Snapshot
Evercore Inc. reported $1.27B of revenue in Q4 2025, up 32.7% year over year, with diluted EPS of $4.76 and an operating margin of 25.3%.
- Revenue
- $1.27B
- YoY growth
- +32.7%
- Diluted EPS
- $4.76
- Operating margin
- 25.3%
What management said
- •Earlier today, we issued a press release announcing Evercore's fourth quarter and full-year 2025 financial results.
- •We saw broad-based momentum across all of our businesses and ended the year with the strongest revenue performance in our history.
- •Firm-wide, adjusted net revenue reached approximately $3.9 billion, up 29% versus the prior year and nearly 17% above our previous record in 2021.
- •In fact, our fourth quarter represented the strongest revenue quarter in our history, with nearly $1.3 billion in adjusted net revenue.
- •For the year, we generated approximately $14.56 in adjusted earnings per share, continued to return a meaningful amount of capital to shareholders, and improved our margin profile.
- •Our quarterly and full-year record results reflect the improving market environment, the benefits of our diversified business model, and the execution of our long-term growth strategy.
- •Announced transactions totaled approximately $4.5 trillion, up 49% from the prior year and just 19% below record levels of 2021.
- •That improvement was particularly evident in the large-cap segment of the market.
- •Nearly all of our businesses posted record results, including our North America and EMEA advisory businesses, Private Capital Advisory, Private Funds Group, our Equities business, and Wealth Management.
- •For the fourth quarter and full year, approximately 45% of revenues were generated from non-M&A businesses.
- •We completed the acquisition of Robey Warshaw, a leading U.K.-based advisory firm.
- •The acquisition represents a significant next step in our EMEA expansion strategy, and the integration is progressing well.
What went well
- •Full-year adjusted net revenues reached approximately $3.9 billion, up 29% versus the prior year and nearly 17% above the previous record set in 2021, the strongest annual revenue performance in the firm's history.
- •The fourth quarter was the strongest revenue quarter in firm history, with nearly $1.3 billion in adjusted net revenue, up 32% versus the fourth quarter of 2024.
- •Full-year adjusted operating margin reached 21.6%, up 300 basis points from 2024, while the fourth quarter margin of 26% improved 380 basis points year-over-year.
- •Full-year adjusted earnings per share of $14.56 increased 55% versus 2024, and full-year adjusted operating income of $839 million rose 50%.
- •Nearly all businesses posted record results, including North America and EMEA advisory, Private Capital Advisory, Private Funds Group, Equities, and Wealth Management, with approximately 45% of revenues generated from non-M&A businesses.
- •The firm acted as financial advisor on five of the 15 largest global M&A deals of the year and ranked as the third-largest investment bank globally based on advisory fees for the second consecutive year.
What went wrong
- •The recruiting environment has heated up and become very intense and competitive, with management acknowledging it is harder and likely more expensive to get senior people to move than it was two or three years ago.
- •Non-comp expenses rose 17% for the full year, reflecting higher technology, occupancy, rent, and client-related travel costs as the firm expanded office space in New York, Paris, London, and Dubai.
- •Management noted ongoing geopolitical and macroeconomic risks and that transaction timing can be uneven, with a software selloff and AI-related market concerns surfacing around the time of the call.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Non-comp expense growth | FY2026 | +17% (FY2025) | Would not be surprised to see something somewhat similar to recent years | Steady |
| Adjusted compensation ratio | FY2026 | 64.2% (FY2025) | Striving for continued gradual improvement, though matching the recent pace may be challenging | Targeting further decline |
| Share repurchases | FY2026 | Exceeded RSU dilution for five consecutive years | Expects to again repurchase shares in excess of RSU bonus grants | Continued |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Adjusted advisory fees | +34% full year ($3.3B); +33% in Q4 ($1.1B+) | Strong client activity levels and momentum that built throughout the year; 19% above the prior record in 2021. |
| Adjusted underwriting fees | +14% full year ($180M); +87% in Q4 ($49M) | Improved market conditions and an improving backdrop for IPOs. |
| Commissions and related revenue | +13% full year ($243M); +15% in Q4 ($66M) | Record results in the Equities business, which had nine consecutive quarters of year-over-year revenue growth. |
| Asset management and administration fees | +8% full year ($91M); +10% in Q4 ($24M) | Wealth Management had a record year and reached its highest quarter-end AUM of approximately $15.5 billion. |
| Adjusted operating income | +50% full year ($839M); +55% in Q4 ($337M) | Revenue growth and operating leverage, with comp and non-comp ratios both improving. |
| Full-year adjusted tax rate | 19.8% vs 21.8% in 2024 | Benefit from appreciation of the firm's share price above original grant price upon vesting of RSU grants, larger than the prior year's benefit. |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Large-cap and mega-deal M&A recovery | — | Global M&A rebounded ~49% to approximately $4.5 trillion; deals over $5 billion hit record levels; backlogs at record levels spanning all deal sizes | rising |
| Diversification into non-M&A businesses | — | Approximately 45% of revenues from non-M&A businesses, expected to persist | steady |
| Talent investment and SMD recruiting | — | Entered 2026 with 171 SMDs after the largest-ever class of 19 lateral hires; over 40 SMDs in ramp mode; recruiting more intense and expensive | rising |
| Compensation ratio improvement | 65.7% (FY2024); 67.6% two years prior | 64.2% for FY2025, down 340 basis points over two years, with continued gradual improvement targeted | declining |
| Private Capital Advisory and secondaries leadership | — | Record year; advised on nearly half of industry-wide secondary volumes (over 45% market share); rising competition expected from peers and banks | rising |
| Restructuring and liability management | — | Second-best year for revenues with a balanced mix of liability management and traditional restructuring; record backlogs | rising |
| AI disruption risk to advisory | — | Management sees no near- or medium-term disruption to backlogs despite a software selloff, citing diversification across products, geographies, and sectors | rising |
Q&A summary
With 2025 driven heavily by mega-cap M&A, can large deals continue or accelerate from here? (Goldman Sachs)
Management expects a healthy environment to persist, citing strong business prospects, access to capital, and a relatively benign regulatory backdrop. Backlogs are very strong across large-, mid-, and small-cap, supporting a continued steady build of large-cap deals and deals of all sizes.
Can both restructuring and M&A remain elevated in 2026, and how much share can be gained in liability management and restructuring? (UBS)
Management believes both can coexist at strong levels, with record and highly diversified backlogs across liability management, restructuring, and bankruptcies. The firm continues to pick up market share in liability management and restructuring with diversified new activity.
How should non-comp expense growth be calibrated, and which businesses are tech-heavy? (BMO Capital Markets)
LaLonde said non-comp investment in technology and infrastructure is needed to support growth and diversification; he would not be surprised by growth similar to the 16% in 2024 and 17% in 2025. Because non-comp growth trails revenue growth (23% then 29%), the non-comp ratio improved from 16.6% to 15.7% to 14.2%. Technology spend spans PCA, traditional M&A and restructuring, Equities, and the corporate area, plus occupancy costs from European expansion.
Where do the non-M&A businesses stand on growth over the next 12-18 months? (Citizens Bank)
Weinberg said strength is broad-based, with PCA, PFG, Debt Advisory/Private Capital Markets, and real estate advisory at or near record levels. Non-M&A remains about 45% of revenue and is expected to persist; PCA had over 45% market share with a diversified LP- and GP-based product set including continuation funds.
What disruption risk does AI pose to advisory pipelines given the software selloff? (Bank of America)
Weinberg said the firm sees no near- or medium-term disruption to backlogs given diversification across products, geographies, and sectors, though he acknowledged a significantly more disruptive market could affect the business.
How should the comp ratio evolve from the 340 basis points of improvement over two years? (Seaport Global)
LaLonde noted the ratio came down from 67.6% to 65.7% to 64.2% and the firm is striving for continued progress into 2026, but cautioned that matching the same pace and magnitude every year may be challenging given factors like revenue levels, market comp, and hiring.