Evercore(US:EVR)2025-10-29 10:45Financial Performance - Evercore reported record third quarter net revenues of $1.0 billion, a 41% increase year-over-year on a U.S. GAAP basis[2]. - Year-to-date net revenues reached $2.6 billion, reflecting a 28% increase compared to the same period in 2024[2]. - Third quarter operating income was $216.2 million, up 77% year-over-year, with an operating margin of 20.8%, an increase of 420 basis points[2]. - Net income attributable to Evercore Inc. for the third quarter was $144.6 million, a 84% increase from $78.4 million in Q3 2024[2]. - Adjusted Net Revenues for Q3 2025 reached $1,047.1 million, a 42% increase from $739.5 million in Q3 2024[28]. - For the three months ended September 30, 2025, total revenues increased to $1.046 billion, up 42% from $738.4 million in the same period of 2024[57]. - Net income for the three months ended September 30, 2025, was $157.5 million, representing a 79% increase compared to $88.1 million in the prior year[57]. - Total net revenues for the nine months ended September 30, 2025, were $2,567,543, a 28.1% increase from $2,004,261 in the same period of 2024[73]. - Operating income for the nine months ended September 30, 2025, was $477,779, a 52.2% increase from $314,356 in the same period of 2024[73]. Advisory Fees - Advisory fees for the third quarter increased by $290.7 million, or 49%, year-over-year, driven by large transactions[16]. - Advisory Fees for Q3 2025 increased by $290.5 million, or 49%, year-over-year, reflecting revenue growth from large transactions[30]. - Advisory fees in Q3 2025 reached $883.7 million, reflecting a 0.0% change compared to Q3 2024[67]. - Advisory fees significantly rose to $883,712 in Q3 2025, up 49.0% from $592,980 in Q3 2024[73]. Shareholder Returns - The company returned $623.8 million to shareholders in the first nine months of 2025 through dividends and share repurchases[2]. - A quarterly dividend of $0.84 per share was declared[2]. - The company declared a quarterly dividend of $0.84 per share, payable on December 12, 2025, to stockholders of record on November 28, 2025[48]. Employee Compensation - Employee Compensation and Benefits for Q3 2025 rose by $192.6 million, or 39%, year-over-year, with a compensation ratio of 65.5% compared to 66.5% in the prior year[22]. - Employee compensation and benefits expenses for the three months ended September 30, 2025, were $680.7 million, up from $488.0 million in the same period of 2024[57]. - The company recognized compensation expenses related to RSUs and deferred cash compensation of $131.1 million for the three months ended September 30, 2025, compared to $115.9 million in the prior year[43]. - The company expects to pay $353.8 million related to its deferred cash compensation program through 2029, subject to vesting events[45]. - Employee compensation and benefits for Q3 2025 totaled $664,616, a 39.5% increase from $475,990 in Q3 2024[73]. Costs and Expenses - Non-Compensation Costs for Q3 2025 increased by $25.1 million, or 21%, year-over-year, driven by higher technology and information services expenses[23]. - Adjusted Non-Compensation Costs for Q3 2025 increased by $21.6 million, or 18%, year-over-year, with a Non-Compensation ratio of 13.2%[37]. - Total expenses for Q3 2025 were $802,441, representing a 34.6% increase compared to $596,388 in Q3 2024[73]. - Non-compensation costs for Q3 2025 were $142,026, up 21.5% from $116,914 in Q3 2024[75]. Assets and Liabilities - As of September 30, 2025, the company reported cash and cash equivalents of $851.9 million and investment securities totaling $1.6 billion, with current assets exceeding current liabilities by $2.0 billion[40]. Acquisitions - Evercore completed the acquisition of Robey Warshaw on October 1, 2025, enhancing its advisory capabilities[2]. Rankings and Recognition - Evercore ISI achieved the No.1 ranking in Extel's All-America Research Survey for the fourth consecutive year[2].