PJT Partners Inc. Reports Record Full Year and Fourth Quarter 2025 Results

Core Viewpoint - PJT Partners Inc. reported significant growth in revenues and net income for the year and quarter ended December 31, 2025, driven by increases in advisory and placement fees, despite a decline in interest income. Revenue Summary - Total revenues for Q4 2025 were $535.2 million, a 12% increase from $477.3 million in Q4 2024. For the full year 2025, total revenues reached $1.7137 billion, up 15% from $1.4932 billion in 2024 [2][3]. - Advisory fees increased by 9% to $473.9 million in Q4 2025 from $434.5 million in Q4 2024, and for the full year, they rose 14% to $1.5004 billion from $1.314 billion [2][3]. - Placement fees saw a substantial increase of 64% in Q4 2025, totaling $53.2 million compared to $32.4 million in Q4 2024, and a 24% increase for the full year to $181.6 million from $146.3 million [2][3]. - Interest income and other revenues decreased by 22% in Q4 2025 to $8.1 million from $10.4 million in Q4 2024, and by 4% for the full year to $31.7 million from $32.9 million [2][4]. Expense Summary - Total expenses for Q4 2025 were $412.3 million, a 10% increase from $374.4 million in Q4 2024. For the full year, total expenses rose to $1.3708 billion from $1.2226 billion, marking a 12% increase [6][7]. - Compensation and benefits expenses for Q4 2025 were $356.6 million, up from $326 million in Q4 2024, while for the full year, they increased to $1.158 billion from $1.032 billion [8][9]. - Non-compensation expenses for Q4 2025 were $55.6 million, compared to $48.4 million in Q4 2024, and for the full year, they rose to $212.8 million from $190.5 million [10][11]. Income Summary - The company reported a net income of $99.2 million for Q4 2025, an increase from $91 million in Q4 2024. For the full year, net income was $309.7 million, up from $238.5 million in 2024 [28][31]. - The effective tax rate for GAAP net income for Q4 2025 was 19.3%, compared to 11.6% in Q4 2024. For the full year, the effective tax rate was 9.7%, down from 11.9% in 2024 [14][15]. Capital Management - As of December 31, 2025, the company held cash, cash equivalents, and short-term investments of $586 million and had no funded debt [16]. - During 2025, the company repurchased 2.4 million shares at an average price of $157.18 per share, with a remaining repurchase authorization of $82 million [17][18]. Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.25 per share of Class A common stock, payable on March 18, 2026 [19]. Investor Call - PJT Partners will host a conference call on February 3, 2026, to discuss its financial results for the full year and fourth quarter of 2025 [20].