Industry Overview - The investment bank industry has thrived in 2025 due to increased client activities, a rebound in underwriting and advisory businesses, and significant AI applications enhancing long-term efficiency [1] - The Zacks-defined Financial – Investment Bank Industry ranks in the top 4% of the Zacks Industry Rank, with a 41.5% return over the past year and a year-to-date return of 21.4% [2] Company Performance Goldman Sachs Group Inc. (GS) - Goldman Sachs has experienced solid growth in its Global Banking & Markets division, focusing on core investment banking and trading through restructuring and acquisitions [6][7] - The company maintained its leading position in M&A activities in Q2 2025, with investment banking revenues rebounding after a slowdown in 2022-2023 [7][8] - For 2025, the Zacks Consensus Estimate projects revenues of $56.87 billion (up 6.3% YoY) and earnings per share of $45.63 (up 12.6% YoY) [11] JPMorgan Chase & Co. (JPM) - JPMorgan's business expansion, loan demand, and high interest rates are expected to drive net interest income (NII) growth, projected to have a CAGR of 2.9% by 2027 [13] - The Zacks Consensus Estimate for 2025 shows revenues of $117.19 billion (down 0.2% YoY) and earnings per share of $19.50 (down 1.3% YoY) [15] Citigroup Inc. (C) - Citigroup is witnessing an increase in NII, supported by business transformation initiatives and a strong liquidity position [17] - The Zacks Consensus Estimate for 2025 indicates revenues of $84.51 billion (up 4.2% YoY) and earnings per share of $7.58 (up 27.4% YoY) [19] Evercore Inc. (EVR) - Evercore has seen revenue growth from its Investment Management and Investment Banking & Equities segments, with ongoing efforts to expand its advisory client base [22] - The Zacks Consensus Estimate for 2025 shows revenues of $3.48 billion (up 15.9% YoY) and earnings per share of $12.41 (up 31.7% YoY) [24] Interactive Brokers Group Inc. (IBKR) - Interactive Brokers is enhancing its global presence and product suite, with initiatives expected to support revenue growth [26][27] - The Zacks Consensus Estimate for 2025 indicates revenues of $5.68 billion (up 8.8% YoY) and earnings per share of $1.96 (up 11.4% YoY) [28]

Group 1 - Evercore Inc. (NYSE: EVR) operates in the large-cap segment of the advisory market and has overperformed in corporate financing activities [2] - The company has maintained solid growth in its advisory business, driven by strong contributions from non-M&A activities [2] - The Value Lab, led by Evercore, offers members a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, new trades monthly, and quarterly earnings write-ups [2] Group 2 - The Valkyrie Trading Society consists of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns [3] - The society focuses on long-only investment strategies in the current economic environment [3]

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Evercore Inc.'s unaudited condensed consolidated financial statements and related detailed notes [Condensed Consolidated Statements of Financial Condition](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time **Condensed Consolidated Statements of Financial Condition (dollars in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $3,689,659 | $4,173,971 | | Total Liabilities | $1,771,165 | $2,232,163 | | Total Equity | $1,918,494 | $1,941,808 | | Cash and Cash Equivalents | $617,298 | $873,045 | | Accrued Compensation and Benefits | $549,660 | $1,024,076 | - Total Assets decreased by **$484.3 million (11.6%)** from December 31, 2024, to June 30, 2025[11](index=11&type=chunk) - Total Liabilities decreased by **$460.9 million (20.7%)** from December 31, 2024, to June 30, 2025, primarily driven by a significant reduction in Accrued Compensation and Benefits[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net income over specific periods **Condensed Consolidated Statements of Operations (dollars in thousands, except per share data):** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $838,040 | $693,413 | $1,537,062 | $1,278,416 | | Net Revenues | $833,830 | $689,224 | $1,528,659 | $1,270,039 | | Total Expenses | $683,441 | $580,981 | $1,267,086 | $1,077,676 | | Net Income Attributable to Evercore Inc. | $97,201 | $73,758 | $243,385 | $159,451 | | Diluted Net Income Per Share | $2.36 | $1.81 | $5.85 | $3.89 | - Net Income Attributable to Evercore Inc. increased by **32%** for the three months ended June 30, 2025, and by **53%** for the six months ended June 30, 2025, compared to the respective prior periods[13](index=13&type=chunk) - Total Revenues grew by **21%** for the three months and **20%** for the six months ended June 30, 2025, primarily driven by Advisory Fees[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income items, reflecting total non-owner changes in equity **Condensed Consolidated Statements of Comprehensive Income (dollars in thousands):** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $106,939 | $81,733 | $260,729 | $174,857 | | Other Comprehensive Income (Loss) | $18,683 | ($805) | $27,169 | ($4,328) | | Comprehensive Income Attributable to Evercore Inc. | $114,494 | $73,019 | $268,525 | $155,488 | - Other Comprehensive Income (Loss) saw a significant positive shift, primarily due to foreign currency translation adjustments, moving from a loss of **($805) thousand** in Q2 2024 to a gain of **$18,683 thousand** in Q2 2025[16](index=16&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This statement outlines changes in the company's equity components, including net income, dividends, and share repurchases **Key Changes in Equity (dollars in thousands):** | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | | Balance at December 31 (prior year) | $1,941,808 | $1,782,490 | | Net Income | $260,729 | $174,857 | | Other Comprehensive Income | $27,169 | ($4,328) | | Treasury Stock Purchases | ($449,165) | ($317,485) | | Dividends | ($71,308) | ($67,977) | | Balance at June 30 | $1,918,494 | $1,727,526 | - Treasury Stock Purchases increased significantly to **$449.2 million** for the six months ended June 30, 2025, compared to **$317.5 million** in the prior year, reflecting increased share repurchase activity[19](index=19&type=chunk)[20](index=20&type=chunk) - Retained Earnings increased to **$2,305,996 thousand** at June 30, 2025, from **$2,133,919 thousand** at December 31, 2024, driven by net income partially offset by dividends[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash inflows and outflows from operating, investing, and financing activities **Condensed Consolidated Statements of Cash Flows (dollars in thousands):** | Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Net Cash Provided by (Used in) Operating Activities | ($111,916) | $67,267 | | Net Cash Provided by Investing Activities | $365,608 | $383,778 | | Net Cash Provided by (Used in) Financing Activities | ($541,805) | ($410,987) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | ($254,858) | $34,974 | | Cash, Cash Equivalents and Restricted Cash – End of Period | $627,249 | $640,458 | - Operating activities shifted from a net cash inflow of **$67.3 million** in H1 2024 to a net outflow of **$111.9 million** in H1 2025, primarily due to payments of 2024 bonus awards and deferred cash compensation[22](index=22&type=chunk)[292](index=292&type=chunk) - Financing activities used more cash in H1 2025 (**$541.8 million**) compared to H1 2024 (**$411.0 million**), mainly for increased treasury stock purchases and dividends[22](index=22&type=chunk)[292](index=292&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies and specific financial statement line items [Note 1 – Organization](index=11&type=section&id=Note%201%20%E2%80%93%20Organization) This note describes Evercore Inc. as an investment banking and investment management firm with two primary operating segments - Evercore Inc. is an investment banking and investment management firm, headquartered in New York, New York[23](index=23&type=chunk) - The Investment Banking & Equities segment provides advice on M&A, divestitures, shareholder activism, restructuring, capital markets, underwriting, and equity research/trading[24](index=24&type=chunk) - The Investment Management segment offers investment advisory, wealth management, and fiduciary services for high-net-worth individuals, and holds interests in private equity funds not managed by the Company[25](index=25&type=chunk) [Note 2 – Significant Accounting Policies](index=11&type=section&id=Note%202%20%E2%80%93%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and consolidation methods used in preparing the financial statements - Unaudited condensed consolidated financial statements are prepared in accordance with Form 10-Q and U.S. GAAP[27](index=27&type=chunk) - Evercore LP and several international entities (Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing, Evercore Canada, Evercore Hong Kong, Evercore Singapore) are consolidated as VIEs where the Company is the primary beneficiary[30](index=30&type=chunk)[31](index=31&type=chunk) - Reclassified **$9,851 thousand** and **$18,860 thousand** of technology and related expenses from 'Professional Fees' to 'Technology and Information Services' for the three and six months ended June 30, 2024, respectively, with no impact on Net Income[33](index=33&type=chunk) [Note 3 – Recent Accounting Pronouncements](index=12&type=section&id=Note%203%20%E2%80%93%20Recent%20Accounting%20Pronouncements) This note discusses recently adopted and pending accounting standards and their impact on the financial statements - Adopted ASU 2023-07 (Improvements to Reportable Segment Disclosures) on January 1, 2024, requiring incremental segment information[35](index=35&type=chunk) - Adopted ASU 2024-01 (Scope Application of Profits Interest and Similar Awards) on January 1, 2025, on a prospective basis, with no material impact[39](index=39&type=chunk) - Currently assessing the impact of ASU 2023-09 (Improvements to Income Tax Disclosures), ASU 2024-03 (Disaggregation of Income Statement Expenses), and ASU 2025-03 (Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity)[36](index=36&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [Note 4 – Revenue and Accounts Receivable](index=13&type=section&id=Note%204%20%E2%80%93%20Revenue%20and%20Accounts%20Receivable) This note details the company's revenue recognition policies and provides a breakdown of revenue by type and segment **Investment Banking & Equities Revenue (dollars in thousands):** | Revenue Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Advisory Fees | $697,744 | $568,231 | $1,255,093 | $998,069 | | Total Investment Banking & Equities | $788,222 | $652,429 | $1,454,936 | $1,186,040 | - Advisory Fees increased by **23%** for the three months and **26%** for the six months ended June 30, 2025, compared to the prior year periods[42](index=42&type=chunk) - The allowance for credit losses increased to **$3,894 thousand** at June 30, 2025, from **$2,253 thousand** at December 31, 2024, primarily due to an increase in the reserve for credit losses and write-off of aged receivables[50](index=50&type=chunk) [Note 5 – Business Changes and Developments](index=15&type=section&id=Note%205%20%E2%80%93%20Business%20Changes%20and%20Developments) This note describes significant business events, including acquisitions and strategic initiatives impacting the company - Agreement to acquire Robey Warshaw, an independent advisory firm headquartered in the United Kingdom, expected to close at the beginning of the fourth quarter 2025[54](index=54&type=chunk) - Consideration includes **£71,250 thousand** at closing (in Class A common stock), **£74,813 thousand** on the first anniversary (in Class A shares or cash), and contingent consideration based on performance thresholds[55](index=55&type=chunk) - Recognized **$1,637 thousand** in Acquisition and Transition Costs for the three and six months ended June 30, 2025[56](index=56&type=chunk) [Note 6 – Related Parties](index=15&type=section&id=Note%206%20%E2%80%93%20Related%20Parties) This note discloses transactions and relationships with related parties, including employees and entities with shared board members - Advisory Fees include **$1,271 thousand** for the six months ended June 30, 2025, earned from clients with the Company's Senior Managing Directors, Senior Advisors, and executives as Board members[57](index=57&type=chunk) - Long-term loans receivable from certain employees totaled **$32,465 thousand** as of June 30, 2025, an increase from **$29,357 thousand** at December 31, 2024[58](index=58&type=chunk) [Note 7 – Investment Securities and Certificates of Deposit](index=15&type=section&id=Note%207%20%E2%80%93%20Investment%20Securities%20and%20Certificates%20of%20Deposit) This note provides details on the company's investment portfolio, including fair value measurements and unrealized gains/losses **Investment Securities and Certificates of Deposit (dollars in thousands):** | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total Investment Securities, at fair value | $1,034,848 | $1,452,721 | | Certificates of Deposit, at contract value | $82,399 | $66,660 | | Total Investment Securities and Certificates of Deposit | $1,117,247 | $1,519,381 | - Net unrealized losses on available-for-sale debt securities (primarily U.S. Treasuries) included in Accumulated Other Comprehensive Income (Loss) were **($293) thousand** for the six months ended June 30, 2025, compared to **($157) thousand** for the same period in 2024[63](index=63&type=chunk) - Net realized and unrealized gains on investment funds (used as an economic hedge for deferred cash compensation) were **$9,154 thousand** for the six months ended June 30, 2025, down from **$21,111 thousand** in the prior year period[68](index=68&type=chunk) [Note 8 – Investments](index=17&type=section&id=Note%208%20%E2%80%93%20Investments) This note details the company's equity method investments and holdings in private equity funds **Equity Method Investments (dollars in thousands):** | Investee | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Atalanta Sosnoff | $10,993 | $11,155 | | Seneca Evercore | $1,268 | $1,462 | | Total | $12,261 | $12,617 | - Income from Equity Method Investments decreased by **59%** to **$1,694 thousand** for the six months ended June 30, 2025, from **$4,182 thousand** in the prior year, primarily due to the sale of ABS (July 2024) and redemption of Luminis (September 2024)[71](index=71&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) - Investments in private equity funds (Glisco and Trilantic) totaled **$3,631 thousand** at June 30, 2025, down from **$5,431 thousand** at December 31, 2024[83](index=83&type=chunk) [Note 9 – Leases](index=19&type=section&id=Note%209%20%E2%80%93%20Leases) This note outlines the company's lease obligations, including operating lease costs and future lease commitments - Operating lease cost for office space was **$35,392 thousand** for the six months ended June 30, 2025, up from **$28,839 thousand** in the prior year[86](index=86&type=chunk) - Net operating cash outflows related to operating leases increased to **$36,763 thousand** for the six months ended June 30, 2025, from **$21,632 thousand** in the prior year[90](index=90&type=chunk) - Total undiscounted operating lease liabilities as of June 30, 2025, are **$713,140 thousand**, with a weighted-average remaining lease term of **9.7 years**[90](index=90&type=chunk)[91](index=91&type=chunk) - Anticipates signing a lease for London office space in 2026, with expected additional annual expense of **£12,000 thousand** and aggregate future payments of **£175,000 thousand**, ending in 2041[92](index=92&type=chunk) [Note 10 – Fair Value Measurements](index=20&type=section&id=Note%2010%20%E2%80%93%20Fair%20Value%20Measurements) This note explains the fair value hierarchy used for financial instruments and provides a breakdown of assets by measurement level **Total Assets Measured At Fair Value (dollars in thousands):** | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Level 1 | $1,046,180 | $1,462,688 | | Level 2 | $— | $— | | Level 3 | $— | $— | | Total | $1,046,180 | $1,462,688 | - The majority of assets measured at fair value are classified as **Level 1**, indicating quoted prices in active markets for identical investments[98](index=98&type=chunk) - Closely-held Equity Securities are classified as **Level 3**, with a carrying amount and estimated fair value of **$1,686 thousand** at June 30, 2025, and **$625 thousand** at December 31, 2024[103](index=103&type=chunk) [Note 11 – Notes Payable](index=22&type=section&id=Note%2011%20%E2%80%93%20Notes%20Payable) This note details the company's outstanding debt, including maturities, recent issuances, and compliance with covenants **Notes Payable (Carrying Value, dollars in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Notes Payable | $377,237 | $373,895 | | Less: Current Portion of Notes Payable | ($85,937) | ($37,951) | | Notes Payable (Long-term) | $291,300 | $335,944 | - The Company repaid **$38,000 thousand** aggregate principal amount of its Series I Notes in August 2025[110](index=110&type=chunk) - Issued **$250,000 thousand** of new senior notes (Series K and L) on July 24, 2025, with proceeds intended to repay maturing notes and for general corporate purposes[115](index=115&type=chunk) - As of June 30, 2025, the Company was in compliance with all customary financial covenants related to its notes payable[112](index=112&type=chunk) [Note 12 – Evercore Inc. Stockholders' Equity](index=24&type=section&id=Note%2012%20%E2%80%93%20Evercore%20Inc.%20Stockholders'%20Equity) This note provides information on dividends, share repurchases, and components of stockholders' equity - On July 29, 2025, the Board of Directors declared a quarterly cash dividend of **$0.84 per share**[118](index=118&type=chunk) - During the six months ended June 30, 2025, the Company repurchased **1,737,555 Class A Shares** for an aggregate of **$449,165 thousand**, including shares under its repurchase program and for net settlement of stock-based compensation awards[120](index=120&type=chunk)[302](index=302&type=chunk) - Accumulated Other Comprehensive Income (Loss) at June 30, 2025, was **($10,917) thousand**, including a net Foreign Currency Translation Adjustment Gain (Loss) of **($10,875) thousand**[124](index=124&type=chunk) [Note 13 – Noncontrolling Interest](index=25&type=section&id=Note%2013%20%E2%80%93%20Noncontrolling%20Interest) This note details the ownership interests of noncontrolling parties in consolidated subsidiaries and related transactions **Noncontrolling Ownership Interests:** | Subsidiary | As of June 30, 2025 | As of June 30, 2024 | | :-------------------------- | :------------------ | :------------------ | | Evercore LP | 6 % | 6 % | | Evercore Wealth Management | 27 % | 26 % | - Net Income Attributable to Noncontrolling Interest increased by **13%** to **$17,344 thousand** for the six months ended June 30, 2025, compared to **$15,406 thousand** in the prior year[127](index=127&type=chunk) - During the six months ended June 30, 2025, **110 LP Units** were exchanged for Class A Shares, resulting in a **$10,967 thousand** decrease to Noncontrolling Interest[130](index=130&type=chunk) - The Company purchased an additional **0.1%** of EWM Class A Units for **$1,259 thousand** during Q2 2025, decreasing Noncontrolling Interest by **$39 thousand**[134](index=134&type=chunk) [Note 14 – Net Income Per Share Attributable to Evercore Inc. Common Shareholders](index=26&type=section&id=Note%2014%20%E2%80%93%20Net%20Income%20Per%20Share%20Attributable%20to%20Evercore%20Inc.%20Common%20Shareholders) This note presents the calculation of basic and diluted net income per share for common shareholders **Net Income Per Share Attributable to Evercore Inc. Common Shareholders:** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic EPS | $2.51 | $1.92 | $6.29 | $4.14 | | Diluted EPS | $2.36 | $1.81 | $5.85 | $3.89 | | Diluted Weighted Average Class A Shares Outstanding | 41,213 | 40,857 | 41,636 | 40,969 | - Diluted EPS increased by **30%** for the three months and **50%** for the six months ended June 30, 2025, compared to the prior year periods[139](index=139&type=chunk) - LP Units were anti-dilutive and consequently excluded from the calculation of diluted net income per share for both periods[139](index=139&type=chunk) [Note 15 – Share-Based and Other Deferred Compensation](index=28&type=section&id=Note%2015%20%E2%80%93%20Share-Based%20and%20Other%20Deferred%20Compensation) This note describes the company's various compensation programs, including equity awards and deferred cash compensation - Compensation expense related to Class K-P Units increased to **$31,500 thousand** for the six months ended June 30, 2025, from **$15,255 thousand** in the prior year[146](index=146&type=chunk) - Service-based RSU Awards granted in H1 2025 had an aggregate fair value of **$435,238 thousand**, with compensation expense of **$180,132 thousand** for the six months ended June 30, 2025[154](index=154&type=chunk) - Compensation expense for the Deferred Cash Compensation Program was **$76,892 thousand** for the six months ended June 30, 2025, down from **$88,105 thousand** in the prior year, with **$215,394 thousand** remaining unrecognized[157](index=157&type=chunk) - Accrued **$122,271 thousand** for Long-term Incentive Plans as of June 30, 2025, with **$260,193 thousand** total remaining expense to be recognized for the 2025 plan[160](index=160&type=chunk)[161](index=161&type=chunk) [Note 16 – Commitments and Contingencies](index=32&type=section&id=Note%2016%20%E2%80%93%20Commitments%20and%20Contingencies) This note discloses the company's unfunded commitments, credit facilities, and potential legal and regulatory liabilities - Unfunded commitments for capital contributions to private equity funds totaled **$2,552 thousand** as of June 30, 2025[167](index=167&type=chunk) - The PNC revolving credit facility was increased from **$85,000 thousand** to **$225,000 thousand**, with maturity extended to July 10, 2028[168](index=168&type=chunk) - Restricted Cash, primarily for lease collateral, was **$9,951 thousand** at June 30, 2025[170](index=170&type=chunk) - The Company believes it is not currently party to any material pending legal proceedings that would have a material effect on the Company[174](index=174&type=chunk) [Note 17 – Regulatory Authorities](index=33&type=section&id=Note%2017%20%E2%80%93%20Regulatory%20Authorities) This note confirms the company's compliance with capital and regulatory requirements for its regulated entities - EGL's regulatory net capital was **$368,623 thousand** at June 30, 2025, exceeding the minimum requirement by **$368,373 thousand**[176](index=176&type=chunk) - Evercore Trust Company, N.A. (ETC) is in compliance with OCC agreements regarding Tier 1 capital and liquid assets[177](index=177&type=chunk) - The aggregate regulatory net capital of UK affiliates (Evercore U.K., Evercore ISI U.K.) was **$298,795 thousand** at June 30, 2025, exceeding the minimum requirement by **$196,896 thousand**[178](index=178&type=chunk) [Note 18 – Income Taxes](index=33&type=section&id=Note%2018%20%E2%80%93%20Income%20Taxes) This note details the provision for income taxes, effective tax rate, and the impact of tax benefits and new tax pronouncements **Provision for Income Taxes and Effective Tax Rate:** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Provision for Income Taxes | $44,265 | $28,367 | $2,538 | $21,688 | | Effective Tax Rate | 29.3 % | 25.8 % | 1.0 % | 11.0 % | - The effective tax rate for the six months ended June 30, 2025, was reduced by **28.5 percentage points** due to net excess tax benefits from share-based awards[181](index=181&type=chunk) - The impact of OECD's Pillar Two, GILTI provisions, and the recently enacted U.S. House Resolution 1 is not expected to materially affect the Company's effective tax rate[182](index=182&type=chunk)[183](index=183&type=chunk)[186](index=186&type=chunk) [Note 19 – Segment Operating Results](index=34&type=section&id=Note%2019%20%E2%80%93%20Segment%20Operating%20Results) This note provides a breakdown of financial performance by the company's Investment Banking & Equities and Investment Management segments **Segment Operating Results (6 Months Ended June 30, dollars in thousands):** | Segment | Net Revenues (2025) | Net Revenues (2024) | Pre-Tax Income (2025) | Pre-Tax Income (2024) | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :-------------------- | | Investment Banking & Equities | $1,486,703 | $1,231,738 | $252,653 | $183,367 | | Investment Management | $41,956 | $38,301 | $10,614 | $13,178 | - Investment Banking & Equities Net Revenues increased by **21%** and Pre-Tax Income increased by **38%** for the six months ended June 30, 2025[197](index=197&type=chunk) - Investment Management Net Revenues increased by **10%**, but Pre-Tax Income decreased by **19%** for the six months ended June 30, 2025[197](index=197&type=chunk) - Geographic Net Revenues for the six months ended June 30, 2025, were primarily from the Americas (**$1,262,750 thousand**), followed by EMEA (**$199,085 thousand**) and Asia-Pacific (**$34,768 thousand**)[205](index=205&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operating results, liquidity, and risks [Forward-Looking Statements](index=39&type=section&id=Forward-Looking%20Statements) This section cautions that the report contains forward-looking statements subject to risks and uncertainties, with no obligation to update - The report contains forward-looking statements reflecting current views on operations and financial performance, identifiable by words like 'outlook,' 'believes,' 'expects,' 'potential,' etc[210](index=210&type=chunk) - These statements are subject to known and unknown risks, uncertainties, and assumptions that could cause actual outcomes to differ materially from those indicated[211](index=211&type=chunk) - The Company undertakes no obligation to publicly update or review any forward-looking statement, except as required by law[211](index=211&type=chunk) [Key Financial Measures](index=39&type=section&id=Key%20Financial%20Measures) This section defines the company's primary revenue and expense categories, explaining their components and drivers - Total revenues include fees for services, transaction-related client reimbursements, and other revenue; Net revenues subtract interest expense[212](index=212&type=chunk) - Investment Banking & Equities revenue is largely driven by advisory fees (M&A, restructuring, capital raising), underwriting fees, and commissions from research and sales & trading activities[213](index=213&type=chunk) - Investment Management revenue primarily consists of management fees (percentage of AUM), fiduciary fees, and gains/losses on principal investments[215](index=215&type=chunk)[216](index=216&type=chunk) - Employee Compensation and Benefits include base salary, cash, deferred cash, and equity bonus awards, managed to competitive levels and reflecting new hires[219](index=219&type=chunk)[220](index=220&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) This section analyzes the company's consolidated financial performance, highlighting revenue, expense, and net income trends **Consolidated Results of Operations (dollars in thousands, except per share data):** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Revenues | $833,830 | $689,224 | $1,528,659 | $1,270,039 | | Net Income Attributable to Evercore Inc. | $97,201 | $73,758 | $243,385 | $159,451 | | Diluted Net Income Per Share | $2.36 | $1.81 | $5.85 | $3.89 | | Employee Compensation and Benefits (% of Net Revenues) | 65.8% | 66.6% | 66.0% | 66.7% | | Provision for Income Taxes | $44,265 | $28,367 | $2,538 | $21,688 | - Net Income Attributable to Evercore Inc. increased by **32%** for the three months and **53%** for the six months ended June 30, 2025[240](index=240&type=chunk)[249](index=249&type=chunk) - Net Revenues increased by **21%** for the three months and **20%** for the six months ended June 30, 2025, primarily driven by Advisory Fees[241](index=241&type=chunk)[250](index=250&type=chunk) - The effective tax rate for the six months ended June 30, 2025, was **1.0%**, significantly lower than **11.0%** in the prior year, largely due to **$75.0 million** in net excess tax benefits from share-based awards[255](index=255&type=chunk)[256](index=256&type=chunk) [Three Months Ended June 30, 2025 versus June 30, 2024](index=44&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20versus%20June%2030,%202024) This section compares the company's financial performance for the three months ended June 30, 2025, against the prior year - Advisory Fees increased by **$129.5 million (23%)**, reflecting higher revenue across M&A and non-M&A assignments and large transactions[241](index=241&type=chunk)[266](index=266&type=chunk) - Other Revenue, Including Interest and Investments, increased by **34%** to **$29.1 million**, primarily due to higher performance of the investment funds portfolio[242](index=242&type=chunk) - Employee Compensation and Benefits Expense increased by **20%** to **$548.6 million**, reflecting higher incentive compensation accrual, base salaries, and amortization of deferred compensation awards[243](index=243&type=chunk) - Non-compensation expenses increased by **10%** to **$134.8 million**, driven by technology and information services, occupancy, and travel expenses[244](index=244&type=chunk) [Six Months Ended June 30, 2025 versus June 30, 2024](index=45&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20versus%20June%2030,%202024) This section compares the company's financial performance for the six months ended June 30, 2025, against the prior year - Advisory Fees increased by **$257.0 million (26%)**, reflecting higher revenue across M&A and non-M&A assignments and large transactions[250](index=250&type=chunk)[269](index=269&type=chunk) - Other Revenue, Including Interest and Investments, decreased by **26%** to **$40.5 million**, primarily due to lower performance of investment funds and fixed income portfolios[251](index=251&type=chunk) - Employee Compensation and Benefits Expense increased by **19%** to **$1.01 billion**, reflecting higher incentive compensation accrual, base salaries, and amortization of deferred compensation awards[252](index=252&type=chunk) - Income from Equity Method Investments decreased by **59%** to **$1.7 million**, primarily due to the sale of ABS and redemption of Luminis[254](index=254&type=chunk) [Business Segments](index=48&type=section&id=Business%20Segments) This section analyzes the financial performance of the company's Investment Banking & Equities and Investment Management segments - No client accounted for more than **10%** of the Company's Consolidated Net Revenues for the three and six months ended June 30, 2025 and 2024[194](index=194&type=chunk) **Geographic Net Revenues (6 Months Ended June 30, dollars in thousands):** | Region | 2025 | 2024 | | :------------- | :----------- | :----------- | | Americas | $1,262,750 | $1,048,219 | | EMEA | $199,085 | $162,596 | | Asia-Pacific | $34,768 | $13,124 | | Total | $1,496,603 | $1,223,939 | **Identifiable Segment Assets (June 30, dollars in thousands):** | Segment | 2025 | 2024 | | :-------------------------- | :----------- | :----------- | | Investment Banking & Equities | $3,575,400 | $3,176,797 | | Investment Management | $114,259 | $139,201 | | Total | $3,689,659 | $3,315,998 | [Investment Banking & Equities](index=48&type=section&id=Investment%20Banking%20%26%20Equities) This segment analysis details revenue and income growth, driven by advisory fees and increased business activity **Investment Banking & Equities Operating Results (dollars in thousands):** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Revenues | $812,171 | $670,010 | $1,486,703 | $1,231,738 | | Advisory Fees | $697,744 | $568,231 | $1,255,093 | $998,069 | | Pre-Tax Income | $145,962 | $103,789 | $252,653 | $183,367 | | Employee Compensation and Benefits | $535,447 | $448,064 | $983,476 | $825,351 | | Non-Compensation | $130,773 | $118,304 | $250,547 | $223,855 | - Advisory Fees increased by **23%** for the three months and **26%** for the six months ended June 30, 2025, reflecting increased revenue from M&A and non-M&A assignments and large transactions[266](index=266&type=chunk)[269](index=269&type=chunk) - Pre-Tax Income increased by **41%** for the three months and **38%** for the six months ended June 30, 2025[261](index=261&type=chunk) - Total Number of Fees of at Least **$1 million** from Advisory and Underwriting Client Transactions increased by **17%** for the three months and **11%** for the six months ended June 30, 2025[265](index=265&type=chunk) [Investment Management](index=52&type=section&id=Investment%20Management) This segment analysis covers revenue and AUM growth, alongside changes in pre-tax income and equity method investments **Investment Management Operating Results (dollars in thousands):** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Revenues | $21,659 | $19,214 | $41,956 | $38,301 | | Asset Management and Administration Fees | $20,684 | $19,200 | $41,667 | $37,899 | | Pre-Tax Income | $5,242 | $6,311 | $10,614 | $13,178 | | Employee Compensation and Benefits | $13,164 | $10,871 | $24,960 | $21,289 | | Non-Compensation | $4,057 | $3,742 | $8,103 | $7,181 | - Assets Under Management (AUM) in Wealth Management increased **4%** to **$14.5 billion** at June 30, 2025, from **$13.9 billion** at December 31, 2024, reflecting **3%** market appreciation and **1%** net inflows[277](index=277&type=chunk)[279](index=279&type=chunk)[282](index=282&type=chunk) - Income from Equity Method Investments decreased by **53%** for the three months and **49%** for the six months ended June 30, 2025, primarily due to the sale of ABS in Q3 2024[286](index=286&type=chunk)[290](index=290&type=chunk) [Cash Flows](index=55&type=section&id=Cash%20Flows) This section analyzes the company's cash inflows and outflows from operating, investing, and financing activities **Summary of Cash Flows (6 Months Ended June 30, dollars in thousands):** | Activity | 2025 | 2024 | | :------------------------------------------ | :----------- | :----------- | | Operating activities | ($111,916) | $67,267 | | Investing activities | $365,608 | $383,778 | | Financing activities | ($541,805) | ($410,987) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | ($254,858) | $34,974 | | Cash, Cash Equivalents and Restricted Cash – End of Period | $627,249 | $640,458 | - Operating activities resulted in a net outflow of **$111.9 million** in H1 2025, primarily related to the payment of 2024 bonus awards and deferred cash compensation[292](index=292&type=chunk) - Financing activities used **$541.8 million** in H1 2025, primarily for purchases of treasury stock (including for net settlement of RSUs) and noncontrolling interests, and dividend payments[292](index=292&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet financial obligations, manage capital, and fund operations - Liquidity is highly dependent on the Company's revenue stream from operations, principally from its Investment Banking & Equities segment, which is irregular and dependent on external factors[296](index=296&type=chunk) - On April 29, 2025, the Board authorized a new share repurchase program for up to **$1.6 billion** worth of Class A Shares and/or LP Units or **8.0 million** Class A Shares and/or LP Units[300](index=300&type=chunk) - During the six months ended June 30, 2025, the Company repurchased **1,737,555 Class A Shares** for **$449.2 million**, including shares under its repurchase program and for minimum tax withholding[302](index=302&type=chunk) - Issued **$250.0 million** of new senior notes (Series K and L) on July 24, 2025, to repay maturing notes and for general corporate purposes[310](index=310&type=chunk) - Amended its revolving credit facility with PNC, increasing the aggregate principal amount to **$225.0 million**, and EGL's subordinated revolving credit facility to **$75.0 million**[313](index=313&type=chunk)[314](index=314&type=chunk) [Market Risk and Credit Risk](index=60&type=section&id=Market%20Risk%20and%20Credit%20Risk) This section outlines the company's exposure to market fluctuations, investment risks, and credit exposures - The Company is generally not a capital-intensive organization and is not subject to significant market or credit risks[323](index=323&type=chunk) - A hypothetical **10%** adverse change in the market value of investments would result in an estimated decrease in pre-tax income of approximately **$15.9 million** for the three months ended June 30, 2025[325](index=325&type=chunk) - Foreign currency translation adjustment resulted in a net gain of **$27.4 million** (net of tax) for the six months ended June 30, 2025[328](index=328&type=chunk) - Credit risk is managed by limiting concentration and maintaining investment-grade credit quality for its Investment Securities portfolio, of which **85%** were U.S. Treasury securities at June 30, 2025[335](index=335&type=chunk) - Bad debt expense was **$3.5 million** for the six months ended June 30, 2025, compared to **$1.0 million** in the prior year[332](index=332&type=chunk) [Critical Accounting Policies and Estimates](index=61&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights key accounting policies requiring significant management judgment and estimation - Unaudited condensed consolidated financial statements are prepared in conformity with U.S. GAAP, requiring management to make estimates and assumptions[336](index=336&type=chunk) - Actual results could differ materially from these estimates[336](index=336&type=chunk) - A detailed discussion of critical accounting policies and estimates is provided in the Annual Report on Form 10-K for the year ended December 31, 2024[336](index=336&type=chunk) [Recently Issued Accounting Standards](index=61&type=section&id=Recently%20Issued%20Accounting%20Standards) This section refers to Note 3 for a discussion of new accounting standards and their impact - Refers to Note 3 for a discussion of recently issued accounting standards and their impact or potential impact on the consolidated financial statements[337](index=337&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to management's discussion for disclosures on market risk, affirming no other material risks - Refers to the 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Credit Risk' section for disclosures[338](index=338&type=chunk) - The Company does not believe it faces any material interest rate risk, foreign currency exchange risk, equity price risk, or other market risk except as disclosed[338](index=338&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and the absence of material changes in internal controls - The design and operation of the Company's disclosure controls and procedures were effective as of June 30, 2025[339](index=339&type=chunk) - No changes materially affecting internal control over financial reporting occurred during the three months ended June 30, 2025[340](index=340&type=chunk) PART II. OTHER INFORMATION This section provides additional information on legal proceedings, equity sales, and other corporate matters [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms the company is not currently party to any material legal proceedings that would significantly impact operations - The Company and its affiliates are involved in judicial or regulatory proceedings, arbitration, or mediation concerning matters arising in connection with its businesses[342](index=342&type=chunk) - The Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company[342](index=342&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the company's share repurchase activities and new repurchase program authorization **Issuer Purchases of Equity Securities (2025):** | Period | Total Number of Shares (or Units) Purchased | Average Price Paid Per Share | | :-------------------------- | :---------------------------------------- | :--------------------------- | | January 1 to March 31 | 1,554,522 | $261.15 | | April 1 to June 30 | 183,033 | $236.05 | | Total January 1 to June 30 | 1,737,555 | $258.50 | - Total repurchases for the six months ended June 30, 2025, amounted to **1,737,555 Class A Shares** for **$449.2 million**[343](index=343&type=chunk) - Repurchases included **808,559 shares** under publicly announced plans and **915,963 shares** for net settlement of equity awards to satisfy minimum tax obligations[343](index=343&type=chunk) - On April 29, 2025, the Board authorized a new repurchase program for up to **$1.6 billion** or **8.0 million Class A Shares** and/or LP Units[344](index=344&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205.%20Other%20Information) This section confirms no Rule 10b5-1(c) trading arrangements were adopted or terminated by executives in Q2 2025 - None of the Company's trustees or executive officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of Company securities intended to satisfy Rule 10b5-1(c) conditions during the three months ended June 30, 2025[345](index=345&type=chunk) [Item 6. Exhibits and Financial Statement Schedules](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and the Inline XBRL formatted financial statements and taxonomy extensions - Includes certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350[346](index=346&type=chunk) - The Condensed Consolidated Financial Statements for the quarter ended June 30, 2025, are formatted in Inline XBRL[346](index=346&type=chunk) - Agreements and other documents filed as exhibits are not intended to provide factual information or other disclosure beyond their terms[346](index=346&type=chunk) SIGNATURES This section provides the official signatures of the Chief Executive Officer and Chief Financial Officer for the report - The report was signed on August 7, 2025, by John S. Weinberg, Chief Executive Officer and Chairman, and Tim LaLonde, Chief Financial Officer[349](index=349&type=chunk)[350](index=350&type=chunk)

Core Viewpoint - Evercore (EVR) is experiencing solid improvement in earnings estimates, leading to positive short-term price momentum, which may continue as the earnings outlook improves [1][2]. Earnings Estimate Revisions - The trend of rising estimate revisions reflects growing analyst optimism regarding Evercore's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, Evercore is projected to earn $2.53 per share, marking a year-over-year increase of +24.0%. Over the past 30 days, one estimate has increased, resulting in an 11.97% rise in the Zacks Consensus Estimate [5]. - For the full year, the expected earnings per share is $12.41, representing a year-over-year change of +31.7%. Two estimates have moved higher in the past month, contributing to an 8.72% increase in the consensus estimate [6][7]. Zacks Rank - Evercore has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong agreement among analysts on upward revisions [8]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3]. Stock Performance - Evercore's stock has gained 5.7% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9].

Core Viewpoint - Analysts from major Wall Street firms are warning clients to prepare for a potential pullback in the U.S. stock market due to high valuations clashing with weakening economic data [1][4]. Group 1: Market Predictions - Morgan Stanley's strategist Mike Wilson predicts a potential adjustment of up to 10% in the S&P 500 index this quarter, citing tariffs impacting consumer and corporate finances [4]. - Evercore's Julian Emanuel forecasts a possible decline of up to 15% [4]. - Deutsche Bank's analyst team, led by Parag Thatte, notes that the market has risen for three consecutive months, indicating that a pullback is overdue [4]. Group 2: Economic Concerns - Recent data shows rising inflation in the U.S., alongside slowing job growth and consumer spending, raising concerns about the economic outlook [6]. - Historically, the S&P 500 index has performed poorly in August and September, averaging a decline of 0.7% during these months over the past 30 years, while other months average a gain of 1.1% [6]. - The S&P 500's 14-day Relative Strength Index (RSI) recently surpassed 76, indicating overbought conditions, which is above the 70 threshold considered "overheated" by technical analysts [6]. Group 3: Market Sentiment and Strategy - Despite the short-term bearish sentiment, analysts maintain a "buy on the dip" stance, emphasizing the long-term bullish trend of the market [7]. - Evercore's Emanuel advises clients to hold positions, particularly in companies benefiting from the AI boom [7]. - Deutsche Bank's Thatte highlights that historically, the S&P 500 experiences a small pullback of about 3% every 1.5 to 2 months and a larger pullback of over 5% every 3 to 4 months [7]. Group 4: Market Reactions - Following these warnings, traders appear to be accepting the advice to buy on dips, as evidenced by the S&P 500 and Nasdaq 100 indices both rising over 1% after a previous decline [8].

Investment Rating - The report maintains an "In-Line" investment rating for the industry, with a cautious view on midcap banks and a positive outlook for large cap banks [5][3]. Core Insights - The regulatory landscape for US banks is expected to undergo significant changes, with proposals for lower capital requirements likely to double excess capital and risk-weighted asset (RWA) capacity at large cap banks [1][4]. - The Federal Reserve is moving quickly on regulatory reforms, with a broad consensus anticipated on many proposals, including stress test transparency and GSIB surcharge adjustments [3][4]. - The expected increase in excess capital for large cap banks is projected to rise from $118 billion in Q2 2025 to $228 billion following the implementation of new regulations [7][9]. Summary by Sections Regulatory Changes - Key changes anticipated over the next year include lower stress capital buffers (SCBs) from the 2025 stress test, enhanced stress test transparency, and reforms to the GSIB surcharge and supplementary leverage ratio (SLR) [7][10]. - The Basel III Endgame finalization is expected to provide clarity for banks to optimize capital, supporting loan demand and capital markets activity [10][11]. Capital and RWA Capacity - Large cap banks currently have $118 billion of excess capital, which is expected to increase to $157 billion after a lower 2025 SCB, $172 billion post-SLR reform, and $228 billion post-GSIB surcharge reform [9][17]. - Incremental RWA capacity for large cap banks is projected to double from $0.9 trillion in Q2 2025 to $1.9 trillion following regulatory changes [9][19]. Earnings Impact - A sensitivity analysis indicates that optimizing excess capital could lead to a median increase of 24% in consensus 2026 earnings per share (EPS) across large cap banks, midcap banks, and consumer finance coverage [10][34]. - Regional banks are expected to benefit significantly from faster M&A approvals, which should enhance capital positions and growth opportunities [10][11]. Company-Specific Opportunities - Citigroup is projected to increase its excess capital from $16 billion to $31 billion post-GSIB surcharge reform, with significant buyback plans [32]. - Bank of America is expected to see its excess capital rise from $10 billion to $33 billion, with strong buyback potential and loan growth [32]. - JPMorgan Chase anticipates an increase in excess capital from $38 billion to $60 billion, benefiting from lower GSIB surcharges [32]. - Goldman Sachs is positioned to benefit from a rebound in capital markets, with expected buybacks of $17 billion in 2025 [32][33]. - Wells Fargo is projected to increase its excess capital from $13 billion to $34 billion, allowing for organic growth and share repurchases [32].

Core Viewpoint - Major banks including Morgan Stanley, Deutsche Bank, and Evercore have warned that the S&P 500 index may decline by 10% to 15% in the coming weeks to months due to high valuations and weakening economic indicators, despite a strong rebound over the past three months [1][5][6] Group 1: Market Performance and Predictions - The S&P 500 index has risen sharply since April, reaching historical highs, with a 1.47% increase on Monday, closing at 6329.94 points [2][6] - Analysts predict a potential adjustment of up to 10% this quarter, with Evercore forecasting a possible decline of 15% due to tariffs impacting consumer and corporate finances [5][6] - The S&P 500 index's 14-day Relative Strength Index (RSI) recently surpassed 76, indicating overbought conditions, which historically precedes market corrections [6] Group 2: Economic Indicators and Market Sentiment - Recent economic data shows a resurgence in inflation, alongside slowing job growth and consumer spending, raising concerns about the U.S. economic outlook [6] - Historically, the S&P 500 has performed poorly in August and September, averaging a decline of 0.7% during these months over the past 30 years [6] - Increased costs for hedging against market downturns are evident, with the implied volatility premium for put options on the SPDR S&P 500 ETF reaching its highest level since the regional banking crisis in 2023 [6] Group 3: Investment Strategy and Long-term Outlook - Despite short-term bearish sentiments, analysts maintain a bullish long-term outlook, suggesting investors should continue holding positions, particularly in companies benefiting from the AI trend [7] - Historical patterns indicate that the S&P 500 typically experiences minor corrections of about 3% every 1.5 to 2 months and larger corrections of over 5% every 3 to 4 months [7] - Market participants appear to be adopting a strategy of buying during corrections, as evidenced by the recent uptick in the S&P 500 and Nasdaq 100 indices [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Evercore (EVR) - Evercore currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - The stock has shown a price increase of 0.86% over the past week, compared to a 1.28% increase in the Zacks Financial - Investment Bank industry [6] - Over the past quarter, Evercore shares have increased by 38.94%, and by 26.46% over the last year, significantly outperforming the S&P 500, which increased by 14.12% and 16.19% respectively [7] Trading Volume - Evercore's average 20-day trading volume is 598,207 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, two earnings estimates for Evercore have been revised upwards, raising the consensus estimate from $10.79 to $12.41 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [10] Conclusion - Considering the positive price trends and earnings outlook, Evercore is positioned as a strong buy with a Momentum Score of B, making it a notable investment opportunity [12]

Core Insights - Evercore Inc. (EVR) reported a strong second-quarter 2025 performance, with adjusted EPS of $2.42, exceeding the Zacks Consensus Estimate of $1.78 and up from $1.81 in the prior year [1][10] - The company's net income attributable to common shareholders was $97.2 billion, reflecting a 31.7% increase year over year [2] Revenue and Expenses - Adjusted net revenues for Q2 2025 reached $838.9 million, surpassing the Zacks Consensus Estimate by 17.6% and increasing 20.7% year over year [3][10] - Total expenses rose 17.6% year over year to $683.4 million, driven by increases across most components, except for professional fees and other operating expenses [3] - The adjusted compensation ratio improved to 65.4%, down from 66% in the prior-year quarter [3] Segment Performance - In the Investment Banking & Equities segment, net revenues increased 21.2% year over year to $812.2 million, with operating income surging 40.8% to $145.9 million [5] - The Investment Management segment reported net revenues of $21.7 million, up 12.7% from the prior year, although operating income decreased by 3.5% [6] Balance Sheet Strength - As of June 30, 2025, Evercore had cash and cash equivalents of $617.3 million and investment securities totaling $1.1 billion, with current assets exceeding current liabilities by $1.6 billion [7] Capital Distribution Activities - The company declared a quarterly dividend of 84 cents per share, payable on September 12 to stockholders of record as of August 29 [8] - In the reported quarter, Evercore repurchased 0.2 million shares at an average price of $237.79 [8] Overall Performance and Outlook - The revenue growth was primarily driven by strong momentum in advisory solutions and revenues, supported by a solid liquidity position [11] - However, the rising expense base may hinder bottom-line growth in the near term [11]

Core Insights - Evercore reported a revenue of $838.86 million for the quarter ended June 2025, reflecting a year-over-year increase of 20.7% and a surprise of +17.65% over the Zacks Consensus Estimate of $713.03 million [1] - The earnings per share (EPS) for the quarter was $2.42, compared to $1.81 in the same quarter last year, resulting in an EPS surprise of +35.96% against the consensus estimate of $1.78 [1] Financial Performance Metrics - Adjusted Net Revenues from Investment Banking & Equities totaled $788.23 million, exceeding the average estimate of $682.78 million by two analysts, representing a year-over-year increase of +16.9% [4] - Adjusted Net Revenues from Other Revenue, net, were reported at $29.13 million, significantly higher than the average estimate of $17.11 million, marking a year-over-year change of +65.6% [4] - Adjusted Net Revenues from Investment Management, specifically Asset Management and Administration Fees, amounted to $21.49 million, slightly below the average estimate of $22.25 million, with a year-over-year change of +2.8% [4] Stock Performance - Over the past month, Evercore's shares have returned +9.4%, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]