Evercore Inc.

Previous wording

Income from Equity Method Investments decreased $1.6 million, or 49%, compared to the six months ended June 30, 2024, driven by the sale of the remaining portion of our interest in ABS in the third quarter of 2024. This decrease was partially offset by higher earnings from Atalanta Sosnoff in 2025. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Current wording

•A gain on the sale of the remaining portion of our interest in ABS in the third quarter of 2024. See Note 8 to our unaudited condensed consolidated financial statements for further information

Previous wording

Interest Expense includes interest expense associated with our Notes Payable and lines of credit.

Current wording

Interest Expense includes interest expense associated with our Notes Payable, lines of credit and other financing arrangements.

Previous wording

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 K-P Units issued by Evercore LP and certain RSU awards. See Note 15 to our unaudited condensed consolidated financial statements for further information.

Current wording

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 K-P Units issued by Evercore LP and certain RSU and deferred cash awards. See Note 15 to our unaudited condensed consolidated financial statements for further information.

Previous wording

The following is a discussion of our results of operations for the three and six months ended June 30, 2025 and 2024. 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.

Current wording

The following is a discussion of our results of operations for the three and nine months ended September 30, 2025 and 2024. 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.

Previous wording

(A)Includes the reclassification of $9.9 million and $18.9 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" for the three and six months ended June 30, 2024, respectively, to conform to the current presentation. See Note 2 to our unaudited condensed consolidated financial statements for further information.

Current wording

(A)Includes the reclassification of $10.4 million and $29.3 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" for the three and nine months ended September 30, 2024, respectively, to conform to the current presentation. See Note 2 to our unaudited condensed consolidated financial statements for further information.

Previous wording

As of June 30, 2025 and 2024, we employed approximately 2,455 and 2,330 people, respectively.

Current wording

As of September 30, 2025 and 2024, we employed approximately 2,525 and 2,395 people, respectively.

Previous wording

Net Income Attributable to Evercore Inc. was $97.2 million for the three months ended June 30, 2025, an increase of $23.4 million, or 32%, compared to $73.8 million for the three months ended June 30, 2024. The changes in our operating results during these periods are described below.

Current wording

Net Income Attributable to Evercore Inc. was $144.6 million for the three months ended September 30, 2025, an increase of $66.2 million, or 84%, compared to $78.4 million for the three months ended September 30, 2024. The changes in our operating results during these periods are described below.

Previous wording

Net Revenues were $833.8 million for the three months ended June 30, 2025, an increase of $144.6 million, or 21%, versus Net Revenues of $689.2 million for the three months ended June 30, 2024. Advisory Fees increased $129.5 million, or 23%, Commissions and Related Revenue increased $5.1 million, or 10%, and Underwriting Fees increased $1.2 million, or 4%, compared to the three months ended June 30, 2024. Asset Management and Administration Fees increased $1.5 million, or 8%, compared to the three months ended June 30, 2024. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Current wording

Net Revenues were $1.04 billion for the three months ended September 30, 2025, an increase of $304.7 million, or 41%, versus Net Revenues of $734.2 million for the three months ended September 30, 2024. Advisory Fees increased $290.7 million, or 49%, Commissions and Related Revenue increased $8.3 million, or 15%, and Underwriting Fees decreased $0.4 million, or 1%, compared to the three months ended September 30, 2024. Asset Management and Administration Fees increased $1.9 million, or 9%, compared to the three months ended September 30, 2024. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Previous wording

Other Revenue, Including Interest and Investments, was $29.1 million for the three months ended June 30, 2025, an increase of $7.4 million, or 34%, versus $21.8 million for the three months ended June 30, 2024, primarily reflecting higher performance of our investment funds portfolio, partially offset by lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Current wording

Other Revenue, Including Interest and Investments, was $33.3 million for the three months ended September 30, 2025, an increase of $7.1 million, or 27%, versus $26.2 million for the three months ended September 30, 2024, primarily reflecting higher performance of our investment funds portfolio, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by higher portfolio balances during the third quarter of 2025 compared to 2024. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous wording

Employee Compensation and Benefits Expense was $548.6 million for the three months ended June 30, 2025, an increase of $89.7 million, or 20%, versus $459.0 million for the three months ended June 30, 2024. The increase in the amount of compensation recognized for the three months ended June 30, 2025 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 65.8% for the three months ended June 30, 2025, compared to 66.6% for the three months ended June 30, 2024.

Current wording

Employee Compensation and Benefits Expense was $680.7 million for the three months ended September 30, 2025, an increase of $192.6 million, or 39%, versus $488.0 million for the three months ended September 30, 2024. The increase in the amount of compensation recognized for the three months ended September 30, 2025 principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires. Employee Compensation and Benefits Expense as a percentage of Net Revenues was 65.5% for the three months ended September 30, 2025, compared to 66.5% for the three months ended September 30, 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.

Previous wording

Non-compensation expenses were $134.8 million for the three months ended June 30, 2025, an increase of $12.8 million, or 10%, versus $122.0 million for the three months ended June 30, 2024. The increase was primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services and license fees in the second quarter of 2025, 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 per employee were approximately $55.6 thousand for the three months ended June 30, 2025, versus $53.6 thousand for the three months ended June 30, 2024, a 4% increase.

Current wording

Non-compensation expenses were $142.0 million for the three months ended September 30, 2025, an increase of $25.1 million, or 21%, versus $116.9 million for the three months ended September 30, 2024. 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 third quarter of 2025, an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, and an increase in occupancy and equipment rental expense, primarily related to an increase in office space. Non-Compensation expenses per employee were approximately $57.0 thousand for the three months ended September 30, 2025, versus $49.5 thousand for the three months ended September 30, 2024, a 15% increase.

Previous wording

ABS and the redemption of our interest in Luminis during the third quarter of 2024. This decrease was partially offset by higher earnings from Atalanta Sosnoff during the three months ended June 30, 2025. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments was $1.1 million for the three months ended September 30, 2025 and 2024, reflecting higher earnings from Atalanta Sosnoff during the three months ended September 30, 2025, partially offset by lower earnings from Seneca Evercore during the three months ended September 30, 2025 and lower income from Luminis following the redemption of our interest during the third quarter of 2024. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Previous wording

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 provision for income taxes for the three months ended June 30, 2024 was $28.4 million, which reflected an effective tax rate of 25.8%. The increase in the provision for income taxes for the three months ended June 30, 2025 principally reflects an increase in non-deductible expenses and state and local apportionment adjustments.

Current wording

The provision for income taxes for the three months ended September 30, 2025 was $59.8 million, which reflected an effective tax rate of 27.5%. The provision for income taxes for the three months ended September 30, 2024 was $35.0 million, which reflected an effective tax rate of 28.4%. The increase in the provision for income taxes for the three months ended September 30, 2025 is primarily attributable to a $94.2 million increase in pre-tax income, as well as an increase in non-deductible expenses and state and local apportionment adjustments.

Previous wording

Net Income Attributable to Noncontrolling Interest was $9.7 million for the three months ended June 30, 2025, compared to $8.0 million for the three months ended June 30, 2024. The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at Evercore LP during the three months ended June 30, 2025. See Note 13 to our unaudited condensed consolidated financial statements for further information.

Current wording

Net Income Attributable to Noncontrolling Interest was $12.9 million for the three months ended September 30, 2025, compared to $9.7 million for the three months ended September 30, 2024. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the three months ended September 30, 2025. See Note 13 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Net Income Attributable to Evercore Inc. was $243.4 million for the six months ended June 30, 2025, an increase of $83.9 million, or 53%, compared to $159.5 million for the six months ended June 30, 2024. The changes in our operating results during these periods are described below.

Current wording

Net Income Attributable to Evercore Inc. was $388.0 million for the nine months ended September 30, 2025, an increase of $150.1 million, or 63%, compared to $237.8 million for the nine months ended September 30, 2024. The changes in our operating results during these periods are described below.

Previous wording

Net Revenues were $1.53 billion for the six months ended June 30, 2025, an increase of $258.6 million, or 20%, versus Net Revenues of $1.27 billion for the six months ended June 30, 2024. Advisory Fees increased $257.0 million, or 26%, Commissions and Related Revenue increased $11.9 million, or 12%, and Underwriting Fees were flat compared to the six months ended June 30, 2024. Asset Management and Administration Fees increased $3.8 million, or 10%, compared to the six months ended June 30, 2024. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Current wording

Net Revenues were $2.57 billion for the nine months ended September 30, 2025, an increase of $563.3 million, or 28%, versus Net Revenues of $2.00 billion for the nine months ended September 30, 2024. Advisory Fees increased $547.8 million, or 34%, Commissions and Related Revenue increased $20.2 million, or 13%, and Underwriting Fees decreased $0.5 million compared to the nine months ended September 30, 2024. Asset Management and Administration Fees increased $5.7 million, or 10%, compared to the nine months ended September 30, 2024. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Previous wording

Other Revenue, Including Interest and Investments, was $40.5 million for the six months ended June 30, 2025, a decrease of $14.0 million, or 26%, versus $54.5 million for the six months ended June 30, 2024, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Current wording

Other Revenue, Including Interest and Investments, was $73.7 million for the nine months ended September 30, 2025, a decrease of $7.0 million, or 9%, versus $80.7 million for the nine months ended September 30, 2024, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by lower rates during 2025 compared to 2024. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous wording

Employee Compensation and Benefits Expense was $1.01 billion for the six months ended June 30, 2025, an increase of $161.8 million, or 19%, versus $846.6 million for the six months ended June 30, 2024. The increase in the amount of compensation recognized for the six months ended June 30, 2025 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.0% for the six months ended June 30, 2025, compared to 66.7% for the six months ended June 30, 2024.

Current wording

Employee Compensation and Benefits Expense was $1.69 billion for the nine months ended September 30, 2025, an increase of $354.4 million, or 27%, versus $1.33 billion for the nine months ended September 30, 2024. The increase in the amount of compensation recognized for the nine months ended September 30, 2025 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 as a percentage of Net Revenues was 65.8% for the nine months ended September 30, 2025, compared to 66.6% for the nine months ended September 30, 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.

Previous wording

Non-compensation expenses were $258.7 million for the six months ended June 30, 2025, an increase of $27.6 million, or 12%, versus $231.0 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services, consulting costs and license fees, 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 per employee were approximately $107.4 thousand for the six months ended June 30, 2025, versus $102.7 thousand for the six months ended June 30, 2024, a 5% increase.

Current wording

Non-compensation expenses were $400.7 million for the nine months ended September 30, 2025, an increase of $52.7 million, or 15%, versus $348.0 million for the nine months ended September 30, 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 per employee were approximately $164.3 thousand for the nine months ended September 30, 2025, versus $152.2 thousand for the nine months ended September 30, 2024, an 8% increase.

Previous wording

Income from Equity Method Investments was $1.7 million for the six months ended June 30, 2025, a decrease of $2.5 million, or 59%, versus $4.2 million for the six months ended June 30, 2024, primarily reflecting the sale of our interest in ABS and the redemption of our interest in Luminis during the third quarter of 2024. This decrease was partially offset by higher earnings from Atalanta Sosnoff in 2025. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments was $2.8 million for the nine months ended September 30, 2025, a decrease of $2.5 million, or 47%, versus $5.3 million for the nine months ended September 30, 2024, primarily reflecting the sale 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 in 2025. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Previous wording

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 provision for income taxes for the six months ended June 30, 2024 was $21.7 million, which reflected an effective tax rate of 11.0%. The provision for income taxes for the six months ended June 30, 2025 and 2024 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 $75.0 million and $30.9 million, respectively, which resulted in a reduction in the effective tax rate of

Current wording

The provision for income taxes for the nine months ended September 30, 2025 was $62.3 million, which reflected an effective tax rate of 13.0%. The provision for income taxes for the nine months ended September 30, 2024 was $56.7 million, which reflected an effective tax rate of 17.7%. The provision for income taxes for the nine months ended September 30, 2025 and 2024 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 $76.4 million and $32.0 million, respectively, which resulted in a reduction in the effective tax rate of 15.9 and 10.0 percentage points for the nine months ended September 30, 2025 and 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 in 2025.

Previous wording

Net Income Attributable to Noncontrolling Interest was $17.3 million for the six months ended June 30, 2025, compared to $15.4 million for the six months ended June 30, 2024. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the six months ended June 30, 2025. See Note 13 to our unaudited condensed consolidated financial statements for further information.

Current wording

Net Income Attributable to Noncontrolling Interest was $30.3 million for the nine months ended September 30, 2025, compared to $25.1 million for the nine months ended September 30, 2024. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the nine months ended September 30, 2025. See Note 13 to our unaudited condensed consolidated financial statements for further information.

Previous wording

(1)Includes interest expense on Notes Payable and lines of credit of $4.2 million and $8.4 million for each of the three and six months ended June 30, 2025 and 2024, respectively.

Current wording

(1)Includes interest expense on Notes Payable, lines of credit and other financing arrangements of $7.1 million and $15.5 million for the three and nine months ended September 30, 2025, respectively, and $4.2 million and $12.6 million for the three and nine months ended September 30, 2024, respectively.

Previous wording

(2)Equity in Seneca Evercore and Luminis (through September 2024) is classified within Income (Loss) from Equity Method Investments.

Current wording

(3)Equity in Seneca Evercore and Luminis (through September 2024) is classified within Income (Loss) from Equity Method Investments.

Previous wording

(A)Includes the reclassification of $9.6 million and $18.4 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Banking & Equities segment for the three and six months ended June 30, 2024, respectively, to conform to the current presentation. See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.

Current wording

(A)Includes the reclassification of $10.2 million and $28.6 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Banking & Equities segment for the three and nine months ended September 30, 2024, respectively, to conform to the current presentation. See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.

Previous wording

The following table summarizes Evercore statistics for the three and six months ended June 30, 2025 and 2024.

Current wording

The following table summarizes Evercore statistics for the three and nine months ended September 30, 2025 and 2024.

Previous wording

Net Revenues were $812.2 millionfor the three months ended June 30, 2025, an increase of $142.2 million, or 21%, versus $670.0 millionfor the three months ended June 30, 2024. Theincrease in revenues for the three months ended June 30, 2025 was primarily driven by an increase of$129.5 million, or 23%, in Advisory Fees, reflecting an increase in revenue during the second quarter of 2025 across both M&A and non-M&A assignments, as well as an increase in revenue earned from large transactions during the second quarter of 2025. Commissions and Related Revenue increased$5.1 million, or 10%, compared to thethree months ended June 30, 2024, primarily reflecting higher trading commissions driven by increased trading volume during the second quarter of 2025. Underwriting Fees increased$1.2 million, or 4%, compared to thethree months ended June 30, 2024, reflecting an increase in the average fee size of the transactions we participated in during the second quarter of 2025. Other Revenue, net, increased$6.4 million, or 36%, compared to thethree months ended June 30, 2024, primarily reflecting higher performance of our investment funds portfolio, partially offset by lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Current wording

Net Revenues were $1.02 billionfor the three months ended September 30, 2025, an increase of $303.4 million, or 43%, versus $712.8 millionfor the three months ended September 30, 2024. Theincrease in revenues for the three months ended September 30, 2025 was primarily driven by an increase of$290.7 million, or 49%, in Advisory Fees, reflecting an increase in revenue during the third quarter of 2025 across both M&A and non-M&A assignments, as well as an increase in revenue earned from large transactions during the third quarter of 2025. Commissions and Related Revenue increased$8.3 million, or 15%, compared to thethree months ended September 30, 2024, primarily reflecting higher trading commissions driven by increased trading volume and higher subscription fees during the third quarter of 2025. Underwriting Fees decreased$0.4 million, or 1%, compared to thethree months ended September 30, 2024, reflecting a decrease in the number of transactions we participated in, partially offset by an increase in the average fee size of the transactions we participated in during the third quarter of 2025. Other Revenue, net, increased$4.8 million, or 23%, compared to thethree months ended September 30, 2024, primarily reflecting higher performance of our investment funds portfolio, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by higher portfolio balances during the third quarter of 2025 compared to 2024. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program. These increases were partially offset by an increase in interest expense primarily related to the issuance of new senior notes in July 2025.

Previous wording

Non-compensation expenses were$130.8 million for the three months ended June 30, 2025, an increase of $12.5 million, or 11%, versus $118.3 million for the three months ended June 30, 2024. 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 research services and license fees in the second quarter of 2025, 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.

Current wording

Non-compensation expenses were$137.8 million for the three months ended September 30, 2025, an increase of $24.7 million, or 22%, versus $113.1 million for the three months ended September 30, 2024. 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 third quarter of 2025, an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, and an increase in occupancy and equipment rental expense, primarily related to an increase in office space.

Previous wording

Net Revenues were $1.49 billion forthe six months ended June 30, 2025, an increase of $255.0 million, or 21%, versus $1.23 billion forthe six months ended June 30, 2024. Theincrease in revenues for the six months ended June 30, 2025 was primarily driven by an increase of$257.0 million, or 26%, in Advisory Fees, reflecting an increase in revenue during 2025 across both M&A and non-M&A assignments, as well as an increase in revenue earned from large transactions during 2025. Commissions and Related Revenue increased$11.9 million, or 12%, compared tothe six months ended June 30, 2024, primarily reflecting higher trading commissions driven by increased trading volume during 2025. Underwriting Fees were flat compared tothe six months ended June 30, 2024. Other Revenue, net, decreased$13.9 million, or 30%, compared tothe six months ended June 30, 2024, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Current wording

Net Revenues were $2.50 billion forthe nine months ended September 30, 2025, an increase of $558.4 million, or 29%, versus $1.94 billion forthe nine months ended September 30, 2024. Theincrease in revenues for the nine months ended September 30, 2025 was primarily driven by an increase of$547.8 million, or 34%, in Advisory Fees, reflecting an increase in revenue during 2025 across both M&A and non-M&A assignments, as well as an increase in revenue earned from large transactions during 2025. Commissions and Related Revenue increased$20.2 million, or 13%, compared tothe nine months ended September 30, 2024, primarily reflecting higher trading commissions driven by increased trading volume and higher subscription fees during 2025. Underwriting Fees decreased $0.5 million compared tothe nine months ended September 30, 2024, reflecting a decrease in the number of transactions we participated in, offset by an increase in the average fee size of the transactions we participated in during 2025. Other Revenue, net, decreased$9.1 million, or 14%, compared tothe nine months ended September 30, 2024, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills, driven by lower rates during 2025 compared to 2024. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program. The decrease was also partially attributed to an increase in interest expense primarily related to the issuance of new senior notes in July 2025.

Previous wording

Non-compensation expenses were$250.5 million for the six months ended June 30, 2025, an increase of $26.7 million, or 12%, versus $223.9 million for the six months ended June 30, 2024. 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 research services, consulting costs and license fees, 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.

Current wording

Non-compensation expenses were$388.4 million for the nine months ended September 30, 2025, an increase of $51.4 million, or 15%, versus $336.9 million for the nine months ended September 30, 2024. 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 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.

Previous wording

(1)Equity in Atalanta Sosnoff and ABS (through July 2024) is classified as Income from Equity Method Investments.

Current wording

(2)Equity in Atalanta Sosnoff and ABS (through July 2024) is classified as Income from Equity Method Investments.

Previous wording

(A)Includes the reclassification of $0.3 million and $0.5 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Management segment for the three and six months ended June 30, 2024, respectively, to conform to the current presentation. See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.

Current wording

(A)Includes the reclassification of $0.3 million and $0.7 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Management segment for the three and nine months ended September 30, 2024, respectively, to conform to the current presentation. See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.

Previous wording

AUM in our Wealth Management business of $14.5 billion at June 30, 2025 increased $0.6 billion, or 4%, compared to $13.9 billion at December 31, 2024. 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 both the 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% of Level 1 investments, 19% of Level 2 investments and 4% of Level 3 investments as of June 30, 2025 and December 31, 2024.

Current wording

AUM in our Wealth Management business of $15.4 billion at September 30, 2025 increased $1.5 billion, or 10%, compared to $13.9 billion at December 31, 2024. 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 both the 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% of Level 1 investments, 19% of Level 2 investments and 4% of Level 3 investments as of September 30, 2025 and December 31, 2024.

Previous wording

The following table summarizes AUM activity for Wealth Management for the six months ended June 30, 2025:

Current wording

The following table summarizes AUM activity for Wealth Management for the nine months ended September 30, 2025:

Previous wording

For the six months ended June 30, 2025, AUM for Wealth Management increased 4%, reflecting a 3% increase due to market appreciation and a 1% increase due to net inflows. Performance as of June 30, 2025 reflected:

Current wording

For the nine months ended September 30, 2025, AUM for Wealth Management increased 10%, reflecting an 8% increase from market appreciation and a 2% increase from net inflows. Performance as of September 30, 2025 reflected:

Previous wording

•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 7% and 5%, respectively

Current wording

•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 8% and 4%, respectively

Previous wording

◦The S&P 500 was up approximately 15% and 20% on a 1 and 3-year basis, respectively

Current wording

◦The S&P 500 was up approximately 18% and 25% on a 1 and 3-year basis, respectively

Previous wording

•Wealth Management lagged the fixed income composite on a 1-year basis by approximately 0.9% and outperformed the fixed income composite on a 3-year basis by approximately 0.01%

Current wording

•Wealth Management lagged the fixed income composite on a 1 and 3-year basis by approximately 0.4% and 0.2%, respectively

Previous wording

◦The fixed income composite was up approximately 4% and 2% on a 1 and 3-year basis, respectively

Current wording

◦The fixed income composite was up approximately 3% and 4% on a 1 and 3-year basis, respectively

Previous wording

•The S&P 500 and the fixed income composite were up approximately 6% and 2%, respectively, for the six months ended June 30, 2025

Current wording

•The S&P 500 and the fixed income composite were up approximately 15% and 4%, respectively, for the nine months ended September 30, 2025