Company: LAZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021162
Chunk: 97

Company: Lazard, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 97
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 were primarily due to increased occupancy and equipment and marketing and business development expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 23.0% for the 2025 period, as compared to 18.0% for the 2024 period.

Operating income remained substantially the same as compared to the 2024 period.

Adjusted operating income decreased $46 million, or 38%, as compared to the 2024 period, and as a percentage of adjusted net revenue was 11.5% for the 2025 period, as compared to 16.0% in the 2024 period.

The provision (benefit) for income taxes reflects an effective tax rate of (13.5)%, as compared to 26.3% 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 decreased $3 million 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, 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 following table summarizes the adjusted operating results attributable to the Financial Advisory segment:

Three Months EndedMarch 31,20252024($ in thousands)Net revenue - U.S. GAAP basis$367,359 $453,507 Adjustments:Reimbursable deal costs, (provision) benefit for credit losses and other2,181 (7,501)Interest expense3 41 Losses associated with cost-saving initiatives– 587 Total adjustments (a)2,184 (6,873