Lazard (LAZ) Q4 2025 earnings summary

Executive summary

• Achieved firm-wide revenue of $3.099 billion for 2025, up 5% year-over-year, with record financial advisory and asset management results, and 12% AUM growth.

• Transitioned CFO role from Mary Ann Betsch to Tracy Farr, with Mary Ann remaining as senior advisor during the transition.

• Hired 21 new managing directors in 2025, supporting growth strategy and global expansion.

• Continued execution of long-term growth strategy, targeting revenue to double by 2030 and 10–15% average annual total shareholder return, with investments in talent, technology, and AI.

• Focused on a balanced model of financial advisory and asset management, with a global presence and strong brand reputation.

Financial highlights

• Adjusted net revenue for 2025 was $3.099 billion, up 5% year-over-year; adjusted net income was $266 million, up 9% year-over-year.

• Fourth quarter 2025 revenue was $907 million, up 11% year-over-year.

• Asset management AUM reached $254 billion at year-end 2025, up 12% year-over-year, with 67% in non-USD securities.

• Financial advisory net revenue for 2025 was $1.834 billion, up 4% year-over-year; asset management net revenue was $1.275 billion, up 7%.

• Adjusted operating margin for 2025 was 14.3%, matching 2024.

Outlook and guidance

• Targeting revenue to double by 2030, with continued expansion in key geographies and sectors, 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.

• Expect financial advisory activity to accelerate in 2026, with M&A and restructuring both contributing.

• Anticipate positive net flows in asset management for 2026, supported by $13 billion in won but not yet funded mandates.

• Project further improvement in managing director productivity, targeting $12.5 million per MD by 2030.