Core Insights - Moelis & Company reported record fourth-quarter revenues of $488 million, an 11% increase year-over-year, and full-year adjusted revenues rose 28% to $1.54 billion, driven by a 35% growth in M&A and a record-setting year for capital markets [2][5][4] Financial Performance - The adjusted compensation ratio improved to 61.1% in Q4 from 69% the previous year, contributing to an adjusted pre-tax margin of 28.6% in Q4, up from 16.4% in 2024 [12][14] - Adjusted EPS reached $2.99, reflecting a 64% increase from $1.82 in 2024, attributed to revenue growth and reduced expense ratios [15][4] - The firm ended the period with $849 million in cash and no debt, and declared a quarterly dividend of $0.65 while authorizing up to $300 million in share buybacks [18][17] M&A and Market Outlook - Management anticipates a constructive transaction environment in 2026, driven by strong equity market performance and active strategic pursuits for larger transformational deals [6][3] - The M&A market is expected to see continued mega-cap activity, with easing valuation disconnects and improved financing conditions potentially broadening momentum into the middle market [7][6] Capital Structure Advisory - The firm sees a long runway for liability management assignments due to leverage across many companies, with expectations for flat to up growth in capital structure advisory for 2026 [8][6] - Management noted that while geopolitical uncertainty remains a concern, boards may proceed with transactions unless significant shocks occur [9][10] Talent and Business Development - Moelis added 21 managing directors in 2025, indicating ongoing investment in talent and capabilities, with a focus on building its Private Capital Advisory business [19][22] - The PCA team is integrated with industry bankers, and while current revenue from PCA is limited, significant growth is expected as the firm moves into 2026 [23][22]

Core Insights - Lazard reported $892.11 million in revenue for Q4 2025, a year-over-year increase of 9.8%, with an EPS of $0.80 compared to $0.78 a year ago, exceeding the Zacks Consensus Estimate of $810.16 million by 10.12% [1] Financial Performance - The company delivered an EPS surprise of 18.08%, with the consensus EPS estimate being $0.68 [1] - Adjusted net revenue for Asset Management was $338.59 million, surpassing the average estimate of $316.2 million, representing a year-over-year change of 17.9% [4] - Adjusted net revenue for Financial Advisory was $541.63 million, exceeding the average estimate of $483.88 million, with a year-over-year change of 6.7% [4] - Adjusted net revenue for Corporate was $11.89 million, compared to the estimated $10.07 million, but showed a significant decline of 32.2% year-over-year [4] Assets Under Management - Total Equity assets under management were $199.26 billion, below the average estimate of $203.57 billion [4] - Total Fixed Income assets under management were $45.64 billion, compared to the average estimate of $48.09 billion [4] - Net Flows were reported at -$19.71 billion, worse than the estimated -$11.19 billion [4] - End of Period assets under management totaled $254.30 billion, below the average estimate of $260.69 billion [4] Stock Performance - Lazard shares returned 10.8% over the past month, outperforming the Zacks S&P 500 composite's 0.9% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported firm-wide revenue of $3 billion, an increase of 5% from 2024, with fourth-quarter revenue of $892 million, up 10% year-over-year [12][5] - Financial advisory revenue reached $1.8 billion for the year, with fourth-quarter revenue of $542 million, up 7% from the previous year [12][7] - Asset management revenue was $1.2 billion for the year, with fourth-quarter revenue of $339 million, up 18% year-over-year [9][14] - The average revenue per Managing Director (MD) increased to $8.9 million, up $2.5 million since 2023 [8][20] - The adjusted effective tax rate for the full year was 22.7% [17] Business Line Data and Key Metrics Changes - In financial advisory, record revenue was achieved in EMEA and the Private Capital Advisory group, with strong performance in restructuring and liability management [7][12] - Asset management saw a 12% year-over-year increase in assets under management (AUM), totaling $254 billion as of December 31, 2025 [15][9] - The company achieved record gross inflows exceeding $50 billion in asset management, supported by a focus on sales and distribution [9][10] Market Data and Key Metrics Changes - The company reported a current level of won but not yet funded mandates at $13 billion, indicating strong client demand [7][10] - The average AUM for the fourth quarter was $261 billion, reflecting a 12% increase from 2024 [15] Company Strategy and Development Direction - The company is focused on executing its Lazard 2030 long-term growth strategy, with expectations for substantial growth in both financial advisory and asset management [5][6] - There is a strategic emphasis on enhancing connectivity with private capital, aiming to increase advisory revenue from private capital to 50% over time [22] - The company plans to continue investing in talent, with a goal of adding 10-15 Financial Advisory Managing Directors each year [7][8] - The asset management business is being transformed to focus on areas where the company can add the most value, particularly in active management and customized solutions [25][26] Management's Comments on Operating Environment and Future Outlook - Management anticipates an acceleration in financial advisory activity in 2026, despite ongoing policy and geopolitical uncertainties [24][19] - The company expects M&A activity to increase alongside elevated restructuring and liability management activity due to disparities in corporate performance [24][19] - Management highlighted the importance of AI and contextual alpha in enhancing client outcomes and driving future growth [26][28] Other Important Information - The company returned $393 million to shareholders in 2025, including dividends and share repurchases [18] - The compensation ratio for the full year was 65.5%, a slight improvement from 65.9% in the prior year [17] Q&A Session Summary Question: Advisory trends and revenue mix among non-M&A businesses - The revenue mix was approximately 60% M&A and 40% non-M&A, with expectations for the non-M&A component to rise over time [32][33] Question: CFO transition and its implications - The CFO transition is viewed as normal and smooth, with the outgoing CFO serving as a senior advisor during the transition [40][39] Question: Observations on private equity activity and deal flow - Management anticipates heightened private equity activity in 2026 as sponsors seek to return capital to LPs [48][49] Question: Asset management fee rates and unfunded mandates - The exit rate was modestly higher than the quarter run rate, with a healthy mix in the $13 billion of won but not yet funded mandates [52][54] Question: Impact of geopolitical tensions on corporate discussions - There has been no impact on corporate discussions from increased geopolitical tensions, and the regulatory environment is seen as more accommodating to deals [60][62]

Core Viewpoint - Charles Schwab Corporation is experiencing strong financial performance, with analysts projecting a significant upside in its stock price based on recent earnings and revenue growth [1][2][6] Financial Performance - For the quarter ending December 2025, Charles Schwab reported a revenue of $6.34 billion, reflecting an 18.9% increase year-over-year, slightly exceeding the Zacks Consensus Estimate of $6.33 billion [2][6] - The company's earnings per share (EPS) for the same period was $1.39, up from $1.01 a year ago, surpassing the consensus estimate of $1.36 and delivering a surprise of 2.31% [3][6] Stock Performance - Currently, SCHW is priced at $101.79, with a recent change of $0.80, indicating a 0.79% increase [4] - Over the past year, SCHW has experienced a high of $104.98 and a low of $65.88, suggesting a stable yet dynamic trading environment [4] Market Position - Charles Schwab's market capitalization is approximately $184.77 billion, with a trading volume of 14.67 million shares, reflecting strong investor confidence [5] - Barclays analyst Benjamin Budish has set a price target of $125 for SCHW, indicating a potential upside of 22.8% from its current price [1][6]

Core Insights - Charles Schwab Corporation is set to release its quarterly earnings on January 21, 2026, with Wall Street expecting an earnings per share (EPS) of $1.37 and revenue of approximately $6.37 billion [1][6] Financial Performance - The company's performance is anticipated to be driven by robust trading activity and a significant rise in net interest revenues (NIR), projected to increase by 23.7% year-over-year [2][6] - In the third quarter of 2025, Schwab's earnings exceeded the Zacks Consensus Estimate, supported by a strong asset management business and increased trading revenues [3] - Schwab has a history of earnings surprises, surpassing the Zacks Consensus Estimate in the last four quarters with an average beat of 6.6% [3][6] Valuation Metrics - The company has a price-to-earnings (P/E) ratio of approximately 22.77, a price-to-sales ratio of about 6.94, and an enterprise value to sales ratio around 6.83 [4] - The earnings yield is approximately 4.39%, indicating the return on investment [4] Debt and Liquidity - Schwab's debt-to-equity ratio is 0.56, suggesting a moderate level of debt compared to equity [5] - The current ratio is 0.50, indicating potential challenges in covering short-term liabilities with short-term assets [5]

Company Overview - Charles Schwab Corporation, trading under the symbol SCHW on the NYSE, is a leading financial services company offering brokerage, banking, and financial advisory services [1] - The company competes with financial giants like Fidelity and TD Ameritrade [1] Stock Performance - As of today, SCHW is trading at $104.08, reflecting a 2.47% increase, or $2.51, from the previous day [2] - The stock has experienced a trading range between $101.74 and $104.43, with the latter being its highest price over the past year [2] - Charles Schwab's market capitalization is approximately $189.31 billion, supported by a trading volume of 5,631,028 shares [3] - Despite a yearly low of $65.88, the stock's current performance shows resilience and potential for growth [3] Analyst Insights - Patrick O'Shaughnessy from Raymond James set a new price target for SCHW at $114, indicating a potential increase of 9.59% from its current price of $104.02 [1] - This upward movement aligns with the optimistic price target set by Raymond James, suggesting positive investor sentiment [2] Market Dynamics - Liz Ann Sonders, the chief investment strategist at Charles Schwab, discussed the potential for a significant decline in oil prices in late 2026 into 2027, which could influence market dynamics and investor strategies [4] - The market's reaction to recent U.S. military action in Venezuela was also addressed, which could impact stock performance [4] - Investors are advised to consider these factors when navigating the market in 2026, as the setup for stocks may present opportunities or challenges [5]

Core Insights - Lazard Ltd reported strong financial performance for Q3 2025, exceeding market expectations in both earnings and revenue [1][2][3] Financial Performance - Earnings Per Share (EPS) for Q3 2025 was $0.56, surpassing the estimated EPS of $0.44 and showing a significant increase from $0.38 in the previous year [2][6] - Revenue for the quarter reached $748.08 million, exceeding the estimated $726.25 million and marking a 12.2% increase from $645.91 million in the same period last year [3][6] Market Valuation - The company has a price-to-earnings (P/E) ratio of approximately 15.04, indicating how the market values its earnings [4] - The price-to-sales ratio is about 1.46, reflecting investor willingness to pay per dollar of sales [4] - The enterprise value to sales ratio stands at 1.31, showing total valuation relative to revenue [4] Financial Stability - Lazard's debt-to-equity ratio is 0.70, indicating a balanced approach to financing its assets [5] - The current ratio of 1.89 suggests a strong ability to cover short-term liabilities with short-term assets [5] - An earnings yield of 6.65% provides a comprehensive view of Lazard's financial position and potential for investors [5]

Financial Data and Key Metrics Changes - For the first nine months of 2025, total firm-wide revenue was $2.1 billion, including record Financial Advisory revenue of $1.3 billion [4] - Third-quarter firm-wide revenue reached $725 million, up 12% year-over-year, driven by both business segments [8] - Financial Advisory revenue for the third quarter totaled $422 million, up 14% from the previous year [8] - Asset Management revenue for the third quarter was $294 million, an increase of 8% year-over-year and 10% sequentially [9] Business Line Data and Key Metrics Changes - Financial Advisory was active in M&A across healthcare, industrials, and consumer and retail sectors, with notable transactions including Mallinckrodt Pharmaceuticals' $6.7 billion deal [8] - Asset Management saw record gross inflows for the third quarter and the first nine months, achieving net positive flows of $1.6 billion year-to-date, with total AUM up 17% [6][10] - Management fees for Asset Management increased by 6% year-over-year, while incentive fees rose to $9 million from $3 million in the previous year [9][10] Market Data and Key Metrics Changes - The company reported a strong client engagement across major geographies, including the U.S., Europe, and the Middle East, indicating a diversified business model [14] - The effective tax rate for the third quarter was 21.4%, down from 32.5% in the previous year, with an expected full-year 2025 effective tax rate around 20% [12] Company Strategy and Development Direction - The company is focused on long-term growth strategies, including expanding its team of Financial Advisory Managing Directors and enhancing productivity [15][20] - The introduction of new active ETFs and a focus on quantitative and emerging market strategies are part of the Asset Management growth strategy [17][18] - The company aims to double firm-wide revenue from 2023 to 2030 and deliver an average annual shareholder return of at least 10% to 15% [20][21] Management's Comments on Operating Environment and Future Outlook - Management sees an increasingly constructive environment for advisory activity, despite potential temporary impacts from the U.S. government shutdown [13][14] - The company anticipates continued growth in both M&A and restructuring activities, driven by a diverse range of client needs and market conditions [14][72] - Management expressed confidence in achieving operating leverage and reducing the compensation ratio in the Asset Management segment [41] Other Important Information - The company has made significant strides in hiring, with 20 new Managing Directors joining in 2025, enhancing its talent pool [4][15] - The company is expanding its presence in the Middle East and Northern Europe, reflecting its commitment to growth in these regions [11] Q&A Session Summary Question: Thoughts on hiring environment and talent retention - Management noted strong success in attracting high-quality talent and reported very few regrettable departures, indicating a healthy Managing Director pool [25][26] Question: Recent success in driving net inflows in Asset Management - Management highlighted significant inflows in quantitative strategies and emerging markets, with a positive outlook for achieving net neutral flows for the year [30][31] Question: Trends in gross outflows in Asset Management - Management confirmed that gross outflows are lower than last year, primarily from sub-advised accounts, with a more promising trajectory outside that category [40] Question: Outlook for restructuring business amid credit concerns - Management does not view recent bankruptcies as indicative of broader issues and expects both M&A and restructuring activities to coexist due to varied corporate performance [67][70] Question: Differences in M&A activity between Europe and the U.S. - Management observed a tilt towards Europe in revenue mixes and emphasized the strength of European companies despite macroeconomic challenges [74][76] Question: Impact of U.S. government shutdown on advisory deals - Management indicated that deals requiring government approvals may be delayed but expect a quick catch-up once the government reopens [78][79]

Financial Data and Key Metrics Changes - For the first nine months of 2025, total firm-wide revenue was $2.1 billion, including record Financial Advisory revenue of $1.3 billion [4] - Third-quarter firm-wide revenue reached $725 million, up 12% year-over-year, driven by both business segments [8] - Financial Advisory revenue for the third quarter totaled $422 million, up 14% from the previous year [8] - Asset Management revenue for the third quarter was $294 million, an increase of 8% year-over-year and 10% sequentially [9] Business Line Data and Key Metrics Changes - Financial Advisory was active in M&A across healthcare, industrials, and consumer sectors, with notable transactions including Mallinckrodt Pharmaceuticals' $6.7 billion deal [8] - Asset Management saw record gross inflows for the third quarter, with total AUM increasing by 17% year-to-date [6][10] - Management fees for Asset Management increased by 6% year-over-year, while incentive fees rose to $9 million from $3 million [9][10] Market Data and Key Metrics Changes - The company reported net positive flows of $1.6 billion year-to-date in Asset Management, with AUM reaching $265 billion, a 7% increase from both September 2023 and June 2023 [10] - The effective tax rate for the third quarter was 21.4%, down from 32.5% in the same quarter last year [12] Company Strategy and Development Direction - The company is focused on long-term growth strategies, including expanding its team of Financial Advisory Managing Directors and enhancing productivity [15][20] - The introduction of new active ETFs and a focus on quantitative and emerging market strategies are part of the Asset Management growth strategy [17][18] - The company aims to double firm-wide revenue from 2023 to 2030 and deliver an average annual shareholder return of 10% to 15% [20][21] Management's Comments on Operating Environment and Future Outlook - Management sees an increasingly constructive environment for advisory activity, despite potential impacts from the U.S. government shutdown [13][14] - The company anticipates continued growth in both M&A and restructuring activities, driven by a diverse range of client needs [14][16] - Management expressed confidence in achieving or exceeding productivity goals, with average revenue per Managing Director increasing to nearly $9 million [15] Other Important Information - The company returned $60 million to shareholders in the third quarter, including a quarterly dividend of $47 million [12] - Chris Hogan will join as CEO of Lazard Asset Management in December, expected to accelerate growth [6][18] Q&A Session Summary Question: Hiring environment and talent retention - Management noted strong success in attracting high-quality talent and minimal regrettable departures, indicating a healthy Managing Director pool [25][26] Question: Recent success in Asset Management net inflows - Inflows are primarily from quantitative strategies and emerging markets, with a strong geographic mix outside the U.S. [30][31] Question: Trends in gross outflows - Gross outflows have decreased compared to last year, particularly from sub-advised accounts, with a more promising trajectory outside that category [40] Question: Operating leverage and achieving 60% comp ratio - Management is confident in achieving operating leverage in 2026, driven by improved productivity and strategic hiring [42] Question: Secondary market outlook - The company expects strong trends in the secondary market to continue, with no signs of slowing down [84] Question: Fee rates on inflows and outflows - A small increase in average fee rates was noted, with expectations for stability in the near term [86]

Lazard's Business Overview - Lazard's Asset Management (AM) had \$265 billion in Assets Under Management (AUM) as of 3Q25[16] - Lazard's Financial Advisory (FA) had over 200 Managing Directors (MDs) [16] - 62% of Lazard's AUM is in non-USD securities as of 3Q25[17] Financial Performance - Lazard's goal is for revenue to double by 2030[29] - Lazard's Financial Advisory revenue is above goal one year early[29] - Lazard's Asset Management AUM had positive net flows September-to-date[29] - Lazard's Financial Advisory is achieving its MD growth target of 10 to 15 net additions annually[30] Asset Management - Lazard's Asset Management LTM 3Q25 net revenue was \$1.1 billion[49] - Lazard's Asset Management average management fee was 44 bps in 3Q25[49] Financial Advisory - Lazard's Financial Advisory LTM 3Q25 net revenue was \$1.8 billion[72]