Financial Data and Key Metrics Changes - The company reported record-setting results with second quarter revenues of $407 million, up 13% year over year, and adjusted pre-tax income of $80 million, up 22% [5][8] - For the first half of the year, revenues increased by 6%, adjusted pre-tax income rose by 13%, and adjusted EPS increased by 19% compared to the previous year [6][8] - The adjusted pre-tax margin for the second quarter was 19.7%, compared to 18.2% for the same period last year [11] Business Line Data and Key Metrics Changes - Strategic Advisory revenues increased significantly for both the second quarter and first half, driven by higher transaction closings and fee realizations [9][16] - Restructuring revenues rose modestly in the second quarter and were slightly up for the first half, with expectations to at least match last year's record levels [14][15] - PJT Park Hill revenues decreased year over year for both periods due to timing of closings, but a strong pipeline is expected to improve performance in the second half [15][16] Market Data and Key Metrics Changes - The market backdrop has improved, with equity valuations rising and market volatility decreasing, leading to increased business confidence and capital availability [6][7] - Global M&A activity remains near record lows relative to total equity market capitalization or GDP, despite a 20% increase in annualized global announced M&A volumes [17] Company Strategy and Development Direction - The company remains committed to long-term investments and aims to build the best advisory firm focused on excellence, integrity, and client service [7] - The strategic advisory pipeline is at record levels, indicating a positive outlook for future M&A activity as economic and regulatory uncertainties diminish [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual recovery in M&A activity, with expectations for a prolonged period of improvement as uncertainties lift [54] - The regulatory environment is perceived to be more conducive to M&A consolidation under the current administration, although challenges remain in certain industries [46][49] Other Important Information - The company ended the quarter with $318 million in cash and equivalents, and no funded debt outstanding [13] - A quarterly dividend of $0.25 per share was approved by the Board [13] Q&A Session Summary Question: Update on sponsor M&A activity - Management noted an increase in sponsor activity, with more confidence in the IPO market and evidence of dividend recap transactions, indicating a potential return to more normalized M&A levels [21][22][23] Question: Continuation fund business growth - Management discussed the growing acceptance of continuation funds as a liquidity management tool, suggesting that while growth may slow with the return of regular M&A, there is still significant potential for this asset class [24][25][26] Question: Update on regulatory environment - Management indicated that the current administration's regulatory approach is more favorable for M&A, with a willingness to negotiate remedies, although complexities remain in certain industries [46][49] Question: Trajectory of M&A recovery - Management expects a gradual improvement in M&A activity, driven by lifting uncertainties and competitive responses within industries [54][55] Question: Fundraising environment for Park Hill - Management acknowledged the challenging fundraising backdrop but noted an increase in placement fees and a strong pipeline for both primary and private capital solutions [59][60][61]

Who We Are July 29, 2025 Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America ("GAAP") in the statements of operations, financial condition or cash flows of ...