What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-05 compared with 2026-05-06 · 201 added, 153 removed, 398 unchanged (47% of the section changed)

25 unchanged sentences

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.

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Revenue trends in our advisory business generally are correlated to the volume of merger and acquisitions ("M&A") activity, restructuring activity, which generally tends to be counter-cyclical to M&A, and capital advisory activity.

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• 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

• 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

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

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

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In our advisory businesses, these hires, which begin their service throughout any given year, generally do not begin to generate significant revenue in the year they are hired.

T a b l e o f C o n t e n t s

Our annual compensation program includes share-based compensation awards and deferred cash awards as a component of the annual bonus awards for certain employees.

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

Special Charges, Including Business Realignment Costs.

Special Charges, Including Business Realignment Costs, for the three and six months ended June 30, 2026 reflect an estimated loss provision for non-U.S.

employment taxes for prior periods.

See Note 16 to our unaudited condensed consolidated financial statements, under Contingencies, for further information.

Income from Equity Method Investments

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.

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.

Provision (Benefit) for Income Taxes

Provision 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.

T a b l e o f C o n t e n t s

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.

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.

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See Note 13 to our unaudited condensed consolidated financial statements for further information.

T a b l e o f C o n t e n t s

Results of Operations

The following is a discussion of our results of operations for the three months ended March 31, 2026 and 2025.

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.

For the Three Months Ended March 31,

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For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 Change 2026 2025 Change

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

11 unchanged sentences

180,517 134,830 34 % 337,299 258,650 30 %

Special Charges, Including Business Realignment Costs 21,315 — NM 21,315 — NM

Total Expenses 843,623 683,441 23 % 1,904,475 1,267,086 50 %

2 unchanged sentences

Income Before Income Taxes 147,594 151,204 (2 %) 479,371 263,267 82 %

Provision (Benefit) for Income Taxes 9,056 (41,727) NM

Provision for Income Taxes 41,094 44,265 (7 %) 50,150 2,538 NM

Net Income 106,500 106,939 — % 429,221 260,729 65 %

6 unchanged sentences

(1) Non-Compensation expenses are as follows:

T a b l e o f C o n t e n t s

For the Three Months Ended March 31,

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For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 Change 2026 2025 Change

(dollars in thousands)

1 unchanged sentence

Occupancy and Equipment Rental $ 29,726 $ 26,914 10 % $ 56,791 $ 52,645 8 %

Professional Fees (A)

28,355 22,390 27 %

Professional Fees 33,044 23,133 43 % 61,399 45,523 35 %

Travel and Related Expenses 35,331 23,984 47 % 63,202 46,002 37 %

Technology and Information Services (A)

40,418 33,367 21 %

Technology and Information Services 43,961 36,587 20 % 84,379 69,954 21 %

Depreciation and Amortization 12,577 6,450 95 % 25,015 12,426 101 %

3 unchanged sentences

Total Non-Compensation $ 180,517 $ 134,830 34 % $ 337,299 $ 258,650 30 %

(A) Includes the reclassification of $10.2 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" for the three months ended March 31, 2025 to conform to the current presentation.

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

Three Months Ended June 30, 2026 versus June 30, 2025

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.

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.

Ot her 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.

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.

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

Three Months Ended March 31, 2026 versus March 31, 2025

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.

Non-compensation expenses were $180.5 million for the three months ended June 30, 2026, an increase of $45.7 million, or 34%, versus $134.8 million for the three months ended June 30, 2025.

The increase was primarily driven by an increase in travel and related expenses, professional fees, technology and information services and other operating expenses.

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 other operating expenses is primarily attributable to an increase in the provision for credit losses.

Non-Compensation expenses per employee were approximately $67.5 thousand for the three months ended June 30, 2026, versus $55.6 thousand for the three months ended June 30, 2025, a 21% increase.

Special Charges, Including Business Realignment Costs, of $21.3 million for the three months ended June 30, 2026 reflected an estimated loss provision for non-U.S.

employment taxes for prior periods.

See Note 16 to our unaudited condensed consolidated financial statements for further information.

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.

The provision for income taxes for the three months ended June 30, 2026 was $41.1 million, which reflected an effective tax rate of 27.8%.

The provision for income taxes for the three months ended June 30, 2025 was $44.3 million, which reflected an effective tax rate of 29.3%.

The decrease in the provision for income taxes for the three months ended June 30, 2026 is primarily attributable to an increase in the deduction associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price.

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.

Six Months Ended June 30, 2026 versus June 30, 2025

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.

was $396.5 million for the six months ended June 30, 2026, an increase of $153.1 million, or 63%, compared to $243.4 million for the six months ended June 30, 2025.

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

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.

Net Revenues were $2.38 billion for the six months ended June 30, 2026, an increase of $853.1 million, or 56%, versus Net Revenues of $1.53 billion for the six months ended June 30, 2025.

Advisory Fees increased $765.2 million, or 61%, Underwriting Fees increased $65.7 million, or 76%, and Commissions and Related Revenue increased $12.8 million, or 11%, compared to the six months ended June 30, 2025.

Asset Management and Administration Fees increased $4.6 million, or 11%, compared to the six months ended June 30, 2025.

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

Ot her 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.

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.

Ot her Revenue, Including Interest and Investments, was $54.0 million for the six months ended June 30, 2026, an increase of $13.5 million, or 33%, versus $40.5 million for the six months ended June 30, 2025, primarily reflecting higher interest income resulting from higher average balances in interest-bearing assets, as well as higher performance of our investment funds portfolio.

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

Interest Expense was $17.2 million for the six months ended June 30, 2026, an increase of $8.8 million, or 105%, versus $8.4 million for the six 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.

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.

Employee Compensation and Benefits Expense was $1.55 billion for the six months ended June 30, 2026, an increase of $537.4 million, or 53%, versus $1.01 billion for the six months ended June 30, 2025.

The increase in the amount of compensation recognized for the six months ended June 30, 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 six months ended June 30, 2026 also includes $14.2 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 64.9% for the six months ended June 30, 2026, compared to 66.0% for the six months ended June 30, 2025.

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

T a b l e o f C o n t e n t s

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.

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.

Special Charges, Including Business Realignment Costs, of $21.3 million for the six months ended June 30, 2026 reflected an estimated loss provision for non-U.S.

employment taxes for prior periods.

See Note 16 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.

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.

Income from Equity Method Investments was $2.1 million for the six months ended June 30, 2026, an increase of $0.4 million, or 22%, versus $1.7 million for the six months ended June 30, 2025, reflecting higher earnings from Atalanta Sosnoff and Seneca Evercore in 2026.

See Note 8 to our unaudited condensed consolidated financial statements for further information.

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.

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.

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.

Net Income Attributable to Noncontrolling Interest was $32.7 million for the six months ended June 30, 2026, an increase of $15.4 million, or 89%, versus $17.3 million for the six months ended June 30, 2025.

The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at Evercore LP and EWM during the six months ended June 30, 2026.

See Note 13 to our unaudited condensed consolidated financial statements for further information.

T a b l e o f C o n t e n t s

Business Segments

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

For the Three Months Ended March 31,

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For the Three Months Ended June 30, For the Six Months Ended June 30,

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(dollars in thousands)

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175,789 130,773 34 % 328,445 250,547 31 %

Special Charges, Including Business Realignment Costs 21,315 — NM 21,315 — NM

Total Expenses 824,403 666,220 24 % 1,866,213 1,234,023 51 %

1 unchanged sentence

Income (Loss) from Equity Method Investments (2)

18 11 64 % 26 (27) NM

Pre-Tax Income $ 142,492 $ 145,962 (2 %) $ 469,440 $ 252,653 86 %

(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.

(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.

(2) Equity in Seneca Evercore is classified within Income (Loss) from Equity Method Investments.

(3) Non-Compensation expenses are as follows:

T a b l e o f C o n t e n t s

For the Three Months Ended March 31,

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For the Three Months Ended June 30, For the Six Months Ended June 30,

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(dollars in thousands)

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Occupancy and Equipment Rental $ 29,084 $ 26,261 11 % $ 55,522 $ 51,364 8 %

Professional Fees (A)

27,539 21,144 30 %

Professional Fees 32,198 22,059 46 % 59,737 43,203 38 %

Travel and Related Expenses 34,903 23,729 47 % 62,510 45,540 37 %

Technology and Information Services (A)

38,959 32,252 21 %

Technology and Information Services 42,277 35,411 19 % 81,236 67,663 20 %

Depreciation and Amortization 12,413 6,342 96 % 24,699 12,235 102 %

3 unchanged sentences

Total Non-Compensation $ 175,789 $ 130,773 34 % $ 328,445 $ 250,547 31 %

(A) Includes the reclassification of $10.0 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Banking & Equities segment for the three months ended March 31, 2025 to conform to the current presentation.

See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.

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

For the Three Months Ended March 31,

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

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 Change 2026 2025 Change

Evercore Statistics

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

296 245 21 % 494 386 28 %

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

132 111 19 % 280 206 36 %

Total Number of Underwriting Transactions (1)

26 13 100 % 49 27 81 %

Total Number of Underwriting Transactions as a Bookrunner (1)

26 13 100 % 47 25 88 %

(1) Includes Equity and Debt Underwriting Transactions.

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Investment Banking & Equities Results of Operations

Three Months Ended March 31, 2026 versus March 31, 2025

Net Revenues were $1.37 billion for the three months ended March 31, 2026, an increase of $694.2 million, or 103%, versus $674.5 million for the three months ended March 31, 2025 .

The increase 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 the three 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 the three 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 the three 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 by higher interest income resulting from higher average balances in interest-bearing assets.

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.

Employee Compensation and Benefits Expense for the three months ended March 31, 2026 also includes $7.1 million of costs related to

T a b l e o f C o n t e n t s

awards granted in conjunction with the acquisition of Robey Warshaw.

Three Months Ended June 30, 2026 versus June 30, 2025

Net Revenues were $966.9 million for the three months ended June 30, 2026, an increase of $154.7 million, or 19%, versus $812.2 million for the three months ended June 30, 2025 .

The increase 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 the three 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 the three 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 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, partially offset by an 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.

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.

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.

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.

Non-compensation expenses were $175.8 million for the three months ended June 30, 2026, an increase of $45.0 million, or 34%, versus $130.8 million for the three 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, technology and information services and other operating expenses.

Special Charges, Including Business Realignment Costs, of $21.3 million for the three months ended June 30, 2026 reflected an estimated loss provision for non-U.S.

employment taxes for prior periods.

See Note 16 to our unaudited condensed consolidated financial statements for further information.

Income (Loss) from Equity Method Investments was $0.01 million for the three months ended March 31, 2026, an increase of $0.05 million versus ($0.04) million for the three months ended March 31, 2025, reflecting higher earnings from Seneca Evercore during the three months ended March 31, 2026.

Income (Loss) from Equity Method Investments was $0.02 million for the three months ended June 30, 2026, an increase of $0.01 million, or 64%, versus $0.01 million for 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.

Six Months Ended June 30, 2026 versus June 30, 2025

Net Revenues were $2.34 billion for the six months ended June 30, 2026, an increase of $848.9 million, or 57%, versus $1.49 billion for the six months ended June 30, 2025 .

The increase in revenues for the six months ended June 30, 2026 was primarily driven by an increase of $765.2 million, or 61%, 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 2026.

Underwriting Fees increased $65.7 million, or 76% , compared to the six months ended June 30, 2025, reflecting an increase in the number of transactions we participated in during 2026.

Commissions and Related Revenue increased $12.8 million, or 11%, compared to the six months ended June 30, 2025, primarily reflecting higher trading commissions driven by increased trading volume during 2026.

Other Revenue, net, increased $5.2 million, or 16%, compared to the six months ended June 30, 2025, primarily reflecting higher interest income resulting from higher average balances in interest-bearing assets, as well as higher performance of our investment funds portfolio, partially offset by an 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.

Employee Compensation and Benefits Expense was $1.52 billion for the six months ended June 30, 2026, an increase of $533.0 million, or 54%, versus $983.5 million for the six months ended June 30, 2025.

Employee Compensation and Benefits Expense for the six months ended June 30, 2026 also includes $14.2 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.

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.

Special Charges, Including Business Realignment Costs, of $21.3 million for the six months ended June 30, 2026 reflected an estimated loss provision for non-U.S.

employment taxes for prior periods.

See Note 16 to our unaudited condensed consolidated financial statements for further information.

Income (Loss) from Equity Method Investments was $0.03 million for the six months ended June 30, 2026, an increase of $0.1 million , versus ($0.03) million for the six months ended June 30, 2025, reflecting higher earnings from Seneca Evercore in 2026.

See Note 8 to our unaudited condensed consolidated financial statements for further information.

Investment Management

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

For the Three Months Ended March 31,

2026 2025 Change

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 Change 2026 2025 Change

(dollars in thousands)

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Other Revenue, net (1)

(333) 975 NM (148) 289 NM

Net Revenues 23,322 21,659 8 % 46,150 41,956 10 %

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Pre-Tax Income $ 5,102 $ 5,242 (3 %) $ 9,931 $ 10,614 (6 %)

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

(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.

(2) Equity in Atalanta Sosnoff is classified as Income from Equity Method Investments.

(3) Non-Compensation expenses are as follows:

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For the Three Months Ended March 31,

2026 2025 Change

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 Change 2026 2025 Change

(dollars in thousands)

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Occupancy and Equipment Rental $ 642 $ 653 (2 %) $ 1,269 $ 1,281 (1 %)

Professional Fees (A)

816 1,246 (35 %)

Professional Fees 846 1,074 (21 %) 1,662 2,320 (28 %)

Travel and Related Expenses 428 255 68 % 692 462 50 %

Technology and Information Services (A)

1,459 1,115 31 %

Technology and Information Services 1,684 1,176 43 % 3,143 2,291 37 %

Depreciation and Amortization 164 108 52 % 316 191 65 %

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Total Operating Expenses $ 4,728 $ 4,057 17 % $ 8,854 $ 8,103 9 %

(A) Includes the reclassification of $0.3 million of technology and related expenses from "Professional Fees" to "Technology and Information Services" in the Investment Management segment for the three months ended March 31, 2025 to conform to the current presentation.

See Notes 2 and 19 to our unaudited condensed consolidated financial statements for further information.

Investment Management Results of Operations

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

As of March 31, 2026, there was no previously distributed carried interest received from the funds subject to repayment.

As of June 30, 2026, 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.

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Assets Under Management

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.

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.

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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.

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.

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

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Fees vary with the type of assets managed and the channel in which they are managed, with higher fees earned on equity assets and alternative investment funds, such as hedge funds and private equity funds, and lower fees earned on fixed income and cash management products.

Clients will increase or reduce the aggregate amount of AUM that we manage for a number of reasons, including changes in the level of assets that they

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have available for investment purposes, their overall asset allocation strategy, our relative performance versus competitors offering similar investment products and the quality of our service.

Clients will increase or reduce the aggregate amount of AUM that we manage for a number of reasons, including changes in the level of assets that they have available for investment purposes, their overall asset allocation strategy, our relative performance versus competitors offering similar investment products and the quality of our service.

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 three months ended March 31, 2026:

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

(dollars in millions)

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Outflows (883)

Market Appreciation (Depreciation) (383)

Balance at March 31, 2026 $ 15,082

Unconsolidated Affiliates - Balance at March 31, 2026

Market Appreciation 723

Balance at June 30, 2026 $ 16,225

Unconsolidated Affiliates - Balance at June 30, 2026

Atalanta Sosnoff $ 10,268

The following table represents the composition of AUM for Wealth Management as of March 31, 2026:

The following table represents the composition of AUM for Wealth Management as of June 30, 2026:

Equities 69 %

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Fees charged to clients reflect the composition of the assets managed and the services provided.

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 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:

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 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:

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

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

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

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

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

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

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

Three Months Ended March 31, 2026 versus March 31, 2025

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

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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.

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.

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.

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.

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

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

Three Months Ended June 30, 2026 versus June 30, 2025

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.

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.

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.

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.

Six Months Ended June 30, 2026 versus June 30, 2025

Net Revenues were $46.2 million for the six months ended June 30, 2026, an increase of $4.2 million, or 10%, versus $42.0 million for the six months ended June 30, 2025.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $4.6 million, or 11%, compared to the six months ended June 30, 2025, as associated AUM increased 12%, from market appreciation as well as net inflows.

Employee Compensation and Benefits Expense was $29.4 million for the six months ended June 30, 2026, an increase of $4.4 million, or 18%, versus $25.0 million for the six months ended June 30, 2025, primarily reflecting higher base salaries and a higher accrual for incentive compensation, resulting from higher headcount.

Non-Compensation expenses were $8.9 million for the six months ended June 30, 2026, an increase of $0.8 million, or 9%, versus $8.1 million for the six 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.

Income from Equity Method Investments was $2.0 million for the six months ended June 30, 2026, an increase of $0.3 million, or 19%, versus $1.7 million for the six months ended June 30, 2025, reflecting higher earnings from Atalanta Sosnoff in 2026.

See Note 8 to our unaudited condensed consolidated financial statements for further information.

Our operating cash flows are primarily influenced by the timing and receipt of fees and the payment of operating expenses, including incentive compensation to our employees and interest expense on our Notes Payable, lines of credit and other financing arrangements, and the payment of income taxes.

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

For the Three Months Ended March 31,

For the Six Months Ended June 30,

(dollars in thousands)

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End of Period $ 1,267,199 $ 627,249

T a b l e o f C o n t e n t s

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.

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.

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.

Six Months Ended June 30, 2025.

Cash, Cash Equivalents and Restricted Cash were $627.2 million at June 30, 2025, a decrease of $254.9 million versus Cash, Cash Equivalents and Restricted Cash of $882.1 million at December 31, 2024.

Operating activities resulted in a net outflow of $111.9 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 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.

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The result of this review contributes to management's recommendation to the Board of Directors as to the level of quarterly dividend payments, if any, as well as the level of long-term borrowings required.

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As a financial services firm, our businesses are materially affected by conditions in the global financial markets and economic conditions throughout the world.

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In addition, during periods of unfavorable market conditions our Investment Management business may be impacted by reduced equity valuations and generate relatively lower revenue because fees we receive, either directly or through our affiliates, typically are in part based on the market value of underlying publicly-traded securities.

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.

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 and obligations to pay principal and interest on our Notes Payable.

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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.

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.

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

T a b l e o f C o n t e n t s

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.

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.

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.

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.

Private Placement Notes

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Interest on the notes is subject to certain escalation provisions in the event that the leverage ratio exceeds certain thresholds.

As of March 31, 2026, we were in compliance with all of these covenants.

As of June 30, 2026, we were in compliance with all of these covenants.

Lines of Credit

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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, 2026.

We and our consolidated subsidiaries were in compliance with these covenants as of June 30, 2026.

Drawings for this facility bear interest at Daily SOFR plus 130 basis points and the maturity date was extended to July 10, 2028.

There were no drawings under this facility at March 31, 2026.

There were no drawings under this facility at June 30, 2026.

EGL maintains a subordinated revolving credit facility with PNC, as amended on October 10, 2025, 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.

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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 PNC Facility.

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 PNC Facility.

The interest rate provisions are Daily SOFR plus 130 basis points and the maturity date is October 10, 2029.

There were no drawings under this facility at March 31, 2026.

There were no drawings under this facility at June 30, 2026.

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

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For further information see Note 17 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 $2.5 million as of March 31, 2026 and December 31, 2025.

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.

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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 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.

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.

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 March 31, 2026 included $986.0 million of Cash and Cash Equivalents and $1.04 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 June 30, 2026 included $1.26 billion of Cash and Cash Equivalents and $1.15 billion 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.

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Nevertheless, we have established procedures to assess both the market and credit risk, as well as specific investment risk, exchange rate risk and credit risk related to receivables.

T a b l e o f C o n t e n t s

Market and Investment Risk

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, 2026, the fair value of our investments with these products, based on closing prices, was $143.1 million.

We had net realized and unrealized losses of ($7.2) million for the three months ended March 31, 2026, from our exchange-traded funds portfolio.

As of June 30, 2026, the fair value of our investments with these products, based on closing prices, was $170.4 million.

We had net realized and unrealized gains of $21.5 million and $14.3 million for the three and six months ended June 30, 2026, respectively, from our exchange-traded funds portfolio.

See Note 7 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 $14.3 million, $28.6 million and $42.9 million, respectively, for the three months ended March 31, 2026.

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 $17.0 million, $34.1 million and $51.1 million, respectively, for the three months ended June 30, 2026.

Private Equity Funds

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See Note 8 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 $0.2 million for the three months ended March 31, 2026.

Exchange Rate Risk

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

For the three months ended March 31, 2026, 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 loss of $10.8 million, net of tax.

For the six months ended June 30, 2026, 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 loss of $10.0 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.

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

We reversed bad debt expense of $0.1 million for the three months ended March 31, 2026 and recorded bad debt expense of $2.6 million for the three months ended March 31, 2025.

T a b l e o f C o n t e n t s

As of March 31, 2026 and December 31, 2025, total receivables recorded in Accounts Receivable amounted to $546.6 million and $555.8 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $143.6 million and $129.9 million, respectively.

We recorded bad debt expense of $3.0 million and $3.5 million for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, total receivables recorded in Accounts Receivable amounted to $568.5 million and $555.8 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $147.6 million and $129.9 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 March 31, 2026, total contract assets recorded in Other Current Assets and Other Assets amounted to $61.6 million and $31.5 million, respectively.

As of June 30, 2026, total contract assets recorded in Other Current Assets and Other Assets amounted to $47.2 million and $31.8 million, respectively.

As of December 31, 2025, total contract assets recorded in Other Current Assets and Other Assets amounted to $147.4 million and $27.9 million, respectively.

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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, 2026, we had Investment Securities of $836.7 million, of which 83% were U.S.

As of June 30, 2026, we had Investment Securities of $1.13 billion, of which 85% were U.S.

Treasury securities.

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GAAP, which requires management to make estimates and assumptions regarding future events that affect the amounts reported in our consolidated financial statements and their notes, including reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

We base these estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances.

We base these estimates on historical experience and various other

assumptions that we believe to be reasonable under the circumstances.

Actual results could differ materially from those estimates.

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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