What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-27 compared with 2025-07-25 · 203 added, 167 removed, 757 unchanged (33% of the section changed)

1 unchanged sentence

The following discussion should be read in conjunction with Lazard’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (the “Form 10-Q”), as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”).

All references to “2025,” “2024,” “second quarter,” “first half” or “the period” refer to, as the context requires, the three month and six month periods ended June 30, 2025 and 2024.

All references to “2025,” “2024,” “third quarter,” “first nine months” or “the period” refer to, as the context requires, the three month and nine month periods ended September 30, 2025 and 2024.

Forward-Looking Statements and Certain Factors that May Affect Our Business

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• adverse general economic conditions or adverse conditions in global or regional financial markets;

• changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, and the economic impacts, volatility and uncertainty resulting therefrom;

• changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, the recent U.S.

federal government shutdown, and the economic impacts, volatility and uncertainty resulting therefrom;

• a decline in our revenues, for example due to a decline in overall mergers and acquisitions (“M&A”) activity, our share of the M&A market or our assets under management (“AUM”);

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• changes in foreign currency exchange rates;

• changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, the recent U.S.

federal government shutdown, and the economic impacts, volatility and uncertainty resulting therefrom;

• the expected timing and levels of funding of awarded institutional mandates;

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Business Summary

Founded in 1848, Lazard is one of the world’s preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia.

Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other

strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals.

Founded in 1848, Lazard is a global financial advisory and asset management firm, with operations in North and South America, Europe, the Middle East, Asia, and Australia.

Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as

asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals.

Our mission is to provide trusted, independent financial advice and investment solutions to our clients, backed by the intellectual capital of our firm.

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Weak or uncertain global economic and financial market conditions can result in a challenging business environment for M&A and capital-raising activity as well as our Asset Management business, but such conditions may provide opportunities for our restructuring business.

We operate in a very competitive and global environment.

Changes in the first half of 2025 to international trade policies and practices have resulted in a period of heightened uncertainty.

The potential for geopolitical impacts could further exacerbate market volatility and contribute to weakened economic conditions.

We operate in a competitive, global environment.

Ongoing developments in international trade policies and practices, in addition to changing domestic governmental priorities, have increased uncertainty relative to prior years.

We believe our broad set of capabilities and diversified business model position us well to meet evolving client needs in varying economic environments.

However, unpredictability, for example due to changing international trade policies, could reduce our clients’ ability to finalize decision-making or execute on investment priorities.

Unpredictability and the potential for related impacts, however, could create or exacerbate market volatility, contribute to weakened economic and business conditions, and reduce our clients’ ability to finalize decision-making or execute on investment priorities.

New risks and uncertainties emerge continuously, and it is not possible for our management to predict all risks and uncertainties, nor can we assess the impact of all potentially applicable factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

Incr / (Decr) 2025 2024 %

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____________________________________

Dealogic as of July 3, 2025.

Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first half of 2025 as compared to the first half of 2024.

The number of defaulting issuers was 64 in the first half of 2025, according to Moody’s Investors Service, Inc., as compared to 80 in the first half of 2024.

Dealogic as of October 2, 2025.

Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first nine months of 2025 as compared to the first nine months of 2024.

The number of defaulting issuers was 91 in the first nine months of 2025, according to Moody’s Investors Service, Inc., as compared to 108 in the first nine months of 2024.

Net revenue trends in Financial Advisory are generally correlated to the level of completed industry-wide M&A transactions and restructuring transactions occurring subsequent to corporate debt defaults.

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Asset Management

The percentage change in major equity market indices at June 30, 2025, as compared to such indices at March 31, 2025, December 31, 2024 and at June 30, 2024 is shown in the table below:

Percentage Changes June 30, 2025 vs.

March 31, 2025 December 31, 2024 June 30, 2024

The percentage change in major equity market indices at September 30, 2025, as compared to such indices at June 30, 2025, December 31, 2024 and at September 30, 2024 is shown in the table below:

Percentage Changes September 30, 2025 vs.

June 30, 2025 December 31, 2024 September 30, 2024

MSCI World Index 7 % 17 % 17 %

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Our occupancy costs represent a significant portion of our aggregate operating expenses and are subject to change from time to time, particularly as leases for real property expire and are renewed or replaced with new, long-term leases for the same or other real property.

Our operating expenses also include our “benefit pursuant to tax receivable agreement”.

We believe that “adjusted non-compensation expense”, a non-GAAP measure, when presented in conjunction with measures prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

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that are subject to local income taxes in foreign jurisdictions.

In addition, Lazard Group LLC is subject to Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.

On July 4, 2025, the U.S.

federal government enacted the One Big Beautiful Bill Act (the “OBBBA”), a broad tax and spending bill that includes provisions impacting corporate taxpayers.

The Company is evaluating the impact of the OBBBA, but currently does not expect a material impact to its effective tax rate as a result of the changes.

In addition, Lazard Group LLC is subject to Unincorporated Business Tax attributable to its operations apportioned to New York City.

Additionally, the Organization for Economic Cooperation and Development (the “OECD”) reached agreement among various countries, including the EU member states, to establish a 15% minimum tax on certain multinational companies, commonly called “Pillar Two”.

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Dollars using exchange rates as of the respective balance sheet date, while revenue and expenses are translated at average exchange rates during the respective periods based on the daily closing exchange rates.

Adjustments that result from translating amounts from a subsidiary’s functional currency are reported as a

component of stockholders’ equity.

Adjustments that result from translating amounts from a subsidiary’s functional currency are reported as a component of stockholders’ equity.

Foreign currency remeasurement gains and losses on transactions in non-functional currencies are included in the condensed consolidated statements of operations.

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Non-compensation 175,082 158,274 521,936 486,791

Benefit pursuant to tax receivable

agreement (20,146) – (20,146) –

Total operating expenses 653,148 623,679 1,949,480 1,955,580

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Revenue related to noncontrolling interests and similar arrangements (a) (16,092) (11,113) (34,103) (23,136)

(Gains) losses related to LFI and other similar arrangements (b) (10,509) 1,201 (15,752) (8,172)

Gains related to LFI and other similar arrangements (b) (4,823) (16,732) (20,575) (24,904)

Distribution fees, reimbursable deal costs, provision for credit losses and other (c) (25,144) (19,310) (64,442) (61,847)

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Losses associated with cost-saving initiatives (e) – – – 587

Total adjustments (f) (26,131) (707) (30,997) (18,895)

Adjusted net revenue (g) $ 769,866 $ 684,642 $ 1,413,051 $ 1,431,207

Gain on sale of property (f) – (114,271) – (114,271)

Total adjustments (g) (23,425) (138,952) (54,422) (157,847)

Adjusted net revenue (h) $ 724,653 $ 645,914 $ 2,137,704 $ 2,077,121

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(d) Interest expense (excluding interest expense incurred by LFB) is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.

(e) Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the six month period ended June 30, 2024.

(f) Total adjustments equal the “other segment items” in Note 20 of Notes to Condensed Consolidated Financial Statements.

(g) Adjusted net revenue is a non-GAAP measure.

(e) Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the nine month period ended September 30, 2024.

(f) Represents gain on the sale of an owned office building.

(g) Total adjustments equal the “other segment items” in Note 20 of Notes to Condensed Consolidated Financial Statements.

(h) Adjusted net revenue is a non-GAAP measure.

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Compensation and benefits expense related to noncontrolling interests and similar arrangements (a) (12,594) (2,249) (20,771) (6,254)

(Charges) credits pertaining to LFI and other similar arrangements (b) (10,509) 1,201 (15,752) (8,172)

Charges pertaining to LFI and other similar arrangements (b) (4,823) (16,732) (20,575) (24,904)

Expenses associated with senior management transition (c) (6,148) – (6,148) –

Expenses associated with cost-saving initiatives – – – (46,610)

Adjusted compensation and benefits expense (c) $ 504,263 $ 451,864 $ 925,549 $ 944,597

Expenses associated with sale of property (d) – (20,121) – (20,121)

Adjusted compensation and benefits expense (e) $ 474,647 $ 426,303 $ 1,400,196 $ 1,370,900

Adjusted compensation and benefits expense, as a %

of adjusted net revenue (c) 65.5 % 66.0 % 65.5 % 66.0 %

of adjusted net revenue (e) 65.5 % 66.0 % 65.5 % 66.0 %

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(b) Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue.

(c) Adjusted compensation and benefits expense and adjusted compensation and benefits expense, as a percentage of adjusted net revenue are non-GAAP measures.

The Company expects to record additional expenses in the fourth quarter of 2025 and the first quarter of 2026 totaling approximately $33 million.

(d) Represents estimated statutory profit sharing expenses associated with the sale of an owned office building.

(e) Adjusted compensation and benefits expense and adjusted compensation and benefits expense, as a percentage of adjusted net revenue are non-GAAP measures.

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Amortization and other acquisition-related costs 27 53 79 189

Expenses associated with senior management

transition 6,148 – 6,148 –

Losses associated with cost-saving initiatives – – – 587

Expenses associated with cost-saving initiatives – – – 48,142

Adjusted operating income (a) $ 108,232 $ 84,166 $ 182,249 $ 203,705

Gain on sale of property – (114,271) – (114,271)

Expenses associated with sale of property – 20,121 – 20,121

Benefit pursuant to tax receivable agreement

obligation ("TRA") (a) (20,146) – (20,146) –

Adjusted operating income (b) $ 101,341 $ 81,372 $ 283,590 $ 285,077

Adjusted operating income, as a % of adjusted net

revenue (a) 14.1 % 12.3 % 12.9 % 14.2 %

revenue (b) 14.0 % 12.6 % 13.3 % 13.7 %

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(a) Adjusted operating income and adjusted operating income, as a percentage of adjusted net revenue are non-GAAP measures.

(a) Represents the effect of the periodic revaluation of the TRA liability.

(b) Adjusted operating income and adjusted operating income, as a percentage of adjusted net revenue are non-GAAP measures.

Headcount information is set forth below:

June 30, 2025 December 31, 2024 June 30, 2024

September 30, 2025 December 31, 2024 September 30, 2024

Managing Directors:

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Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended June 30, 2025 versus June 30, 2024

Three Months Ended September 30, 2025 versus September 30, 2024

The Company reported net income attributable to Lazard of $71 million, as compared to net income attributable to Lazard of $108 million in the 2024 period.

Net revenue increased $111 million, or 16%, with adjusted net revenue increasing $85 million, or 12%, as compared to the 2024 period.

Net revenue decreased $37 million, or 5%, with adjusted net revenue increasing $79 million, or 12%, as compared to the 2024 period.

Fee revenue from investment banking and other advisory activities increased $60 million, or 16%, as compared to the 2024 period.

Asset management fees, including incentive fees, increased $29 million, or 11%, as compared to the 2024 period.

In the aggregate, interest income, other revenue and interest expense increased $19 million as compared to the 2024 period.

In the aggregate, interest income, other revenue and interest expense decreased $126 million as compared to the 2024 period primarily due to a gain on sale of an owned office building of $114 million in the 2024 period.

Compensation and benefits expense increased $33 million, or 7%, as compared to the 2024 period.

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Adjusted non-compensation expense increased $10 million, or 8%, as compared to the 2024 period.

Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development and technology and information services expenses.

Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased technology and information services and marketing and business development expenses.

The ratio of adjusted non-compensation expense to adjusted net revenue was 20.5% for the 2025 period, as compared to 21.4% for the 2024 period.

Operating income increased $29 million, or 46%, as compared to the 2024 period.

Operating income decreased $66 million, or 41%, as compared to the 2024 period.

Adjusted operating income increased $20 million, or 25%, as compared to the 2024 period, and, as a percentage of adjusted net revenue, was 14.0% for the 2025 period, as compared to 12.6% in the 2024 period.

The benefit pursuant to tax receivable agreement was $20,146 in the 2025 period resulting from the periodic revaluation of the TRA liability.

The provision for income taxes reflects an effective tax rate of 22.6%, as compared to 28.0% for the 2024 period.

The change in the effective tax rate principally relates to the impact of discrete benefits during the second quarter of 2024 primarily relating to a favorable court decision in a longstanding tax matter, and changes in the geographic mix of earnings.

Net income attributable to noncontrolling interests increased $4 million as compared to the 2024 period.

Six Months Ended June 30, 2025 versus June 30, 2024

The change in the effective tax rate principally relates to changes in the geographic mix of earnings and the impact of discrete items.

Net income attributable to noncontrolling interests decreased $6 million, or 73%, as compared to the 2024 period.

Nine Months Ended September 30, 2025 versus September 30, 2024

The Company reported net income attributable to Lazard of $187 million, as compared to net income attributable to Lazard of $194 million in the 2024 period.

Net revenue decreased $6 million, with adjusted net revenue decreasing $18 million, or 1%, as compared to the 2024 period.

Fee revenue from investment banking and other advisory activities decreased $8 million, or 1%, as compared to the 2024 period.

Asset management fees, including incentive fees, decreased $5 million, or 1%, as compared to the 2024 period.

In the aggregate, interest income, other revenue and interest expense increased $7 million, as compared to the 2024 period.

Net revenue decreased $43 million, or 2%, with adjusted net revenue increasing $61 million, or 3%, as compared to the 2024 period.

Fee revenue from investment banking and other advisory activities increased $51 million, or 4%, as compared to the 2024 period.

Asset management fees, including incentive fees, increased $25 million, or 3%, as compared to the 2024 period.

In the aggregate, interest income, other revenue and interest expense decreased $119 million, as compared to the 2024 period primarily due to a gain on sale of an owned office building of $114 million in the 2024 period.

Compensation and benefits expense decreased $21 million, or 1%, as compared to the 2024 period which included $47 million associated with the cost-saving initiatives.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $926 million, a decrease of $19 million, or 2%, as compared to $945 million in the 2024 period.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $1,400 million, an increase of $29 million, or 2%, as compared to $1,371 million in the 2024 period.

The ratio of adjusted compensation and benefits expense to adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period.

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Adjusted non-compensation expense increased $33 million, or 8%, as compared to the 2024 period.

Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development, occupancy and equipment and technology and information services expenses.

Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development and technology and information services expenses.

The ratio of adjusted non-compensation expense to adjusted net revenue was 21.2% for the 2025 period, as compared to 20.3% for the 2024 period.

Operating income increased $30 million, or 25%, as compared to the 2024 period.

Operating income decreased $37 million, or 13%, as compared to the 2024 period.

Adjusted operating income decreased $1 million, or 1%, as compared to the 2024 period, and, as a percentage of adjusted net revenue, was 13.3% for the 2025 period, as compared to 13.7% in the 2024 period.

The benefit pursuant to tax receivable agreement was $20,146 in the 2025 period resulting from the periodic revaluation of the TRA liability.

The provision for income taxes reflects an effective tax rate of 18.9%, as compared to 25.4% for the 2024 period.

The change in the effective tax rate principally relates to increases in discrete benefits for share-based incentive compensation and changes in the geographic mix of earnings .

Net income attributable to noncontrolling interests increased $1 million, or 15%, as compared to the 2024 period.

Net income attributable to noncontrolling interests decreased $5 million, or 34%, as compared to the 2024 period.

For additional discussion of the drivers of our adjusted operating results for the period, see “Business Segments” below.

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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________________________________________

Dealogic as of July 3, 2025.

Dealogic as of October 2, 2025.

The geographical distribution of Financial Advisory adjusted net revenue is set forth below in percentage terms and is based on the Lazard offices that generate Financial Advisory adjusted net revenue, which are located in the Americas (primarily in the U.S.), EMEA (primarily in the U.K., France, Germany, Italy and Spain) and the Asia Pacific region and therefore may not be reflective of the geography in which the clients are located.

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended June 30, 2025 versus June 30, 2024

Three Months Ended September 30, 2025 versus September 30, 2024

Financial Advisory net revenue increased $56 million, or 15%, as compared to the 2024 period.

Financial Advisory adjusted net revenue increased $53 million, or 14%, as compared to the 2024 period.

The increase in Financial Advisory net revenue and adjusted net revenue was primarily driven by an increased number of completed M&A transactions with values greater than $500 million as compared to the 2024 period.

The increases in Financial Advisory net revenue and adjusted net revenue are primarily attributable to an increase in the average fee for completed transactions as compared to the prior year.

Adjusted compensation and benefits expense increased $35 million, or 15%, as compared to the 2024 period, primarily driven by increased adjusted net revenue.

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Adjusted operating income was $97 million, an increase of $16 million, or 20%, as compared to adjusted operating income of $81 million in the 2024 period, and, as a percentage of adjusted net revenue, was 23.0%, as compared to 22.0% in the 2024 period.

Six Months Ended June 30, 2025 versus June 30, 2024

Financial Advisory net revenue remained substantially the same as compared to the 2024 period .

Nine Months Ended September 30, 2025 versus September 30, 2024

Financial Advisory net revenue increased $56 million, or 5%, as compared to the 2024 period .

Financial Advisory adjusted net revenue increased $60 million, or 5%, as compared to the 2024 period.

Adjusted compensation and benefits expense decreased $20 million, or 4%, as compared to the 2024 period.

The increases in Financial Advisory net revenue and adjusted net revenue are primarily attributable to an increase in the average fee for completed transactions as compared to the prior year.

Adjusted compensation and benefits expense increased $14 million, or 2%, as compared to the 2024 period.

Adjusted non-compensation expense increased $9 million, or 6%, as compared to the 2024 period primarily due to increased occupancy and equipment and marketing and business development expenses.

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The following table shows the composition of AUM for the Asset Management segment (see Item 1, “Business—Principal Business Lines—Asset Management—Investment Strategies”):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

($ in millions)

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Total AUM $ 264,537 $ 226,321

Total AUM at June 30, 2025 was $248 billion, an increase of $22 billion, or 10%, as compared to total AUM of $226 billion at December 31, 2024 due to market and foreign exchange appreciation, partially offset by net outflows.

Average AUM for the second quarter of 2025 decreased 3% as compared to the three month period ended June 30, 2024 and decreased 5% as compared to the six month period ended June 30, 2024.

As of June 30, 2025, approximately 83% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, compared to approximately 82% as of December 31, 2024.

As of June 30, 2025, approximately 17% of our AUM was managed on behalf of individual client relationships, compared to approximately 18% as of December 31, 2024.

As of June 30, 2025, AUM with foreign currency exposure represented approximately 63% of our total AUM as compared to 62% at December 31, 2024.

Total AUM at September 30, 2025 was $265 billion, an increase of $39 billion, or 17%, as compared to total AUM of $226 billion at December 31, 2024 due to market and foreign exchange appreciation and net inflows.

Average AUM for the third quarter of 2025 increased 5% as compared to the three month period ended September 30, 2024 and average AUM for the first nine months of 2025 decreased 2% as compared to the nine month period ended September 30, 2024.

As of September 30, 2025, approximately 84% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, compared to approximately 82% as of

December 31, 2024.

As of September 30, 2025, approximately 16% of our AUM was managed on behalf of individual client relationships, compared to approximately 18% as of December 31, 2024.

As of both September 30, 2025 and December 31, 2024, AUM with foreign currency exposure represented approximately 62% of our total AUM.

AUM with foreign currency exposure generally declines in value with the strengthening of the U.S.

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Dollar weakens, with all other factors held constant.

The following is a summary of changes in AUM by asset class for the three month and six month periods ended June 30, 2025 and 2024:

Three Months Ended June 30, 2025

The following is a summary of changes in AUM by asset class for the three month and nine month periods ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025

Balance Inflows Outflows Net

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Total $ 248,360 $ 20,024 $ (15,449) $ 4,575 $ 12,046 $ (444) $ 264,537

For three months ended June 30, 2025, net flows were primarily driven by inflows into the Global Equity platform partially offset by outflows from the Multi-Regional Equity platform.

Six Months Ended June 30, 2025

For the three months ended September 30, 2025, net flows were primarily driven by the Global and Emerging Markets platforms.

Nine Months Ended September 30, 2025

Balance Inflows Outflows Net

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Total $ 226,321 $ 49,332 $ (47,739) $ 1,593 $ 24,757 $ 11,866 $ 264,537

For the six months ended June 30, 2025, net flows were primarily driven by outflows from the Multi-Regional Equity platform partially offset by inflows into the Global Equity platform.

Three Months Ended June 30, 2024

For the nine months ended September 30, 2025, net flows were primarily driven by the Global, Multi-Regional and Emerging Markets Equity platforms and the Emerging Markets Fixed Income platform.

Three Months Ended September 30, 2024

Balance Inflows Outflows Net

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Total $ 244,670 $ 8,817 $ (21,196) $ (12,379) $ 9,382 $ 5,984 $ 247,657

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance Inflows Outflows Net

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Total $ 246,651 $ 23,864 $ (49,472) $ (25,608) $ 25,885 $ 729 $ 247,657

Average AUM for the three month and six month periods ended June 30, 2025 and 2024 for each significant asset class is set forth below.

Average AUM for the three month and nine month periods ended September 30, 2025 and 2024 for each significant asset class is set forth below.

Average AUM generally represents the average of the monthly ending AUM balances for the period.

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended June 30, 2025 versus June 30, 2024

Three Months Ended September 30, 2025 versus September 30, 2024

Asset Management net revenue increased $33 million, or 11%, as compared to the 2024 period.

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Incentive fees, on an adjusted basis, were $9 million, an increase of $6 million as compared to $3 million in the 2024 period.

Adjusted compensation and benefits expense increased $5 million, or 4%, as compared to the 2024 period.

Adjusted non-compensation expense increased $8 million, or 14%, as compared to the 2024 period primarily due to increased technology and information services and marketing and business development expenses.

Asset Management adjusted operating income was $65 million, a decrease of $10 million, or 13%, as compared to adjusted operating income of $75 million in the 2024 period, and, as a percentage of adjusted net revenue, was 24.3%, as compared to 28.4% in the 2024 period.

Six Months Ended June 30, 2025 versus June 30, 2024

Asset Management net revenue remained substantially the same as compared to the 2024 period.

Asset Management adjusted net revenue decreased $8 million, or 2%, as compared to the 2024 period.

Management fees and other revenue, on an adjusted basis, was $520 million, a decrease of $10 million, or 2%, as compared to $531 million in the 2024 period.

Adjusted compensation and benefits expense increased $10 million, or 7%, as compared to the 2024 period primarily driven by increased adjusted net revenue.

Adjusted non-compensation expense increased $6 million, or 11%, as compared to the 2024 period primarily due to continued investments in technology and higher mutual fund servicing fees, which were largely driven by an increase in AUM.

Asset Management adjusted operating income was $74 million, an increase of $6 million, or 9%, as compared to adjusted operating income of $68 million in the 2024 period, and, as a percentage of adjusted net revenue, was 25.1%, as compared to 25.0% in the 2024 period.

Nine Months Ended September 30, 2025 versus September 30, 2024

Asset Management net revenue increased $33 million, or 4%, as compared to the 2024 period.

Asset Management adjusted net revenue increased $15 million, or 2%, as compared to the 2024 period.

Management fees and other revenue, on an adjusted basis, was $806 million, an increase of $7 million, or 1%, as compared to $799 million in the 2024 period.

Incentive fees, on an adjusted basis, were $21 million, an increase of $8 million as compared to $13 million in the 2024 period.

Adjusted compensation and benefits expense decreased $3 million, or 1%, as compared to the 2024 period.

Adjusted non-compensation expense increased $12 million, or 10%, as compared to the 2024 period primarily due to increased technology and information services and marketing and business development expenses.

Adjusted compensation and benefits expense increased $8 million, or 2%, as compared to the 2024 period primarily driven by increased adjusted net revenue.

Adjusted non-compensation expense increased $18 million, or 11%, as compared to the 2024 period primarily due to continued investments in technology and increased marketing and business development expenses.

Asset Management adjusted operating income was $201 million, a decrease of $11 million, or 5%, as compared to adjusted operating income of $213 million in the 2024 period, and, as a percentage of net revenue, was 24.4%, as compared to 26.2% in the 2024 period.

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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GAAP basis $ (6,286) $ 120,071 $ (7,481) $ 124,395

Revenue related to noncontrolling interests and similar arrangements

(6,775) (866) (5,936) (3,872)

(Gains) losses related to LFI and other similar arrangements

(10,509) 1,201 (15,752) (8,172)

Revenue related to noncontrolling interests

and similar arrangements (3,327) (5,943) (9,263) (9,815)

Gains related to LFI and other

similar arrangements (4,823) (16,732) (20,575) (24,904)

Interest expense 22,621 22,472 64,668 65,676

Gain on sale of property – (114,271) – (114,271)

Total adjustments (a) 14,471 (114,474) 34,830 (83,314)

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Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended June 30, 2025 versus June 30, 2024

Corporate net revenue increased $18 million as compared to the 2024 period, primarily due to gains in the 2025 period as compared to losses in the 2024 period attributable to investments held in connection with LFI.

Corporate adjusted net revenue decreased $1 million, or 13%, as compared to the 2024 period.

Three Months Ended September 30, 2025 versus September 30, 2024

Corporate net revenue decreased $126 million as compared to the 2024 period, primarily due to a gain on the sale of an owned office building of $114 million in the 2024 period and lower gains in the 2025 period as compared to the 2024 period attributable to investments held in connection with LFI.

Corporate adjusted net revenue increased $3 million, or 46%, as compared to the 2024 period.

Adjusted compensation and benefits expense, including centrally managed costs, increased $3 million, or 8%, as compared to the 2024 period.

Adjusted non-compensation expense, including centrally managed costs, remained substantially the same as compared to the 2024 period.

Six Months Ended June 30, 2025 versus June 30, 2024

Corporate net revenue decreased $6 million as compared to the 2024 period.

Corporate adjusted net revenue decreased $16 million, or 46%, as compared to the 2024 period primarily due to lower investment gains in the 2025 period as compared to the 2024 period.

Adjusted non-compensation expense, including centrally managed costs, increased $1 million, or 4%, as compared to the 2024 period.

Nine Months Ended September 30, 2025 versus September 30, 2024

Corporate net revenue decreased $132 million as compared to the 2024 period, primarily due to a gain on the sale of an owned office building of $114 million in the 2024 period.

Corporate adjusted net revenue decreased $14 million, or 33%, as compared to the 2024 period.

Both net revenue and adjusted net revenue reflect lower investment gains in the 2025 period as compared to the 2024 period.

Adjusted compensation and benefits expense, including centrally managed costs, increased $7 million, or 6%, as compared to the 2024 period.

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Fees from our Private Capital Advisory activities are generally collected over a four-year period from billing and typically include an interest component.

The Company makes cash payments for a significant portion of its incentive compensation with respect to the prior year’s results during the first three months of each calendar year.

The Company makes cash payments for a significant portion of its compensation with respect to the prior year’s results during the first three months of each calendar year.

See the Condensed Consolidated Financial Statements—Consolidated Statements of Cash Flows for further detail.

Summary of Cash Flows:

Six Months Ended

Nine Months Ended

September 30,

($ in millions)

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Other operating activities (b) (480) (134)

Net cash used in operating activities (168) 86

Net cash provided by operating activities 120 380

Investing activities (64) 100

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Effect of exchange rate changes 87 15

Net Decrease in Cash and Cash Equivalents and Restricted Cash (361) (141)

Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash (186) 289

Cash and Cash Equivalents and Restricted Cash (d):

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________________________________________

(a) Consists primarily of amortization of deferred expenses and share-based incentive compensation, noncash lease expenses, depreciation and amortization of property and deferred tax provision (benefit).

(a) Consists primarily of amortization of deferred expenses and share-based incentive compensation, noncash lease expenses, depreciation and amortization of property, gain on sale of an owned office building, and deferred tax provision (benefit).

(b) Includes net changes in operating assets and liabilities.

(c) Consists primarily of purchases of shares of common stock, tax withholdings related to the settlement of vested RSUs and vested PRSUs, common stock dividends, changes in customer deposits, distributions to noncontrolling interest holders, activity related to borrowings (including in 2024, the issuance of the 2031 Notes and the partial redemption of the 2025 Notes).

(c) Consists primarily of purchases of shares of common stock, tax withholdings related to the settlement of vested RSUs and vested PRSUs, common stock dividends, changes in customer deposits, distributions to noncontrolling interest holders, activity related to borrowings (including in 2025 and 2024, the issuance of the 2035 Notes and 2031 Notes, respectively, and the redemption of the 2027 Notes and partial redemption of the 2025 Notes).

(d) Consists of cash and cash equivalents, deposits with banks and short-term investments and restricted cash.

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Net revenue, operating income and cash receipts fluctuate significantly between periods and could be affected by various risks and uncertainties.

While cash flow from Asset Management activities is relatively stable, in the case of Financial Advisory, fee receipts are generally dependent upon the successful completion of client transactions, the occurrence and timing of which is irregular and not subject to Lazard’s control.

Liquidity is significantly impacted by cash payments for incentive compensation, a significant portion of which are made during the first three months of the year.

Liquidity is significantly impacted by cash payments for compensation, a significant portion of which are made during the first three months of the year.

As a consequence, cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year.

We also make payments during the year on behalf of certain managing directors for their estimated taxes, which serve to reduce their respective incentive compensation payments.

Additionally, we made payments through 2024 relating to severance and other employee termination costs associated with cost-saving initiatives.

Liquidity is also affected by the level of LFB customer-related demand deposits, primarily from clients and funds managed by LFG.

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LFB is subject to, and in compliance with, regulatory liquidity coverage ratios and liquidity levels are monitored on a daily basis.

We regularly monitor our liquidity position, including cash levels, lease obligations, investments, credit lines, principal investment commitments, interest and principal payments on debt, capital expenditures, dividend payments, purchases of shares of common stock, compensation and matters relating to liquidity and to compliance with regulatory net capital requirements.

At June 30, 2025, Lazard had approximately $978 million of cash and cash equivalents, including approximately $512 million held at Lazard’s operations outside the U.S.

We regularly monitor our liquidity position, including cash levels, lease obligations, investments and related hedges, credit lines, principal investment commitments, interest and principal payments on debt, capital expenditures, dividend payments, purchases of shares of common stock, compensation and other matters relating to liquidity and compliance with regulatory net capital requirements.

At September 30, 2025, Lazard had approximately $1,172 million of cash and cash equivalents, including approximately $658 million held at Lazard’s operations outside the U.S.

Lazard provides for income taxes on substantially all of its foreign earnings and we expect that no material amount of additional taxes would be recognized upon receipt of dividends or distributions of such earnings from our foreign operations.

As of June 30, 2025, the Company’s remaining lease obligations were $40 million for 2025 (July 1 through December 31), $153 million from 2026 through 2027, $150 million from 2028 through 2029 and $277 million from 2030 through 2039.

As of June 30, 2025, Lazard had approximately $210 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement, among Lazard Group LLC, the Banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).

As of September 30, 2025, the Company’s remaining lease obligations were $21 million for 2025 (October 1 through December 31), $163 million from 2026 through 2027, $152 million from 2028 through 2029 and $279 million from 2030 through 2039.

As of September 30, 2025, Lazard had approximately $210 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement, among Lazard Group LLC, the Banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).

The Second Amended and Restated Credit Agreement contains customary terms and conditions, including limitations on consolidations, mergers, indebtedness and certain payments, as well as financial condition covenants relating to leverage and interest coverage ratios.

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The Second Amended and Restated Credit Agreement includes financial covenants that require that Lazard Group LLC not permit (i) its Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be greater than 3.25 to 1.00, provided that the Consolidated Leverage Ratio may be greater than 3.25 to 1.00 for four (consecutive or nonconsecutive) quarters so long as it is not greater than 3.50 to 1.00 on the last day of any such quarter, or (ii) its Consolidated Interest Coverage Ratio (as defined in the Second Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be less than 3.00 to 1.00.

No amounts were outstanding under the Second Amended and Restated Credit Agreement as of June 30, 2025.

No amounts were outstanding under the Second Amended and Restated Credit Agreement as of September 30, 2025.

In addition, the Second Amended and Restated Credit Agreement contains certain other covenants (none of which relate to financial condition), events of default and other customary provisions.

At June 30, 2025, the Company was in compliance with all financial and nonfinancial provisions.

At September 30, 2025, the Company was in compliance with all financial and nonfinancial provisions.

Lazard’s annual cash flow generated from operations historically has been sufficient to enable it to meet its annual obligations.

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See also Notes 11, 13, 14, 16, 18 and 19 of Notes to Condensed Consolidated Financial Statements regarding information in connection with commitments, incentive plans, employee benefit plans, income taxes, tax receivable agreement obligations and regulatory requirements, respectively.

The table below sets forth our corporate indebtedness as of June 30, 2025 and December 31, 2024.

The table below sets forth our corporate indebtedness as of September 30, 2025 and December 31, 2024.

The agreements with respect to this indebtedness are discussed in more detail in our condensed consolidated financial statements and related notes included elsewhere in this Form 10-Q and in our Form 10-K.

Outstanding as of

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Senior Debt Annual Interest Rate Principal Unamortized

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Senior Notes 6.00 % 400.0 3.6 396.4 400.0 4.1 395.9

Lazard Group 2035

Senior Notes 5.625 % 300.0 2.9 297.1 – – –

$ 1,700.0 $ 12.7 $ 1,687.3 $ 1,700.0 $ 13.0 $ 1,687.0

In the third quarter of 2025, Lazard Group LLC issued $300 million of 5.625% senior notes due in 2035.

Lazard Group LLC used the net proceeds from the 2035 Notes to repurchase or redeem all of the issued and outstanding 2027 Notes.

The indenture and supplemental indentures relating to Lazard Group LLC’s senior notes contain certain covenants (none of which relate to financial condition), events of default and other customary provisions.

At June 30, 2025, the Company was in compliance with all of these provisions.

At September 30, 2025, the Company was in compliance with all of these provisions.

We may, to the extent required and subject to restrictions contained in our financing arrangements, use other financing sources, which may cause us to be subject to additional restrictions or covenants.

Guarantor Information

has provided an unconditional and irrevocable guarantee for the repayment of the Lazard Group 2027 Notes, 2028 Notes, 2029 Notes and 2031 Notes (collectively, the “Lazard Group Senior Notes”), and has amended the Second Amended and Restated Credit Agreement, to provide an unconditional and irrevocable guarantee for Lazard Group's obligations under the Second Amended and Restated Credit Agreement.

has provided an unconditional and irrevocable guarantee for the repayment of all the senior notes listed in the table above, and has amended the Second Amended and Restated Credit Agreement, to provide an unconditional and irrevocable guarantee for Lazard Group's obligations under the Second Amended and Restated Credit Agreement.

See Note 10 of Notes to Condensed Consolidated Financial Statements for additional information regarding senior debt.

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Stockholders’ Equity

At June 30, 2025, total stockholders’ equity was $786 million, as compared to $685 million at December 31, 2024, including $742 million and $636 million attributable to Lazard, Inc.

At September 30, 2025, total stockholders’ equity was $879 million, as compared to $685 million at December 31, 2024, including $842 million and $636 million attributable to Lazard, Inc.

on the respective dates.

The net activity in stockholders’ equity during the six month period ended June 30, 2025 is reflected in the table below (in millions of dollars):

The net activity in stockholders’ equity during the nine month period ended September 30, 2025 is reflected in the table below (in millions of dollars):

Stockholders’ Equity - January 1, 2025 $ 685

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Other - net (21)

Stockholders’ Equity - June 30, 2025 $ 786

Stockholders’ Equity - September 30, 2025 $ 879

________________________________________

(a) Excludes net income associated with redeemable noncontrolling interests of $5 million in 2025.

(a) Excludes net income associated with redeemable noncontrolling interests of $8 million.

(b) The tax withholding portion of share-based compensation is settled in cash, not shares.

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Purchases with respect to such program are set forth in the table below:

Six Months Ended June 30:

Nine Months Ended September 30:

Shares Purchased Average

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2025 879,334 $ 46.64

As of June 30, 2025, a total of $160 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.

During the six month period ended June 30, 2025, Lazard, Inc.

As of September 30, 2025, a total of $159 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.

During the nine month period ended September 30, 2025, Lazard, Inc.

had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

On July 23, 2025, the Board of Directors of Lazard declared a quarterly dividend of $0.50 per share on our common stock.

The dividend is payable on August 15, 2025 to stockholders of record on August 4, 2025.

On October 22, 2025, the Board of Directors of Lazard declared a quarterly dividend of $0.50 per share on our common stock.

The dividend is payable on November 14, 2025 to stockholders of record on November 3, 2025.

See Notes 12 and 13 of Notes to Condensed Consolidated Financial Statements for additional information regarding Lazard’s stockholders’ equity and incentive plans, respectively.

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Our principal subsidiaries are subject to regulatory requirements in their respective jurisdictions to ensure their general financial soundness and liquidity, which require, among other things, that we comply with rules regarding certain minimum capital requirements.

These regulatory requirements may restrict the

flow of funds to and from affiliates.

See Note 19 of Notes to Condensed Consolidated Financial Statements for further information.

These regulatory requirements may restrict the flow of funds to and from affiliates.

See Note 19 of Notes to Condensed Consolidated Financial Statements for further

These regulations differ in the U.S., the U.K., France and other countries in which we operate.

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In addition to estimating actual current tax liabilities for these jurisdictions, we also must account for the tax effects of differences between the financial reporting and tax reporting of items, such as basis adjustments, compensation and benefits expense, and depreciation and amortization.

Differences which

are temporary in nature result in deferred tax assets and liabilities.

Significant judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, any valuation allowance recorded against our deferred tax assets and our unrecognized tax benefits.

Differences which are temporary in nature result in deferred tax assets and liabilities.

Significant judgment is required in determining our

provision for income taxes, our deferred tax assets and liabilities, any valuation allowance recorded against our deferred tax assets and our unrecognized tax benefits.

We recognize a deferred tax asset if it is more likely than not (defined as a likelihood of greater than 50%) that a tax benefit will be accepted by the relevant taxing authority.

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To the extent material, we consolidate seed and LFI investment entities in which we own a controlling financial interest, and we would deconsolidate any such entity when we no longer have a controlling financial interest in such entity.

Seed investments held in entities in which the Company maintained a controlling financial interest were $230 million in 17 entities as of June 30, 2025, as compared to $111 million in ten entities as of December 31, 2024.

LFI investments held in entities in which the Company maintained a controlling financial interest were $54 million in nine entities as of June 30, 2025, as compared to $93 million in nine entities as of December 31, 2024.

As of June 30, 2025 and December 31, 2024, the Company did not consolidate any seed investment entities or LFI investment entities, with the exception of the consolidation of certain LFI funds (see Note 21 of Notes to Condensed Consolidated Financial Statements).

Seed investments held in entities in which the Company maintained a controlling financial interest were $195 million in 13 entities as of September 30, 2025, as compared to $111 million in ten entities as of December 31, 2024.

LFI investments held in entities in which the Company maintained a controlling financial interest were $59 million in nine entities as of September 30, 2025, as compared to $93 million in nine entities as of December 31, 2024.

As of September 30, 2025 and December 31, 2024, the Company did not consolidate any seed investment entities or LFI investment entities, with the exception of the consolidation of certain LFI funds (see Note 21 of Notes to Condensed Consolidated Financial Statements).

As such, seed investments and substantially all of LFI investments included in “investments” on the condensed consolidated statements of financial condition represented the Company’s economic interest in the seed and LFI investments.

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Data relating to investments is set forth below:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

($ in thousands)

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Private equity 7,270 7,570

Fixed income and other 2,506 2,266

Other 1,722 2,266

Total other investments owned 8,992 9,836

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_______________________

(a) At June 30, 2025 and December 31, 2024, seed investments in directly owned equity securities were invested as follows:

June 30, 2025 December 31, 2024

(a) At September 30, 2025 and December 31, 2024, seed investments in directly owned equity securities were invested as follows:

September 30, 2025 December 31, 2024

Percentage invested in:

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Risk exposures may change as a result of ongoing portfolio activities and changing market conditions, among other things.

Equity Market Price Risk—At June 30, 2025 and December 31, 2024, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $270 million and $164 million, respectively.

Equity Market Price Risk—At September 30, 2025 and December 31, 2024, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $279 million and $164 million, respectively.

The Company hedges market exposure arising from a significant portion of our equity investment portfolios by entering into total return swaps.

The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $1.2 million and $0.9 million as of June 30, 2025 and December 31, 2024, respectively, in the carrying value of such investments, including the effect of the hedging transactions.

Interest Rate and Credit Spread Risk—At June 30, 2025 and December 31, 2024, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $18 million and $24 million, respectively.

The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $0.9 million as of both September 30, 2025 and December 31, 2024 in the carrying value of such investments, including the effect of the hedging transactions.

Interest Rate and Credit Spread Risk—At September 30, 2025 and December 31, 2024, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $16 million and $24 million, respectively.

The Company hedges market exposure arising from a portion of our debt investment portfolios by entering into total return swaps.

The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net decrease of approximately $0.7 million as of June 30, 2025 and a net increase of approximately $0.6 million in the carrying value of such investments as of December 31, 2024, including the effect of the hedging transactions.

Foreign Exchange Rate Risk—At June 30, 2025 and December 31, 2024, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and private equity investments was $63 million and $65 million, respectively.

The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net decrease of approximately $0.6 million as of September 30, 2025 and a net increase of approximately $0.6 million in the carrying value of such investments as of December 31, 2024, including the effect of the hedging transactions.

Foreign Exchange Rate Risk—At September 30, 2025 and December 31, 2024, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and private equity investments was $126 million and $65 million, respectively.

A significant portion of the Company’s foreign currency exposure related to our equity and debt investment portfolios is hedged through the aforementioned total return swaps.

The Company estimates that a 10% adverse change in foreign exchange rates versus the U.S.

Dollar would result in a net decrease of approximately $2.1 million and $2.0 million in the carrying value of such investments as of June 30, 2025 and December 31, 2024, respectively, including the effect of the hedging transactions.

Dollar would result in a net decrease of approximately $2.5 million and $2.0 million in the carrying value of such investments as of September 30, 2025 and December 31, 2024, respectively, including the effect of the hedging transactions.

Private Equity—The Company invests in private equity primarily as a part of its co-investment activities and in connection with certain legacy businesses.

At June 30, 2025 and December 31, 2024, the Company’s exposure to changes in fair value of such investments was approximately $27 million and $24 million, respectively.

The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.7 million and $2.4 million, respectively, in the carrying value of such investments as of June 30, 2025 and December 31, 2024.

At September 30, 2025 and December 31, 2024, the Company’s exposure to changes in fair value of such investments was approximately $28 million and $24 million, respectively.

The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.8 million and $2.4 million, respectively, in the carrying value of such investments as of September 30, 2025 and December 31, 2024.

For additional information regarding risks associated with our investments, see Item 1A, “Risk Factors—Other Business Risks—Our results of operations may be affected by fluctuations in the fair value of positions held in our investment portfolios” in our Form 10-K.

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We maintain an allowance for credit losses to provide coverage for expected losses from our receivables.

At June 30, 2025, total receivables amounted to $755 million, net of an allowance for credit losses of $27 million.

As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 77% and 23% of total receivables, respectively.

At December 31, 2024, total receivables amounted to $754 million, net of an allowance for

credit losses of $32 million.

At September 30, 2025, total receivables amounted to $775 million, net of an allowance for credit losses of $28 million.

As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 79% and 21% of

total receivables, respectively.

At December 31, 2024, total receivables amounted to $754 million, net of an allowance for credit losses of $32 million.

As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 85% and 15% of total receivables, respectively.

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LFG and LFB offer wealth management and banking services to high net worth individuals and families.

At June 30, 2025 and December 31, 2024, customers and other receivables included $117 million and $83 million, respectively, of such LFB loans which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans.

At September 30, 2025 and December 31, 2024, customers and other receivables included $130 million and $83 million, respectively, of such LFB loans which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans.

Therefore, there was no allowance for credit losses required at those dates related to such receivables.

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In entering into derivative agreements, the Company is subject to counterparty risk.

Net derivative assets amounted to $0.1 million and $4 million at June 30, 2025 and December 31, 2024, respectively, and net derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to LFI and other similar deferred compensation arrangements, amounted to $32 million and $3 million at June 30, 2025 and December 31, 2024, respectively.

Net derivative assets amounted to $0.5 million and $4 million at September 30, 2025 and December 31, 2024, respectively, and net derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to LFI and other similar deferred compensation arrangements, amounted to $37 million and $3 million at September 30, 2025 and December 31, 2024, respectively.

The Company also records derivative liabilities relating to its obligations pertaining to LFI awards and other similar deferred compensation arrangements, the fair value of which is based on the value of the underlying investments, adjusted for estimated forfeitures.

Changes in the fair value of the derivative liabilities are equally offset by the changes in the fair value of investments which are expected to be delivered upon settlement of LFI awards.

Derivative liabilities relating to LFI amounted to $183 million and $271 million at June 30, 2025 and December 31, 2024, respectively.

Derivative liabilities relating to LFI amounted to $185 million and $271 million at September 30, 2025 and December 31, 2024, respectively.

Risks Related to Cash and Cash Equivalents and Corporate Indebtedness

A significant portion of the Company’s indebtedness has fixed interest rates, while its cash and cash equivalents typically bear interest at market interest rates.

Based on account balances as of June 30, 2025, Lazard estimates that its annual operating income relating to cash and cash equivalents would increase by approximately $10 million in the event interest rates were to increase by 1% and decrease by approximately $10 million if rates were to decrease by 1%.

As of June 30, 2025, the Company’s cash and cash equivalents totaled approximately $978 million.

Based on account balances as of September 30, 2025, Lazard estimates that its annual operating income relating to cash and cash equivalents would increase by approximately $12 million in the event interest rates were to increase by 1% and decrease by approximately $12 million if rates were to decrease by 1%.

As of September 30, 2025, the Company’s cash and cash equivalents totaled approximately $1,172 million.

Substantially all of the Company’s cash and cash equivalents were invested in (i) highly liquid institutional money market funds (a significant majority of which were invested solely in U.S.

Government or agency money market funds), (ii) in short-term interest bearing and non-interest bearing accounts at a number of leading banks throughout the world and (iii) in short-term certificates of deposit from such banks.

Government or agency money market funds), (ii) in short-term interest bearing and non-interest bearing accounts at a number of leading banks throughout the world, (iii) overnight sponsored repurchase agreements and (iv) in short-term certificates of deposit from such banks.

Cash and cash equivalents are continuously monitored.

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The Company has in place business continuity and disaster recovery programs that manage its capabilities to provide services in the case of a disruption.

We purchase insurance policies designed to help protect the Company against accidental loss and losses that may significantly affect our financial

objectives, personnel, property or our ability to continue to meet our responsibilities to our various stakeholder groups.

We purchase insurance policies

designed to help protect the Company against accidental loss and losses that may significantly affect our financial objectives, personnel, property or our ability to continue to meet our responsibilities to our various stakeholder groups.

See Item 1A, “Risk Factors” in our Form 10-K for more information regarding operational risk in our business and Item 1C, “Cybersecurity” in our Form 10-K for more information on the Company’s processes to identify, assess and manage cybersecurity risks.

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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