What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-08 compared with 2024-11-06 · 189 added, 251 removed, 319 unchanged (58% of the section changed)

23 unchanged sentences

Commissions and Related Revenue includes commissions, which are recorded on a trade-date basis or, in the case of payments under commission sharing arrangements, on the date earned.

Commissions and Related Revenue also includes subscription fees for the sales of research, as well as revenues from trades primarily executed on a riskless principal basis.

Commissions and Related Revenue also includes subscription fees for the sale of research, as well as revenues from trades primarily executed on a riskless principal basis.

Cash received before the subscription period ends is initially recorded as deferred revenue (a contract liability) and recognized as revenue over the remaining subscription period.

11 unchanged sentences

Transaction-Related Client Reimbursements .

In our Investment Banking & Equities segment, we incur various transaction-related expenditures, such as travel and professional fees, in the course of performing our services.

In our Investment Banking & Equities segment, we incur various transaction-related expenditures, such as travel expenses and professional fees, in the course of performing our services.

Pursuant to the engagement letters with our advisory clients, these expenditures may be reimbursable.

4 unchanged sentences

• Interest income, including accretion, and income (losses) on investment securities, including our investment funds (which are used as an economic hedge against our deferred cash compensation program), certificates of deposit, cash and cash equivalents and long-term accounts receivable

• A gain on the sale of the remaining portion of our interest in ABS in the third quarter of 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information

• A loss related to the release of cumulative foreign exchange losses resulting from the redemption of our interest in Luminis in the third quarter of 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information

• Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge

• 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

• Realized and unrealized gains and losses on interests in private equity funds which we do not manage

1 unchanged sentence

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

Operating Expenses

Employee Compensation and Benefits Expense.

Employee Compensation and Benefits.

We include all payments for services rendered by our employees, as well as profits interests in our businesses that have been accounted for as compensation, in employee compensation and benefits expense.

We maintain compensation programs, including base salary, cash, deferred cash and equity bonus awards and benefits programs and manage compensation to estimates of competitive levels based on market conditions and performance.

and other awards, which are generally valued at their grant date and recorded in employee compensation and benefits expense over the requisite service period.

Our level of compensation, including deferred compensation, reflects our plan to maintain competitive compensation levels to retain key personnel, and it reflects the impact of newly-hired senior professionals upon their start date, including related grants of equity and other awards, which are generally valued at their grant date and recorded in employee compensation and benefits expense over the requisite service period.

Increasing the number of high-caliber, experienced senior level employees is critical to our growth efforts.

11 unchanged sentences

Following the distributions, the Class L Interests are cancelled pursuant to their terms.

We record expense equal to the amount of these distributions in Employee Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Operations and reflect accrued liabilities in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Financial Condition.

Our Long-term Incentive Plans provide for incentive compensation awards for Advisory Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (which ended on December 31, 2020), pursuant to the 2017 Long-term Incentive Plan, and January 1, 2021, pursuant to the 2021 Long-term Incentive Plan.

The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan we made cash distributions in 2023, 2022 and 2021.

Amounts accrued pursuant to the 2021 Long-term Incentive Plan may be paid, in cash or Class A Shares, at our discretion, in the first quarter of 2025, 2026 and 2027, subject to employment at the time of payment.

We record expense equal to the amount of these distributions in Employee Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Operations and reflect accrued liabilities related to these distributions in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Financial Condition.

Our Long-term Incentive Plans provide for incentive compensation awards for Investment Banking Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over a four-year performance period beginning January 1, 2021 (which ended on December 31, 2024), pursuant to the 2021 Long-term Incentive Plan.

In conjunction with this plan, we made a cash distribution in the first quarter of 2025.

Remaining amounts are due to be paid in cash or Class A Shares, at our discretion, in the first quarter of 2026 and 2027, subject to employment at the time of payment.

We periodically assess the probability of the benchmarks being achieved and expense the probable payout over the requisite service period of the award.

In April 2025, our Board of Directors approved the issuance of the 2025 Long-term Incentive Plan.

Similar to the above arrangement, this plan provides for incentive compensation awards to Investment Banking Senior Managing Directors, excluding our executive officers, who exceed defined benchmark results over a four-year performance period beginning in 2025.

This plan is due to be paid in cash or Class A Shares, at our discretion, in three equal installments in the first quarter of 2029, 2030 and 2031, subject to employment at the time of payment.

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.

2 unchanged sentences

We believe that the ratio of Employee Compensation and Benefits Expense to Net Revenues is an important measure to assess the annual cost of compensation relative to performance and provides a meaningful basis for comparison of compensation and benefits expense between present, historical and future years.

Non-Compensation Expenses.

Our other operating expenses include costs for occupancy and equipment rental, professional fees, travel and related expenses, communications and information technology services, depreciation and amortization, execution, clearing and custody fees and other operating expenses.

We refer to all of these expenses as non-compensation expenses.

Other Expenses

Other Expenses include Special Charges, Including Business Realignment Costs:

• 2024 – Expenses for the three and nine months ended September 30, 2024 related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest

• 2023 – Expenses for the nine months ended September 30, 2023 related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico

Non-Compensation.

Our Non-Compensation expenses include costs for occupancy and equipment rental, professional fees, travel and related expenses, communications and information technology services, depreciation and amortization, execution, clearing and custody fees and other operating expenses.

Income from Equity Method Investments

Our share of the income (loss) from our equity interests in ABS (through July 2024), Atalanta Sosnoff, Luminis (through September 2024) 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.

Our share of the income (loss) from our equity interests in Atalanta Sosnoff and Seneca Evercore, and our former equity interests in ABS (through July 2024) and Luminis (through September 2024) 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 7 to our unaudited condensed consolidated financial statements for further information.

Provision for Income Taxes

Provision (Benefit) for Income Taxes

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.

10 unchanged sentences

Results of Operations

The following is a discussion of our results of operations for the three and nine months ended September 30, 2024 and 2023.

The following is a discussion of our results of operations for the three months ended March 31, 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.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 Change 2024 2023 Change

For the Three Months Ended March 31,

2025 2024 Change

(dollars and share amounts in thousands, except per share data)

8 unchanged sentences

Net Revenues 694,829 580,815 20 %

Operating Expenses 604,924 493,394 23 % 1,682,600 1,397,415 20 %

Other Expenses 7,305 — NM 7,305 2,921 150 %

Employee Compensation and Benefits 459,825 387,705 19 %

Non-Compensation (1)

123,820 108,990 14 %

Total Expenses 583,645 496,695 18 %

2 unchanged sentences

Income Before Income Taxes 112,063 86,445 30 %

Provision for Income Taxes 34,971 19,717 77 % 56,659 52,945 7 %

Provision (Benefit) for Income Taxes (41,727) (6,679) (525 %)

Net Income 153,790 93,124 65 %

5 unchanged sentences

Common Shareholders $ 3.48 $ 2.09 67 %

As of September 30, 2024 and 2023, we employed approximately 2,395 and 2,230 people, respectively.

Three Months Ended September 30, 2024 versus September 30, 2023

Net Income Attributable to Evercore Inc.

was $78.4 million for the three months ended September 30, 2024, an increase of $26.2 million, or 50%, compared to $52.1 million for the three months ended September 30, 2023.

The changes in our operating results during these periods are described below.

Net Revenues were $734.2 million for the three months ended September 30, 2024, an increase of $164.0 million, or 29%, versus Net Revenues of $570.2 million for the three months ended September 30, 2023.

Advisory Fees increased $125.6 million, or 27%, Underwriting Fees increased $13.3 million, or 43%, and Commissions and Related Revenue increased $5.9 million, or 12%, compared to the three months ended September 30, 2023.

Asset Management and Administration Fees

increased $3.3 million, or 19%, compared to the three months ended September 30, 2023.

See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Ot her Revenue, Including Interest and Investments, increased $16.0 million, or 157%, compared to the three months ended September 30, 2023, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Total Operating Expenses were $604.9 million for the three months ended September 30, 2024, compared to $493.4 million for the three months ended September 30, 2023, an increase of $111.5 million, or 23%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $488.0 million for the three months ended September 30, 2024, an increase of $96.3 million, or 25%, versus expense of $391.7 million for the three months ended September 30, 2023.

The increase in the amount of compensation recognized for the three months ended September 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards.

Non-compensation expenses, as a component of Operating Expenses, were $116.9 million for the three months ended September 30, 2024, an increase of $15.2 million, or 15%, versus $101.7 million for the three months ended September 30, 2023.

The increase was primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services.

Non-Compensation expenses per employee were approximately $49.5 thousand for the three months ended September 30, 2024, versus $45.5 thousand for the three months ended September 30, 2023.

Other Expenses of $7.3 million for the three months ended September 30, 2024 reflected Special Charges, Including Business Realignment Costs, related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.5% for the three months ended September 30, 2024, compared to 68.7% for the three months ended September 30, 2023.

Income from Equity Method Investments was $1.1 million for the three months ended September 30, 2024, compared to $1.7 million for the three months ended September 30, 2023, a decrease of $0.6 million, or 36%, driven by the sale of the remaining portion of our interest in ABS during the third quarter of 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff during the three months ended September 30, 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

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 provision for income taxes for the three months ended September 30, 2023 was $19.7 million, which reflected an effective tax rate of 25.1%.

The provision for income taxes for the three months ended September 30, 2024 reflects an increase in non-deductible expenses, state and local apportionment adjustments and the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $1.0 million.

Net Income Attributable to Noncontrolling Interest was $9.7 million for the three months ended September 30, 2024, compared to $6.6 million for the three months ended September 30, 2023.

The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the three months ended September 30, 2024.

See Note 12 to our unaudited condensed consolidated financial statements for further information.

Nine Months Ended September 30, 2024 versus September 30, 2023

(1) Non-Compensation expenses are as follows:

For the Three Months Ended March 31,

2025 2024 Change

(dollars in thousands)

Non-Compensation

Occupancy and Equipment Rental $ 25,731 $ 21,944 17 %

Professional Fees 32,613 31,219 4 %

Travel and Related Expenses 22,018 19,222 15 %

Communications and Information Services 23,144 19,167 21 %

Depreciation and Amortization 5,976 6,293 (5 %)

Execution, Clearing and Custody Fees 3,346 3,341 — %

Other Operating Expenses 10,992 7,804 41 %

Total Non-Compensation $ 123,820 $ 108,990 14 %

As of March 31, 2025 and 2024, we employed approximately 2,395 and 2,225 people, respectively.

Three Months Ended March 31, 2025 versus March 31, 2024

Net Income Attributable to Evercore Inc.

was $237.8 million for the nine months ended September 30, 2024, an increase of $65.1 million, or 38%, compared to $172.7 million for the nine months ended September 30, 2023.

was $146.2 million for the three months ended March 31, 2025, an increase of $60.5 million, or 71%, compared to $85.7 million for the three months ended March 31, 2024.

The changes in our operating results during these periods are described below.

Net Revenues were $2.00 billion for the nine months ended September 30, 2024, an increase of $362.5 million, or 22%, versus Net Revenues of $1.64 billion for the nine months ended September 30, 2023.

Advisory Fees increased $286.5 million, or 22%, Underwriting Fees increased $38.8 million, or 42%, and Commissions and Related Revenue increased $9.2 million, or 6%, compared to the nine months ended September 30, 2023.

Asset Management and Administration Fees increased $8.6

million, or 17%, compared to the nine months ended September 30, 2023.

Net Revenues were $694.8 million for the three months ended March 31, 2025, an increase of $114.0 million, or 20%, versus Net Revenues of $580.8 million for the three months ended March 31, 2024.

Advisory Fees increased $127.5 million, or 30%, Commissions and Related Revenue increased $6.9 million, or 14%, and Underwriting Fees decreased $1.3 million, or 2%, compared to the three months ended March 31, 2024.

Asset Management and Administration Fees increased $2.3 million, or 12%, compared to the three months ended March 31, 2024.

See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Ot her Revenue, Including Interest and Investments, increased $19.4 million, or 32%, compared to the nine months ended September 30, 2023, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

Ot her Revenue, Including Interest and Investments, was $11.3 million for the three months ended March 31, 2025, a decrease of $21.4 million, or 65%, versus $32.7 million for the three months ended March 31, 2024, primarily reflecting lower performance of our investment funds portfolio.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Total Operating Expenses were $1.68 billion for the nine months ended September 30, 2024, compared to $1.40 billion for the nine months ended September 30, 2023, an increase of $285.2 million, or 20%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.33 billion for the nine months ended September 30, 2024, an increase of $237.7 million, or 22%, versus expense of $1.10 billion for the nine months ended September 30, 2023.

The increase in the amount of compensation recognized for the nine months ended September 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires.

Non-compensation expenses, as a component of Operating Expenses, were $348.0 million for the nine months ended September 30, 2024, an increase of $47.6 million, or 16%, versus $300.4 million for the nine months ended September 30, 2023.

The increase was primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in communications and information services, principally reflecting higher expenses associated with license fees and research services in 2024.

Non-Compensation expenses per employee were approximately $152.2 thousand for the nine months ended September 30, 2024, versus $137.7 thousand for the nine months ended September 30, 2023.

Other Expenses of $7.3 million for the nine months ended September 30, 2024 reflected Special Charges, Including Business Realignment Costs, related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Other Expenses of $2.9 million for the nine months ended September 30, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.6% for the nine months ended September 30, 2024, compared to 66.8% for the nine months ended September 30, 2023.

Income from Equity Method Investments was $5.3 million for the nine months ended September 30, 2024, compared to $4.7 million for the nine months ended September 30, 2023, an increase of $0.6 million, or 12%, reflecting higher earnings from Atalanta Sosnoff, Luminis and Seneca Evercore in 2024.

This increase was partially offset by the sale of the remaining portion of our interest in ABS in 2024.

Employee Compensation and Benefits Expense was $459.8 million for the three months ended March 31, 2025, an increase of $72.1 million, or 19%, versus $387.7 million for the three months ended March 31, 2024.

The increase in the amount of compensation recognized for the three months ended March 31, 2025 principally reflects a higher accrual for incentive compensation and higher base salaries.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.2% for the three months ended March 31, 2025, compared to 66.8% for the three months ended March 31, 2024.

Non-compensation expenses were $123.8 million for the three months ended March 31, 2025, an increase of $14.8 million, or 14%, versus $109.0 million for the three months ended March 31, 2024.

The increase was primarily driven by an increase in communications and information services, principally reflecting higher expenses associated with research services and license fees in the first 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.

Other Operating Expenses also increased, primarily related to an increase in bad debt expense.

Non-Compensation expenses per employee were approximately $51.9 thousand for the three months ended March 31, 2025, versus $49.3 thousand for the three months ended March 31, 2024, a 5% increase.

Income from Equity Method Investments was $0.9 million for the three months ended March 31, 2025, a decrease of $1.4 million, or 62%, versus $2.3 million for the three months ended March 31, 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 during the three months ended March 31, 2025.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

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, 2023 was $52.9 million, which reflected an effective tax rate of 21.5%.

The provision for income taxes for the nine months ended September 30, 2024 and 2023 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 $32.0 million and $14.1 million, respectively, which resulted in a reduction in the effective tax rate of 10.0 and 5.7 percentage points for the nine months ended September 30, 2024 and 2023, respectively.

Net Income Attributable to Noncontrolling Interest was $25.1 million for the nine months ended September 30, 2024, compared to $20.4 million for the nine months ended September 30, 2023.

The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP, as well as EWM, during the nine months ended September 30, 2024.

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, 2024 was ($6.7) million, which reflected an effective tax rate of (7.7%).

The provision (benefit) for income taxes for the three months ended March 31, 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 $74.3 million and $29.5 million, respectively, which resulted in a reduction in the effective tax rate of 66.3 and 34.1 percentage points for the three months ended March 31, 2025 and 2024, respectively.

Net Income Attributable to Noncontrolling Interest was $7.6 million for the three months ended March 31, 2025, compared to $7.4 million for the three months ended March 31, 2024.

The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at EWM during the three months ended March 31, 2025.

See Note 12 to our unaudited condensed consolidated financial statements for further information.

3 unchanged sentences

The following table summarizes the operating results of the Investment Banking & Equities segment.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 Change 2024 2023 Change

For the Three Months Ended March 31,

2025 2024 Change

(dollars in thousands)

6 unchanged sentences

Net Revenues 674,532 561,728 20 %

Operating Expenses 589,083 479,429 23 % 1,638,289 1,356,853 21 %

Other Expenses 7,305 — NM 7,305 2,921 150 %

Employee Compensation and Benefits 448,029 377,287 19 %

Non-Compensation (3)

119,774 105,551 13 %

Total Expenses 567,803 482,838 18 %

Operating Income 106,729 78,890 35 %

Income from Equity Method Investments (3)

207 180 15 % 1,042 394 164 %

Income (Loss) from Equity Method Investments (2)

Pre-Tax Income $ 106,691 $ 79,578 34 %

(1) Includes interest expense on Notes Payable and lines of credit of $4.2 million and $12.6 million for the three and nine months ended September 30, 2024, respectively, and $4.2 million and $12.5 million for the three and nine months ended September 30, 2023, respectively.

(2) Includes a loss of $0.7 million for the three and nine months ended September 30, 2024, related to the release of cumulative foreign exchange losses resulting from the redemption of our interest in Luminis.

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

For the three months ended September 30, 2024, the dollar value of North American announced and completed M&A activity increased 2% and decreased 18%, respectively, compared to the three months ended September 30, 2023, and the dollar value of Global announced and completed M&A activity increased 18% and decreased 24%, respectively, compared to the three months ended September 30, 2023.

For the three months ended September 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million decreased 18% and 25%, respectively, compared to the three months ended September 30, 2023.

For the nine months ended September 30, 2024, the dollar value of North American announced and completed M&A activity increased 20% and 7%, respectively, compared to the nine months ended September 30, 2023, and the dollar value of Global announced and completed M&A activity increased 17% and decreased 7%, respectively, compared to the nine months ended September 30, 2023.

For the nine months ended September 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million increased 9% and decreased 5%, respectively, compared to the nine months ended September 30, 2023.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 Change 2024 2023 Change

Industry Statistics ($ in billions) (1)

Value of North American M&A Deals Announced $ 386 $ 380 2 % $ 1,193 $ 995 20 %

Value of North American M&A Deals Completed $ 271 $ 332 (18 %) $ 956 $ 897 7 %

Value of North American M&A Deals Completed Over $100 million $ 258 $ 315 (18 %) $ 913 $ 835 9 %

Value of Global M&A Deals Announced $ 820 $ 694 18 % $ 2,305 $ 1,973 17 %

Value of Global M&A Deals Completed $ 500 $ 662 (24 %) $ 1,701 $ 1,827 (7 %)

Value of Global M&A Deals Completed Over $100 million $ 456 $ 606 (25 %) $ 1,557 $ 1,644 (5 %)

(1) Includes interest expense on Notes Payable and lines of credit of $4.2 million for each of the three months ended March 31, 2025 and 2024.

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

(3) Non-Compensation expenses are as follows:

For the Three Months Ended March 31,

2025 2024 Change

(dollars in thousands)

Non-Compensation

Occupancy and Equipment Rental $ 25,103 $ 21,403 17 %

Professional Fees 31,094 30,063 3 %

Travel and Related Expenses 21,811 18,973 15 %

Communications and Information Services 22,302 18,464 21 %

Depreciation and Amortization 5,893 6,209 (5 %)

Execution, Clearing and Custody Fees 2,883 2,923 (1 %)

Other Operating Expenses 10,688 7,516 42 %

Total Non-Compensation $ 119,774 $ 105,551 13 %

The following table summarizes Evercore statistics for the three months ended March 31, 2025 and 2024.

For the Three Months Ended March 31,

2025 2024 Change

Evercore Statistics

Total Number of Fees From Advisory and Underwriting Client Transactions (1)

259 225 15 % 544 484 12 %

Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions (1)

112 86 30 % 298 241 24 %

Total Number of Underwriting Transactions (1)

17 11 55 % 53 40 33 %

Total Number of Underwriting Transactions as a Bookrunner (1)

15 10 50 % 45 36 25 %

Refinitiv October 7, 2024

(1) Includes Equity and Debt Underwriting Transactions.

Our Advisory statistics include M&A activity as well as other advisory assignments undertaken by the firm.

Investment Banking & Equities Results of Operations

Three Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $712.8 million for the three months ended September 30, 2024 , compared to $552.6 million for the three months ended September 30, 2023 , an increase of $160.1 million, or 29%.

The increase in revenues for the three months ended September 30, 2024 was primarily driven by an increase of $125.6 million, or 27%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the third quarter of 2024.

Underwriting Fees increased $13.3 million, or 43%, compared to the three months ended September 30, 2023, reflecting an increase in the number of transactions we participated in during the third quarter of 2024.

Commissions and Related Revenue increased $5.9 million, or 12%, compared to the three months ended September 30, 2023 , primarily reflecting higher trading commissions and subscription fees .

Other Revenue, net, increased $15.4 million, or 268% , compared to the three months ended September 30, 2023 , primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Operating Expenses were $589.1 million for the three months ended September 30, 2024 , compared to $479.4 million for the three months ended September 30, 2023, an increase of $109.7 million , or 23%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $476.0 million for the three months ended September 30, 2024 , compared to $381.1 million for the three months ended September 30, 2023 , an increase of $94.9 million , or 25% .

Non-compensation expenses, as a component of Operating Expenses, were $113.1 million for the three months ended September 30, 2024, compared to $98.3 million for the three months ended September 30, 2023, an increase of $14.8 million , or 15% .

Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services.

connection with the redemption of our interest.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Nine Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $1.94 billion for the nine months ended September 30, 2024, compared to $1.59 billion for the nine months ended September 30, 2023, an increase of $354.8 million, or 22%.

The increase in revenues for the nine months ended September 30, 2024 was primarily driven by an increase of $286.5 million, or 22%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2024.

Underwriting Fees increased $38.8 million, or 42%, compared to the nine months ended September 30, 2023, reflecting an increase in the number of transactions we participated in during 2024.

Commissions and Related Revenue increased $9.2 million, or 6%, compared to the nine months ended September 30, 2023, primarily reflecting higher trading commissions and subscription fees.

Other Revenue, net, increased $20.3 million, or 44%, compared to the nine months ended September 30, 2023, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

Three Months Ended March 31, 2025 versus March 31, 2024

Net Revenues were $674.5 million for the three months ended March 31, 2025, an increase of $112.8 million, or 20%, versus $561.7 million for the three months ended March 31, 2024 .

The increase in revenues for the three months ended March 31, 2025 was primarily driven by an increase of $127.5 million, or 30%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the first quarter of 2025 across both M&A and non-M&A assignments.

Commissions and Related Revenue increased $6.9 million, or 14%, compared to the three months ended March 31, 2024, primarily reflecting higher trading commissions driven by increased trading volume during the first quarter of 2025.

Underwriting Fees decreased $1.3 million, or 2%, compared to the three months ended March 31, 2024, reflecting a decrease in the number of transactions we participated in during the first quarter of 2025.

Other Revenue, net, decreased $20.3 million, or 72%, compared to the three months ended March 31, 2024, primarily reflecting lower performance of our investment funds portfolio.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Operating Expenses were $1.64 billion for the nine months ended September 30, 2024, compared to $1.36 billion for the nine months ended September 30, 2023, an increase of $281.4 million, or 21%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.30 billion for the nine months ended September 30, 2024, compared to $1.07 billion for the nine months ended September 30, 2023, an increase of $234.7 million, or 22% .

Non-compensation expenses, as a component of Operating Expenses, were $336.9 million for the nine months ended September 30, 2024, compared to $290.2 million for the nine months ended September 30, 2023, an increase of $46.7 million, or 16%.

Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in communications and information services, principally reflecting higher expenses associated with license fees and research services in 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Employee Compensation and Benefits Expense was $448.0 million for the three months ended March 31, 2025, an increase of $70.7 million, or 19%, versus $377.3 million for the three months ended March 31, 2024.

The increase in the amount of compensation recognized for the three months ended March 31, 2025 principally reflects a higher accrual for incentive compensation and higher base salaries.

Non-compensation expenses were $119.8 million for the three months ended March 31, 2025, an increase of $14.2 million, or 13%, versus $105.5 million for the three months ended March 31, 2024 .

Non-compensation expenses increased from the prior year period, primarily driven by an increase in communications and information services, principally reflecting higher expenses associated with research services and license fees in the first 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.

Other Operating Expenses also increased, primarily related to an increase in bad debt expense.

Investment Management

The following table summarizes the operating results of the Investment Management segment.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 Change 2024 2023 Change

For the Three Months Ended March 31,

2025 2024 Change

(dollars in thousands)

1 unchanged sentence

Wealth Management $ 20,983 $ 18,699 12 %

Other Revenue, net (1)

892 275 224 % 1,294 2,247 (42 %)

Other Revenue, net (686) 388 NM

Net Revenues 20,297 19,087 6 %

Operating Expenses 15,841 13,965 13 % 44,311 40,562 9 %

Employee Compensation and Benefits 11,796 10,418 13 %

Non-Compensation (2)

4,046 3,439 18 %

Total Expenses 15,842 13,857 14 %

3 unchanged sentences

Pre-Tax Income $ 5,372 $ 6,867 (22 %)

(1) Includes a gain of $0.6 million for the three and nine months ended September 30, 2024, resulting from the sale of the remaining portion of our interest in ABS.

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

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

(2) Non-Compensation expenses are as follows:

For the Three Months Ended March 31,

2025 2024 Change

(dollars in thousands)

Non-Compensation

Occupancy and Equipment Rental $ 628 $ 541 16 %

Professional Fees 1,519 1,156 31 %

Travel and Related Expenses 207 249 (17 %)

Communications and Information Services 842 703 20 %

Depreciation and Amortization 83 84 (1 %)

Execution, Clearing and Custody Fees 463 418 11 %

Other Operating Expenses 304 288 6 %

Total Operating Expenses $ 4,046 $ 3,439 18 %

Investment Management Results of Operations

9 unchanged sentences

In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed.

As of September 30, 2024, there was no previously distributed carried interest received from the funds subject to repayment.

• We also hold interests in ABS (through July 2024) and Atalanta Sosnoff that are accounted for under the equity method of accounting.

As of March 31, 2025, there was no previously distributed carried interest received from the funds subject to repayment.

• We also hold an interest in Atalanta Sosnoff that is accounted for under the equity method of accounting and previously held an interest in ABS (through July 2024).

The results of these investments are included within Income from Equity Method Investments.

2 unchanged sentences

Assets Under Management

AUM in our Wealth Management business of $13.9 billion at September 30, 2024 increased $1.6 billion, or 13% , compared to $12.3 billion at December 31, 2023.

AUM in our Wealth Management business of $13.7 billion at March 31, 2025 decreased $0.2 billion, or 1% , 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.

3 unchanged sentences

The inputs into the determination of fair value require significant management judgment or estimation.

Wealth Management maintained 77% and 76% of Level 1 investments, 19% and 20% of Level 2 investments and 4% and 4% of Level 3 investments as of September 30, 2024 and December 31, 2023, respectively.

Wealth Management maintained 75% and 77% of Level 1 investments, 20% and 19% of Level 2 investments and 5% and 4% of Level 3 investments as of March 31, 2025 and December 31, 2024, respectively.

The fees that we receive for providing investment advisory and management services are primarily driven by the level and composition of AUM.

3 unchanged sentences

The fees we earn are also impacted by our investment performance, as the appreciation or depreciation in the value of the assets that we manage directly impacts our fees.

The following table summarizes AUM activity for Wealth Management for the nine months ended September 30, 2024:

The following table summarizes AUM activity for Wealth Management for the three months ended March 31, 2025:

(dollars in millions)

1 unchanged sentence

Outflows (272)

Market Appreciation 1,444

Balance at September 30, 2024 $ 13,887

Unconsolidated Affiliates - Balance at September 30, 2024:

Market Appreciation (Depreciation) (268)

Balance at March 31, 2025 $ 13,700

Unconsolidated Affiliates - Balance at March 31, 2025

Atalanta Sosnoff $ 8,197

The following table represents the composition of AUM for Wealth Management as of September 30, 2024:

The following table represents the composition of AUM for Wealth Management as of March 31, 2025:

Equities 65 %

8 unchanged sentences

Investment performance in the Wealth Management business is measured against appropriate indices based on the composition of AUM, most frequently the S&P 500 and a composite fixed income index principally reflecting BarCap and MSCI indices.

For the nine months ended September 30, 2024, AUM for Wealth Management increased 13% , reflecting a 12% increase due to market appreciation and a 1% increase due to flows .

Performance for the nine months ended September 30, 2024 reflected:

For the three months ended March 31, 2025, AUM for Wealth Management decreased 1% , reflecting a 2% decrease due to market depreciation, partially offset by a 1% increase due to flows .

Performance for the three months ended March 31, 2025 reflected:

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

• Wealth Management lagged the fixed income composite on a 1-year basis by approximately 0.3% and outperformed the fixed income composite on a 3-year basis by approximately 0.3%

• The S&P 500 and fixed income composite were each up approximately 22% and 1%, respectively

AUM from our unconsolidated affiliates decreased 41% compared to December 31, 2023, primarily reflecting a decrease in ABS following the sale of our remaining interest during the third quarter of 2024.

This decrease was partially offset by an increase in Atalanta Sosnoff, which increased 12% compared to December 31, 2023.

Three Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $21.4 million for the three months ended September 30, 2024, compared to $17.6 million for the three months ended September 30, 2023, an increase of $3.9 million, or 22%.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $3.3 million, or 19%, for the three months ended September 30, 2024, as associated AUM increased 23%, primarily from market appreciation.

Operating Expenses were $15.8 million for the three months ended September 30, 2024, compared to $14.0 million for the three months ended September 30, 2023, an increase of $1.9 million, or 13%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $12.0 million for the three months ended September 30, 2024, compared to $10.6 million for the three months ended September 30, 2023, an increase of $1.4 million, or 13%.

Non-Compensation expenses, as a component of Operating Expenses, were $3.8 million for the three months ended September 30, 2024, compared to $3.4 million for the three months ended September 30, 2023, an increase of $0.4 million, or 12%.

Income from Equity Method Investments decreased $0.6 million, or 42%, from the three months ended September 30, 2023, driven by the sale of the remaining portion of our interest in ABS during the third quarter of 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff during the three months ended September 30, 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Nine Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $59.7 million for the nine months ended September 30, 2024, compared to $52.1 million for the nine months ended September 30, 2023, an increase of $7.7 million, or 15%.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $8.6 million, or 17%, for the nine months ended September 30, 2024, as associated AUM increased 23%, primarily from market appreciation.

Operating Expenses were $44.3 million for the nine months ended September 30, 2024, compared to $40.6 million for the nine months ended September 30, 2023, an increase of $3.7 million, or 9%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $33.3 million for the nine months ended September 30, 2024, compared to $30.3 million for the nine months ended September 30, 2023, an increase of $3.0 million, or 10%.

Non-Compensation expenses, as a component of Operating Expenses, were $11.0 million for the nine months ended September 30, 2024, compared to $10.3 million for the nine months ended September 30, 2023, an increase of $0.7 million, or 7%.

Income from Equity Method Investments decreased $0.1 million, or 2%, from the nine months ended September 30, 2023, driven by the sale of the remaining portion of our interest in ABS during 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff during the nine months ended September 30, 2024.

• Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 0.4% and 0.1%, respectively

• The S&P 500 was down approximately 4% and the fixed income composite was up approximately 0.5%

AUM from our unconsolidated affiliate, Atalanta Sosnoff, decreased 4% compared to December 31, 2024.

Three Months Ended March 31, 2025 versus March 31, 2024

Net Revenues were $20.3 million for the three months ended March 31, 2025, an increase of $1.2 million, or 6%, versus $19.1 million for the three months ended March 31, 2024.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $2.3 million, or 12%, compared to the three months ended March 31, 2024, as associated AUM increased 5%, primarily from market appreciation.

Employee Compensation and Benefits Expense was $11.8 million for the three months ended March 31, 2025, an increase of $1.4 million, or 13%, versus $10.5 million for the three months ended March 31, 2024, primarily reflecting a higher accrual for incentive compensation.

Non-Compensation expenses were $4.0 million for the three months ended March 31, 2025, an increase of $0.6 million, or 18%, versus $3.4 million for the three months ended March 31, 2024, primarily driven by an increase in professional fees and communications and information services.

Income from Equity Method Investments decreased $0.7 million, or 44%, compared to the three months ended March 31, 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 the first quarter of 2025.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

10 unchanged sentences

A summary of our operating, investing and financing cash flows is as follows:

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

(dollars in thousands)

12 unchanged sentences

End of Period $ 562,740 $ 578,396

Nine Months Ended September 30, 2024.

Cash, Cash Equivalents and Restricted Cash were $542.0 million at September 30, 2024, a decrease of $63.5 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023.

Operating activities resulted in a net inflow of $301.8 million, primarily related to earnings, partially offset by the payment of 2023 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 September 30, 2024.

Cash of $179.1 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities, as well as proceeds received from the sale of the remaining portion of our interest in ABS during the third quarter of 2024, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold improvements.

Financing activities during the period used cash of $550.7 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.

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.

Nine Months Ended September 30, 2023.

Cash, Cash Equivalents and Restricted Cash were $501.5 million at September 30, 2023, a decrease of $170.7 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022.

Operating activities resulted in a net inflow of $42.3 million, primarily related to earnings, partially offset by the payment of 2022 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 September 30, 2023.

Cash of $290.5 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 $510.6 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, and dividends and distributions to noncontrolling interest holders.

Three Months Ended March 31, 2024.

Cash, Cash Equivalents and Restricted Cash were $578.4 million at March 31, 2024, a decrease of $27.1 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023.

Operating activities resulted in a net outflow of $281.2 million, primarily related to the payment of 2023 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, 2024, partially offset by earnings.

Cash of $576.5 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit.

Financing activities during the period used cash of $318.6 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.

6 unchanged sentences

From time to time, advances and/or commitments may also be granted to new employees at or near the date they begin employment, or to existing employees for the purpose of incentive or retention.

Cash distributions related to partnership tax

allocations are made to the partners of Evercore LP and certain other entities in accordance with our corporate estimated payment calendar;

Cash distributions related to partnership tax allocations are made to the partners of Evercore LP and certain other entities in accordance with our corporate estimated

payment calendar;

these payments are generally made quarterly.

12 unchanged sentences

In addition, revenue related to our equities business is driven by market volumes and institutional investor trends, such as the trend to passive investment strategies.

During periods of unfavorable market or economic conditions - which may result from the current or anticipated impact of inflation, changes in the level of interest rates, changes in the availability of financing, supply chain disruptions, an evolving regulatory environment, climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, including escalating international tensions, terrorism or other geopolitical events - the number and value of M&A transactions, as well as market volumes in equities, generally decrease, and they generally increase during periods of favorable market or economic conditions.

During periods of unfavorable market or economic conditions - which may result from the current or anticipated impact of tariffs and related inflation, changes in the level of interest rates, changes in the availability of financing, supply chain disruptions, an evolving regulatory environment, climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, including escalating international tensions, terrorism or other geopolitical events - the number and value of M&A transactions, as well as market volumes in equities, generally decrease, and they generally increase during periods of favorable market or economic conditions.

Restructuring activity generally is counter-cyclical to M&A activity.

1 unchanged sentence

Our profitability may also be adversely affected by our fixed costs and the possibility that we would be unable to scale back other costs within a time frame, and in an amount sufficient, to match any decreases in revenue relating to changes in market and economic conditions.

Likewise, our liquidity may be adversely impacted by our contractual obligations, including lease obligations.

Likewise, our liquidity may be adversely impacted by our contractual obligations, including lease obligations and obligations to pay principal and interest on our Notes Payable.

Reduced equity valuations resulting from future adverse economic events and/or market conditions may impact our performance and may result in future net redemptions of AUM from our Investment Management clients, which would generally result in lower revenues and cash flows.

These adverse conditions could also have an impact on our goodwill impairment assessment, which is done annually, as of November 30 th , or more frequently if circumstances indicate impairment may have occurred.

Elevated interest rates and heightened geopolitical tensions, including escalating military tensions and evolving regulatory and banking environments, have contributed to an elongation of the timing of transaction closings.

Recent actions taken by governments to levy tariffs on international trade have led to heightened geopolitical tensions, market volatility and uncertainty, including concerns over ongoing inflation, high interest rates and/or economic recession.

These conditions may impact the transaction environment in the near term and/or result in an elongation of the timing of transaction closings.

We will continue to assess the potential ongoing impacts of these factors, including the regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and our other contractual obligations.

12 unchanged sentences

This program may be suspended or discontinued at any time and does not have a specified expiration date.

During the nine months ended September 30, 2024, we repurchased 1,218,540 Class A Shares, at an average cost per share of $199.11, for $242.6 million, pursuant to our repurchase program.

During the three months ended March 31, 2025, we repurchased 638,559 Class A Shares, at an average cost per share of $227.45, for $145.3 million, pursuant to our repurchase program.

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.

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 nine months ended September 30, 2024, we repurchased 984,484 Class A Shares, at an average cost per share of $178.02, for $175.3 million, primarily related to minimum tax withholding requirements of share deliveries.

The aggregate 2,203,024 Class A Shares repurchased during the nine months ended September 30, 2024 were acquired for aggregate purchase consideration of $417.9 million, at an average cost per share of $189.69.

Noncontrolling Interest Purchases

During the second quarter of 2024, we purchased, at fair value, an additional 0.3% of the EWM Class A Units for $1.0 million.

This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional Paid-In Capital of $1.0 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2024.

During the second quarter of 2023, we purchased, at fair value, an additional 0.7% of the EWM Class A Units for $2.0 million.

This purchase resulted in a decrease to Noncontrolling Interest of $0.2 million and a decrease to Additional Paid-In Capital of $1.8 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2023.

On December 31, 2021, we purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business.

See Note 12 to our unaudited condensed consolidated financial statements for further information.

During the three months ended March 31, 2025, we repurchased 915,963 Class A Shares, at an average cost per share of $284.64, for $260.7 million, primarily related to minimum tax withholding requirements of share deliveries.

The aggregate 1,554,522 Class A Shares repurchased during the three months ended March 31, 2025 were acquired for aggregate purchase consideration of $406.0 million, at an average cost per share of $261.15.

Private Placement Notes

8 unchanged sentences

Interest on the above issuances is payable semi-annually and the notes are guaranteed by certain of our domestic subsidiaries.

We may, at our option, prepay all, or from time to time any part of, the notes (without regard to Series), in an amount not less than 5% of the aggregate principal amount of each of the individual issuances then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the notes plus accrued and unpaid interest to the prepayment date.

We may, at our option, prepay all, or from time to time any part of, the notes (without regard to Series), in an

amount not less than 5% of the aggregate principal amount of each of the individual issuances then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the notes plus accrued and unpaid interest to the prepayment date.

The respective Note Purchase Agreements contain customary covenants, including financial covenants requiring compliance with a maximum leverage ratio, a minimum tangible net worth and a minimum interest coverage ratio (for the 2016 Private Placement Notes only), and customary events of default.

As of September 30, 2024, we were in compliance with all of these covenants.

As of March 31, 2025, we were in compliance with all of these covenants.

Lines of Credit

East entered into a revolving credit facility with PNC, as amended on June 29, 2023, in an aggregate principal amount of up to $30.0 million to be used for working capital and other corporate activities, which matured on October 27, 2024.

This facility was secured by East's accounts receivable and the proceeds therefrom, as well as certain assets of EGL, including certain of EGL's accounts receivable.

In addition, the agreement contained certain reporting covenants, as well as certain debt covenants that prohibited East and us from incurring other indebtedness, subject to specified exceptions.

We and our consolidated subsidiaries were in compliance with these covenants as of September 30, 2024.

The interest rate provisions were Daily SOFR plus 161 basis points.

There were no drawings under this facility at September 30, 2024.

East entered into an additional revolving credit facility with PNC, as amended on June 29, 2023, in an aggregate principal amount of up to $55.0 million to be used for working capital and other corporate activities, which matured on October 27, 2024.

This facility was unsecured.

In addition, the agreement contained certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

We and our consolidated subsidiaries were in compliance with these covenants as of September 30, 2024.

The interest rate provisions were Daily SOFR plus 191 basis points.

East was only permitted to borrow under this facility if there was no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility.

There were no drawings under this facility at September 30, 2024.

On October 28, 2024, upon maturity of our $30.0 million secured and $55.0 million unsecured credit facilities with PNC, we established a new revolving credit facility with PNC in an aggregate principal amount of up to $85.0 million to be used for working capital and other corporate activities.

East previously held $30.0 million secured and $55.0 million unsecured revolving credit facilities with PNC, which matured on October 27, 2024.

On October 28, 2024, upon maturity of our $30.0 million secured and $55.0 million unsecured credit facilities with PNC, we established a revolving credit facility with PNC, as amended on March 17, 2025, in an aggregate principal amount of up to $85.0 million to be used for working capital and other corporate activities.

The facility is unsecured.

In addition, the agreement contains certain reporting covenants, as well as certain debt covenants, that prohibit East and us from incurring other indebtedness, subject to specified exceptions.

We and our consolidated subsidiaries were in compliance with these covenants as of March 31, 2025.

Drawings under this facility bear interest at Daily SOFR plus 155 basis points and the maturity date is October 27, 2026.

EGL entered into a subordinated revolving credit facility with PNC, as amended on October 25, 2024, in an aggregate principal amount of up to $75.0 million, to be used as needed in support of capital requirements from time to time of EGL.

This facility is unsecured and is guaranteed by Evercore LP and other affiliates, pursuant to a guaranty agreement, which provides for certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

There were no drawings under this facility at March 31, 2025.

EGL maintains a subordinated revolving credit facility with PNC, as amended on October 25, 2024, in an aggregate principal amount of up to $75.0 million, to be used as needed in support of capital requirements from time to time of EGL.

The interest rate provisions are Daily SOFR plus 145 basis points and the maturity date is October 28, 2026.

There were no drawings under this facility at September 30, 2024.

There were no drawings under this facility at March 31, 2025.

In addition, EGL's clearing broker provides temporary funding for the settlement of securities transactions.

8 unchanged sentences

For further information see Note 16 to our unaudited condensed consolidated financial statements.

We had total commitments (not reflected on our Unaudited Condensed Consolidated Statements of Financial Condition) relating to future capital contributions to private equity funds of $2.6 million as of September 30, 2024 and December 31, 2023.

We may be required to fund these commitments at any time through June 2028, depending on the timing and level of investments by our private equity funds.

We may be required to fund these commitments at any time through June 2028, depending on the timing and level of investments by the private equity funds.

We expect to fund these commitments with cash flows from operations.

1 unchanged sentence

We do not invest in any off-balance sheet vehicles that provide liquidity, capital resources, market or credit risk support, or engage in any leasing activities that expose us to any liability that is not reflected in our unaudited condensed consolidated financial statements.

As of September 30, 2024, our current and former Senior Managing Directors owned an aggregate of approximately 1.5 million vested Class A LP Units, 0.3 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.2 million vested Class K LP Units.

In addition, 1.1 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 September 30, 2024.

As of March 31, 2025, our current and former Senior Managing Directors owned an aggregate of approximately 1.4 million vested Class A LP Units, 0.3 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.2 million vested Class K LP Units.

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.

Our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2024 included $533.1 million of Cash and Cash Equivalents and $1.29 billion of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments.

Our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2025 included $553.0 million of Cash and Cash Equivalents and $811.5 million of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments.

For further information regarding other cash commitments and the timing of payments, refer to "General" above.

3 unchanged sentences

Market and Investment Risk

We hold equity securities and invest in exchange-traded funds principally as an economic hedge against our deferred compensation program.

As of September 30, 2024, the fair value of our investments with these products, based on closing prices, was $173.8 million.

We had net realized and unrealized gains of $9.1 million and $30.2 million for the three and nine months ended September 30, 2024, respectively, from our exchange-traded funds portfolio.

We hold equity securities and invest in exchange-traded funds principally as an economic hedge against our deferred cash compensation program.

As of March 31, 2025, the fair value of our investments with these products, based on closing prices, was $143.4 million.

We had net realized and unrealized losses of ($5.9) million for the three months ended March 31, 2025, from our exchange-traded funds portfolio.

See Note 6 to our unaudited condensed consolidated financial statements for further information.

We estimate that a hypothetical 10%, 20% and 30% adverse change in the market value of the investments would have resulted in a decrease in pre-tax income of approximately $17.4 million, $34.8 million and $52.1 million, respectively, for the three months ended September 30, 2024.

We estimate that a hypothetical 10%, 20% and 30% adverse change in the market value of the investments would have resulted in a decrease in pre-tax income of approximately $14.3 million, $28.7 million and $43.0 million, respectively, for the three months ended March 31, 2025.

Private Equity Funds

2 unchanged sentences

See Note 7 to our unaudited condensed consolidated financial statements for further information.

We estimate that a hypothetical 10% adverse change in the value of the private equity funds would have resulted in a decrease in pre-tax income of approximately $0.6 million for the three months ended September 30, 2024.

We estimate that a hypothetical 10% adverse change in the value of the private equity funds would have resulted in a decrease in pre-tax income of approximately $0.3 million for the three months ended March 31, 2025.

Exchange Rate Risk

7 unchanged sentences

Historically, the value of these foreign currencies has fluctuated relative to the U.S.

For the nine months ended September 30, 2024, the net impact of the fluctuation of foreign currencies recorded in Other Comprehensive Income (Loss) within the Unaudited Condensed Consolidated Statement of Comprehensive Income was a gain of $6.8 million, net of tax.

Foreign Currency Translation Adjustment Gain (Loss), net, within the Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 also included the reclassification of $0.7 million of cumulative foreign currency translation losses to Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024.

For the three months ended March 31, 2025, the net impact of the fluctuation of foreign currencies recorded in Other Comprehensive Income (Loss) within the Unaudited Condensed Consolidated Statement of Comprehensive Income was a gain of $8.7 million, net of tax.

It is generally not our intention to hedge our foreign currency exposure in these subsidiaries, and we will reevaluate this policy from time to time.

Periodically, we enter into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments.

We entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30.0 million British Pounds sterling for $36.9 million, which settled during the third quarter of 2023, and resulted in a loss of $0.3 million.

Upon settlement, we entered into a new foreign currency exchange forward contract to buy 30.0 million British Pounds sterling for $36.7 million, which settled during the first quarter of 2024, and resulted in a loss of $0.3 million for the nine months ended September 30, 2024.

The contract was recorded at its fair value of $1.6 million as of December 31, 2023, and was included within Other Current Assets on our Unaudited Condensed Consolidated Statement of Financial Condition.

We entered into a foreign currency exchange forward contract during the third quarter of 2023 to buy 30.0 million British Pounds sterling for $36.7 million, which settled during the first quarter of 2024, and resulted in a loss of $0.3 million for the three months ended March 31, 2024.

We maintain cash and cash equivalents, as well as certificates of deposit, with financial institutions with high credit ratings.

2 unchanged sentences

Accounts Receivable consists primarily of advisory fees and expense reimbursements billed to our clients.

Other Assets includes long-term receivables primarily from fees related to private funds capital raising and certain fees related to the private capital businesses.

Other Assets includes long-term receivables primarily from certain fees related to private funds capital raising and the private capital businesses.

Receivables are reported net of any allowance for credit losses.

We maintain an allowance for credit losses to provide coverage for probable losses from our customer receivables and determine the adequacy of the allowance by estimating the probability of loss based on our analysis of historical credit loss experience of our client receivables, and taking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the reported amount.

Our receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and certain fees related to private funds capital raising and the private capital businesses, a portion of which may be collected in a period exceeding one year.

The collection period for restructuring transaction receivables may exceed 90 days.

We recorded bad debt expense of $2.1 million and $5.0 million for the nine months ended September 30, 2024 and 2023, respectively.

As of September 30, 2024 and December 31, 2023, total receivables recorded in Accounts Receivable amounted to $415.5 million and $371.6 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $97.6 million and $93.7 million, respectively.

Our receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and certain fees primarily related to private funds capital raising and the private capital businesses, a portion of which may be collected in a period exceeding one year.

The collection period for liability management and restructuring transaction receivables may exceed 90 days.

We recorded bad debt expense of $2.6 million for the three months ended March 31, 2025 and reversed bad debt expense of $0.6 million for the three months ended March 31, 2024.

As of March 31, 2025 and December 31, 2024, total receivables recorded in Accounts Receivable amounted to $469.1 million and $421.5 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $113.5 million and $101.3 million, respectively.

Other Current Assets and Other Assets include arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date (contract assets).

As of September 30, 2024, total contract assets recorded in Other Current Assets and Other Assets amounted to $110.5 million and

$2.7 million, respectively.

As of March 31, 2025, total contract assets recorded in Other Current Assets and Other Assets amounted to $32.7 million and $15.5 million, respectively.

As of December 31, 2024, total contract assets recorded in Other Current Assets and Other Assets amounted to $62.4 million and $14.5 million, respectively.

With respect to our Investment Securities portfolio, which is comprised primarily of treasury bills and notes, exchange-traded funds and securities investments, we manage our credit risk exposure by limiting concentration risk and maintaining investment grade credit quality.

As of September 30, 2024, we had Investment Securities of $1.19 billion, of which 85% were treasury bills and notes.

With respect to our Investment Securities portfolio, which is comprised primarily of U.S.

Treasury securities, exchange-traded funds and securities investments, we manage our credit risk exposure by limiting concentration risk and maintaining investment grade credit quality.

As of March 31, 2025, we had Investment Securities of $794.6 million, of which 82% were U.S.

Treasury securities.

Critical Accounting Policies and Estimates

5 unchanged sentences

Recently Issued Accounting Standards

For a discussion of other recently issued accounting standards and their impact or potential impact on our consolidated financial statements, see Note 3 to our unaudited condensed consolidated financial statements.

For a discussion of recently issued accounting standards and their impact or potential impact on our consolidated financial statements, see Note 3 to our unaudited condensed consolidated financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis