Lazard Exceeds Q2 Revenue Expectations, AUM Down 3% YoY

Lazard's Q2 adjusted revenue reached $770 million, exceeding the consensus estimate of $706.54 million. The average assets under management (AUM) stood at $239 billion, a 3% decrease from the same quarter last year but a 3% increase from the previous quarter. The company recorded strong firm-wide performance, driven by record revenue in its Financial Advisory business and positive net flows in its Asset Management division.

Lazard Inc. (LAZ) reported its second-quarter 2025 earnings, surpassing analysts' expectations with adjusted earnings per share (EPS) of $0.52, beating the Zacks Consensus Estimate of $0.38 per share [1]. The company's adjusted revenue reached $770 million, exceeding the consensus estimate of $706.54 million [1]. The average assets under management (AUM) stood at $239 billion, a 3% decrease from the same quarter last year but a 3% increase from the previous quarter [2].

Lazard's strong firm-wide performance was driven by record revenue in its Financial Advisory business, which saw adjusted operating revenues of $491.4 million, up 20.4% year over year [2]. The company's asset management division also recorded positive net flows in the quarter, with net inflows of $677 million, contributing to a 2% increase in revenue to $292 million [2].

The company's net income (GAAP) was $55.3 million, a 10.9% increase from the prior-year quarter [2]. Operating revenues were $769.8 million, rising 12.4% year over year [2]. Operating expenses were $702.9 million, up 13.1% year over year [2]. The ratio of adjusted compensation expenses to operating revenues was 65.5, down from the year-earlier quarter’s 66 [2].

Lazard's balance sheet position remained strong, with cash and cash equivalents totaling $978.3 million as of June 30, 2025, up 7.7% from the prior quarter [2]. Stockholders’ equity was $786.5 million, up 21.3% sequentially [2].

The company's shares have added about 6.8% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [1]. The stock's immediate price movement will largely depend on management's commentary on the earnings call.

Lazard's future performance will be closely watched, with investors looking at the company's earnings outlook and the broader industry trends. The Zacks Rank for Lazard is currently #3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [1]. The company's strong performance in the second quarter suggests a promising outlook for the rest of the year.

References:
[1] https://finance.yahoo.com/news/lazard-laz-surpasses-q2-earnings-114002604.html
[2] https://sg.finance.yahoo.com/news/lazard-q2-earnings-top-estimates-160900350.html