Lazard Inc. reported fourth‑quarter 2025 revenue of $907 million, up 4% from $872 million a year earlier, and adjusted revenue of $892 million, a 4% increase. Net income on a GAAP basis was $50 million, or $0.45 per share, while adjusted net income reached $89 million, or $0.80 per share. The company’s earnings beat consensus estimates by $0.16 per share, a 25% lift, and revenue surpassed the $845.34 million consensus by $61.66 million, an 7.3% beat.
The growth was driven by a 7% rise in financial‑advisory revenue to $542 million in the quarter, and an 18% jump in asset‑management revenue to $339 million. Over the full year, financial‑advisory revenue totaled $1.834 billion, up 4% YoY, while asset‑management revenue reached $1.275 billion, up 7% YoY. AUM climbed to $254 billion, a 12% increase, and the firm recorded record gross inflows, underscoring the momentum behind its Lazard 2030 strategy.
Margin pressure was evident: net margin fell to 7.6% from 9% in 2024, reflecting higher operating costs and a modest decline in fee‑based income. The compensation ratio for the quarter was 65.5%, slightly lower than the 65.6% recorded in Q4 2024, indicating tighter cost discipline. Despite the margin squeeze, the company maintained profitability through disciplined expense management and a favorable mix of high‑margin advisory work.
CEO Peter R. Orszag said the results “demonstrate the continued execution of our Lazard 2030 strategy, with record revenue in financial advisory and record gross inflows in asset management.” He added that the firm’s focus on contextual alpha and strategic investments is paying off. CFO Tracy Farr, effective February 1, 2026, will bring “strategic insight, financial rigor and deep familiarity with our business” to drive operational efficiency and profitable growth.
Shareholder returns totaled $393 million in 2025, comprising dividends, buybacks and tax settlements. The firm faced a $19.7 billion net outflow in Q4 2025, largely due to the closure of a U.S. sub‑advised relationship, which reduced AUM by 4% from the prior quarter. Nevertheless, the overall AUM growth and record inflows suggest a resilient business model and a positive outlook for the coming year.
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