Evercore Inc.

Previous wording

•Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments

Current wording

•Gains (losses) resulting from foreign currency exchange rate fluctuations

Previous wording

Our share of the income (loss) from our equity interests in Atalanta Sosnoff and Seneca Evercore are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited Condensed Consolidated Statements of Operations. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Current wording

Our share of the income (loss) from our equity interests in Atalanta Sosnoff and Seneca Evercore is included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited Condensed Consolidated Statements of Operations. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Previous wording

We account for income taxes in accordance with ASC 740,"Income Taxes", which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision (Benefit) for Income Taxes. In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment. See Note 18 to our unaudited condensed consolidated financial statements for further information.

Current wording

We account for income taxes in accordance with ASC 740,"Income Taxes", which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision for Income Taxes. In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment. See Note 18 to our unaudited condensed consolidated financial statements for further information.

Previous wording

The following is a discussion of our results of operations for the three months ended March 31, 2026 and 2025. For a more detailed discussion of the factors that affected the revenue and operating expenses of our Investment Banking & Equities and Investment Management business segments in these periods, see the discussion in "Business Segments" below.

Current wording

The following is a discussion of our results of operations for the three and six months ended June 30, 2026 and 2025. For a more detailed discussion of the factors that affected the revenue and operating expenses of our Investment Banking & Equities and Investment Management business segments in these periods, see the discussion in "Business Segments" below.

Previous wording

As of March 31, 2026 and 2025, we employed approximately 2,635 and 2,395 people, respectively.

Current wording

As of June 30, 2026 and 2025, we employed approximately 2,715 and 2,455 people, respectively.

Previous wording

Net Income Attributable to Evercore Inc. was $301.2 million for the three months ended March 31, 2026, an increase of $155.1 million, or 106%, compared to $146.2 million for the three months ended March 31, 2025. The changes in our operating results during these periods are described below.

Current wording

Net Income Attributable to Evercore Inc. was $95.3 million for the three months ended June 30, 2026, a decrease of $1.9 million, or 2%, compared to $97.2 million for the three months ended June 30, 2025. The changes in our operating results during these periods are described below.

Previous wording

Net Revenues were $1.39 billion for the three months ended March 31, 2026, an increase of $696.7 million, or 100%, versus Net Revenues of $694.8 million for the three months ended March 31, 2025. Advisory Fees increased $687.4 million, or 123%, Commissions and Related Revenue increased $7.5 million, or 14%, and Underwriting Fees increased $0.8 million, or 1%, compared to the three months ended March 31, 2025. Asset Management and Administration Fees increased $1.7 million, or 8%, compared to the three months ended March 31, 2025. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Current wording

Net Revenues were $990.2 million for the three months ended June 30, 2026, an increase of $156.4 million, or 19%, versus Net Revenues of $833.8 million for the three months ended June 30, 2025. Advisory Fees increased $77.8 million, or 11%, Underwriting Fees increased $64.9 million, or 201%, and Commissions and Related Revenue increased $5.3 million, or 9%, compared to the three months ended June 30, 2025. Asset Management and Administration Fees increased $3.0 million, or 14%, compared to the three months ended June 30, 2025. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Previous wording

Other Revenue, Including Interest and Investments, was $15.4 million for the three months ended March 31, 2026, an increase of $4.0 million, or 36%, versus $11.3 million for the three months ended March 31, 2025, primarily reflecting higher interest income resulting from higher average balances in interest-bearing assets.

Current wording

Other Revenue, Including Interest and Investments, was $38.6 million for the three months ended June 30, 2026, an increase of $9.5 million, or 33%, versus $29.1 million for the three months ended June 30, 2025, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income resulting from higher average balances in interest-bearing assets. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous wording

Interest Expense was $8.9 million for the three months ended March 31, 2026, an increase of $4.7 million, or 112%, versus $4.2 million for the three months ended March 31, 2025, primarily reflecting the issuance of new senior notes in July 2025. See Note 11 to our unaudited condensed consolidated financial statements for further information.

Current wording

Interest Expense was $8.3 million for the three months ended June 30, 2026, an increase of $4.1 million, or 97%, versus $4.2 million for the three months ended June 30, 2025, primarily reflecting the issuance of new senior notes in July 2025. See Note 11 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Employee Compensation and Benefits Expense was $904.1 million for the three months ended March 31, 2026, an increase of $444.2 million, or 97%, versus $459.8 million for the three months ended March 31, 2025. The increase in the amount of compensation recognized for the three months ended March 31, 2026 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. Employee Compensation and Benefits Expense for the three months ended March 31, 2026 also includes $7.1 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information. Employee Compensation and Benefits Expense as a percentage of Net Revenues was 65.0% for the three months ended March 31, 2026, compared to 66.2% for the three months ended March 31, 2025. Employee Compensation and Benefits Expense as a percentage of Net Revenues was impacted by the factors above, as well as higher net revenues during the current year period compared to the prior year period.

Current wording

Employee Compensation and Benefits Expense was $641.8 million for the three months ended June 30, 2026, an increase of $93.2 million, or 17%, versus $548.6 million for the three months ended June 30, 2025. The increase in the amount of compensation recognized for the three months ended June 30, 2026 principally reflects higher amortization of prior period deferred compensation awards, higher base salaries and a higher accrual for incentive compensation. Employee Compensation and Benefits Expense for the three months ended June 30, 2026 also includes $7.1 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information. Employee Compensation and Benefits Expense as a percentage of Net Revenues was 64.8% for the three months ended June 30, 2026, compared to 65.8% for the three months ended June 30, 2025. Employee Compensation and Benefits Expense as a percentage of Net Revenues was impacted by the factors above, as well as higher net revenues during the current year period compared to the prior year period.

Previous wording

Income from Equity Method Investments was $1.0 million for the three months ended March 31, 2026, an increase of $0.1 million, or 14%, versus $0.9 million for the three months ended March 31, 2025, reflecting higher earnings from Atalanta Sosnoff in the first quarter of 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments was $1.0 million for the three months ended June 30, 2026, an increase of $0.2 million, or 25%, versus $0.8 million for the three months ended June 30, 2025, primarily reflecting higher earnings from Atalanta Sosnoff during the three months ended June 30, 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Net Income Attributable to Noncontrolling Interest was $21.5 million for the three months ended March 31, 2026, an increase of $13.9 million, or 182%, versus $7.6 million for the three months ended March 31, 2025. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the three months ended March 31, 2026. See Note 13 to our unaudited condensed consolidated financial statements for further information.

Current wording

Net Income Attributable to Noncontrolling Interest was $11.2 million for the three months ended June 30, 2026, an increase of $1.5 million, or 15%, versus $9.7 million for the three months ended June 30, 2025. The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at Evercore LP and EWM during the three months ended June 30, 2026. See Note 13 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Non-compensation expenses were $156.8 million for the three months ended March 31, 2026, an increase of $33.0 million, or 27%, versus $123.8 million for the three months ended March 31, 2025. The increase was primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with license fees and research services in the first quarter of 2026, an increase in depreciation and amortization, principally reflecting the addition of leasehold improvements for new office space and the amortization of intangible assets from the acquisition of Robey Warshaw, an increase in professional fees and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. Non-compensation expenses for the first quarter of 2026 were also impacted by Acquisition and Transition Costs resulting from the impairment of a lease related to the acquisition of Robey Warshaw. See Note 5 to our unaudited condensed consolidated financial statements for further information. Non-Compensation expenses per employee were approximately $60.3 thousand for the three months ended March 31, 2026, versus $51.9 thousand for the three months ended March 31, 2025, a 16% increase.

Current wording

Non-compensation expenses were $337.3 million for the six months ended June 30, 2026, an increase of $78.6 million, or 30%, versus $258.7 million for the six months ended June 30, 2025. The increase was primarily driven by an increase in travel and related expenses, professional fees and technology and information services. The increase in travel and related expenses is largely due to higher levels of business activity, elevated travel pricing and increased headcount and the increase in technology and information services is principally reflecting higher expenses associated with license fees, consulting costs and research services. Non-Compensation expenses per employee were approximately $127.8 thousand for the six months ended June 30, 2026, versus $107.4 thousand for the six months ended June 30, 2025, a 19% increase.

Previous wording

The provision for income taxes for the three months ended March 31, 2026 was $9.1 million, which reflected an effective tax rate of 2.7%. The provision (benefit) for income taxes for the three months ended March 31, 2025 was ($41.7) million, which reflected an effective tax rate of (37.2%). The provision (benefit) for income taxes for the three months ended March 31, 2026 and 2025 principally reflects the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $88.5 million and $74.3 million, respectively, which resulted in a reduction in the effective tax rate of 26.7 and 66.3 percentage points for the three months ended March 31, 2026 and 2025, respectively.

Current wording

The provision for income taxes for the six months ended June 30, 2026 was $50.2 million, which reflected an effective tax rate of 10.5%. The provision for income taxes for the six months ended June 30, 2025 was $2.5 million, which reflected an effective tax rate of 1.0%. The increase in provision for income taxes for the six months ended June 30, 2026 is primarily attributable to a $216.1 million increase in pre-tax income, as well as an increase in non-deductible expenses and state and local apportionment adjustments, partially offset by the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $91.4 million and $75.0 million, respectively, which resulted in a reduction in the effective tax rate of 19.1 and 28.5 percentage points for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

(1)Includes interest expense on Notes Payable, lines of credit and other financing arrangements, including interest expense related to deferred acquisition consideration, all of which total $8.8 million and $4.2 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

(1)Includes interest expense on Notes Payable, lines of credit and other financing arrangements, including interest expense related to deferred acquisition consideration, all of which total $8.1 million and $16.9 million for the three and six months ended June 30, 2026, respectively, and $4.2 million and $8.4 million for the three and six months ended June 30, 2025, respectively.

Previous wording

The following table summarizes Evercore statistics for the three months ended March 31, 2026 and 2025.

Current wording

The following table summarizes Evercore statistics for the three and six months ended June 30, 2026 and 2025.

Previous wording

Net Revenues were $1.37 billionfor the three months ended March 31, 2026, an increase of $694.2 million, or 103%, versus $674.5 millionfor the three months ended March 31, 2025. Theincrease in revenues for the three months ended March 31, 2026 was primarily driven by an increase of$687.4 million, or 123%, in Advisory Fees, reflecting an increase in revenue across both M&A and non-M&A assignments, an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the first quarter of 2026. Commissions and Related Revenue increased$7.5 million, or 14%, compared to thethree months ended March 31, 2025, primarily reflecting higher trading commissions driven by increased trading volume during the first quarter of 2026. Underwriting Fees increased$0.8 million, or 1%, compared to thethree months ended March 31, 2025, reflecting an increase in the number of transactions we participated in during the first quarter of 2026. Other Revenue, net, decreased$1.5 million, or 20%, compared to thethree months ended March 31, 2025, primarily reflecting an increase in interest expense related to the issuance of new senior notes in July 2025, partially offset byhigher interest income resulting from higher average balances in interest-bearing assets.

Current wording

Net Revenues were $966.9 millionfor the three months ended June 30, 2026, an increase of $154.7 million, or 19%, versus $812.2 millionfor the three months ended June 30, 2025. Theincrease in revenues for the three months ended June 30, 2026 was primarily driven by an increase of$77.8 million, or 11%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the second quarter of 2026. Underwriting Fees increased$64.9 million, or 201%, compared to thethree months ended June 30, 2025, reflecting an increase in the number of transactions we participated in during the second quarter of 2026. Commissions and Related Revenue increased$5.3 million, or 9%, compared to thethree months ended June 30, 2025, primarily reflecting higher trading commissions driven by increased trading volume during the second quarter of 2026. Other Revenue, net, increased$6.7 million, or 28%, compared to thethree months ended June 30, 2025, primarily reflecting higher performance of our investment funds portfolio, as well ashigher interest income resulting from higher average balances in interest-bearing assets, partially offset byan increase in interest expense related to the issuance of new senior notes in July 2025. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous wording

Employee Compensation and Benefits Expense was $889.2 million for the three months ended March 31, 2026, an increase of $441.1 million, or 98%, versus $448.0 million for the three months ended March 31, 2025. The increase in the amount of compensation recognized for the three months ended March 31, 2026 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. Employee Compensation and Benefits Expense for the three months ended March 31, 2026 also includes $7.1 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information.

Current wording

Employee Compensation and Benefits Expense was $627.3 million for the three months ended June 30, 2026, an increase of $91.9 million, or 17%, versus $535.4 million for the three months ended June 30, 2025. The increase in the amount of compensation recognized for the three months ended June 30, 2026 principally reflects higher amortization of prior period deferred compensation awards, higher base salaries and a higher accrual for incentive compensation. Employee Compensation and Benefits Expense for the three months ended June 30, 2026 also includes $7.1 million of costs related to awards granted in conjunction with the acquisition of Robey Warshaw. See Notes 5 and 15 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Income (Loss) from Equity Method Investments was$0.01 millionfor the three months ended March 31, 2026, an increase of$0.05 million versus ($0.04) millionfor the three months ended March 31, 2025, reflecting higher earnings from Seneca Evercore during the three months ended March 31, 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income (Loss) from Equity Method Investments was$0.02 millionfor the three months ended June 30, 2026, an increase of$0.01 million, or 64%, versus $0.01 millionfor the three months ended June 30, 2025, reflecting higher earnings from Seneca Evercore during the three months ended June 30, 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Non-compensation expenses were$152.7 million for the three months ended March 31, 2026, an increase of $32.9 million, or 27%, versus $119.8 million for the three months ended March 31, 2025. Non-compensation expenses increased from the prior year period, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with license fees and research services in the first quarter of 2026, an increase in depreciation and amortization, principally reflecting the addition of leasehold improvements for new office space and the amortization of intangible assets from the acquisition of Robey Warshaw, an increase in professional fees and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. Non-compensation expenses for the first quarter of 2026 were also impacted by Acquisition and Transition Costs resulting from the impairment of a lease related to the acquisition of Robey Warshaw. See Note 5 to our unaudited condensed consolidated financial statements for further information.

Current wording

Non-compensation expenses were$328.4 million for the six months ended June 30, 2026, an increase of $77.9 million, or 31%, versus $250.5 million for the six months ended June 30, 2025. Non-compensation expenses increased from the prior year period, primarily driven by an increase in travel and related expenses, professional fees and technology and information services. The increase in travel and related expenses is largely due to higher levels of business activity, elevated travel pricing and increased headcount and the increase in technology and information services is principally reflecting higher expenses associated with license fees, consulting costs and research services.

Previous wording

(1)Includes interest expense on mandatorily redeemable interests of $0.1 million for the three months ended March 31, 2026.

Current wording

(1)Includes interest expense on mandatorily redeemable interests of $0.2 million and $0.3 million for the three and six months ended June 30, 2026, respectively.

Previous wording

AUM in our Wealth Management business of $15.1 billion at March 31, 2026 decreased $0.4 billion, or 3%, compared to $15.5 billion at December 31, 2025. The amounts of AUM presented in the table below reflect the fair value of assets which we manage on behalf of Wealth Management clients. As defined in ASC 820, valuations performed for Level 1 investments are based on quoted prices obtained from active markets generated by third parties and Level 2 investments are valued through the use of models based on either direct or indirect observable inputs or other valuation methodologies performed by third parties to determine fair value. For Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively. For Level 3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Wealth Management maintained 77% and 78% of Level 1 investments, 19% and 18% of Level 2 investments and 4% and 4% of Level 3 investments as of March 31, 2026 and December 31, 2025, respectively.

Current wording

AUM in our Wealth Management business of $16.2 billion at June 30, 2026 increased $0.7 billion, or 5%, compared to $15.5 billion at December 31, 2025. The amounts of AUM presented in the table below reflect the fair value of assets which we manage on behalf of Wealth Management clients. As defined in ASC 820, valuations performed for Level 1 investments are based on quoted prices obtained from active markets generated by third parties and Level 2 investments are valued through the use of models based on either direct or indirect observable inputs or other valuation methodologies performed by third parties to determine fair value. For Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively. For Level 3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Wealth Management maintained 78% of Level 1 investments, 18% of Level 2 investments and 4% of Level 3 investments as of June 30, 2026 and December 31, 2025.

Previous wording

The following table summarizes AUM activity for Wealth Management for the three months ended March 31, 2026:

Current wording

The following table summarizes AUM activity for Wealth Management for the six months ended June 30, 2026:

Previous wording

For the three months ended March 31, 2026, AUM for Wealth Management decreased 3%, reflecting a 2% decrease from market depreciation and a 1% decrease from net outflows. Performance as of March 31, 2026 reflected:

Current wording

For the six months ended June 30, 2026, AUM for Wealth Management increased 5%, primarily reflecting an increase from market appreciation. Performance as of June 30, 2026 reflected:

Previous wording

•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 6% and 5%, respectively

Current wording

•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 4% and 6%, respectively

Previous wording

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

Current wording

◦The S&P 500 was up approximately 22% and 21% on a 1 and 3-year basis, respectively

Previous wording

•Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 0.04% and 0.5%, respectively

Current wording

•Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 0.4%, 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 4% and 3% on a 1 and 3-year basis, respectively

Previous wording

•The S&P 500 and the fixed income composite were down approximately 4% and 1%, respectively, for the three months ended March 31, 2026

Current wording

•The S&P 500 and the fixed income composite were up approximately 10% and 1%, respectively, for the six months ended June 30, 2026

Previous wording

AUM from our unconsolidated affiliate, Atalanta Sosnoff, decreased 5% compared to December 31, 2025.

Current wording

AUM from our unconsolidated affiliate, Atalanta Sosnoff, increased 8% compared to December 31, 2025.

Previous wording

Net Revenues were $22.8 million for the three months ended March 31, 2026, an increase of $2.5 million, or 12%, versus $20.3 million for the three months ended March 31, 2025. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $1.7 million, or 8%, compared to the three months ended March 31, 2025, as associated AUM increased 10%, from market appreciation as well as net inflows.

Current wording

Net Revenues were $23.3 million for the three months ended June 30, 2026, an increase of $1.7 million, or 8%, versus $21.7 million for the three months ended June 30, 2025. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $3.0 million, or 14%, compared to the three months ended June 30, 2025, as associated AUM increased 12%, from market appreciation, as well as net inflows.

Previous wording

Employee Compensation and Benefits Expense was $14.9 million for the three months ended March 31, 2026, an increase of $3.1 million, or 26%, versus $11.8 million for the three months ended March 31, 2025, primarily reflecting a higher accrual for incentive compensation and higher base salaries, resulting from higher headcount.

Current wording

Employee Compensation and Benefits Expense was $14.5 million for the three months ended June 30, 2026, an increase of $1.3 million, or 10%, versus $13.2 million for the three months ended June 30, 2025, primarily reflecting higher base salaries, resulting from higher headcount.

Previous wording

Non-Compensation expenses were $4.1 million for the three months ended March 31, 2026, an increase of $0.1 million, or 2%, versus $4.0 million for the three months ended March 31, 2025, primarily driven by an increase in technology and information services, partially offset by a decrease in professional fees.

Current wording

Non-Compensation expenses were $4.7 million for the three months ended June 30, 2026, an increase of $0.7 million, or 17%, versus $4.1 million for the three months ended June 30, 2025, primarily driven by an increase in technology and information services and travel and related expenses, partially offset by a decrease in professional fees.

Previous wording

Income from Equity Method Investments was $1.1 million for the three months ended March 31, 2026, an increase of $0.2 million, or 20%, versus $0.9 million for the three months ended March 31, 2025, reflecting higher earnings from Atalanta Sosnoff and Seneca Evercore during the three months ended March 31, 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments was $1.0 million for the three months ended June 30, 2026, an increase of $0.2 million, or 24%, versus $0.8 million for the three months ended June 30, 2025, reflecting higher earnings from Atalanta Sosnoff during the three months ended June 30, 2026. See Note 8 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Three Months Ended March 31, 2026. Cash, Cash Equivalents and Restricted Cash were $1.0 billion at March 31, 2026, a decrease of $440.0 million versus Cash, Cash Equivalents and Restricted Cash of $1.4 billion at December 31, 2025. Operating activities resulted in a net outflow of $225.9 million, primarily related to the payment of 2025 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2026, partially offset by earnings. Cash of $524.5 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities, partially offset by net purchases of certificates of deposit. Financing activities during the period used cash of $731.4 million, primarily for purchases of treasury stock (including for the net settlement of RSUs), the payment of dividends, the $48.0 million repayment of our Series C Notes and distributions made to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Current wording

Six Months Ended June 30, 2026. Cash, Cash Equivalents and Restricted Cash were $1.3 billion at June 30, 2026, a decrease of $168.9 million versus Cash, Cash Equivalents and Restricted Cash of $1.4 billion at December 31, 2025. Operating activities resulted in a net inflow of $299.7 million, primarily related to earnings, partially offset by the payment of 2025 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2026. Cash of $434.1 million was provided by investing activities, related to net proceeds from sales and maturities of investment securities and net proceeds from maturities of certificates of deposit, partially offset by purchases of furniture, equipment and leasehold improvements. Financing activities during the period used cash of $890.1 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, the payment of dividends, the $48.0 million repayment of our Series C Notes and distributions made to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Previous wording

Three Months Ended March 31, 2025. Cash, Cash Equivalents and Restricted Cash were $562.7 million at March 31, 2025, a decrease of $319.4 million versus Cash, Cash Equivalents and Restricted Cash of $882.1 million at December 31, 2024. Operating activities resulted in a net outflow of $549.7 million, primarily related to the payment of 2024 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2025, partially offset by earnings. Cash of $679.8 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit, partially offset by purchases of equipment and leasehold improvements. Financing activities during the period used cash of $460.9 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and the payment of dividends and distributions made to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Current wording

Condensed Consolidated Statement of Financial Condition as of June 30, 2025, partially offset by earnings. Cash of $365.6 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities, partially offset by purchases of equipment and leasehold improvements and net purchases of certificates of deposit. Financing activities during the period used cash of $541.8 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, the payment of dividends and distributions made to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Previous wording

On April 29, 2025, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of Class A Shares and/or LP Units so that from that date forward, we are able to repurchase an aggregate of the lesser of $1.6 billion worth of Class A Shares and/or LP Units and 8.0 million Class A Shares and/or LP Units. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately-negotiated transactions or otherwise. The timing and the actual amount of shares repurchased will depend on a variety of factors, including our liquidity position, legal requirements, price, economic and market conditions and the objective to reduce the dilutive effect of equity awards granted as compensation to employees. This program may be suspended or discontinued at any time and does not have a specified expiration date. During the three months ended March 31, 2026, we repurchased 1,026,236 Class A Shares, at an average cost per share of $302.01, for $309.9 million, pursuant to our repurchase program.

Current wording

On April 29, 2025, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of Class A Shares and/or LP Units so that from that date forward, we are able to repurchase an aggregate of the lesser of $1.6 billion worth of Class A Shares and/or LP Units and 8.0 million Class A Shares and/or LP Units. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately-negotiated transactions or otherwise. The timing and the actual amount of shares repurchased will depend on a variety of factors, including our liquidity position, legal requirements, price, economic and market conditions and the objective to reduce the dilutive effect of equity awards granted as compensation to employees. This program may be suspended or discontinued at any time and does not have a specified expiration date. During the six months ended June 30, 2026, we repurchased 1,326,577 Class A Shares, at an average cost per share of $311.03, for $412.6 million, pursuant to our repurchase program.

Previous wording

In addition, we periodically buy shares into treasury from our employees in order to allow them to satisfy their minimum tax requirements for share deliveries under our share equity plan. During the three months ended March 31, 2026, we repurchased 903,405 Class A Shares, at an average cost per share of $344.71, for $311.4 million, primarily related to minimum tax withholding requirements of share deliveries.

Current wording

In addition, we periodically buy shares into treasury from our employees in order to allow them to satisfy their minimum tax requirements for share deliveries under our share equity plan. During the six months ended June 30, 2026, we repurchased 933,835 Class A Shares, at an average cost per share of $343.89, for $321.1 million, primarily related to minimum tax withholding requirements of share deliveries.

Previous wording

The aggregate 1,929,641 Class A Shares repurchased during the three months ended March 31, 2026 were acquired for aggregate purchase consideration of $621.3 million, at an average cost per share of $322.00.

Current wording

The aggregate 2,260,412 Class A Shares repurchased during the six months ended June 30, 2026 were acquired for aggregate purchase consideration of $733.7 million, at an average cost per share of $324.60.

Previous wording

As of March 31, 2026, our current and former Senior Managing Directors owned an aggregate of approximately 1.2 million vested Class A LP Units, 0.3 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.8 million vested Class K LP Units. In addition, 0.7 million unvested Class K-P Units, which convert into a number of Class K LP Units based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of March 31, 2026. We have an obligation to exchange vested Class A, E, I and K LP Units to Class A Common Stock upon the request of the holder.

Current wording

As of June 30, 2026, our current and former Senior Managing Directors owned an aggregate of approximately 1.1 million vested Class A LP Units, 0.3 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.8 million vested Class K LP Units. In addition, 0.7 million unvested Class K-P Units, which convert into a number of Class K LP Units based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of June 30, 2026. We have an obligation to exchange vested Class A, E, I and K LP Units to Class A Common Stock upon the request of the holder.