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][12] - 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, contributing to overall revenue growth [9][16] - Restructuring revenues rose modestly in the second quarter and were slightly up for the first half, while PJT Park Hill revenues decreased year-over-year for both periods [9][15] - The company expects full-year restructuring results to at least match last year's record levels, while Strategic Advisory is anticipated to be up strongly from 2024's record levels [18] 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][14] - Global M&A activity remains near record lows when measured against 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 based on excellence, integrity, and client service [7][14] - The firm is focusing on expanding its Strategic Advisory and restructuring capabilities, particularly in international markets such as Europe and the Gulf Region [78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a more favorable environment for strategic ambitions as economic and regulatory uncertainties diminish [18] - There is a belief that M&A activity will gradually improve, driven by competitive responses and a more conducive regulatory environment [55][56] Other Important Information - The company ended the quarter with $318 million in cash and equivalents, and $461 million in net working capital, with 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 credit markets becoming more accommodative, leading to a gradual return of capital [20][22] Question: Update on Park Hill and financial sponsors - Management indicated that they are still in the early stages of leveraging Park Hill relationships for middle market deals, with ongoing efforts to create holistic relationships with clients [33][36] Question: Regulatory outlook for large cap M&A - Management acknowledged a more conducive regulatory environment under the current administration, but noted that certain industries still face scrutiny, complicating large transactions [46][51] Question: Trajectory of M&A recovery - Management expects a gradual improvement in M&A activity as uncertainties lift, with potential for competitive responses driving additional transactions [55][56] Question: Fundraising backdrop for Park Hill - Management highlighted that while fundraising remains challenging, there is a growing number of transactions in flight, with expectations for improved performance in the second half of the year [60][62]

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]

Company Overview - PJT Partners is presented as a premier, global, advisory-focused investment bank[11] with a market capitalization of approximately $72 billion[14] - The company has grown to 129 partners globally[14] with an average partner experience of over 25 years[14], and employs 1,155 people across 15 offices in over 60 countries[14] - The firm serves over 400 clients[14] and has achieved approximately $15 billion in LTM 2Q25 revenues[14] Growth and Performance - Since 2015, the company has experienced significant growth, including a 180% increase in total partner count[27] and a 227% increase in total headcount[27] - Revenue has increased by 278% from $406 million in 2015 to $1535 million in LTM 2Q25[27] - Adjusted EPS has increased by 250% from $155 in 2016 to $542 in LTM 2Q25[27] - Adjusted Pretax Income has increased by 601% from $42 million in 2015 to $294 million in LTM 2Q25[27] Financial Highlights (2Q25) - Revenue for the second quarter of 2025 was $407 million, a 13% increase[68] - GAAP Pretax Income was $76 million, a 19% increase[68], while Adjusted Pretax Income was $80 million, a 22% increase[68] - GAAP Diluted EPS was $121, a 14% increase[68], and Adjusted EPS was $154, a 29% increase[68] Financial Highlights (First Half 2025) - Revenue for the first half of 2025 was $731 million, a 6% increase[68] - GAAP Pretax Income was $129 million, a 9% increase[68], while Adjusted Pretax Income was $136 million, a 13% increase[68] - GAAP Diluted EPS was $321, a 40% increase[68], and Adjusted EPS was $259, a 19% increase[68] Financial Highlights (LTM 2Q25) - Revenue for the last twelve months ending 2Q25 was $1535 million, an 18% increase[68] - GAAP Pretax Income was $281 million, a 32% increase[68], while Adjusted Pretax Income was $294 million, a 35% increase[68] - GAAP Diluted EPS was $582, a 52% increase[68], and Adjusted EPS was $542, a 38% increase[68] Capital Management - The company prioritizes investing in its business, offsetting dilution, and maintaining a dividend[70] - The company has a disciplined approach to expense management and maintains a strong cash position[70] - Approximately 40% employee ownership aligns senior management awards with shareholder value creation[70] - The company has repurchased shares, spending $438 million on share repurchases in LTM 2Q25[74]

Group 1 - PJT Partners has evolved significantly since its separation from Blackstone in 2015 [1] - The company operates in three main business lines: strategic advisory, restructuring, and Park [1]