Lazard Reports Third Quarter and Nine Month 2026 Results

Lazard plans to launch its new private capital advisory business, Lazard CL, in early November.

Rhea-AI Summary

Lazard (NYSE: LAZ) reported third-quarter 2026 GAAP net revenue of $814 million, with revenue growth accompanied by lower earnings. Revenue rose 9% year over year, while net income fell 59% to $29 million and diluted earnings fell 60% to $0.26. Adjusted net revenue increased 11% to $805 million; adjusted diluted earnings declined 36% to $0.36.

Financial Advisory GAAP revenue rose 10% to $470 million, and Asset Management revenue increased 9% to $357 million. Quarter-end assets under management were $284 billion, up 7% year over year, despite $2.3 billion of quarterly net outflows. The adjusted compensation expense ratio rose to 69.9% from 65.5%. For the first nine months, GAAP revenue increased 8% to $2,378 million, while net income declined 28% to $135 million. Lazard returned $366 million to shareholders over that period and declared a $0.50 quarterly dividend payable November 13, 2026.

21 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter GAAP net revenue rose 9% year over year to $814 million.
• Moderate pointAdjusted net revenue rose 11% to $805 million quarterly and 6% to $2,264 million over nine months.
• Moderate pointQuarterly adjusted management fees reached $321 million, up 18% year over year and 4% sequentially.
• Moderate pointQuarter-end assets under management rose 7% year over year to $284 billion, approximately even sequentially.
• Moderate pointNine-month average assets under management increased 14% to $277 billion, with $5.1 billion in positive net flows.
• Moderate pointQuarterly adjusted non-compensation expense ratio improved to 19.3% from 20.5% a year earlier.
• Moderate pointShareholder returns totaled $88 million in the quarter and $366 million over nine months.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Lazard targets an adjusted compensation expense ratio of 60% or below.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Lazard targets an adjusted non-compensation expense ratio between 16% and 20%.

12 minor points

• Minor pointNine-month GAAP net revenue increased 8% year over year to $2,378 million.
• Minor pointFinancial Advisory quarterly revenue increased 10% to $470 million GAAP and $465 million adjusted.
• Minor pointAsset Management quarterly revenue rose 9% to $357 million GAAP and 12% to $330 million adjusted.
• Minor pointAsset Management nine-month revenue increased 23% to $1,118 million GAAP and 17% to $970 million adjusted.
• Minor pointEdgewater management vehicles sale and deconsolidation generated a non-cash gain included in nine-month GAAP revenue.
• Minor pointNine-month adjusted management fees increased 22% year over year to $927 million.
• Minor pointQuarterly average assets under management increased 11% year over year and 3% sequentially to $287 billion.
• Minor pointMarket appreciation added $1.9 billion to assets under management during the quarter.
• Minor pointNine-month adjusted non-compensation expense ratio improved to 21.0% from 21.2% a year earlier.
• Minor pointNine-month repurchases covered 1.9 million shares at an average price of $43.68.
• Minor pointRemaining share repurchase authorization was approximately $224 million as of September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lazard CL, the new private capital advisory business, is planned to launch in early November.

Negative

• Moderate pointQuarterly GAAP net income fell 59% to $29 million; diluted earnings declined 60% to $0.26.
• Moderate pointAdjusted compensation expense ratio rose to 69.9% from 65.5% for both quarterly and nine-month periods.
• Minor pointNine-month GAAP net income declined 28% to $135 million; diluted earnings fell 30% to $1.20.
• Minor pointQuarterly adjusted net income fell 35% to $40 million; diluted earnings declined 36% to $0.36.
• Minor pointNine-month adjusted net income declined 44% to $100 million; diluted earnings fell 45% to $0.90.

12 minor points

• Minor pointFinancial Advisory nine-month revenue fell 1% to $1,279 million GAAP and $1,266 million adjusted.
• Minor pointQuarterly net outflows reduced assets under management by $2.3 billion.
• Minor pointForeign exchange depreciation reduced quarterly assets under management by $0.2 billion.
• Minor pointQuarterly adjusted incentive fees fell to $1 million from $9 million a year earlier.
• Minor pointNine-month adjusted incentive fees declined to $18 million from $21 million a year earlier.
• Minor pointQuarterly adjusted other revenue declined to $8 million from $14 million a year earlier.
• Minor pointNine-month adjusted other revenue fell to $25 million from $44 million a year earlier.
• Minor pointQuarterly GAAP compensation expense increased to $569 million from $498 million a year earlier.
• Minor pointNine-month GAAP compensation expense rose to $1,623 million from $1,448 million a year earlier.
• Minor pointQuarterly GAAP non-compensation expenses increased 9% year over year to $190 million.
• Minor pointNine-month GAAP non-compensation expenses increased 10% year over year to $573 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Expense-ratio target timing remains dependent on market conditions.

News Explained

Lazard says third-quarter Financial Advisory revenue included an amount pulled into the period for transactions that closed just after September 30; the company says this timing was in line with its two-year average.

Key Figures

GAAP net revenue: $814 million Adjusted net revenue: $805 million GAAP net income: $29 million +4 more

GAAP net revenue

$814 million

Q3 2026; up 9% year over year

Adjusted net revenue

$805 million

Q3 2026; up 11% year over year

GAAP net income

$29 million

Q3 2026; down 59% year over year

Adjusted net income

$40 million

Q3 2026; down 35% year over year

GAAP diluted EPS

$0.26 per share

Q3 2026; down 60% year over year

Adjusted diluted EPS

$0.36 per share

Q3 2026; down 36% year over year

Quarterly dividend

$0.50 per share

Declared October 21, 2026; payable November 13, 2026

Key Terms

non-gaap, assets under management, effective tax rate, weighted average shares outstanding

4 terms

non-gaap financial

"A non-GAAP measure."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

assets under management financial

"Average assets under management (AUM) was $287 billion"

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

effective tax rate financial

"which equates to an effective tax rate of 45.8%"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

weighted average shares outstanding financial

"Weighted average shares outstanding: Basic 101,030,518"

The weighted average shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted so each change (like new shares issued or shares bought back) counts only for the portion of the period it was in effect. Investors use it to calculate per-share measures such as earnings per share, so it shows how ownership dilution or buybacks affect what each share is entitled to—like averaging how many people were at a potluck over time to determine each person’s share of the food.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEW YORK, Oct. 22, 2026 /PRNewswire/ -- Lazard, Inc. (NYSE: LAZ) today reported net revenue on a U.S. GAAP basis of $814 million and adjusted net revenue¹ of $805 million for the quarter ended September 30, 2026. For the first nine months of 2026, Lazard reported net revenue on a U.S. GAAP basis of $2,378 million and adjusted net revenue¹ of $2,264 million.

On a U.S. GAAP basis, Lazard reported third-quarter 2026 net income of $29 million or $0.26 per share, diluted. For the first nine months of 2026, net income on a U.S. GAAP basis was $135 million or $1.20 per share, diluted. On an adjusted basis¹, Lazard reported third-quarter 2026 net income of $40 million or $0.36 per share, diluted. For the first nine months of 2026, adjusted net income¹ was $100 million or $0.90 per share, diluted.

"Our Lazard 2030 strategy continues to progress as planned, with strong momentum firm-wide," said Peter R. Orszag, CEO and Chairman. "Financial Advisory delivered record third quarter revenue as the investments we have made in the business increasingly translate into results, while client activity and our forward indicators remain strong. In Asset Management, record year-to-date gross inflows reflect improving investment performance and focused distribution efforts. With our new private capital advisory business, Lazard CL, launching in early November, we are building a more productive, diversified firm positioned for long-term profitable growth."

"Our third quarter results show increasing traction from efforts to reposition our businesses, with firm-wide adjusted net revenue up 11 percent year-over-year," said Tracy Farr, CFO. "We continue to advance initiatives to simplify and modernize our operating model and embed AI across the firm, with the goals of improving client outcomes, supporting a more effective way of working for our colleagues, and improving our margin over time."

(Selected results, $ in millions,	Three Months Ended						Nine Months Ended
except per share data and AUM)	September 30,						September 30,
U.S. GAAP Financial Measures	2026		2025		% Change		2026		2025		% Change
Net Revenue	$814		$748		9 %		$2,378		$2,192		8 %
Financial Advisory	$470		$427		10 %		$1,279		$1,292		(1 %)
Asset Management	$357		$327		9 %		$1,118		$908		23 %
Net Income	$29		$71		(59 %)		$135		$187		(28 %)
Per share, diluted	$0.26		$0.65		(60 %)		$1.20		$1.72		(30 %)
Adjusted Financial Measures1
Net Revenue	$805		$725		11 %		$2,264		$2,138		6 %
Financial Advisory	$465		$422		10 %		$1,266		$1,283		(1 %)
Asset Management	$330		$294		12 %		$970		$827		17 %
Net Income	$40		$62		(35 %)		$100		$178		(44 %)
Per share, diluted	$0.36		$0.56		(36 %)		$0.90		$1.64		(45 %)
Assets Under Management (AUM) ($ in billions)
Ending AUM	$284		$265		7 %
Average AUM	$287		$257		11 %		$277		$242		14 %

Notes: 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 third quarter of 2026, Financial Advisory reported net revenue on a U.S. GAAP basis and adjusted net revenue¹ of $470 million and $465 million, respectively, both 10% higher than the third quarter of 2025. This quarter's revenue includes an amount pulled forward into the period for transactions that closed just after September 30^th that is in line with Lazard's two-year average.

For the first nine months of 2026, Financial Advisory reported net revenue on a U.S. GAAP basis and adjusted net revenue¹ of $1,279 million and $1,266 million, respectively, both 1% lower than the first nine months of 2025.

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 third quarter of 2026, we advised on a number of marquee transactions including Emera on its announced merger with Canadian Utilities for a combined enterprise value of approximately C$72 billion and Corteva Agriscience's $50 billion spinoff of Vylor.

In addition, we advised on the following transactions (clients are in italics):

• Vega on its proposed acquisition of e&'s 16.2% stake in Vodafone Group, at a price implying an equity value for 100% of Vodafone of over €30 billion
• OCS Group's proposed £3.1 billion acquisition of Mitie Group
• MasTec's $1.7 billion acquisition of The Superior Group
• Vanguard's acquisition of Altruist
• Walmart's acquisition of Vibe.co
• Humata Health on its sale to R1
• Rimac Group on the divestiture of Porsche's stake in Bugatti Rimac and Rimac Group to a consortium led by HOF Capital

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 Blue Sea Capital, Exponent Private Equity and M-One Capital on continuation funds and advising on the closing of Kingswood Capital Management's Fund IV and Small Cap Fund I, LLCP Lower Middle Market Fund IV, Princeton Equity Group's Fund III, and TruArc Fund V. In addition, Lazard advised on financing for Ashurst Perkins Coie and CVE.

Lazard's restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving Braskem Idesa, Braskem SA, Republic National Distributing Company, Searles Valley Minerals, and Victoria, and creditor roles involving Brightline, Cubic, Dish, Foundever, GoldenPeaks Capital, and QVC. In addition, our preeminent sovereign advisory practice continues to be active in advising governments and public sector entities across the world.

For a list of publicly announced transactions please visit our website or follow Lazard on LinkedIn.

Asset Management

For the third quarter of 2026, Asset Management reported net revenue on a U.S. GAAP basis and adjusted net revenue¹ of $357 million and $330 million, respectively, 9% and 12% higher than the third quarter of 2025, respectively.

Management fees on an adjusted basis¹ were $321 million for the third quarter of 2026, 18% higher than the third quarter of 2025, and 4% higher than the second quarter of 2026.

Incentive fees on an adjusted basis¹ were $1 million for the third quarter of 2026, compared to $9 million for the third quarter of 2025.

Other revenue² on an adjusted basis¹ was $8 million for the third quarter of 2026, compared to $14 million for the third quarter of 2025.

Average assets under management (AUM) was $287 billion for the third quarter of 2026, 11% higher than the third quarter of 2025, and 3% higher than the second quarter of 2026.

For the first nine months of 2026, Asset Management net revenue on a U.S. GAAP basis and adjusted net revenue¹ were $1,118 million and $970 million, 23% and 17% higher than the first nine months of 2025, respectively. On a U.S. GAAP basis, net revenue for the first nine months of 2026 included a non-cash gain on the sale and deconsolidation of the Edgewater management vehicles.

Management fees on an adjusted basis¹ were $927 million for the first nine months of 2026, 22% higher than the first nine months of 2025.

Incentive fees on an adjusted basis¹ were $18 million for the first nine months of 2026, compared to $21 million for the first nine months of 2025.

Other revenue² on an adjusted basis¹ was $25 million for the first nine months of 2026, compared to $44 million for the first nine months of 2025.

Average AUM for the first nine months of 2026 was $277 billion, 14% higher than the first nine months of 2025, with positive net flows for the first nine months of 2026 of $5.1 billion. AUM as of September 30, 2026 was $284 billion, 7% higher than September 30, 2025, approximately even with June 30, 2026. The sequential change from June 30, 2026 was driven by market appreciation of $1.9 billion, net outflows of $2.3 billion, and foreign exchange depreciation of $0.2 billion.

OPERATING EXPENSES

Compensation and Benefits Expense

For the third quarter of 2026, compensation and benefits expense on a U.S. GAAP and an adjusted basis¹ was $569 million and $562 million, respectively, compared to $498 million and $475 million, respectively, for the third quarter of 2025. The adjusted compensation ratio³ for the third quarter of 2026 was 69.9%, compared to the third-quarter 2025 ratio of 65.5%.

For the first nine months of 2026, compensation and benefits expense on a U.S. GAAP and an adjusted basis¹ was $1,623 million and $1,583 million, respectively, compared to $1,448 million and $1,400 million, respectively, for the first nine months of 2025. The adjusted compensation ratio³ for the first nine months of 2026 was 69.9%, compared to 65.5% for the first nine months of 2025.

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 60% or below, with timing dependent on market conditions.

Non-Compensation Expenses

For the third quarter of 2026, non-compensation expenses on a U.S. GAAP basis were $190 million, 9% higher than the third quarter of 2025. On an adjusted basis¹, non-compensation expenses were $156 million, 5% higher than the third quarter of 2025.

The adjusted non-compensation ratio⁴ was 19.3% for the third quarter of 2026, compared to 20.5% for the third quarter of 2025.

For the first nine months of 2026, non-compensation expenses on a U.S. GAAP basis were $573 million, 10% higher than the first nine months of 2025. On an adjusted basis¹, non-compensation expenses were $476 million, 5% higher than the first nine months of 2025.

The adjusted non-compensation ratio⁴ was 21.0% for the first nine months of 2026, compared to 21.2% for the first nine months of 2025.

As part of our Lazard 2030 vision and long-term growth strategy, we aim to deliver an adjusted non-compensation ratio⁴ between 16% and 20%, with timing dependent on market conditions.

TAXES

The provision for income taxes on both a U.S. GAAP and an adjusted basis¹ was $25 million for the third quarter of 2026, which equates to an effective tax rate of 45.8% on a U.S. GAAP basis and 38.1% on an adjusted basis¹.

The provision for income taxes on a U.S. GAAP and an adjusted basis¹ was $38 million and $39 million, respectively, for the first nine months of 2026, which equates to an effective tax rate of 20.9% on a U.S. GAAP basis and 28.0% on an adjusted basis¹.

CAPITAL MANAGEMENT AND BALANCE SHEET

In the third quarter of 2026, Lazard returned $88 million to shareholders, which included: $49 million in dividends; $33 million in repurchases of our common stock; and $6 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

In the first nine months of 2026, Lazard returned $366 million to shareholders, which included: $145 million in dividends; $85 million in repurchases of our common stock; and $136 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

During the first nine months of 2026, we repurchased 1.9 million shares at an average price of $43.68. As of September 30, 2026, our total outstanding share repurchase authorization was approximately $224 million.

On October 21, 2026, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on November 13, 2026, to stockholders of record on November 2, 2026.

Lazard's financial position remains strong. As of September 30, 2026, our cash and cash equivalents were $1,264 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 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 October 22, 2026, to discuss the company's financial results for the third 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, 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: LAZQ326.

A replay of the conference call will be available by 10:00 a.m. ET, October 22, 2026, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-753-9197 (toll-free, U.S. and Canada) or +1 402-220-0689 (outside of the U.S. and Canada).

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 (U.S. GAAP - unaudited)
	Three Months Ended						% Change From
	September 30,		June 30,		September 30,		June 30,		September 30,
($ in thousands, except per share data)	2026		2026		2025		2026		2025
REVENUE
Total revenue	$836,377		$830,200		$770,764		1 %		9 %
Interest expense	(22,206)		(22,531)		(22,686)
Net revenue	814,171		807,669		748,078		1 %		9 %
OPERATING EXPENSES
Compensation and benefits	568,983		562,409		498,212		1 %		14 %
Occupancy and equipment	33,921		33,807		31,908
Marketing and business development	27,547		34,408		26,085
Technology and information services	49,834		52,633		48,862
Professional services	22,322		32,879		20,951
Fund administration and outsourced services	41,291		38,054		32,390
Other	15,521		15,876		14,886
Non-compensation expenses	190,436		207,657		175,082		(8 %)		9 %
Benefit pursuant to tax receivable agreement	–		–		(20,146)
Operating expenses	759,419		770,066		653,148		(1 %)		16 %
Operating income	54,752		37,603		94,930		46 %		(42 %)
Provision for income taxes	25,082		23,871		21,430		5 %		17 %
Net income	29,670		13,732		73,500		116 %		(60 %)
Net income attributable to noncontrolling interests	510		8,924		2,253
Net income attributable to Lazard, Inc.	$29,160		$4,808		$71,247		NM		(59 %)
Attributable to Lazard, Inc. Common Stockholders:
Weighted average shares outstanding:
Basic	101,030,518		101,357,540		98,112,393		– %		3 %
Diluted	107,284,701		107,341,353		108,001,762		– %		(1 %)
Net income per share:
Basic	$0.27		$0.03		$0.71		NM		(62 %)
Diluted	$0.26		$0.03		$0.65		NM		(60 %)

 

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (U.S. GAAP - unaudited)
	Nine Months Ended
	September 30,		September 30,
($ in thousands, except per share data)	2026		2025		% Change
REVENUE
Total revenue	$2,445,976		$2,257,088		8 %
Interest expense	(67,554)		(64,962)
Net revenue	2,378,422		2,192,126		8 %
OPERATING EXPENSES
Compensation and benefits	1,623,286		1,447,690		12 %
Occupancy and equipment	99,148		101,024
Marketing and business development	90,617		83,409
Technology and information services	150,742		144,350
Professional services	75,879		64,377
Fund administration and outsourced services	112,861		88,989
Other	43,960		39,787
Non-compensation expenses	573,207		521,936		10 %
Benefit pursuant to tax receivable agreement	–		(20,146)
Operating expenses	2,196,493		1,949,480		13 %
Operating income	181,929		242,646		(25 %)
Provision for income taxes	37,964		45,840		(17 %)
Net income	143,965		196,806		(27 %)
Net income attributable to noncontrolling interests	9,081		9,838
Net income attributable to Lazard, Inc.	$134,884		$186,968		(28 %)
Attributable to Lazard, Inc. Common Stockholders:
Weighted average shares outstanding:
Basic	100,616,105		96,967,379		4 %
Diluted	107,138,010		105,914,050		1 %
Net income per share:
Basic	$1.28		$1.88		(32 %)
Diluted	$1.20		$1.72		(30 %)

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (U.S. GAAP - unaudited)
	As of
	September 30,		December 31,
($ in thousands)	2026		2025
ASSETS
Cash and cash equivalents	$1,263,956		$1,469,416
Deposits with banks and short-term investments	182,451		167,134
Restricted cash	6,329		34,021
Receivables	843,007		897,786
Investments	520,773		625,846
Property	151,260		168,005
Operating lease right-of-use assets	398,151		412,584
Goodwill and other intangible assets	451,805		395,262
Deferred tax assets	453,721		449,531
Other assets	276,457		316,687
Total Assets	$4,547,910		$4,936,272
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY
Liabilities
Deposits and other customer payables	$368,787		$330,852
Accrued compensation and benefits	495,661		794,754
Operating lease liabilities	470,755		485,149
Senior debt	1,690,252		1,688,086
Other liabilities	472,763		652,763
Total liabilities	3,498,218		3,951,604
Commitments and contingencies
Redeemable noncontrolling interests	109,207		78,379
Stockholders' equity
Preferred stock, par value $.01 per share	–		–
Common stock, par value $.01 per share	1,098		1,117
Additional paid-in capital	219,424		306,425
Retained earnings	1,477,967		1,517,571
Accumulated other comprehensive loss, net of tax	(275,422)		(271,509)
Subtotal	1,423,067		1,553,604
Common stock held in treasury, at cost	(474,281)		(684,411)
Total Lazard, Inc. stockholders' equity	948,786		869,193
Noncontrolling interests	(8,301)		37,096
Total stockholders' equity	940,485		906,289
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$4,547,910		$4,936,272

Note: In the first quarter of 2026, the Company changed its accounting principle for recognizing compensation expense for share-based incentive compensation awards and certain deferred compensation arrangements with only a service condition. As a result, the cumulative effect of applying the change to the prior period is reflected on the Company's Condensed Consolidated Statement of Financial Condition as of December 31, 2025.

SELECTED SUMMARY FINANCIAL INFORMATION (Adjusted Basis - Non-GAAP - unaudited)
	Three Months Ended						% Change From
	September 30,		June 30,		September 30,		June 30,		September 30,
($ in thousands, except per share data)	2026		2026		2025		2026		2025
Net Revenue:
Financial Advisory	$464,690		$445,319		$422,279		4 %		10 %
Asset Management	330,242		331,308		294,189		– %		12 %
Corporate	9,689		9,839		8,185		(2 %)		18 %
Adjusted net revenue	$804,621		$786,466		$724,653		2 %		11 %
Expenses:
Adjusted compensation and benefits expense	$562,430		$549,571		$474,647		2 %		18 %
Adjusted compensation ratio (a)	69.9 %		69.9 %		65.5 %
Adjusted non-compensation expenses	$155,523		$171,720		$148,665		(9 %)		5 %
Adjusted non-compensation ratio (b)	19.3 %		21.8 %		20.5 %
Earnings:
Adjusted operating income	$86,668		$65,175		$101,341		33 %		(14 %)
Adjusted operating margin (c)	10.8 %		8.3 %		14.0 %
Adjusted net income	$39,968		$12,952		$61,872		NM		(35 %)
Adjusted diluted net income per share	$0.36		$0.12		$0.56		NM		(36 %)
Adjusted diluted weighted average shares (d)	110,580,240		110,458,354		110,354,682		– %		– %
Adjusted effective tax rate (e)	38.1 %		69.7 %		21.4 %

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 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 (Adjusted Basis - Non-GAAP - unaudited)
	Nine Months Ended
	September 30,		September 30,
($ in thousands, except per share data)	2026		2025		% Change
Net Revenue:
Financial Advisory	$1,266,178		$1,283,181		(1 %)
Asset Management	970,388		827,174		17 %
Corporate	27,504		27,349		1 %
Adjusted net revenue	$2,264,070		$2,137,704		6 %
Expenses:
Adjusted compensation and benefits expense	$1,582,585		$1,400,196		13 %
Adjusted compensation ratio (a)	69.9 %		65.5 %
Adjusted non-compensation expenses	$475,918		$453,918		5 %
Adjusted non-compensation ratio (b)	21.0 %		21.2 %
Earnings:
Adjusted operating income	$205,567		$283,590		(28 %)
Adjusted operating margin (c)	9.1 %		13.3 %
Adjusted net income	$99,538		$177,593		(44 %)
Adjusted diluted net income per share	$0.90		$1.64		(45 %)
Adjusted diluted weighted average shares (d)	110,467,531		108,242,524		2 %
Adjusted effective tax rate (e)	28.0 %		18.8 %

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
	September 30,		June 30,		September 30,		June 30,		September 30,
($ in millions)	2026		2026		2025		2026		2025
AUM by Asset Class:
Equity:
Emerging Markets	$54,191		$51,153		$37,676		5.9 %		43.8 %
Global / International	134,446		136,748		115,755		(1.7 %)		16.1 %
U.S.	26,691		26,467		41,635		0.8 %		(35.9 %)
Total Equity	215,328		214,368		195,066		0.4 %		10.4 %
Fixed Income	33,751		34,977		35,246		(3.5 %)		(4.2 %)
Multi Asset	24,052		24,480		24,765		(1.7 %)		(2.9 %)
Alternative Investments	10,898		10,825		9,460		0.7 %		15.2 %
Total AUM	$284,029		$284,650		$264,537		(0.2 %)		7.4 %
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2026		2026		2025		2026		2025
AUM - Beginning of Period	$284,650		$259,187		$248,360		$254,300		$226,321
Net Flows	(2,325)		(1,614)		4,575		5,066		1,593
Market Value Appreciation	1,923		27,111		12,046		29,388		24,757
Foreign Exchange Appreciation / (Depreciation)	(219)		(1,067)		(444)		(4,266)		11,866
Acquisitions / (Divestitures)	–		1,033		–		(459)		–
AUM - End of Period	$284,029		$284,650		$264,537		$284,029		$264,537
Average AUM	$286,590		$279,116		$257,358		$277,003		$242,142
% Change in Average AUM	– %		2.7 %		11.4 %				14.4 %

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 U.S. GAAP TO ADJUSTED RESULTS (unaudited)
		Three Months Ended						Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,
($ in thousands)		2026		2026		2025		2026		2025
Net Revenue
Financial Advisory net revenue - U.S. GAAP		$469,623		$450,167		$427,335		$1,279,358		$1,292,000
Adjustments:
	Reimbursable deal costs, provision for credit losses and other (f)	(4,933)		(4,848)		(5,061)		(13,180)		(8,832)
	Interest expense (g)	–		–		5		–		13
Adjusted Financial Advisory net revenue		$464,690		$445,319		$422,279		$1,266,178		$1,283,181
Asset Management net revenue - U.S. GAAP		$356,950		$351,031		$327,029		$1,117,744		$907,607
Adjustments:
	Noncontrolling interests and similar arrangements (h)	(1,913)		(147)		(12,765)		(5,506)		(24,840)
	Distribution fees and other (f)	(24,810)		(22,077)		(20,083)		(66,417)		(55,610)
	Interest expense (g)	15		19		8		75		17
	Gain on sale and deconsolidation of Edgewater (i)	–		2,482		–		(75,508)		–
Adjusted Asset Management net revenue		$330,242		$331,308		$294,189		$970,388		$827,174
Corporate net revenue - U.S. GAAP		($12,402)		$6,471		($6,286)		($18,680)		($7,481)
Adjustments:
	Noncontrolling interests and similar arrangements (h)	(985)		(9,122)		(3,327)		(10,287)		(9,263)
	(Gains) losses related to Lazard Fund Interests ("LFI") and similar arrangements (j)	1,066		(9,921)		(4,823)		(10,637)		(20,575)
	Interest expense (g)	22,010		22,411		22,621		67,108		64,668
Adjusted Corporate net revenue		$9,689		$9,839		$8,185		$27,504		$27,349
Net revenue - U.S. GAAP		$814,171		$807,669		$748,078		$2,378,422		$2,192,126
Adjustments:
	Noncontrolling interests and similar arrangements (h)	(2,898)		(9,269)		(16,092)		(15,793)		(34,103)
	(Gains) losses related to Lazard Fund Interests ("LFI") and similar arrangements (j)	1,066		(9,921)		(4,823)		(10,637)		(20,575)
	Distribution fees, reimbursable deal costs, provision for credit losses and other (f)	(29,743)		(26,925)		(25,144)		(79,597)		(64,442)
	Interest expense (g)	22,025		22,430		22,634		67,183		64,698
	Gain on sale and deconsolidation of Edgewater (i)	–		2,482		–		(75,508)		–
Adjusted net revenue		$804,621		$786,466		$724,653		$2,264,070		$2,137,704

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 (unaudited)
		Three Months Ended						Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,
($ in thousands, except per share data)		2026		2026		2025		2026		2025
Compensation and Benefits Expense
Compensation and benefits expense - U.S. GAAP		$568,983		$562,409		$498,212		$1,623,286		$1,447,690
Adjustments:
	Noncontrolling interests and similar arrangements (h)	(2,069)		(142)		(12,594)		(5,081)		(20,771)
	(Charges) credits pertaining to LFI and similar arrangements (j)	1,066		(9,921)		(4,823)		(10,637)		(20,575)
	Expenses associated with senior management transition (k)	(5,550)		(2,775)		(6,148)		(24,983)		(6,148)
Adjusted compensation and benefits expense		$562,430		$549,571		$474,647		$1,582,585		$1,400,196
Non-Compensation Expenses
Non-compensation expenses - U.S. GAAP		$190,436		$207,657		$175,082		$573,207		$521,936
Adjustments:
	Noncontrolling interests and similar arrangements (h)	(415)		(204)		(1,246)		(1,729)		(3,497)
	Distribution fees, reimbursable deal costs, provision for credit losses and other (f)	(29,743)		(26,925)		(25,144)		(79,597)		(64,442)
	Expenses related to the pending acquisition of Campbell Lutyens (l)	(4,108)		(8,808)		–		(15,316)		–
	Amortization of intangible assets (m)	(601)		–		–		(601)		–
	Other	(46)		–		(27)		(46)		(79)
Adjusted non-compensation expenses		$155,523		$171,720		$148,665		$475,918		$453,918
Operating Income
Operating income - U.S. GAAP		$54,752		$37,603		$94,930		$181,929		$242,646
Adjustments:
	Noncontrolling interests and similar arrangements (h)	(414)		(8,923)		(2,252)		(8,983)		(9,835)
	Interest expense (g)	22,025		22,430		22,634		67,183		64,698
	Gain on sale and deconsolidation of Edgewater (i)	–		2,482		–		(75,508)		–
	Expenses associated with senior management transition (k)	5,550		2,775		6,148		24,983		6,148
	Expenses related to the pending acquisition of Campbell Lutyens (l)	4,108		8,808		–		15,316		–
	Amortization of intangible assets (m)	601		–		–		601		–
	Benefit pursuant to tax receivable agreement obligation ("TRA") (n)	–		–		(20,146)		–		(20,146)
	Other	46		–		27		46		79
Adjusted operating income		$86,668		$65,175		$101,341		$205,567		$283,590
Provision for Income Taxes
Provision for income taxes - U.S. GAAP		$25,082		$23,871		$21,430		$37,964		$45,840
Adjustment:
	Benefit for income taxes related to noncontrolling interests and similar arrangements	100		–		–		100		–
	(Provision) benefit for income taxes effect of other adjustments	(549)		5,921		(4,623)		738		(4,623)
Adjusted provision for income taxes		$24,633		$29,792		$16,807		$38,802		$41,217
Net Income attributable to Lazard, Inc.
Net income attributable to Lazard, Inc. - U.S. GAAP		$29,160		$4,808		$71,247		$134,884		$186,968
Adjustments:
	Gain on sale and deconsolidation of Edgewater (i)	–		2,482		–		(75,508)		–
	Expenses associated with senior management transition (k)	5,550		2,775		6,148		24,983		6,148
	Expenses related to the pending acquisition of Campbell Lutyens (l)	4,108		8,808		–		15,316		–
	Amortization of intangible assets (m)	601		–		–		601		–
	Benefit pursuant to tax receivable agreement obligation ("TRA") (n)	–		–		(20,146)		–		(20,146)
	Provision (benefit) for income taxes effect of other adjustments	549		(5,921)		4,623		(738)		4,623
Adjusted net income		$39,968		$12,952		$61,872		$99,538		$177,593
Diluted Weighted Average Shares Outstanding
Diluted weighted average shares outstanding - U.S. GAAP		107,284,701		107,341,353		108,001,762		107,138,010		105,914,050
	Participating securities including profits interest participation rights and other	3,295,539		3,117,001		2,352,920		3,329,521		2,328,475
Adjusted diluted weighted average shares outstanding (d)		110,580,240		110,458,354		110,354,682		110,467,531		108,242,524
Diluted Net Income per Share
Diluted net income per share - U.S. GAAP		$0.26		$0.03		$0.65		$1.20		$1.72
Diluted net income effect of adjustments		0.10		0.09		(0.09)		(0.30)		(0.08)
Adjusted net income per share		$0.36		$0.12		$0.56		$0.90		$1.64

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 (unaudited)
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
($ in thousands)	2026		2026		2025		2026		2025
Non-compensation expenses - U.S. GAAP:
Occupancy and equipment	$33,921		$33,807		$31,908		$99,148		$101,024
Marketing and business development	27,547		34,408		26,085		90,617		83,409
Technology and information services	49,834		52,633		48,862		150,742		144,350
Professional services	22,322		32,879		20,951		75,879		64,377
Fund administration and outsourced services	41,291		38,054		32,390		112,861		88,989
Other	15,521		15,876		14,886		43,960		39,787
Non-compensation expenses - U.S. GAAP	$190,436		$207,657		$175,082		$573,207		$521,936
Non-compensation expenses - Adjustments:
Occupancy and equipment (h)	($61)		($9)		($98)		($166)		($288)
Marketing and business development (f) (h)	(3,304)		(3,741)		(3,989)		(10,970)		(10,678)
Technology and information services (f) (h)	(55)		(26)		(39)		(136)		(102)
Professional services (f) (h) (l)	(4,892)		(9,407)		(957)		(18,150)		(3,624)
Fund administration and outsourced services (f) (h)	(23,911)		(20,951)		(18,814)		(63,202)		(52,401)
Other (f) (h) (l)	(2,690)		(1,803)		(2,520)		(4,665)		(925)
Non-compensation expenses - Adjustments	($34,913)		($35,937)		($26,417)		($97,289)		($68,018)
Adjusted non-compensation expenses:
Occupancy and equipment	$33,860		$33,798		$31,810		$98,982		$100,736
Marketing and business development	24,243		30,667		22,096		79,647		72,731
Technology and information services	49,779		52,607		48,823		150,606		144,248
Professional services	17,430		23,472		19,994		57,729		60,753
Fund administration and outsourced services	17,380		17,103		13,576		49,659		36,588
Other	12,831		14,073		12,366		39,295		38,862
Adjusted non-compensation expenses	$155,523		$171,720		$148,665		$475,918		$453,918

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

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 for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs.
		Three Months Ended						Nine Months Ended
	($ in thousands)	September 30,		June 30,		September 30,		September 30,		September 30,
		2026		2026		2025		2026		2025
	Adjusted provision for income taxes	$24,633		$29,792		$16,807		$38,802		$41,217
	Adjusted operating income less interest expense, amortization and other acquisition-related costs	$64,597		$42,745		$78,680		$138,338		$218,813
	Adjusted effective tax rate	38.1 %		69.7 %		21.4 %		28.0 %		18.8 %
(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.
(m)	Represents intangible asset amortization expense associated with the acquisition of a business.
(n)	Represents the effect of the periodic revaluation of the TRA liability.
NM	Not meaningful

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lazard-reports-third-quarter-and-nine-month-2026-results-302916068.html

SOURCE Lazard

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Lazard's third-quarter 2026 earnings and revenue?

Lazard reported GAAP net revenue of $814 million and diluted earnings of $0.26, up 9% and down 60% year over year, respectively. Adjusted net revenue was $805 million, up 11%, while adjusted diluted earnings were $0.36, down 36%.

When will Lazard pay its quarterly dividend?

Lazard will pay its $0.50 per-share quarterly dividend on November 13, 2026, to shareholders of record on November 2, 2026. The dividend was declared on October 21, 2026.

What are Lazard's long-term expense-ratio targets?

Lazard aims for an adjusted compensation expense ratio of 60% or below and an adjusted non-compensation expense ratio between 16% and 20%, with timing dependent on market conditions. These ratios measure the respective adjusted expenses as percentages of adjusted net revenue.

How much cash did Lazard hold at September 30, 2026?

Lazard held $1,264 million in cash and cash equivalents as of September 30, 2026.

Did Lazard's third-quarter Financial Advisory revenue include transactions that closed after September 30?

Third-quarter Financial Advisory revenue included an amount pulled forward for transactions that closed just after September 30. That amount was in line with Lazard's two-year average.