Lazard Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Lazard, Inc. reported a net revenue of $907 million for Q4 2025, marking an 11% increase from $817 million in Q4 2024, and a full-year net revenue of $3,099 million, a 2% increase from $3,052 million in 2024 [4][40] - The company’s adjusted net income for Q4 2025 was $89 million, or $0.80 per share, a 5% increase from $85 million in Q4 2024, while the full-year adjusted net income was $266 million, or $2.44 per share, a 9% increase from $244 million in 2024 [2][45] - CEO Peter R. Orszag emphasized the successful execution of the Lazard 2030 long-term growth strategy, highlighting record revenues in Financial Advisory and significant inflows in Asset Management [3][7] Financial Performance - For Q4 2025, Financial Advisory generated net revenue of $542 million, a 4% increase from Q4 2024, while for the full year, it reported $1,834 million, also a 4% increase [5][45] - Asset Management reported net revenue of $367 million for Q4 2025, an 18% increase from Q4 2024, and $1,275 million for the full year, a 7% increase [11][12] - The company’s total assets under management (AUM) reached $254 billion as of December 31, 2025, a 12% increase from $226 billion a year earlier [14][49] Shareholder Returns - Lazard returned $98 million to shareholders in Q4 2025, including $47 million in dividends and $50 million in stock repurchases [25][27] - For the full year 2025, the total return to shareholders was $393 million, comprising $187 million in dividends and $91 million in stock repurchases [26][27] Cost Management - Compensation and benefits expense for Q4 2025 was $638 million, up from $534 million in Q4 2024, with an adjusted compensation ratio of 65.5% [15][16] - Non-compensation expenses for Q4 2025 were $183 million, consistent with Q4 2024, while adjusted non-compensation expenses were $159 million, a 3% increase [19][20] Strategic Developments - Tracy Farr has been appointed as the new Chief Financial Officer, indicating a strategic move to strengthen the leadership team [3] - Lazard's restructuring and liability management practice has been engaged in various significant mandates, showcasing its active role in the market [9]