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)

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]

Who We Are July 29, 2025 Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America ("GAAP") in the statements of operations, financial condition or cash flows of ...

[PJT Partners Inc. Q2 2025 Earnings Report](index=1&type=section&id=PJT%20Partners%20Inc.%20Reports%20Second%20Quarter%20and%20Six%20Months%202025%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company announced record financial results for Q2 and H1 2025, with significant growth and a strong capital position Q2 2025 Financial Highlights (YoY) | Metric | Q2 2025 | % Change YoY | | :--- | :--- | :--- | | Revenues | $407 million | +13% | | GAAP Pretax Income | $76 million | +19% | | Adjusted Pretax Income | $80 million | +22% | | GAAP Diluted EPS | $1.21 | +14% | | Adjusted EPS | $1.54 | +29% | H1 2025 Financial Highlights (YoY) | Metric | H1 2025 | % Change YoY | | :--- | :--- | :--- | | Revenues | $731 million | +6% | | GAAP Pretax Income | $129 million | +9% | | Adjusted Pretax Income | $136 million | +13% | | GAAP Diluted EPS | $3.21 | +40% | | Adjusted EPS | $2.59 | +19% | - The company maintained a strong balance sheet with **$318 million in cash**, cash equivalents, and short-term investments, and **no funded debt**[5](index=5&type=chunk) - A total of **2.1 million shares** and share equivalents were repurchased through June 30, 2025[5](index=5&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Financial performance was driven by higher strategic advisory fees, with revenue growth outpacing the rise in operating expenses [Revenues](index=2&type=section&id=Revenues) Total revenues grew 13% YoY in Q2 and 6% in H1, primarily fueled by a significant increase in strategic advisory fees Revenues by Segment (in Millions) | Revenue Type | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Advisory Fees | $354.5 | $307.1 | 15% | $636.7 | $595.8 | 7% | | Placement Fees | $43.2 | $46.9 | (8%) | $79.3 | $81.4 | (3%) | | Interest Income & Other | $9.1 | $6.2 | 47% | $15.5 | $12.4 | 24% | | **Total Revenues** | **$406.9** | **$360.2** | **13%** | **$731.4** | **$689.6** | **6%** | - The increase in Advisory Revenues was principally due to a **rise in strategic advisory revenues**[7](index=7&type=chunk)[8](index=8&type=chunk) - The decrease in Placement Revenues was attributed to a **decline in fund placement revenues**[7](index=7&type=chunk)[8](index=8&type=chunk) [Expenses](index=2&type=section&id=Expenses) Total expenses rose to support growth, with non-compensation costs increasing from office expansions and business development Q2 2025 Expense Summary (in Millions) | Expense Category | GAAP | As Adjusted | % of Revenues (Adjusted) | | :--- | :--- | :--- | :--- | | Compensation and Benefits | $276.8 | $274.7 | 67.5% | | Non-Compensation | $53.6 | $52.1 | 12.8% | | **Total Expenses** | **$330.4** | **$326.8** | **80.3%** | H1 2025 Expense Summary (in Millions) | Expense Category | GAAP | As Adjusted | % of Revenues (Adjusted) | | :--- | :--- | :--- | :--- | | Compensation and Benefits | $498.0 | $493.8 | 67.5% | | Non-Compensation | $104.4 | $101.5 | 13.9% | | **Total Expenses** | **$602.4** | **$595.2** | **81.4%** | - The increase in Non-Compensation Expense was primarily due to **higher Occupancy and Related costs** and **increased Travel and Related expenses**[14](index=14&type=chunk)[16](index=16&type=chunk) [Provision for Taxes](index=4&type=section&id=Provision%20for%20Taxes) The company's effective tax rate increased for Q2 but shifted significantly for H1 2025 on a GAAP basis Effective Tax Rate Comparison | Period | Metric | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Q2 | GAAP Effective Tax Rate | 19.7% | 17.7% | | H1 | GAAP Effective Tax Rate | -5.1% | 10.1% | - The effective tax rate for Adjusted Net Income, If-Converted for H1 2025 was **16.5%**, compared with **20.6%** for the full year 2024[18](index=18&type=chunk) - As of June 30, 2025, PJT Partners Inc. owned **61.5%** of PJT Partners Holdings LP[17](index=17&type=chunk) [Capital Management and Shareholder Returns](index=4&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) The company maintained a debt-free balance sheet while actively returning capital to shareholders via repurchases and dividends [Balance Sheet](index=4&type=section&id=Balance%20Sheet) The company reported a strong liquidity position with $318 million in cash and equivalents and no funded debt - The company held **$318 million in Cash, Cash equivalents and Short-term investments** as of June 30, 2025[19](index=19&type=chunk) - There was **no funded debt** on the balance sheet as of the end of the quarter[19](index=19&type=chunk) [Share Repurchases](index=4&type=section&id=Share%20Repurchases) The company repurchased 2.1 million shares in H1 2025, with $87 million remaining under its current authorization Share Repurchase Activity | Period | Shares & Equivalents Repurchased | Average Price per Share | | :--- | :--- | :--- | | Q2 2025 | 642 thousand | $136.43 | | H1 2025 | 2.1 million | $154.63 | - As of June 30, 2025, the company's remaining share repurchase authorization was **$87 million**[21](index=21&type=chunk) [Dividend](index=4&type=section&id=Dividend) The Board of Directors declared a quarterly dividend of $0.25 per share of Class A common stock - A quarterly dividend of **$0.25 per share** of Class A common stock has been declared[22](index=22&type=chunk) - The dividend is payable on **September 17, 2025**, to stockholders of record on **September 3, 2025**[22](index=22&type=chunk) [Appendix: Detailed Financial Statements](index=7&type=section&id=Appendix) The appendix provides unaudited GAAP statements and reconciliations to non-GAAP measures for financial transparency [GAAP Condensed Consolidated Statements of Operations](index=8&type=section&id=GAAP%20Condensed%20Consolidated%20Statements%20of%20Operations%20(unaudited)) The GAAP statement shows Q2 Net Income of $61.4 million and H1 Net Income of $135.6 million GAAP Statement of Operations Highlights (in Thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $406,884 | $360,181 | $731,415 | $689,574 | | **Total Expenses** | $330,405 | $295,782 | $602,358 | $571,272 | | **Income Before Taxes** | $76,479 | $64,399 | $129,057 | $118,302 | | **Net Income** | $61,438 | $53,031 | $135,601 | $106,403 | | **Diluted EPS** | $1.21 | $1.06 | $3.21 | $2.29 | [Reconciliations of GAAP to Non-GAAP Financial Data](index=9&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Financial%20Data%20(unaudited)) This section reconciles GAAP to adjusted metrics, showing Q2 Adjusted Net Income of $66.9 million, or $1.54 per share Reconciliation to Adjusted Pretax Income (in Thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Pretax Income** | $76,479 | $64,399 | $129,057 | $118,302 | | Total Adjustments | $3,591 | $1,320 | $7,138 | $2,641 | | **Adjusted Pretax Income** | $80,070 | $65,719 | $136,195 | $120,943 | Reconciliation to Adjusted Net Income & EPS (in Thousands, except per share) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Income, If-Converted** | $66,859 | $51,261 | $113,723 | $94,336 | | **Adjusted EPS** | $1.54 | $1.19 | $2.59 | $2.17 | [Summary of Shares Outstanding](index=10&type=section&id=Summary%20of%20Shares%20Outstanding%20(unaudited)) The report details weighted-average shares, with 43.4 million diluted shares for Q2 on a GAAP and If-Converted basis Weighted-Average Shares Outstanding | Share Count Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Diluted Shares, GAAP | 43,440,009 | 43,091,718 | 43,951,488 | 43,427,605 | | If-Converted Shares | 43,440,009 | 43,037,141 | 43,951,488 | 43,387,129 | - As of June 30, 2025, the fully-diluted shares outstanding, assuming conversion, was **45,937,559**[37](index=37&type=chunk)

Core Viewpoint - PJT Partners is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with earnings expected at $1.36 per share, reflecting a 14.3% increase, and revenues projected at $381 million, up 5.8% from the previous year [1][3]. Earnings Report Expectations - The earnings report is scheduled for July 29, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The sustainability of any immediate price change will largely depend on management's commentary during the earnings call [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 17.01% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for PJT Partners aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise History - PJT Partners has a history of beating consensus EPS estimates, having done so in the last four quarters, with a notable surprise of +11.70% in the last reported quarter [13][14]. Industry Comparison - In the same industry, SouthState is expected to report earnings of $2 per share, a year-over-year increase of 11.7%, with revenues projected at $639.47 million, up 50.3% [18][19]. - SouthState has an Earnings ESP of +3.76% and a Zacks Rank of 2 (Buy), suggesting a strong likelihood of beating the consensus EPS estimate [20].

Group 1 - PJT Partners has evolved significantly since its separation from Blackstone in 2015 [1] - The company operates in three main business lines: strategic advisory, restructuring, and Park [1]

PART I. FINANCIAL INFORMATION [FINANCIAL STATEMENTS](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's Q1 2025 unaudited statements show higher net income due to a tax benefit and a declared dividend **Condensed Consolidated Statements of Operations (Q1 2025 vs. Q1 2024)** | | Three Months Ended March 31, | | :--- | :--- | :--- | | (In thousands) | **2025** | **2024** | | **Total Revenues** | **$324,531** | **$329,393** | | Total Expenses | $271,953 | $275,490 | | Income Before Provision (Benefit) for Taxes | $52,578 | $53,903 | | Provision (Benefit) for Taxes | $(21,585) | $531 | | **Net Income** | **$74,163** | **$53,372** | | Net Income Attributable to PJT Partners Inc. | $54,016 | $32,623 | | **Diluted EPS** | **$1.99** | **$1.22** | **Condensed Consolidated Statements of Financial Condition** | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | (In thousands) | | | | **Cash and Cash Equivalents** | **$194,271** | **$483,877** | | Accounts Receivable, Net | $338,628 | $320,783 | | **Total Assets** | **$1,396,700** | **$1,635,334** | | Accrued Compensation and Benefits | $72,579 | $299,255 | | **Total Liabilities** | **$572,388** | **$733,691** | | **Total Equity** | **$824,312** | **$901,643** | - Net cash used in operating activities was **$75.9 million** for Q1 2025, compared to $38.8 million in Q1 2024, primarily due to a larger decrease in accrued compensation and benefits after bonus payments[25](index=25&type=chunk) - The Board declared a quarterly dividend of **$0.25 per share** of Class A common stock, payable on June 18, 2025[88](index=88&type=chunk) - The company operates as a single reportable segment, providing advisory and placement services, with performance assessed on a consolidated basis by the CODM[84](index=84&type=chunk)[85](index=85&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=23&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Q1 2025 saw a slight revenue and expense decrease, with strong liquidity and a stable M&A environment [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Revenues and expenses both decreased 1%, while a significant tax benefit drove a 66% increase in net income **Q1 2025 vs Q1 2024 Performance** | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$324.5M** | **$329.4M** | **(1)%** | | Advisory Fees | $282.2M | $288.7M | (2)% | | Placement Fees | $36.0M | $34.5M | 4% | | **Total Expenses** | **$272.0M** | **$275.5M** | **(1)%** | | Compensation & Benefits | $221.1M | $228.9M | (3)% | | **Net Income Attributable to PJT** | **$54.0M** | **$32.6M** | **66%** | - The decrease in Advisory Fees was due to lower revenues from restructuring and private capital solutions, which was mostly offset by an increase in strategic advisory revenues[113](index=113&type=chunk) - The decrease in Compensation and Benefits was principally driven by a lower accrual rate compared to the prior year[115](index=115&type=chunk) - The effective tax rate was **-41.1%** for Q1 2025 compared to 1.0% for Q1 2024, primarily due to an increased tax benefit related to the delivery of vested shares[116](index=116&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $226.8 million in cash and investments to fund operations and returns - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments of **$226.8 million**[121](index=121&type=chunk) - The company has a **$100 million** syndicated revolving credit facility maturing in July 2026, which was undrawn as of March 31, 2025[120](index=120&type=chunk)[71](index=71&type=chunk) - During Q1 2025, the company repurchased 0.8 million shares for **$127.1 million**, with **$150.5 million** remaining under the share repurchase program[130](index=130&type=chunk)[55](index=55&type=chunk) - In Q1 2025, certain holders exchanged 0.3 million Partnership Units for **$57.3 million** in cash[128](index=128&type=chunk)[65](index=65&type=chunk) [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=31&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Market risk exposures remain materially unchanged from the previous fiscal year-end - The company's exposures to market risk have not changed materially since December 31, 2024[140](index=140&type=chunk) [CONTROLS AND PROCEDURES](index=32&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Disclosure controls and procedures were deemed effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by this report[141](index=141&type=chunk) - **No material changes** occurred in the company's internal control over financial reporting during the most recent quarter[142](index=142&type=chunk) PART II. OTHER INFORMATION [LEGAL PROCEEDINGS](index=33&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces no pending legal proceedings expected to materially impact its financial condition - The company is not currently party to any **material pending legal proceedings** that would have a material effect on its financial state[144](index=144&type=chunk) [RISK FACTORS](index=33&type=section&id=ITEM%201A.%20RISK%20FACTORS) Risk factors remain materially unchanged from the previous Annual Report on Form 10-K - There were **no material changes** from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[146](index=146&type=chunk) [UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=33&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased $127.1 million of shares in Q1 2025, with $150.5 million remaining in its authorization **Issuer Purchases of Equity Securities in Q1 2025** | Period | Total Shares Repurchased | Average Price Paid Per Share | Remaining Authorization | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31 | 198,547 | $160.82 | $245.7M | | Feb 1 - Feb 28 | 305,071 | $169.45 | $194.0M | | Mar 1 - Mar 31 | 298,298 | $145.79 | $150.5M | | **Total** | **801,916** | **$158.51** | **$150.5M** | - The company issued eight corresponding shares of its Class B common stock in connection with the issuance or transfer of Partnership Units during Q1 2025[149](index=149&type=chunk) [DEFAULTS UPON SENIOR SECURITIES](index=34&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This item is not applicable for the reporting period - Not applicable[150](index=150&type=chunk) [MINE SAFETY DISCLOSURES](index=34&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable for the reporting period - Not applicable[151](index=151&type=chunk) [OTHER INFORMATION](index=34&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements in Q1 2025 - During the three months ended March 31, 2025, none of the Company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement[152](index=152&type=chunk) [EXHIBITS](index=35&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data - Lists exhibits filed with the report, including CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act, and Inline XBRL documents[154](index=154&type=chunk)

Group 1 - The Value Lab focuses on long-only value investment ideas, targeting a portfolio yield of approximately 4% and has performed well over the last five years by engaging in international markets [1][2] - PJT Partners experienced flat performance in restructuring last quarter, but the current complex dealmaking environment may present new opportunities [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to yield non-correlated and outsized returns in the current economic context [3]