,689) | ||||
Technology and information services (f) (h) | (26) | (55) | (35) | (81) | (63) | ||||
Professional services (f) (h) (l) | (9,407) | (3,851) | (931) | (13,258) | (2,667) | ||||
Fund administration and outsourced services (f) (h) | (20,951) | (18,340) | (17,744) | (39,291) | (33,587) | ||||
Other (f) (h) | (1,803) | (172) | (3,500) | (1,975) | 1,595 | ||||
Non-compensation expenses - Adjustments | ( | ( | ( | ( | ( | ||||
Adjusted non-compensation expenses: | |||||||||
Occupancy and equipment | |||||||||
Marketing and business development | 30,667 | 24,737 | 25,561 | 55,404 | 50,635 | ||||
Technology and information services | 52,607 | 48,220 | 49,237 | 100,827 | 95,425 | ||||
Professional services | 23,472 | 16,827 | 23,658 | 40,299 | 40,759 | ||||
Fund administration and outsourced services | 17,103 | 15,176 | 12,310 | 32,279 | 23,012 | ||||
Other | 14,073 | 12,391 | 12,997 | 26,464 | 26,496 | ||||
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 incremental units of profits interest participation rights ("PIPRs"). PIPRs are equity incentive awards under our long-term incentive compensation program that, subject to certain conditions, may be exchanged for shares of our common stock. | |||||||||
(e) | 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, | |||||
2026 | 2026 | 2025 | 2026 | 2025 | ||||||
Adjusted provision (benefit) for income taxes | ( | |||||||||
Adjusted operating income less interest expense, amortization and other acquisition-related costs | ||||||||||
Adjusted effective tax rate | 69.7 % | (50.4 %) | 36.5 % | 19.2 % | 17.4 % | |||||
(f) | 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. | |||||||||
(g) | 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. | |||||||||
(h) | (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. | |||||||||
(i) | Represents a non-cash gain on the sale and deconsolidation of the Edgewater management vehicles. | |||||||||
(j) | In connection with Lazard Fund Interests ("LFI") and other similar deferred compensation arrangements, represents changes in the fair value of investments held and the compensation liability recorded, both of which are excluded from adjusted net revenue and adjusted compensation and benefits expense, respectively. | |||||||||
(k) | Represents expenses associated with the departure of certain executive officers. | |||||||||
(l) | Represents expenses related to the pending acquisition of Campbell Lutyens. | |||||||||
NM | Not meaningful | |||||||||
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SOURCE Lazard