EVR 10-K & 10-Q changes, risk factors and insider trading
Evercore Inc. · NYSE · Investment Advice · CIK 1360901 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
We may expand our various businesses through additional acquisitions, entering into joint ventures and strategic alliances, and internally developing new opportunities that are complementary to our existing businesses and where we think we can add substantial value or generate substantial returns. For example, in 2025, we completed the acquisition of Robey Warshaw, an independent advisory firm headquartered in the United Kingdom. The success of this strategy will depend on, among other things, the availability of suitable opportunities and capital resources to effect our strategy; the level of competition from other companies that may have greater financial resources than we do or may not require the same level of disclosure of these activities; our ability to value acquisition and investment candidates accurately and negotiate acceptable terms for those acquisitions and investments; and our ability to identify and enter into mutually beneficial relationships with joint venture partners.see in full comparison
Full comparison: every changed paragraph (4)
As a financial services firm, our businesses are materially affected by conditions in the financial markets and economic conditions in the U.S. and throughout the world. Financial markets and economic conditions can be negatively impacted by many factors beyond our control, such as the inability to access credit markets, rising interest rates or inflation, the imposition or threatened imposition of tariffs, terrorism, political uncertainty, supply chain disruptions, uncertainty in the federal fiscal or monetary policy of U.S. or foreign governments, an evolving regulatory environment (and the timing and nature of regulatory reform), climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflicts or other geopolitical events. Unfavorable market or economic conditions, as well as volatility in the financial markets, can materially reduce the demand for our services and present challenges.
In addition, as we operate in a financial services industry, we are susceptible to attempts to gain unauthorized access of client, customer or other confidential information. We are also at risk for denial-of-service, distributed denial-of-service and/or other cyber-attacks involving the theft, dissemination and destruction of corporate information or other assets, which could result from an employee's, contractor's or other third party vendor's failure to follow data security procedures or as a result of actions by third parties, including actions by governments. These risks may be exacerbated by the use of artificial intelligence. Phishing attacks and email spoofing attacks are becoming more prevalent and are often used to obtain information to impersonate employees or clients in order to, among other things, direct fraudulent bank transfers or obtain valuable information. Fraudulent transfers resulting from phishing attacks or email spoofing of our employees could result in a material loss of assets, reputational harm or legal liability, and in turn materially adversely affect our business. Although cyber-attacks have not, to date, had a material impact on our operations, breaches of our, or third-party, network security systems on which we rely could involve attacks that are intended to obtain unauthorized access to and disclose our proprietary information or our client's proprietary information, destroy data or disable, degrade or sabotage our systems, often through the introduction of computer viruses, cyber-attacks and other means, and could originate from a wide variety of sources, including state actors or other unknown third parties outside the firm.
We may expand our various businesses through additional acquisitions, entering into joint ventures and strategic alliances, and internally developing new opportunities that are complementary to our existing businesses and where we think we can add substantial value or generate substantial returns. For example, in 2025, we completed the acquisition of Robey Warshaw, an independent advisory firm headquartered in the United Kingdom. The success of this strategy will depend on, among other things, the availability of suitable opportunities and capital resources to effect our strategy; the level of competition from other companies that may have greater financial resources than we do or may not require the same level of disclosure of these activities; our ability to value acquisition and investment candidates accurately and negotiate acceptable terms for those acquisitions and investments; and our ability to identify and enter into mutually beneficial relationships with joint venture partners.
In 2024,2025, we earned 24% of our Total Revenues, excluding Other Revenue, and 25%24% of our Investment Banking & Equities Revenues from clients located outside of the United States. Generally, we intend to grow our non-U.S. business, and this growth is critical to our overall success. Many of our large Investment Banking & Equities clients are non-U.S. entities seeking to enter into transactions involving U.S. businesses. Our international operations carry special financial and business risks, which could include, but are not limited to, greater difficulties managing and staffing foreign operations; language and cultural differences; fluctuations in foreign currency exchange rates that could adversely affect our results; unexpected and costly changes in tariff and trading policies, regulatory requirements, tariffs and other barriers; restrictions on travel; greater difficulties in collecting accounts receivable; longer transaction cycles; higher operating costs; local labor conditions and regulations; adverse consequences or restrictions on the repatriation of earnings; potentially adverse tax consequences, such as trapped foreign losses; less stable political and economic environments; civil disturbances or other catastrophic events that reduce business activity; disasters or other business continuity problems, such as pandemics, other man-made or natural disaster or disruption involving electronic communications or other services; and international trade issues.
Management's Discussion & Analysis (MD&A)
Removed heading “Noncontrolling Interest Purchases”
Largest changes
“Non-compensation expenses were $565.0 million in 2025, an increase of $93.7 million, or 20%, versus $471.3 million in 2024. The increase was 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. …”see in full comparison
see in full comparisonElevated interest ratesGeopolitical andheightenedmacroeconomicgeopoliticaluncertaintytensions,remainincluding escalating military tensionspresent andevolving regulatory and banking environments,havecontributedled toanmarketelongationvolatility.ofThese evolving conditions may impact the transaction environment in the near to medium term and/or impact the timing of transactionclosingsclosings.in 2024. While the environment is gradually improving, weWe will continue to assess the potential ongoing impacts of these factors, including the regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and our other contractual obligations. See "Results of Operations" above for further information.
As a financial services firm, our businesses are materially affected by conditions in the global financial markets and economic conditions throughout the world. Revenue generated by our advisory activities is related to the number and value of the transactions in which we are involved. In addition, revenue related to our equities business is driven by market volumes and institutional investor trends, such as the trend to passive investment strategies. During periods of unfavorable market or economic conditions - which may result from the current or anticipated impact of tariffs and inflation, changes in the level of interest rates, changes in the availability of financing, supply chain disruptions, an evolving regulatory environment, climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, including escalating international tensions, terrorism or other geopolitical events - the number and value of M&A transactions, as well assee in full comparisonmarketissuance volumes inequities,capital markets, generally decrease, and they generally increase during periods of favorable market or economic conditions. Restructuring activity generally is counter-cyclical to M&A activity. In addition, during periods of unfavorable market conditions our Investment Management business may be impacted by reduced equity valuations and generate relatively lower revenue because fees we receive, either directly or through our affiliates, typically are in part based on the market value of underlying publicly-traded securities. Our profitability may also be adversely affected by our fixed costs and the possibility that we would be unable to scale back other costs within a time frame, and in an amount sufficient, to match any decreases in revenue relating to changes in market and economic conditions. Likewise, our liquidity may be adversely impacted by our contractual obligations, including leaseobligations.obligations and obligations to pay principal and interest on our Notes Payable. Reduced equity valuations resulting from future adverse economic events and/or market conditions may impact our performance and may result in future net redemptions of AUM from our Investment Management clients, which would generally result in lower revenues and cash flows. These adverse conditions could also have an impact on our goodwill impairment assessment, which is done annually, as of November 30th, or more frequently if circumstances indicate impairment may have occurred.
“2025. Cash, Cash Equivalents and Restricted Cash were $1.4 billion at December 31, 2025, an increase of $554.0 million versus Cash, Cash Equivalents and Restricted Cash of $882.1 million at December 31, 2024. Operating activities resulted in a net inflow of $1.3 billion, primarily related to earnings. …”see in full comparison
On August 1, 2019, we issued $175.0 million and £25.0 million of senior unsecured notes through private placement.see in full comparisonThese notes reflect a weighted average life of 12 years and a weighted average stated interest rate of 4.26%.These notes include: $75.0 million aggregate principal amount of our 4.34% Series E senior notes due August 1, 2029 (the "Series E Notes"), $60.0 million aggregate principal amount of our 4.44% Series F senior notes due August 1, 2031 (the "Series F Notes"), $40.0 million aggregate principal amount of our 4.54% Series G senior notes due August 1, 2033 (the "Series G Notes") and £25.0 million aggregate principal amount of our 3.33% Series H senior notes due August 1, 2033 (the "Series H Notes" and together with the Series E Notes, the Series F Notes and the Series G Notes, the "2019 Private Placement Notes"), each of which were issued pursuant tothea2019noteNotepurchasePurchase Agreementagreement dated as of August 1, 2019 (the "2019 Note Purchase Agreement"),and amended on July 10, 2025, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
Full comparison: every changed paragraph (84)
•GainsA gain on the sale of the remaining portion of our interestsinterest in ABS inInvestment 2024Management Holdings LP and 2022.ABS Investment Management GP LLC (collectively, "ABS") in 2024. See Note 10 to our consolidated financial statements for further information
•Adjustments to amounts due pursuant to our tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates Interest Expense includes interest expense associated with our Notes Payable andPayable, lines of credit.credit and other financing arrangements, including interest expense related to deferred acquisition consideration and mandatorily redeemable interests.
We maintain compensation programs, including base salary, cash, deferred cash and equity bonus awards and benefits programs and manage compensation to estimates of competitive levels based on market conditions and performance. Our level of compensation, including deferred compensation, reflects our plan to maintain competitive compensation levels to retain and attract key personnel, and it reflects the impact of newly-hired senior professionals upon their start date, including related grants of equity and other awards, which are generally valued at their grant date and recorded in employee compensation and benefits expense over the requisite service period.
In January 2022, 2023 and 2024, our Board of Directors approved the issuance of Class L Interests of Evercore LP ("Class L Interests") to certain of our named executive officers, pursuant to which the named executive officers receive a discretionary distribution of profits from Evercore LP, paid in the first quarters of 2023, 2024 and 2025, respectively. Distributions pursuant to these interests are made in lieu of any cash incentive compensation payments which may otherwise have been made to our named executive officers in respect of their service for 2022, 2023 and 2024, respectively. Following the distributions, the Class L Interests are cancelled pursuant to their terms. We record expense equal to the amount of these distributions in Employee Compensation and Benefits on the Consolidated Statements of Operations and reflect accrued liabilities related to these distributions in Accrued Compensation and Benefits on the Consolidated Statements of Financial Condition.
In January 2023, 2024 and 2025, our Board of Directors approved the issuance of Class L Interests of Evercore LP ("Class L Interests") to certain of our named executive officers, pursuant to which thethose named executive officers may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarterquarters of 2026.2024, Distributions2025 pursuantand to2026, these interests are anticipated to be made in lieu of any cash incentive compensation payments which may otherwise have been made to our named executive officers in respect of their service for 2025.respectively.
Distributions pursuant to these interests are made in lieu of any cash incentive compensation payments which may otherwise have been made to our named executive officers in respect of their service for 2023, 2024 and 2025, respectively. Following the distributions, the Class L Interests are cancelled pursuant to their terms. We record expense equal to the amount of these distributions in Employee Compensation and Benefits on the Consolidated Statements of Operations and reflect accrued liabilities related to these distributions in Accrued Compensation and Benefits on the Consolidated Statements of Financial Condition.
In January 2026, our Board of Directors approved the issuance of Class L Interests to certain of our named executive officers, pursuant to which those named executive officers may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2027. Distributions pursuant to these interests are anticipated to be made in lieu of any cash incentive compensation payments which may otherwise have been made to our named executive officers in respect of their service for 2026.
Our Long-term Incentive Plans provide for incentive compensation awards for Investment Banking Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (the "2017 Long-term Incentive Plan"), which ended on December 31, 2020) and January 1, 2021 (the "2021 Long-term Incentive Plan",) whichand endedJanuary on1, December2025 31,(the 2024"2025 Long-term Incentive Plan"). The vestingperformance period for the 2017 Long-term Incentive Plan ended on MarchDecember 15,31, 20232020 and in conjunction with this plan we made cash distributions in 2023, 2022 and 2021.2021 Amountsand accruedthe pursuantperformance toperiod for the 2021 Long-term Incentive Plan mayended on December 31, 2024 and in conjunction with this plan we made a cash distribution in 2025. Remaining amounts due pursuant to these plans are due to be paid,paid in cash or Class A Shares, at our discretion, in the first quarter of 2025, 2026 and 2027, for the 2021 Long-term Incentive Plan, and in the first quarter of 2029, 2030 and 2031, for the 2025 Long-term Incentive Plan, subject to employment at the time of payment. We periodically assess the probability of the benchmarks being achieved and expense the probable payout over the requisite service period of the award.
We intend to issue a new Long-term Incentive Plan in 2025.
From time to time, we also grant incentive awards to certain individuals which include both performance and service-based vesting requirements and, in certain awards, market-based requirements. These include Class I-P Units of Evercore LP ("Class I-P Units"), Class K-P Units ofissued by Evercore LP ("Class K-P Units") and, certain RSU awards.and Indeferred Marchcash 2022,awards, as well as awards issued in conjunction with the Classacquisition I-Pof UnitsRobey convertedWarshaw toin Class I LP Units.2025. See Note 18 to our consolidated financial statements for further information.
Non-Compensation. Our Non-Compensation expenses include costs for occupancy and equipment rental, professional fees, travel and related expenses, communicationstechnology and information technology services, depreciation and amortization, execution, clearing and custody feesfees, acquisition and transition costs and other operating expenses.
•2022 – Expenses related to charges associated with the prepayment of our 5.23% Series B senior notes originally due March 30, 2023 (the "Series B Notes"), as well as certain professional fees, separation benefits and other charges related to the wind-down of our operations in Mexico
Our share of the income (loss) from our equity interests in Atalanta Sosnoff,Sosnoff and Seneca Evercore, and our former equity interests in ABS (through July 2024) and Luminis (through September 2024) are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Consolidated Statements of Operations. See Note 10 to our consolidated financial statements for further information.
(A)Includes the reclassification of $39.5 million and $35.1 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" for the years ended December 31, 2024 and 2023, respectively, to conform to the current presentation. See Note 2 to our consolidated financial statements for further information.
Net Revenues were $2.98$3.86 billion in 2024,2025, an increase of $553.6$876.2 million, or 23%,29%, versus Net Revenues of $2.43$2.98 billion in 2023.2024. Advisory Fees increased $476.7$826.5 million, or 24%, Underwriting Fees increased $46.1 million, or 41%, and34%, Commissions and Related Revenue increased $11.3$28.6 million, or 6%,13%, and Underwriting Fees increased $22.6 million, or 14%, compared to 2023.2024. Asset Management and Administration Fees increased $12.5$7.8 million, or 19%,10%, compared to 2023.2024. See "Business Segments" and "Liquidity and Capital Resources" below for further information.
Other Revenue, Including Interest and Investments, was $103.3 million in 2025, a decrease of $1.8 million, or 2%, versus $105.1 million in 2024, an increase of $7.1 million, or 7%, versus $98.0 million in 2023, primarily reflecting higher interest income, as well as higherlower performance of our investment funds portfolio. The decrease was partially offset by higher interest income resulting from higher average balances in interest-bearing assets. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Interest Expense was $24.3 million in 2025, an increase of $7.5 million, or 45%, versus $16.8 million in 2024, reflecting the issuance of new senior notes in July 2025. See Note 13 to our consolidated financial statements for further information.
Employee Compensation and Benefits Expense was $1.97$2.50 billion in 2024,2025, an increase of $317.2$526.8 million, or 19%,27%, versus $1.66$1.97 billion in 2023.2024. The increase in the amount of compensation recognized in 20242025 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation expenseawards. relatedThe increase in 2025 also reflects compensation resulting from consideration awarded to seniorthe newsellers hires.as As a resultpart of the factorsacquisition notedof above,Robey Warshaw. Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.3%64.9% in 2024,2025, compared to 68.3%66.3% in 2023.2024. Employee Compensation and Benefits Expense as a percentage of Net Revenues was impacted by the factors above, as well as higher net revenues during the current year period compared to the prior year period.
Non-compensation expenses were $565.0 million in 2025, an increase of $93.7 million, or 20%, versus $471.3 million in 2024. The increase was 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. Non-compensation expenses in 2025 were also impacted by Acquisition and Transition Costs resulting from the acquisition of Robey Warshaw and our reorganization of businesses within the Europe, Middle East and Africa ("EMEA") legal entity structure. See Note 6 to our consolidated financial statements for further information. Non-Compensation expenses per employee were approximately $229.3 thousand for 2025, versus $204.5 thousand for 2024, a 12% increase.
Non-compensation expenses were $471.3 million in 2024, an increase of $64.3 million, or 16%, versus $407.0 million in 2023. The increase was primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in communications and information services, principally reflecting higher expenses associated with license fees and research services in 2024. The increase was also driven by an increase in occupancy and rental expense, primarily related to an increase in office space in New York. Non-Compensation expenses per employee were approximately $204.5 thousand for 2024, versus $186.3 thousand for 2023, a 10% increase.
Special Charges, Including Business Realignment Costs, of $7.3 million in 2024 related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest. See Note 10 to our consolidated financial statements for further information. Special Charges, Including Business Realignment Costs, of $2.9 million in 2023 related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.
Income from Equity Method Investments was $3.9 million in 2025, a decrease of $2.4 million, or 38%, versus $6.2 million in 2024, a decrease of $0.4 million, or 6%, versus $6.7 million in 2023,primarily reflecting the sale of the remaining portion of our interest in ABS and the redemption of our interest in Luminis in 2024. This decrease was partially offset by higher earnings from Atalanta Sosnoff, Luminis and Seneca EvercoreSosnoff in 2024.2025. See Note 10 to our consolidated financial statements for further information.
The provision for income taxes in 2025 was $153.1 million, which reflected an effective tax rate of 19.3%. The provision for income taxes in 2024 was $115.4 million, which reflected an effective tax rate of 21.6%. The provision for income taxes in 2023 was $80.6 million, which reflected an effective tax rate of 22.0%. The provision for income taxes in 20242025 and 20232024 principally reflects the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $35.1$78.5 million and $13.7$35.1 million, respectively, which resulted in a reduction in the effective tax rate of 6.69.9 and 3.76.6 percentage points in 20242025 and 2023,2024, respectively. This resulting decrease in effective tax rate was partially offset by an increase in non-deductible expenses and state and local apportionment adjustments.adjustments in 2025.
Net Income Attributable to Noncontrolling Interest was $48.8 million in 2025, compared to $39.5 million in 2024, compared to $29.7 million in 2023.2024. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at both Evercore LP and EWM in 2024.2025. See Note 16 to our consolidated financial statements for further information.
(1)Includes interest expense on Notes Payable andPayable, lines of credit and other financing arrangements, including interest expense related to deferred acquisition consideration and mandatorily redeemable interests, all of $16.8which total $24.3 million, $16.7$16.8 million and $16.9$16.7 million for the years ended December 31, 2024,2025, 20232024 and 2022,2023, respectively.
(A)Includes the reclassification of $38.5 million and $34.1 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Banking & Equities segment for the years ended December 31, 2024 and 2023, respectively, to conform to the current presentation. See Notes 2 and 23 to our consolidated financial statements for further information.
Net Revenues were $3.77 billion in 2025, an increase of $869.2 million, or 30%, versus $2.90 billion in 2024, an increase of $542.5 million, or 23%, versus $2.36 billion in 2023.2024. The increase in revenues from 20232024 was primarily driven by an increase of $476.7$826.5 million, or 24%,34%, in Advisory Fees, primarily reflecting an increase in revenue during 2025 across both M&A and non-M&A assignments, an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 20242025. across both M&ACommissions and non-M&ARelated assignments.Revenue increased $28.6 million, or 13%, compared to 2024, primarily reflecting higher trading commissions driven by increased trading volume and higher subscription fees during 2025. Underwriting Fees increased $46.1$22.6 million, or 41%,14%, compared to 2023,2024, reflecting an increase in the numberaverage fee size of the transactions we participated in during 2024. Commissions and Related Revenue increased $11.3 million, or 6%, compared to 2023, primarily reflecting higher trading commissions and subscription fees.2025. Other Revenue, net, increaseddecreased $8.5 million, or 11%,10%, compared to 2023,2024, primarily reflecting higher interest income, as well as higherlower performance of our investment funds portfolio.portfolio and an increase in interest expense related to the issuance of new senior notes in July 2025. These decreases were partially offset by higher interest income resulting from higher average balances in interest-bearing assets. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Employee Compensation and Benefits Expense was $1.93$2.45 billion in 2024,2025, an increase of $310.5$520.5 million, or 19%,27%, versus $1.62$1.93 billion in 2023.2024. The increase in the amount of compensation recognized in 20242025 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation expenseawards. relatedThe increase in 2025 also reflects compensation resulting from consideration awarded to seniorthe newsellers hires.as part of the acquisition of Robey Warshaw.
Non-compensation expenses were $548.3 million in 2025, an increase of $92.0 million, or 20%, versus $456.3 million in 2024. Non-compensation expenses increased from the prior 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. Non-compensation expenses in 2025 were also impacted by Acquisition and Transition Costs resulting from the acquisition of Robey Warshaw and our reorganization of businesses within the EMEA legal entity structure. See Note 6 to our consolidated financial statements for further information.
Non-compensation expenses were $456.3 million in 2024, an increase of $62.9 million, or 16%, versus $393.3 million in 2023. Non-compensation expenses increased from the prior year, primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in communications and information services, principally reflecting higher expenses associated with license fees and research services in 2024.
Special Charges, Including Business Realignment Costs, of $7.3 million in 2024 related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest. See Note 10 to our consolidated financial statements for further information. Special Charges, Including Business Realignment Costs, of $2.9 million in 2023 related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.
Income from Equity Method Investments was $0.01 million in 2025, a decrease of $1.1 million versus $1.1 million in 2024, reflecting lower income from Luminis following the redemption of our interest in 2024 and lower earnings from Seneca Evercore during 2025. See Note 10 to our consolidated financial statements for further information.
(1)Includes gainsa gain of $0.6 million and $1.3 million for the yearsyear ended December 31, 2024 and 2022, respectively,2024, resulting from the sale of the remaining portion of our interestsinterest in ABS.
(A)Includes the reclassification of $1.0 million and $0.9 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Management segment for the years ended December 31, 2024 and 2023, respectively, to conform to the current presentation. See Notes 2 and 23 to our consolidated financial statements for further information.
•Private Equity – conducted through our investment interests in private equity funds. We maintain a limited partner's interest in Glisco Partners II, L.P. ("Glisco II"), Glisco Partners III, L.P. ("Glisco III") and Glisco Capital Partners IV, L.P. ("Glisco IV", and together with Glisco II and Glisco III, the "Glisco Funds"), as well as Glisco Manager Holdings LP and the general partners of the Glisco Funds. We receive our portion of the management fees earned by Glisco Partners Inc. ("Glisco") from Glisco Manager Holdings LP. We are passive investors and do not participate in the management of any Glisco sponsored funds. We are also passive investors in Trilantic Capital Partners Associates IV, L.P. (through December 2025) and Trilantic Capital Partners V, L.P. In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed. As of December 31, 2024,2025, there was no previously distributed carried interest received from the funds subject to repayment.
•We also hold interestsan interest in Atalanta Sosnoff and ABS (through July 2024) that areis accounted for under the equity method of accounting.accounting and previously held an interest in ABS (through July 2024). The results of these investments are included within Income from Equity Method Investments. During 2024 and 2022,2024, we sold the remaining portion of our interestsinterest in ABS. See Note 10 to our consolidated financial statements for further information.
In 2024,2025, AUM for Wealth Management increased 13%,12%, reflecting ana 11%10% increase due tofrom market appreciation and a 2% increase duefrom tonet flows.inflows. Performance foras 2024of December 31, 2025 reflected:
•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 11%7% and 5%, respectively ◦The S&P 500 was up approximately 18% and 23% on a 1 and 3-year basis, respectively
•Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 0.5%, respectively
•TheWealth S&PManagement 500 was up approximately 25% andlagged the fixed income composite wason downa 1-year basis by approximately 0.2%0.5% and outperformed the fixed income composite on a 3-year basis by approximately 0.3% ◦The fixed income composite was up approximately 5% and 3% on a 1 and 3-year basis, respectively In 2023,2024, AUM for Wealth Management increased 16%, primarily13%, reflecting an 11% increase due to market appreciation.appreciation and a 2% increase due to net inflows. Performance foras 2023of December 31, 2024 reflected:
•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 11% and 5%, respectively ◦The S&P 500 was up approximately 25% and 9% on a 1 and 3-year basis, respectively
•Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 0.5%, respectively ◦The fixed income composite was down approximately 0.2% and 0.5% on a 1 and 3-year basis, respectively AUM from our unconsolidated affiliate, Atalanta Sosnoff, increased 12% compared to December 31, 2024.
•Wealth Management outperformed the S&P 500 on a 1-year basis by approximately 2% and lagged the S&P 500 on a 3-year basis by approximately 1%
•Wealth Management lagged the fixed income composite on a 1-year basis by approximately 0.1% and outperformed the fixed income composite on a 3-year basis by approximately 0.1%
•The S&P 500 and fixed income composite were up approximately 26% and 4%, respectively, compared to the prior year AUM from our unconsolidated affiliates decreased 41% compared to December 31, 2023, reflecting the sale of our remaining interest in ABS during 2024. This decrease was partially offset by an increase in Atalanta Sosnoff, which increased 14% compared to December 31, 2023.
Net Revenues were $88.2 million in 2025, an increase of $7.1 million, or 9%, versus $81.1 million in 2024, an increase of $11.1 million, or 16%, versus $70.0 million in 2023.2024. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $12.5$7.8 million, or 19%,10%, fromcompared 2023,to 2024, as associated AUM increased 13%,12%, primarily from market appreciation.appreciation as well as net inflows.
Employee Compensation and Benefits Expense was $52.4 million in 2025, an increase of $6.3 million, or 14%, versus $46.1 million in 2024, an increase of $6.7 million, or 17%, versus $39.4 million in 2023, primarily reflecting higher base salaries and a higher accrual for incentive compensation.compensation, resulting from higher headcount.
Non-Compensation expenses were $16.7 million in 2025, an increase of $1.7 million, or 11%, versus $15.1 million in 2024, an increase of $1.4 million, or 10%, versus $13.7 million in 2023, primarily driven by an increase in professional fees and communicationstechnology and information services,services as well as an increase inand travel and related expenses in 2024.expenses.
Income from Equity Method Investments decreasedwas $0.9$3.9 million in 2025, a decrease of $1.3 million, or 15%,25%, fromversus 2023,$5.2 drivenmillion byin 2024, primarily reflecting the sale of the remaining portion of our interest in ABS in 2024. This decrease was partially offset by higher earnings from Atalanta Sosnoff in 2024.2025. See Note 10 to our consolidated financial statements for further information.
Our operating cash flows are primarily influenced by the timing and receipt of fees and the payment of operating expenses, including incentive compensation to our employees and interest expense on our Notes Payable andPayable, lines of credit,credit and other financing arrangements, and the payment of income taxes. Advisory and Underwriting fees are generally collected within 90 days of invoice. Placement fees are generally collected within 180 days of invoice and a portion of certain fees primarily related to private funds capital raising and the private capital businesses may be collected in a period exceeding one year. Commissions earned from our agency trading activities are generally received from our clearing broker within 11 days. Fees from our Wealth Management business are generally invoiced and collected within 90 days. We traditionally pay a substantial portion of incentive compensation during the first three months of each calendar year with respect to the prior year's results and prior years' deferred compensation. Likewise, payments to fund investments related to hedging our deferred cash compensation plans are generally funded in the first three months of each calendar year. Our investing and financing cash flows are primarily influenced by activities to invest our cash in highly liquid securities or bank certificates of deposit, deploy capital to fund investments and acquisitions, raise capital through the issuance of stock or debt, repurchase of outstanding Class A Shares (including for the net settlement of RSUs), and/or noncontrolling interest in Evercore LP, as well as our other subsidiaries, payment of dividends anddividends, other periodic distributions to our stakeholders.stakeholders and to raise capital through the issuance of stock or debt. We generally make dividend payments and other distributions on a quarterly basis. If required, we may periodically draw down on our lines of credit to balance the timing of our operating, investing and financing cash flow needs. A summary of our operating, investing and financing cash flows is as follows:
2025. Cash, Cash Equivalents and Restricted Cash were $1.4 billion at December 31, 2025, an increase of $554.0 million versus Cash, Cash Equivalents and Restricted Cash of $882.1 million at December 31, 2024. Operating activities resulted in a net inflow of $1.3 billion, primarily related to earnings. Cash of $98.3 million was used by investing activities, primarily related to purchases of furniture, equipment and leasehold improvements and net purchases of investment securities, partially offset by net proceeds from maturities of certificates of deposit and net cash acquired from the acquisition of Robey Warshaw. See Note 5 to our consolidated financial statements for further information. Financing activities during the period used cash of $635.6 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, the payment of dividends, the $38.0 million repayment of our 1.97% Series I senior notes which were due August 1, 2025 (the "Series I Notes" or the "2021 Private Placement Notes") and distributions made to noncontrolling interest holders, partially offset by the $250.0 million issuance of our $125.0 million aggregate principal amount of our 5.17% Series K senior notes due July 24, 2030 (the "Series K Notes") and $125.0 million aggregate principal amount of our 5.47% Series L senior notes due July 24, 2032 (the "Series L Notes" and together with the Series K Notes, the "2025 Private Placement Notes"). Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.
2023. Cash, Cash Equivalents and Restricted Cash were $605.5 million at December 31, 2023, a decrease of $66.6 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022. Operating activities resulted in a net inflow of $458.0 million, primarily related to earnings, partially offset by the payment of 2022 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Consolidated Statements of Financial Condition as of December 31, 2023. Cash of $15.6 million was provided by investing activities, primarily related to net proceeds from maturities of certificates of deposit, partially offset by net purchases of investment securities and equipment and leasehold improvements. Financing activities during the period used cash of $557.2 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, the payment of dividends and distributions made to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.
We regularly monitor our liquidity position, including cash, other significant working capital, current assets and liabilities, long-term liabilities, lease commitments and related fixed assets, principal investment commitments related to our Investment Management business, dividends on Class A Shares, partnership distributions and other capital transactions, as well as other matters relating to liquidity and compliance with capital requirements and restrictions of our regulated legal entities. Our liquidity is highly dependent on our revenue stream from our operations, principally from our Investment Banking & Equities segment, which is primarily a function of closing client transactions and earning success fees, the timing and realization of which is irregular and dependent upon factors that are not subject to our control. Our revenue stream funds the payment of our expenses, including annual bonus payments, a portion of which are guaranteed, deferred compensation arrangements, interest expense on our Notes Payable, lines of credit and other financing arrangements, as well as payments for income taxes. Payments made for income taxes may be reduced by deductions taken for the increase in tax basis of our investment in Evercore LP. Certain of these tax deductions, when realized, require payment under our long-term liability, Amounts Due Pursuant to Tax Receivable Agreements. We intend to fund these payments from cash and cash equivalents on hand, principally derived from cash flows from operations. These tax deductions, when realized, will result in cash otherwise required to satisfy tax obligations becoming available for other purposes. Our Management Committee meets regularly to monitor our liquidity and cash positions against our short and long-term obligations, as well as our capital requirements and commitments, including deferred compensation arrangements. The result of this review contributes to management's recommendation to the Board of Directors as to the level of quarterly dividend payments, if any.any, as well as the level of long-term borrowings required.
As a financial services firm, our businesses are materially affected by conditions in the global financial markets and economic conditions throughout the world. Revenue generated by our advisory activities is related to the number and value of the transactions in which we are involved. In addition, revenue related to our equities business is driven by market volumes and institutional investor trends, such as the trend to passive investment strategies. During periods of unfavorable market or economic conditions - which may result from the current or anticipated impact of tariffs and inflation, changes in the level of interest rates, changes in the availability of financing, supply chain disruptions, an evolving regulatory environment, climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, including escalating international tensions, terrorism or other geopolitical events - the number and value of M&A transactions, as well as marketissuance volumes in equities,capital markets, generally decrease, and they generally increase during periods of favorable market or economic conditions. Restructuring activity generally is counter-cyclical to M&A activity. In addition, during periods of unfavorable market conditions our Investment Management business may be impacted by reduced equity valuations and generate relatively lower revenue because fees we receive, either directly or through our affiliates, typically are in part based on the market value of underlying publicly-traded securities. Our profitability may also be adversely affected by our fixed costs and the possibility that we would be unable to scale back other costs within a time frame, and in an amount sufficient, to match any decreases in revenue relating to changes in market and economic conditions. Likewise, our liquidity may be adversely impacted by our contractual obligations, including lease obligations.obligations and obligations to pay principal and interest on our Notes Payable. Reduced equity valuations resulting from future adverse economic events and/or market conditions may impact our performance and may result in future net redemptions of AUM from our Investment Management clients, which would generally result in lower revenues and cash flows. These adverse conditions could also have an impact on our goodwill impairment assessment, which is done annually, as of November 30th, or more frequently if circumstances indicate impairment may have occurred.
Elevated interest ratesGeopolitical and heightenedmacroeconomic geopoliticaluncertainty tensions,remain including escalating military tensionspresent and evolving regulatory and banking environments, have contributedled to anmarket elongationvolatility. ofThese evolving conditions may impact the transaction environment in the near to medium term and/or impact the timing of transaction closingsclosings. in 2024. While the environment is gradually improving, weWe will continue to assess the potential ongoing impacts of these factors, including the regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and our other contractual obligations. See "Results of Operations" above for further information.
On FebruaryApril 22,29, 2022,2025, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of Class A Shares and/or LP Units so that from that date forward, we are able to repurchase an aggregate of the lesser of $1.4$1.6 billion worth of Class A Shares and/or LP Units and 10.08.0 million Class A Shares and/or LP Units. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately-negotiated transactions or otherwise. The timing and the actual amount of shares repurchased will depend on a variety of factors, including our liquidity position, legal requirements, price, economic and market conditions and the objective to reduce the dilutive effect of equity awards granted as compensation to employees. This program may be suspended or discontinued at any time and does not have a specified expiration date. During 2024,2025, we repurchased 1,312,8951,443,097 Class A Shares, at an average cost per share of $203.84,$269.74, for $267.6$389.3 million, pursuant to our repurchase program.
Noncontrolling Interest Purchases
During 2024, we purchased, at fair value, an additional 0.3% of the EWM Class A Units for $1.0 million. This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional Paid-In Capital of $1.0 million on our Consolidated Statement of Financial Condition as of December 31, 2024.
During 2023, we purchased, at fair value, an additional 0.7% of the EWM Class A Units for $2.0 million. This purchase resulted in a decrease to Noncontrolling Interest of $0.2 million and a decrease to Additional Paid-In Capital of $1.8 million on our Consolidated Statement of Financial Condition as of December 31, 2023.
During 2022, we purchased, at fair value, an additional 0.9% of the EWM Class A Units for $3.2 million. This purchase resulted in a decrease to Noncontrolling Interest of $0.2 million and a decrease to Additional Paid-In Capital of $3.0 million on our Consolidated Statement of Financial Condition as of December 31, 2022.
What changed in the latest 10-Q
Risk Factors
We could not find a separate Risk Factors item in the latest 10-Q. Some companies leave it out of quarterly reports; see the annual 10-K risk factors and the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
New heading “Six Months Ended June 30, 2026 versus June 30, 2025”
New heading “Six Months Ended June 30, 2026 versus June 30, 2025”
New heading “Six Months Ended June 30, 2026 versus June 30, 2025”
Largest changes
“Non-compensation expenses were $156.8 million for the three months ended March 31, 2026, an increase of $33.0 million, or 27%, versus $123.8 million for the three months ended March 31, 2025. …”see in full comparison
“Non-compensation expenses were $152.7 million for the three months ended March 31, 2026, an increase of $32.9 million, or 27%, versus $119.8 million for the three months ended March 31, 2025. …”see in full comparison
“Net Revenues were $2.38 billion for the six months ended June 30, 2026, an increase of $853.1 million, or 56%, versus Net Revenues of $1.53 billion for the six months ended June 30, 2025. Advisory Fees increased $765.2 million, or 61%, Underwriting Fees increased $65.7 million, or 76%, and Commissions and Related Revenue increased $12.8 million, or 11%, compared to the six months ended June 30, 2025. Asset Management and Administration Fees increased $4.6 million, or 11%, compared to the six months ended June 30, 2025. …”see in full comparison
Full comparison: every changed paragraph (89)
•Gains (losses) resulting from foreign currency exchange rate fluctuations
•Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments
Special Charges, Including Business Realignment Costs. Special Charges, Including Business Realignment Costs, for the three and six months ended June 30, 2026 reflect an estimated loss provision for non-U.S. employment taxes for prior periods. See Note 16 to our unaudited condensed consolidated financial statements, under Contingencies, for further information.
Our share of the income (loss) from our equity interests in Atalanta Sosnoff and Seneca Evercore areis included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited Condensed Consolidated Statements of Operations. See Note 8 to our unaudited condensed consolidated financial statements for further information.
Provision (Benefit) for Income Taxes
We account for income taxes in accordance with ASC 740, "Income Taxes", which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision (Benefit) for Income Taxes. In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment. See Note 18 to our unaudited condensed consolidated financial statements for further information.
The following is a discussion of our results of operations for the three and six months ended MarchJune 31,30, 2026 and 2025. For a more detailed discussion of the factors that affected the revenue and operating expenses of our Investment Banking & Equities and Investment Management business segments in these periods, see the discussion in "Business Segments" below.
(A)Includes the reclassification of $10.2 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" for the three months ended March 31, 2025 to conform to the current presentation. See Note 2 to our unaudited condensed consolidated financial statements for further information.
As of MarchJune 31,30, 2026 and 2025, we employed approximately 2,6352,715 and 2,3952,455 people, respectively.
Three Months Ended MarchJune 31,30, 2026 versus MarchJune 31,30, 2025
Net Income Attributable to Evercore Inc. was $301.2$95.3 million for the three months ended MarchJune 31,30, 2026, ana increasedecrease of $155.1$1.9 million, or 106%,2%, compared to $146.2$97.2 million for the three months ended MarchJune 31,30, 2025. The changes in our operating results during these periods are described below.
Net Revenues were $1.39 billion for the three months ended March 31, 2026, an increase of $696.7 million, or 100%, versus Net Revenues of $694.8$990.2 million for the three months ended MarchJune 31,30, 2026, an increase of $156.4 million, or 19%, versus Net Revenues of $833.8 million for the three months ended June 30, 2025. Advisory Fees increased $687.4$77.8 million, or 123%,11%, Underwriting Fees increased $64.9 million, or 201%, and Commissions and Related Revenue increased $7.5$5.3 million, or 14%, and Underwriting Fees increased $0.8 million, or 1%,9%, compared to the three months ended MarchJune 31,30, 2025. Asset Management and Administration Fees increased $1.7$3.0 million, or 8%,14%, compared to the three months ended MarchJune 31,30, 2025. See "Business Segments" and "Liquidity and Capital Resources" below for further information.
Other Revenue, Including Interest and Investments, was $15.4$38.6 million for the three months ended MarchJune 31,30, 2026, an increase of $4.0$9.5 million, or 36%,33%, versus $11.3$29.1 million for the three months ended MarchJune 31,30, 2025, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income resulting from higher average balances in interest-bearing assets. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Interest Expense was $8.9$8.3 million for the three months ended MarchJune 31,30, 2026, an increase of $4.7$4.1 million, or 112%,97%, versus $4.2 million for the three months ended MarchJune 31,30, 2025, primarily reflecting the issuance of new senior notes in July 2025. See Note 11 to our unaudited condensed consolidated financial statements for further information.
Employee Compensation and Benefits Expense was $904.1$641.8 million for the three months ended MarchJune 31,30, 2026, an increase of $444.2$93.2 million, or 97%,17%, versus $459.8$548.6 million for the three months ended MarchJune 31,30, 2025. The increase in the amount of compensation recognized for the three months ended MarchJune 31,30, 2026 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards.awards, higher base salaries and a higher accrual for incentive compensation. Employee Compensation and Benefits Expense for the three months ended MarchJune 31,30, 2026 also includes $7.1 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information. Employee Compensation and Benefits Expense as a percentage of Net Revenues was 65.0%64.8% for the three months ended MarchJune 31,30, 2026, compared to 66.2%65.8% for the three months ended MarchJune 31,30, 2025. Employee Compensation and Benefits Expense as a percentage of Net Revenues was impacted by the factors above, as well as higher net revenues during the current year period compared to the prior year period.
Non-compensation expenses were $180.5 million for the three months ended June 30, 2026, an increase of $45.7 million, or 34%, versus $134.8 million for the three months ended June 30, 2025. The increase was primarily driven by an increase in travel and related expenses, professional fees, technology and information services and other operating expenses. The increase in travel and related expenses is largely due to higher levels of business activity, elevated travel pricing and increased headcount and the increase in other operating expenses is primarily attributable to an increase in the provision for credit losses.
Non-Compensation expenses per employee were approximately $67.5 thousand for the three months ended June 30, 2026, versus $55.6 thousand for the three months ended June 30, 2025, a 21% increase.
Non-compensation expenses were $156.8 million for the three months ended March 31, 2026, an increase of $33.0 million, or 27%, versus $123.8 million for the three months ended March 31, 2025. The increase was primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with license fees and research services in the first quarter of 2026, an increase in depreciation and amortization, principally reflecting the addition of leasehold improvements for new office space and the amortization of intangible assets from the acquisition of Robey Warshaw, an increase in professional fees and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. Non-compensation expenses for the first quarter of 2026 were also impacted by Acquisition and Transition Costs resulting from the impairment of a lease related to the acquisition of Robey Warshaw. See Note 5 to our unaudited condensed consolidated financial statements for further information. Non-Compensation expenses per employee were approximately $60.3 thousand for the three months ended March 31, 2026, versus $51.9 thousand for the three months ended March 31, 2025, a 16% increase.
IncomeSpecial fromCharges, EquityIncluding MethodBusiness InvestmentsRealignment wasCosts, $1.1of $21.3 million for the three months ended MarchJune 31,30, 2026,2026 reflected an increaseestimated ofloss $0.2 million, or 20%, versus $0.9 millionprovision for thenon-U.S. threeemployment monthstaxes endedfor Marchprior 31, 2025, reflecting higher earnings from Atalanta Sosnoff and Seneca Evercore during the three months ended March 31, 2026.periods. See Note 816 to our unaudited condensed consolidated financial statements for further information.
The provision for income taxes for the three months ended March 31, 2026 was $9.1 million, which reflected an effective tax rate of 2.7%. The provision (benefit) for income taxes for the three months ended March 31, 2025 was ($41.7) million, which reflected an effective tax rate of (37.2%). The provision (benefit) for income taxes for the three months ended March 31, 2026 and 2025 principally reflects the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $88.5 million and $74.3 million, respectively, which resulted in a reduction in the effective tax rate of 26.7 and 66.3 percentage points for the three months ended March 31, 2026 and 2025, respectively.
Net Income Attributablefrom toEquity NoncontrollingMethod InterestInvestments was $21.5$1.0 million for the three months ended MarchJune 31,30, 2026, an increase of $13.9$0.2 million, or 182%,25%, versus $7.6$0.8 million for the three months ended MarchJune 31,30, 2025. The increase in Net Income Attributable to Noncontrolling Interest2025, primarily reflectsreflecting higher incomeearnings atfrom EvercoreAtalanta LPSosnoff during the three months ended MarchJune 31,30, 2026. See Note 138 to our unaudited condensed consolidated financial statements for further information.
The provision for income taxes for the three months ended June 30, 2026 was $41.1 million, which reflected an effective tax rate of 27.8%. The provision for income taxes for the three months ended June 30, 2025 was $44.3 million, which reflected an effective tax rate of 29.3%. The decrease in the provision for income taxes for the three months ended June 30, 2026 is primarily attributable to an increase in the deduction associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price.
Net Income Attributable to Noncontrolling Interest was $11.2 million for the three months ended June 30, 2026, an increase of $1.5 million, or 15%, versus $9.7 million for the three months ended June 30, 2025. The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at Evercore LP and EWM during the three months ended June 30, 2026. See Note 13 to our unaudited condensed consolidated financial statements for further information.
Six Months Ended June 30, 2026 versus June 30, 2025
Net Income Attributable to Evercore Inc. was $396.5 million for the six months ended June 30, 2026, an increase of $153.1 million, or 63%, compared to $243.4 million for the six months ended June 30, 2025. The changes in our operating results during these periods are described below.
Net Revenues were $2.38 billion for the six months ended June 30, 2026, an increase of $853.1 million, or 56%, versus Net Revenues of $1.53 billion for the six months ended June 30, 2025. Advisory Fees increased $765.2 million, or 61%, Underwriting Fees increased $65.7 million, or 76%, and Commissions and Related Revenue increased $12.8 million, or 11%, compared to the six months ended June 30, 2025. Asset Management and Administration Fees increased $4.6 million, or 11%, compared to the six months ended June 30, 2025. See "Business Segments" and "Liquidity and Capital Resources" below for further information.
Other Revenue, Including Interest and Investments, was $54.0 million for the six months ended June 30, 2026, an increase of $13.5 million, or 33%, versus $40.5 million for the six months ended June 30, 2025, primarily reflecting higher interest income resulting from higher average balances in interest-bearing assets, as well as higher performance of our investment funds portfolio. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Interest Expense was $17.2 million for the six months ended June 30, 2026, an increase of $8.8 million, or 105%, versus $8.4 million for the six months ended June 30, 2025, primarily reflecting the issuance of new senior notes in July 2025. See Note 11 to our unaudited condensed consolidated financial statements for further information.
Employee Compensation and Benefits Expense was $1.55 billion for the six months ended June 30, 2026, an increase of $537.4 million, or 53%, versus $1.01 billion for the six months ended June 30, 2025. The increase in the amount of compensation recognized for the six months ended June 30, 2026 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. Employee Compensation and Benefits Expense for the six months ended June 30, 2026 also includes $14.2 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information. Employee Compensation and Benefits Expense as a percentage of Net Revenues was 64.9% for the six months ended June 30, 2026, compared to 66.0% for the six months ended June 30, 2025. Employee Compensation and Benefits Expense as a percentage of Net Revenues was impacted by the factors above, as well as higher net revenues during the current year period compared to the prior year period.
Non-compensation expenses were $337.3 million for the six months ended June 30, 2026, an increase of $78.6 million, or 30%, versus $258.7 million for the six months ended June 30, 2025. The increase was primarily driven by an increase in travel and related expenses, professional fees and technology and information services. The increase in travel and related expenses is largely due to higher levels of business activity, elevated travel pricing and increased headcount and the increase in technology and information services is principally reflecting higher expenses associated with license fees, consulting costs and research services. Non-Compensation expenses per employee were approximately $127.8 thousand for the six months ended June 30, 2026, versus $107.4 thousand for the six months ended June 30, 2025, a 19% increase.
Special Charges, Including Business Realignment Costs, of $21.3 million for the six months ended June 30, 2026 reflected an estimated loss provision for non-U.S. employment taxes for prior periods. See Note 16 to our unaudited condensed consolidated financial statements for further information.
Income from Equity Method Investments was $2.1 million for the six months ended June 30, 2026, an increase of $0.4 million, or 22%, versus $1.7 million for the six months ended June 30, 2025, reflecting higher earnings from Atalanta Sosnoff and Seneca Evercore in 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.
The provision for income taxes for the six months ended June 30, 2026 was $50.2 million, which reflected an effective tax rate of 10.5%. The provision for income taxes for the six months ended June 30, 2025 was $2.5 million, which reflected an effective tax rate of 1.0%. The increase in provision for income taxes for the six months ended June 30, 2026 is primarily attributable to a $216.1 million increase in pre-tax income, as well as an increase in non-deductible expenses and state and local apportionment adjustments, partially offset by the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $91.4 million and $75.0 million, respectively, which resulted in a reduction in the effective tax rate of 19.1 and 28.5 percentage points for the six months ended June 30, 2026 and 2025, respectively.
Net Income Attributable to Noncontrolling Interest was $32.7 million for the six months ended June 30, 2026, an increase of $15.4 million, or 89%, versus $17.3 million for the six months ended June 30, 2025. The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at Evercore LP and EWM during the six months ended June 30, 2026. See Note 13 to our unaudited condensed consolidated financial statements for further information.
(1)Includes interest expense on Notes Payable, lines of credit and other financing arrangements, including interest expense related to deferred acquisition consideration, all of which total $8.8$8.1 million and $4.2$16.9 million for the three and six months ended MarchJune 31,30, 20262026, respectively, and $4.2 million and $8.4 million for the three and six months ended June 30, 2025, respectively.
(A)Includes the reclassification of $10.0 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Banking & Equities segment for the three months ended March 31, 2025 to conform to the current presentation. See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.
The following table summarizes Evercore statistics for the three and six months ended MarchJune 31,30, 2026 and 2025.
Three Months Ended MarchJune 31,30, 2026 versus MarchJune 31,30, 2025
Net Revenues were $1.37 billion for the three months ended March 31, 2026, an increase of $694.2 million, or 103%, versus $674.5$966.9 million for the three months ended MarchJune 31,30, 2026, an increase of $154.7 million, or 19%, versus $812.2 million for the three months ended June 30, 2025. The increase in revenues for the three months ended MarchJune 31,30, 2026 was primarily driven by an increase of $687.4$77.8 million, or 123%,11%, in Advisory Fees, reflecting an increase in revenue across both M&A and non-M&A assignments, an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the firstsecond quarter of 2026. CommissionsUnderwriting and Related RevenueFees increased $7.5$64.9 million, or 14%,201%, compared to the three months ended MarchJune 31, 2025, primarily reflecting higher trading commissions driven by increased trading volume during the first quarter of 2026. Underwriting Fees increased $0.8 million, or 1%, compared to the three months ended March 31,30, 2025, reflecting an increase in the number of transactions we participated in during the firstsecond quarter of 2026. Commissions and Related Revenue increased $5.3 million, or 9%, compared to the three months ended June 30, 2025, primarily reflecting higher trading commissions driven by increased trading volume during the second quarter of 2026. Other Revenue, net, decreasedincreased $1.5$6.7 million, or 20%,28%, compared to the three months ended MarchJune 31,30, 2025, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income resulting from higher average balances in interest-bearing assets, partially offset by an increase in interest expense related to the issuance of new senior notes in July 2025,2025. partiallyThe offsetinvestment byfunds higherportfolio interestis incomeused resultingas froman highereconomic averagehedge balancesagainst inour interest-bearingdeferred assets.cash compensation program.
Employee Compensation and Benefits Expense was $889.2$627.3 million for the three months ended MarchJune 31,30, 2026, an increase of $441.1$91.9 million, or 98%,17%, versus $448.0$535.4 million for the three months ended MarchJune 31,30, 2025. The increase in the amount of compensation recognized for the three months ended MarchJune 31,30, 2026 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards.awards, higher base salaries and a higher accrual for incentive compensation. Employee Compensation and Benefits Expense for the three months ended MarchJune 31,30, 2026 also includes $7.1 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information.
Non-compensation expenses were $175.8 million for the three months ended June 30, 2026, an increase of $45.0 million, or 34%, versus $130.8 million for the three months ended June 30, 2025. Non-compensation expenses increased from the prior year period, primarily driven by an increase in travel and related expenses, professional fees, technology and information services and other operating expenses. The increase in travel and related expenses is largely due to higher levels of business activity, elevated travel pricing and increased headcount and the increase in other operating expenses is primarily attributable to an increase in the provision for credit losses.
Non-compensation expenses were $152.7 million for the three months ended March 31, 2026, an increase of $32.9 million, or 27%, versus $119.8 million for the three months ended March 31, 2025. Non-compensation expenses increased from the prior year period, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with license fees and research services in the first quarter of 2026, an increase in depreciation and amortization, principally reflecting the addition of leasehold improvements for new office space and the amortization of intangible assets from the acquisition of Robey Warshaw, an increase in professional fees and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. Non-compensation expenses for the first quarter of 2026 were also impacted by Acquisition and Transition Costs resulting from the impairment of a lease related to the acquisition of Robey Warshaw. See Note 5 to our unaudited condensed consolidated financial statements for further information.
IncomeSpecial (Loss)Charges, fromIncluding EquityBusiness MethodRealignment InvestmentsCosts, wasof $0.01$21.3 million for the three months ended MarchJune 31,30, 2026,2026 reflected an increaseestimated ofloss $0.05 million versus ($0.04) millionprovision for thenon-U.S. threeemployment monthstaxes endedfor Marchprior 31, 2025, reflecting higher earnings from Seneca Evercore during the three months ended March 31, 2026.periods. See Note 816 to our unaudited condensed consolidated financial statements for further information.
Income (Loss) from Equity Method Investments was $0.02 million for the three months ended June 30, 2026, an increase of $0.01 million, or 64%, versus $0.01 million for the three months ended June 30, 2025, reflecting higher earnings from Seneca Evercore during the three months ended June 30, 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.
Six Months Ended June 30, 2026 versus June 30, 2025
Net Revenues were $2.34 billion for the six months ended June 30, 2026, an increase of $848.9 million, or 57%, versus $1.49 billion for the six months ended June 30, 2025. The increase in revenues for the six months ended June 30, 2026 was primarily driven by an increase of $765.2 million, or 61%, in Advisory Fees, reflecting an increase in revenue across both M&A and non-M&A assignments, an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2026. Underwriting Fees increased $65.7 million, or 76%, compared to the six months ended June 30, 2025, reflecting an increase in the number of transactions we participated in during 2026. Commissions and Related Revenue increased $12.8 million, or 11%, compared to the six months ended June 30, 2025, primarily reflecting higher trading commissions driven by increased trading volume during 2026. Other Revenue, net, increased $5.2 million, or 16%, compared to the six months ended June 30, 2025, primarily reflecting higher interest income resulting from higher average balances in interest-bearing assets, as well as higher performance of our investment funds portfolio, partially offset by an increase in interest expense 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.
Employee Compensation and Benefits Expense was $1.52 billion for the six months ended June 30, 2026, an increase of $533.0 million, or 54%, versus $983.5 million for the six months ended June 30, 2025. The increase in the amount of compensation recognized for the six months ended June 30, 2026 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. Employee Compensation and Benefits Expense for the six months ended June 30, 2026 also includes $14.2 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information.
Non-compensation expenses were $328.4 million for the six months ended June 30, 2026, an increase of $77.9 million, or 31%, versus $250.5 million for the six months ended June 30, 2025. Non-compensation expenses increased from the prior year period, primarily driven by an increase in travel and related expenses, professional fees and technology and information services. The increase in travel and related expenses is largely due to higher levels of business activity, elevated travel pricing and increased headcount and the increase in technology and information services is principally reflecting higher expenses associated with license fees, consulting costs and research services.
Special Charges, Including Business Realignment Costs, of $21.3 million for the six months ended June 30, 2026 reflected an estimated loss provision for non-U.S. employment taxes for prior periods. See Note 16 to our unaudited condensed consolidated financial statements for further information.
Income (Loss) from Equity Method Investments was $0.03 million for the six months ended June 30, 2026, an increase of $0.1 million, versus ($0.03) million for the six months ended June 30, 2025, reflecting higher earnings from Seneca Evercore in 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.
(1)Includes interest expense on mandatorily redeemable interests of $0.1$0.2 million and $0.3 million for the three and six months ended MarchJune 31,30, 2026.2026, respectively.
(A)Includes the reclassification of $0.3 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Management segment for the three months ended March 31, 2025 to conform to the current presentation. See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.
•Private Equity – conducted through our investment interests in private equity funds. We maintain a limited partner's interest in Glisco II, Glisco III and Glisco IV (together the "Glisco Funds"), as well as Glisco Manager Holdings LP and the general partners of the Glisco Funds. We receive our portion of the management fees earned by Glisco Partners Inc. ("Glisco") from Glisco Manager Holdings LP. We are passive investors and do not participate in the management of any Glisco sponsored funds. We are also passive investors in Trilantic V and previously were passive investors in Trilantic IV (through December 2025). In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed. As of MarchJune 31,30, 2026, there was no previously distributed carried interest received from the funds subject to repayment.
AUM in our Wealth Management business of $15.1$16.2 billion at MarchJune 31,30, 2026 decreasedincreased $0.4$0.7 billion, or 3%,5%, compared to $15.5 billion at December 31, 2025. The amounts of AUM presented in the table below reflect the fair value of assets which we manage on behalf of Wealth Management clients. As defined in ASC 820, valuations performed for Level 1 investments are based on quoted prices obtained from active markets generated by third parties and Level 2 investments are valued through the use of models based on either direct or indirect observable inputs or other valuation methodologies performed by third parties to determine fair value. For Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively. For Level 3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Wealth Management maintained 77% and 78% of Level 1 investments, 19% and 18% of Level 2 investments and 4% and 4% of Level 3 investments as of MarchJune 31,30, 2026 and December 31, 2025, respectively.2025.
The following table summarizes AUM activity for Wealth Management for the threesix months ended MarchJune 31,30, 2026:
The following table represents the composition of AUM for Wealth Management as of MarchJune 31,30, 2026:
For the threesix months ended MarchJune 31,30, 2026, AUM for Wealth Management decreasedincreased 3%,5%, primarily reflecting aan 2% decreaseincrease from market depreciation and a 1% decrease from net outflows.appreciation. Performance as of MarchJune 31,30, 2026 reflected:
•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 6%4% and 5%,6%, respectively ◦The S&P 500 was up approximately 18%22% and 21% on both a 1 and 3-year basisbasis, respectively
•The S&P 500 and the fixed income composite were downup approximately 4%10% and 1%, respectively, for the threesix months ended MarchJune 31,30, 2026 AUM from our unconsolidated affiliate, Atalanta Sosnoff, decreasedincreased 5%8% compared to December 31, 2025.
Three Months Ended MarchJune 31,30, 2026 versus MarchJune 31,30, 2025
EVR insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 1 filing (1 insider, 1 trade date, 7,808 shares, about $2.7M). Net open-market shares: -7,808 (purchases minus sales); net value about -$2.7M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-11 | Lalonde Timothy Gilbert |
Open-market sale | 7,808 | $343.06 | $2.7M |
| 2026-06-10 | Williamson Sarah K |
Grant/award | 727 | — | — |
| 2026-06-10 | Wheeler William J |
Grant/award | 364 | — | — |
| 2026-06-10 | Varney Christine A |
Grant/award | 727 | — | — |
| 2026-06-10 | Robertson Sir Simon |
Grant/award | 364 | — | — |
| 2026-06-10 | Overlock Wilard J Jr |
Grant/award | 727 | — | — |
| 2026-06-10 | Millard Robert B |
Grant/award | 815 | — | — |
| 2026-06-10 | Harris Gail Block |
Grant/award | 364 | — | — |
| 2026-06-10 | Futter Ellen V |
Grant/award | 364 | — | — |
| 2026-06-10 | Carlton Pamela G |
Grant/award | 364 | — | — |
Well-known investors holding EVR (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 1,710,982 | $584.2M | 0.2% | Added 30% |
| Millennium Management (Israel Englander) | 2026-06-30 | 637,464 | $217.7M | 0.15% | Added 822% |
| PRIMECAP Management | 2026-06-30 | 376,150 | $128.4M | 0.08% | Added 6% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 344,521 | $117.6M | 0.18% | Reduced 12% |
| Two Sigma Investments | 2026-06-30 | 197,932 | $67.6M | 0.05% | Added 95% |
| Renaissance Technologies | 2026-06-30 | 156,180 | $53.3M | 0.07% | Reduced 10% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 66,075 | $19.7M | — | Sold out |
| Bridgewater Associates | 2026-06-30 | 33,194 | $11.3M | 0.05% | Reduced 63% |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 20,624 | $7.0M | 0.02% | No change |
| First Eagle Investment Management | 2026-06-30 | 3,960 | $1.4M | 0.0% | Added 1% |