- Record full-year Financial Advisory adjusted net revenue of $1.8 billion
- Record full-year Asset Management inflows and total AUM up 12% year-over-year
- Financial Advisory ahead of 2030 targets, with revenue per MD of $8.9 million1 and 21 Managing Directors hired during 2025
NEW YORK, Jan. 29, 2026 /PRNewswire/ -- Lazard, Inc. (NYSE: LAZ) today reported net revenue of $907 million and adjusted net revenue2 of $892 million for the quarter ended December 31, 2025. For the full year of 2025, Lazard reported net revenue of $3,099 million and adjusted net revenue2 of $3,030 million.
On a U.S. GAAP basis, Lazard reported fourth-quarter 2025 net income of $50 million or $0.45 per share, diluted. For the full year of 2025, net income on a U.S. GAAP basis was $237 million or $2.17 per share, diluted. For the fourth quarter 2025, adjusted net income2 was $89 million or $0.80 per share, diluted. For the full year of 2025, adjusted net income2 was $266 million or $2.44 per share, diluted.
"2025 demonstrates our ongoing focus on executing our Lazard 2030 long-term growth strategy, with record revenue in Financial Advisory and record gross inflows in Asset Management," said Peter R. Orszag, CEO and Chairman of Lazard. "Efforts to transform both businesses over the past two years are gaining traction and delivering results. With favorable business conditions and strong client demand for contextual alpha--combining business decision-making with broader macroeconomic and geopolitical perspective--Lazard is well positioned for substantial growth opportunities ahead."
Today, Lazard also announced that Tracy Farr has been appointed Chief Financial Officer. You can read the full press release on Lazard.com.
(Selected results, $ in millions, Three Months Ended Year Ended
except per share data and AUM) December 31, December 31,
U.S. GAAP Financial Measures 2025 2024 % 2025 2024 %
'25-'24 '25-'24
---
Net Revenue $907 $817 11 % $3,099 $3,052 2 %
Financial Advisory $542 $520 4 % $1,834 $1,756 4 %
Asset Management $367 $312 18 % $1,275 $1,187 7 %
Net Income $50 $86 (42 %) $237 $280 (15 %)
Per share, diluted $0.45 $0.80 (44 %) $2.17 $2.68 (19 %)
Adjusted Financial Measures
(2)
---
Net Revenue $892 $812 10 % $3,030 $2,890 5 %
Financial Advisory $542 $508 7 % $1,825 $1,731 5 %
Asset Management $339 $287 18 % $1,166 $1,100 6 %
Net Income $89 $85 5 % $266 $244 9 %
Per share, diluted $0.80 $0.78 3 % $2.44 $2.34 4 %
Assets Under Management (AUM)
($ in billions)
---
Ending AUM $254 $226 12 %
Average AUM $261 $234 12 % $247 $243 2 %
Note: Reconciliations of U.S. GAAP to Adjusted results are shown on pages 14-16. Endnotes are on page 5 of this release.
NET REVENUE
Financial Advisory
For the fourth quarter of 2025, Financial Advisory reported both net revenue and adjusted net revenue2 of $542 million, 4% and 7% higher than the fourth quarter of 2024, respectively.
For the full year of 2025, Financial Advisory reported net revenue and adjusted net revenue2 of $1,834 million and $1,825 million, 4% and 5% higher than the full year 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 fourth quarter of 2025, selected highlights include (clients are in italics):
- Kellanova's $35.9 billion acquisition by Mars
- Constellation Energy's $26.6 billion acquisition of Calpine
- AkzoNobel's $25.0 billion combination with Axalta
- TPG's €6.7 billion acquisition of Techem by Partners Group and a consortium of minority investors including GIC, TPG Rise Climate and Mubadala
- Investindustrial's $2.9 billion acquisition of TreeHouse Foods
- Atlas Holding's $1.0 billion acquisition of ODP Corporation (Office Depot)
- Goodyear Tire & Rubber's $650 million sale of Chemical Business to Gemspring Capital
- Locusview's $525 million acquisition by Itron
- Audi Group's sale of a majority stake in Italdesign to UST Global
- Apollo's acquisition of Prosol Group
- 3Cloud's acquisition by Cognizant
Lazard provides tailored advice, expertise and access to a broad universe of capital providers through our Private Capital Advisory and Capital Solutions practices. Private equity assignments include advising CVC Capital Partners on multiple engagements, Odyssey Investment Partners on a continuation fund, and advising on the closing of EIR Partner's Fund III. In addition, capital structure and debt raising assignments include Lighthouse, NeXtwind, and Ørsted.
Lazard's preeminent restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving Anastasia Beverly Hills, Bourbon, First Brands Group, Pine Gate Renewables, and Superior Industries, and creditor roles involving Modivcare, Saks Global, and SI Group. In addition, our sovereign advisory practice continues to be active in advising governments and sovereign entities across developed and emerging markets.
For a list of publicly announced transactions please visit our website or follow Lazard on LinkedIn.
Asset Management
For the fourth quarter of 2025, Asset Management reported net revenue and adjusted net revenue2 of $367 million and $339 million, respectively, both 18% higher than the fourth quarter of 2024.
Management fees and other revenue, on an adjusted basis2, were $301 million for the fourth quarter of 2025, 17% higher than the fourth quarter of 2024, and 6% higher than the third quarter of 2025.
Incentive fees on an adjusted basis2 were $37 million for the fourth quarter of 2025, compared to $29 million for the fourth quarter of 2024.
Average assets under management (AUM) was $261 billion for the fourth quarter of 2025, 12% higher than the fourth quarter of 2024, and 1% higher than the third quarter of 2025.
For the full year of 2025, Asset Management net revenue and adjusted net revenue2 were $1,275 million and $1,166 million, 7% and 6% higher than the full year of 2024, respectively.
Management fees and other revenue, on an adjusted basis2, were $1,107 million for the full year of 2025, 5% higher than the full year of 2024.
Incentive fees on an adjusted basis2 were $59 million for the full year of 2025, compared to $43 million for the full year of 2024.
Average AUM for the full year of 2025 was $247 billion, 2% higher than the full year of 2024. AUM as of December 31, 2025 was $254 billion, 12% higher than December 31, 2024, and 4% lower than September 30, 2025. The change from December 31, 2024 was driven by market appreciation of $35.0 billion, net outflows of $18.1 billion, and foreign exchange appreciation of $11.1 billion. Excluding one large U.S. sub-advised relationship, net inflows were $8.4 billion for the full year 2025.
OPERATING EXPENSES
Compensation and Benefits Expense
For the fourth quarter of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis2 was $638 million and $585 million, respectively, compared to $534 million and $533 million, respectively, for the fourth quarter of 2024. The adjusted compensation ratio3 for the fourth quarter of 2025 was 65.5%, compared to the fourth-quarter 2024 ratio of 65.6%.
For the full year of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis2 was $2,085 million and $1,985 million, respectively, compared to $2,003 million and $1,903 million, respectively, for the full year of 2024. The adjusted compensation ratio3 for the full year of 2025 was 65.5%, compared to 65.9% for the full year of 2024.
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 fourth quarter of 2025, non-compensation expenses on a U.S. GAAP basis were $183 million, in line with the fourth quarter of 2024. On an adjusted basis2, non-compensation expenses were $159 million, 3% higher than the fourth quarter of 2024.
The adjusted non-compensation ratio4 was 17.8% for the fourth quarter of 2025, compared to 19.0% for the fourth quarter of 2024.
For the full year of 2025, non-compensation expenses on a U.S. GAAP basis were $705 million, 5% higher than the full year of 2024. On an adjusted basis2, non-compensation expenses were $613 million, 7% higher than the full year of 2024.
The adjusted non-compensation ratio4 was 20.2% for the full year of 2025, compared to 19.9% for the full year of 2024.
As part of our Lazard 2030 vision and long-term growth strategy, we aim to deliver an adjusted non-compensation ratio4 between 16% to 20%, with timing dependent on market conditions.
TAXES
The provision for income taxes on a U.S. GAAP and an adjusted basis2 was $31 million and $37 million, respectively, for the fourth quarter of 2025, which equates to an effective tax rate of 36.2% on a U.S. GAAP basis and 29.5% on an adjusted basis2.
The provision for income taxes on a U.S. GAAP and an adjusted basis2 was $77 million and $78 million, respectively, for the full year of 2025, which equates to an effective tax rate of 23.4% on a U.S. GAAP basis and 22.7% on an adjusted basis2.
CAPITAL MANAGEMENT AND BALANCE SHEET
In the fourth quarter of 2025, Lazard returned $98 million to shareholders, which included: $47 million in dividends; $50 million in repurchases of our common stock; and $0.4 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.
In the full year of 2025, Lazard returned $393 million to shareholders, which included: $187 million in dividends; $91 million in repurchases of our common stock; and $115 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.
In the fourth quarter of 2025, we repurchased 1.0 million shares at an average price of $49.12. During the full year of 2025, we repurchased 1.9 million shares at an average price of $47.97. As of December 31, 2025, our total outstanding share repurchase authorization was approximately $109 million.
On January 28, 2026, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on February 20, 2026, to stockholders of record on February 9, 2026.
Lazard's financial position remains strong. As of December 31, 2025, our cash and cash equivalents were $1,469 million.
ENDNOTES
1
Revenue per MD is calculated as Financial Advisory adjusted net revenue divided by the average number of Financial Advisory Managing Directors.
2 A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding 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.
3
A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.
4
A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.
CONFERENCE CALL
Lazard will host a conference call at 8:00 a.m. ET on January 29, 2026, to discuss the company's financial results for the fourth quarter and full year of 2025. The conference call can be accessed via a live audio webcast available through Lazard's Investor Relations website at www.lazard.com, or by dialing +1 800-445-7795 (toll-free, 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: LAZQ425.
A replay of the conference call will be available by 10:00 a.m. ET, January 29, 2026, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-839-5109 (toll-free, U.S. and Canada) or +1 402-220-2688 (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.
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
December 31, September 30, December 31, September
30, December 31,
($ in thousands, except per share data) 2025 2025 2024 2025 2024
REVENUE
Total revenue $929,378 $770,764 $839,018 21 % 11 %
Interest expense (22,657) (22,686) (22,149)
Net revenue 906,721 748,078 816,869 21 % 11 %
OPERATING EXPENSES
Compensation and benefits 637,694 498,212 534,423 28 % 19 %
Occupancy and equipment 31,579 31,908 33,798
Marketing and business development 35,077 26,085 28,572
Technology and information services 48,845 48,862 47,573
Professional services 23,708 20,951 23,954
Fund administration and outsourced services 33,077 32,390 25,923
Other 10,418 14,886 23,779
Non-compensation expenses 182,704 175,082 183,599 4 % - %
Provision (benefit) pursuant to tax receivable agreement 1,371 (20,146) (8,237)
Operating expenses 821,769 653,148 709,785 26 % 16 %
Operating income 84,952 94,930 107,084 (11 %) (21 %)
Provision for income taxes 30,738 21,430 28,788 43 % 7 %
Net income 54,214 73,500 78,296 (26 %) (31 %)
Net income (loss) attributable to noncontrolling interests 4,351 2,253 (8,014)
Net income attributable to Lazard, Inc. $49,863 $71,247 $86,310 (30 %) (42 %)
Attributable to Lazard, Inc. Common Stockholders:
Weighted average shares outstanding:
Basic 99,014,231 98,112,393 94,783,104 1 % 4 %
Diluted 107,610,166 108,001,762 106,113,813 - % 1 %
Net income per share:
Basic $0.49 $0.71 $0.89 (31 %) (45 %)
Diluted $0.45 $0.65 $0.80 (31 %) (44 %)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. GAAP - unaudited)
Year Ended
December 31, December 31,
($ in thousands, except per share data) 2025 2024 % Change
REVENUE
Total revenue $3,186,466 $3,139,904 1 %
Interest expense (87,619) (88,067)
Net revenue 3,098,847 3,051,837 2 %
OPERATING EXPENSES
Compensation and benefits 2,085,384 2,003,212 4 %
Occupancy and equipment 132,603 132,935
Marketing and business development 118,486 99,446
Technology and information services 193,195 183,524
Professional services 88,085 87,109
Fund administration and outsourced services 122,066 107,173
Other 50,205 60,203
Non-compensation expenses 704,640 670,390 5 %
Benefit pursuant to tax receivable agreement (18,775) (8,237)
Operating expenses 2,771,249 2,665,365 4 %
Operating income 327,598 386,472 (15 %)
Provision for income taxes 76,578 99,764 (23 %)
Net income 251,020 286,708 (12 %)
Net income attributable to noncontrolling interests 14,189 6,796
Net income attributable to Lazard, Inc. $236,831 $279,912 (15 %)
Attributable to Lazard, Inc. Common Stockholders:
Weighted average shares outstanding:
Basic 97,479,092 93,139,352 5 %
Diluted 106,338,079 102,392,171 4 %
Net income per share:
Basic $2.37 $2.93 (19 %)
Diluted $2.17 $2.68 (19 %)
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL CONDITION
(U.S. GAAP - unaudited)
As of
December 31, December 31,
($ in thousands) 2025 2024
ASSETS
---
Cash and cash equivalents $1,469,416 $1,308,218
Deposits with banks and short-term investments 167,134 268,684
Restricted cash 34,021 32,466
Receivables 897,786 753,623
Investments 625,846 614,947
Property 168,005 160,402
Operating lease right-of-use assets 412,584 434,938
Goodwill and other intangible assets 395,262 393,575
Deferred tax assets 459,087 479,582
Other assets 311,593 347,558
Total Assets $4,940,734 $4,793,993
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY
---
Liabilities
Deposits and other customer payables $330,852 $308,213
Accrued compensation and benefits 794,754 844,953
Operating lease liabilities 485,149 505,483
Senior debt 1,688,086 1,687,052
Other liabilities 652,763 683,509
Total liabilities 3,951,604 4,029,210
Commitments and contingencies
Redeemable noncontrolling interests 78,379 79,629
Stockholders' equity
Preferred stock, par value $.01 per share
-
-
Common stock, par value $.01 per share 1,117 1,128
Additional paid-in capital 340,351 327,810
Retained earnings 1,488,107 1,472,113
Accumulated other comprehensive loss, net of tax (271,509) (326,742)
Subtotal 1,558,066 1,474,309
Common stock held in treasury, at cost (684,411) (838,069)
Total Lazard, Inc. stockholders' equity 873,655 636,240
Noncontrolling interests 37,096 48,914
Total stockholders' equity 910,751 685,154
Total liabilities, redeemable noncontrolling interests and stockholders' equity $4,940,734 $4,793,993
SELECTED SUMMARY FINANCIAL INFORMATION
(Adjusted Basis - Non-GAAP - unaudited)
Three Months Ended
% Change From
December 31, September December 31, September
30, 30, December 31,
($ in thousands, except per share data) 2025 2025 2024 2025 2024
Net Revenue:
Financial Advisory $541,628 $422,279 $507,672 28 % 7 %
Asset Management 338,589 294,189 287,211 15 % 18 %
Corporate 11,892 8,185 17,550 45 % (32 %)
Adjusted net revenue $892,109 $724,653 $812,433 23 % 10 %
Expenses:
Adjusted compensation and benefits expense $584,659 $474,647 $532,563 23 % 10 %
Adjusted compensation ratio (a) 65.5 % 65.5 % 65.6 %
Adjusted non-compensation expenses $158,890 $148,665 $154,002 7 % 3 %
Adjusted non-compensation ratio (b) 17.8 % 20.5 % 19.0 %
Earnings:
Adjusted operating income $148,560 $101,341 $125,868 47 % 18 %
Adjusted operating margin (c) 16.7 % 14.0 % 15.5 %
Adjusted net income $88,771 $61,872 $84,929 43 % 5 %
Adjusted diluted net income per share $0.80 $0.56 $0.78 43 % 3 %
Adjusted diluted weighted average shares (d) 111,064,073 110,354,682 108,357,556 1 % 2 %
Adjusted effective tax rate (e) 29.5 % 21.4 % 18.1 %
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules.
__________________________________________________________________________________________________________
See Notes to Financial Schedules
SELECTED SUMMARY FINANCIAL INFORMATION
(Adjusted Basis - Non-GAAP - unaudited)
Year Ended
December 31, December 31,
($ in thousands, except per share data) 2025 2024 % Change
Net Revenue:
Financial Advisory $1,824,809 $1,731,049 5 %
Asset Management 1,165,763 1,099,874 6 %
Corporate 39,241 58,631 (33 %)
Adjusted net revenue $3,029,813 $2,889,554 5 %
Expenses:
Adjusted compensation and benefits expense $1,984,855 $1,903,463 4 %
Adjusted compensation ratio (a) 65.5 % 65.9 %
Adjusted non-compensation expenses $612,808 $575,146 7 %
Adjusted non-compensation ratio (b) 20.2 % 19.9 %
Earnings:
Adjusted operating income $432,150 $410,945 5 %
Adjusted operating margin (c) 14.3 % 14.2 %
Adjusted net income $266,364 $244,110 9 %
Adjusted diluted net income per share $2.44 $2.34 4 %
Adjusted diluted weighted average shares (d) 108,947,912 104,398,248 4 %
Adjusted effective tax rate (e) 22.7 % 24.4 %
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules.
__________________________________________________________________________________________________________
See Notes to Financial Schedules
COMPENSATION AND BENEFITS EXPENSE - ANALYSIS
(Adjusted Basis - Non-GAAP - unaudited)
Year Ended
December 31,
($ in millions) 2025 2024 2023 2022 2021 2020 2019
Base salary $579 $547 $558 $535 $487 $455 $447
Benefits and other 396 345 291 293 287 228 258
Current cash incentive compensation (f) 583 587 365 458 662 435 391
Total cash compensation, benefits and other 1,558 1,479 1,213 1,286 1,436 1,118 1,096
Amortization of deferred incentive awards 427 424 489 371 400 384 368
Adjusted compensation and benefits expense $1,985 $1,903 $1,703 $1,657 $1,836 $1,502 $1,464
Adjusted compensation ratio (a) 65.5 % 65.9 % 69.8 % 59.8 % 58.5 % 59.5 % 57.5 %
Memo:
Adjusted net revenue $3,030 $2,890 $2,440 $2,769 $3,139 $2,524 $2,546
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.
__________________________________________________________________________________________________________
See Notes to Financial Schedules
ASSETS UNDER MANAGEMENT
(unaudited)
As of
% Change From
December 31, September 30, December 31, September
30, December 31,
($ in millions) 2025 2025 2024 2025 2024
Equity:
Emerging Markets $41,121 $37,737 $27,926 9.0 % 47.2 %
Global 69,192 66,695 49,058 3.7 % 41.0 %
Local 36,973 52,445 49,750 (29.5 %) (25.7 %)
Multi-Regional 51,970 51,633 48,204 0.7 % 7.8 %
Total Equity 199,256 208,510 174,938 (4.4 %) 13.9 %
Fixed Income:
Emerging Markets 4,856 5,191 6,919 (6.5 %) (29.8 %)
Global 12,038 12,625 11,138 (4.6 %) 8.1 %
Local 5,166 5,268 5,617 (1.9 %) (8.0 %)
Multi-Regional 23,582 24,102 19,612 (2.2 %) 20.2 %
Total Fixed Income 45,642 47,186 43,286 (3.3 %) 5.4 %
Alternative Investments 3,842 3,616 2,917 6.3 % 31.7 %
Private Wealth Alternative Investments 3,343 3,163 3,097 5.7 % 7.9 %
Private Equity 1,576 1,477 1,514 6.7 % 4.1 %
Cash Management 641 585 569 9.6 % 12.7 %
Total AUM $254,300 $264,537 $226,321 (3.9 %) 12.4 %
Three Months Ended
Year Ended
December 31, September 30, December 31, December 31, December 31,
2025 2025 2024 2025 2024
AUM - Beginning of Period $264,537 $248,360 $247,657 $226,321 $246,651
Net Flows (19,713) 4,575 (10,068) (18,120) (35,676)
Market and foreign exchange
appreciation (depreciation) 9,476 11,602 (11,268) 46,099 15,346
AUM - End of Period $254,300 $264,537 $226,321 $254,300 $226,321
Average AUM $261,075 $257,358 $233,813 $246,851 $243,003
% Change in Average AUM 1.4 % 11.7 % 1.6 %
Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.
RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS
(unaudited)
Three Months Ended
Year Ended
December 31, September 30, December 31, December 31, December 31,
($ in thousands) 2025 2025 2024 2025 2024
Net Revenue
Financial Advisory net revenue - U.S. GAAP $542,303 $427,335 $520,451 $1,834,303 $1,756,183
Adjustments:
Reimbursable deal costs, provision for credit losses and
other (g) (601) (5,061) (12,780) (9,433) (25,764)
Interest expense (credit) (h) (74) 5 1 (61) 43
Losses associated with cost-saving initiatives (i)
-
-
-
- 587
Adjusted Financial Advisory net revenue $541,628 $422,279 $507,672 $1,824,809 $1,731,049
Asset Management net revenue - U.S. GAAP $367,119 $327,029 $312,136 $1,274,726 $1,186,977
Adjustments:
Noncontrolling interests and similar arrangements (j) (7,432) (12,765) (8,893) (32,272) (22,214)
Distribution fees and other (g) (21,102) (20,083) (16,038) (76,712) (64,901)
Interest expense (h) 4 8 6 21 12
Adjusted Asset Management net revenue $338,589 $294,189 $287,211 $1,165,763 $1,099,874
Corporate net revenue - U.S. GAAP ($2,701) ($6,286) ($15,718) ($10,182) $108,677
Adjustments:
Noncontrolling interests and similar arrangements (j) (4,312) (3,327) 2,476 (13,575) (7,339)
(Gains) losses related to Lazard Fund Interests ("LFI")
and similar arrangements (k) (3,749) (4,823) 8,728 (24,324) (16,176)
Interest expense (h) 22,654 22,621 22,064 87,322 87,740
Gain on sale of property (l)
-
-
-
- (114,271)
Adjusted Corporate net revenue $11,892 $8,185 $17,550 $39,241 $58,631
Net revenue - U.S. GAAP $906,721 $748,078 $816,869 $3,098,847 $3,051,837
Adjustments:
Noncontrolling interests and similar arrangements (j) (11,744) (16,092) (6,417) (45,847) (29,553)
(Gains) losses related to Lazard Fund Interests ("LFI")
and similar arrangements (k) (3,749) (4,823) 8,728 (24,324) (16,176)
Distribution fees, reimbursable deal costs, provision
for credit losses and other (g) (21,703) (25,144) (28,818) (86,145) (90,665)
Interest expense (h) 22,584 22,634 22,071 87,282 87,795
Losses associated with cost-saving initiatives (i)
-
-
-
- 587
Gain on sale of property (l)
-
-
-
- (114,271)
Adjusted net revenue $892,109 $724,653 $812,433 $3,029,813 $2,889,554
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.
__________________________________________________________________________________________________________
See Notes to Financial Schedules
RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS
(unaudited)
Three Months Ended
Year Ended
December 31, September 30, December 31, December 31, December 31,
($ in thousands, except per share data) 2025 2025 2024 2025 2024
Compensation and Benefits Expense
Compensation and benefits expense - U.S. GAAP $637,694 $498,212 $534,423 $2,085,384 $2,003,212
Adjustments:
Noncontrolling interests and similar arrangements (j) (5,310) (12,594) (13,707) (26,081) (19,961)
(Charges) credits pertaining to LFI and similar
arrangements (m) (3,749) (4,823) 8,728 (24,324) (16,176)
Expenses associated with senior management transition
(n) (43,976) (6,148)
- (50,124)
-
Expenses associated with cost-saving initiatives
-
-
-
- (46,610)
Expenses associated with sale of property (o)
-
- 3,119
- (17,002)
Adjusted compensation and benefits expense $584,659 $474,647 $532,563 $1,984,855 $1,903,463
Non-Compensation Expenses
Non-compensation expenses - U.S. GAAP $182,704 $175,082 $183,599 $704,640 $670,390
Adjustments:
Noncontrolling interests and similar arrangements (j) (2,085) (1,246) (726) (5,582) (2,805)
Distribution fees, reimbursable deal costs, provision
for credit losses and other (g) (21,703) (25,144) (28,818) (86,145) (90,665)
Amortization and other acquisition-related costs (26) (27) (53) (105) (242)
Expenses associated with cost-saving initiatives
-
-
-
- (1,532)
Adjusted non-compensation expenses $158,890 $148,665 $154,002 $612,808 $575,146
Operating Income
Operating income - U.S. GAAP $84,952 $94,930 $107,084 $327,598 $386,472
Adjustments:
Noncontrolling interests and similar arrangements (j) (4,349) (2,252) 8,016 (14,184) (6,787)
Interest expense (h) 22,584 22,634 22,071 87,282 87,795
Amortization and other acquisition-related costs 26 27 53 105 242
Expenses associated with senior management transition
(n) 43,976 6,148
- 50,124
-
Losses associated with cost-saving initiatives (i)
-
-
-
- 587
Expenses associated with cost-saving initiatives
-
-
-
- 48,142
Gain on sale of property (l)
-
-
-
- (114,271)
Expenses associated with sale of property (o)
-
- (3,119)
- 17,002
Provision (benefit) pursuant to tax receivable
agreement obligation ("TRA") (p) 1,371 (20,146) (8,237) (18,775) (8,237)
Adjusted operating income $148,560 $101,341 $125,868 $432,150 $410,945
Provision for Income Taxes
Provision for income taxes - U.S. GAAP $30,738 $21,430 $28,788 $76,578 $99,764
Adjustment:
Tax effect of adjustments 6,439 (4,623) (9,975) 1,816 (20,972)
Adjusted provision for income taxes $37,177 $16,807 $18,813 $78,394 $78,792
Net Income attributable to Lazard, Inc.
Net income attributable to Lazard, Inc. - U.S. GAAP $49,863 $71,247 $86,310 $236,831 $279,912
Adjustments:
Expenses associated with senior management transition
(n) 43,976 6,148
- 50,124
-
Losses associated with cost-saving initiatives (i)
-
-
-
- 587
Expenses associated with cost-saving initiatives
-
-
-
- 48,142
Gain on sale of property (l)
-
-
-
- (114,271)
Expenses associated with sale of property (o)
-
- (3,119)
- 17,002
Provision (benefit) pursuant to tax receivable
agreement obligation ("TRA") (p) 1,371 (20,146) (8,237) (18,775) (8,237)
Noncontrolling interests effect of adjustments
-
-
-
- 3
Tax effect of adjustments (6,439) 4,623 9,975 (1,816) 20,972
Adjusted net income $88,771 $61,872 $84,929 $266,364 $244,110
Diluted Weighted Average Shares Outstanding
Diluted weighted average shares outstanding - U.S. GAAP 107,610,166 108,001,762 106,113,813 106,338,079 102,392,171
Adjustment:
Participating securities including profits interest
participation rights and other 3,453,907 2,352,920 2,243,743 2,609,833 2,006,077
Adjusted diluted weighted average shares outstanding (d) 111,064,073 110,354,682 108,357,556 108,947,912 104,398,248
Diluted Net Income per Share
Diluted net income per share - U.S. GAAP $0.45 $0.65 $0.80 $2.17 $2.68
Diluted net income effect of adjustments 0.35 (0.09) (0.02) 0.27 (0.34)
Adjusted net income per share $0.80 $0.56 $0.78 $2.44 $2.34
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.
__________________________________________________________________________________________________________
See Notes to Financial Schedules
RECONCILIATION OF NON-COMPENSATION EXPENSES U.S. GAAP TO ADJUSTED
(unaudited)
Three Months Ended
Year Ended
December 31, September
30, December 31, December 31, December 31,
($ in thousands) 2025 2025 2024 2025 2024
Non-compensation expenses - U.S. GAAP:
Occupancy and equipment $31,579 $31,908 $33,798 $132,603 $132,935
Marketing and business development 35,077 26,085 28,572 118,486 99,446
Technology and information services 48,845 48,862 47,573 193,195 183,524
Professional services 23,708 20,951 23,954 88,085 87,109
Fund administration and outsourced services 33,077 32,390 25,923 122,066 107,173
Other 10,418 14,886 23,779 50,205 60,203
Non-compensation expenses - U.S. GAAP $182,704 $175,082 $183,599 $704,640 $670,390
Non-compensation expenses - Adjustments:
Occupancy and equipment (j) ($99) ($98) ($93) ($387) ($1,849)
Marketing and business development (g) (j) (5,885) (3,989) (4,501) (16,563) (12,588)
Technology and information services (g) (j) (52) (39) (30) (154) (180)
Professional services (g) (j) (1,310) (957) (1,368) (4,934) (4,596)
Fund administration and outsourced services (g) (j) (19,121) (18,814) (14,942) (71,522) (62,226)
Other (g) (j) 2,653 (2,520) (8,662) 1,728 (13,805)
Non-compensation expenses - Adjustments ($23,814) ($26,417) ($29,596) ($91,832) ($95,244)
Adjusted non-compensation expenses:
Occupancy and equipment $31,480 $31,810 $33,705 $132,216 $131,086
Marketing and business development 29,192 22,096 24,071 101,923 86,858
Technology and information services 48,793 48,823 47,543 193,041 183,344
Professional services 22,398 19,994 22,586 83,151 82,513
Fund administration and outsourced services 13,956 13,576 10,980 50,544 44,947
Other 13,071 12,366 15,117 51,933 46,398
Adjusted non-compensation expenses $158,890 $148,665 $154,002 $612,808 $575,146
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.
__________________________________________________________________________________________________________
See Notes to Financial Schedules
Notes to Financial Schedules
(a)
A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.
(b)
A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.
(c)
A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue.
(d) A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain
conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights may be excluded from the computations to U.S. GAAP net income per share. In addition, this
measure includes the dilutive effect of the weighted average number of shares of common stock issuable from share-based compensation programs.
(e) A non-GAAP measure which represents the adjusted provision for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs.
Three Months Ended
Year Ended
($ in thousands) December 31, September 30, December 31, December 31, December 31,
2025 2025 2024 2025 2024
Adjusted provision for income taxes $37,177 $16,807 $18,813 $78,394 $78,792
Adjusted operating income less interest expense, amortization and other acquisition-
related costs $125,950 $78,680 $103,744 $344,763 $322,908
Adjusted effective tax rate 29.5 % 21.4 % 18.1 % 22.7 % 24.4 %
(f)
Current cash incentive compensation is composed of cash bonuses for a given year which are paid early in the following year, and for which no future service is required.
(g) Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs, and provision for credit losses relating to fees and other receivables that are deemed
uncollectible, for which an equal amount is excluded for purposes of determining adjusted non-compensation expenses and included for purposes of determining adjusted net revenue.
(h) Interest expense (credit), excluding interest expense incurred by Lazard Frères Banque SA ("LFB"), is added back in determining adjusted net revenue because such expense relates to corporate financing
activities and is not considered to be a cost directly related to the revenue of our business.
(i) Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, primarily consisting of the reclassification of currency translation adjustments to earnings from
accumulated other comprehensive loss.
(j)
(Revenue) loss and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.
(k) Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation
and benefits expense.
(l)
Represents gain on the sale of an owned office building.
(m) Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is
excluded from adjusted net revenue.
(n)
Represents expenses associated with the departure of certain executive officers.
(o)
Represents estimated statutory profit-sharing expenses associated with the sale of an owned office building.
(p)
Represents the effect of the periodic revaluation of the TRA liability.
Media Contact: Shannon Houston +1 212 632
6880 shannon.houston@lazard.com
Investor Contact: Alexandra +1 212 632
Deignan 6886 alexandra.deignan@lazard.com
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SOURCE Lazard
