PJT Partners (PJT) Q4 2025 earnings summary

Executive summary

• Achieved record full-year 2025 revenues of $1.714 billion, up 15% year-over-year, and record Q4 revenues of $535 million, up 12% year-over-year, reflecting strong firm-wide performance and investment in talent and capabilities.

• Adjusted EPS for 2025 was $6.98, up 39% year-over-year; GAAP diluted EPS was $6.68, up 36%.

• Adjusted pre-tax income was $357 million for the year and $127 million for Q4; adjusted pre-tax margin was 20.8% for the year and 23.7% for Q4.

• Net income attributable to the company for 2025 was $180.1 million, up from $134.4 million in 2024.

• Firm-wide partner headcount increased 12% and total headcount rose 7% year-over-year, supporting business expansion to 133 partners and 1,224 employees across 16 offices.

Financial highlights

• Advisory fees for 2025 totaled $1.5 billion, up 14% year-over-year, and placement fees were $181.6 million, up 24% year-over-year.

• Adjusted compensation expense was $1.15 billion for 2025, with a compensation ratio of 67.1%, down from 69% in 2024.

• Adjusted non-compensation expense was $207 million for 2025, up 12% year-over-year, mainly due to higher occupancy and travel costs; non-compensation expense increased to $213 million including technology investments.

• Adjusted net income, if-converted, for 2025 was $306.3 million, up from $221.1 million in 2024.

• Weighted average share count at year-end: 43.9 million, slightly down year-over-year due to share repurchases.

Outlook and guidance

• Management remains highly confident in near, intermediate, and long-term growth prospects, citing strong pipelines and a differentiated business mix.

• Expect non-compensation expense in 2026 to grow at a similar rate as 2025; more detailed guidance to be provided with Q1 results.

• Effective tax rate for 2026 estimated in the high-teens percentage, between 2024 and 2025 rates.

• Compensation ratio expected to continue trending down, with further guidance at Q1 2026 results.

• Focus remains on disciplined expense management and long-term shareholder alignment.