Lazard(US:LAZ)2026-01-29 11:32Financial Performance - Lazard reported fourth-quarter 2025 net revenue of $907 million, an 11% increase from $817 million in Q4 2024, and full-year net revenue of $3,099 million, a 2% increase from $3,052 million in 2024[2]. - Financial Advisory segment achieved fourth-quarter net revenue of $542 million, a 4% increase year-over-year, and full-year net revenue of $1,834 million, also a 4% increase from 2024[4]. - Asset Management reported fourth-quarter net revenue of $367 million, an 18% increase from Q4 2024, and full-year net revenue of $1,275 million, a 7% increase from 2024[10]. - Total revenue for Q4 2025 reached $929,378,000, representing a 21% increase year-over-year and an 11% increase from Q3 2025[29]. - Net revenue for the year ended December 31, 2025, reached $3,029,813, a 5% increase from $2,889,554 in 2024[38]. Income and Earnings - Adjusted net income for Q4 2025 was $89 million, a 5% increase from $85 million in Q4 2024, while full-year adjusted net income was $266 million, a 9% increase from $244 million in 2024[2]. - Basic net income per share for Q4 2025 was $0.49, down 31% from $0.71 in Q4 2024[29]. - Adjusted net income increased by 9% to $266,364 compared to $244,110 in the previous year[38]. - Adjusted diluted net income per share rose to $2.44, reflecting a 4% increase from $2.34 in 2024[38]. Assets and Management - Assets Under Management (AUM) reached $254 billion as of December 31, 2025, a 12% increase from $226 billion in 2024[10]. - Average AUM for Q4 2025 was $261 billion, a 12% increase year-over-year, and for the full year, it was $247 billion, a 2% increase from 2024[10]. - Total assets as of December 31, 2025, were $4,940,734,000, an increase from $4,793,993,000 in 2024[33]. Expenses and Ratios - Operating expenses for the year ended December 31, 2025, totaled $2,771,249,000, a 4% increase from 2024[31]. - The adjusted compensation ratio for Q4 2025 was 65.5%, slightly down from 65.6% in Q4 2024, with a full-year adjusted compensation ratio of 65.5% compared to 65.9% in 2024[11]. - Compensation and benefits expenses for Q4 2025 were $637,694,000, a 28% increase compared to Q4 2024[29]. - Adjusted compensation and benefits expense for 2025 was $1,985 million, up 4% from $1,903 million in 2024[41]. - The effective tax rate decreased to 22.7% from 24.4% in 2024[38]. Shareholder Returns - Lazard returned $98 million to shareholders in Q4 2025, including $47 million in dividends and $50 million in stock repurchases[14]. Leadership and Strategy - The company appointed Tracy Farr as Chief Financial Officer, indicating a focus on leadership and strategic direction[1]. - Lazard's CEO highlighted strong client demand for contextual alpha, positioning the company for substantial growth opportunities ahead[1].