Core Viewpoint - Anthology Inc. is preparing for a potential Chapter 11 bankruptcy, which may result in secured lenders, led by Nexus Capital Management, taking control of the company [1][2]. Group 1: Restructuring Plan - The restructuring plan involves an ad hoc group of lenders, primarily Nexus Capital Management, exchanging their debt for equity in a reorganized Anthology [2]. - Nexus Capital Management has become one of Anthology's largest lenders by accumulating its debt in recent months [2]. Group 2: Asset Divestiture and Business Progress - A significant aspect of the restructuring involves Anthology divesting certain assets, with ongoing discussions that may lead to changes in the plans [3]. - Anthology has reportedly made substantial progress in enhancing its business and product capabilities over the past two years, aiming to continue providing innovative solutions to its customers [3]. Group 3: Financial Challenges and Ratings - Anthology is dealing with over $1 billion in debt and has been considering a sale to address its financial situation [3]. - Moody's Ratings downgraded Anthology from Caa3 to Ca in April, citing a decline in new bookings and increased customer attrition, leading the company to implement cost-cutting measures [4].

Group 1 - PJT Partners reported a decent quarter in their placement business, with solid performance driven by advisory services, although there is peaking demand in secondary and continuation offerings [2] - The Value Lab offers a portfolio with real-time updates, 24/7 chat support, global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [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 in the current economic environment [3]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last 5 years by engaging in international markets [1][2] - PJT Partners reported a solid quarter driven by their advisory services, while the demand for secondary and continuation offerings is peaking [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to generate non-correlated and outsized returns in the current economic environment [3]

Core Insights - The article does not provide specific company or industry insights, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2] Group 1 - There are no stock, option, or similar derivative positions held by the analyst in any mentioned companies [1] - The article expresses personal opinions and is not compensated beyond Seeking Alpha [1] - The views may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [2]

Group 1 - Investors in PJT Partners Inc. should monitor stock movements due to high implied volatility in the options market, particularly the Sep 19, 2025 $155 Put option [1] - Implied volatility indicates market expectations for significant price movement, suggesting potential upcoming events that could lead to a rally or sell-off [2] - PJT Partners holds a Zacks Rank 2 (Buy) in the Financial - Miscellaneous Services industry, which is in the top 25% of the Zacks Industry Rank [3] Group 2 - No analysts have increased earnings estimates for PJT Partners in the last 30 days, with one analyst revising the estimate downward, reducing the Zacks Consensus Estimate from $1.43 to $1.23 per share [3] - The high implied volatility may indicate a developing trade, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected [4]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) PJT Partners Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025, detailing financial condition, operations, and cash flows [Condensed Consolidated Statements of Financial Condition](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total Assets decreased to **$1.51 billion** from **$1.64 billion** as of June 30, 2025, due to reduced Cash and Cash Equivalents Condensed Consolidated Statements of Financial Condition (Unaudited) | (In Thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,511,398** | **$1,635,334** | | Cash and Cash Equivalents | $214,615 | $483,877 | | Accounts Receivable, Net | $358,954 | $320,783 | | **Total Liabilities** | **$662,796** | **$733,691** | | Accrued Compensation and Benefits | $156,739 | $299,255 | | Operating Lease Liabilities | $414,659 | $354,520 | | **Total Equity** | **$848,602** | **$901,643** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 Total Revenues increased **13%** to **$406.9 million**, with Net Income up **16%** and Diluted EPS at **$1.21** Q2 2025 vs Q2 2024 Performance (Three Months Ended June 30) | (In Thousands, Except EPS) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $406,884 | $360,181 | +13.0% | | Advisory Fees | $354,521 | $307,082 | +15.4% | | Total Expenses | $330,405 | $295,782 | +11.7% | | Net Income | $61,438 | $53,031 | +15.9% | | Diluted EPS | $1.21 | $1.06 | +14.2% | YTD 2025 vs YTD 2024 Performance (Six Months Ended June 30) | (In Thousands, Except EPS) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $731,415 | $689,574 | +6.1% | | Advisory Fees | $636,708 | $595,763 | +6.9% | | Total Expenses | $602,358 | $571,272 | +5.4% | | Net Income | $135,601 | $106,403 | +27.4% | | Diluted EPS | $3.21 | $2.29 | +40.2% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$114.5 million** for H1 2025, with significant cash used for share repurchases Cash Flow Summary (Six Months Ended June 30) | (In Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $114,488 | $154,775 | | Net Cash Used in Investing Activities | ($52,822) | ($106,194) | | Net Cash Used in Financing Activities | ($339,300) | ($238,768) | | **Net Decrease in Cash and Cash Equivalents** | **($269,262)** | **($191,340)** | | **Cash and Cash Equivalents, End of Period** | **$214,615** | **$164,203** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue recognition, equity compensation, and commitments, including a credit facility and quarterly dividend - As of June 30, 2025, the company had **$36.2 million** in transaction price allocated to performance obligations yet to be satisfied, which is expected to be recognized as revenue within the next twelve months[42](index=42&type=chunk) - The company's remaining share repurchase authorization was **$87.2 million** as of June 30, 2025, under a **$500 million** program announced in February 2024[59](index=59&type=chunk) - As of June 30, 2025, there was **$372.1 million** of estimated unrecognized compensation expense related to unvested RSU awards, expected to be recognized over a weighted-average period of **1.7 years**[63](index=63&type=chunk) - The company entered into a **$100 million** syndicated revolving credit facility on July 29, 2024, with no borrowings outstanding as of June 30, 2025[77](index=77&type=chunk)[79](index=79&type=chunk) - A quarterly dividend of **$0.25 per share** of Class A common stock was declared, payable on September 17, 2025[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial results, business environment, and liquidity, emphasizing revenue growth and capital returns [Business Environment](index=24&type=section&id=Business%20Environment) The business environment shows mixed trends with increased M&A volumes but fewer transactions, and elevated restructuring - Worldwide M&A announced volumes increased **33%** in Q2 2025 compared to the prior year, but the number of transactions declined[100](index=100&type=chunk) - Global restructuring and special situations trends remained elevated during Q2 2025, driven by liability management, balance sheet restructuring, and bankruptcy activity[101](index=101&type=chunk) - Fund placement activity remains challenging due to the macroeconomic environment, with limited partners being more discerning and focusing on existing relationships[102](index=102&type=chunk) [Condensed Consolidated Results of Operations](index=27&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) Q2 2025 total revenues rose **13%** to **$406.9 million**, driven by Advisory Fees, increasing pre-tax income Revenue Performance (Three Months Ended June 30) | (In Thousands) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Advisory Fees | $354,521 | $307,082 | +15% | | Placement Fees | $43,219 | $46,873 | -8% | | **Total Revenues** | **$406,884** | **$360,181** | **+13%** | Expense Performance (Three Months Ended June 30) | (In Thousands) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Compensation and Benefits | $276,834 | $250,326 | +11% | | Non-Compensation Expenses | $53,571 | $45,456 | +18% | | **Total Expenses** | **$330,405** | **$295,782** | **+12%** | - The increase in Advisory Fees for both the three and six-month periods was principally due to an increase in strategic advisory revenues[120](index=120&type=chunk)[122](index=122&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$318.4 million** in cash, with significant cash used for share repurchases - As of June 30, 2025, the company had cash, cash equivalents, and short-term investments of **$318.4 million**[131](index=131&type=chunk) - The company has a **$100 million** syndicated revolving credit facility, with no borrowings outstanding as of June 30, 2025[130](index=130&type=chunk) - During the six months ended June 30, 2025, the company repurchased **1.3 million shares** for **$190.5 million**[141](index=141&type=chunk) - For the six months ended June 30, 2025, **$81.3 million** in cash was used to exchange **0.5 million** Partnership Units[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company reports no material changes to its market risk exposures since December 31, 2024 - There have been no material changes in the company's market risk exposures since December 31, 2024[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by the report[152](index=152&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the most recent quarter[153](index=153&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is subject to ordinary course legal and regulatory proceedings, none expected to have a material financial effect - The company is not currently party to any material pending legal proceedings that would have a material effect on its financial condition[155](index=155&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes were reported to the risk factors previously disclosed in the Annual Report on Form 10-K for 2024 - No material changes were reported to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company details Q2 2025 share repurchases and remaining authorization under its equity repurchase program Issuer Purchases of Equity Securities in Q2 2025 | Period | Total Shares Repurchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 1 to April 30 | 353,224 | $130.74 | | May 1 to May 31 | 77,594 | $145.95 | | June 1 to June 30 | 38,300 | $152.52 | | **Total** | **469,118** | **$135.04** | - As of June 30, 2025, the company had **$87.2 million** remaining under its **$500 million** share repurchase authorization[159](index=159&type=chunk) [Item 5. Other Information](index=35&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[163](index=163&type=chunk)

Core Viewpoint - PJT Partners has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2] Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3] - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling activities [3] Business Improvement Indicators - The increase in earnings estimates and the Zacks rating upgrade for PJT Partners indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [4] Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions can be beneficial for investment decisions, and the Zacks Rank system effectively leverages this information [5] - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6] Specifics on PJT Partners - PJT Partners is projected to earn $6.25 per share for the fiscal year ending December 2025, with no year-over-year change expected [7] - Over the past three months, the Zacks Consensus Estimate for PJT Partners has increased by 2.5%, indicating positive sentiment among analysts [7] Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings [8][9] - The upgrade of PJT Partners to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9]

Financial Data and Key Metrics Changes - The company reported record-setting results with second quarter revenues of $407 million, up 13% year-over-year, and adjusted pre-tax income of $80 million, up 22% [5][8] - For the first half of the year, revenues increased by 6%, adjusted pre-tax income rose by 13%, and adjusted EPS increased by 19% compared to the previous year [6][12] - The adjusted pre-tax margin for the second quarter was 19.7%, compared to 18.2% for the same period last year [11] Business Line Data and Key Metrics Changes - Strategic Advisory revenues increased significantly for both the second quarter and first half, contributing to overall revenue growth [9][16] - Restructuring revenues rose modestly in the second quarter and were slightly up for the first half, while PJT Park Hill revenues decreased year-over-year for both periods [9][15] - The company expects full-year restructuring results to at least match last year's record levels, while Strategic Advisory is anticipated to be up strongly from 2024's record levels [18] Market Data and Key Metrics Changes - The market backdrop has improved, with equity valuations rising and market volatility decreasing, leading to increased business confidence and capital availability [6][14] - Global M&A activity remains near record lows when measured against total equity market capitalization or GDP, despite a 20% increase in annualized global announced M&A volumes [17] Company Strategy and Development Direction - The company remains committed to long-term investments and aims to build the best advisory firm based on excellence, integrity, and client service [7][14] - The firm is focusing on expanding its Strategic Advisory and restructuring capabilities, particularly in international markets such as Europe and the Gulf Region [78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a more favorable environment for strategic ambitions as economic and regulatory uncertainties diminish [18] - There is a belief that M&A activity will gradually improve, driven by competitive responses and a more conducive regulatory environment [55][56] Other Important Information - The company ended the quarter with $318 million in cash and equivalents, and $461 million in net working capital, with no funded debt outstanding [13] - A quarterly dividend of $0.25 per share was approved by the Board [13] Q&A Session Summary Question: Update on sponsor M&A activity - Management noted an increase in sponsor activity, with more confidence in the IPO market and credit markets becoming more accommodative, leading to a gradual return of capital [20][22] Question: Update on Park Hill and financial sponsors - Management indicated that they are still in the early stages of leveraging Park Hill relationships for middle market deals, with ongoing efforts to create holistic relationships with clients [33][36] Question: Regulatory outlook for large cap M&A - Management acknowledged a more conducive regulatory environment under the current administration, but noted that certain industries still face scrutiny, complicating large transactions [46][51] Question: Trajectory of M&A recovery - Management expects a gradual improvement in M&A activity as uncertainties lift, with potential for competitive responses driving additional transactions [55][56] Question: Fundraising backdrop for Park Hill - Management highlighted that while fundraising remains challenging, there is a growing number of transactions in flight, with expectations for improved performance in the second half of the year [60][62]

Financial Data and Key Metrics Changes - The company reported record-setting results with second quarter revenues of $407 million, up 13% year over year, and adjusted pre-tax income of $80 million, up 22% [5][8] - For the first half of the year, revenues increased by 6%, adjusted pre-tax income rose by 13%, and adjusted EPS increased by 19% compared to the previous year [6][8] - The adjusted pre-tax margin for the second quarter was 19.7%, compared to 18.2% for the same period last year [11] Business Line Data and Key Metrics Changes - Strategic Advisory revenues increased significantly for both the second quarter and first half, driven by higher transaction closings and fee realizations [9][16] - Restructuring revenues rose modestly in the second quarter and were slightly up for the first half, with expectations to at least match last year's record levels [14][15] - PJT Park Hill revenues decreased year over year for both periods due to timing of closings, but a strong pipeline is expected to improve performance in the second half [15][16] Market Data and Key Metrics Changes - The market backdrop has improved, with equity valuations rising and market volatility decreasing, leading to increased business confidence and capital availability [6][7] - Global M&A activity remains near record lows relative to total equity market capitalization or GDP, despite a 20% increase in annualized global announced M&A volumes [17] Company Strategy and Development Direction - The company remains committed to long-term investments and aims to build the best advisory firm focused on excellence, integrity, and client service [7] - The strategic advisory pipeline is at record levels, indicating a positive outlook for future M&A activity as economic and regulatory uncertainties diminish [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual recovery in M&A activity, with expectations for a prolonged period of improvement as uncertainties lift [54] - The regulatory environment is perceived to be more conducive to M&A consolidation under the current administration, although challenges remain in certain industries [46][49] Other Important Information - The company ended the quarter with $318 million in cash and equivalents, and no funded debt outstanding [13] - A quarterly dividend of $0.25 per share was approved by the Board [13] Q&A Session Summary Question: Update on sponsor M&A activity - Management noted an increase in sponsor activity, with more confidence in the IPO market and evidence of dividend recap transactions, indicating a potential return to more normalized M&A levels [21][22][23] Question: Continuation fund business growth - Management discussed the growing acceptance of continuation funds as a liquidity management tool, suggesting that while growth may slow with the return of regular M&A, there is still significant potential for this asset class [24][25][26] Question: Update on regulatory environment - Management indicated that the current administration's regulatory approach is more favorable for M&A, with a willingness to negotiate remedies, although complexities remain in certain industries [46][49] Question: Trajectory of M&A recovery - Management expects a gradual improvement in M&A activity, driven by lifting uncertainties and competitive responses within industries [54][55] Question: Fundraising environment for Park Hill - Management acknowledged the challenging fundraising backdrop but noted an increase in placement fees and a strong pipeline for both primary and private capital solutions [59][60][61]

Core Viewpoint - PJT Partners reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and showing an increase from $1.19 per share a year ago, representing an earnings surprise of +13.24% [1] Financial Performance - The company posted revenues of $406.88 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.79%, compared to $360.18 million in the same quarter last year [2] - PJT Partners has consistently surpassed consensus EPS estimates over the last four quarters [2] Stock Performance - PJT Partners shares have increased approximately 15.7% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $1.22 on revenues of $369 million, and for the current fiscal year, it is $6.10 on revenues of $1.64 billion [7] Industry Context - The Financial - Miscellaneous Services industry, to which PJT Partners belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8]