Company: LAZ
Filing Date: 2025-07-25
Form Type: 10-Q
Source: 0001311370-25-000022
Chunk: 111

Company: Lazard, Inc.
Filing Date: 2025-07-25
Form: 10-Q
Item: Part I, Item 1
Chunk 111
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 adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period. 

Non-compensation expense increased $18 million, or 6%, as compared to the 2024 period. Adjusted non-compensation expense increased $22 million, or 8%, as compared to the 2024 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development, occupancy and equipment and technology and information services expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 21.6% for the 2025 period, as compared to 19.8% for the 2024 period.

Operating income increased $30 million, or 25%, as compared to the 2024 period.

Adjusted operating income decreased $21 million, or 11%, as compared to the 2024 period, and, as a percentage of adjusted net revenue, was 12.9% for the 2025 period, as compared to 14.2% in the 2024 period. 

The provision for income taxes reflects an effective tax rate of 16.5%, as compared to 21.9% for the 2024 period. The change in the effective tax rate principally relates to increases in discrete benefits for share-based incentive compensation and changes in the geographic mix of earnings.

Net income attributable to noncontrolling interests increased $1 million, or 15%, as compared to the 2024 period.

For additional discussion of the drivers of our adjusted operating results for the period, see “Business Segments” below.

Business Segments

The following is a discussion of net revenue, adjusted net revenue, adjusted compensation and benefits expense, adjusted non-compensation expense, and adjusted operating income (loss) for the Company’s segments: Financial Advisory, Asset Management and Corporate. Adjusted compensation and benefits expense and adjusted non-compensation expense include costs directly incurred by each segment, with certain adjustments.

Adjusted net revenue, adjusted operating income (loss), and adjusted operating income as a percentage of adjusted net revenue, are non-GAAP measures in the tables below.

The Company previously disclosed each segment’s operating results on a U.S. GAAP basis. In the applicable tables below, the comparable prior year information has been recast to reflect the updated measures used by management. See Note 20 of Notes to Condensed Consolidated Financial Statements for further information regarding segments.

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Financial Advisory

The