Company: LAZ
Filing Date: 2025-07-25
Form Type: 10-Q
Source: 0001311370-25-000022
Chunk: 16

Company: Lazard, Inc.
Filing Date: 2025-07-25
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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% for the 2025 period, as compared to 12.3% in the 2024 period.

The provision for income taxes reflects an effective tax rate of 34.1%, as compared to 18.2% for the 2024 period. The change in the effective tax rate principally relates to the impact of discrete benefits during the second quarter of 2024 primarily relating to a favorable court decision in a longstanding tax matter, and changes in the geographic mix of earnings.

Net income attributable to noncontrolling interests increased $4 million as compared to the 2024 period.

53

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

The Company reported net income attributable to Lazard of $116 million, as compared to net income attributable to Lazard of $86 million in the 2024 period.

Net revenue decreased $6 million, with adjusted net revenue decreasing $18 million, or 1%, as compared to the 2024 period. Fee revenue from investment banking and other advisory activities decreased $8 million, or 1%, as compared to the 2024 period. Asset management fees, including incentive fees, decreased $5 million, or 1%, as compared to the 2024 period. In the aggregate, interest income, other revenue and interest expense increased $7 million, as compared to the 2024 period. 

Compensation and benefits expense decreased $54 million, or 5%, as compared to the 2024 period, which included $47 million associated with the cost-saving initiatives.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $926 million, a decrease of $19 million, or 2%, as compared to $945 million in the 2024 period. The ratio of adjusted compensation and benefits expense to 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%