Lazard, Inc. 10-Q

Item 1. Financial Statements (Unaudited) Page Condensed Consolidated Statements of Financial Condition as of September 30, 2025 and December 31, 2024 2 Condensed Consolidated Statements of Operations for the three month and nine month periods ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Comprehensive Income for the three month and nine month periods ended September 30, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2025 and 2024 6 Condensed Consolidated Statements of Changes in Stockholders’ Equity and Redeemable Noncontrolling Interests for the three month and nine month periods ended September 30, 2025 and 2024 8 Notes to Condensed Consolidated Financial Statements 12 1 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (UNAUDITED) (dollars in thousands, except for per share data) September 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 1,171,985 $ 1,308,218 Deposits with banks and short-term investments 217,606 268,684 Restricted cash 33,452 32,466 Receivables (net of allowance for credit losses of $ 27,893 and $ 32,033 at September 30, 2025 and December 31, 2024, respectively): Fees 613,714 640,567 Customers and other 160,968 113,056 774,682 753,623 Investments (including $ 45,226 pledged at September 30, 2025) 623,711 614,947 Property (net of accumulated amortization and depreciation of $ 327,537 and $ 332,840 at September 30, 2025 and December 31, 2024, respectively) 173,285 160,402 Operating lease right-of-use assets 437,014 434,938 Goodwill and other intangible assets (net of accumulated amortization of $ 67,711 at both September 30, 2025 and December 31, 2024) 395,251 393,575 Deferred tax assets 473,879 479,582 Other assets 333,055 347,558 Total Assets $ 4,633,920 $ 4,793,993 See notes to condensed consolidated financial statements. 2 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (UNAUDITED) (dollars in thousands, except for per share data) September 30, 2025 December 31, 2024 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY Liabilities: Deposits and other customer payables $ 346,899 $ 308,213 Accrued compensation and benefits 505,860 844,953 Operating lease liabilities 510,761 505,483 Tax receivable agreement obligation 55,680 75,899 Senior debt 1,687,281 1,687,052 Deferred tax liabilities 959 1,084 Other liabilities 569,336 606,526 Total Liabilities 3,676,776 4,029,210 Commitments and contingencies Redeemable noncontrolling interests 78,518 79,629 STOCKHOLDERS’ EQUITY Preferred stock, par value $ 0.01 per share; 15,000,000 shares authorized; no shares issued and outstanding at September 30, 2025 and December 31, 2024 – – Common stock: Par value $ 0.01 per share ( 500,000,000 shares authorized; 112,746,606 and 112,766,091 shares issued at September 30, 2025 and December 31, 2024, respectively, including shares held by subsidiaries) 1,127 1,128 Additional paid-in-capital 293,012 327,810 Retained earnings 1,493,261 1,472,113 Accumulated other comprehensive loss, net of tax ( 272,950 ) ( 326,742 ) 1,514,450 1,474,309 Common stock held by subsidiaries, at cost ( 17,868,792 and 22,467,315 shares at September 30, 2025 and December 31, 2024, respectively) ( 672,928 ) ( 838,069 ) Total Lazard Stockholders’ Equity 841,522 636,240 Noncontrolling interests 37,104 48,914 Total Stockholders’ Equity 878,626 685,154 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity $ 4,633,920 $ 4,793,993 See notes to condensed consolidated financial statements. 3 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED) (dollars in thousands, except for per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 REVENUE Investment banking and other advisory fees $ 425,895 $ 366,385 $ 1,279,488 $ 1,228,185 Asset management fees 308,038 278,663 848,259 823,426 Interest income 7,660 15,005 28,529 39,330 Other 29,171 147,361 100,812 209,945 Total revenue 770,764 807,414 2,257,088 2,300,886 Interest expense 22,686 22,548 64,962 65,918 Net revenue 748,078 784,866 2,192,126 2,234,968 OPERATING EXPENSES Compensation and benefits 498,212 465,405 1,447,690 1,468,789 Occupancy and equipment 31,908 34,249 101,024 99,137 Marketing and business development 26,085 21,782 83,409 70,874 Technology and information services 48,862 44,628 144,350 135,951 Professional services 20,951 19,541 64,377 63,155 Fund administration and outsourced services 32,390 27,996 88,989 81,250 Benefit pursuant to tax receivable agreement ( 20,146 ) – ( 20,146 ) – Other 14,886 10,078 39,787 36,424 Total operating expenses 653,148 623,679 1,949,480 1,955,580 OPERATING INCOME 94,930 161,187 242,646 279,388 Provision for income taxes 21,430 45,052 45,840 70,976 NET INCOME 73,500 116,135 196,806 208,412 LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 2,253 8,197 9,838 14,810 NET INCOME ATTRIBUTABLE TO LAZARD $ 71,247 $ 107,938 $ 186,968 $ 193,602 ATTRIBUTABLE TO LAZARD COMMON STOCKHOLDERS: WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: Basic 98,112,393 93,627,476 96,967,379 92,591,435 Diluted 108,001,762 103,475,234 105,914,050 101,151,624 NET INCOME PER SHARE OF COMMON STOCK: Basic $ 0.71 $ 1.13 $ 1.88 $ 2.04 Diluted $ 0.65 $ 1.02 $ 1.72 $ 1.88 See notes to condensed consolidated financial statements. 4 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 NET INCOME $ 73,500 $ 116,135 $ 196,806 $ 208,412 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: Currency translation adjustments (net of tax expense of $ 3,200 for the three months and nine months ended September 30, 2025) ( 8,838 ) 41,627 61,243 20,793 Employee benefit plans: Actuarial gain (loss) (net of tax expense (benefit) of $ 628 and $( 2,254 ) for the three months ended September 30, 2025 and 2024, respectively, and $( 3,710 ) and $( 1,595 ) for the nine months ended September 30, 2025 and 2024, respectively) 2,961 ( 9,033 ) ( 12,856 ) ( 7,429 ) Adjustment for items reclassified to earnings (net of tax expense of $ 554 and $ 545 for the three months ended September 30, 2025 and 2024, respectively, and $ 1,646 and $ 1,455 for the nine months ended September 30, 2025 and 2024, respectively) 1,831 1,888 5,472 4,775 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX ( 4,046 ) 34,482 53,859 18,139 COMPREHENSIVE INCOME 69,454 150,617 250,665 226,551 LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 2,254 8,230 9,905 14,843 COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD $ 67,200 $ 142,387 $ 240,760 $ 211,708 See notes to condensed consolidated financial statements. 5 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED) (dollars in thousands) Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 196,806 $ 208,412 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of deferred expenses and share-based incentive compensation 359,051 377,255 Noncash lease expense 49,587 49,903 Depreciation and amortization of property 25,549 27,284 Deferred tax benefit ( 2,363 ) ( 34,209 ) Benefit pursuant to tax receivable agreement ( 20,146 ) – Gain on sale of owned office building – ( 114,271 ) Other adjustments ( 8,566 ) – (Increase) decrease in operating assets and increase (decrease) in operating liabilities: Receivables-net 45,582 85,812 Investments ( 14,133 ) 66,402 Other assets ( 7,858 ) ( 87,375 ) Accrued compensation and benefits and other liabilities ( 503,882 ) ( 199,239 ) Net cash provided by operating activities 119,627 379,974 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property ( 28,366 ) ( 30,625 ) Proceeds from sale of property – 194,283 Purchase of equity method investment – ( 17,488 ) Purchase of investments – ( 98,350 ) Proceeds from sales and maturities of debt securities – 50,000 Other disposals of property – 1,995 Other investing activities ( 35,584 ) – Net cash provided by (used in) investing activities ( 63,950 ) 99,815 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from (payments for) customer deposits, net 12,477 ( 42,610 ) Proceeds from: Issuance of senior debt 300,000 396,010 Contributions from noncontrolling interests 1,466 1,989 Payments for: Extinguishment of senior debt ( 298,354 ) ( 233,073 ) Distributions to noncontrolling interests ( 2,049 ) ( 3,976 ) Tax receivable agreement – ( 30,950 ) Purchase of common stock ( 41,012 ) ( 43,928 ) Common stock dividends ( 139,203 ) ( 133,823 ) Settlement of share-based incentive compensation in satisfaction of tax withholding requirements ( 114,783 ) ( 64,189 ) LFI Consolidated Funds redemptions ( 30,232 ) ( 39,074 ) Other financing activities ( 17,269 ) ( 12,172 ) Net cash used in financing activities ( 328,959 ) ( 205,796 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 86,957 14,763 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 186,325 ) 288,756 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1 1,609,368 1,224,983 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—September 30 $ 1,423,043 $ 1,513,739 See notes to condensed consolidated financial statements. 6 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION: September 30, 2025 December 31, 2024 Cash and cash equivalents $ 1,171,985 $ 1,308,218 Deposits with banks and short-term investments 217,606 268,684 Restricted cash 33,452 32,466 TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH $ 1,423,043 $ 1,609,368 See notes to condensed consolidated financial statements. 7 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2025 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held By Subsidiaries Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - July 1, 2025 112,766,091 $ 1,128 $ 225,058 $ 1,477,618 $ ( 268,903 ) 18,408,649 $ ( 693,298 ) $ 741,603 $ 44,881 $ 786,484 $ 83,578 Comprehensive income (loss): Net income (loss) 71,247 71,247 ( 699 ) 70,548 2,952 Other comprehensive income (loss) - net of tax ( 4,047 ) ( 4,047 ) 1 ( 4,046 ) Amortization of share-based incentive compensation 95,059 95,059 1,064 96,123 Dividend equivalents 8,311 ( 8,425 ) ( 114 ) ( 2,717 ) ( 2,831 ) Common stock dividends ($ 0.50 per share) ( 47,179 ) ( 47,179 ) ( 47,179 ) Purchase and cancellation of common stock (a) ( 19,485 ) ( 1 ) ( 1,083 ) ( 1,084 ) ( 1,084 ) Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 2,195 ( 34,333 ) ( 539,857 ) 20,370 ( 13,963 ) – ( 13,963 ) Distribution to noncontrolling interests, net ( 1,832 ) ( 1,832 ) LFI Consolidated Funds ( 8,012 ) Other ( 3,594 ) ( 3,594 ) Balance - September 30, 2025 112,746,606 $ 1,127 $ 293,012 $ 1,493,261 $ ( 272,950 ) 17,868,792 $ ( 672,928 ) $ 841,522 $ 37,104 $ 878,626 $ 78,518 ___________________________________ (a) In the third quarter of 2025, Lazard, Inc. purchased 19,485 shares of common stock which were immediately canceled by the Company and therefore were not included in treasury stock. There was no impact on total stockholders' equity as a result of the share cancellation. See notes to condensed consolidated financial statements. 8 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2025 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held By Subsidiaries Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - January 1, 2025 112,766,091 $ 1,128 $ 327,810 $ 1,472,113 $ ( 326,742 ) 22,467,315 $ ( 838,069 ) $ 636,240 $ 48,914 $ 685,154 $ 79,629 Comprehensive income: Net income 186,968 186,968 1,693 188,661 8,145 Other comprehensive income - net of tax 53,792 53,792 67 53,859 Amortization of share-based incentive compensation 275,674 275,674 4,574 280,248 Dividend equivalents 25,913 ( 26,617 ) ( 704 ) ( 12,445 ) ( 13,149 ) Common stock dividends ($ 1.50 per share) ( 139,203 ) ( 139,203 ) ( 139,203 ) Purchase and cancellation of common stock (a) ( 19,485 ) ( 1 ) ( 1,083 ) 859,849 ( 39,928 ) ( 41,012 ) ( 41,012 ) Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 12,942 ( 333,198 ) ( 5,500,341 ) 206,996 ( 126,202 ) ( 1,522 ) ( 127,724 ) Business acquisitions and related equity transactions: Common stock issuable 1,235 1,235 – 1,235 Distribution to noncontrolling interests, net ( 583 ) ( 583 ) LFI Consolidated Funds ( 9,256 ) Other ( 3,339 ) 41,969 ( 1,927 ) ( 5,266 ) ( 3,594 ) ( 8,860 ) Balance - September 30, 2025 112,746,606 $ 1,127 $ 293,012 $ 1,493,261 $ ( 272,950 ) 17,868,792 $ ( 672,928 ) $ 841,522 $ 37,104 $ 878,626 $ 78,518 ___________________________________ (a) In the third quarter of 2025, Lazard, Inc. purchased 19,485 shares of common stock which were immediately canceled by the Company and therefore were not included in treasury stock. There was no impact on total stockholders' equity as a result of the share cancellation. See notes to condensed consolidated financial statements. 9 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2024 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held By Subsidiaries Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - July 1, 2024 112,766,091 $ 1,128 $ 218,455 $ 1,382,703 $ ( 306,293 ) 22,596,555 $ ( 837,338 ) $ 458,655 $ 55,535 $ 514,190 $ 80,931 Comprehensive income (loss): Net income 107,938 107,938 2,620 110,558 5,577 Other comprehensive income - net of tax 34,449 34,449 33 34,482 Amortization of share-based incentive compensation 74,787 74,787 797 75,584 Dividend equivalents 7,633 ( 7,851 ) ( 218 ) ( 3,056 ) ( 3,274 ) Common stock dividends ($ 0.50 per share) ( 45,092 ) ( 45,092 ) ( 45,092 ) Purchase of common stock 67,500 ( 3,112 ) ( 3,112 ) ( 3,112 ) Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 538 ( 16,784 ) ( 367,739 ) 13,650 ( 3,134 ) – ( 3,134 ) Distributions to noncontrolling interests, net ( 214 ) ( 214 ) LFI Consolidated Funds ( 2,041 ) Balance - September 30, 2024 112,766,091 $ 1,128 $ 284,091 $ 1,437,698 $ ( 271,844 ) 22,296,316 $ ( 826,800 ) $ 624,273 $ 55,715 $ 679,988 $ 84,467 See notes to condensed consolidated financial statements. 10 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS FOR THE NINE MONTH PERIOD ENDED September 30, 2024 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held By Subsidiaries Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - January 1, 2024 112,766,091 $ 1,128 $ 247,204 $ 1,402,636 $ ( 289,950 ) 25,340,287 $ ( 937,259 ) $ 423,759 $ 58,428 $ 482,187 $ 87,675 Comprehensive income (loss): Net income 193,602 193,602 6,155 199,757 8,655 Other comprehensive income - net of tax 18,106 18,106 33 18,139 Amortization of share-based incentive compensation 232,998 232,998 2,131 235,129 Dividend equivalents 23,896 ( 24,717 ) ( 821 ) ( 10,286 ) ( 11,107 ) Common stock dividends ($ 1.50 per share) ( 133,823 ) ( 133,823 ) ( 133,823 ) Purchase of common stock 1,123,413 ( 43,928 ) ( 43,928 ) ( 43,928 ) Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 1,419 ( 221,242 ) ( 4,167,528 ) 154,393 ( 66,849 ) 1,241 ( 65,608 ) Business acquisitions and related equity transactions: Common stock issuable 1,235 1,235 – 1,235 Distributions to noncontrolling interests, net ( 1,987 ) ( 1,987 ) LFI Consolidated Funds ( 11,863 ) Other 144 ( 6 ) ( 6 ) ( 6 ) Balance - September 30, 2024 112,766,091 $ 1,128 $ 284,091 $ 1,437,698 $ ( 271,844 ) 22,296,316 $ ( 826,800 ) $ 624,273 $ 55,715 $ 679,988 $ 84,467 See notes to condensed consolidated financial statements. 11 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 1. ORGANIZATION AND BASIS OF PRESENTATION Organization Lazard, Inc. is a global financial advisory and asset management firm, incorporated in Delaware that specializes in crafting solutions to the complex financial and strategic challenges of our clients. 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. Lazard, Inc. indirectly held 100 % of all outstanding common membership interests of Lazard Group LLC, a Delaware limited liability company (collectively referred to, together with its subsidiaries, as “Lazard Group”), as of September 30, 2025 and December 31, 2024. Lazard, Inc., through its control of the managing members of Lazard Group LLC, controls Lazard Group, which is governed by a Third Amended and Restated Operating Agreement that is effective as of January 1, 2023 (the “Operating Agreement”). Lazard, Inc.’s primary operating asset is its indirect ownership of the common membership interests of, and managing member interests in, Lazard Group, whose principal operating activities are included in two business segments: • Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services including mergers and acquisitions (“M&A”) advisory, capital markets advisory, shareholder advisory, sovereign advisory, geopolitical advisory, restructuring and liability management, capital raising and placement, and other strategic matters; and • Asset Management, which offers a broad range of global investment solutions and investment and wealth management services in equity and fixed income strategies, asset allocation strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private wealth clients. In addition, we record selected other activities in our Corporate segment, including cash management, investments, deferred tax assets, outstanding indebtedness and certain contingent obligations. Basis of Presentation The accompanying condensed consolidated financial statements of Lazard have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2024. The accompanying December 31, 2024 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the condensed consolidated financial statements and the accompanying disclosures. For example, discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an estimated annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates. The condensed consolidated results of operations for the three month and nine month periods ended September 30, 2025 are not indicative of the results to be expected for any future interim or annual period. 12 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The condensed consolidated financial statements include Lazard, Inc. and its subsidiaries including Lazard Group LLC and Lazard Group LLC’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”), along with its subsidiaries, Lazard Frères Banque SA (“LFB”) and Lazard Frères Gestion SAS (“LFG”), and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries. The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates: • Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs and • Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE (see Note 21). When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings or losses or (ii) elects the option to measure its investment at fair value. Intercompany transactions and balances have been eliminated. Amortization and other acquisition-related costs are reported in “operating expenses-other” in the condensed consolidated statements of operations and “amortization of deferred expenses and share-based incentive compensation” in the condensed consolidated statements of cash flows. Such amounts were previously reported separately. Prior year information has been recast to reflect the updated presentation. 2 . RECENT ACCOUNTING DEVELOPMENTS Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards — In March 2024, the FASB issued an accounting standard update that provides guidance in determining whether profits interest and similar awards should be accounted for as share-based arrangements within the scope of Topic 718. The amendments are effective for annual and interim periods beginning after December 15, 2024, and shall be applied either retrospectively or prospectively. The Company has adopted the new guidance as of January 1, 2025 with prospective application to any profits interest and similar awards granted or modified on or after the date of adoption. The adoption of the amendments did not have a material impact to the Company’s financial statements. Income Taxes (Topic 740): Improvements to Income Tax Disclosures —In December 2023, the FASB issued an accounting standard update to enhance the transparency and decision usefulness of income tax disclosures. The amendments include new annual disclosure requirements related to the rate reconciliation, information about income taxes paid, and disaggregated information on pre-tax income or loss and income tax expense from continuing operations. The amendments also eliminated certain disclosure requirements. The new guidance is effective for annual periods beginning after December 15, 2024, and shall be applied on a prospective basis. The Company is currently evaluating the new guidance. Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses — In November 2024, the FASB issued an accounting standard update to require additional information about the types of expenses in commonly presented expense captions. The amendments are effective for annual periods beginning after December 15, 2026, and the subsequent interim periods, with early adoption permitted. The amendments shall be applied either prospectively or retrospectively. The Company is currently evaluating the new guidance. 13 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets — In July 2025, the FASB issued an accounting standard update that provides a practical expedient related to the estimation of expected credit losses on accounts receivables, which permits entities to assume that the current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments are effective for annual periods beginning after December 15, 2025 and interim periods within those annual periods, with early adoption permitted. The amendments shall be applied either prospectively or retrospectively. The Company intends to elect the practical expedient with a prospective application as of January 1, 2026. The Company does not expect the election of the practical expedient to have a material impact on its financial statements upon adoption. Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software — In September 2025, the FASB issued an accounting standard update to eliminate accounting consideration of software project development stages and enhance the guidance related to when an entity would begin capitalizing software costs. The amendments are effective for annual periods beginning after December 15, 2027, and the interim periods within those annual periods, with early adoption permitted. The amendments can be applied prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the new guidance. 3. REVENUE RECOGNITION The Company disaggregates revenue based on its business segment results and believes that the following information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net Revenue: Financial Advisory (a) $ 427,335 $ 370,917 $ 1,292,000 $ 1,235,732 Asset Management: Management fees and other (b) $ 311,540 $ 288,814 $ 876,929 $ 857,246 Incentive fees (c) 15,489 5,064 30,678 17,595 Total Asset Management $ 327,029 $ 293,878 $ 907,607 $ 874,841 ___________________________________ (a) Financial Advisory is comprised of a wide array of financial advisory services regarding M&A advisory, capital markets advisory, shareholder advisory, sovereign advisory, geopolitical advisory, restructuring and liability management, capital raising and placement, and other strategic advisory work for clients. The benefits of these advisory services are generally transferred to the Company’s clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events. (b) Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of fund interests is a separate performance obligation within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed. 14 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) (c) Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks. In addition to the above, contracts with clients include trade-based commission income, which is recognized at the point in time of execution and presented within other revenue. Such income may be earned by providing trade facilitation, execution, clearance and settlement, custody, and trade administration services to clients. With regard to the disclosure requirement for remaining performance obligations, the Company elected the practical expedients permitted in the guidance to (i) exclude contracts with a duration of one year or less; and (ii) exclude variable consideration, such as transaction completion and transaction announcement fees, that is allocated entirely to unsatisfied performance obligations. Excluded variable consideration typically relates to contracts with a duration of one year or less, and is generally constrained due to uncertainties. At September 30, 2025, the Company had deferred revenue of $ 142,629 included in “other liabilities” on the condensed consolidated statements of financial condition. During the three month and nine month periods ended September 30, 2025, the Company recognized $ 6,511 and $ 23,018 in revenue, respectively, that was included in the deferred revenue balance as of December 31, 2024 of $ 136,536 . 15 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 4. RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES The Company’s receivables represent fee receivables, amounts due from customers and other receivables. Where applicable, receivables are stated net of an estimated allowance for credit losses determined in accordance with the current expected credit losses (“CECL”) model. Of the Company’s fee receivables at September 30, 2025 and December 31, 2024, $ 129,437 and $ 130,682 , respectively, represented financing receivables for our Private Capital Advisory fees. At September 30, 2025 and December 31, 2024, customers and other receivables included $ 129,685 and $ 82,985 , respectively, of customer loans provided by LFB to high net worth individuals and families , 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 as of both September 30, 2025 and December 31, 2024. The aggregate carrying amount of other fees and customers and other receivables was $ 515,560 and $ 539,956 at September 30, 2025 and December 31, 2024, respectively. Activity in the allowance for credit losses for the three month and nine month periods ended September 30, 2025 and 2024 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Beginning Balance $ 26,545 $ 29,686 $ 32,033 $ 28,503 Provision for credit losses, net of reversals 1,602 ( 1,472 ) ( 1,329 ) 3,451 Charge-offs ( 231 ) ( 1,375 ) ( 3,761 ) ( 4,858 ) Foreign currency translation and other adjustments ( 23 ) 400 950 143 Ending Balance $ 27,893 $ 27,239 $ 27,893 $ 27,239 The provision for credit losses, net of reversals represents the current period provision of expected credit losses and is included in “operating expenses-other” on the condensed consolidated statements of operations. The allowance for credit losses is substantially all related to Financial Advisory fee receivables and other receivables. 16 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 5. INVESTMENTS The Company’s investments consist of the following at September 30, 2025 and December 31, 2024: September 30, 2025 December 31, 2024 Debt $ 1,704 $ – Equity 58,530 58,623 Funds: Alternative investments (a) 50,001 59,230 Debt (a) 116,531 147,173 Equity (a) 330,496 289,610 Private equity 47,818 43,412 Total funds 544,846 539,425 Investments, at fair value 605,080 598,048 Equity method investments 18,631 16,899 Total investments $ 623,711 $ 614,947 ___________________________________ (a) Interests in alternative investment funds, debt funds and equity funds include investments (fair values shown below), including those held by LFI Consolidated Funds (see Note 21), held to satisfy the Company’s obligation upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 7 and 13). September 30, 2025 December 31, 2024 Investments related to LFI and other similar deferred compensation arrangements: Alternative investments $ 21,407 $ 23,865 Debt 97,822 126,407 Equity 162,668 223,729 Total $ 281,897 $ 374,001 Debt securities primarily consist of investments in debt securities held within separately managed accounts in order to seed strategies in our Asset Management business. Equity securities primarily consist of investments in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts in order to seed strategies in our Asset Management business. Alternative investment funds primarily consist of interests in various Lazard-managed hedge funds, funds of funds and mutual funds. Such amounts primarily consist of investments in funds in order to seed strategies in our Asset Management business, and amounts related to LFI discussed above. Debt funds primarily consist of investments in debt securities in order to seed strategies in our Asset Management business and amounts related to LFI discussed above. 17 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Equity funds primarily consist of investments in equity securities in order to seed strategies in our Asset Management business, and amounts related to LFI discussed above. Private equity investments include those owned by Lazard and those consolidated but not owned by Lazard. Private equity investments owned by Lazard are primarily comprised of investments in private equity funds. Such investments primarily include (i) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies and (ii) a seed investment in a fund that invests in sustainable private infrastructure opportunities. Private equity investments consolidated but not owned by Lazard relate to the economic interests that are owned by the management team and other investors in the Edgewater Funds (“Edgewater”). Equity method investments include an interest in a venture capital asset management entity accounted for under the equity method of accounting. The carrying value includes amounts related to intangible assets, which are amortized, and goodwill. During the three month and nine month periods ended September 30, 2025 and 2024, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to equity securities and trading debt securities still held as of the reporting date as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net unrealized investment gains $ 12,663 $ 23,050 $ 51,904 $ 23,803 As of September 30, 2025, the Company has pledged investments with a carrying value of $ 45,226 , primarily as collateral for its derivative contracts (see Note 7). Such pledged assets can be sold or repledged by the secured party. 18 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 6. FAIR VALUE MEASUREMENTS Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities —Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access. Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data. Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial instruments for which there is little, if any, market activity. As a result, valuation inputs may involve significant management judgment or estimation. The fair value of instruments reported as cash and cash equivalents, deposits with banks and short-term investments, and restricted cash, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets. The fair value of debt securities, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. The fair value of equity securities is classified as Level 1 or Level 3 as follows: marketable equity securities are classified as Level 1 and are valued based on the last trade price on the primary exchange for that security as provided by external pricing services; equity interests in private companies are generally classified as Level 3. The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are based on the publicly reported closing price for the fund, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. The fair value of investments in certain private equity funds is classified as Level 3 when the acquisition price is considered the best measure of fair value. The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets. The fair value of the contingent consideration liability is classified as Level 3. The contingent consideration liability is initially recorded at fair value on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. The fair value of the contingent consideration liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods. Any change in the fair value is recognized in “operating expenses-other” in the condensed consolidated statements of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds. The fair value of derivatives classified as Level 2 is based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair value of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 7. 19 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Investments Measured at Net Asset Value (“NAV”) —As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) private equity funds are not redeemable in the near term as a result of redemption restrictions. The following tables present, as of September 30, 2025 and December 31, 2024, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient: September 30, 2025 Level 1 Level 2 Level 3 NAV Total Assets: Deposits with banks and short-term investments (a) $ 29,753 $ – $ – $ – $ 29,753 Restricted cash (a) 100 – – – 100 Investments: Debt 1,300 404 – – 1,704 Equity 57,845 – 685 – 58,530 Funds: Alternative investments 6,825 – – 43,176 50,001 Debt 104,795 11,733 – 3 116,531 Equity 330,132 303 – 61 330,496 Private equity – – 290 47,528 47,818 Derivatives – 523 – – 523 Total $ 530,750 $ 12,963 $ 975 $ 90,768 $ 635,456 Liabilities: Securities sold, not yet purchased $ 4,076 $ – $ – $ – $ 4,076 Contingent consideration liability – – 2,274 – 2,274 Derivatives – 222,587 – – 222,587 Total $ 4,076 $ 222,587 $ 2,274 $ – $ 228,937 20 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) December 31, 2024 Level 1 Level 2 Level 3 NAV Total Assets: Cash and cash equivalents (a) $ 5,982 $ – $ – $ – $ 5,982 Deposits with banks and short-term investments (a) 24,666 – – – 24,666 Investments: Equity 58,034 – 589 – 58,623 Funds: Alternative investments 10,763 – – 48,467 59,230 Debt 129,004 18,166 – 3 147,173 Equity 289,244 316 – 50 289,610 Private equity – – 256 43,156 43,412 Derivatives – 3,787 – – 3,787 Total $ 517,693 $ 22,269 $ 845 $ 91,676 $ 632,483 Liabilities: Securities sold, not yet purchased $ 4,529 $ – $ – $ – $ 4,529 Contingent consideration liability – – 4,495 – 4,495 Derivatives – 274,280 – – 274,280 Total $ 4,529 $ 274,280 $ 4,495 $ – $ 283,304 ___________________________________ (a) Level 1 represents U.S. Treasury securities. The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month and nine month periods ended September 30, 2025 and 2024: Three Months Ended September 30, 2025 Beginning Balance Net Unrealized Gains/Losses Included In Earnings Purchases/ Issuances Sales/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equity $ 697 $ 10 $ – $ – $ ( 22 ) $ 685 Private equity funds 289 – – – 1 290 Total Level 3 assets $ 986 $ 10 $ – $ – $ ( 21 ) $ 975 Liabilities: Contingent consideration liability $ 2,248 $ 26 $ – $ – $ – $ 2,274 Total Level 3 liabilities $ 2,248 $ 26 $ – $ – $ – $ 2,274 21 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Nine Months Ended September 30, 2025 Beginning Balance Net Unrealized Gains/Losses Included In Earnings Purchases/ Issuances Sales/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equity $ 589 $ 57 $ – $ – $ 39 $ 685 Private equity funds 256 – – – 34 290 Total Level 3 assets $ 845 $ 57 $ – $ – $ 73 $ 975 Liabilities: Contingent consideration liability (a) $ 4,495 $ 79 $ – $ ( 2,300 ) $ – $ 2,274 Total Level 3 liabilities $ 4,495 $ 79 $ – $ ( 2,300 ) $ – $ 2,274 Three Months Ended September 30, 2024 Beginning Balance Net Unrealized Gains/Losses Included In Earnings Purchases/ Issuances Sales/ Settlements/ Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equity $ 611 $ 9 $ – $ – $ 30 $ 650 Private equity funds 264 – – – 12 276 Total Level 3 assets $ 875 $ 9 $ – $ – $ 42 $ 926 Liabilities: Contingent consideration liability $ 4,389 $ 53 $ – $ – $ – $ 4,442 Total Level 3 liabilities $ 4,389 $ 53 $ – $ – $ – $ 4,442 Nine Months Ended September 30, 2024 Beginning Balance Net Unrealized Gains/Losses Included In Earnings Purchases/ Issuances Sales/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 493 $ 46 $ 109 $ – $ 2 $ 650 Private equity funds 273 – – – 3 276 Total Level 3 assets $ 766 $ 46 $ 109 $ – $ 5 $ 926 Liabilities: Contingent consideration liability (a) $ 6,583 $ 159 $ – $ ( 2,300 ) $ – $ 4,442 Total Level 3 liabilities $ 6,583 $ 159 $ – $ ( 2,300 ) $ – $ 4,442 _________________________________ 22 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) (a) For the nine month periods ended September 30, 2025 and 2024, settlements represent aggregate cash and noncash settlement of contingent consideration after the acquisition date. The following tables present, at September 30, 2025 and December 31, 2024, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2025 Investments Redeemable NAV Unfunded Commitments % of NAV Not Redeemable Redemption Frequency Redemption Notice Period Alternative investment funds: Hedge funds $ 43,137 $ – NA (a) < 30 - 60 days Other 39 – NA (b) < 30 - 90 days Debt funds 3 – NA (c) < 30 - 30 days Equity funds 61 – NA (d) < 30 - 30 days Private equity funds: Equity growth 47,528 5,954 (e) 100 % (f) NA NA Total $ 90,768 $ 5,954 ___________________________________ (a) monthly ( 100 %) (b) daily ( 100 %) (c) daily ( 100 %) (d) monthly ( 100 %) (e) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $ 19,894 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. (f) Distributions from each fund will be received as the underlying investments of the funds are liquidated. December 31, 2024 Investments Redeemable NAV Unfunded Commitments % of NAV Not Redeemable Redemption Frequency Redemption Notice Period Alternative investment funds: Hedge funds $ 47,788 $ – NA (a) 30 - 60 days Other 679 – NA (b) < 30 - 90 days Debt funds 3 – NA (c) < 30 days Equity funds 50 – NA (d) < 30 - 30 days Private equity funds: Equity growth 43,156 6,068 (e) 100 % (f) NA NA Total $ 91,676 $ 6,068 ___________________________________ (a) monthly ( 100 %) (b) daily ( 5 %) and monthly ( 95 %) (c) daily ( 100 %) (d) monthly ( 100 %) 23 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) (e) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $ 20,205 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. (f) Distributions from each fund will be received as the underlying investments of the funds are liquidated. 7. DERIVATIVES The tables below present the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 13) on the accompanying condensed consolidated statements of financial condition as of September 30, 2025 and December 31, 2024. Notional amounts provide an indication of the volume of the Company's derivative activity. Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the condensed consolidated statements of financial condition where the Company has a right to set off under an enforceable master netting agreement. In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition. September 30, 2025 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 770 $ 126,660 $ 5,707 $ 381,319 Total return swaps and other 153 436 39,450 177,950 LFI and other similar deferred compensation arrangements – – 185,144 160,786 Total gross derivatives 923 $ 127,096 230,301 $ 720,055 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts ( 247 ) ( 247 ) Total return swaps and other ( 153 ) ( 7,467 ) Net derivatives in "other assets" and "other liabilities" 523 222,587 Collateral not netted on the condensed consolidated statement of financial condition (a) – ( 31,978 ) $ 523 $ 190,609 24 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) December 31, 2024 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 4,248 $ 359,717 $ 1,068 $ 167,115 Total return swaps and other 125 1,031 17,527 116,239 LFI and other similar deferred compensation arrangements – – 270,847 247,848 Total gross derivatives 4,373 $ 360,748 289,442 $ 531,202 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts ( 461 ) ( 460 ) Total return swaps and other ( 125 ) ( 14,702 ) Net derivatives in "other assets" and "other liabilities" 3,787 274,280 Collateral not netted on the condensed consolidated statement of financial condition (a) – ( 1,132 ) $ 3,787 $ 273,148 ___________________________________ (a) Includes cash and/or securities collateral pledged that are subject to master netting arrangements but do not meet the criteria for netting on the condensed consolidated statements of financial condition under U.S. GAAP. For some counterparties, the amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the amount of collateral offset within net derivatives is limited to the net derivative assets and net derivative liabilities balances with that counterparty. Cash and securities collateral were previously reported separately. Prior year information has been recast to reflect the current presentation. Net gains (losses) with respect to derivative instruments (included in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2025 and 2024 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Forward foreign currency exchange rate contracts $ 1,670 $ ( 5,860 ) $ ( 13,339 ) $ ( 2,635 ) LFI and other similar deferred compensation arrangements ( 4,823 ) ( 16,732 ) ( 20,575 ) ( 24,904 ) Total return swaps and other ( 16,990 ) ( 8,143 ) ( 47,977 ) ( 14,086 ) Total $ ( 20,143 ) $ ( 30,735 ) $ ( 81,891 ) $ ( 41,625 ) 25 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 8. PROPERTY, NET At September 30, 2025 and December 31, 2024, property consisted of the following: Estimated Depreciable Life in Years September 30, 2025 December 31, 2024 Buildings 33 $ 12,946 $ 11,455 Leasehold improvements 3-20 238,365 214,744 Furniture and equipment 3-10 170,864 165,727 Computer software 3-5 69,928 67,523 Construction in progress 8,719 33,793 Total 500,822 493,242 Less - Accumulated depreciation and amortization 327,537 332,840 Property, net $ 173,285 $ 160,402 9. GOODWILL Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2025 and 2024 are as follows: Nine Months Ended September 30, 2025 2024 Financial Advisory Asset Management Total Financial Advisory Asset Management Total Balance, January 1 $ 312,305 $ 81,270 $ 393,575 $ 313,628 $ 81,270 $ 394,898 Foreign currency translation adjustments 1,676 – 1,676 ( 323 ) – ( 323 ) Balance, September 30 $ 313,981 $ 81,270 $ 395,251 $ 313,305 $ 81,270 $ 394,575 26 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 10. SENIOR DEBT Senior debt is comprised of the following as of September 30, 2025 and December 31, 2024: Outstanding as of September 30, 2025 December 31, 2024 Initial Principal Amount Maturity Date Annual Interest Rate Effective Interest Rate Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value Lazard Group 2027 Senior Notes (a) 300,000 3/01/27 3.625 % – % $ – $ – $ – $ 300,000 $ 1,213 $ 298,787 Lazard Group 2028 Senior Notes 500,000 9/19/28 4.50 % 4.70 % 500,000 3,018 496,982 500,000 3,783 496,217 Lazard Group 2029 Senior Notes 500,000 3/11/29 4.375 % 4.56 % 500,000 3,184 496,816 500,000 3,875 496,125 Lazard Group 2031 Senior Notes 400,000 3/15/31 6.00 % 6.16 % 400,000 3,584 396,416 400,000 4,077 395,923 Lazard Group 2035 Senior Notes (a) 300,000 8/01/35 5.625 % 5.72 % 300,000 2,933 297,067 – – – Total $ 1,700,000 $ 12,719 $ 1,687,281 $ 1,700,000 $ 12,948 $ 1,687,052 __________________________ (a) During the third quarter of 2025, Lazard Group LLC completed an offering of $ 300,000 aggregate principal amount of 5.625 % senior notes due in 2035. Interest on the 2035 Notes is payable semi-annually on February 1 and August 1 of each year, beginning February 1, 2026. Lazard Group LLC used the net proceeds from the 2035 Notes to repurchase or redeem all of the issued and outstanding 2027 Notes. Lazard, Inc. has provided an unconditional and irrevocable guarantee for the repayment of all the senior notes in the table above. The guarantee covers both the principal and interest payments on the senior debt and will remain in effect until all the Lazard Group senior notes are repaid. As of September 30, 2025, the maximum future payments that Lazard, Inc. could be required to make under this guarantee is the same as the principal value in the table above plus accrued interest. The Company’s senior debt is unsecured and is carried at its principal amount outstanding, net of unamortized debt costs. At September 30, 2025 and December 31, 2024, the fair value of such senior debt was approximately $ 1,732,000 and $ 1,682,000 , respectively. The fair value of the Company’s senior debt is based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value. Lazard Group LLC has a Second Amended and Restated Credit Agreement with a group of lenders for a five-year , $ 200,000 senior revolving credit facility expiring in June 2028 (the “Second Amended and Restated Credit Agreement”). Any borrowings under the Second Amended and Restated Credit Agreement generally will bear interest at adjusted term SOFR plus an applicable margin for specific interest periods determined based on Lazard Group LLC’s highest credit rating from an internationally recognized credit agency. The Second Amended and Restated Credit Agreement contains certain covenants, events of default and other customary provisions, including customary benchmark-replacement mechanics. In conjunction with the Lazard, Inc. guarantee of the Lazard Group LLC’s then outstanding senior notes, on December 23, 2024, the Company and Lazard Group LLC entered into the First Amendment to Second Amended and Restated Credit Agreement pursuant to which Lazard, Inc. provided an unconditional and irrevocable guarantee for the obligations of Lazard Group LLC under the Second Amended and Restated Credit Agreement. As of September 30, 2025, the Company had approximately $ 210,000 in unused lines of credit available to it, including the credit facility provided under the Second Amended and Restated Credit Agreement. 27 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The Second Amended and Restated Credit Agreement, the indenture and the supplemental indentures relating to Lazard Group’s senior notes contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. 11. COMMITMENTS AND CONTINGENCIES Leases In July 2024, the Company signed a lease agreement for additional office facilities, with lease commencement anticipated in 2027. The lease term is 10 years and has undiscounted future lease payments of approximately $ 103,000 . Other Commitments See Notes 6 and 14 for information regarding commitments relating to investment capital funding commitments and obligations to fund our pension plans, respectively. The fulfillment of the commitments described herein should not have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. Legal —The Company is involved from time to time in judicial, governmental, regulatory and arbitration proceedings and inquiries concerning matters arising in connection with the conduct of our businesses, including contractual and employment matters. The Company reviews such matters on a case-by-case basis and establishes any required accrual if a loss is probable and the amount of such loss can be reasonably estimated. The Company may experience significant variation in its revenue and earnings on a quarterly basis. Accordingly, the results of any pending matter or matters could be significant when compared to the Company’s earnings in any particular quarter. The Company believes, however, based on currently available information, that the results of any pending matters, in the aggregate, will not have a material effect on its business or financial condition. 12. STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS Share Repurchase Program — The Board of Directors of Lazard authorized the repurchase of Lazard, Inc. common stock (“common stock”) as set forth in the table below as of September 30, 2025: Date Repurchase Authorization Expiration July 2024 $ 200,000 December 31, 2026 The Company’s purchases under the share repurchase program over time are used to offset dilution from the shares that have been or will be issued under Lazard’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from period to period due to a variety of factors. Purchases with respect to such program are set forth in the table below: Nine Months Ended September 30: Number of Shares Purchased Average Price Per Share 2024 1,123,413 $ 39.10 2025 879,334 $ 46.64 28 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) During the nine month periods ended September 30, 2025 and 2024, certain of our executive officers received common stock in connection with the vesting or settlement of previously-granted deferred equity incentive awards. The vesting or settlement of such equity awards gave rise to a tax payable by the executive officers, and, consistent with our past practice, the Company purchased shares of common stock from certain of our executive officers equal in value to all or a portion of the estimated amount of such tax. In addition, during the nine month periods ended September 30, 2025 and 2024, the Company purchased shares of common stock from certain of our executive officers. The aggregate value of all such purchases during the nine month periods ended September 30, 2025 and 2024 was approximately $ 12,800 and $ 14,300 , respectively. Such shares of common stock are reported at cost, and are either included in “common stock held by subsidiaries” on the accompanying condensed consolidated statements of financial condition or were immediately canceled by the Company. As of September 30, 2025, a total of $ 158,989 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. Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax — The tables below reflect the balances of each component of AOCI at September 30, 2025 and 2024 and activity during the three month and nine month periods then ended: Three Months Ended September 30, 2025 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard AOCI Balance - July 1, 2025 $ ( 90,833 ) $ ( 178,064 ) $ ( 268,897 ) $ 6 $ ( 268,903 ) Activity: Other comprehensive income (loss) before reclassifications, net of tax ( 8,838 ) 2,961 ( 5,877 ) 1 ( 5,878 ) Adjustments for items reclassified to earnings, net of tax – 1,831 1,831 – 1,831 Net other comprehensive income (loss) ( 8,838 ) 4,792 ( 4,046 ) 1 ( 4,047 ) Balance, September 30, 2025 $ ( 99,671 ) $ ( 173,272 ) $ ( 272,943 ) $ 7 $ ( 272,950 ) 29 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Nine Months Ended September 30, 2025 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard AOCI Balance - January 1, 2025 $ ( 160,914 ) $ ( 165,888 ) $ ( 326,802 ) $ ( 60 ) $ ( 326,742 ) Activity: Other comprehensive income (loss) before reclassifications, net of tax 61,243 ( 12,856 ) 48,387 67 48,320 Adjustments for items reclassified to earnings, net of tax – 5,472 5,472 – 5,472 Net other comprehensive income (loss) 61,243 ( 7,384 ) 53,859 67 53,792 Balance, September 30, 2025 $ ( 99,671 ) $ ( 173,272 ) $ ( 272,943 ) $ 7 $ ( 272,950 ) Three Months Ended September 30, 2024 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard AOCI Balance - July 1, 2024 $ ( 144,825 ) $ ( 161,467 ) $ ( 306,292 ) $ 1 $ ( 306,293 ) Activity: Other comprehensive income (loss) before reclassifications 41,627 ( 9,033 ) 32,594 33 32,561 Adjustments for items reclassified to earnings, net of tax – 1,888 1,888 – 1,888 Net other comprehensive income (loss) 41,627 ( 7,145 ) 34,482 33 34,449 Balance, September 30, 2024 $ ( 103,198 ) $ ( 168,612 ) $ ( 271,810 ) $ 34 $ ( 271,844 ) Nine Months Ended September 30, 2024 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard AOCI Balance - January 1, 2024 $ ( 123,991 ) $ ( 165,958 ) $ ( 289,949 ) $ 1 $ ( 289,950 ) Activity: Other comprehensive income (loss) before reclassifications 20,793 ( 7,429 ) 13,364 33 13,331 Adjustments for items reclassified to earnings, net of tax – 4,775 4,775 – 4,775 Net other comprehensive income (loss) 20,793 ( 2,654 ) 18,139 33 18,106 Balance, September 30, 2024 $ ( 103,198 ) $ ( 168,612 ) $ ( 271,810 ) $ 34 $ ( 271,844 ) 30 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and nine month periods ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Employee benefit plans: Amortization relating to employee benefit plans (a) $ 2,385 $ 2,433 $ 7,118 $ 6,230 Less - related income taxes 554 545 1,646 1,455 Total reclassifications, net of tax $ 1,831 $ 1,888 $ 5,472 $ 4,775 __________________________ (a) Included in the computation of net periodic benefit cost (see Note 14). Such amounts are included in “operating expenses–other” on the condensed consolidated statements of operations. Noncontrolling Interests —Noncontrolling interests principally represent (i) interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own and (ii) profits interest participation rights (see Note 13). Redeemable Noncontrolling Interests —Redeemable noncontrolling interests represent consolidated VIE interests held by employees (vested LFI awards), which may be redeemed at any time at the option of the holder for cash, are recorded on the Company’s condensed consolidated statements of financial position at redemption value and classified as temporary equity. Changes in redemption value are recognized immediately as they occur and will adjust the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period (see Note 21). Dividends Declared, October 22, 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 . 13. INCENTIVE PLANS Share-Based Incentive Plan Awards Total shares available for issuance under incentive compensation plans are primarily from the 2018 Plan, which as amended, authorized the issuance of an aggregate of 70,000,000 shares. Such shares may be issued pursuant to the grant or exercise of stock options; stock appreciation rights; restricted stock units, restricted stock awards, and deferred stock units (collectively “RSUs”); performance-based restricted stock units (“PRSUs”); profits interest participation rights (“PIPRs”); and other share-based awards. 31 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Expense The following reflects the expense with respect to share-based incentive plans, which is primarily recorded within “compensation and benefits” expense in the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Share-based incentive awards: RSUs $ 74,546 $ 57,611 $ 226,130 $ 186,150 PRSUs – 318 ( 44 ) 1,037 PIPRs 21,577 17,655 54,162 47,942 Total $ 96,123 $ 75,584 $ 280,248 $ 235,129 Compensation and benefits expense relating to share-based awards with service and/or performance conditions is reversed if the awards are forfeited due to these conditions not being met. Compensation and benefits expense relating to share-based awards with market-based conditions is not reversed if these awards are forfeited based solely on failing to meet such market-based conditions. The Company periodically assesses forfeiture rates, including as a result of any applicable performance conditions. A change in estimated forfeiture rates or performance results in a cumulative adjustment to compensation and benefits expense and also would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described below. The Company’s share-based incentive plans and awards are described below. RSUs and PRSUs RSUs generally require future service as a condition for vesting (unless the recipient is then eligible for retirement under the Company’s retirement policy or is a non-executive member of the Board of Directors) and convert into shares of common stock on a one-for-one basis after the stipulated vesting periods. The grant date fair value of the RSUs, net of an estimated forfeiture rate, is expensed over the requisite service periods (generally, one-third after two years and the remaining two-thirds after the third year), and is adjusted for actual forfeitures over such period. RSUs generally include a dividend participation right during the applicable vesting period, which is payable in additional units. During the nine month period ended September 30, 2025, dividend participation rights required the issuance of an aggregate 550,976 units of RSUs and the associated aggregate charge to “retained earnings” (with a corresponding credit to “additional paid-in-capital”) was $ 25,913 . In connection with RSUs and PRSUs that settled during the nine month period ended September 30, 2025, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 2,174,633 and 52,000 shares, respectively, of common stock during such nine month period. Accordingly, 3,176,897 and 58,638 shares, respectively, of common stock held by the Company were delivered during the nine month period ended September 30, 2025. PRSUs are a type of RSU that is incrementally subject to performance-based and service-based vesting conditions and a market-based condition. The number of shares of common stock that a recipient receives upon vesting of a PRSU is calculated by reference to certain performance-based and market-based metrics that relate to Lazard, Inc.’s performance over a three-year period. The target number of shares of common stock subject to each PRSU is one ; however, based on the achievement of both the performance-based and market-based conditions, the number of shares of common stock that may be received will range from zero to 2.4 times the target number. PRSUs vest on a single date approximately three years following the date of the grant, provided the applicable service and performance conditions are satisfied. PRSUs include dividend participation rights that are subject to the same vesting restrictions (including performance conditions) as the 32 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) underlying PRSUs to which they relate and are settled in cash at the same rate that dividends are paid on common stock. Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. The following is a summary of activity relating to RSUs and PRSUs during the nine month period ended September 30, 2025: RSUs PRSUs Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance, January 1, 2025 16,212,004 $ 37.07 62,296 $ 35.44 Granted (including 550,976 RSUs relating to dividend participation) 6,933,955 $ 53.01 – $ – Forfeited ( 651,750 ) $ 43.37 – $ – PRSUs performance units earned (a) 48,342 $ 21.92 Settled ( 5,426,230 ) $ 35.69 ( 110,638 ) $ 29.53 Balance, September 30, 2025 17,067,979 $ 43.74 – _________________________________ (a) Represents PRSUs earned during the nine month period ended September 30, 2025 under the performance conditions of previously-granted PRSU awards in excess of the target payout levels of such awards. The weighted-average grant date fair value of RSUs granted in the nine month period ended September 30, 2024 was $ 38.75 . As of September 30, 2025, the total estimated unrecognized compensation expense related to RSUs was $ 293,039 . The Company expects to expense such amounts over a weighted-average period of approximately 1.8 years subsequent to September 30, 2025. PIPRs PIPRs are equity incentive awards that, subject to certain vesting and other conditions described below, may be exchanged for shares of common stock pursuant to the 2018 Plan. They are a class of membership interests in Lazard Group that are intended to qualify as “profits interests” for U.S. federal income tax purposes and are recorded as noncontrolling interests within stockholders’ equity in the Company’s condensed consolidated statements of financial condition until they are exchanged into common stock, at which time there is a reclassification to additional paid-in-capital. PIPRs, with the exception of Stock Price PIPRs (“SP-PIPRs”), as explained below, generally provide for vesting approximately three years following the grant date, so long as applicable vesting and other conditions have been satisfied. PIPRs are subject to continued employment and other conditions and restrictions and are forfeited if those conditions and restrictions are not fulfilled. A recipient generally realizes value from PIPRs only to the extent that applicable vesting and other conditions are satisfied, and an amount of economic appreciation in the assets of Lazard Group occurs as necessary to satisfy certain partnership tax rules (referred to as the “Minimum Value Condition”), otherwise the PIPRs will be forfeited. Upon satisfaction of such conditions, PIPRs that are in parity with the value of common stock will be exchanged on a one-for-one basis for shares of common stock. If forfeited based solely on failing to meet the Minimum Value Condition, or, if applicable, common stock price milestones as described below, the associated compensation expense would not be reversed. All PIPR awards are subject to service-based vesting conditions. In addition to PIPR awards with only service based vesting conditions (“Ordinary PIPRs”) granted to certain of our executive officers and a limited number of 33 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) employees, the Company has granted the following types of PIPRs to certain of our executive officers, that are subject to additional vesting and market-based conditions: • Performance PIPRs (“P-PIPRs”), which are subject to service-based and performance-based vesting conditions and incremental market-based conditions. • SP-PIPRs, which are subject to service-based vesting conditions and common stock price milestones and are eligible to vest in three tranches. The number of shares of common stock that a recipient will receive upon the exchange of a P-PIPR award is calculated by reference to applicable performance-based vesting conditions and, beginning with P-PIPRs granted in 2021, incremental market-based conditions and only result in value to the recipient to the extent the vesting and other conditions are satisfied. The target number of shares of common stock subject to each P-PIPR is one . Based on the achievement of performance conditions, as determined and approved by the Compensation Committee, the number of shares of common stock that may be received in connection with the P-PIPR awards granted prior to February 2021 will range from zero to two times the target number. For the P-PIPR awards granted beginning in February 2021, subject to both performance-based and incremental market-based conditions, the number of shares that may be received will range from zero to 2.4 times the target number. Unless applicable vesting and other conditions are satisfied during the three-year performance period, and the Minimum Value Condition is satisfied within five years following the grant date, all P-PIPRs will be forfeited. SP-PIPRs are eligible to vest in three tranches (each, a “Tranche”) based on the achievement of service conditions and Tranche-specific common stock price milestones measured as of a specified anniversary of the date of grant, as described below. Their aggregate fair value at the grant date, which based on the estimated probability of achieving the common stock price milestones was approximately $ 33,900 , is expensed over the requisite service periods. Each Tranche, as described below, is subject to the executive’s continued employment through the applicable anniversary of the date of grant, or earlier in certain circumstances, and requires that the applicable common stock price milestone is sustained for any 30 consecutive day period prior to the anniversary of the date of grant of the applicable Tranche (the “Expiration Date”). SP-PIPRs vest: • 20 % if, during the three years following the date of grant, the common stock price has appreciated 25 % above the average trailing 30 consecutive day stock price preceding the date of grant (the “Grant Date Stock Price”); • 40 % if, during the five years following the date of grant, the common stock price has appreciated 50 % above the Grant Date Stock Price; • 40 % if, during the seven years following the date of grant, the common stock price has appreciated 100 % above the Grant Date Stock Price. If the service conditions and common stock price milestones, as described above, are not achieved as of the Expiration Date, all SP-PIPRs in such Tranche will be forfeited. 34 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The following is a summary of activity relating to all PIPRs during the nine month period ended September 30, 2025: Ordinary PIPRs (a) P-PIPRs SP-PIPRs (c) Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance, January 1, 2025 3,331,563 $ 35.77 963,660 $ 35.44 2,250,000 $ 15.06 Granted 1,444,345 $ 44.93 – $ – – $ – Forfeited ( 212,968 ) $ 36.41 – $ – – $ – Performance units earned (b) 747,800 $ 21.92 Settled ( 478,646 ) $ 32.95 ( 1,711,460 ) $ 29.53 – $ – Balance, September 30, 2025 4,084,294 $ 39.31 – 2,250,000 $ 16.12 __________________________ (a) Includes PIPR awards with only service-based vesting conditions. (b) Represents P-PIPRs earned during the nine month period ended September 30, 2025 under the performance conditions of previously-granted P-PIPR awards in excess of the target payout levels of such awards. (c) The change in the weighted average grant date fair value of SP-PIPRs as of September 30, 2025 reflects a modification of certain awards. Fair values shown above represent the weighted average as of grant date. The weighted-average grant date fair value of ordinary PIPRs granted in the nine month period ended September 30, 2024 was $ 38.26 . Compensation expense recognized for ordinary PIPRs and P-PIPRs is determined by multiplying the number of shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. Compensation expense recognized for SP-PIPRs is determined by multiplying the number of shares of common stock underlying such awards by the grant date fair value. As of September 30, 2025, the total estimated unrecognized compensation expense of all profits interest participation rights was $ 58,173 and the Company expects to expense such amount over a weighted-average period of approximately 1.8 years subsequent to September 30, 2025. LFI and Other Similar Deferred Compensation Arrangements In connection with LFI and other similar deferred compensation arrangements, granted to eligible employees, which generally require future service as a condition for vesting, the Company records a prepaid compensation asset and a corresponding compensation liability on the grant date based upon the fair value of the award. The prepaid asset is amortized on a straight-line basis over the applicable requisite service periods (which are generally similar to the comparable periods for RSUs) and is charged to “compensation and benefits” expense within the Company’s condensed consolidated statements of operations. LFI and similar deferred compensation arrangements that do not require future service are expensed immediately. The related compensation liability is accounted for at fair value as a derivative liability, which contemplates the impact of estimated forfeitures, and is adjusted for changes in fair value primarily related to changes in value of the underlying investments. 35 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the nine month period ended September 30, 2025: Prepaid Compensation Asset Compensation Liability Balance, January 1, 2025 $ 52,055 $ 270,847 Granted 40,478 40,478 Settled – ( 148,727 ) Amortization and the impact of forfeitures ( 53,441 ) ( 2,247 ) Change in fair value of underlying investments – 20,575 Other ( 40 ) 4,218 Balance, September 30, 2025 $ 39,052 $ 185,144 The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 1.5 years subsequent to September 30, 2025. The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Amortization and the impact of forfeitures $ 15,797 $ 22,997 $ 51,194 $ 81,102 Change in the fair value of underlying investments 4,823 16,732 20,575 24,904 Total $ 20,620 $ 39,729 $ 71,769 $ 106,006 Cash Retention Awards During the year ended December 31, 2024, the Company granted and paid cash retention awards that are subject to repayment in full in connection with a termination of employment for cause or resignation without good reason on or prior to the three-year service period. In connection with these awards, the Company recorded a prepaid compensation asset on the grant date based upon the amount paid. The prepaid compensation asset is amortized over the requisite service period beginning on the grant date and is charged to “compensation and benefits” expense in the condensed consolidated statements of operations. Amortization expense for the three month and nine month periods ended September 30, 2025 was $ 4,360 and $ 12,132 , respectively. The remaining prepaid compensation asset was $ 22,843 as of September 30, 2025. 14. EMPLOYEE BENEFIT PLANS The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”). The Company also offers defined contribution plans to its employees. The pension plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense for the service cost component, and “operating expenses-other” for the other components of benefit costs on the condensed consolidated statements of operations. 36 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Employer Contributions to Pension Plans —The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans. The following table summarizes the components of net periodic benefit cost related to the Company’s pension plans for the three month and nine month periods ended September 30, 2025 and 2024: Pension Plans Three Months Ended September 30, 2025 2024 Components of Net Periodic Benefit Cost: Service cost $ 193 $ 170 Interest cost 5,791 5,345 Expected return on plan assets ( 6,408 ) ( 6,721 ) Amortization of: Prior service cost 315 138 Net actuarial loss 2,070 2,295 Net periodic benefit cost $ 1,961 $ 1,227 Pension Plans Nine Months Ended September 30, 2025 2024 Components of Net Periodic Benefit Cost: Service cost $ 560 $ 498 Interest cost 16,924 15,774 Expected return on plan assets ( 18,757 ) ( 19,797 ) Amortization of: Prior service cost 931 402 Net actuarial loss 6,187 5,828 Net periodic benefit cost $ 5,845 $ 2,705 37 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 15. COST-SAVING INITIATIVES The Company conducted firm-wide cost-saving initiatives over the course of 2023, which were completed during the first quarter of 2024. Expenses and losses associated with the cost-saving initiatives for the nine month period ended September 30, 2024 consisted of the following: Nine Months Ended September 30, 2024 Financial Advisory Asset Management Corporate Total Severance and other employee termination expenses (included in "compensation and benefits" expense) $ 32,773 $ 11,545 $ 2,292 $ 46,610 Other 708 14 1,397 2,119 Total $ 33,481 $ 11,559 $ 3,689 $ 48,729 Activity related to the obligations pursuant to the cost-saving initiatives during the nine month period ended September 30, 2025 was as follows: Accrued Compensation and Benefits Balance, January 1, 2025 $ 6,268 Less: Foreign currency translation and other adjustments ( 16 ) Payments and settlements 5,351 Balance, September 30, 2025 $ 933 16. INCOME TAXES Lazard, Inc. is subject to U.S. federal income taxes on all its income and, through its subsidiaries, is also subject to state and local taxes on its income apportioned to various state and local jurisdictions. Lazard Group LLC operates principally through subsidiary corporations including those domiciled outside the U.S. that are subject to local income taxes in foreign jurisdictions. In addition, Lazard Group LLC is subject to Unincorporated Business Tax attributable to its operations apportioned to New York City. The Company recorded income tax provisions of $ 21,430 and $ 45,840 for the three month and nine month periods ended September 30, 2025, respectively, and $ 45,052 and $ 70,976 for the three month and nine month periods ended September 30, 2024, respectively, representing effective tax rates of 22.6 %, 18.9 %, 28.0 % and 25.4 %, respectively. The difference between the U.S. federal statutory rate of 21.0 % and the effective tax rates reflected above principally relates to (i) the tax impact of differences in the value of share based incentive compensation that vested principally in the first quarter, changes in uncertain tax positions and other discrete items, (ii) taxes payable to foreign jurisdictions that are not offset against U.S. income taxes, (iii) change in the U.S. federal valuation allowance affecting the provision for income taxes and (iv) U.S. state and local taxes, which are incremental to the U.S. federal statutory tax rate. Cash paid for income taxes, net of refunds for the nine month period ended September 30, 2025 was $ 99,262 . 38 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 17. NET INCOME PER SHARE OF COMMON STOCK The Company is required to utilize the “two-class” method of computing basic and diluted net income per share because the Company issued certain PIPRs, including certain P-PIPRs, which are treated as participating securities. The Company’s basic and diluted net income per share calculations using the “two-class” method for the three month and nine month periods ended September 30, 2025 and 2024 are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income attributable to Lazard $ 71,247 $ 107,938 $ 186,968 $ 193,602 Adjustment for earnings attributable to participating securities ( 1,555 ) ( 2,579 ) ( 4,269 ) ( 4,732 ) Net income attributable to Lazard - basic 69,692 105,359 182,699 188,870 Adjustment for earnings attributable to participating securities – 463 – 864 Net income attributable to Lazard - diluted $ 69,692 $ 105,822 $ 182,699 $ 189,734 Weighted average number of shares of common stock outstanding 94,527,248 90,276,294 93,360,222 89,665,458 Weighted average number of shares of common stock issuable on a non-contingent basis 3,585,145 3,351,182 3,607,157 2,925,977 Weighted average number of shares of common stock outstanding - basic 98,112,393 93,627,476 96,967,379 92,591,435 Weighted average number of incremental shares of common stock issuable from share-based incentive compensation (a) 9,889,369 9,847,758 8,946,671 8,560,189 Weighted average number of shares of common stock outstanding - diluted 108,001,762 103,475,234 105,914,050 101,151,624 Net income attributable to Lazard per share of common stock: Basic $ 0.71 $ 1.13 $ 1.88 $ 2.04 Diluted $ 0.65 $ 1.02 $ 1.72 $ 1.88 __________________________________ (a) The aggregate weighted average number of incremental shares of common stock issuable from PIPRs for the three month and nine month periods ended September 30, 2025 of 1,572,289 and 1,985,705 , respectively, and for the three month and nine month periods ended September 30, 2024 of 1,229,021 and 1,541,854 , respectively, that could be potentially dilutive in future periods, have been excluded from the computation of diluted net income per share as the effect would be antidilutive in the respective periods. 18. RELATED PARTIES Sponsored Funds The Company serves as an investment advisor for certain affiliated investment companies and fund entities and receives management fees and, for the alternative investment funds, performance-based incentive fees for providing such services. Asset management fees relating to such services were $ 171,114 and $ 456,539 for the three month and nine month periods ended September 30, 2025, respectively, and $ 140,025 and $ 407,875 for the three month and nine month periods ended September 30, 2024, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $ 62,257 and $ 68,577 remained as receivables at September 30, 2025 and 39 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) December 31, 2024, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition. Tax Receivable Agreement The Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “TRA”), between Lazard and LTBP Trust, a Delaware statutory trust (the “Trust”), provides for the payment by our subsidiaries to the Trust of (i) approximately 45 % of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of the increases in the tax basis of certain assets and of certain other tax benefits related to the TRA, and (ii) an amount that we currently expect will equal 85 % of the cash tax savings that may arise from tax basis increases attributable to payments under the TRA. Our subsidiaries expect to benefit from the balance of cash savings, if any, in income tax that our subsidiaries realize from such tax basis increases. Any amount paid by our subsidiaries to the Trust will generally be distributed pro rata to the owners of the Trust, who include certain of our executive officers. For purposes of the TRA, cash savings in income and franchise tax will be computed by comparing our subsidiaries’ actual income and franchise tax liability to the amount of such taxes that our subsidiaries would have been required to pay had there been no increase in the tax basis of certain assets of Lazard Group and had our subsidiaries not entered into the TRA. The term of the TRA will continue until approximately 2033 or, if earlier, until all relevant tax benefits have been utilized or expired. The amount of the TRA liability is an undiscounted amount based upon current tax laws, the current structure of the Company and various assumptions regarding potential future operating profitability. The assumptions reflected in the estimate involve significant judgment, and as such, the actual amount and timing of payments under the TRA could differ materially from our estimates. Any changes in the amount of the estimated liability would be recorded as a non-compensation expense in the condensed consolidated statements of operations. Adjustments, if necessary, to the related deferred tax assets would be recorded through the “provision for income taxes”. The periodic revaluation of the TRA liability and the assumptions reflected in the estimate had the effect of reducing the estimated liability under the TRA. As a result, the Company recorded a “benefit pursuant to tax receivable agreement” of $ 20,146 on the condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2025. The cumulative liability relating to our obligations under the TRA as of September 30, 2025 and December 31, 2024 was $ 55,680 and $ 75,899 , respectively, and is recorded in “tax receivable agreement obligation” on the condensed consolidated statements of financial condition. Other See Note 12 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers. 19. REGULATORY AUTHORITIES LFNY is a U.S. registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. Under the basic method permitted by this rule, the minimum required net capital, as defined, is a specified fixed percentage (6 2/3%) of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $5, whichever is greater. In addition, the ratio of aggregate indebtedness (as defined) to net capital may not exceed 15:1. At September 30, 2025, LFNY’s regulatory net capital was $ 103,208 , which exceeded the minimum requirement by $ 96,881 . LFNY’s aggregate indebtedness to net capital ratio was 0.92 :1 as of September 30, 2025. Certain U.K. subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (collectively, the “U.K. Subsidiaries”) are regulated by the Financial Conduct Authority. At 40 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) September 30, 2025, the aggregate regulatory net capital of the U.K. Subsidiaries was $ 113,537 , which exceeded the minimum requirement by $ 38,431 . CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) for its banking activities conducted through its subsidiary, LFB. LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by LFG (asset management) and other clients, and asset-liability management. The investment services activities exercised through LFB and other subsidiaries of CFLF, primarily LFG, also are subject to regulation and supervision by the Autorité des Marchés Financiers. At June 30, 2025, the consolidated regulatory net capital of CFLF was $ 165,355 , which exceeded the minimum requirement set for regulatory capital levels by $ 64,940 . In addition, pursuant to the consolidated supervision rules in the European Union, LFB, in particular, as a French credit institution, is required to be supervised by a regulatory body, either in the U.S. or in the European Union. LFB and certain other non-Financial Advisory subsidiaries of the Company in the European Union (referred to herein, on a combined basis, as the “combined European regulated group”) is subject to consolidated supervision based on an agreement with the ACPR and under such rules is required to comply with minimum requirements for regulatory net capital. At June 30, 2025, the regulatory net capital of the combined European regulated group was $ 188,305 , which exceeded the minimum requirement set for regulatory capital levels by $ 66,407 . Additionally, the combined European regulated group, together with our Financial Advisory entities in the European Union, is required to perform an annual risk assessment and provide certain other information on a periodic basis. Certain other U.S. and non-U.S. subsidiaries are subject to various capital adequacy requirements promulgated by various regulatory and exchange authorities in the countries in which they operate. At September 30, 2025, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $ 101,014 , which exceeded the minimum required capital by $ 74,509 . At September 30, 2025, each of these subsidiaries individually was in compliance with its regulatory capital requirements. 20. SEGMENT INFORMATION The Company’s reportable segments offer different products and services and are managed separately, as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed by the Chief Operating Decision Maker (the “CODM”) to determine the allocation of resources and to assess its performance. The Company’s reportable segments are Financial Advisory, Asset Management, and Corporate, which are described in Note 1. The Company’s CODM is the Company’s Chief Executive Officer. The CODM assesses the segments’ performance by each segment’s adjusted operating income (loss) attributable to each of the segments. The Company previously disclosed each segment’s U.S. GAAP operating income (loss) as the segment’s measure of profit or loss. Comparable prior year information has been recast to reflect the updated measure. Adjusted operating income (loss) is also used by the CODM to allocate compensation and non-compensation related resources to each segment. The table below provides selected financial information about the Company’s segments, including adjusted compensation and benefits expense and adjusted non-compensation expense (both of which are significant expense categories on which the CODM is regularly provided information), other segment items, and adjusted operating income (loss). Adjusted compensation and benefits expense and adjusted non-compensation expense include costs directly incurred by each segment, with certain adjustments. Adjusted non-compensation expense includes expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services. Other segment items include certain adjustments to calculate adjusted operating income (loss), including: • Noncontrolling interests; 41 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) • Certain distribution, introducer and management fees paid to third parties and reimbursable deal costs; • Provision for credit losses; • Changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements; • Interest expense, excluding interest expense incurred by LFB; • Losses associated with the closing of certain offices as part of the cost-saving initiatives, representing the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss; and • The gain on sale of an owned office building. Inter-segment revenues are not material for all periods presented. The CODM does not regularly receive asset information by segment and does not use segment asset information to assess performance or allocate resources. Three Months Ended September 30, 2025 Financial Advisory Asset Management Corporate Total Net Revenue (Loss) - U.S. GAAP Basis $ 427,335 $ 327,029 $ ( 6,286 ) $ 748,078 Adjusted Compensation and Benefits Expense 273,214 155,920 45,513 474,647 Adjusted Non-compensation Expense 52,098 64,513 32,054 148,665 Other Segment Items ( 5,056 ) ( 32,840 ) 14,471 ( 23,425 ) Adjusted Operating Income (Loss) $ 96,967 $ 73,756 $ ( 69,382 ) $ 101,341 Other Segment Disclosures: Interest income (included in net revenue) $ 618 $ 2,161 $ 4,881 $ 7,660 Depreciation and amortization of property (included in adjusted non-compensation expense) $ 1,805 $ 1,564 $ 5,096 $ 8,465 Nine Months Ended September 30, 2025 Financial Advisory Asset Management Corporate Total Net Revenue (Loss) - U.S. GAAP Basis $ 1,292,000 $ 907,607 $ ( 7,481 ) $ 2,192,126 Adjusted Compensation and Benefits Expense 830,218 438,402 131,576 1,400,196 Adjusted Non-compensation Expense 157,085 187,321 109,512 453,918 Other Segment Items ( 8,819 ) ( 80,433 ) 34,830 ( 54,422 ) Adjusted Operating Income (Loss) $ 295,878 $ 201,451 $ ( 213,739 ) $ 283,590 Other Segment Disclosures: Interest income (included in net revenue) $ 3,718 $ 6,744 $ 18,067 $ 28,529 Depreciation and amortization of property (included in adjusted non-compensation expense) $ 5,980 $ 4,352 $ 15,177 $ 25,509 42 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Three Months Ended September 30, 2024 Financial Advisory Asset Management Corporate Total Net Revenue - U.S. GAAP Basis $ 370,917 $ 293,878 $ 120,071 $ 784,866 Adjusted Compensation and Benefits Expense 238,360 145,695 42,248 426,303 Adjusted Non-compensation Expense 49,333 58,058 30,848 138,239 Other Segment Items ( 2,110 ) ( 22,368 ) ( 114,474 ) ( 138,952 ) Adjusted Operating Income (Loss) $ 81,114 $ 67,757 $ ( 67,499 ) $ 81,372 Other Segment Disclosures: Interest income (included in net revenue) $ 1,167 $ 3,803 $ 10,035 $ 15,005 Depreciation and amortization of property (included in adjusted non-compensation expense) $ 2,007 $ 1,410 $ 5,536 $ 8,953 Nine Months Ended September 30, 2024 Financial Advisory Asset Management Corporate Total Net Revenue - U.S. GAAP Basis $ 1,235,732 $ 874,841 $ 124,395 $ 2,234,968 Adjusted Compensation and Benefits Expense 815,764 430,711 124,425 1,370,900 Adjusted Non-compensation Expense 148,310 169,320 103,514 421,144 Other Segment Items ( 12,355 ) ( 62,178 ) ( 83,314 ) ( 157,847 ) Adjusted Operating Income (Loss) $ 259,303 $ 212,632 $ ( 186,858 ) $ 285,077 Other Segment Disclosures: Interest income (included in net revenue) $ 3,443 $ 11,323 $ 24,564 $ 39,330 Depreciation and amortization of property (included in adjusted non-compensation expense) $ 6,422 $ 4,091 $ 16,733 $ 27,246 43 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The table below provides a reconciliation of the Company's consolidated adjusted operating income to the Company’s consolidated U.S. GAAP operating income. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Adjusted Operating Income $ 101,341 $ 81,372 $ 283,590 $ 285,077 Adjustments: Operating income related to noncontrolling interests and similar arrangements (a) 2,252 8,192 9,835 14,803 Interest expense (b) ( 22,634 ) ( 22,474 ) ( 64,698 ) ( 65,724 ) Amortization and other acquisition-related costs ( 27 ) ( 53 ) ( 79 ) ( 189 ) Expenses associated with senior management transition (c) ( 6,148 ) – ( 6,148 ) – Losses associated with cost-saving initiatives (d) – – – ( 587 ) Expenses associated with cost-saving initiatives – – – ( 48,142 ) Gain on sale of property (e) – 114,271 – 114,271 Expenses associated with sale of property (f) – ( 20,121 ) – ( 20,121 ) Benefit pursuant to tax receivable obligation ("TRA") (g) 20,146 – 20,146 – Operating Income - U.S. GAAP Basis $ 94,930 $ 161,187 $ 242,646 $ 279,388 _____________________ (a) Revenue and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts. (b) 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. (c) Represents expenses associated with the upcoming departure of an executive officer. (d) Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the nine month period ended September 30, 2024. (e) Represents gain on the sale of an owned office building. (f) Represents estimated statutory profit sharing expenses associated with the sale of an owned office building. (g) Represents the effect of the periodic valuation of the TRA liability. 44 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 21. CONSOLIDATED VIEs LFI Consolidated Funds The Company’s consolidated VIEs as of September 30, 2025 and December 31, 2024 include certain funds (“LFI Consolidated Funds”) that were established for the benefit of employees participating in the Company’s existing LFI deferred compensation arrangement. Lazard invests in these funds and is the investment manager and is therefore deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds. The assets of LFI Consolidated Funds, except as it relates to $ 33,350 and $ 68,452 of LFI owned by Lazard Group as of September 30, 2025 and December 31, 2024, respectively, can only be used to settle the obligations of LFI Consolidated Funds. The Company’s consolidated VIE assets and liabilities for LFI Consolidated Funds as reflected in the condensed consolidated statements of financial condition consist of the following at September 30, 2025 and December 31, 2024. September 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 2,370 $ 2,456 Customers and other receivables 702 97 Investments 108,897 144,878 Other assets 587 1,016 Total assets $ 112,556 $ 148,447 LIABILITIES Deposits and other customer payables $ 285 $ 72 Other liabilities 403 295 Total liabilities $ 688 $ 367 45