Lazard, Inc. Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026. Lazard, Inc. operates as a global financial advisory and asset management firm with two primary segments: Financial Advisory (M&A, restructuring, capital solutions) and Asset Management (equity, fixed income, alternative investments). The filing includes unaudited condensed consolidated financial statements and management discussion.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Net Revenue | $807.7 million | $796.0 million | $1,564.3 million | $1,444.0 million |
| Operating Income | $37.6 million | $93.1 million | $127.2 million | $147.7 million |
| Net Income Attributable to Lazard | $4.8 million | $55.3 million | $105.7 million | $115.7 million |
| Diluted EPS | $0.03 | $0.52 | $0.94 | $1.08 |
| Adjusted Operating Income | $65.2 million | $108.2 million | $118.9 million | $182.2 million |
| Cash and Cash Equivalents | $1,100 million | (Balance Sheet data) | ||
| Total Senior Debt | $1,689.5 million | (Carrying Value) |
Assets Under Management (AUM): Total AUM reached $284.7 billion as of June 30, 2026, a 12% increase from year-end 2025, driven by market appreciation and net inflows.
Material Changes vs. Prior Period
- Revenue Mix Shift: Financial Advisory fees decreased 9% ($45 million) in Q2 2026 compared to Q2 2025 due to lower M&A transaction fees. Conversely, Asset Management fees increased 22% ($59 million) driven by higher average AUM.
- Profitability Decline: Operating income dropped 60% year-over-year in Q2 2026. Adjusted operating income margin fell to 8.3% from 14.1% in the prior year quarter.
- Compensation Pressure: The ratio of adjusted compensation and benefits expense to adjusted net revenue increased to 69.9% in Q2 2026 from 65.5% in Q2 2025.
- One-Time Gain: The YTD 2026 results include a non-cash gain of $75.5 million from the sale and deconsolidation of the Edgewater management vehicles in Q1 2026.
- Acquisition Activity: The company incurred $11.2 million in expenses related to the pending acquisition of Campbell Lutyens Holdings Limited.
Guidance, Outlook, and Risks
- Outlook: Management notes that quarterly results fluctuate based on transaction timing and market performance. The firm continues to focus on revenue growth, cost discipline, and shareholder returns.
- Pending Acquisition: Lazard agreed to acquire Campbell Lutyens for an aggregate consideration of up to $660 million ($460M initial + $115M deferred + up to $85M earn-out). Closing is expected in H2 2026.
- Capital Return: On July 22, 2026, the Board declared a quarterly dividend of $0.50 per share and authorized an additional $200 million share repurchase program (total authorization ~$257 million).
- Risks: Key risks include adverse global economic conditions, volatility in M&A activity, foreign exchange fluctuations impacting AUM, and the impact of the pending Campbell Lutyens acquisition on integration and costs.
Investor Verification Checklist
- Edgewater Deconsolidation: Verify the impact of the $75.5 million non-cash gain on YTD earnings and the resulting change in segment reporting for Asset Management.
- Compensation Ratio: Monitor the trend of the adjusted compensation ratio (currently 69.9%) against revenue recovery in the Financial Advisory segment.
- Campbell Lutyens Deal: Track regulatory approval status and closing timeline for the Campbell Lutyens acquisition, including potential termination fees ($50 million).
- Share Repurchases: Confirm the execution of the new $200 million repurchase authorization authorized in July 2026.
- Effective Tax Rate: Review the volatility in the effective tax rate (63.5% in Q2 2026 vs. 34.1% in Q2 2025) driven by discrete tax items and geographic earnings mix.