Company: LAZ
Filing Date: 2025-07-25
Form Type: 10-Q
Source: 0001311370-25-000022
Chunk: 19

Company: Lazard, Inc.
Filing Date: 2025-07-25
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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 significant experience, and many of them are able to use this experience to advise on a combination of M&A, restructuring and other strategic advisory matters, depending on clients’ needs. This adaptability enables Lazard to more effectively deploy its professionals based on the often counter-cyclical nature of restructuring as compared to our M&A business. While Lazard measures revenue by practice area, Lazard does not separately measure the costs or profitability of M&A services as compared to restructuring or other services. Accordingly, Lazard measures performance in its Financial Advisory segment based on overall segment adjusted net revenue and adjusted operating income margins.

Financial Advisory Results of Operations

Financial Advisory’s quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality and other factors. Accordingly, the revenue and profits in any particular quarter or period may not be indicative of future results. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended June 30, 2025 versus June 30, 2024

Financial Advisory net revenue increased $86 million, or 21%, as compared to the 2024 period. Financial Advisory adjusted net revenue increased $83 million, or 20%, as compared to the 2024 period. The increase in Financial Advisory net revenue and adjusted net revenue was primarily driven by an increased number of completed M&A transactions with values greater than $500 million as compared to the 2024 period.

Adjusted compensation and benefits expense increased $42 million, or 15%, as compared to the 2024 period, primarily driven by increased adjusted net revenue.

Adjusted non-compensation expense increased $1 million, or 3%, as compared to the 2024 period.

Adjusted operating income was $122 million, an increase of $40 million, or 50%, as compared to adjusted operating income of $82 million in the 2024 period, and, as a percentage of adjusted net revenue, was 24.8%, as compared to 20.0% in the 2024 period.

Six Months Ended June 30, 2025 versus June 30, 2024

Financial Advisory net revenue remained substantially the same as compared to the 2024 period. Financial Advisory adjusted net revenue increased $6 million, or 1%, as compared to the 2024 period.

Adjusted compensation and benefits expense decreased $20 million, or 4%, as compared to the 2024 period.