Evercore(US:EVR)2025-11-05 21:07Revenue and Income - Total revenues for the Investment Banking & Equities and Investment Management segments include fees for services, transaction-related client reimbursements, and other revenue, with net revenues reflecting total revenues less interest expense[211]. - Revenue trends in the advisory business are correlated to M&A activity, restructuring activity, and capital advisory activity, with fluctuations based on market conditions and client transaction completions[213]. - The Investment Management segment generates revenue primarily from management fees, fiduciary fees, and gains or losses on investments, with management fees typically representing a percentage of assets under management (AUM)[214][215]. - Net Revenues for the three months ended September 30, 2025, were $1.04 billion, an increase of $304.7 million, or 41%, compared to $734.2 million for the same period in 2024[239]. - Advisory Fees increased by $290.7 million, or 49%, to $883.7 million for the three months ended September 30, 2025, compared to $593.0 million for the same period in 2024[239]. - Net Income Attributable to Evercore Inc. was $144.6 million for the three months ended September 30, 2025, an increase of $66.2 million, or 84%, compared to $78.4 million for the same period in 2024[238]. - Net Revenues for the nine months ended September 30, 2025, were $2.57 billion, an increase of $563.3 million, or 28%, compared to $2.00 billion for the same period in 2024[250]. - Net Income Attributable to Evercore Inc. for the nine months ended September 30, 2025, was $388.0 million, an increase of $150.1 million, or 63%, compared to $237.8 million for the same period in 2024[249]. - Net Revenues for the nine months ended September 30, 2025, were $2.50 billion, an increase of $558.4 million, or 29%, compared to $1.94 billion for the same period in 2024[272]. - Advisory Fees increased by $547.8 million, or 34%, driven by higher revenue from both M&A and non-M&A assignments[272]. Expenses - Employee compensation and benefits expenses include all payments for services rendered, with a focus on maintaining competitive compensation levels to retain key personnel[218][220]. - Total Expenses for the three months ended September 30, 2025, were $822.7 million, an increase of $210.5 million, or 34%, compared to $612.2 million for the same period in 2024[242]. - Employee Compensation and Benefits Expense was $680.7 million for the three months ended September 30, 2025, an increase of $192.6 million, or 39%, compared to $488.0 million for the same period in 2024[242]. - Non-compensation expenses were $142.0 million for the three months ended September 30, 2025, an increase of $25.1 million, or 21%, compared to $116.9 million for the same period in 2024[243]. - Employee Compensation and Benefits Expense increased to $1.69 billion for the nine months ended September 30, 2025, up $354.4 million, or 27%, from $1.33 billion for the same period in 2024[253]. - Non-compensation expenses rose to $400.7 million for the nine months ended September 30, 2025, an increase of $52.7 million, or 15%, compared to $348.0 million for the same period in 2024[254]. - Non-compensation expenses increased to $388.4 million, up $51.4 million, or 15%, primarily due to higher technology and information services expenses[274]. - Employee Compensation and Benefits Expense increased by $7.7 million, or 23%, to $41.0 million for the nine months ended September 30, 2025, primarily due to higher incentive compensation and base salaries[294]. - Non-Compensation expenses rose by $1.3 million, or 12%, to $12.3 million, driven by increased technology and information services and professional fees[295]. Investments and Assets - Income from equity method investments includes the company's share of income or loss from equity interests in various entities, impacting income before income taxes[230]. - Income from Equity Method Investments decreased to $2.8 million for the nine months ended September 30, 2025, down $2.5 million, or 47%, from $5.3 million in 2024[256]. - The Investment Management segment's operating income decreased by 26% for the nine months ended September 30, 2025, compared to the same period in 2024[278]. - Assets Under Management (AUM) in Wealth Management increased by $1.5 billion, or 10%, reaching $15.4 billion as of September 30, 2025[281]. - AUM activity for Wealth Management showed inflows of $1.223 billion and outflows of $1.001 billion, with market appreciation contributing $1.231 billion[283]. - The Investment Securities portfolio totaled $1.43 billion as of September 30, 2025, with 88% comprised of U.S. Treasury securities[342]. Cash Flow and Liquidity - Operating cash flows resulted in a net inflow of $449.0 million for the nine months ended September 30, 2025, compared to $301.8 million for the same period in 2024[298][299]. - Cash, Cash Equivalents, and Restricted Cash decreased by $20.5 million to $861.6 million at September 30, 2025, from $882.1 million at December 31, 2024[298]. - The company’s liquidity is highly dependent on revenue from its Investment Banking & Equities segment, which is influenced by market conditions and transaction volumes[301]. - As of September 30, 2025, the company had $851.9 million in Cash and Cash Equivalents and $1.57 billion in Investment Securities and Certificates of Deposit[328]. Share Repurchase and Capital Management - During the nine months ended September 30, 2025, the company repurchased 1,912,169 Class A Shares for a total of $506.2 million, at an average cost per share of $264.72[309]. - The company authorized a share repurchase program allowing for the repurchase of up to $1.6 billion worth of Class A Shares and/or LP Units as of April 29, 2025[306]. - The company issued an aggregate of $250.0 million of senior notes on July 24, 2025, including $125.0 million of 5.17% Series K Notes and $125.0 million of 5.47% Series L Notes[317]. - The company has total commitments of $2.6 million relating to future capital contributions to private equity funds as of September 30, 2025[325]. Forward-Looking Statements and Risks - The company undertakes no obligation to publicly update or review any forward-looking statements, which are subject to various risks and uncertainties[210]. - Actual results could differ materially from the estimates made by management[344]. - The company does not believe it faces any material interest rate risk, foreign currency exchange risk, equity price risk, or other market risk, except as disclosed in the report[346].