Evercore Reports Third Quarter 2025 Results; Quarterly Dividend of $0.84 Per Share

NEW YORK–(BUSINESS WIRE)–Evercore Inc. (NYSE: EVR):

Evercore Inc. (NYSE: EVR) today announced its results for the third quarter ended September 30, 2025.

LEADERSHIP COMMENTARY

John S. Weinberg, Chairman and Chief Executive Officer, “We continue to experience strong momentum across our businesses. We are optimistic about Evercore’s market position and remain focused on serving our clients as conditions evolve.”

Roger C. Altman, Founder and Senior Chairman, “We achieved record third quarter results, with over $1.0 billion in net revenues in the quarter, continuing the strong performance from the first half and reinforcing the strength of our growing, diversified 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-9 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.

Acquisition and Transition Costs have been excluded from Adjusted Net Income Attributable to Evercore Inc. These charges in 2025 relate to professional fees and certain other costs incurred related to the acquisition of Robey Warshaw.

Evercore’s Adjusted Diluted Shares Outstanding for the three and nine months ended September 30, 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 nine months ended September 30, 2024 are included in pages A-2 to A-9.

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-5 to A-7 for our business segment results.

Net Revenues

Advisory Fees – Third quarter Advisory Fees increased $290.7 million, or 49%, year-over-year, and year-to-date Advisory Fees increased $547.8 million, or 34%, year-over-year, primarily reflecting an increase in revenue earned from large transactions during 2025.

Underwriting Fees – Third quarter and year-to-date Underwriting Fees were flat year-over-year, reflecting a decrease in the number of transactions we participated in, offset by an increase in the average fee size of the transactions we participated in during 2025.

Commissions and Related Revenue – Third quarter Commissions and Related Revenue increased $8.3 million, or 15%, year-over-year, and year-to-date Commissions and Related Revenue increased $20.2 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 – Third quarter Asset Management and Administration Fees increased $1.9 million, or 9%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 11%, primarily from market appreciation as well as net inflows. Year-to-date Asset Management and Administration Fees increased $5.7 million, or 10%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 11%, primarily from market appreciation as well as net inflows.

Other Revenue – Third quarter Other Revenue, net, increased $4.2 million, or 19%, year-over-year, primarily reflecting higher performance of our investment funds portfolio, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by higher portfolio balances during the third quarter of 2025 compared to 2024. These increases were partially offset by an increase in interest expense primarily related to the issuance of new senior notes in July 2025. Year-to-date Other Revenue, net, decreased $9.9 million, or 15%, year-over-year, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by lower rates during 2025 compared to 2024. The decrease was also partially attributed to an increase in interest expense primarily related to the issuance of new senior notes in July 2025. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Expenses

Employee Compensation and Benefits – Third quarter Employee Compensation and Benefits increased $192.6 million, or 39%, year-over-year, reflecting a compensation ratio of 65.5% for the third quarter of 2025 versus 66.5% 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. Year-to-date Employee Compensation and Benefits increased $354.4 million, or 27%, year-over-year, reflecting a year-to-date compensation ratio of 65.8% versus 66.6% 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 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 – Third quarter Non-Compensation Costs increased $25.1 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 third 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 occupancy and equipment rental expense, primarily related to an increase in office space. The third quarter Non-Compensation ratio of 13.7% decreased from 15.9% 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. Year-to-date Non-Compensation Costs increased $52.7 million, or 15%, 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 year-to-date Non-Compensation ratio of 15.6% decreased from 17.4% 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.

Special Charges, Including Business Realignment Costs – Third quarter and year-to-date 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 third quarter effective tax rate was 27.5% versus 28.4% for the prior year period. The year-to-date effective tax rate was 13.0% versus 17.7% 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-9 for further information and reconciliations of these metrics to our U.S. GAAP results. See pages A-5 to A-7 for our business segment results.

Adjusted Net Revenues

See page 5 for additional business metrics.

Advisory Fees – Third quarter adjusted Advisory Fees increased $290.5 million, or 49%, year-over-year, and year-to-date adjusted Advisory Fees increased $546.7 million, or 34%, year-over-year, primarily reflecting an increase in revenue earned from large transactions during 2025.

Underwriting Fees – Third quarter and year-to-date Underwriting Fees were flat year-over-year, reflecting a decrease in the number of transactions we participated in, offset by an increase in the average fee size of the transactions we participated in during 2025.

Commissions and Related Revenue – Third quarter Commissions and Related Revenue increased $8.3 million, or 15%, year-over-year, and year-to-date Commissions and Related Revenue increased $20.2 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 – Third quarter adjusted 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 11%, primarily from market appreciation as well as net inflows. The increase was also driven by a 24% increase in equity in earnings of affiliates. Year-to-date adjusted Asset Management and Administration Fees increased $4.3 million, or 7%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 11%, primarily from market appreciation as well as net inflows. The increase was partially offset by a 34% 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 – Third quarter adjusted Other Revenue, net, increased $7.0 million, or 27%, year-over-year, primarily reflecting higher performance of our investment funds portfolio, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by higher portfolio balances during the third quarter of 2025 compared to 2024. Year-to-date adjusted Other Revenue, net, decreased $7.0 million, or 9%, year-over-year, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by lower rates during 2025 compared to 2024. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Adjusted Expenses

Employee Compensation and Benefits – Third quarter adjusted Employee Compensation and Benefits increased $192.6 million, or 39%, year-over-year, reflecting an adjusted compensation ratio of 65.0% for the third quarter of 2025 versus 66.0% 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. Year-to-date adjusted Employee Compensation and Benefits increased $354.4 million, or 27%, year-over-year, reflecting a year-to-date adjusted compensation ratio of 65.3% versus 66.0% 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 – Third quarter adjusted Non-Compensation Costs increased $21.6 million, or 18%, 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 third 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 occupancy and equipment rental expense, primarily related to an increase in office space. The third quarter adjusted Non-Compensation ratio of 13.2% decreased from 15.8% for the prior year period.

Contacts

Investor Contact:
Katy Haber

Head of Investor Relations & ESG

[email protected]

Media Contacts:
Jamie Easton

Head of Communications & External Affairs

[email protected]

Shree Dhond / Zach Kouwe

Dukas Linden Public Relations

[email protected]
(646) 722-6531

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