Lazard, Inc.

Previous wording

The following discussion should be read in conjunction with Lazard’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (the “Form 10-Q”), as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”). All references to “2025,” “2024,” “ first quarter” or “the period” refer to, as the context requires, the three month periods ended March 31, 2025 and 2024.

Current wording

The following discussion should be read in conjunction with Lazard’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (the “Form 10-Q”), as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”). All references to “2025,” “2024,” “second quarter,” “first half” or “the period” refer to, as the context requires, the three month and six month periods ended June 30, 2025 and 2024.

Previous wording

We operate in a very competitive and global environment. Recent changes to international trade policies and practices have resulted in a period of heightened uncertainty and market volatility. For example, in April 2025, the U.S. government introduced tariffs on trading partners globally, including China which responded with retaliatory tariffs. The potential for geopolitical impacts could further exacerbate market volatility and contribute to weakened economic conditions. We believe our broad set of capabilities and diversified business model positions us well to meet evolving client needs in varying economic environments. However, unpredictability due to rapidly changing international trade policies and market volatility could reduce our clients’ ability to finalize decision-making or execute on investment priorities.

Current wording

We operate in a very competitive and global environment. Changes in the first half of 2025 to international trade policies and practices have resulted in a period of heightened uncertainty. The potential for geopolitical impacts could further exacerbate market volatility and contribute to weakened economic conditions. We believe our broad set of capabilities and diversified business model position us well to meet evolving client needs in varying economic environments. However, unpredictability, for example due to changing international trade policies, could reduce our clients’ ability to finalize decision-making or execute on investment priorities.

Previous wording

Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first quarter of 2025 as compared to the first quarter of 2024. The number of defaulting issuers was 27 in the first quarter of 2025, according to Moody’s Investors Service, Inc., as compared to 38 in the first quarter of 2024.

Current wording

Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first half of 2025 as compared to the first half of 2024. The number of defaulting issuers was 64 in the first half of 2025, according to Moody’s Investors Service, Inc., as compared to 80 in the first half of 2024.

Previous wording

Additionally, the Organization for Economic Cooperation and Development (the “OECD”) reached agreement among various countries, including the EU member states, to establish a 15% minimum tax on certain multinational companies, commonly called “Pillar Two”. Many countries continue to announce changes in their tax laws and regulations to implement the OECD Pillar Two proposals. Lazard is continuing to evaluate the potential impact on future periods of the Pillar Two proposals, as new guidance becomes available.

Current wording

On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (the “OBBBA”), a broad tax and spending bill that includes provisions impacting corporate taxpayers. The Company is evaluating the impact of the OBBBA, but currently does not expect a material impact to its effective tax rate as a result of the changes. Additionally, the Organization for Economic Cooperation and Development (the “OECD”) reached agreement among various countries, including the EU member states, to establish a 15% minimum tax on certain multinational companies, commonly called “Pillar Two”. We are continuing to monitor Pillar Two legislative developments and their impact on future periods.

Previous wording

(e)Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the three month period ended March 31, 2024.

Current wording

(e)Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the six month period ended June 30, 2024.

Previous wording

(f)Adjusted net revenue is a non-GAAP measure.

Current wording

(g)Adjusted net revenue is a non-GAAP measure.

Previous wording

The Company reported net income attributable to Lazard of $60 million, as compared to net income attributable to Lazard of $36 million in the 2024 period.

Current wording

The Company reported net income attributable to Lazard of $55 million, as compared to net income attributable to Lazard of $50 million in the 2024 period.

Previous wording

Net revenue decreased $117 million, or 15%, with adjusted net revenue decreasing $103 million, or 14%, as compared to the 2024 period. Fee revenue from investment banking and other advisory activities decreased $93 million, or 20%, as compared to the 2024 period. Asset management fees, including incentive fees, decreased $12 million, or 4%, as compared to the 2024 period. In the aggregate, interest income, other revenue and interest expense decreased $12 million as compared to the 2024 period.

Current wording

Net revenue decreased $6 million, with adjusted net revenue decreasing $18 million, or 1%, as compared to the 2024 period. Fee revenue from investment banking and other advisory activities decreased $8 million, or 1%, as compared to the 2024 period. Asset management fees, including incentive fees, decreased $5 million, or 1%, as compared to the 2024 period. In the aggregate, interest income, other revenue and interest expense increased $7 million, as compared to the 2024 period.

Previous wording

Compensation and benefits expense decreased $121 million, or 22%, as compared to the 2024 period which included $47 million associated with the cost-saving initiatives.

Current wording

Compensation and benefits expense decreased $54 million, or 5%, as compared to the 2024 period, which included $47 million associated with the cost-saving initiatives.

Previous wording

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $421 million, a decrease of $71 million, or 15%, as compared to $493 million in the 2024 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period.

Current wording

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $926 million, a decrease of $19 million, or 2%, as compared to $945 million in the 2024 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period.

Previous wording

Non-compensation expense increased $4 million, or 2%, as compared to the 2024 period. Adjusted non-compensation expense increased $14 million, or 10%, as compared to the 2024 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased occupancy and equipment and marketing and business development expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 23.0% for the 2025 period, as compared to 18.0% for the 2024 period.

Current wording

Non-compensation expense increased $18 million, or 6%, as compared to the 2024 period. Adjusted non-compensation expense increased $22 million, or 8%, as compared to the 2024 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development, occupancy and equipment and technology and information services expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 21.6% for the 2025 period, as compared to 19.8% for the 2024 period.

Previous wording

The provision (benefit) for income taxes reflects an effective tax rate of (13.5)%, as compared to 26.3% for the 2024 period. The change in the effective tax rate principally relates to increases in discrete benefits for share-based incentive compensation and changes in the geographic mix of earnings.

Current wording

The provision for income taxes reflects an effective tax rate of 16.5%, as compared to 21.9% for the 2024 period. The change in the effective tax rate principally relates to increases in discrete benefits for share-based incentive compensation and changes in the geographic mix of earnings.

Previous wording

Adjusted net revenue, adjusted operating income, and adjusted operating income as a percentage of adjusted net revenue, are non-GAAP measures in the tables below.

Current wording

Adjusted net revenue, adjusted operating income (loss), and adjusted operating income as a percentage of adjusted net revenue, are non-GAAP measures in the tables below.

Previous wording

Financial Advisory net revenue decreased $86 million, or 19%, as compared to the 2024 period. Financial Advisory adjusted net revenue decreased $77 million, or 17%, as compared to the 2024 period. The decrease in Financial Advisory net revenue and adjusted net revenue was primarily driven by a lower number of transactions with fees above $10 million compared to the same period in 2024 and a decreased number of completed M&A transactions with values greater than $500 million as compared to the 2024 period.

Current wording

Financial Advisory net revenue increased $86 million, or 21%, as compared to the 2024 period. Financial Advisory adjusted net revenue increased $83 million, or 20%, as compared to the 2024 period. The increase in Financial Advisory net revenue and adjusted net revenue was primarily driven by an increased number of completed M&A transactions with values greater than $500 million as compared to the 2024 period.

Previous wording

Adjusted non-compensation and benefits expense increased $5 million, or 10%, as compared to the 2024 period, primarily due to increased occupancy and equipment and marketing and business development expenses.

Current wording

Adjusted non-compensation expense increased $6 million, or 6%, as compared to the 2024 period primarily due to increased occupancy and equipment and marketing and business development expenses.

Previous wording

Total AUM at March 31, 2025 was $227 billion, an increase of $1 billion as compared to total AUM of $226 billion at December 31, 2024 due to market and foreign exchange appreciation, partially offset by net outflows. Average AUM for the first quarter of 2025 decreased 7% as compared to the first quarter of 2024 and decreased 1% as compared to the fourth quarter of 2024.

Current wording

Total AUM at June 30, 2025 was $248 billion, an increase of $22 billion, or 10%, as compared to total AUM of $226 billion at December 31, 2024 due to market and foreign exchange appreciation, partially offset by net outflows. Average AUM for the second quarter of 2025 decreased 3% as compared to the three month period ended June 30, 2024 and decreased 5% as compared to the six month period ended June 30, 2024.

Previous wording

As of both March 31, 2025 and December 31, 2024, approximately 82% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors. As of both March 31, 2025 and December 31, 2024, approximately 18% of our AUM was managed on behalf of individual client relationships.

Current wording

As of June 30, 2025, approximately 83% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, compared to approximately 82% as of December 31, 2024. As of June 30, 2025, approximately 17% of our AUM was managed on behalf of individual client relationships, compared to approximately 18% as of December 31, 2024.

Previous wording

As of both March 31, 2025 and December 31, 2024, AUM with foreign currency exposure represented approximately 62% of our total AUM. AUM with foreign currency exposure generally declines in value with the strengthening of the U.S. Dollar and increases in value as the U.S. Dollar weakens, with all other factors held constant.

Current wording

As of June 30, 2025, AUM with foreign currency exposure represented approximately 63% of our total AUM as compared to 62% at December 31, 2024. AUM with foreign currency exposure generally declines in value with the strengthening of the U.S. Dollar and increases in value as the U.S. Dollar weakens, with all other factors held constant.

Previous wording

The following is a summary of changes in AUM by asset class for the three month periods ended March 31, 2025 and 2024:

Current wording

The following is a summary of changes in AUM by asset class for the three month and six month periods ended June 30, 2025 and 2024:

Previous wording

Net flows were primarily driven by outflows in the Multi-Regional Equity platform and the Emerging Markets Fixed Income platform.

Current wording

For the six months ended June 30, 2025, net flows were primarily driven by outflows from the Multi-Regional Equity platform partially offset by inflows into the Global Equity platform.

Previous wording

Average AUM for the three month periods ended March 31, 2025 and 2024 for each significant asset class is set forth below. Average AUM generally represents the average of the monthly ending AUM balances for the period.

Current wording

Average AUM for the three month and six month periods ended June 30, 2025 and 2024 for each significant asset class is set forth below. Average AUM generally represents the average of the monthly ending AUM balances for the period.

Previous wording

Asset Management net revenue decreased $7 million, or 2%, as compared to the 2024 period. Asset Management adjusted net revenue decreased $11 million, or 4%, as compared to the 2024 period. Management fees and other revenue, on an adjusted basis, was $256 million, a decrease of $12 million, or 5%, as compared to $268 million in the 2024 period. Incentive fees, on an adjusted basis, were $9 million, an increase of $1 million as compared to $8 million in the 2024 period.

Current wording

Asset Management net revenue remained substantially the same as compared to the 2024 period. Asset Management adjusted net revenue decreased $8 million, or 2%, as compared to the 2024 period. Management fees and other revenue, on an adjusted basis, was $520 million, a decrease of $10 million, or 2%, as compared to $531 million in the 2024 period. Incentive fees, on an adjusted basis, were $13 million, an increase of $2 million as compared to $10 million in the 2024 period.

Previous wording

Corporate net revenue decreased $23 million as compared to the 2024 period, primarily due to lower investment gains in the 2025 period as compared to the 2024 period, including investments held in connection with LFI. Corporate adjusted net revenue decreased $15 million, as compared to the 2024 period, primarily due to lower investment gains in the 2025 period as compared to the 2024 period.

Current wording

Corporate net revenue increased $18 million as compared to the 2024 period, primarily due to gains in the 2025 period as compared to losses in the 2024 period attributable to investments held in connection with LFI. Corporate adjusted net revenue decreased $1 million, or 13%, as compared to the 2024 period.

Previous wording

Adjusted compensation and benefits expense decreased $8 million, or 5%, as compared to the 2024 period.

Current wording

Adjusted compensation and benefits expense, including centrally managed costs, increased $4 million, or 5%, as compared to the 2024 period.

Previous wording

Adjusted non-compensation expense, including centrally managed costs, increased $5 million, or 17%, as compared to the 2024 period.

Current wording

Adjusted non-compensation expense, including centrally managed costs, increased $5 million, or 7%, as compared to the 2024 period.

Previous wording

Liquidity is significantly impacted by cash payments for incentive compensation, a significant portion of which are made during the first three months of the year. As a consequence, cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year. We also make payments during the year on behalf of certain managing directors for their estimated taxes, which serve to reduce their respective incentive compensation payments. Additionally, we made payments through 2024 relating to severance and other employee termination costs associated with cost-saving initiatives. Also See “Senior Debt” below for senior debt refinancing in the first quarter of 2024.

Current wording

Liquidity is significantly impacted by cash payments for incentive compensation, a significant portion of which are made during the first three months of the year. As a consequence, cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year. We also make payments during the year on behalf of certain managing directors for their estimated taxes, which serve to reduce their respective incentive compensation payments.

Previous wording

We regularly monitor our liquidity position, including cash levels, lease obligations, investments, credit lines, principal investment commitments, interest and principal payments on debt, capital expenditures, dividend payments, purchases of shares of common stock, compensation and matters relating to liquidity and to compliance with regulatory net capital requirements. At March 31, 2025, Lazard had approximately $909 million of cash and cash equivalents, including approximately $494 million held at Lazard’s operations outside the U.S. Lazard provides for income taxes on substantially all of its foreign earnings and we expect that no material amount of additional taxes would be recognized upon receipt of dividends or distributions of such earnings from our foreign operations. In April 2025, we made additional investments of approximately $90 million to seed our Asset Management strategies in connection with the launch of actively managed ETFs.

Current wording

We regularly monitor our liquidity position, including cash levels, lease obligations, investments, credit lines, principal investment commitments, interest and principal payments on debt, capital expenditures, dividend payments, purchases of shares of common stock, compensation and matters relating to liquidity and to compliance with regulatory net capital requirements. At June 30, 2025, Lazard had approximately $978 million of cash and cash equivalents, including approximately $512 million held at Lazard’s operations outside the U.S. Lazard provides for income taxes on substantially all of its foreign earnings and we expect that no material amount of additional taxes would be recognized upon receipt of dividends or distributions of such earnings from our foreign operations.

Previous wording

As of March 31, 2025, the Company’s remaining lease obligations were $60 million for 2025 (April 1 through December 31), $145 million from 2026 through 2027, $141 million from 2028 through 2029 and $261 million from 2030 through 2039.

Current wording

As of June 30, 2025, the Company’s remaining lease obligations were $40 million for 2025 (July 1 through December 31), $153 million from 2026 through 2027, $150 million from 2028 through 2029 and $277 million from 2030 through 2039.

Previous wording

As of March 31, 2025, Lazard had approximately $209 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement, among Lazard Group LLC, the Banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).

Current wording

As of June 30, 2025, Lazard had approximately $210 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement, among Lazard Group LLC, the Banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).

Previous wording

As permitted under Rule 13-01 of Regulation S-X, Lazard, Inc. has excluded summarized financial information for Lazard Group because the combined assets, liabilities and results of operations of Lazard Group for the period were not materially different than the corresponding amounts in Lazard, Inc.’s condensed consolidated financial statements presented herein and management believes such summarized financial information would be repetitive and would not provide incremental value to investors.

Current wording

As permitted under Rule 13-01 of Regulation S-X, Lazard, Inc. has excluded summarized financial information for Lazard Group because the combined assets, liabilities and results of operations of Lazard, Inc. and Lazard Group for the period were not materially different than the corresponding amounts in Lazard, Inc.’s condensed consolidated financial statements presented herein and management believes such summarized financial information would be repetitive and would not provide incremental value to investors.

Previous wording

At March 31, 2025, total stockholders’ equity was $649 million, as compared to $685 million at December 31, 2024, including $603 million and $636 million attributable to Lazard, Inc. on the respective dates. The net activity in stockholders’ equity during the three month period ended March 31, 2025 is reflected in the table below (in millions of dollars):

Current wording

At June 30, 2025, total stockholders’ equity was $786 million, as compared to $685 million at December 31, 2024, including $742 million and $636 million attributable to Lazard, Inc. on the respective dates. The net activity in stockholders’ equity during the six month period ended June 30, 2025 is reflected in the table below (in millions of dollars):

Previous wording

(a)Excludes net loss associated with redeemable noncontrolling interests of $1 million in 2025.

Current wording

(a)Excludes net income associated with redeemable noncontrolling interests of $5 million in 2025.

Previous wording

As of March 31, 2025, a total of $164 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.

Current wording

As of June 30, 2025, a total of $160 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.

Previous wording

During the three month period ended March 31, 2025, Lazard, Inc. had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

Current wording

During the six month period ended June 30, 2025, Lazard, Inc. had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

Previous wording

Seed investments held in entities in which the Company maintained a controlling financial interest were $110 million in twelve entities as of March 31, 2025, as compared to $111 million in ten entities as of December 31, 2024. LFI investments held in entities in which the Company maintained a controlling financial interest were $54 million in nine entities as of March 31, 2025, as compared to $93 million in nine entities as of December 31, 2024.

Current wording

Seed investments held in entities in which the Company maintained a controlling financial interest were $230 million in 17 entities as of June 30, 2025, as compared to $111 million in ten entities as of December 31, 2024. LFI investments held in entities in which the Company maintained a controlling financial interest were $54 million in nine entities as of June 30, 2025, as compared to $93 million in nine entities as of December 31, 2024.

Previous wording

Equity Market Price Risk—At March 31, 2025 and December 31, 2024, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $148 million and $164 million, respectively. The Company hedges market exposure arising from a significant portion of our equity investment portfolios by entering into total return swaps. The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $1.7 million and $0.9 million as of March 31, 2025 and December 31, 2024, respectively, in the carrying value of such investments, including the effect of the hedging transactions.

Current wording

Equity Market Price Risk—At June 30, 2025 and December 31, 2024, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $270 million and $164 million, respectively. The Company hedges market exposure arising from a significant portion of our equity investment portfolios by entering into total return swaps. The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $1.2 million and $0.9 million as of June 30, 2025 and December 31, 2024, respectively, in the carrying value of such investments, including the effect of the hedging transactions.

Previous wording

Interest Rate and Credit Spread Risk—At March 31, 2025 and December 31, 2024, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $23 million and $24 million, respectively. The Company hedges market exposure arising from a portion of our debt investment portfolios by entering into total return swaps. The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net decrease of approximately $0.8 million as of March 31, 2025 and a net increase of approximately $0.6 million in the carrying value of such investments as of December 31, 2024, including the effect of the hedging transactions.

Current wording

Interest Rate and Credit Spread Risk—At June 30, 2025 and December 31, 2024, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $18 million and $24 million, respectively. The Company hedges market exposure arising from a portion of our debt investment portfolios by entering into total return swaps. The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net decrease of approximately $0.7 million as of June 30, 2025 and a net increase of approximately $0.6 million in the carrying value of such investments as of December 31, 2024, including the effect of the hedging transactions.

Previous wording

Foreign Exchange Rate Risk—At March 31, 2025 and December 31, 2024, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and private equity investments was $83 million and $65 million, respectively. A significant portion of the Company’s foreign currency exposure related to our equity and debt investment portfolios is hedged through the aforementioned total return swaps. The Company estimates that a 10% adverse change in foreign exchange rates versus the U.S. Dollar would result in a net decrease of approximately $4.1 million and $2.0 million in the carrying value of such investments as of March 31, 2025 and December 31, 2024, respectively, including the effect of the hedging transactions.

Current wording

Foreign Exchange Rate Risk—At June 30, 2025 and December 31, 2024, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and private equity investments was $63 million and $65 million, respectively. A significant portion of the Company’s foreign currency exposure related to our equity and debt investment portfolios is hedged through the aforementioned total return swaps. The Company estimates that a 10% adverse change in foreign exchange rates versus the U.S. Dollar would result in a net decrease of approximately $2.1 million and $2.0 million in the carrying value of such investments as of June 30, 2025 and December 31, 2024, respectively, including the effect of the hedging transactions.

Previous wording

Private Equity—The Company invests in private equity primarily as a part of its co-investment activities and in connection with certain legacy businesses. At both March 31, 2025 and December 31, 2024, the Company’s exposure to changes in fair value of such investments was approximately $24 million. The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.4 million in the carrying value of such investments as of both March 31, 2025 and December 31, 2024.

Current wording

Private Equity—The Company invests in private equity primarily as a part of its co-investment activities and in connection with certain legacy businesses. At June 30, 2025 and December 31, 2024, the Company’s exposure to changes in fair value of such investments was approximately $27 million and $24 million, respectively. The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.7 million and $2.4 million, respectively, in the carrying value of such investments as of June 30, 2025 and December 31, 2024.

Previous wording

We maintain an allowance for credit losses to provide coverage for expected losses from our receivables. At March 31, 2025, total receivables amounted to $683 million, net of an allowance for credit losses of $26 million. As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 78% and 22% of total receivables, respectively. At December 31, 2024, total receivables amounted to $754 million, net of an allowance for credit losses of $32 million. As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 85% and 15% of total receivables, respectively. See also “Critical Accounting Policies and Estimates—Revenue Recognition” above and Note 4 of Notes to Condensed Consolidated Financial Statements for additional information regarding receivables.

Current wording

We maintain an allowance for credit losses to provide coverage for expected losses from our receivables. At June 30, 2025, total receivables amounted to $755 million, net of an allowance for credit losses of $27 million. As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 77% and 23% of total receivables, respectively. At December 31, 2024, total receivables amounted to $754 million, net of an allowance for credit losses of $32 million. As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 85% and 15% of total receivables, respectively. See also “Critical Accounting Policies and Estimates—Revenue Recognition” above and Note 4 of Notes to Condensed Consolidated Financial Statements for additional information regarding receivables.