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Lazard Inc

Lazard Reports First-Quarter 2025 Results

  • Financial Advisory Managing Directors total 210, achieving hiring and promotion goals outlined in the Lazard 2030 Strategic Plan
  • Asset Management launched three active ETFs in the United States, increasing our offerings to meet investor demand and preferences
  • Announced strategic alliance with Arini Capital Management, further expanding Lazard’s connectivity to private capital across Europe

NEW YORK--(BUSINESS WIRE)--Apr. 25, 2025-- Lazard, Inc. (NYSE: LAZ) today reported net revenue of $648 million and adjusted net revenue1 of $643 million for the quarter ended March 31, 2025.

On both a U.S. GAAP and an adjusted basis1, Lazard reported first-quarter 2025 net income of $60 million or $0.56 per share, diluted.

“First quarter performance was solid in the midst of an uncertain business environment,” said Peter R. Orszag, CEO and Chairman. “Throughout our history, we've maintained an unwavering focus on serving our clients, leveraging Lazard's unparalleled global reach and deep expertise at the intersection of business and geopolitics. We continue to have substantial client engagement, while also progressing towards our Lazard 2030 long-term growth strategy.”

(Selected results, $ in millions,

Three Months Ended

except per share data and AUM)

March 31,

U.S. GAAP Financial Measures

2025

 

2024

 

% ’25-’24

Net Revenue

$648

 

$765

 

(15%)

Financial Advisory

$367

 

$454

 

(19%)

Asset Management

$288

 

$295

 

(2%)

 

 

 

 

 

 

Net Income

$60

 

$36

 

69%

Per share, diluted

$0.56

 

$0.35

 

60%

 

 

 

 

 

 

Adjusted Financial Measures1

 

 

 

 

 

Net Revenue

$643

 

$747

 

(14%)

Financial Advisory

$370

 

$447

 

(17%)

Asset Management

$264

 

$276

 

(4%)

 

 

 

 

 

 

Net Income

$60

 

$67

 

(9%)

Per share, diluted

$0.56

 

$0.66

 

(15%)

 

 

 

 

 

 

Assets Under Management (AUM)

($ in billions)

 

 

 

 

 

Ending AUM

$227

 

$250

 

(9%)

Average AUM

$231

 

$247

 

(7%)

 

 

 

 

 

 

 

Note: Reconciliations of U.S. GAAP to Adjusted results are shown on pages 11-13. Endnotes are on page 5 of this release.

NET REVENUE

Financial Advisory

For the first quarter of 2025, Financial Advisory reported net revenue and adjusted net revenue1 of $367 million and $370 million, 19% and 17% lower than the first quarter 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 first quarter of 2025, selected highlights include (clients are in italics): CD&R’s €16 billion acquisition of a controlling 50% stake in Sanofi consumer health unit, Opella; Pactiv Evergreen’s$6.7 billion acquisition by Novolex, a portfolio company of Apollo; Mallinckrodt Pharmaceuticals’ $6.7 billion combination with Endo Pharmaceuticals; Sun Communities’$5.7 billion sale of Safe Harbor Marinas to Blackstone Infrastructure; Just Eat Takeaway.com’s €4.1 billion recommended public offer by Prosus; Warburg Pincus and Berkshire Partners'$3.0 billion acquisition of Triumph; CD&R's €2.7 billion acquisition and delisting of Exclusive Networks, in consortium with Permira; Galapagos’ €2.5 billion planned separation into two publicly-traded entities; Assura’s $2.1 billion recommended cash offer from KKR and Stonepeak; Macquarie Asset Management’s agreement to invest up to $1.7 billion in DE Shaw Renewable Investments; Siete Foods’$1.2 billion acquisition by PepsiCo; Société Générale’s €1.1 billion sale of professional equipment financing business to BPCE; Acciona Energía’s sale of 626MW hydro portfolio in Spain to Endesa for €1.0 billion; Ceva Santé Animale on renewing its shareholder structure; Tenneco on a strategic investment from Apollo into its Clean Air and Powertrain businesses; Kering on its investment agreement with Ardian for real estate assets in Paris; Thrive Operations on its investment from Berkshire Partners and Court Square Capital and Technosylva Group’s investment from General Atlantic's BeyondNetZero Fund.

Lazard’s premier Restructuring and Liability Management practice, which provides broad coverage across debtor and creditor activities along with innovative solutions for clients, has been engaged in a number of complex assignments that include company roles involving Altice France, GiFi, Global Clean Energy Holdings and Zachry Group and creditor and/or related party roles involving Accuride, EmployBridge, Franchise Group, Lowell, OQ Chemicals and Oregon Tool.

Lazard provides tailored advice, expertise and access to a broad universe of capital providers through our Private Capital Advisory and Capital Solutions practices. Highlighted assignments include advising Banneker Partners and Crestview Partners on continuation funds led by investments from Accel-KKR and Apollo S3, respectively; Grosvenor on its sale of 25% of a portfolio of properties valued at £1.2 billion to Norges Bank; Level Equity on its $1.4 billion capital raising for Level Equity Growth Partners VI and Level Equity Opportunities Fund 2025; Umm Al Qura for Development & Construction’s initial public offering at a market capitalization of $5.8 billion and Viridien’s $450 million and €475 million issuance of senior secured notes, and $125 million issuance of a super senior revolving credit facility.

Lazard is a sought-after financial advisor for governments and public sector entities across developed and emerging markets worldwide, including assignments in the quarter for the governments of Ethiopia and Morocco.

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

Asset Management

For the first quarter of 2025, Asset Management net revenue and adjusted net revenue1 were $288 million and $264 million, 2% and 4% lower than the first quarter of 2024, respectively.

Management fees and other revenue, on an adjusted basis1, were $256 million for the first quarter of 2025, 5% lower than the first quarter of 2024, and 1% lower than the fourth quarter of 2024.

Incentive fees on an adjusted basis1 were $9 million for the first quarter of 2025, compared to $8 million for the first quarter of 2024.

Average assets under management (AUM) was $231 billion for the first quarter of 2025, 7% lower than the first quarter of 2024, and 1% lower than the fourth quarter of 2024.

AUM as of March 31, 2025 was $227 billion, in line with December 31, 2024 and 9% lower than March 31, 2024. The sequential change from December 31, 2024 was driven by market appreciation of $0.8 billion, foreign exchange appreciation of $3.9 billion and net outflows of $3.7 billion.

OPERATING EXPENSES

Compensation and Benefits Expense

For the first quarter of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis1 was $430 million and $421 million, respectively, compared to $551 million and $493 million, respectively, for the first quarter of 2024. The adjusted compensation ratio2 for the first quarter of 2025 was 65.5%, compared to the first-quarter 2024 ratio of 66.0%.

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

Non-Compensation Expenses

For the first quarter of 2025, non-compensation expenses on a U.S. GAAP basis were $163 million, 2% higher than the first quarter of 2024. On an adjusted basis1, non-compensation expenses were $148 million, 10% higher than the first quarter of 2024.

The adjusted non-compensation ratio3 was 23.0% for the first quarter of 2025, compared to 18.0% for the first quarter of 2024.

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

TAXES

The benefit for income taxes on a U.S. GAAP and an adjusted basis1 were both $7 million for the first quarter of 2025, which equates to an effective tax rate of (13.9%) on an adjusted basis1. First quarter 2025 income tax includes a discrete tax benefit related to stock-based compensation awards that vested in the first quarter.

CAPITAL MANAGEMENT AND BALANCE SHEET

In the first quarter of 2025, Lazard returned $175 million to shareholders, which included: $45 million in dividends; $36 million in repurchases of our common stock; and $94 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

During the first quarter of 2025, we repurchased 0.8 million shares at an average price of $46.73. As of March 31, 2025, our total outstanding share repurchase authorization was approximately $164 million.

On April 24, 2025, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on May 16, 2025, to stockholders of record on May 5, 2025.

Lazard’s financial position remains strong. As of March 31, 2025, our cash and cash equivalents were $909 million.

ENDNOTES

1

A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is a meaningful and useful way to compare our operating results across periods.

 

2

A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.

 

3

A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.

CONFERENCE CALL

Lazard will host a conference call at 8:00 a.m. ET on April 25, 2025, to discuss the company’s financial results for the first-quarter 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: LAZQ125.

A replay of the conference call will be available by 10:00 a.m. ET, April 25, 2025, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-753-5212 (toll-free, U.S. and Canada) or +1 402-220-2673 (outside of the U.S. and Canada).

ABOUT LAZARD

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

Cautionary Note Regarding Forward-Looking Statements:

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

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including the following:

  • Adverse general economic conditions or adverse conditions in global or regional financial markets;
  • Changes in international trade policies and practices including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, and the economic impacts, volatility and uncertainty resulting therefrom;
  • A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);
  • Losses caused by financial or other problems experienced by third parties;
  • Losses due to unidentified or unanticipated risks;
  • A lack of liquidity, i.e., ready access to funds, for use in our businesses;
  • Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels; and
  • Changes in relevant tax laws, regulations or treaties or an adverse interpretation of those items

These risks and uncertainties are not exhaustive. Our SEC reports describe additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

As a result, there can be no assurance that the forward-looking statements included in this release will prove to be accurate or correct. Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

LAZ-EPE

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP - unaudited)

 

 

Three Months Ended

 

% Change From

 

March 31,

 

December 31,

 

March 31,

 

December 31,

 

March 31,

($ in thousands, except per share data)

2025

 

2024

 

2024

 

2024

 

2024

 

 

 

 

 

 

 

 

 

 

Total revenue

$669,164

 

 

$839,018

 

 

$785,481

 

 

(20

%)

 

(15

%)

Interest expense

(21,113

)

 

(22,149

)

 

(20,728

)

 

 

 

 

Net revenue

648,051

 

 

816,869

 

 

764,753

 

 

(21

%)

 

(15

%)

Operating expenses:

 

 

 

 

 

 

 

 

 

Compensation and benefits

430,270

 

 

534,423

 

 

550,824

 

 

(19

%)

 

(22

%)

 

 

 

 

 

 

 

 

 

 

Occupancy and equipment

35,413

 

 

33,798

 

 

32,857

 

 

 

 

 

Marketing and business development

27,731

 

 

28,572

 

 

23,599

 

 

 

 

 

Technology and information services

46,216

 

 

47,573

 

 

44,917

 

 

 

 

 

Professional services

18,837

 

 

23,954

 

 

19,880

 

 

 

 

 

Fund administration and outsourced services

26,545

 

 

25,923

 

 

26,140

 

 

 

 

 

Other

8,404

 

 

23,779

 

 

11,975

 

 

 

 

 

Non-compensation expenses

163,146

 

 

183,599

 

 

159,368

 

 

(11

%)

 

2

%

Benefit pursuant to tax receivable agreement

–

 

 

(8,237

)

 

–

 

 

 

 

 

Operating expenses

593,416

 

 

709,785

 

 

710,192

 

 

(16

%)

 

(16

%)

 

 

 

 

 

 

 

 

 

 

Operating income

54,635

 

 

107,084

 

 

54,561

 

 

(49

%)

 

–

%

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

(7,354

)

 

28,788

 

 

14,337

 

 

NM

 

 

NM

 

Net income

61,989

 

 

78,296

 

 

40,224

 

 

(21

%)

 

54

%

Net income (loss) attributable to noncontrolling interests

1,614

 

 

(8,014

)

 

4,469

 

 

 

 

 

Net income attributable to Lazard, Inc.

$60,375

 

 

$86,310

 

 

$35,755

 

 

(30

%)

 

69

%

 

 

 

 

 

 

 

 

 

 

Attributable to Lazard, Inc. Common Stockholders:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

95,255,423

 

 

94,783,104

 

 

91,260,465

 

 

–

%

 

4

%

Diluted

104,828,753

 

 

106,113,813

 

 

99,351,769

 

 

(1

%)

 

6

%

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

$0.61

 

 

$0.89

 

 

$0.38

 

 

(31

%)

 

61

%

Diluted

$0.56

 

 

$0.80

 

 

$0.35

 

 

(30

%)

 

60

%

CONDENSED CONSOLIDATED

STATEMENT OF FINANCIAL CONDITION

(U.S. GAAP - unaudited)

 

 

As of

 

March 31,

 

December 31,

($ in thousands)

2025

 

2024

 

 

 

 

ASSETS

 

 

 

 

Cash and cash equivalents

$908,586

 

 

$1,308,218

 

Deposits with banks and short-term investments

264,944

 

 

268,684

 

Restricted cash

34,252

 

 

32,466

 

Receivables

683,004

 

 

753,623

 

Investments

506,497

 

 

614,947

 

Property

168,190

 

 

160,402

 

Operating lease right-of-use assets

430,502

 

 

434,938

 

Goodwill and other intangible assets

394,103

 

 

393,575

 

Deferred tax assets

496,848

 

 

479,582

 

Other assets

345,141

 

 

347,558

 

 

 

 

 

Total Assets

$4,232,067

 

 

$4,793,993

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Deposits and other customer payables

$335,380

 

 

$308,213

 

Accrued compensation and benefits

248,194

 

 

844,953

 

Operating lease liabilities

503,875

 

 

505,483

 

Tax receivable agreement obligation

75,826

 

 

75,899

 

Senior debt

1,687,841

 

 

1,687,052

 

Other liabilities

648,587

 

 

607,610

 

Total liabilities

3,499,703

 

 

4,029,210

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable noncontrolling interests

83,811

 

 

79,629

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Preferred stock, par value $.01 per share

–

 

 

–

 

Common stock, par value $.01 per share

1,128

 

 

1,128

 

Additional paid-in capital

131,697

 

 

327,810

 

Retained earnings

1,477,662

 

 

1,472,113

 

Accumulated other comprehensive loss, net of tax

(306,766

)

 

(326,742

)

Subtotal

1,303,721

 

 

1,474,309

 

Common stock held by subsidiaries, at cost

(700,693

)

 

(838,069

)

Total Lazard, Inc. stockholders’ equity

603,028

 

 

636,240

 

Noncontrolling interests

45,525

 

 

48,914

 

Total stockholders’ equity

648,553

 

 

685,154

 

 

 

 

 

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

$4,232,067

 

 

$4,793,993

 

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Adjusted Basis - Non-GAAP - unaudited)

 

 

Three Months Ended

 

% Change From

 

March 31,

 

December 31,

 

March 31,

 

December 31,

 

March 31,

($ in thousands, except per share data)

2025

 

2024

 

2024

 

2024

 

2024

 

 

 

 

 

 

 

 

 

 

Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisory

$369,543

 

 

$507,672

 

 

$446,634

 

 

(27

%)

 

(17

%)

Asset Management

264,494

 

 

287,211

 

 

275,934

 

 

(8

%)

 

(4

%)

Corporate

9,148

 

 

17,550

 

 

23,997

 

 

(48

%)

 

(62

%)

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue

$643,185

 

 

$812,433

 

 

$746,565

 

 

(21

%)

 

(14

%)

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$421,286

 

 

$532,563

 

 

$492,733

 

 

(21

%)

 

(15

%)

Adjusted compensation ratio (b)

65.5

%

 

65.6

%

 

66.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses

$147,882

 

 

$154,002

 

 

$134,293

 

 

(4

%)

 

10

%

Adjusted non-compensation ratio (c)

23.0

%

 

19.0

%

 

18.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$74,017

 

 

$125,868

 

 

$119,539

 

 

(41

%)

 

(38

%)

Adjusted operating margin (d)

11.5

%

 

15.5

%

 

16.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$60,375

 

 

$84,929

 

 

$66,606

 

 

(29

%)

 

(9

%)

 

 

 

 

 

 

 

 

 

 

Adjusted diluted net income per share

$0.56

 

 

$0.78

 

 

$0.66

 

 

(28

%)

 

(15

%)

 

 

 

 

 

 

 

 

 

 

Adjusted diluted weighted average shares (e)

107,676,233

 

 

108,357,556

 

 

101,532,219

 

 

(1

%)

 

6

%

 

 

 

 

 

 

 

 

 

 

Adjusted effective tax rate (f)

(13.9

%)

 

18.1

%

 

32.6

%

 

 

 

 

 

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

 

March 31,

 

December 31,

 

March 31,

 

December 31,

 

March 31,

($ in millions)

2025

 

2024

 

2024

 

2024

 

2024

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

Emerging Markets

$28,830

 

 

$27,926

 

 

$24,779

 

 

3.2

%

 

16.3

%

Global

49,886

 

 

49,058

 

 

55,544

 

 

1.7

%

 

(10.2

%)

Local

46,415

 

 

49,750

 

 

54,841

 

 

(6.7

%)

 

(15.4

%)

Multi-Regional

48,999

 

 

48,204

 

 

60,089

 

 

1.6

%

 

(18.5

%)

Total Equity

174,130

 

 

174,938

 

 

195,253

 

 

(0.5

%)

 

(10.8

%)

Fixed Income:

 

 

 

 

 

 

 

 

 

Emerging Markets

5,130

 

 

6,919

 

 

9,080

 

 

(25.9

%)

 

(43.5

%)

Global

11,223

 

 

11,138

 

 

10,664

 

 

0.8

%

 

5.2

%

Local

5,637

 

 

5,617

 

 

6,378

 

 

0.4

%

 

(11.6

%)

Multi-Regional

22,034

 

 

19,612

 

 

21,098

 

 

12.3

%

 

4.4

%

Total Fixed Income

44,024

 

 

43,286

 

 

47,220

 

 

1.7

%

 

(6.8

%)

Alternative Investments

3,132

 

 

2,917

 

 

3,201

 

 

7.4

%

 

(2.2

%)

Private Wealth Alternative Investments

3,116

 

 

3,097

 

 

2,643

 

 

0.6

%

 

17.9

%

Private Equity

1,500

 

 

1,514

 

 

1,486

 

 

(0.9

%)

 

0.9

%

Cash Management

1,525

 

 

569

 

 

629

 

 

168.0

%

 

142.4

%

Total AUM

$227,427

 

 

$226,321

 

 

$250,432

 

 

0.5

%

 

(9.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

 

 

2025

 

2024

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM - Beginning of Period

$226,321

 

 

$247,657

 

 

$246,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Flows

(3,659

)

 

(10,068

)

 

(6,630

)

 

 

 

 

Market and foreign exchange appreciation (depreciation)

4,765

 

 

(11,268

)

 

10,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM - End of Period

$227,427

 

 

$226,321

 

 

$250,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average AUM

$230,787

 

 

$233,813

 

 

$246,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change in Average AUM

 

 

(1.3

%)

 

(6.5

%)

 

 

 

 

 

Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)

(unaudited)

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

($ in thousands)

2025

 

2024

 

2024

 

 

 

 

 

 

Net Revenue

Financial Advisory net revenue - U.S. GAAP Basis

$367,359

 

 

$520,451

 

 

$453,507

 

Adjustments:

 

 

 

 

 

Reimbursable deal costs, (provision) benefit for credit losses and other (g)

2,181

 

 

(12,780

)

 

(7,501

)

Interest expense (h)

3

 

 

1

 

 

41

 

Losses associated with cost-saving initiatives (i)

–

 

 

–

 

 

587

 

 

 

 

 

 

 

Adjusted Financial Advisory net revenue

$369,543

 

 

$507,672

 

 

$446,634

 

 

 

 

 

 

 

Asset Management net revenue - U.S. GAAP Basis

$288,100

 

 

$312,136

 

 

$295,476

 

Adjustments:

 

 

 

 

 

Revenue related to noncontrolling interests and similar arrangements (j)

(6,850

)

 

(8,893

)

 

(4,097

)

Distribution fees and other (g)

(16,762

)

 

(16,038

)

 

(15,448

)

Interest expense (h)

6

 

 

6

 

 

3

 

 

 

 

 

 

 

Adjusted Asset Management net revenue

$264,494

 

 

$287,211

 

 

$275,934

 

 

 

 

 

 

 

Corporate net revenue - U.S. GAAP Basis

($7,408

)

 

($15,718

)

 

$15,770

 

Adjustments:

 

 

 

 

 

(Revenue) loss related to noncontrolling interests and similar arrangements (j)

839

 

 

2,476

 

 

(3,006

)

(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements (k)

(5,243

)

 

8,728

 

 

(9,373

)

Interest expense (h)

20,960

 

 

22,064

 

 

20,606

 

 

 

 

 

 

 

Adjusted Corporate net revenue

$9,148

 

 

$17,550

 

 

$23,997

 

 

 

 

 

 

 

Net revenue - U.S. GAAP Basis

$648,051

 

 

$816,869

 

 

$764,753

 

Adjustments:

 

 

 

 

 

Revenue related to noncontrolling interests and similar arrangements (j)

(6,011

)

 

(6,417

)

 

(7,103

)

(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements (k)

(5,243

)

 

8,728

 

 

(9,373

)

Distribution fees, reimbursable deal costs, provision for credit losses and other (g)

(14,581

)

 

(28,818

)

 

(22,949

)

Interest expense (h)

20,969

 

 

22,071

 

 

20,650

 

Losses associated with cost-saving initiatives (i)

–

 

 

–

 

 

587

 

 

 

 

 

 

 

Adjusted net revenue

$643,185

 

 

$812,433

 

 

$746,565

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)
(unaudited)

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

($ in thousands, except per share data)

2025

 

2024

 

2024

 

 

 

 

 

 

Compensation and Benefits Expense

Compensation and benefits expense - U.S. GAAP Basis

$430,270

 

 

$534,423

 

 

$550,824

 

Adjustments:

 

 

 

 

 

Compensation and benefits expense related to noncontrolling interests and similar arrangements (j)

(3,741

)

 

(13,707

)

 

(2,108

)

(Charges) credits pertaining to LFI and other similar arrangements (l)

(5,243

)

 

8,728

 

 

(9,373

)

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

(46,610

)

Expenses associated with sale of property (m)

–

 

 

3,119

 

 

–

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$421,286

 

 

$532,563

 

 

$492,733

 

 

 

 

 

 

 

Non-Compensation Expenses

Non-compensation expenses - U.S. GAAP Basis

$163,146

 

 

$183,599

 

 

$159,368

 

Adjustments:

 

 

 

 

 

Non-compensation expenses related to noncontrolling interests and similar arrangements (j)

(657

)

 

(726

)

 

(526

)

Distribution fees, reimbursable deal costs, provision for credit losses and other (g)

(14,581

)

 

(28,818

)

 

(22,949

)

Amortization and other acquisition-related costs

(26

)

 

(53

)

 

(68

)

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

(1,532

)

 

 

 

 

 

 

Adjusted non-compensation expenses

$147,882

 

 

$154,002

 

 

$134,293

 

 

 

 

 

 

 

Operating Income

Operating income - U.S. GAAP Basis

$54,635

 

 

$107,084

 

 

$54,561

 

Adjustments:

 

 

 

 

 

Operating (income) loss related to noncontrolling interests and similar arrangements (j)

(1,613

)

 

8,016

 

 

(4,469

)

Interest expense (h)

20,969

 

 

22,071

 

 

20,650

 

Amortization and other acquisition-related costs

26

 

 

53

 

 

68

 

Losses associated with cost-saving initiatives (i)

–

 

 

–

 

 

587

 

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

48,142

 

Expenses associated with sale of property (m)

–

 

 

(3,119

)

 

–

 

Benefit pursuant to tax receivable agreement obligation (“TRA”) (n)

–

 

 

(8,237

)

 

–

 

 

 

 

 

 

 

Adjusted operating income

$74,017

 

 

$125,868

 

 

$119,539

 

 

 

 

 

 

 

Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes - U.S. GAAP Basis

($7,354

)

 

$28,788

 

 

$14,337

 

Adjustment:

 

 

 

 

 

Tax effect of adjustments

–

 

 

(9,975

)

 

17,878

 

 

 

 

 

 

 

Adjusted provision (benefit) for income taxes

($7,354

)

 

$18,813

 

 

$32,215

 

 

 

 

 

 

 

Net Income attributable to Lazard, Inc.

Net income attributable to Lazard, Inc. - U.S. GAAP Basis

$60,375

 

 

$86,310

 

 

$35,755

 

Adjustments:

 

 

 

 

 

Losses associated with cost-saving initiatives (i)

–

 

 

–

 

 

587

 

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

48,142

 

Expenses associated with sale of property (m)

–

 

 

(3,119

)

 

–

 

Benefit pursuant to tax receivable agreement obligation (“TRA”) (n)

–

 

 

(8,237

)

 

–

 

Tax effect of adjustments

–

 

 

9,975

 

 

(17,878

)

 

 

 

 

 

 

Adjusted net income

$60,375

 

 

$84,929

 

 

$66,606

 

 

 

 

 

 

 

Diluted Weighted Average Shares Outstanding

Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis

104,828,753

 

 

106,113,813

 

 

99,351,769

 

Adjustment: participating securities including profits interest participation rights and other

2,847,480

 

 

2,243,743

 

 

2,180,450

 

Adjusted Diluted Weighted Average Shares Outstanding (e)

107,676,233

 

 

108,357,556

 

 

101,532,219

 

 

 

 

 

 

 

Diluted net income per share:

 

 

 

 

 

U.S. GAAP Basis

$0.56

 

 

$0.80

 

 

$0.35

 

Diluted net income (loss) effect of adjustments

–

 

 

(0.02

)

 

0.31

 

Adjusted Basis

$0.56

 

 

$0.78

 

 

$0.66

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF NON-COMPENSATION EXPENSES U.S. GAAP TO ADJUSTED (a)

(unaudited)

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

($ in thousands)

2025

 

2024

 

2024

 

 

 

 

 

 

Non-compensation expenses - U.S. GAAP Basis:

 

 

 

 

 

Occupancy and equipment

$35,413

 

 

$33,798

 

 

$32,857

 

Marketing and business development

27,731

 

 

28,572

 

 

23,599

 

Technology and information services

46,216

 

 

47,573

 

 

44,917

 

Professional services

18,837

 

 

23,954

 

 

19,880

 

Fund administration and outsourced services

26,545

 

 

25,923

 

 

26,140

 

Other

8,404

 

 

23,779

 

 

11,975

 

Non-compensation expenses - U.S. GAAP Basis

$163,146

 

 

$183,599

 

 

$159,368

 

 

 

 

 

 

 

Non-compensation expenses - Adjustments:

 

 

 

 

 

Occupancy and equipment (j)

($95

)

 

($93

)

 

($1,573

)

Marketing and business development (g) (j)

(2,657

)

 

(4,501

)

 

(2,079

)

Technology and information services (g) (j)

(28

)

 

(30

)

 

(35

)

Professional services (g) (j)

(1,736

)

 

(1,368

)

 

(873

)

Fund administration and outsourced services (g) (j)

(15,843

)

 

(14,942

)

 

(15,035

)

Other (g) (j)

5,095

 

 

(8,662

)

 

(5,480

)

Subtotal non-compensation expenses adjustments

($15,264

)

 

($29,596

)

 

($25,075

)

 

 

 

 

 

 

Adjusted non-compensation expenses:

 

 

 

 

 

Occupancy and equipment

$35,318

 

 

$33,705

 

 

$31,284

 

Marketing and business development

25,074

 

 

24,071

 

 

21,520

 

Technology and information services

46,188

 

 

47,543

 

 

44,882

 

Professional services

17,101

 

 

22,586

 

 

19,007

 

Fund administration and outsourced services

10,702

 

 

10,980

 

 

11,105

 

Other

13,499

 

 

15,117

 

 

6,495

 

Adjusted non-compensation expenses

$147,882

 

 

$154,002

 

 

$134,293

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

LAZARD, Inc.

Notes to Financial Schedules

(a)

Selected Summary Financial Information and Reconciliations from U.S. GAAP to Adjusted Results contain non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods.

 

 

 

 

 

 

 

 

 

(b)

A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

(c)

A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

(d)

A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

(e)

A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights may be excluded from the computation of outstanding stock equivalents for U.S. GAAP net income per share. In addition, this measure includes the dilutive effect of the weighted average number of shares of common stock issuable from share-based compensation programs.

 

 

 

 

 

 

 

 

 

(f)

A non-GAAP measure which represents the adjusted provision for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs.

 

 

Three Months Ended

 

 

($ in thousands)

March 31,

 

December 31,

 

March 31,

 

 

 

 

2025

 

2024

 

2024

 

 

 

Adjusted provision (benefit) for income taxes

($7,354)

 

$18,813

 

$32,215

 

 

 

Adjusted operating income less interest expense, amortization and other acquisition-related costs

53,022

 

103,744

 

98,821

 

 

 

Adjusted effective tax rate

(13.9%)

 

18.1%

 

32.6%

 

 

 

 

 

 

 

 

 

 

 

(g)

Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs, and (provision) benefit for credit losses relating to fees and other receivables that are deemed uncollectible, for which an equal amount is excluded for purposes of determining adjusted non-compensation expenses and included for purposes of determining adjusted net revenue.

 

 

 

 

 

 

 

 

 

(h)

Interest expense, excluding interest expense incurred by Lazard Frères Banque SA (“LFB”), is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.

 

 

 

 

 

 

 

 

 

(i)

Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, primarily consisting of the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss.

 

 

 

 

 

 

 

 

 

(j)

(Revenue) loss and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.

 

 

 

 

 

 

 

 

 

(k)

Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation and benefits expense.

 

 

 

 

 

 

 

 

 

(l)

Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue.

 

 

 

 

 

 

 

 

 

(m)

Represents estimated true-up to statutory profit-sharing expenses associated with the sale of an owned office building in the prior period.

 

 

 

 

 

 

 

 

 

(n)

Represents the effect of the periodic revaluation of the TRA liability.

 

 

 

 

 

 

 

 

 

NM

Not meaningful

 

Media Contact:
Shannon Houston
+1 212 632 6880
shannon.houston@lazard.com

Investor Contact:
Alexandra Deignan
+1 212 632 6886
alexandra.deignan@lazard.com

Source: Lazard, Inc.