Lazard, Inc.
For the period ended Sep 30, 2026. Filed Oct 26, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 26, 2026
LAZ$38.31-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0001311370-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-26.
0001311370-26-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 302 previous paragraphs and 304 current paragraphs.
229 unchanged; 57 reworded; 15 added; 12 removed; 4 previous and 3 current paragraphs rearranged.
Tables are not compared: 26 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
(d)Represents intangible asset amortization expense associated with the acquisition of a business.
Current report
(a)Represents the effect of the periodic revaluation of the TRA liability.
Current report
(b)Adjusted operating income and adjusted operating income, as a percentage of adjusted net revenue are non-GAAP measures.
Current report
Operating income decreased $40 million, or 42%, as compared to the 2025 period.
Current report
Adjusted operating income decreased $15 million, or 14%, as compared to the 2025 period, and, as a percentage of adjusted net revenue, was 10.8% for the 2026 period, as compared to 14.0% in the 2025 period.
Current report
In the 2025 period, the benefit pursuant to tax receivable agreement obligation was $20 million resulting from the periodic revaluation of the TRA liability.
Current report
Net income attributable to noncontrolling interests decreased $2 million, or 77%, as compared to the 2025 period.
Current report
Adjusted operating income decreased $78 million, or 28%, as compared to the 2025 period, and, as a percentage of adjusted net revenue, was 9.1% for the 2026 period, as compared to 13.3% in the 2025 period.
Current report
In the 2025 period, the benefit pursuant to tax receivable agreement obligation was $20 million resulting from the periodic revaluation of the TRA liability.
Current report
Adjusted operating income was $64 million, a decrease of $33 million, or 34%, as compared to adjusted operating income of $97 million in the 2025 period, and, as a percentage of adjusted net revenue, was 13.8%, as compared to 23.0% in the 2025 period.
Current report
Adjusted non-compensation expense was substantially the same as compared to the 2025 period.
Current report
Asset Management adjusted operating income was $87 million, an increase of $14 million, or 18%, as compared to adjusted operating income of $74 million in the 2025 period, and, as a percentage of adjusted net revenue, was 26.4%, as compared to 25.1% in the 2025 period.
Current report
Asset Management adjusted operating income was $246 million, an increase of $45 million, or 22%, as compared to adjusted operating income of $201 million in the 2025 period, and, as a percentage of adjusted net revenue, was 25.4%, as compared to 24.4% in the 2025 period.
Current report
Adjusted compensation and benefits expense, including centrally managed costs, remained substantially the same as compared to the 2025 period.
Current report
Adjusted non-compensation expense, including centrally managed costs, remained substantially the same as compared to the 2025 period.
Removed paragraphs (12)
Previous report
(a)Adjusted operating income and adjusted operating income, as a percentage of adjusted net revenue are non-GAAP measures.
Previous report
Compensation and benefits expense increased $43 million, or 8%, as compared to the 2025 period.
Previous report
Operating income decreased $55 million, or 60%, as compared to the 2025 period.
Previous report
Adjusted operating income decreased $43 million, or 40%, as compared to the 2025 period, and, as a percentage of adjusted net revenue, was 8.3% for the 2026 period, as compared to 14.1% in the 2025 period.
Previous report
Net income attributable to noncontrolling interests increased $3 million, or 49%, as compared to the 2025 period.
Previous report
Operating income decreased $21 million, or 14%, as compared to the 2025 period.
Previous report
Adjusted operating income decreased $63 million, or 35%, as compared to the 2025 period, and, as a percentage of adjusted net revenue, was 8.1% for the 2026 period, as compared to 12.9% in the 2025 period.
Previous report
Net income attributable to noncontrolling interests increased $1 million, or 13%, as compared to the 2025 period.
Previous report
Adjusted operating income was $73 million, a decrease of $48 million, or 40%, as compared to adjusted operating income of $122 million in the 2025 period, and, as a percentage of adjusted net revenue, was 16.5%, as compared to 24.8% in the 2025 period.
Previous report
Asset Management adjusted operating income was $74 million, an increase of $9 million, or 14%, as compared to adjusted operating income of $65 million in the 2025 period, and, as a percentage of adjusted net revenue, was 22.5%, as compared to 24.3% in the 2025 period.
Previous report
Adjusted non-compensation expense, including centrally managed costs, was substantially the same as compared to the 2025 period.
Previous report
On July 22, 2026, the Board of Directors authorized additional share repurchases of $200 million, which expire as of December 31, 2028, bringing the total outstanding share repurchase authorization to approximately $257 million.
Reworded paragraphs (57)
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, 2025 (the “Form 10-K”). All references to “2026,” “2025,” “second quarter,” “first half” or “the period” refer to, as the context requires, the three month and six month periods ended June 30, 2026 and 2025.
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, 2025 (the “Form 10-K”). All references to “2026,” “2025,” “third quarter,” “first nine months” or “the period” refer to, as the context requires, the three month and nine month periods ended September 30, 2026 and 2025.
Previous wording
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions. Under certain circumstances, if the Purchase Agreement is terminated, the Company may be required to pay Campbell Lutyens a termination fee of $50 million.
Current wording
The transaction is expected to close in early November, subject to customary closing conditions.
Previous wording
We operate in a competitive, global environment. Geopolitical uncertainty, developments in international trade policies and practices, along with shifting domestic governmental priorities, have increased uncertainty relative to prior years. We believe our broad set of capabilities, diversified business model, and the competitive advantage provided by Lazard’s contextual alpha—our ability to incorporate geopolitical, regulatory, and macroeconomic insight into our advice—position us well to meet evolving client needs across varying economic environments. Unpredictability and the potential for related impacts, however, could create or exacerbate market volatility, contribute to weakened economic and business conditions, and reduce our clients’ ability to finalize decision-making or execute on investment priorities.
Current wording
We operate in a competitive, global environment. Geopolitical uncertainty, developments in international trade policies and practices, impact of higher interest rates, and AI uncertainty, along with shifting domestic governmental priorities, have increased uncertainty relative to prior years. We believe our broad set of capabilities, diversified business model, and the competitive advantage provided by Lazard’s contextual alpha—our ability to incorporate geopolitical, regulatory, and macroeconomic insight into our advice—position us well to meet evolving client needs across varying economic environments. Unpredictability and the potential for related impacts, however, could create or exacerbate market volatility, contribute to weakened economic and business conditions, and 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 half of 2026 as compared to the first half of 2025. The number of defaulting issuers was 64 in the first half of 2026, according to Moody’s Investors Service, Inc., as compared to 68 in the first half of 2025.
Current wording
Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first nine months of 2026 as compared to the first nine months of 2025. The number of defaulting issuers was 92 in the first nine months of 2026, according to Moody’s Investors Service, Inc., as compared to 101 in the first nine months of 2025.
Previous wording
Lazard’s Asset Management segment principally includes LAM, LFG, Lazard Frères Banque SA (“LFB”) and the Edgewater Funds (“Edgewater”). On February 13, 2026, the Company completed the sale of a controlling stake in the Edgewater management vehicles, resulting in the deconsolidation of the related entities. Asset Management net revenue is derived from fees for investment management and advisory services provided to clients. As noted above, the main driver of Asset Management net revenue is the level and product mix of AUM, which is generally influenced by the performance of the global equity markets and, to a lesser extent, fixed income markets as well as Lazard’s investment performance, which impacts its ability to successfully attract and retain assets. As a result, fluctuations (including timing thereof) in financial markets and client asset inflows and outflows for any reason have a direct effect on Asset Management net revenue and operating income. Asset Management fees are generally based on the level of AUM measured daily, monthly or quarterly, and an increase or reduction in AUM, due to market price fluctuations, currency fluctuations, changes in product mix, or net client asset flows will result in a corresponding increase or decrease in management fees. Our investment advisory contracts are generally terminable at any time or on notice of 30 days or less. Institutional and individual clients, and firms with which we have strategic alliances, can terminate their relationship with us, reduce the aggregate amount of AUM or shift their funds to other types of accounts with different rate structures for a number of reasons, including investment performance, changes in prevailing interest rates and financial market performance. Moreover, it is possible that awarded institutional mandates may not be funded in the amounts and at the times initially anticipated, or at all. In addition, as Lazard’s AUM includes significant amounts of assets that are denominated in currencies other than U.S. Dollars, changes in the value of the U.S. Dollar relative to foreign currencies will impact the value of Lazard’s AUM and the overall amount of management fees generated by the AUM. Fees vary with the type of assets managed and the vehicle in which they are managed, with higher fees earned on equity assets and alternative investment funds, such as hedge funds and private equity funds, and lower fees earned on fixed income and cash management products.
Current wording
Lazard’s Asset Management segment principally includes LAM, LFG, Lazard Frères Banque SA (“LFB”) and prior to February 13, 2026, the Edgewater Funds (“Edgewater”). On February 13, 2026, the Company completed the sale of a controlling stake in the Edgewater management vehicles, resulting in the deconsolidation of the related entities. Asset Management net revenue is derived from fees for investment management and advisory services provided to clients. As noted above, the main driver of Asset Management net revenue is the level and product mix of AUM, which is generally influenced by the performance of the global equity markets and, to a lesser extent, fixed income markets as well as Lazard’s investment performance, which impacts its ability to successfully attract and retain assets. As a result, fluctuations (including timing thereof) in financial markets and client asset inflows and outflows for any reason have a direct effect on Asset Management net revenue and operating income. Asset Management fees are generally based on the level of AUM measured daily, monthly or quarterly, and an increase or reduction in AUM, due to market price fluctuations, currency fluctuations, changes in product mix, or net client asset flows will result in a corresponding increase or decrease in management fees. Our investment advisory contracts are generally terminable at any time or on notice of 30 days or less. Institutional and individual clients, and firms with which we have strategic alliances, can terminate their relationship with us, reduce the aggregate amount of AUM or shift their funds to other types of accounts with different rate structures for a number of reasons, including investment performance, changes in prevailing interest rates and financial market performance. Moreover, it is possible that awarded institutional mandates may not be funded in the amounts and at the times initially anticipated, or at all. In addition, as Lazard’s AUM includes significant amounts of assets that are denominated in currencies other than U.S. Dollars, changes in the value of the U.S. Dollar relative to foreign currencies will impact the value of Lazard’s AUM and the overall amount of management fees generated by the AUM. Fees vary with the type of assets managed and the vehicle in which they are managed, with higher fees earned on equity assets and alternative investment funds, such as hedge funds and private equity funds, and lower fees earned on fixed income and cash management products.
Previous wording
(d)Adjusted non-compensation expense and adjusted non-compensation expense, as a percentage of adjusted net revenue are non-GAAP measures.
Current wording
(e)Adjusted non-compensation expense and adjusted non-compensation expense, as a percentage of adjusted net revenue are non-GAAP measures.
Previous wording
The Company’s quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality, the performance of equity markets and other factors. Accordingly, the revenue and profits in any particular quarter may not be indicative of future results. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.
Current wording
The Company’s quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality, the performance of equity markets and other factors.
Previous wording
Net revenue increased $12 million, or 1%, with adjusted net revenue increasing $17 million, or 2%, as compared to the 2025 period. Investment banking and other advisory fees decreased $45 million, or 9%, as compared to the 2025 period. Asset management fees, including incentive fees, increased $59 million, or 22%, as compared to the 2025 period. In the aggregate, interest income, other revenue and interest expense decreased $3 million as compared to the 2025 period.
Current wording
Net revenue increased $66 million, or 9%, with adjusted net revenue increasing $80 million, or 11%, as compared to the 2025 period. Investment banking and other advisory fees increased $42 million, or 10%, as compared to the 2025 period. Asset management fees, including incentive fees, increased $39 million, or 13%, as compared to the 2025 period. In the aggregate, interest income, other revenue and interest expense decreased $15 million as compared to the 2025 period.
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 $550 million, an increase of $45 million, or 9%, as compared to $504 million in the 2025 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 69.9% for the 2026 period, as compared to 65.5% for the 2025 period.
Current wording
Compensation and benefits expense increased $71 million, or 14%, as compared to the 2025 period. Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $562 million, an increase of $88 million, or 18%, as compared to $475 million in the 2025 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 69.9% for the 2026 period, as compared to 65.5% for the 2025 period.
Previous wording
Non-compensation expense, which includes $9 million of expenses related to the pending acquisition of Campbell Lutyens, increased $24 million, or 13%, as compared to the 2025 period. Adjusted non-compensation expense increased $14 million, or 9%, as compared to the 2025 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased fund administration and outsourced services and marketing and business development expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 21.8% for the 2026 period, as compared to 20.4% for the 2025 period.
Current wording
Non-compensation expense, which includes $4 million of expenses related to the pending acquisition of Campbell Lutyens, increased $15 million, or 9%, as compared to the 2025 period. Adjusted non-compensation expense increased $7 million, or 5%, as compared to the 2025 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased fund administration and outsourced services. The ratio of adjusted non-compensation expense to adjusted net revenue was 19.3% for the 2026 period, as compared to 20.5% for the 2025 period.
Previous wording
The provision for income taxes reflects an effective tax rate of 63.5%, as compared to 34.1% for the 2025 period. The change in the effective tax rate compared to the 2025 period principally relates to changes in the geographic mix of earnings and certain elevated factors, including the effect of a current period catch-up adjustment from the tax benefit related to the vesting of share-based incentive compensation awards in the first quarter of 2026.
Current wording
The provision for income taxes reflects an effective tax rate of 45.8%, as compared to 22.6% for the 2025 period. The change in the effective tax rate compared to the 2025 period principally relates to changes in the geographic mix of earnings partially offset by the impact of discrete items.
Previous wording
The Company reported net income attributable to Lazard of $5 million, as compared to net income attributable to Lazard of $55 million in the 2025 period.
Current wording
The Company reported net income attributable to Lazard of $29 million, as compared to net income attributable to Lazard of $71 million in the 2025 period.
Previous wording
Net revenue increased $120 million, or 8%, with adjusted net revenue increasing $46 million, or 3%, as compared to the 2025 period. Fee revenue from investment banking and other advisory activities decreased $48 million, or 6%, as compared to the 2025 period. Asset management fees, including incentive fees, increased $122 million, or 23%, as compared to the 2025 period. In the aggregate, interest income, other revenue and interest expense increased $46 million, as compared to the 2025 period primarily due to a non-cash gain of $76 million on the sale and deconsolidation of the Edgewater management vehicles in the 2026 period.
Current wording
Net revenue increased $186 million, or 8%, with adjusted net revenue increasing $126 million, or 6%, as compared to the 2025 period. Fee revenue from investment banking and other advisory activities decreased $6 million as compared to the 2025 period. Asset management fees, including incentive fees, increased $161 million, or 19%, as compared to the 2025 period. In the aggregate, interest income, other revenue and interest expense increased $31 million, as compared to the 2025 period primarily due to a non-cash gain of $76 million on the sale and deconsolidation of the Edgewater management vehicles in the 2026 period.
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 $1,020 million, an increase of $95 million, or 10%, as compared to $926 million in the 2025 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 69.9% for the 2026 period, as compared to 65.5% for the 2025 period.
Current wording
Compensation and benefits expense increased $176 million, or 12%, as compared to the 2025 period. Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $1,583 million, an increase of $182 million, or 13%, as compared to $1,400 million in the 2025 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 69.9% for the 2026 period, as compared to 65.5% for the 2025 period.
Previous wording
Non-compensation expense, which includes $11 million of expenses related to the pending acquisition of Campbell Lutyens, increased $36 million, or 10%, as compared to the 2025 period. Adjusted non-compensation expense increased $15 million, or 5%, as compared to the 2025 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased fund administration and outsourced services, technology and information services and marketing and business development expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 22.0% for the 2026 period, as compared to 21.6% for the 2025 period.
Current wording
Non-compensation expense, which includes $15 million of expenses related to the pending acquisition of Campbell Lutyens, increased $51 million, or 10%, as compared to the 2025 period. Adjusted non-compensation expense increased $22 million, or 5%, as compared to the 2025 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased fund administration and outsourced services, and marketing and business development expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 21.0% for the 2026 period, as compared to 21.2% for the 2025 period.
Previous wording
Asset Management adjusted operating income was $159 million, an increase of $31 million, or 25%, as compared to adjusted operating income of $128 million in the 2025 period, and, as a percentage of adjusted net revenue, was 24.8%, as compared to 24.0% in the 2025 period.
Current wording
Operating income decreased $61 million, or 25%, as compared to the 2025 period.
Previous wording
The provision for income taxes reflects an effective tax rate of 10.1%, as compared to 16.5% for the 2025 period. The change in the effective tax rate compared to the 2025 period principally relates to the impact of discrete tax benefits for share-based incentive compensation awards during the first quarter and changes in the geographic mix of earnings.
Current wording
The provision for income taxes reflects an effective tax rate of 20.9%, as compared to 18.9% for the 2025 period. The change in the effective tax rate compared to the 2025 period principally relates to the impact of discrete tax benefits for share-based incentive compensation awards during the first quarter and changes in the geographic mix of earnings.
Previous wording
The Company reported net income attributable to Lazard of $106 million, as compared to net income attributable to Lazard of $116 million in the 2025 period.
Current wording
The Company reported net income attributable to Lazard of $135 million, as compared to net income attributable to Lazard of $187 million in the 2025 period.
Previous wording
Financial Advisory net revenue decreased $55 million, or 6%, as compared to the 2025 period. Financial Advisory adjusted net revenue decreased $59 million, or 7%, as compared to the 2025 period. The decreases in Financial Advisory net revenue and adjusted net revenue reflected lower fees from M&A transactions as compared to the 2025 period.
Current wording
Financial Advisory net revenue increased $42 million, or 10%, as compared to the 2025 period. Financial Advisory adjusted net revenue increased $42 million, or 10%, as compared to the 2025 period. The increases in Financial Advisory net revenue and adjusted net revenue reflected higher fees from M&A transactions with fees of $5 million or more, as compared to the 2025 period.
Previous wording
Adjusted compensation and benefits expense increased $26 million, or 5%, as compared to the 2025 period, primarily driven by our ongoing investment in strategic senior hires.
Current wording
Adjusted compensation and benefits expense increased $71 million, or 26%, as compared to the 2025 period primarily driven by our ongoing investment in strategic senior hires.
Previous wording
Adjusted non-compensation expense increased $7 million, or 13%, as compared to the 2025 period primarily due to an increase in travel and entertainment.
Current wording
Adjusted non-compensation expense increased $4 million, or 8%, as compared to the 2025 period primarily due to investments in technology and an increase in travel and entertainment.
Previous wording
Financial Advisory net revenue decreased $47 million, or 9%, as compared to the 2025 period. Financial Advisory adjusted net revenue decreased $46 million, or 9%, as compared to the 2025 period. The decreases in Financial Advisory net revenue and adjusted net revenue reflected lower fees from M&A transactions as compared to the 2025 period.
Current wording
Financial Advisory net revenue decreased $13 million, or 1%, as compared to the 2025 period. Financial Advisory adjusted net revenue decreased $17 million, or 1%, as compared to the 2025 period. The decreases in Financial Advisory net revenue and adjusted net revenue reflected lower fees from M&A transactions as compared to the 2025 period.
Previous wording
Adjusted compensation and benefits expense decreased $4 million, or 1%, as compared to the 2025 period, as increases related to our ongoing investment in strategic senior hires were more than offset by the effect of reduced revenues.
Current wording
Adjusted compensation and benefits expense increased $97 million, or 12%, as compared to the 2025 period, primarily driven by our ongoing investment in strategic senior hires.
Previous wording
Adjusted non-compensation expense increased $5 million, or 5%, as compared to the 2025 period primarily due to an increase in travel and entertainment and recruitment fees.
Current wording
Adjusted non-compensation expense increased $9 million, or 6%, as compared to the 2025 period primarily due to an increase in travel and entertainment and recruitment fees and technology information services.
Previous wording
Adjusted operating income was $109 million, a decrease of $90 million, or 45%, as compared to adjusted operating income of $199 million in the 2025 period, and, as a percentage of adjusted net revenue, was 13.5%, as compared to 23.1% in the 2025 period.
Current wording
Adjusted operating income was $173 million, a decrease of $123 million, or 42%, as compared to adjusted operating income of $296 million in the 2025 period, and, as a percentage of adjusted net revenue, was 13.7%, as compared to 23.1% in the 2025 period.
Previous wording
Total AUM at June 30, 2026 was $285 billion, an increase of $31 billion, or 12%, as compared to total AUM of $254 billion at December 31, 2025 primarily due to market appreciation and net inflows and an increase attributable to acquiring a controlling interest in Elaia Partners, a venture capital asset management entity (“Elaia”), partially offset by foreign exchange depreciation and the sale and deconsolidation of the Edgewater management vehicles. Average AUM for the second quarter of 2026 increased 17% as compared to the three month period ended June 30, 2025, and average AUM for the first six months of 2026 increased 16% as compared to the six month period ended June 30, 2025.
Current wording
Total AUM at September 30, 2026 was $284 billion, an increase of $30 billion, or 12%, as compared to total AUM of $254 billion at December 31, 2025 primarily due to market appreciation and net inflows and an increase attributable to acquiring a controlling interest in Elaia Partners, a venture capital asset management entity (“Elaia”), partially offset by foreign exchange depreciation and the sale and deconsolidation of the Edgewater management vehicles. Average AUM for the third quarter of 2026 increased 11% as compared to the three month period ended September 30, 2025, and average AUM for the first nine months of 2026 increased 14% as compared to the nine month period ended September 30, 2025.
Previous wording
As of both June 30, 2026 and December 31, 2025, approximately 46% of our AUM was managed on behalf of institutional clients, including corporations, labor unions, pension funds, insurance companies, Endowments and Foundations (E&F)/Healthcare and also includes certain Family Office clients. As of June 30, 2026, approximately 45% of our AUM was managed on behalf of financial intermediary clients, including banks, mutual fund sponsors, sub-advisory relationships, broker-dealers, wealth platforms, registered investment advisors (RIAs), and other investors in pooled vehicles as compared to approximately 44% as of December 31, 2025. As of June 30, 2026, approximately 9% of our AUM was managed on behalf of individual client relationships, compared to approximately 10% as of December 31, 2025.
Current wording
As of September 30, 2026, approximately 44% of our AUM was managed on behalf of institutional clients, including corporations, labor unions, pension funds, insurance companies, Endowments and Foundations (E&F)/Healthcare and also includes certain Family Office clients as compared to approximately 46% as of December 31, 2025. As of September 30, 2026, approximately 47% of our AUM was managed on behalf of financial intermediary clients, including banks, mutual fund sponsors, sub-advisory relationships, broker-dealers, wealth platforms, registered investment advisors (RIAs), and other investors in pooled vehicles as compared to approximately 44% as of December 31, 2025. As of September 30, 2026, approximately 9% of our AUM was managed on behalf of individual client relationships, compared to approximately 10% as of December 31, 2025.
Previous wording
The following is a summary of changes in AUM by asset class for the three month and six month periods ended June 30, 2026 and 2025:
Current wording
The following is a summary of changes in AUM by asset class for the three month and nine month periods ended September 30, 2026 and 2025:
Previous wording
For the six months ended June 30, 2026, net flows were primarily driven by the Global/International Equity and Alternative Investments platforms.
Current wording
For the three months ended September 30, 2026, net flows were primarily driven by International and Global Equity platforms.
Previous wording
For the three months ended June 30, 2026, net flows were primarily driven by the US Equity and Alternative Investments platforms.
Current wording
For the nine months ended September 30, 2026, net flows were primarily driven by the Global Equity, Emerging Markets Equity and Alternative Investments platforms.
Previous wording
Average AUM for the three month and six month periods ended June 30, 2026 and 2025 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 nine month periods ended September 30, 2026 and 2025 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 increased $59 million, or 20%, as compared to the 2025 period. Asset Management adjusted net revenue increased $63 million, or 23%, as compared to the 2025 period. Management fees, on an adjusted basis, were $310 million, an increase of $58 million, or 23%, as compared to $252 million in the 2025 period primarily due to an increase in average AUM and product mix. Incentive fees, on an adjusted basis, were $5 million, an increase of $1 million as compared to $4 million in the 2025 period. Other revenue, on an adjusted basis, was $16 million, an increase of $3 million as compared to $13 million in the 2025 period.
Current wording
Asset Management net revenue increased $30 million, or 9%, as compared to the 2025 period. Asset Management adjusted net revenue increased $36 million, or 12%, as compared to the 2025 period. Management fees, on an adjusted basis, were $321 million, an increase of $49 million, or 18%, as compared to $272 million in the 2025 period primarily due to an increase in average AUM and product mix. Incentive fees, on an adjusted basis, were $1 million, a decrease of $8 million as compared to $9 million in the 2025 period. Other revenue, on an adjusted basis, was $8 million, a decrease of $6 million as compared to $14 million in the 2025 period.
Previous wording
Adjusted compensation and benefits expense increased $46 million, or 33%, as compared to the 2025 period primarily driven by increased adjusted net revenue.
Current wording
Adjusted compensation and benefits expense increased $22 million, or 14%, as compared to the 2025 period primarily driven by increased adjusted net revenue.
Previous wording
Asset Management net revenue, which included a non-cash gain of $76 million on the sale and deconsolidation of the Edgewater management vehicles in the first quarter of 2026, increased $180 million, or 31%, as compared to the 2025 period. Asset Management adjusted net revenue increased $107 million, or 20%, as compared to the 2025 period. Management fees, on an adjusted basis, were $606 million, an increase of $116 million, or 24%, as compared to $490 million in the 2025 period primarily due to an increase in average AUM and product mix. Incentive fees, on an adjusted basis, were $17 million, an increase of $4 million as compared to $13 million in the 2025 period. Other revenue, on an adjusted basis, was $17 million, a decrease of $13 million as compared to $31 million in the 2025 period.
Current wording
Asset Management net revenue, which included a non-cash gain of $76 million on the sale and deconsolidation of the Edgewater management vehicles in the first quarter of 2026, increased $210 million, or 23%, as compared to the 2025 period. Asset Management adjusted net revenue increased $143 million, or 17%, as compared to the 2025 period. Management fees, on an adjusted basis, were $927 million, an increase of $166 million, or 22%, as compared to $762 million in the 2025 period primarily due to an increase in average AUM and product mix. Incentive fees, on an adjusted basis, were $18 million, a decrease of $3 million as compared to $21 million in the 2025 period. Other revenue, on an adjusted basis, was $25 million, a decrease of $19 million as compared to $44 million in the 2025 period.
Previous wording
Adjusted compensation and benefits expense increased $63 million, or 22%, as compared to the 2025 period primarily driven by increased adjusted net revenue.
Current wording
Adjusted compensation and benefits expense increased $86 million, or 20%, as compared to the 2025 period primarily driven by increased adjusted net revenue.
Previous wording
Adjusted non-compensation expense increased $8 million, or 13%, as compared to the 2025 period primarily due to higher mutual fund servicing fees, which were largely driven by an increase in AUM.
Current wording
Adjusted non-compensation expense increased $13 million, or 7%, as compared to the 2025 period primarily due to higher mutual fund servicing fees, which were largely driven by an increase in AUM.
Previous wording
Corporate net revenue and Corporate adjusted net revenue were substantially the same as compared to the 2025 period.
Current wording
Corporate net revenue decreased $6 million, or 97%, and Corporate adjusted net revenue increased $2 million, or 18% , as compared to the 2025 period.
Previous wording
Adjusted compensation and benefits expense, including centrally managed costs, increased $6 million, or 7%, as compared to the 2025 period.
Current wording
Adjusted compensation and benefits expense, including centrally managed costs, decreased $6 million, or 12%, as compared to the 2025 period.
Previous wording
Adjusted non-compensation expense, including centrally managed costs, decreased $3 million, or 3%, as compared to the 2025 period.
Current wording
Adjusted non-compensation expense, including centrally managed costs, increased $3 million, or 8%, as compared to the 2025 period.
Previous wording
Corporate net revenue decreased $5 million as compared to the 2025 period. Corporate adjusted net revenue decreased $1 million, or 7%, as compared to the 2025 period.
Current wording
Corporate net revenue decreased $11 million as compared to the 2025 period. Corporate adjusted net revenue remained substantially the same as compared to the 2025 period.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Accordingly, the revenue and profits in any particular quarter may not be indicative of future results. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.
Current report — wording carried from elsewhere
Net income attributable to noncontrolling interests decreased $1 million, or 8%, as compared to the 2025 period.
Current report — wording carried from elsewhere
overnight reverse repurchase agreements and (iv) in short-term certificates of deposit from such banks. Cash and cash equivalents are continuously monitored. On a regular basis, management reviews its investment profile as well as the credit profile of its list of depositor banks in order to adjust any deposit or investment thresholds as necessary.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Compensation and benefits expense increased $105 million, or 11%, as compared to the 2025 period.
Previous report — wording carried elsewhere
(a)Related to the acquisition of a controlling interest in and consolidation of Elaia.
Previous report — wording carried elsewhere
Adjusted non-compensation expense increased $13 million, or 10%, as compared to the 2025 period primarily due to higher mutual fund servicing fees, which were largely driven by an increase in AUM, and investments in technology.
Previous report — wording carried elsewhere
Adjusted compensation and benefits expense, including centrally managed costs, increased $4 million, or 8%, as compared to the 2025 period.