PJT Partners Inc. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. PJT Partners Inc. is a global, advisory-focused investment bank operating as a single reportable segment. The company provides strategic advisory, restructuring, capital markets, and private capital solutions. It operates as a holding company with a controlling interest in PJT Partners Holdings LP, which holds the operating subsidiaries. As of March 31, 2026, non-controlling interests held a 35.3% economic interest in the partnership.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $418.2 million | $324.5 million |
| Net Income (Total) | $89.3 million | $74.2 million |
| Net Income Attributable to PJT Partners Inc. | $60.5 million | $54.0 million |
| Diluted EPS (Class A) | $2.21 | $1.99 |
| Cash and Cash Equivalents | $308.8 million | $194.3 million (Q1 2025 end) |
| Operating Cash Flow | $64.3 million | ($75.9 million) |
| Debt Outstanding | $0 | $0 |
Note: The company maintains a $100 million revolving credit facility with no borrowings outstanding as of March 31, 2026.
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 29% year-over-year, driven by higher activity in strategic advisory, private capital solutions, and restructuring.
- Expense Increases: Total expenses rose 24% to $337.8 million. Compensation and Benefits increased 27% ($59.1 million) due to higher revenues, partially offset by a lower accrual rate. Travel and Related expenses increased 21% due to higher business activity and costs.
- Tax Benefit: The company recorded a tax benefit of $8.9 million (effective rate -11.0%), compared to a $21.6 million benefit in Q1 2025. The reduced benefit was primarily due to the delivery of vested shares at values exceeding their amortized cost.
- Non-Controlling Interests: Net income attributable to non-controlling interests increased 43% to $28.8 million.
- Accounting Presentation: Beginning in Q1 2026, the company no longer separately presents advisory fees and placement fees, consolidating them into a single revenue line to better reflect its integrated service model.
Outlook, Risks, and Unusual Items
- Share Repurchase Program: On April 28, 2026, the Board authorized a new $800 million share repurchase program, replacing the previous $500 million authorization. During Q1 2026, the company repurchased 0.4 million shares for $61.3 million.
- Dividends: A quarterly dividend of $0.25 per share was declared, payable June 17, 2026.
- Partnership Unit Exchanges: Holders exchanged 0.9 million Partnership Units for cash totaling $136.0 million in Q1 2026, compared to $57.3 million in Q1 2025.
- Market Environment: Management notes that while global M&A volumes increased 27% in Q1 2026, the number of transactions declined to an 11-year low. Restructuring activity remains strong due to liability management and balance sheet restructuring needs.
- Risks: Key risks include macroeconomic volatility, geopolitical conflicts, cyber attacks, and the cyclical nature of M&A and capital markets. The company faces potential liquidity impacts from large incentive compensation payments typically made in Q1 and Q4.
Investor Verification Checklist
- Verify the sustainability of the 29% revenue growth given the noted decline in the total number of M&A transactions.
- Monitor the impact of the new $800 million share repurchase program on future cash flows and liquidity.
- Review the timing and magnitude of Partnership Unit exchanges, which resulted in a $136 million cash outflow in Q1 2026.
- Assess the company's exposure to long-term receivables ($110.9 million), which are paid in installments over 3-4 years.
- Confirm compliance with the $100 million credit facility covenants, specifically the Minimum Consolidated Tangible Net Worth of $300 million.