Question-and-Answer SessionPaul TaubmanFounder, Chairman & CEO I think the biggest lesson is if you're going to build it right, it's going to take time, and you need the right foundation. And we started out with a great deal of patience, but no matter how patient you are when you conceive the build-out. In reality, you need to be even more patient because everything takes more time if you're going to do it right. And we focused initially on culture, on attracting the right individuals on having the right f ...

Summary of PJT Partners Conference Call (December 09, 2025) Company Overview - **Company**: PJT Partners (NYSE:PJT) - **Speaker**: Paul Taubman, Chairman, CEO, and founder - **Company Milestone**: Celebrated its first decade with significant growth and development as a leading investment banking firm [1][2] Key Lessons and Strategic Goals - **Key Lesson**: Building a strong foundation takes time; patience is essential for long-term success [4] - **Strategic Goals**: Focus on leveraging the foundational investments made in the first decade to accelerate growth in the next 10 years without compromising standards [5] Investment Focus - **Target Areas**: Major investment opportunities identified in healthcare, technology, and industrials, which are characterized by large wallets and high-impact potential [6][7] - **Growth Strategy**: The company aims to capitalize on previously under-invested verticals to enhance its market position [7] Hiring Outlook - **Hiring Trends**: Anticipation of continued strong hiring as the company seeks to build on its foundational growth and capitalize on new opportunities [8][9] M&A Environment - **Current Administration Impact**: The current administration's approach is more favorable for large consolidating transactions compared to the previous administration, leading to increased deal activity [12][15] - **Private Equity Dynamics**: Private equity firms are currently cautious due to a mismatch between capital invested and returns realized, but there is an expectation of increased activity as conditions improve [16][17] Financing Conditions - **AI Data Center Debt**: Concerns about the impact of AI data center debt on financing markets are noted, but the underlying credit quality remains strong [22][23] - **Market Dynamics**: The potential for disruption in various industries due to AI deployment is highlighted, with a focus on the need for companies to adapt to changing business models [23] M&A Activity Trends - **Deal Size Trends**: While the number of smaller deals has decreased, larger deals are on the rise due to strong corporate balance sheets and a favorable regulatory environment [24][25] - **Overall M&A Volume**: Current M&A activity is returning to normal levels after being suppressed by previous economic conditions and regulatory challenges [26] Restructuring and Liability Management - **Market Outlook**: Continued high levels of restructuring and liability management activity are expected due to increased debt levels and ongoing business model disruptions [31][32] - **Geographic Expansion**: The company is expanding its restructuring capabilities internationally, increasing its addressable market [33] Talent and Compensation - **Hiring Market Dynamics**: The competitive hiring environment is influenced by M&A activity levels, affecting compensation ratios and recruitment efforts [40][43] - **Productivity Gains**: Anticipated increases in productivity due to technological advancements, with a focus on enhancing client service [44][45] Conclusion - **Future Outlook**: The company is positioned for growth in the coming years, with expectations of increased M&A activity, enhanced restructuring capabilities, and a focus on leveraging productivity gains to improve client service [46][47]

Core Viewpoint - PJT Partners Inc. will have its Chairman and CEO, Paul J. Taubman, present at the Goldman Sachs 2025 Financial Services Conference on December 9, 2025, at 2:20 p.m. ET, with a live webcast available on their website [1] Company Overview - PJT Partners is described as a premier, global, advisory-focused investment bank that emphasizes a different approach to investment banking, built from the ground up [1] - The company prides itself on its highly experienced and collaborative teams that provide independent advice along with high-touch client service [1] - PJT Partners has successfully attracted top talent in the markets it operates in, allowing it to deliver leading advice to significant global companies [1] - The firm is involved in transformative transactions and restructurings, raising billions of dollars in capital to support both startups and established companies [1]

Core Viewpoint - PJT Partners Inc. will have its Chairman and CEO, Paul J. Taubman, present at the Goldman Sachs 2025 Financial Services Conference on December 9, 2025, at 2:20 p.m. ET, with a live webcast available on their website [1] Company Overview - PJT Partners is described as a premier, global, advisory-focused investment bank that emphasizes a different approach to client service and advice [1] - The company prides itself on its highly experienced and collaborative teams that provide independent advice and high-touch client service [1] - PJT Partners has successfully attracted top talent in the markets it operates in, delivering leading advice to significant companies and facilitating transformative transactions and restructurings [1] - The firm has raised billions of dollars globally to support both startups and more established companies [1]

Core Insights - Liquidity is crucial for a company's ability to meet debt obligations and can drive business growth, making it a key factor for investors [1] - Four top-ranked stocks identified for potential investment are EverQuote, Inc. (EVER), Innodata Inc. (INOD), PJT Partners Inc. (PJT), and GigaCloud Technology Inc. (GCT) [1][9] Liquidity Measures - Current Ratio: Measures current assets against current liabilities; a ratio below 1 indicates more liabilities than assets, while a range of 1-3 is ideal [3] - Quick Ratio: Indicates ability to pay short-term obligations, with a desirable ratio of more than 1 [4] - Cash Ratio: The most conservative measure, focusing on cash and equivalents relative to current liabilities; a ratio greater than 1 is desirable but may indicate inefficiency [5] Screening Parameters - Asset Utilization: A measure of efficiency, calculated as total sales over the last 12 months divided by the average total assets; a higher ratio than the industry average indicates efficiency [6] - Growth Score: A proprietary metric ensuring that selected stocks have solid growth potential; stocks with a Growth Score of A or B tend to outperform others [10] Company-Specific Insights - **EverQuote, Inc. (EVER)**: Online insurance marketplace with Q3 revenues of $173.9 million, a 20% year-over-year increase; projected Q4 revenues between $174-$180 million [12][13] - **Innodata Inc. (INOD)**: Data engineering company with Q3 revenues of $62.6 million, up 20% year-over-year; expects significant revenue growth from new contracts [15][16] - **PJT Partners Inc. (PJT)**: Advisory-focused investment bank with Q3 revenues of $447 million, a 37% year-over-year increase; management anticipates strong M&A activity due to favorable market conditions [16][17] - **GigaCloud Technology Inc. (GCT)**: Provides B2B e-commerce solutions with Q3 revenues of $333 million, a 10% year-over-year increase; expects Q4 revenues between $328 million and $344 million [19][20]

Core Viewpoint - PJT Partners has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for PJT Partners indicate an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - PJT Partners' upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, PJT Partners is expected to earn $6.85 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 9.6% over the past three months [8].

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - Encore Capital Group, Inc. (ECPG) has seen its earnings estimate increase by 18.5% over the last 60 days [1] - PJT Partners Inc. (PJT) has experienced a 9.6% increase in its earnings estimate over the last 60 days [2] - Everus Construction Group, Inc. (ECG) has had its earnings estimate rise by 11.6% in the past 60 days [3] - United Fire Group, Inc. (UFCS) has seen a significant increase of 29.7% in its earnings estimate over the last 60 days [3] - BioLife Solutions, Inc. (BLFS) has experienced the largest increase, with a 40% rise in its earnings estimate over the last 60 days [4]

Financial Performance - Total Revenues for Q3 2025 were $447.1 million, a 37% increase from $326.3 million in Q3 2024[116] - Advisory Fees reached $389.8 million in Q3 2025, up 37% from $283.8 million in Q3 2024, primarily driven by increased strategic advisory revenues[116] - Placement Fees increased by 51% to $49.2 million in Q3 2025, compared to $32.5 million in Q3 2024, mainly due to higher fund placement revenues[116] - Net Income for Q3 2025 was $74.96 million, an 82% increase from $41.07 million in Q3 2024[116] - Total Revenues for the nine months ended September 30, 2025, were $1,178.5 million, an increase of 16.0% compared to $1,015.9 million for the same period in 2024[119] - Advisory Fees increased to $1,026.5 million for the nine months ended September 30, 2025, up 16.7% from $879.6 million in 2024, primarily due to higher strategic advisory revenues[119] - Placement Fees rose to $128.4 million for the nine months ended September 30, 2025, a 12.8% increase from $113.8 million in 2024, driven by increased fund placement revenues[119] Expenses - Total Expenses for Q3 2025 were $356.1 million, a 29% increase from $276.9 million in Q3 2024[116] - Compensation and Benefits expenses increased by 34% to $303.3 million in Q3 2025, up from $226.8 million in Q3 2024[116] - Total Expenses for the nine months ended September 30, 2025, were $958.5 million, reflecting a 13.0% increase from $848.2 million in 2024[121] - The increase in Compensation and Benefits for the nine months ended September 30, 2025, was $95.3 million, attributed to higher revenues compared to the prior year[121] Income and Taxation - Income Before Provision for Taxes was $90.95 million in Q3 2025, an 84% increase from $49.39 million in Q3 2024[116] - The Company's Provision for Taxes for the nine months ended September 30, 2025, was $9.5 million, with an effective tax rate of 4.3% on pretax income of $220.0 million[123] Client Metrics - The total number of clients increased to 237 in Q3 2025 from 220 in Q3 2024[117] - The number of fees of at least $1 million from client transactions rose to 68 in Q3 2025, compared to 47 in Q3 2024[117] Cash and Investments - As of September 30, 2025, cash, cash equivalents, and short-term investments totaled $521.2 million, down from $546.8 million as of December 31, 2024[128] - Total accounts receivable, net of allowance for credit losses, was $371.3 million as of September 30, 2025, an increase from $320.8 million as of December 31, 2024[129] Share Repurchase - The Company repurchased 1.3 million shares of Class A common stock at an average price of $149.85, totaling $190.5 million during the nine months ended September 30, 2025[138] - The remaining repurchase authorization as of September 30, 2025, was $87.2 million under the $500 million share repurchase program[137] Market Outlook - The company expects market volumes for private capital solutions to reach record levels barring major changes in the macroeconomic outlook[99]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The company reported record results with third-quarter revenue of $447 million, up 37% year-over-year, and nine-month revenues of $1.18 billion, up 16% year-over-year [3][5] - Adjusted pre-tax income for the third quarter was $94 million, up 86%, and for the nine months, it was $230 million, reflecting a 34% increase [3][8] - Adjusted EPS for the third quarter was $1.85, up 99%, and for the nine months, it was $4.43, up 43% from the previous year [9][10] Business Line Data and Key Metrics Changes - Strategic advisory revenues significantly increased for both the third quarter and the first nine months, contributing to overall revenue growth [5][14] - Restructuring revenues rose slightly in both periods, while PJT Partners' revenues were flat in the third quarter and down modestly for the first nine months [5][11] - The primary fundraising environment remains challenged, with PJT Partners' revenues comparable to the previous year, driven by strength in private capital solutions [12] Market Data and Key Metrics Changes - The macro environment has improved, with equity prices near record highs and low volatility in equities and credit, contributing to a recovery in M&A activity [3][4] - Despite favorable conditions, certain industries are experiencing stress due to high interest rates and changing consumer preferences, impacting restructuring activity [11][65] Company Strategy and Development Direction - The company aims to be the world's best investment bank, focusing on building a next-generation investment bank that addresses complex challenges with creative solutions [15] - Continued investment in strategic advisory and talent acquisition is expected to drive future growth, with a 7% increase in headcount year-over-year [15][16] - The company anticipates that restructuring bankers will remain active in addressing liability management opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed tempered optimism about the near-to-intermediate operating environment, acknowledging risks such as geopolitical uncertainty and high interest rates [4] - The company expects restructuring results to meet or exceed last year's record levels, despite mixed trends in the broader market [11][20] - Management believes there is potential for further margin improvement and operating leverage as revenue growth continues [40][44] Other Important Information - The company ended the quarter with $520 million in cash and equivalents, and no funded debt outstanding [10] - A quarterly dividend of $0.25 per share was approved by the board [10] Q&A Session Summary Question: Outlook on restructuring activity - Management sees no reduction in restructuring activity and expects elevated levels to continue, driven by factors such as sponsor client penetration and global expansion [20][22] Question: Partner productivity and revenue expectations - Management does not focus on specific revenue per partner targets but emphasizes hiring impactful individuals to enhance overall financial results [24][27] Question: Impact of government shutdown - Management believes the shutdown will not significantly affect business but is concerned about broader macroeconomic implications [32][34] Question: Primary fundraising business outlook - Management notes that while fundraising is improving, increased competition may arise as more firms seek to tap the market [36] Question: Operating leverage and pre-tax margin outlook - Management expects operating margins to be at the high end of historical levels and believes there is potential for further improvement [40][44] Question: Divergence of deal value versus deal count - Management attributes the increase in larger transactions to a favorable regulatory environment and anticipates a reset in sponsor activity to improve transaction counts [49][51] Question: Credit backdrop and restructuring activity - Management highlights that technological dislocation may lead to an increase in companies needing to address their balance sheets over time [65][66]