What is Evercore's gross profit margin?

What were the key takeaways from Evercore’s earnings call?

What factors drove the changes in Evercore's revenue and profit?

Did Evercore beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Evercore next quarter?

What does Evercore do and what are its main business segments?

What is the revenue and EPS growth rate for Evercore year over year?

What were the key takeaways from Evercore's earnings call?

- **Record Financial Performance**: Q3 2025 saw $1 billion in net revenues (42% YoY growth), $228M operating income (69% YoY), and $3.48 EPS (71% YoY). Operating margin expanded to 21.8%.
- **Market Leadership**: Advised 4 of the 11 largest global M&A deals, with European advisory business at record levels. PCA and PFG businesses set new highs.
- **Talent Investment**: 168 SMDs (50% increase since 2021) and $624M returned to shareholders via buybacks/dividends. Compensation ratio improved to 65%.
- **Risks & Outlook**: Government shutdown could delay deals, but strong backlog and client activity suggest resilience. Non-M&A revenue now 45% of total, diversifying risk.


**【CEO Summary Section】**
- **Record Third Quarter Results**: Adjusted net revenues of $1 billion, up 42% YoY, with advisory fees at a record $884 million. Operating income reached $228 million, a 69% YoY increase.
- **Market Momentum**: U.S. M&A advisory revenue grew 49% YoY, driven by tech, infrastructure, and healthcare deals. European advisory business achieved its best quarter on record, with 4 of the 11 largest global M&A transactions advised.
- **Talent Expansion**: 168 investment banking SMDs, up nearly 50% since 2021, including 5 new SMDs from Robey Warshaw in Europe. Backlog and client activity remain robust across all regions.
- **Non-M&A Growth**: 45% of Q3 revenues from non-M&A sources, with PCA and PFG businesses setting records. Equity Capital Markets saw a resurgence in IPOs, and Evercore ISI ranked #1 in research survey.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $216 million, adjusted EPS of $3.48 (up 71% YoY). Operating margin improved to 21.8%, up 360 bps YoY. Compensation ratio at 65%, down 100 bps YoY, with non-comp expenses at 13.2% of net revenue.
- **Cash Position**: $2.4 billion in cash and investments, with $624 million returned to shareholders via buybacks and dividends. Share count reduced to offset dilution from RSU grants.
- **Outlook**: Expect continued momentum in Q4, though seasonal revenue growth may be less pronounced due to strong year-to-date results and potential government shutdown impacts.

**【Q&A Key Highlights】**
- **Regulatory Environment**: CEO John Weinberg noted optimism about regulatory easing, with deals moving through systems despite government shutdown concerns. Clients remain active, with no broad hesitation in dealmaking.
- **Talent and Compensation**: CFO Tim LaLonde emphasized strategic hiring (18 SMDs in 2025) driving long-term value, though incremental comp margin at 63% reflects investment in growth. A gradual return to historical comp ratios is expected over time.
- **Government Shutdown Risks**: Potential delays in regulatory approvals could slow M&A and ECM activity, but deals are expected to resume quickly post-resolution. Backlog remains strong across all businesses.
- **European Expansion**: Robey Warshaw integration enhances European coverage, with record Q3 results and pipeline strength in France, Scandinavia, and the U.K.


Evercore Inc. (EVR) Q3 2025 Earnings Call Transcript

Investment Banking

Asset Management and Administration Fees

Other

EVR

EVR fundamentals

You can ask Aime