Lazard (LAZ) Q4 2025 earnings summary

Executive summary

• Firm-wide revenue reached $3.099 billion for 2025, up 2–5% year-over-year, with record financial advisory and asset management results, and AUM up 12% to $254 billion.

• Asset management saw record gross inflows exceeding $50 billion, launch of multiple active ETFs in the U.S. with AUM surpassing $800 million, and 67% of AUM in non-USD securities.

• The firm exceeded managing director hiring goals, adding 21 new MDs, and achieved higher productivity per MD.

• Leadership transition included Tracy Farr as CFO and new executive appointments in asset management and financial advisory.

• Strategic plan targets doubling revenue by 2030 and delivering 10–15% average annual total shareholder return, supported by investments in AI and technology.

Financial highlights

• Adjusted net revenue for 2025 was $3,030–$3,099 million, up 2–5% year-over-year; adjusted net income was $266 million, up 9%.

• Q4 2025 net revenue was $892–$907 million, up 10–11% year-over-year.

• Financial advisory net revenue for 2025 was $1,825–$1,834 million, up 4–5% year-over-year.

• Asset management net revenue for 2025 was $1,166–$1,275 million, up 6–7% year-over-year; operating margin at 23%.

• Returned $393 million to shareholders in 2025, including $187 million in dividends and $91 million in share repurchases.

Outlook and guidance

• Targeting revenue to double by 2030 and 10–15% average annual total shareholder return.

• Management targets an adjusted compensation ratio of 60% or below and an adjusted non-compensation ratio between 16% and 20%, timing dependent on market conditions.

• Expecting acceleration in financial advisory activity and positive net flows in asset management for 2026.

• Ongoing investments in AI and technology expected to drive operational efficiency and comp leverage.

• Non-comp expense expected to grow mid- to high-single digits in 2026, aiming to return to target range as revenues grow.