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 Measures
(1)
---
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 30th 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, $64,597 $42,745 $78,680 $138,338 $218,813
amortization and other acquisition-
related costs
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
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SOURCE Lazard
