PJT Partners (PJT) - 2025 Q4 - Annual Results

Financial Performance - Record Revenues of $1.71 billion, an increase of 15% from the previous year[5] - GAAP Pretax Income of $343 million, a 27% increase year-over-year; Adjusted Pretax Income of $357 million, up 28%[5] - GAAP Diluted EPS of $6.68, a 36% increase; Adjusted EPS of $6.98, up 39% from the previous year[5] - Fourth Quarter Revenues reached $535 million, a 12% increase year-over-year[5] - Total revenues for the three months ended December 31, 2025, were $535,163,000, an increase of 12.1% from $477,281,000 in the same period of 2024[37] - Advisory fees reached $473,869,000 for the three months ended December 31, 2025, compared to $434,453,000 in 2024, reflecting a growth of 9.1%[37] - Net income attributable to PJT Partners Inc. for the year ended December 31, 2025, was $180,115,000, up 33.9% from $134,393,000 in 2024[37] - Adjusted net income, if converted, for the three months ended December 31, 2025, was $111,826,000, representing an increase of 30.7% from $85,558,000 in 2024[38] - The diluted net income per share for the year ended December 31, 2025, was $6.68, compared to $4.92 in 2024, marking a 35.7% increase[37] - Adjusted pretax income for the year ended December 31, 2025, was $356,782,000, an increase of 28.2% from $278,342,000 in 2024[38] Expenses and Costs - Compensation and Benefits Expense for the year was $1.16 billion, up from $1.03 billion in the prior year[12] - Non-Compensation Expense for the year was $213 million, compared to $191 million in the prior year[14] - Total expenses for the three months ended December 31, 2025, were $412,254,000, a rise of 10.1% from $374,401,000 in the same period of 2024[37] Taxation - The effective tax rate for GAAP Net Income for the year was 9.7%, down from 11.9% in the previous year[20] - The company reported a provision for taxes of $33,181,000 for the year ended December 31, 2025, compared to $32,096,000 in 2024[38] - The tax rate on Adjusted Pretax Income assumes all Partnership Units have been exchanged for shares of Class A common stock, affecting corporate-level tax[5] Shareholder Actions - The Company repurchased 2.4 million shares at an average price of $157.18 per share during the year[22] Headcount and Resources - Firm-wide headcount increased to 1,224, a 7% rise from the previous year[5] - Cash, Cash equivalents, and Short-term investments totaled $586 million with no funded debt as of year-end[5] Acquisitions and Adjustments - The company highlighted the impact of acquisition-related expenses on its financial results, with adjustments made to reflect these in non-GAAP measures[33] - The acquisition-related compensation expense for equity-based awards from the acquisition of deNovo Partners on October 1, 2024, was added back to GAAP Pretax Income[2] - Amortization of intangible assets related to acquisitions of PJT Capital LP, CamberView, and deNovo Partners was added back to GAAP Pretax Income[3] - For the year ended December 31, 2024, a total reclassification of $13.1 million was made from Other Expenses to Communications and Information Services[1] - For the three months ended December 31, 2024, a reclassification of $3.5 million occurred from Other Expenses to Communications and Information Services[1] Share Dilution - The dilutive impact under the treasury stock method of unvested RSUs with a remaining service requirement was represented[6] - The dilutive impact assuming the conversion of vested Partnership Units and unvested Partnership Units was calculated as if conditions were achieved at the beginning of the reporting period[7] - The number of shares assumes the conversion of all Partnership Units, including those that achieved certain market conditions[8] - All Partnership Units and unvested RSUs are assumed to have been converted to shares of Class A common stock[9]