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Lazard Inc

Lazard Reports Fourth Quarter and Full Year 2025 Results

  • 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


% '25-'24


2025


2024


% '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 30,


December 31,


September 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 Deignan

+1 212 632 6886

alexandra.deignan@lazard.com 

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