Evercore (EVR) Q1 2025 earnings summary

Executive summary

• Achieved #1 ranking in advisory revenues among independent firms and #3 among all firms for Q1 2025, with over 50% of revenues from non-M&A sources and strong year-over-year growth in nearly all areas.

• Net income attributable to Evercore Inc. rose 71% year-over-year to $146.2 million for Q1 2025, driven by strong advisory fee growth and higher incentive compensation accruals.

• Expanded global presence, now serving clients in 50+ countries with 157 investment banking SMDs, a 38% increase since 2021, and continued investment in talent.

• Record capital returned to shareholders in Q1 2025, with $454 million via dividends and repurchases, and 17 consecutive years of dividend increases.

• Notable advisory roles in large transactions, including Calpine's $29.1B sale and Ampere's $6.5B sale.

Financial highlights

• Q1 2025 adjusted net revenues of $700M, up 19–20% year-over-year, and LTM Q1 2025 adjusted net revenues of $3.1B.

• Adjusted operating income of $116M, up 28% year-over-year; operating income up 32% (GAAP) and 28% (Adjusted).

• Adjusted EPS of $3.49, up 64% year-over-year; diluted EPS $3.48 (GAAP), both up over 60%.

• Adjusted operating margin of 16.6%, up from 15.4% in Q1 2024; LTM adjusted operating margin 18.7%.

• Significant net tax benefit of $78M due to RSU vesting and share price appreciation; effective tax rate (37.2%) (GAAP), (39.7%) (Adjusted).

Outlook and guidance

• Expect Q2 and Q3 results to be impacted by market volatility and broader uncertainty; revenue trends closely tied to M&A and capital markets activity.

• Backlogs remain at record levels and are growing, with strong client dialogues across sectors.

• Positioned for growth as global M&A activity as a percent of market cap remains near 20-year lows, presenting significant upside potential.

• Continued investment in talent and technology to support growth, while monitoring market conditions and liquidity.

• Effective tax rate expected to normalize for the remainder of the year.