Lazard Reports Fourth Quarter and Full Year 2025 Results

NEW YORK, Jan. 29, 2026 /PRNewswire/ -- Lazard, Inc. (NYSE: LAZ) today reported net revenue of $907 million and adjusted net revenue 2 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 revenue 2 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 income 2 was $89 million or $0.80 per share, diluted. For the full year of 2025, adjusted net income 2 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,

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 revenue 2 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 revenue 2 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):

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 revenue 2 of $367 million and $339 million, respectively, both 18% higher than the fourth quarter of 2024.

Management fees and other revenue, on an adjusted basis 2, 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 basis 2 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 revenue 2 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 basis 2, were $1,107 million for the full year of 2025, 5% higher than the full year of 2024.

Incentive fees on an adjusted basis 2 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 basis 2 was $638 million and $585 million, respectively, compared to $534 million and $533 million, respectively, for the fourth quarter of 2024. The adjusted compensation ratio 3 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 basis 2 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 ratio 3 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 ratio 3 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 ratio 3 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 basis 2, non-compensation expenses were $159 million, 3% higher than the fourth quarter of 2024.

The adjusted non-compensation ratio 4 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 basis 2, non-compensation expenses were $613 million, 7% higher than the full year of 2024.

The adjusted non-compensation ratio 4 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 ratio 4 between 16% to 20%, with timing dependent on market conditions.

TAXES

The provision for income taxes on a U.S. GAAP and an adjusted basis 2 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 basis 2.

The provision for income taxes on a U.S. GAAP and an adjusted basis 2 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 basis 2.

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

Revenue per MD is calculated as Financial Advisory adjusted net revenue divided by the average number of Financial Advisory Managing Directors.

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.

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

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:

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

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,

($ 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,

($ 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

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 %

65.6 %

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,

($ 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 %

__________________________________________________________________________________________________________

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

__________________________________________________________________________________________________________

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

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,

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,

($ in thousands)

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)

(61)

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)

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

__________________________________________________________________________________________________________

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,

($ in thousands, except per share data)

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

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

–

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

__________________________________________________________________________________________________________

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,

($ in thousands)

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

__________________________________________________________________________________________________________

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,

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:

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+1 212 632 6880

[email protected]

Investor Contact:

Alexandra Deignan

+1 212 632 6886

[email protected]

SOURCE Lazard