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2 months ago
Evercore Reports Record First Quarter 2026 Revenues; Increases Quarterly Dividend to $0.89 Per ShareApril 29, 2026 6:45 AM
Business Wire
Evercore Inc. (NYSE: EVR):
First Quarter Results
U.S. GAAP
Adjusted
Q1 2026
Q1 2025
Q1 2026
Q1 2025
Net Revenues ($ mm)
$
1,391.6
$
694.8
$
1,401.5
$
699.9
Operating Income ($ mm)
$
330.7
$
111.2
$
354.5
$
116.3
Net Income Attributable to Evercore Inc. ($ mm)
$
301.2
$
146.2
$
334.7
$
154.8
Diluted Earnings Per Share
$
7.20
$
3.48
$
7.53
$
3.49
Compensation Ratio
65.0
%
66.2
%
64.0
%
65.7
%
Operating Margin
23.8
%
16.0
%
25.3
%
16.6
%
Business and Financial
Highlights
¦
Record First Quarter Net Revenues of $1.4 billion on both a U.S. GAAP and an Adjusted basis increased 100% on both a U.S. GAAP and an Adjusted basis versus First Quarter 2025
¦
First Quarter Operating Income of $330.7 million and $354.5 million on a U.S. GAAP and an Adjusted basis, respectively, increased 197% and 205%, respectively, versus 2025; First Quarter Operating Margins of 23.8% and 25.3% on a U.S. GAAP and an Adjusted basis, respectively, increased 776 and 868 basis points, respectively, versus 2025
¦
First Quarter Effective Tax Rate of 2.7% and 3.0% on a U.S. GAAP basis and an Adjusted basis, respectively, which included a tax benefit of $88.5 million and $94.0 million, respectively, related to the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price
¦
Our North American Advisory business delivered a record revenue quarter; our Europe, Middle East and Africa ("EMEA") Advisory, Private Capital Advisory, Private Funds Group, Equities and Wealth Management businesses delivered record first quarter revenues
¦
Evercore advised on a number of notable and complex transactions, including:
¦
Warner Brothers Discovery on its $110 billion sale to Paramount Skydance
¦
Devon Energy on its $58 billion merger with Coterra Energy
¦
Jetro Restaurant Depot on its sale to Sysco for $29.1 billion
¦
Apellis on its sale to Biogen for approximately $5.6 billion
¦
Beazley on its recommended cash offer by Zurich Insurance Group for £8.2 billion
¦
Our Private Capital Advisory business received multiple recognitions from Private Equity International’s Secondaries Investor for excellence in the secondaries market in 2025
Talent
¦
As of March 31, 2026, our Investment Banking franchise has 182 Senior Managing Directors (SMDs), inclusive of the recent joiners, commits and internal promotions mentioned below
¦
Three Investment Banking SMDs have joined Evercore since our last earnings call; Ben Hart as Head of our Asia Private Capital Advisory division, Ben Carpenter in our Healthcare Investment Banking Group and David Ke in our Equity Capital Markets Group
¦
Since our last earnings call, three additional Investment Banking SMDs have committed to join Evercore later this year; one in our U.S. Industrials Investment Banking Group, one in our U.S. Healthcare Investment Banking Group and one in Private Capital Advisory
¦
We started the year with a class of eight promoted Investment Banking SMDs, as well as seven promotions in other areas of the Firm
Capital Return
¦
Increased quarterly dividend 6% to $0.89 per share
¦
Returned $673.3 million to shareholders during the quarter through dividends and repurchases of 1.9 million shares at an average price of $322.00
Evercore Inc. (NYSE: EVR) today announced its results for the first quarter ended March 31, 2026.
LEADERSHIP COMMENTARY
John S. Weinberg, Chairman and Chief Executive Officer, "Our record first quarter results reflect strong momentum coming into the year and the benefits of our long-term investment strategy. Our focus remains on serving our clients and building on the strength of our franchise."
Roger C. Altman, Founder and Senior Chairman, "We delivered an exceptional first quarter, with record revenues of $1.4 billion, underscoring the relentless build-out of the Evercore platform."
Evercore's quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned, as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.
Business Segments:
Evercore's business results are categorized into two segments: Investment Banking & Equities and Investment Management. Investment Banking & Equities includes providing advice to clients on mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, as well as advising third-party investors through affiliates. See pages A-2 to A-8 for further information and reconciliations of these segment results to our U.S. GAAP consolidated results.
Non-GAAP Measures:
Throughout this release certain information is presented on an adjusted basis, which is a non-GAAP measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and then those results are adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units into Class A shares. Evercore believes that the disclosed adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. Evercore uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.
Evercore's Adjusted Net Income Attributable to Evercore Inc. for the three months ended March 31, 2026 was higher than U.S. GAAP principally as a result of the exclusion of the following expenses:
Acquisition-related compensation charges, reflecting expenses associated with awards granted in conjunction with the Company's acquisition of Robey Warshaw
Acquisition and Transition Costs, including costs incurred for the impairment of a lease related to the acquisition of Robey Warshaw
Expenses associated with the amortization of intangible assets and interest cost related to deferred acquisition consideration from the acquisition of Robey Warshaw
Expense, or reversal of expense, associated with the changes in fair value of contingent consideration issued to the sellers of Robey Warshaw
Evercore's Adjusted Diluted Shares Outstanding for the three months ended March 31, 2026 were higher than U.S. GAAP primarily as a result of the inclusion of Evercore LP Units.
Further details of these adjustments, as well as an explanation of similar amounts for the three months ended March 31, 2025 are included in pages A-2 to A-8.
Selected Financial Data – U.S. GAAP Results
The following is a discussion of Evercore's consolidated results on a U.S. GAAP basis. See pages A-4 to A-6 for our business segment results.
Net Revenues
U.S. GAAP
Three Months Ended
March 31, 2026
March 31, 2025
%
Change
(dollars in thousands)
Investment Banking & Equities:
Advisory Fees
$
1,244,739
$
557,349
123
%
Underwriting Fees
55,068
54,255
1
%
Commissions and Related Revenue
62,658
55,110
14
%
Investment Management:
Asset Management and Administration Fees
22,643
20,983
8
%
Other Revenue, net
6,470
7,132
(9
%)
Net Revenues
$
1,391,578
$
694,829
100
%
Three Months Ended
March 31, 2026
March 31, 2025
%
Change
Total Number of Fees from Advisory and Underwriting Client Transactions(1)
313
238
32
%
Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions(1)
148
96
54
%
Total Number of Underwriting Transactions(1)
23
14
64
%
Total Number of Underwriting Transactions as a Bookrunner(1)
21
12
75
%
1. Includes Equity and Debt Underwriting Transactions.
As of March 31,
2026
2025
%
Change
Assets Under Management ($ mm)(1)
$
15,082
$
13,700
10
%
1. Assets Under Management reflect end of period amounts from our consolidated Wealth Management business.
Advisory Fees – First quarter Advisory Fees increased $687.4 million, or 123%, year-over-year, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the first quarter of 2026.
Underwriting Fees – First quarter Underwriting Fees increased $0.8 million, or 1%, year-over-year, reflecting an increase in the number of transactions we participated in during the first quarter of 2026.
Commissions and Related Revenue – First quarter Commissions and Related Revenue increased $7.5 million, or 14%, year-over-year, primarily reflecting higher trading commissions driven by increased trading volume during the first quarter of 2026.
Asset Management and Administration Fees – First quarter Asset Management and Administration Fees increased $1.7 million, or 8%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 10%, from market appreciation and net inflows.
Other Revenue, net – First quarter Other Revenue, net, decreased $0.7 million, or 9%, year-over-year, primarily reflecting an increase in interest expense related to the issuance of new senior notes in July 2025, partially offset by higher interest income resulting from higher average balances in interest-bearing assets.
Expenses
U.S. GAAP
Three Months Ended
March 31, 2026
March 31, 2025
%
Change
(dollars in thousands)
Employee Compensation and Benefits
$
904,070
$
459,825
97
%
Compensation Ratio
65.0
%
66.2
%
Non-Compensation Costs
$
156,782
$
123,820
27
%
Non-Compensation Ratio
11.3
%
17.8
%
Employee Compensation and Benefits – First quarter Employee Compensation and Benefits increased $444.2 million, or 97%, year-over-year, reflecting a compensation ratio of 65.0% for the first quarter of 2026 versus 66.2% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. Employee Compensation and Benefits for the first quarter of 2026 also includes $7.1 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. The Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information.
Non-Compensation Costs – First quarter Non-Compensation Costs increased $33.0 million, or 27%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with license fees and research services in the first quarter of 2026, an increase in depreciation and amortization, principally reflecting the addition of leasehold improvements for new office space and the amortization of intangible assets from the acquisition of Robey Warshaw, an increase in professional fees and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The first quarter Non-Compensation ratio of 11.3% decreased from 17.8% compared to the prior year period. The Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period.
Non-Compensation Costs for the first quarter of 2026 are also impacted by Acquisition and Transition Costs resulting from the impairment of a lease related to the acquisition of Robey Warshaw.
Effective Tax Rate
The first quarter effective tax rate was 2.7% versus (37.2%) for the prior year period. The effective tax rate is principally impacted by the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price. The first quarter provision for income taxes for 2026 reflects an additional tax benefit of $88.5 million versus $74.3 million for the prior year period, due to the net impact associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price.
Selected Financial Data – Adjusted Results
The following is a discussion of Evercore's consolidated results on an Adjusted basis. See pages 3 and A-2 to A-8 for further information and reconciliations of these metrics to our U.S. GAAP results. See pages A-4 to A-6 for our business segment results.
Adjusted Net Revenues
Adjusted
Three Months Ended
March 31, 2026
March 31, 2025
%
Change
(dollars in thousands)
Investment Banking & Equities:
Advisory Fees(1)
$
1,244,747
$
557,311
123
%
Underwriting Fees
55,068
54,255
1
%
Commissions and Related Revenue
62,658
55,110
14
%
Investment Management:
Asset Management and Administration Fees(2)
23,686
21,900
8
%
Other Revenue, net
15,361
11,325
36
%
Net Revenues
$
1,401,520
$
699,901
100
%
1. Advisory Fees on an Adjusted basis reflect the reclassification of earnings (losses) related to our equity method investment in Seneca Evercore of $0.01 million and ($0.04) million for the three months ended March 31, 2026 and 2025, respectively.
2. Asset Management and Administration Fees on an Adjusted basis reflect the reclassification of earnings related to our equity method investment in Atalanta Sosnoff of $1.0 million and $0.9 million for the three months ended March 31, 2026 and 2025, respectively.
See page 4 for additional business metrics.
Advisory Fees – First quarter adjusted Advisory Fees increased $687.4 million, or 123%, year-over-year, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the first quarter of 2026.
Underwriting Fees – First quarter Underwriting Fees increased $0.8 million, or 1%, year-over-year, reflecting an increase in the number of transactions we participated in during the first quarter of 2026.
Commissions and Related Revenue – First quarter Commissions and Related Revenue increased $7.5 million, or 14%, year-over-year, primarily reflecting higher trading commissions driven by increased trading volume during the first quarter of 2026.
Asset Management and Administration Fees – First quarter adjusted Asset Management and Administration Fees increased $1.8 million, or 8%, year-over-year, primarily driven by an increase in fees from Wealth Management clients, as associated AUM increased 10%, from market appreciation and net inflows. The increase was also driven by a 14% increase in equity in earnings of affiliates.
Other Revenue – First quarter adjusted Other Revenue, net, increased $4.0 million, or 36%, year-over-year, primarily reflecting higher interest income resulting from higher average balances in interest-bearing assets.
Adjusted Expenses
Adjusted
Three Months Ended
March 31, 2026
March 31, 2025
%
Change
(dollars in thousands)
Employee Compensation and Benefits
$
896,984
$
459,825
95
%
Compensation Ratio
64.0
%
65.7
%
Non-Compensation Costs
$
150,049
$
123,820
21
%
Non-Compensation Ratio
10.7
%
17.7
%
Employee Compensation and Benefits – First quarter adjusted Employee Compensation and Benefits increased $437.2 million, or 95%, year-over-year, reflecting an adjusted compensation ratio of 64.0% for the first quarter of 2026 versus 65.7% for the prior year period. The increase in adjusted Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The adjusted Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information.
Non-Compensation Costs – First quarter adjusted Non-Compensation Costs increased $26.2 million, or 21%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with license fees and research services in the first quarter of 2026, an increase in professional fees and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The first quarter adjusted Non-Compensation ratio of 10.7% decreased from 17.7% for the prior year period. The adjusted Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period.
Adjusted Effective Tax Rate
The first quarter adjusted effective tax rate was 3.0% versus (39.7%) for the prior year period. The adjusted effective tax rate is principally impacted by the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price. The first quarter adjusted provision for income taxes for 2026 reflects an additional tax benefit of $94.0 million versus $78.0 million for the prior year period, due to the net impact associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price.
Liquidity
The Company continues to maintain a strong balance sheet. As of March 31, 2026, cash and cash equivalents were $986.0 million, investment securities and certificates of deposit were $1.0 billion and current assets exceeded current liabilities by $1.8 billion. Amounts due related to the Notes Payable were $539.7 million at March 31, 2026.
Headcount
As of March 31, 2026 and 2025, the Company employed approximately 2,635 and 2,395 people, respectively, worldwide.
As of March 31, 2026 and 2025, the Company employed 223(1) and 197(2) total Investment Banking & Equities Senior Managing Directors, respectively, of which 182(1) and 157(2), respectively, were Investment Banking Senior Managing Directors.
(1)
Senior Managing Director headcount as of March 31, 2026, inclusive of new hires that have joined year-to-date and additionally adjusted to include three incoming Investment Banking Senior Managing Directors committed to join.
(2)
Senior Managing Director headcount as of March 31, 2025, inclusive of new hires that have joined year-to-date and additionally adjusted to include four incoming Investment Banking Senior Managing Directors committed to join and to exclude for one known departure.
Deferred Compensation
During the first quarter of 2026, the Company granted to certain employees 1.6 million unvested restricted stock units ("RSUs") (which were primarily granted in conjunction with the 2025 bonus awards) with a grant date fair value of $533.2 million.
In addition, during the first quarter of 2026, the Company granted $100.1 million of deferred cash awards to certain employees, related to our deferred cash compensation program, which were primarily granted in conjunction with the 2025 bonus awards.
The Company recognized compensation expense related to RSUs and our deferred cash compensation program of $142.3 million and $122.2 million for the three months ended March 31, 2026 and 2025, respectively.
As of March 31, 2026, the Company had 4.5 million unvested RSUs with an aggregate grant date fair value of $1.1 billion. RSUs are expensed over the service period of the award, subject to retirement eligibility, and generally vest over four years.
As of March 31, 2026, the Company expects to pay an aggregate of $295.1 million related to our deferred cash compensation program at various dates through 2030. Amounts due pursuant to this program are expensed over the service period of the award, subject to retirement eligibility, and amounts accrued are reflected in Accrued Compensation and Benefits, a component of current liabilities.
In addition, from time to time, the Company also grants cash and equity-based performance awards to certain employees, the settlement of which is dependent on the performance criteria being achieved.
Capital Return Transactions
On April 28, 2026, the Board of Directors of Evercore declared a quarterly dividend of $0.89 per share to be paid on June 12, 2026 to common stockholders of record on May 29, 2026.
During the first quarter, the Company repurchased 0.9 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $344.71, and 1.0 million shares at an average price per share of $302.01 pursuant to the Company's share repurchase program. The aggregate 1.9 million shares were acquired at an average price per share of $322.00.
Conference Call
Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, April 29, 2026, accessible via telephone and webcast. Investors and analysts may participate in the live conference call by dialing (800) 445-7795 (toll-free domestic) or (785) 424-1669 (international); passcode: EVRQ126. Please register at least 10 minutes before the conference call begins.
A live audio webcast of the conference call will be available on the Investor Relations section of Evercore’s website at www.evercore.com. The webcast will be archived on Evercore’s website for 30 days.
About Evercore
Evercore (NYSE: EVR) is a premier global independent investment banking advisory firm. We are dedicated to helping our clients achieve superior results through trusted independent and innovative advice on matters of strategic significance to boards of directors, management teams and shareholders, including mergers and acquisitions, strategic shareholder advisory, restructurings, and capital structure. Evercore also assists clients in raising public and private capital and delivers equity research and equity sales and agency trading execution, in addition to providing wealth and investment management services to high net worth and institutional investors. Founded in 1995, the Firm is headquartered in New York and maintains offices and affiliate offices in major financial centers in the Americas, Europe, the Middle East and Asia. For more information, please visit www.evercore.com.
Basis of Alternative Financial Statement Presentation
Our Adjusted results are a non-GAAP measure. As discussed further under "Non-GAAP Measures", Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and better reflects how management views its operating results. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our U.S. GAAP results to Adjusted results is presented in the tables included in the following pages.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore's operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "backlog," "believes," "expects," "potential," "probable," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. All statements, other than statements of historical fact, included in this release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in Evercore's business. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Evercore believes these factors include, but are not limited to, those described under "Risk Factors" discussed in Evercore's Annual Report on Form 10-K for the year ended December 31, 2025, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and Registration Statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Evercore to predict all risks and uncertainties, nor can Evercore assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and Evercore does not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Evercore undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
EVERCORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(dollars in thousands, except per share data)
(UNAUDITED)
Three Months Ended March 31,
2026
2025
Revenues
Investment Banking & Equities:
Advisory Fees
$
1,244,739
$
557,349
Underwriting Fees
55,068
54,255
Commissions and Related Revenue
62,658
55,110
Asset Management and Administration Fees
22,643
20,983
Other Revenue, Including Interest and Investments
15,361
11,325
Total Revenues
1,400,469
699,022
Interest Expense(1)
8,891
4,193
Net Revenues
1,391,578
694,829
Expenses
Employee Compensation and Benefits
904,070
459,825
Occupancy and Equipment Rental
27,065
25,731
Professional Fees
28,355
22,390
Travel and Related Expenses
27,871
22,018
Technology and Information Services
40,418
33,367
Depreciation and Amortization
12,438
5,976
Execution, Clearing and Custody Fees
3,187
3,346
Acquisition and Transition Costs
1,800
—
Other Operating Expenses
15,648
10,992
Total Expenses
1,060,852
583,645
Income Before Income from Equity Method Investments and Income Taxes
330,726
111,184
Income from Equity Method Investments
1,051
879
Income Before Income Taxes
331,777
112,063
Provision (Benefit) for Income Taxes
9,056
(41,727
)
Net Income
322,721
153,790
Net Income Attributable to Noncontrolling Interest
21,486
7,606
Net Income Attributable to Evercore Inc.
$
301,235
$
146,184
Net Income Attributable to Evercore Inc. Common Shareholders
$
301,235
$
146,184
Weighted Average Shares of Class A Common Stock Outstanding:
Basic
38,969
38,718
Diluted
41,850
42,058
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:
Basic
$
7.73
$
3.78
Diluted
$
7.20
$
3.48
(1) Includes interest expense on long-term debt, lines of credit and other financing arrangements.
Adjusted Results
Throughout the discussion of Evercore's business and elsewhere in this release, information is presented on an Adjusted basis, which is a non-generally accepted accounting principles ("non-GAAP") measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units and Unvested Restricted Stock Units into Class A shares. Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. The Company uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These Adjusted amounts are allocated to the Company's two business segments: Investment Banking & Equities and Investment Management. The differences between the Adjusted and U.S. GAAP results are as follows:
Assumed Exchange of Evercore LP Units into Class A Shares. The Adjusted results assume substantially all Evercore LP Units have been exchanged for Class A shares. Accordingly, the noncontrolling interest related to these units is converted to a controlling interest. The Company's management believes that it is useful to provide the per-share effect associated with the assumed conversion of substantially all of these previously granted equity interests and IPO related restricted stock units, and thus the Adjusted results reflect their exchange into Class A shares.
Adjustments Associated with Business Combinations and Divestitures. The following charges resulting from business combinations and divestitures have been excluded from the Adjusted results as the Company's Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges:
Acquisition and Transition Costs. Costs incurred for the impairment of a lease related to the acquisition of Robey Warshaw.
Acquisition-related Compensation Charges. Expenses associated with awards granted in conjunction with the Company's acquisition of Robey Warshaw.
Amortization of Intangible Assets. Amortization of intangible assets from the acquisition of Robey Warshaw.
Interest Expense. Interest expense accrued for deferred acquisition consideration issued in the acquisition of Robey Warshaw.
Fair Value of Contingent Consideration. The expense, or reversal of expense, associated with changes in the fair value of contingent consideration issued to the sellers of Robey Warshaw.
Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.
Presentation of Interest Expense. The Adjusted results present Adjusted Investment Banking & Equities Operating Income and Adjusted Investment Management Operating Income before interest expense on debt, lines of credit and other financing arrangements, which are included in interest expense on a U.S. GAAP basis.
Presentation of Income from Equity Method Investments. The Adjusted results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a useful presentation.
EVERCORE INC.
U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS
(dollars in thousands, except per share data)
(UNAUDITED)
Three Months Ended
March 31, 2026
March 31, 2025
Net Revenues - U.S. GAAP
$
1,391,578
$
694,829
Income from Equity Method Investments (1)
1,051
879
Interest Expense (2)
8,891
4,193
Net Revenues - Adjusted
$
1,401,520
$
699,901
Other Revenue, net - U.S. GAAP
$
6,470
$
7,132
Interest Expense (2)
8,891
4,193
Other Revenue, net - Adjusted
$
15,361
$
11,325
Compensation Expense - U.S. GAAP
$
904,070
$
459,825
Acquisition-related Compensation Charges (3)
(7,086
)
—
Compensation Expense - Adjusted
$
896,984
$
459,825
Operating Income - U.S. GAAP
$
330,726
$
111,184
Income from Equity Method Investments (1)
1,051
879
Pre-Tax Income - U.S. GAAP
331,777
112,063
Acquisition-related Compensation Charges (3)
7,086
—
Intangible Asset Amortization (4a)
3,730
—
Interest Expense (2)
1,420
—
Acquisition and Transition Costs (4b)
1,800
—
Fair Value of Contingent Consideration (4c)
1,203
—
Pre-Tax Income - Adjusted
347,016
112,063
Interest Expense (2)
7,471
4,193
Operating Income - Adjusted
$
354,487
$
116,256
Provision (Benefit) for Income Taxes - U.S. GAAP
$
9,056
$
(41,727
)
Income Taxes (5)
1,409
(2,812
)
Provision (Benefit) for Income Taxes - Adjusted
$
10,465
$
(44,539
)
Net Income Attributable to Evercore Inc. - U.S. GAAP
$
301,235
$
146,184
Acquisition-related Compensation Charges (3)
7,086
—
Intangible Asset Amortization (4a)
3,730
—
Interest Expense (2)
1,420
—
Acquisition and Transition Costs (4b)
1,800
—
Fair Value of Contingent Consideration (4c)
1,203
—
Income Taxes (5)
(1,409
)
2,812
Noncontrolling Interest (6)
19,674
5,807
Net Income Attributable to Evercore Inc. - Adjusted
$
334,739
$
154,803
Diluted Shares Outstanding - U.S. GAAP
41,850
42,058
LP Units (7)
2,580
2,325
Unvested Restricted Stock Units - Event Based (7)
12
12
Diluted Shares Outstanding - Adjusted
44,442
44,395
Key Metrics: (a)
Diluted Earnings Per Share - U.S. GAAP
$
7.20
$
3.48
Diluted Earnings Per Share - Adjusted
$
7.53
$
3.49
Compensation Ratio - U.S. GAAP
65.0
%
66.2
%
Compensation Ratio - Adjusted
64.0
%
65.7
%
Operating Margin - U.S. GAAP
23.8
%
16.0
%
Operating Margin - Adjusted
25.3
%
16.6
%
Effective Tax Rate - U.S. GAAP
2.7
%
(37.2
%)
Effective Tax Rate - Adjusted
3.0
%
(39.7
%)
(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(dollars in thousands)
(UNAUDITED)
Investment Banking & Equities Segment
Three Months Ended March 31, 2026
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
1,244,739
$
8
(1)
$
1,244,747
Underwriting Fees
55,068
—
55,068
Commissions and Related Revenue
62,658
—
62,658
Other Revenue, net
6,285
8,778
(2)
15,063
Net Revenues
1,368,750
8,786
1,377,536
Expenses:
Employee Compensation and Benefits
889,154
(7,086
)
(3)
882,068
Non-Compensation Costs
152,656
(6,733
)
(4)
145,923
Total Expenses
1,041,810
(13,819
)
1,027,991
Operating Income (a)
$
326,940
$
22,605
$
349,545
Compensation Ratio (b)
65.0
%
64.0
%
Operating Margin (b)
23.9
%
25.4
%
Investment Management Segment
Three Months Ended March 31, 2026
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Asset Management and Administration Fees
$
22,643
$
1,043
(1)
$
23,686
Other Revenue, net
185
113
(2)
298
Net Revenues
22,828
1,156
23,984
Expenses:
Employee Compensation and Benefits
14,916
—
14,916
Non-Compensation Costs
4,126
—
4,126
Total Expenses
19,042
—
19,042
Operating Income (a)
$
3,786
$
1,156
$
4,942
Compensation Ratio (b)
65.3
%
62.2
%
Operating Margin (b)
16.6
%
20.6
%
(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2025
(dollars in thousands)
(UNAUDITED)
Investment Banking & Equities Segment
Three Months Ended March 31, 2025
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
557,349
$
(38
)
(1)
$
557,311
Underwriting Fees
54,255
—
54,255
Commissions and Related Revenue
55,110
—
55,110
Other Revenue, net
7,818
4,193
(2)
12,011
Net Revenues
674,532
4,155
678,687
Expenses:
Employee Compensation and Benefits
448,029
—
448,029
Non-Compensation Costs
119,774
—
119,774
Total Expenses
567,803
—
567,803
Operating Income (a)
$
106,729
$
4,155
$
110,884
Compensation Ratio (b)
66.4
%
66.0
%
Operating Margin (b)
15.8
%
16.3
%
Investment Management Segment
Three Months Ended March 31, 2025
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Asset Management and Administration Fees
$
20,983
$
917
(1)
$
21,900
Other Revenue, net
(686
)
—
(686
)
Net Revenues
20,297
917
21,214
Expenses:
Employee Compensation and Benefits
11,796
—
11,796
Non-Compensation Costs
4,046
—
4,046
Total Expenses
15,842
—
15,842
Operating Income (a)
$
4,455
$
917
$
5,372
Compensation Ratio (b)
58.1
%
55.6
%
Operating Margin (b)
21.9
%
25.3
%
(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT AND CONSOLIDATED RESULTS
(dollars in thousands)
(UNAUDITED)
U.S. GAAP
Three Months Ended March 31,
2026
2025
Investment Banking & Equities
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
1,244,739
$
557,349
Underwriting Fees
55,068
54,255
Commissions and Related Revenue
62,658
55,110
Other Revenue, net
6,285
7,818
Net Revenues
1,368,750
674,532
Expenses:
Employee Compensation and Benefits
889,154
448,029
Non-Compensation Costs
152,656
119,774
Total Expenses
1,041,810
567,803
Operating Income (a)
$
326,940
$
106,729
Investment Management
Net Revenues:
Asset Management and Administration Fees
$
22,643
$
20,983
Other Revenue, net
185
(686
)
Net Revenues
22,828
20,297
Expenses:
Employee Compensation and Benefits
14,916
11,796
Non-Compensation Costs
4,126
4,046
Total Expenses
19,042
15,842
Operating Income (a)
$
3,786
$
4,455
Total
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
1,244,739
$
557,349
Underwriting Fees
55,068
54,255
Commissions and Related Revenue
62,658
55,110
Asset Management and Administration Fees
22,643
20,983
Other Revenue, net
6,470
7,132
Net Revenues
1,391,578
694,829
Expenses:
Employee Compensation and Benefits
904,070
459,825
Non-Compensation Costs
156,782
123,820
Total Expenses
1,060,852
583,645
Operating Income (a)
$
330,726
$
111,184
(a) Operating Income excludes Income (Loss) from Equity Method Investments.
EVERCORE INC.
U.S. GAAP RECONCILIATION TO ADJUSTED NON-COMPENSATION COSTS
(dollars in thousands)
(UNAUDITED)
Three Months Ended March 31, 2026
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
27,065
$
—
$
27,065
Professional Fees
28,355
—
28,355
Travel and Related Expenses
27,871
—
27,871
Technology and Information Services
40,418
—
40,418
Depreciation and Amortization
12,438
(3,730
)
(4a)
8,708
Execution, Clearing and Custody Fees
3,187
—
3,187
Acquisition and Transition Costs
1,800
(1,800
)
(4b)
—
Other Operating Expenses
15,648
(1,203
)
(4c)
14,445
Total Non-Compensation Costs
$
156,782
$
(6,733
)
$
150,049
Three Months Ended March 31, 2025
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
25,731
$
—
$
25,731
Professional Fees
22,390
—
22,390
Travel and Related Expenses
22,018
—
22,018
Technology and Information Services
33,367
—
33,367
Depreciation and Amortization
5,976
—
5,976
Execution, Clearing and Custody Fees
3,346
—
3,346
Other Operating Expenses
10,992
—
10,992
Total Non-Compensation Costs
$
123,820
$
—
$
123,820
Notes to Unaudited Condensed Consolidated Adjusted Financial Data
For further information on these adjustments, see page A-2.
(1)
Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation.
(2)
Interest Expense on Debt, Lines of Credit and Other Financing Arrangements is excluded from Net Revenues and presented below Operating Income in the Adjusted results and is included in Interest Expense on a U.S. GAAP basis. The Adjusted results also reflect the reduction of interest expense accrued for deferred acquisition consideration issued in the acquisition of Robey Warshaw.
(3)
Expenses associated with awards granted in conjunction with the Company's acquisition of Robey Warshaw are excluded from the Adjusted presentation.
(4)
Non-Compensation Costs on an Adjusted basis reflect the following adjustments:
(4a)
The exclusion from the Adjusted presentation of expenses associated with the amortization of intangible assets from the acquisition of Robey Warshaw.
(4b)
The exclusion from the Adjusted presentation of costs incurred for the impairment of a lease related to the acquisition of Robey Warshaw.
(4c)
The exclusion from the Adjusted presentation of the expense, or reversal of expense, associated with the changes in fair value of contingent consideration issued to the sellers of Robey Warshaw.
(5)
Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.
(6)
Reflects an adjustment to eliminate noncontrolling interest related to substantially all Evercore LP partnership units which are assumed to be converted to Class A common stock in the Adjusted presentation.
(7)
Assumes the exchange into Class A shares of substantially all Evercore LP Units and IPO related restricted stock unit awards in the Adjusted presentation. In the computation of outstanding common stock equivalents for U.S. GAAP net income per share, the Evercore LP Units are anti-dilutive.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428305379/en/
Investor Contact:
Katy Haber
Head of Investor Relations & ESG
InvestorRelations@Evercore.com
Media Contacts:
Jamie Easton
Head of Communications & External Affairs
Communications@Evercore.com
Shree Dhond / Zach Kouwe
Dukas Linden Public Relations
Evercore@DLPR.com
(646) 722-6531
Original: Evercore Reports Record First Quarter 2026 Revenues; Increases Quarterly Dividend to $0.89 Per Share
US Market News
5 months ago
Evercore Reports Record Fourth Quarter and Full Year 2025 Revenues; Quarterly Dividend of $0.84 Per ShareFebruary 4, 2026 6:45 AM
Business Wire
Evercore Inc. (NYSE: EVR):
Fourth Quarter Results
Full Year Results
U.S. GAAP
Adjusted
U.S. GAAP
Adjusted
Q4 2025
Q4 2024
Q4 2025
Q4 2024
2025
2024
2025
2024
Net Revenues ($ mm)
$
1,288.3
$
975.3
$
1,298.1
$
980.5
$
3,855.8
$
2,979.6
$
3,884.0
$
3,002.6
Operating Income ($ mm)
$
312.2
$
212.6
$
337.4
$
217.7
$
789.9
$
526.9
$
838.6
$
557.3
Net Income Attributable to Evercore Inc. ($ mm)
$
204.0
$
140.4
$
230.7
$
153.2
$
591.9
$
378.3
$
646.3
$
415.8
Diluted Earnings Per Share
$
4.76
$
3.30
$
5.13
$
3.41
$
14.05
$
9.08
$
14.56
$
9.42
Compensation Ratio
63.0
%
65.6
%
62.0
%
65.2
%
64.9
%
66.3
%
64.2
%
65.7
%
Operating Margin
24.2
%
21.8
%
26.0
%
22.2
%
20.5
%
17.7
%
21.6
%
18.6
%
Business and Financial
Highlights
¦
Record Fourth Quarter and Full Year Net Revenues were $1.3 billion and $3.9 billion, respectively, on both a U.S. GAAP and an Adjusted basis. Fourth Quarter and Full Year Net Revenues increased 32% and 29%, respectively, on both a U.S. GAAP and an Adjusted basis versus 2024
¦
Fourth Quarter Operating Income of $312.2 million and $337.4 million on a U.S. GAAP and an Adjusted basis, respectively, increased 47% and 55%, respectively, versus 2024; Fourth Quarter Operating Margins of 24.2% and 26.0% on a U.S. GAAP and an Adjusted basis, respectively, increased 244 and 379 basis points, respectively, versus 2024
¦
In Strategic Advisory, Evercore advised on five of the top 15 globally announced transactions in 2025. In the fourth quarter, we advised on some notable and complex transactions, including:
¦
Warner Bros. Discovery on its business separation and ~$82.7 billion sale of Warner Bros. to Netflix
¦
Axalta's ~$25 billion merger with AkzoNobel
¦
Cidara Therapeutics on its ~$9.2 billion sale to Merck
¦
Sealed Air's $10.3 billion acquisition by CD&R
¦
Our North American Advisory, Europe, Middle East and Africa ("EMEA") Advisory, Private Capital Advisory and Private Funds Group businesses each had record revenue years
¦
Our Liability Management & Restructuring team was named IFR's Americas Restructuring Adviser of the Year for 2025
¦
In the early weeks of 2026, we continue to see strong momentum, advising:
¦
Devon Energy on its $58 billion merger with Coterra Energy
¦
Global Healthcare Exchange (GHX) on the sale of a majority stake to Veritas Capital
¦
Cogentrix Energy on its $4.7 billion sale to Vistra Corporation
¦
In 2025, Evercore’s Underwriting revenues were up 14% and we were a bookrunner on all of our equity transactions
¦
Our Equities business had its best year on record, and has experienced nine consecutive quarters of year-over-year revenue improvement
Talent
¦
As of December 31, 2025, our Investment Banking franchise had 171 Senior Managing Directors (SMDs), inclusive of the recent joiners and commits mentioned below
¦
Seven Investment Banking SMDs have joined Evercore since our last earnings call; Jonathan Dale in the Consumer Group in Europe, Kaan Kesedar in our Financial Sponsors Group in Europe, Chris Macios in our Financial Sponsors Group in the U.S., Ashish Varshneya in the U.S. Healthcare Investment Banking Group, Lars Ingemarsson as Head of the Firm’s Nordic region and Keith Prusek and Hugh Rabb in our Transportation Investment Banking Group
¦
Since our last earnings call, three additional Investment Banking SMDs have committed to join Evercore, and will be joining later this year; one in our U.S. Healthcare Investment Banking Group, one in Equity Capital Markets and one in Private Capital Advisory in Singapore
Board of Directors
¦
Christine Varney appointed to the Board of Directors, effective March 1, 2026
Capital Return
¦
Quarterly dividend of $0.84 per share
¦
Returned $812.4 million to shareholders during 2025 through dividends and repurchases of 2.4 million shares at an average price of $275.42
Evercore Inc. (NYSE: EVR) today announced its results for the fourth quarter and full year ended December 31, 2025.
LEADERSHIP COMMENTARY
John S. Weinberg, Chairman and Chief Executive Officer, "Our 2025 results reflect strengthening market conditions and the benefits of our diversified business model. We enter 2026 with momentum and remain focused on serving our clients and executing our long-term growth strategy."
Roger C. Altman, Founder and Senior Chairman, "Evercore delivered record fourth quarter and full year revenues, ranking #3 globally in Advisory revenues among public firms for the second consecutive year. Our market share is at an all-time high."
Evercore's quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned, as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.
Business Segments:
Evercore's business results are categorized into two segments: Investment Banking & Equities and Investment Management. Investment Banking & Equities includes providing advice to clients on mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, as well as advising third-party investors through affiliates. See pages A-2 to A-10 for further information and reconciliations of these segment results to our U.S. GAAP consolidated results.
Non-GAAP Measures:
Throughout this release certain information is presented on an adjusted basis, which is a non-GAAP measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and then those results are adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units into Class A shares. Evercore believes that the disclosed adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. Evercore uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.
Evercore's Adjusted Net Income Attributable to Evercore Inc. for the three and twelve months ended December 31, 2025 was higher than U.S. GAAP principally as a result of the exclusion of the following expenses:
Acquisition-related compensation charges reflecting expenses associated with awards granted in conjunction with the Company's acquisition of Robey Warshaw
Acquisition and Transition Costs including professional fees and certain other costs incurred related to the acquisition of Robey Warshaw and transfer taxes and professional fees incurred resulting from the Company's reorganization of businesses within the Europe, Middle East and Africa ("EMEA") legal entity structure
Expenses associated with the amortization of intangible assets and interest cost related to deferred acquisition consideration from the Robey Warshaw acquisition
Evercore's Adjusted Diluted Shares Outstanding for the three and twelve months ended December 31, 2025 were higher than U.S. GAAP primarily as a result of the inclusion of Evercore LP Units.
Further details of these adjustments, as well as an explanation of similar amounts for the three and twelve months ended December 31, 2024 are included in pages A-2 to A-10.
Reclassifications:
During the second quarter of 2025, the Company changed its U.S. GAAP and Adjusted presentation such that "Communications and Information Services" was renamed to "Technology and Information Services." Technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." The Company has reclassified prior periods to conform to the current presentation in this release. There was no impact on previously reported U.S. GAAP or Adjusted Operating Income, Net Income or Earnings Per Share.
The prior period reclassifications from "Professional Fees" to "Technology and Information Services" are as follows: Q1 2025: $10.2 million; Q1 2024: $9.0 million; Q2 2024: $9.9 million; Q3 2024: $10.4 million; Q4 2024: $10.2 million; Q1 2023: $8.6 million; Q2 2023: $8.2 million; Q3 2023: $9.2 million; Q4 2023: $9.1 million. Further details of these reclassifications, as well as a revised presentation for the quarterly results for Q1 2025 and quarterly and full year results for 2024, 2023 and 2022 are available on the Investor Relations section of Evercore's website at www.evercore.com.
Selected Financial Data – U.S. GAAP Results
The following is a discussion of Evercore's consolidated results on a U.S. GAAP basis. See pages A-6 to A-8 for our business segment results.
Net Revenues
U.S. GAAP
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
%
Change
December 31, 2025
December 31, 2024
%
Change
(dollars in thousands)
Investment Banking & Equities:
Advisory Fees
$
1,128,282
$
849,556
33
%
$
3,267,087
$
2,440,605
34
%
Underwriting Fees
49,456
26,401
87
%
179,647
157,067
14
%
Commissions and Related Revenue
66,487
58,049
15
%
242,685
214,045
13
%
Investment Management:
Asset Management and Administration Fees
23,212
21,096
10
%
87,356
79,550
10
%
Other Revenue, net
20,840
20,230
3
%
79,045
88,326
(11
%)
Net Revenues
$
1,288,277
$
975,332
32
%
$
3,855,820
$
2,979,593
29
%
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
%
Change
December 31, 2025
December 31, 2024
%
Change
Total Number of Fees from Advisory and Underwriting Client Transactions(1)
357
322
11
%
806
748
8
%
Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions(1)
185
159
16
%
529
457
16
%
Total Number of Underwriting Transactions(1)
18
12
50
%
59
65
(9
%)
Total Number of Underwriting Transactions as a Bookrunner(1)
18
10
80
%
56
55
2
%
1. Includes Equity and Debt Underwriting Transactions.
As of December 31,
2025
2024
%
Change
Assets Under Management ($ mm)(1)
$
15,516
$
13,898
12
%
1. Assets Under Management reflect end of period amounts from our consolidated Wealth Management business.
Advisory Fees – Fourth quarter Advisory Fees increased $278.7 million, or 33%, year-over-year, and full year Advisory Fees increased $826.5 million, or 34%, year-over-year, primarily reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2025.
Underwriting Fees – Fourth quarter Underwriting Fees increased $23.1 million, or 87%, year-over-year, reflecting an increase in the number of transactions we participated in during the fourth quarter of 2025. Full year Underwriting Fees increased $22.6 million, or 14%, year-over-year, reflecting an increase in the average fee size of the transactions we participated in during 2025.
Commissions and Related Revenue – Fourth quarter Commissions and Related Revenue increased $8.4 million, or 15%, year-over-year, and full year Commissions and Related Revenue increased $28.6 million, or 13%, year-over-year, primarily reflecting higher trading commissions driven by increased trading volume and higher subscription fees during 2025.
Asset Management and Administration Fees – Fourth quarter Asset Management and Administration Fees increased $2.1 million, or 10%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 12%, from market appreciation and net inflows. Full year Asset Management and Administration Fees increased $7.8 million, or 10%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 12%, from market appreciation and net inflows.
Other Revenue, net – Fourth quarter Other Revenue, net, increased $0.6 million, or 3%, year-over-year, primarily reflecting higher interest income. This increase was partially offset by an increase in interest expense related to the issuance of new senior notes in July 2025. Full year Other Revenue, net, decreased $9.3 million, or 11%, year-over-year, primarily reflecting lower performance of our investment funds portfolio and an increase in interest expense related to the issuance of new senior notes in July 2025. These decreases were partially offset by higher interest income resulting from higher average balances in interest-bearing assets. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Expenses
U.S. GAAP
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
%
Change
December 31, 2025
December 31, 2024
%
Change
(dollars in thousands)
Employee Compensation and Benefits
$
811,746
$
639,386
27
%
$
2,500,834
$
1,974,036
27
%
Compensation Ratio
63.0
%
65.6
%
64.9
%
66.3
%
Non-Compensation Costs
$
164,368
$
123,388
33
%
$
565,044
$
471,338
20
%
Non-Compensation Ratio
12.8
%
12.7
%
14.7
%
15.8
%
Special Charges, Including Business Realignment Costs
$
—
$
—
NM
$
—
$
7,305
NM
Employee Compensation and Benefits – Fourth quarter Employee Compensation and Benefits increased $172.4 million, or 27%, year-over-year, reflecting a compensation ratio of 63.0% for the fourth quarter of 2025 versus 65.6% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires. The Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Full year Employee Compensation and Benefits increased $526.8 million, or 27%, year-over-year, reflecting a full year compensation ratio of 64.9% versus 66.3% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information.
Non-Compensation Costs – Fourth quarter Non-Compensation Costs increased $41.0 million, or 33%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services and license fees in the fourth quarter of 2025, an increase in depreciation and amortization, principally reflecting the amortization of intangible assets from the acquisition of Robey Warshaw, an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, and an increase in other operating expenses related to charitable contributions made to the Evercore Foundation. The fourth quarter Non-Compensation ratio of 12.8% increased from 12.7% compared to the prior year period. The Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Full year Non-Compensation Costs increased $93.7 million, or 20%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services, license fees and consulting costs, an increase in occupancy and equipment rental expense, primarily related to an increase in office space, and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The full year Non-Compensation ratio of 14.7% decreased from 15.8% for the prior year period. The Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period.
Non-Compensation Costs for the fourth quarter and full year 2025 are also impacted by Acquisition and Transition Costs resulting from the acquisition of Robey Warshaw and the Company's reorganization of businesses within the EMEA legal entity structure.
Special Charges, Including Business Realignment Costs – Full year 2024 Special Charges, Including Business Realignment Costs, relate to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest.
Effective Tax Rate
The fourth quarter effective tax rate was 29.0% versus 27.5% for the prior year period, principally reflecting an increase in non-deductible expenses and state and local apportionment adjustments. The full year effective tax rate was 19.3% versus 21.6% for the prior year period, principally reflecting the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price, partially offset by an increase in non-deductible expenses and state and local apportionment adjustments.
Selected Financial Data – Adjusted Results
The following is a discussion of Evercore's consolidated results on an Adjusted basis. See pages 3 and A-2 to A-10 for further information and reconciliations of these metrics to our U.S. GAAP results. See pages A-6 to A-8 for our business segment results.
Adjusted Net Revenues
Adjusted
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
%
Change
December 31, 2025
December 31, 2024
%
Change
(dollars in thousands)
Investment Banking & Equities:
Advisory Fees(1)
$
1,128,304
$
849,587
33
%
$
3,267,093
$
2,441,678
34
%
Underwriting Fees
49,456
26,401
87
%
179,647
157,067
14
%
Commissions and Related Revenue
66,487
58,049
15
%
242,685
214,045
13
%
Investment Management:
Asset Management and Administration Fees(2)
24,286
22,042
10
%
91,222
84,708
8
%
Other Revenue, net
29,591
24,423
21
%
103,309
105,137
(2
%)
Net Revenues
$
1,298,124
$
980,502
32
%
$
3,883,956
$
3,002,635
29
%
1. Advisory Fees on an Adjusted basis reflect the reclassification of earnings related to our equity method investment in Seneca Evercore and our former equity method investment in Luminis (through September 2024) of $0.02 million and $0.01 million for the three and twelve months ended December 31, 2025, respectively, and $0.03 million and $1.1 million for the three and twelve months ended December 31, 2024, respectively.
2. Asset Management and Administration Fees on an Adjusted basis reflect the reclassification of earnings related to our equity method investment in Atalanta Sosnoff and our former equity method investment in ABS (through July 2024) of $1.1 million and $3.9 million for the three and twelve months ended December 31, 2025, respectively, and $0.9 million and $5.2 million for the three and twelve months ended December 31, 2024, respectively.
See page 5 for additional business metrics.
Advisory Fees – Fourth quarter adjusted Advisory Fees increased $278.7 million, or 33%, year-over-year, and full year adjusted Advisory Fees increased $825.4 million, or 34%, year-over-year, primarily reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2025.
Underwriting Fees – Fourth quarter Underwriting Fees increased $23.1 million, or 87%, year-over-year, reflecting an increase in the number of transactions we participated in during the fourth quarter of 2025. Full year Underwriting Fees increased $22.6 million, or 14%, year-over-year, reflecting an increase in the average fee size of the transactions we participated in during 2025.
Commissions and Related Revenue – Fourth quarter Commissions and Related Revenue increased $8.4 million, or 15%, year-over-year, and full year Commissions and Related Revenue increased $28.6 million, or 13%, year-over-year, primarily reflecting higher trading commissions driven by increased trading volume and higher subscription fees during 2025.
Asset Management and Administration Fees – Fourth quarter adjusted Asset Management and Administration Fees increased $2.2 million, or 10%, year-over-year, primarily driven by an increase in fees from Wealth Management clients, as associated AUM increased 12%, from market appreciation and net inflows. The increase was also driven by a 14% increase in equity in earnings of affiliates. Full year adjusted Asset Management and Administration Fees increased $6.5 million, or 8%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 12%, from market appreciation and net inflows. The increase was partially offset by a 25% decrease in equity in earnings of affiliates, reflecting the sale of the remaining portion of our interest in ABS during the third quarter of 2024.
Other Revenue – Fourth quarter adjusted Other Revenue, net, increased $5.2 million, or 21%, year-over-year, primarily reflecting higher interest income. Full year adjusted Other Revenue, net, decreased $1.8 million, or 2%, year-over-year, primarily reflecting lower performance of our investment funds portfolio. The decrease was partially offset by higher interest income resulting from higher average balances in interest-bearing assets. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Adjusted Expenses
Adjusted
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
%
Change
December 31, 2025
December 31, 2024
%
Change
(dollars in thousands)
Employee Compensation and Benefits
$
804,706
$
639,386
26
%
$
2,493,794
$
1,974,036
26
%
Compensation Ratio
62.0
%
65.2
%
64.2
%
65.7
%
Non-Compensation Costs
$
156,003
$
123,388
26
%
$
551,526
$
471,338
17
%
Non-Compensation Ratio
12.0
%
12.6
%
14.2
%
15.7
%
Employee Compensation and Benefits – Fourth quarter adjusted Employee Compensation and Benefits increased $165.3 million, or 26%, year-over-year, reflecting an adjusted compensation ratio of 62.0% for the fourth quarter of 2025 versus 65.2% for the prior year period. The increase in adjusted Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires. The adjusted Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Full year adjusted Employee Compensation and Benefits increased $519.8 million, or 26%, year-over-year, reflecting a full year adjusted compensation ratio of 64.2% versus 65.7% for the prior year period. The increase in adjusted Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The adjusted Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information.
Non-Compensation Costs – Fourth quarter adjusted Non-Compensation Costs increased $32.6 million, or 26%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services and license fees in the fourth quarter of 2025, an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, and an increase in other operating expenses related to charitable contributions made to the Evercore Foundation. The fourth quarter adjusted Non-Compensation ratio of 12.0% decreased from 12.6% for the prior year period. The adjusted Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Full year adjusted Non-Compensation Costs increased $80.2 million, or 17%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services, license fees and consulting costs, an increase in occupancy and equipment rental expense, primarily related to an increase in office space, and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The full year adjusted Non-Compensation ratio of 14.2% decreased from 15.7% for the prior year period. The adjusted Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period.
Adjusted Effective Tax Rate
The fourth quarter adjusted effective tax rate was 29.4% versus 27.3% for the prior year period, principally reflecting an increase in non-deductible expenses and state and local apportionment adjustments. The full year adjusted effective tax rate was 19.8% versus 21.8% for the prior year period, principally reflecting the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price, partially offset by an increase in non-deductible expenses and state and local apportionment adjustments.
Liquidity
The Company continues to maintain a strong balance sheet. As of December 31, 2025, cash and cash equivalents were $1.4 billion, investment securities and certificates of deposit were $1.6 billion and current assets exceeded current liabilities by $2.1 billion. Amounts due related to the Notes Payable were $588.2 million at December 31, 2025.
Headcount
As of December 31, 2025 and 2024, the Company employed approximately 2,570 and 2,380 people, respectively, worldwide.
As of December 31, 2025 and 2024, the Company employed 210(1) and 184(2) total Investment Banking & Equities Senior Managing Directors, respectively, of which 171(1) and 144(2), respectively, were Investment Banking Senior Managing Directors.
(1)
Senior Managing Director headcount as of December 31, 2025, inclusive of new hires that have joined year-to-date and additionally adjusted to include four incoming Investment Banking Senior Managing Directors committed to join.
(2)
Senior Managing Director headcount as of December 31, 2024, inclusive of new hires that have joined year-to-date and additionally adjusted to include two incoming Investment Banking Senior Managing Directors committed to join and to exclude for one known departure.
Deferred Compensation
During 2025, the Company granted to certain employees 1.9 million unvested restricted stock units ("RSUs") (of which 1.6 million were granted in conjunction with the 2024 bonus awards) with a grant date fair value of $488.1 million.
In addition, during 2025, the Company granted $83.0 million of deferred cash awards to certain employees, related to our deferred cash compensation program, principally pursuant to 2024 bonus awards.
The Company recognized compensation expense related to RSUs and our deferred cash compensation program of $122.9 million and $518.0 million for the three and twelve months ended December 31, 2025, respectively, and $114.0 million and $476.2 million for the three and twelve months ended December 31, 2024, respectively.
As of December 31, 2025, the Company had 4.8 million unvested RSUs with an aggregate grant date fair value of $931.6 million. RSUs are expensed over the service period of the award, subject to retirement eligibility, and generally vest over four years.
As of December 31, 2025, the Company expects to pay an aggregate of $360.2 million related to our deferred cash compensation program at various dates through 2029, subject to certain vesting events. Amounts due pursuant to this program are expensed over the service period of the award, subject to retirement eligibility, and are reflected in Accrued Compensation and Benefits, a component of current liabilities.
In addition, from time to time, the Company also grants cash and equity-based performance awards to certain employees, the settlement of which is dependent on the performance criteria being achieved.
Capital Return Transactions
On February 3, 2026, the Board of Directors of Evercore declared a quarterly dividend of $0.84 per share to be paid on March 13, 2026 to common stockholders of record on February 27, 2026.
During the fourth quarter, the Company repurchased 12 thousand shares from employees for the net settlement of stock-based compensation awards at an average price per share of $303.03, and 0.5 million shares at an average price per share of $317.85 pursuant to the Company's share repurchase program. The aggregate 0.5 million shares were acquired at an average price per share of $317.50. During 2025, the Company repurchased 1.0 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $284.01, and 1.4 million shares at an average price per share of $269.74 pursuant to the Company's share repurchase program. The aggregate 2.4 million shares were acquired at an average price per share of $275.42.
Conference Call
Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, February 4, 2026, accessible via telephone and webcast. Investors and analysts may participate in the live conference call by dialing (800) 245-3047 (toll-free domestic) or (203) 518-9765 (international); passcode: EVRQ425. Please register at least 10 minutes before the conference call begins.
A live audio webcast of the conference call will be available on the Investor Relations section of Evercore’s website at www.evercore.com. The webcast will be archived on Evercore’s website for 30 days.
About Evercore
Evercore (NYSE: EVR) is a premier global independent investment banking advisory firm. We are dedicated to helping our clients achieve superior results through trusted independent and innovative advice on matters of strategic significance to boards of directors, management teams and shareholders, including mergers and acquisitions, strategic shareholder advisory, restructurings, and capital structure. Evercore also assists clients in raising public and private capital and delivers equity research and equity sales and agency trading execution, in addition to providing wealth and investment management services to high net worth and institutional investors. Founded in 1995, the Firm is headquartered in New York and maintains offices and affiliate offices in major financial centers in the Americas, Europe, the Middle East and Asia. For more information, please visit www.evercore.com.
Basis of Alternative Financial Statement Presentation
Our Adjusted results are a non-GAAP measure. As discussed further under "Non-GAAP Measures", Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and better reflects how management views its operating results. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our U.S. GAAP results to Adjusted results is presented in the tables included in the following pages.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore's operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "backlog," "believes," "expects," "potential," "probable," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. All statements, other than statements of historical fact, included in this release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in Evercore's business. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Evercore believes these factors include, but are not limited to, those described under "Risk Factors" discussed in Evercore's Annual Report on Form 10-K for the year ended December 31, 2024, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and Registration Statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Evercore to predict all risks and uncertainties, nor can Evercore assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and Evercore does not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Evercore undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
EVERCORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2025 AND 2024
(dollars in thousands, except per share data)
(UNAUDITED)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
Revenues
Investment Banking & Equities:
Advisory Fees
$
1,128,282
$
849,556
$
3,267,087
$
2,440,605
Underwriting Fees
49,456
26,401
179,647
157,067
Commissions and Related Revenue
66,487
58,049
242,685
214,045
Asset Management and Administration Fees
23,212
21,096
87,356
79,550
Other Revenue, Including Interest and Investments
29,591
24,423
103,309
105,094
Total Revenues
1,297,028
979,525
3,880,084
2,996,361
Interest Expense(1)
8,751
4,193
24,264
16,768
Net Revenues
1,288,277
975,332
3,855,820
2,979,593
Expenses
Employee Compensation and Benefits
811,746
639,386
2,500,834
1,974,036
Occupancy and Equipment Rental
28,609
24,121
108,784
90,953
Professional Fees(2)
31,849
27,710
103,044
96,205
Travel and Related Expenses
26,364
20,562
95,612
79,446
Technology and Information Services(2)
39,314
31,675
146,222
120,995
Depreciation and Amortization
12,275
5,840
32,557
24,468
Execution, Clearing and Custody Fees
3,011
3,473
12,499
13,211
Special Charges, Including Business Realignment Costs
—
—
—
7,305
Acquisition and Transition Costs
4,705
—
9,858
—
Other Operating Expenses
18,241
10,007
56,468
46,060
Total Expenses
976,114
762,774
3,065,878
2,452,679
Income Before Income from Equity Method Investments and Income Taxes
312,163
212,558
789,942
526,914
Income from Equity Method Investments
1,096
977
3,872
6,231
Income Before Income Taxes
313,259
213,535
793,814
533,145
Provision for Income Taxes
90,775
58,749
153,107
115,408
Net Income
222,484
154,786
640,707
417,737
Net Income Attributable to Noncontrolling Interest
18,530
14,351
48,785
39,458
Net Income Attributable to Evercore Inc.
$
203,954
$
140,435
$
591,922
$
378,279
Net Income Attributable to Evercore Inc. Common Shareholders
$
203,954
$
140,435
$
591,922
$
378,279
Weighted Average Shares of Class A Common Stock Outstanding:
Basic
38,693
38,228
38,712
38,365
Diluted
42,834
42,611
42,131
41,646
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:
Basic
$
5.27
$
3.67
$
15.29
$
9.86
Diluted
$
4.76
$
3.30
$
14.05
$
9.08
(1)
Includes interest expense on long-term debt, lines of credit and other financing arrangements.
(2)
Certain balances in the prior period were reclassified to conform to their current presentation in this release. "Communications and Information Services" has been renamed to "Technology and Information Services" and technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." For the three and twelve months ended December 31, 2024, this resulted in a reclassification of $10.2 million and $39.5 million, respectively, from "Professional Fees" to "Technology and Information Services." There was no impact on previously reported U.S. GAAP Operating Income, Net Income or Earnings Per Share. See page A-3 for further information.
Adjusted Results
Throughout the discussion of Evercore's business and elsewhere in this release, information is presented on an Adjusted basis, which is a non-generally accepted accounting principles ("non-GAAP") measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units and Unvested Restricted Stock Units into Class A shares. Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. The Company uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These Adjusted amounts are allocated to the Company's two business segments: Investment Banking & Equities and Investment Management. The differences between the Adjusted and U.S. GAAP results are as follows:
Assumed Exchange of Evercore LP Units into Class A Shares. The Adjusted results assume substantially all Evercore LP Units have been exchanged for Class A shares. Accordingly, the noncontrolling interest related to these units is converted to a controlling interest. The Company's management believes that it is useful to provide the per-share effect associated with the assumed conversion of substantially all of these previously granted equity interests and IPO related restricted stock units, and thus the Adjusted results reflect their exchange into Class A shares.
Adjustments Associated with Business Combinations and Divestitures. The following charges resulting from business combinations and divestitures have been excluded from the Adjusted results as the Company's Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges:
Acquisition and Transition Costs. Professional fees and certain other costs incurred related to the acquisition of Robey Warshaw and transfer taxes and professional fees incurred resulting from the Company's reorganization of businesses within the EMEA legal entity structure.
Acquisition-related Compensation Charges. Expenses associated with awards granted in conjunction with the Company's acquisition of Robey Warshaw.
Amortization of Intangible Assets. Amortization of intangible assets from the acquisition of Robey Warshaw.
Interest Expense. Interest expense accrued for deferred acquisition consideration issued in the acquisition of Robey Warshaw.
Foreign Exchange Gains / (Losses). The release of cumulative foreign exchange losses in the third quarter of 2024 resulting from the redemption of the Company's interest in Luminis.
Gain on Sale of Interests in ABS. The gain on the sale of the remaining portion of the Company's interest in ABS in the third quarter of 2024.
Special Charges, Including Business Realignment Costs. Expenses during 2024 that are excluded from the Adjusted presentation relate to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest.
Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.
Presentation of Interest Expense. The Adjusted results present Adjusted Investment Banking & Equities Operating Income and Adjusted Investment Management Operating Income before interest expense on debt, lines of credit and other financing arrangements, which are included in interest expense on a U.S. GAAP basis.
Presentation of Income from Equity Method Investments. The Adjusted results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a useful presentation.
Reclassifications:
During the second quarter of 2025, the Company changed its U.S. GAAP and Adjusted presentation such that "Communications and Information Services" was renamed to "Technology and Information Services." Technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." The Company has reclassified prior periods to conform to the current presentation in this release. There was no impact on previously reported U.S. GAAP or Adjusted Operating Income, Net Income or Earnings Per Share.
The prior period reclassifications from "Professional Fees" to "Technology and Information Services" are as follows: Q1 2025: $10.2 million; Q1 2024: $9.0 million; Q2 2024: $9.9 million; Q3 2024: $10.4 million; Q4 2024: $10.2 million; Q1 2023: $8.6 million; Q2 2023: $8.2 million; Q3 2023: $9.2 million; Q4 2023: $9.1 million. Further details of these reclassifications, as well as a revised presentation for the quarterly results for Q1 2025 and quarterly and full year results for 2024, 2023 and 2022 are available on the Investor Relations section of Evercore's website at www.evercore.com.
EVERCORE INC.
U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS
(dollars in thousands, except per share data)
(UNAUDITED)
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Net Revenues - U.S. GAAP
$
1,288,277
$
975,332
$
3,855,820
$
2,979,593
Income from Equity Method Investments (1)
1,096
977
3,872
6,231
Interest Expense (2)
8,751
4,193
24,264
16,768
Release of Foreign Exchange Losses from Luminis Redemption (3)
—
—
—
658
Gain on Sale of Interests in ABS (4)
—
—
—
(615
)
Net Revenues - Adjusted
$
1,298,124
$
980,502
$
3,883,956
$
3,002,635
Other Revenue, net - U.S. GAAP
$
20,840
$
20,230
$
79,045
$
88,326
Interest Expense (2)
8,751
4,193
24,264
16,768
Release of Foreign Exchange Losses from Luminis Redemption (3)
—
—
—
658
Gain on Sale of Interests in ABS (4)
—
—
—
(615
)
Other Revenue, net - Adjusted
$
29,591
$
24,423
$
103,309
$
105,137
Compensation Expense - U.S. GAAP
$
811,746
$
639,386
$
2,500,834
$
1,974,036
Acquisition-related Compensation Charges (5)
(7,040
)
—
(7,040
)
—
Compensation Expense - Adjusted
$
804,706
$
639,386
$
2,493,794
$
1,974,036
Operating Income - U.S. GAAP
$
312,163
$
212,558
$
789,942
$
526,914
Income from Equity Method Investments (1)
1,096
977
3,872
6,231
Pre-Tax Income - U.S. GAAP
313,259
213,535
793,814
533,145
Release of Foreign Exchange Losses from Luminis Redemption (3)
—
—
—
658
Gain on Sale of Interests in ABS (4)
—
—
—
(615
)
Acquisition-related Compensation Charges (5)
7,040
—
7,040
—
Special Charges, Including Business Realignment Costs (6)
—
—
—
7,305
Intangible Asset Amortization (7a)
3,660
—
3,660
—
Interest Expense (2)
1,400
—
1,400
—
Acquisition and Transition Costs (7b)
4,705
—
9,858
—
Pre-Tax Income - Adjusted
330,064
213,535
815,772
540,493
Interest Expense (2)
7,351
4,193
22,864
16,768
Operating Income - Adjusted
$
337,415
$
217,728
$
838,636
$
557,261
Provision for Income Taxes - U.S. GAAP
$
90,775
$
58,749
$
153,107
$
115,408
Income Taxes (8)
6,122
(390
)
8,590
2,312
Provision for Income Taxes - Adjusted
$
96,897
$
58,359
$
161,697
$
117,720
Net Income Attributable to Evercore Inc. - U.S. GAAP
$
203,954
$
140,435
$
591,922
$
378,279
Release of Foreign Exchange Losses from Luminis Redemption (3)
—
—
—
658
Gain on Sale of Interests in ABS (4)
—
—
—
(615
)
Acquisition-related Compensation Charges (5)
7,040
—
7,040
—
Special Charges, Including Business Realignment Costs (6)
—
—
—
7,305
Intangible Asset Amortization (7a)
3,660
—
3,660
—
Interest Expense (2)
1,400
—
1,400
—
Acquisition and Transition Costs (7b)
4,705
—
9,858
—
Income Taxes (8)
(6,122
)
390
(8,590
)
(2,312
)
Noncontrolling Interest (9)
16,018
12,411
41,044
32,446
Net Income Attributable to Evercore Inc. - Adjusted
$
230,655
$
153,236
$
646,334
$
415,761
Diluted Shares Outstanding - U.S. GAAP
42,834
42,611
42,131
41,646
LP Units (10)
2,105
2,359
2,238
2,499
Unvested Restricted Stock Units - Event Based (10)
12
12
12
12
Diluted Shares Outstanding - Adjusted
44,951
44,982
44,381
44,157
EVERCORE INC.
U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS (cont'd)
(UNAUDITED)
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Key Metrics: (a)
Diluted Earnings Per Share - U.S. GAAP
$
4.76
$
3.30
$
14.05
$
9.08
Diluted Earnings Per Share - Adjusted
$
5.13
$
3.41
$
14.56
$
9.42
Compensation Ratio - U.S. GAAP
63.0
%
65.6
%
64.9
%
66.3
%
Compensation Ratio - Adjusted
62.0
%
65.2
%
64.2
%
65.7
%
Operating Margin - U.S. GAAP
24.2
%
21.8
%
20.5
%
17.7
%
Operating Margin - Adjusted
26.0
%
22.2
%
21.6
%
18.6
%
Effective Tax Rate - U.S. GAAP
29.0
%
27.5
%
19.3
%
21.6
%
Effective Tax Rate - Adjusted
29.4
%
27.3
%
19.8
%
21.8
%
(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2025
(dollars in thousands)
(UNAUDITED)
Investment Banking & Equities Segment
Three Months Ended December 31, 2025
Twelve Months Ended December 31, 2025
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
1,128,282
$
22
(1)
$
1,128,304
$
3,267,087
$
6
(1)
$
3,267,093
Underwriting Fees
49,456
—
49,456
179,647
—
179,647
Commissions and Related Revenue
66,487
—
66,487
242,685
—
242,685
Other Revenue, net
20,535
8,751
(2)
29,286
78,236
24,264
(2)
102,500
Net Revenues
1,264,760
8,773
1,273,533
3,767,655
24,270
3,791,925
Expenses:
Employee Compensation and Benefits
800,317
(7,040
)
(5)
793,277
2,448,409
(7,040
)
(5)
2,441,369
Non-Compensation Costs
159,932
(8,365
)
(7)
151,567
548,304
(13,518
)
(7)
534,786
Total Expenses
960,249
(15,405
)
944,844
2,996,713
(20,558
)
2,976,155
Operating Income (a)
$
304,511
$
24,178
$
328,689
$
770,942
$
44,828
$
815,770
Compensation Ratio (b)
63.3
%
62.3
%
65.0
%
64.4
%
Operating Margin (b)
24.1
%
25.8
%
20.5
%
21.5
%
Investment Management Segment
Three Months Ended December 31, 2025
Twelve Months Ended December 31, 2025
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Asset Management and Administration Fees
$
23,212
$
1,074
(1)
$
24,286
$
87,356
$
3,866
(1)
$
91,222
Other Revenue, net
305
—
305
809
—
809
Net Revenues
23,517
1,074
24,591
88,165
3,866
92,031
Expenses:
Employee Compensation and Benefits
11,429
—
11,429
52,425
—
52,425
Non-Compensation Costs
4,436
—
4,436
16,740
—
16,740
Total Expenses
15,865
—
15,865
69,165
—
69,165
Operating Income (a)
$
7,652
$
1,074
$
8,726
$
19,000
$
3,866
$
22,866
Compensation Ratio (b)
48.6
%
46.5
%
59.5
%
57.0
%
Operating Margin (b)
32.5
%
35.5
%
21.6
%
24.8
%
(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024
(dollars in thousands)
(UNAUDITED)
Investment Banking & Equities Segment
Three Months Ended December 31, 2024
Twelve Months Ended December 31, 2024
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
849,556
$
31
(1)
$
849,587
$
2,440,605
$
1,073
(1)
$
2,441,678
Underwriting Fees
26,401
—
26,401
157,067
—
157,067
Commissions and Related Revenue
58,049
—
58,049
214,045
—
214,045
Other Revenue, net
19,970
4,193
(2)
24,163
86,772
17,426
(2)(3)
104,198
Net Revenues
953,976
4,224
958,200
2,898,489
18,499
2,916,988
Expenses:
Employee Compensation and Benefits
626,587
—
626,587
1,927,928
—
1,927,928
Non-Compensation Costs
119,309
—
119,309
456,257
—
456,257
Special Charges, Including Business Realignment Costs
—
—
—
7,305
(7,305
)
(6)
—
Total Expenses
745,896
—
745,896
2,391,490
(7,305
)
2,384,185
Operating Income (a)
$
208,080
$
4,224
$
212,304
$
506,999
$
25,804
$
532,803
Compensation Ratio (b)
65.7
%
65.4
%
66.5
%
66.1
%
Operating Margin (b)
21.8
%
22.2
%
17.5
%
18.3
%
Investment Management Segment
Three Months Ended December 31, 2024
Twelve Months Ended December 31, 2024
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted Basis
Net Revenues:
Asset Management and Administration Fees
$
21,096
$
946
(1)
$
22,042
$
79,550
$
5,158
(1)
$
84,708
Other Revenue, net
260
—
260
1,554
(615
)
(4)
939
Net Revenues
21,356
946
22,302
81,104
4,543
85,647
Expenses:
Employee Compensation and Benefits
12,799
—
12,799
46,108
—
46,108
Non-Compensation Costs
4,079
—
4,079
15,081
—
15,081
Total Expenses
16,878
—
16,878
61,189
—
61,189
Operating Income (a)
$
4,478
$
946
$
5,424
$
19,915
$
4,543
$
24,458
Compensation Ratio (b)
59.9
%
57.4
%
56.9
%
53.8
%
Operating Margin (b)
21.0
%
24.3
%
24.6
%
28.6
%
(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT AND CONSOLIDATED RESULTS
(dollars in thousands)
(UNAUDITED)
U.S. GAAP
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
Investment Banking & Equities
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
1,128,282
$
849,556
$
3,267,087
$
2,440,605
Underwriting Fees
49,456
26,401
179,647
157,067
Commissions and Related Revenue
66,487
58,049
242,685
214,045
Other Revenue, net
20,535
19,970
78,236
86,772
Net Revenues
1,264,760
953,976
3,767,655
2,898,489
Expenses:
Employee Compensation and Benefits
800,317
626,587
2,448,409
1,927,928
Non-Compensation Costs
159,932
119,309
548,304
456,257
Special Charges, Including Business Realignment Costs
—
—
—
7,305
Total Expenses
960,249
745,896
2,996,713
2,391,490
Operating Income (a)
$
304,511
$
208,080
$
770,942
$
506,999
Investment Management
Net Revenues:
Asset Management and Administration Fees
$
23,212
$
21,096
$
87,356
$
79,550
Other Revenue, net
305
260
809
1,554
Net Revenues
23,517
21,356
88,165
81,104
Expenses:
Employee Compensation and Benefits
11,429
12,799
52,425
46,108
Non-Compensation Costs
4,436
4,079
16,740
15,081
Total Expenses
15,865
16,878
69,165
61,189
Operating Income (a)
$
7,652
$
4,478
$
19,000
$
19,915
Total
Net Revenues:
Investment Banking & Equities:
Advisory Fees
$
1,128,282
$
849,556
$
3,267,087
$
2,440,605
Underwriting Fees
49,456
26,401
179,647
157,067
Commissions and Related Revenue
66,487
58,049
242,685
214,045
Asset Management and Administration Fees
23,212
21,096
87,356
79,550
Other Revenue, net
20,840
20,230
79,045
88,326
Net Revenues
1,288,277
975,332
3,855,820
2,979,593
Expenses:
Employee Compensation and Benefits
811,746
639,386
2,500,834
1,974,036
Non-Compensation Costs
164,368
123,388
565,044
471,338
Special Charges, Including Business Realignment Costs
—
—
—
7,305
Total Expenses
976,114
762,774
3,065,878
2,452,679
Operating Income (a)
$
312,163
$
212,558
$
789,942
$
526,914
(a) Operating Income excludes Income (Loss) from Equity Method Investments.
EVERCORE INC.
U.S. GAAP RECONCILIATION TO ADJUSTED NON-COMPENSATION COSTS
(dollars in thousands)
(UNAUDITED)
Three Months Ended December 31, 2025
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
28,609
$
—
$
28,609
Professional Fees
31,849
—
31,849
Travel and Related Expenses
26,364
—
26,364
Technology and Information Services
39,314
—
39,314
Depreciation and Amortization
12,275
(3,660
)
(7a)
8,615
Execution, Clearing and Custody Fees
3,011
—
3,011
Acquisition and Transition Costs
4,705
(4,705
)
(7b)
—
Other Operating Expenses
18,241
—
18,241
Total Non-Compensation Costs
$
164,368
$
(8,365
)
$
156,003
Three Months Ended December 31, 2024
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
24,121
$
—
$
24,121
Professional Fees(1)
27,710
—
27,710
Travel and Related Expenses
20,562
—
20,562
Technology and Information Services(1)
31,675
—
31,675
Depreciation and Amortization
5,840
—
5,840
Execution, Clearing and Custody Fees
3,473
—
3,473
Other Operating Expenses
10,007
—
10,007
Total Non-Compensation Costs
$
123,388
$
—
$
123,388
Twelve Months Ended December 31, 2025
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
108,784
$
—
$
108,784
Professional Fees
103,044
—
103,044
Travel and Related Expenses
95,612
—
95,612
Technology and Information Services
146,222
—
146,222
Depreciation and Amortization
32,557
(3,660
)
(7a)
28,897
Execution, Clearing and Custody Fees
12,499
—
12,499
Acquisition and Transition Costs
9,858
(9,858
)
(7b)
—
Other Operating Expenses
56,468
—
56,468
Total Non-Compensation Costs
$
565,044
$
(13,518
)
$
551,526
Twelve Months Ended December 31, 2024
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
90,953
$
—
$
90,953
Professional Fees(1)
96,205
—
96,205
Travel and Related Expenses
79,446
—
79,446
Technology and Information Services(1)
120,995
—
120,995
Depreciation and Amortization
24,468
—
24,468
Execution, Clearing and Custody Fees
13,211
—
13,211
Other Operating Expenses
46,060
—
46,060
Total Non-Compensation Costs
$
471,338
$
—
$
471,338
(1)
Certain balances in the prior period were reclassified to conform to their current presentation in this release. "Communications and Information Services" has been renamed to "Technology and Information Services" and technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." For the three and twelve months ended December 31, 2024, this resulted in a reclassification of $10.2 million and $39.5 million, respectively, from "Professional Fees" to "Technology and Information Services." There was no impact on previously reported U.S. GAAP or Adjusted Operating Income, Net Income or Earnings Per Share. See page A-3 for further information.
Notes to Unaudited Condensed Consolidated Adjusted Financial Data
For further information on these adjustments, see pages A-2 to A-3.
(1)
Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation.
(2)
Interest Expense on Debt, Lines of Credit and Other Financing Arrangements is excluded from Net Revenues and presented below Operating Income in the Adjusted results and is included in Interest Expense on a U.S. GAAP basis. The Adjusted results also reflect the reduction of interest expense accrued for deferred acquisition consideration issued in the acquisition of Robey Warshaw.
(3)
The release of cumulative foreign exchange losses in the third quarter of 2024 resulting from the redemption of the Company's interest in Luminis is excluded from the Adjusted presentation.
(4)
The gain on the sale of the remaining portion of the Company's interest in ABS in the third quarter of 2024 is excluded from the Adjusted presentation.
(5)
Expenses associated with awards granted in conjunction with the Company's acquisition of Robey Warshaw are excluded from the Adjusted presentation.
(6)
Expenses during 2024 that are excluded from the Adjusted presentation relate to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest.
(7)
Non-Compensation Costs on an Adjusted basis reflect the following adjustments:
(7a)
The exclusion from the Adjusted presentation of expenses associated with the amortization of intangible assets from the acquisition of Robey Warshaw.
(7b)
The exclusion from the Adjusted presentation of professional fees and certain other costs incurred related to the acquisition of Robey Warshaw and transfer taxes and professional fees incurred resulting from the Company's reorganization of businesses within the EMEA legal entity structure.
(8)
Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.
(9)
Reflects an adjustment to eliminate noncontrolling interest related to substantially all Evercore LP partnership units which are assumed to be converted to Class A common stock in the Adjusted presentation.
(10)
Assumes the exchange into Class A shares of substantially all Evercore LP Units and IPO related restricted stock unit awards in the Adjusted presentation. In the computation of outstanding common stock equivalents for U.S. GAAP net income per share, the Evercore LP Units are anti-dilutive.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260203418042/en/
Investor Contact:
Katy Haber
Head of Investor Relations & ESG
InvestorRelations@Evercore.com
Media Contacts:
Jamie Easton
Head of Communications & External Affairs
Communications@Evercore.com
Shree Dhond / Zach Kouwe
Dukas Linden Public Relations
Evercore@DLPR.com
(646) 722-6531
Original: Evercore Reports Record Fourth Quarter and Full Year 2025 Revenues; Quarterly Dividend of $0.84 Per Share
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