PJT Partners (PJT) - 2025 Q2 - Quarterly Results

PJT Partners Inc. Q2 2025 Earnings Report Financial Highlights 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] - A total of 2.1 million shares and share equivalents were repurchased through June 30, 2025[5] Financial Performance Financial performance was driven by higher strategic advisory fees, with revenue growth outpacing the rise in operating expenses 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][8] - The decrease in Placement Revenues was attributed to a decline in fund placement revenues[7][8] 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][16] Provision for Taxes 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] - As of June 30, 2025, PJT Partners Inc. owned 61.5% of PJT Partners Holdings LP[17] Capital Management and Shareholder Returns The company maintained a debt-free balance sheet while actively returning capital to shareholders via repurchases and dividends Balance Sheet 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] - There was no funded debt on the balance sheet as of the end of the quarter[19] Share Repurchases 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] 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] - The dividend is payable on September 17, 2025, to stockholders of record on September 3, 2025[22] Appendix: Detailed Financial Statements The appendix provides unaudited GAAP statements and reconciliations to non-GAAP measures for financial transparency GAAP Condensed Consolidated Statements of Operations 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 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 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]