What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-07-28 compared with 2026-05-04 · 220 added, 117 removed, 730 unchanged (32% of the section changed)

1 unchanged sentence

The following discussion should be read in conjunction with Lazard’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (the “Form 10-Q”), as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”).

All references to “2026,” “2025,” “first quarter” or “the period” refer to, as the context requires, the three month periods ended March 31, 2026 and 2025.

All references to “2026,” “2025,” “second quarter,” “first half” or “the period” refer to, as the context requires, the three month and six month periods ended June 30, 2026 and 2025.

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

30 unchanged sentences

• competitive position;

• future acquisitions or other strategic transactions, the proposed acquisition of Campbell Lutyens Holdings Limited (“Campbell Lutyens”) (including the consideration to be paid, the expected timing of consummation and the anticipated benefits to the transaction);

• future acquisitions or other strategic transactions, the pending acquisition of Campbell Lutyens Holdings Limited (“Campbell Lutyens”) (including the consideration to be paid, the expected timing of consummation and the anticipated benefits to the transaction);

• potential growth opportunities available to our businesses;

58 unchanged sentences

We operate in a competitive, global environment.

Ongoing geopolitical uncertainty, developments in international trade policies and practices, along with shifting domestic governmental priorities, have increased uncertainty relative to prior years.

Geopolitical uncertainty, developments in international trade policies and practices, along with shifting domestic governmental priorities, have increased uncertainty relative to prior years.

We believe our broad set of capabilities, diversified business model, and the competitive advantage provided by Lazard’s contextual alpha—our ability to incorporate geopolitical, regulatory, and macroeconomic insight into our advice—position us well to meet evolving client needs across varying economic environments.

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

Incr / (Decr) 2026 2025 %

Incr / (Decr)

($ in billions)

16 unchanged sentences

____________________________________

Dealogic as of April 2, 2026.

Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first quarter of 2026 as compared to the first quarter of 2025.

The number of defaulting issuers was 27 in the first quarter of 2026, according to Moody’s Investors Service, Inc., as compared to 30 in the first quarter of 2025.

Dealogic as of July 2, 2026.

Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first half of 2026 as compared to the first half of 2025.

The number of defaulting issuers was 64 in the first half of 2026, according to Moody’s Investors Service, Inc., as compared to 68 in the first half of 2025.

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

2 unchanged sentences

Asset Management

The percentage change in major equity market indices at March 31, 2026, as compared to such indices at December 31, 2025 and at March 31, 2025 is shown in the table below:

Percentage Changes March 31, 2026 vs.

December 31, 2025 March 31, 2025

The percentage change in major equity market indices at June 30, 2026, as compared to such indices at December 31, 2025 and at June 30, 2025 is shown in the table below:

Percentage Changes June 30, 2026 vs.

March 31, 2026 December 31, 2025 June 30, 2025

MSCI World Index 14 % 10 % 21 %

37 unchanged sentences

Incentive fees on hedge funds are often subject to loss carryforward provisions in which losses incurred by the hedge funds in any year are applied against certain gains realized by the hedge funds in future periods before any further incentive fees can be earned.

For private equity funds, incentive fees may be earned in the form of a “carried interest” if profits arising from realized investments exceed a specified threshold.

Typically, such carried interest is ultimately calculated on a whole-fund or investment by investment basis and, therefore, clawback of carried interest toward the end of the life of the fund can occur.

As a result, the Company recognizes incentive fees earned on our private equity funds only when it is probable that a clawback will not occur.

Corporate segment net revenue consists primarily of interest and dividend income and interest expense, as well as gains and losses on investments held in connection with Lazard Fund Interests (“LFI”).

6 unchanged sentences

Our compensation and benefits expense includes (i) salaries and benefits, (ii) amortization of the relevant portion of previously granted deferred incentive compensation awards, including (a) share-based incentive compensation under Lazard’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”) and (b) LFI and other similar deferred compensation arrangements, (iii) a provision for discretionary or guaranteed cash bonuses and profit pools and (iv) when applicable, severance payments and cash retention awards.

Compensation expense in any given period is dependent on many factors, including general economic and market conditions, our actual and forecasted operating and financial performance, staffing levels, estimated forfeiture rates, competitive pay conditions and the nature of revenues earned, as well as the mix between current and deferred compensation.

Compensation expense in any given period is dependent on many factors, including general economic and market conditions, our actual and forecasted operating and financial performance, staffing levels (including investment in strategic senior hires), estimated forfeiture rates, competitive pay conditions and the nature and level of revenues earned, as well as the mix between current and deferred compensation.

See Note 13 of Notes to Condensed Consolidated Financial Statements.

11 unchanged sentences

At the same time, the amount of compensation we award in a particular year is, in part, deferred and amortized over the successive years.

Increased competition for professionals, changes in the macroeconomic environment or the financial markets generally, lower adjusted net revenue resulting from, for example, a decrease in M&A activity, our share of the M&A market or our AUM levels, changes in the mix of revenues from our businesses, investments in our businesses or various other factors could prevent us from achieving this goal.

Our operating expenses also include “non-compensation expense”, which includes costs for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services, and other expenses.

20 unchanged sentences

Dollar, generally the currency of the country in which the subsidiaries are domiciled.

Such subsidiaries’

assets and liabilities are translated into U.S.

Such subsidiaries’ assets and liabilities are translated into U.S.

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

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

5 unchanged sentences

Operating Income 37,603 93,081 127,177 147,716

Benefit for income taxes (10,989) (7,354)

Provision for income taxes 23,871 31,764 12,882 24,410

Net Income 13,732 61,317 114,295 123,306

Less - Net Income (Loss) Attributable to

Less - Net Income Attributable to

Noncontrolling Interests 8,924 5,971 8,571 7,585

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

12 unchanged sentences

(b) Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation and benefits expense.

(c) Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and (provision) benefit for credit losses relating to fees and other receivables that are deemed uncollectible, for which an equal amount is excluded for purposes of determining adjusted non-compensation expense.

(c) Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and provision for credit losses relating to fees and other receivables that are deemed uncollectible, for which an equal amount is excluded for purposes of determining adjusted non-compensation expense.

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

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

13 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

3 unchanged sentences

Distribution fees, reimbursable deal costs, provision for credit losses and other (b) (26,925) (24,717) (49,854) (39,298)

Expenses related to the proposed acquisition of Campbell Lutyens (c) (2,400) –

Amortization and other acquisition-related costs – (26)

Expenses related to the pending acquisition of Campbell Lutyens (c) (8,808) – (11,208) –

Other – (26) – (52)

Adjusted non-compensation expense (d) $ 171,720 $ 157,371 $ 320,395 $ 305,253

Adjusted non-compensation expense, as a % of adjusted net revenue (d) 22.1 % 23.0 %

Adjusted non-compensation expense, as a % of

adjusted net revenue (d) 21.8 % 20.4 % 22.0 % 21.6 %

____________________________________

(a) Expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.

(b) Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and (provision) benefit for credit losses relating to fees and other receivables that are deemed uncollectible, for which an equal amount is included for purposes of determining adjusted net revenue.

(b) Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and provision for credit losses relating to fees and other receivables that are deemed uncollectible, for which an equal amount is included for purposes of determining adjusted net revenue.

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

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

1 unchanged sentence

Operating income $ 37,603 $ 93,081 $ 127,177 $ 147,716

Operating (income) loss related to noncontrolling interests and similar arrangements

Operating income related to noncontrolling

interests and similar arrangements (8,923) (5,970) (8,569) (7,583)

Interest expense 22,430 21,095 45,158 42,064

Amortization and other acquisition-related costs – 26

Other – 26 – 52

Gain on sale and deconsolidation of Edgewater 2,482 – (75,508) –

Expenses associated with senior management transition 2,775 – 19,433 –

Expenses related to the proposed acquisition of Campbell Lutyens 2,400 –

Expenses related to the pending acquisition of

Campbell Lutyens 8,808 – 11,208 –

Adjusted operating income (a) $ 65,175 $ 108,232 $ 118,899 $ 182,249

Adjusted operating income, as a % of adjusted net revenue (a) 8.0 % 11.5 %

Adjusted operating income, as a % of adjusted

net revenue (a) 8.3 % 14.1 % 8.1 % 12.9 %

____________________________________

1 unchanged sentence

Headcount information is set forth below:

March 31, 2026 December 31, 2025 March 31, 2025

June 30, 2026 December 31, 2025 June 30, 2025

Managing Directors:

12 unchanged sentences

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

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

The Company reported net income attributable to Lazard of $101 million, as compared to net income attributable to Lazard of $60 million in the 2025 period.

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

Net revenue increased $12 million, or 1%, with adjusted net revenue increasing $17 million, or 2%, as compared to the 2025 period.

1 unchanged sentence

Asset management fees, including incentive fees, increased $59 million, or 22%, as compared to the 2025 period.

In the aggregate, interest income, other revenue and interest expense decreased $3 million as compared to the 2025 period.

Compensation and benefits expense increased $43 million, or 8%, as compared to the 2025 period.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $550 million, an increase of $45 million, or 9%, as compared to $504 million in the 2025 period.

The ratio of adjusted compensation and benefits expense to adjusted net revenue was 69.9% for the 2026 period, as compared to 65.5% for the 2025 period.

Non-compensation expense, which includes $9 million of expenses related to the pending acquisition of Campbell Lutyens, increased $24 million, or 13%, as compared to the 2025 period.

Adjusted non-compensation expense increased $14 million, or 9%, as compared to the 2025 period.

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

The ratio of adjusted non-compensation expense to adjusted net revenue was 21.8% for the 2026 period, as compared to 20.4% for the 2025 period.

Operating income decreased $55 million, or 60%, as compared to the 2025 period.

Adjusted operating income decreased $43 million, or 40%, as compared to the 2025 period, and, as a percentage of adjusted net revenue, was 8.3% for the 2026 period, as compared to 14.1% in the 2025 period.

The provision for income taxes reflects an effective tax rate of 63.5%, as compared to 34.1% for the 2025 period.

The change in the effective tax rate compared to the 2025 period principally relates to changes in the geographic mix of earnings and certain elevated factors, including the effect of a current period catch-up adjustment from the tax benefit related to the vesting of share-based incentive compensation awards in the first quarter of 2026.

Net income attributable to noncontrolling interests increased $3 million, or 49%, as compared to the 2025 period.

The Company reported net income attributable to Lazard of $5 million, as compared to net income attributable to Lazard of $55 million in the 2025 period.

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

Net revenue increased $120 million, or 8%, with adjusted net revenue increasing $46 million, or 3%, as compared to the 2025 period.

Fee revenue from investment banking and other advisory activities decreased $48 million, or 6%, as compared to the 2025 period.

Asset management fees, including incentive fees, increased $122 million, or 23%, as compared to the 2025 period.

In the aggregate, interest income, other revenue and interest expense increased $46 million, as compared to the 2025 period primarily due to a non-cash gain of $76 million on the sale and deconsolidation of the Edgewater management vehicles in the 2026 period.

2 unchanged sentences

The ratio of adjusted compensation and benefits expense to adjusted net revenue was 69.9% for the 2026 period, as compared to 65.5% for the 2025 period.

Non-compensation expense increased $12 million, or 7%, as compared to the 2025 period.

Non-compensation expense, which includes $11 million of expenses related to the pending acquisition of Campbell Lutyens, increased $36 million, or 10%, as compared to the 2025 period.

Adjusted non-compensation expense increased $15 million, or 5%, as compared to the 2025 period.

Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased fund administration and outsourced services expenses.

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

The ratio of adjusted non-compensation expense to adjusted net revenue was 22.0% for the 2026 period, as compared to 21.6% for the 2025 period.

Operating income increased $35 million, or 64%, as compared to the 2025 period.

Operating income decreased $21 million, or 14%, as compared to the 2025 period.

Adjusted operating income decreased $63 million, or 35%, as compared to the 2025 period, and, as a percentage of adjusted net revenue, was 8.1% for the 2026 period, as compared to 12.9% in the 2025 period.

The benefit for income taxes reflects an effective tax rate of (12.3)%, as compared to (13.5)% for the 2025 period.

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

Net income attributable to noncontrolling interests was a loss of $0.4 million in the 2026 period as compared to income of $2 million in the 2025 period.

The provision for income taxes reflects an effective tax rate of 10.1%, as compared to 16.5% for the 2025 period.

The change in the effective tax rate compared to the 2025 period principally relates to the impact of discrete tax benefits for share-based incentive compensation awards during the first quarter and changes in the geographic mix of earnings.

Net income attributable to noncontrolling interests increased $1 million, or 13%, as compared to the 2025 period.

The Company reported net income attributable to Lazard of $106 million, as compared to net income attributable to Lazard of $116 million in the 2025 period.

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

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

1 unchanged sentence

GAAP basis $ 450,167 $ 497,306 $ 809,735 $ 864,665

Reimbursable deal costs, (provision) benefit for credit losses and other (3,399) 2,181

Reimbursable deal costs, provision for credit losses and other (4,848) (5,952) (8,247) (3,771)

Interest expense – 5 – 8

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Lazard Statistics:

6 unchanged sentences

________________________________________

Dealogic as of April 2, 2026.

Dealogic as of July 2, 2026.

The geographical distribution of Financial Advisory adjusted net revenue is set forth below in percentage terms and is based on the Lazard offices that generate Financial Advisory adjusted net revenue and therefore may not be reflective of the geography in which the clients are located.

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Americas 64 % 56 % 62 % 60 %

EMEA 36 43 38 39

Asia Pacific – 1 – 1

8 unchanged sentences

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

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

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

Financial Advisory net revenue decreased $47 million, or 9%, as compared to the 2025 period.

Financial Advisory adjusted net revenue decreased $46 million, or 9%, as compared to the 2025 period.

The decreases in Financial Advisory net revenue and adjusted net revenue were primarily attributable to the completion of fewer transactions as compared to the 2025 period.

Adjusted compensation and benefits expense increased $30 million, or 12%, as compared to the 2025 period driven by our ongoing investment in strategic senior hires.

Adjusted non-compensation expense decreased $1 million, or 3%, as compared to the 2025 period.

The decreases in Financial Advisory net revenue and adjusted net revenue reflected lower fees from M&A transactions as compared to the 2025 period.

Adjusted compensation and benefits expense decreased $4 million, or 1%, as compared to the 2025 period, as increases related to our ongoing investment in strategic senior hires were more than offset by the effect of reduced revenues.

Adjusted non-compensation expense increased $7 million, or 13%, as compared to the 2025 period primarily due to an increase in travel and entertainment.

Adjusted operating income was $73 million, a decrease of $48 million, or 40%, as compared to adjusted operating income of $122 million in the 2025 period, and, as a percentage of adjusted net revenue, was 16.5%, as compared to 24.8% in the 2025 period.

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

Financial Advisory net revenue decreased $55 million, or 6%, as compared to the 2025 period .

Financial Advisory adjusted net revenue decreased $59 million, or 7%, as compared to the 2025 period.

The decreases in Financial Advisory net revenue and adjusted net revenue reflected lower fees from M&A transactions as compared to the 2025 period.

Adjusted compensation and benefits expense increased $26 million, or 5%, as compared to the 2025 period, primarily driven by our ongoing investment in strategic senior hires.

Adjusted non-compensation expense increased $5 million, or 5%, as compared to the 2025 period primarily due to an increase in travel and entertainment and recruitment fees.

Adjusted operating income was $109 million, a decrease of $90 million, or 45%, as compared to adjusted operating income of $199 million in the 2025 period, and, as a percentage of adjusted net revenue, was 13.5%, as compared to 23.1% in the 2025 period.

Asset Management

5 unchanged sentences

The following table shows the composition of AUM for the Asset Management segment (see Item 1, “Business—Principal Business Lines—Asset Management—Investment Strategies” in our Form 10-K):

March 31, 2026 December 31, 2025 (a)

June 30, 2026 December 31, 2025 (a)

($ in millions)

11 unchanged sentences

The comparable prior period information has been recast to reflect the current presentation.

Total AUM at March 31, 2026 was $259 billion, an increase of $5 billion, or 2%, as compared to total AUM of $254 billion at December 31, 2025 primarily due to net inflows, partially offset by foreign exchange depreciation and the sale and deconsolidation of the Edgewater management vehicles.

Average AUM for the first quarter of 2026 increased 15% as compared to the first quarter of 2025, and increased 2% as compared to the fourth quarter of 2025.

As of both March 31, 2026 and December 31, 2025, approximately 46% of our AUM was managed on behalf of institutional clients, including corporations, labor unions, pension funds, insurance companies, Endowments and Foundations (E&F)/Healthcare and also includes certain Family Office clients.

As of March 31, 2026, approximately 45% of our AUM was managed on behalf of financial intermediary clients, including banks, mutual fund sponsors, sub-advisory relationships, broker-dealers, wealth platforms, registered investment advisors (RIAs), and other investors in pooled vehicles as compared to approximately 44% as of December 31, 2025.

As of March 31, 2026, approximately 9% of our AUM was managed on behalf of individual client relationships, compared to approximately 10% as of December 31, 2025.

As of both March 31, 2026 and December 31, 2025, AUM with foreign currency exposure represented approximately 67% of our total AUM.

Total AUM at June 30, 2026 was $285 billion, an increase of $31 billion, or 12%, as compared to total AUM of $254 billion at December 31, 2025 primarily due to market appreciation and net inflows and an increase attributable to acquiring a controlling interest in Elaia Partners, a venture capital asset management entity (“Elaia”), partially offset by foreign exchange depreciation and the sale and deconsolidation of the Edgewater management vehicles.

Average AUM for the second quarter of 2026 increased 17% as compared to the three month period ended June 30, 2025, and average AUM for the first six months of 2026 increased 16% as compared to the six month period ended June 30, 2025.

As of both June 30, 2026 and December 31, 2025, approximately 46% of our AUM was managed on behalf of institutional clients, including corporations, labor unions, pension funds, insurance companies, Endowments and Foundations (E&F)/Healthcare and also includes certain Family Office clients.

As of June 30, 2026, approximately 45% of our AUM was managed on behalf of financial intermediary clients, including banks, mutual fund sponsors, sub-advisory relationships, broker-dealers, wealth platforms, registered investment advisors (RIAs), and other investors in pooled vehicles as compared to approximately 44% as of December 31, 2025.

As of June 30, 2026, approximately 9% of our AUM was managed on behalf of individual client relationships, compared to approximately 10% as of December 31, 2025.

As of June 30, 2026, AUM with foreign currency exposure represented approximately 68% of our total AUM as compared to 67% at December 31, 2025.

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

1 unchanged sentence

Dollar weakens, with all other factors held constant.

The following is a summary of changes in AUM by asset class for the three month periods ended March 31, 2026 and 2025:

Three Months Ended March 31, 2026 (b)

The following is a summary of changes in AUM by asset class for the three month and six month periods ended June 30, 2026 and 2025:

Three Months Ended June 30, 2026

Balance Inflows Outflows Net

11 unchanged sentences

______________________________________

(a) Related to the sale and deconsolidation of the Edgewater management vehicles.

(b) In 2026, AUM asset classes have been expanded to include a multi asset classification.

(a) Related to the acquisition of a controlling interest in and consolidation of Elaia.

For the three months ended June 30, 2026, net flows were primarily driven by the US Equity and Alternative Investments platforms.

Six Months Ended June 30, 2026 (a)

Balance Inflows Outflows Net

Flows Acquisitions/Divestitures (b) Market Value

Appreciation/

(Depreciation) Foreign

Appreciation/

(Depreciation) AUM

($ in millions)

Equity $ 184,472 $ 30,438 $ (23,352) $ 7,086 $ – $ 25,415 $ (2,605) $ 214,368

Fixed Income 35,065 3,963 (4,156) (193) – 817 (712) 34,977

Multi Asset 24,783 1,181 (1,572) (391) – 713 (625) 24,480

Alternative Investments 9,980 1,536 (647) 889 (459) 520 (105) 10,825

Total $ 254,300 $ 37,118 $ (29,727) $ 7,391 $ (459) $ 27,465 $ (4,047) $ 284,650

_______________________________________

(a) In 2026, AUM asset classes have been expanded to include a multi asset classification.

The comparable prior period information has been recast to reflect the current presentation.

Net flows were primarily driven by the Global/International and Emerging Markets Equity platforms.

Three Months Ended March 31, 2025 (a)

(b) Related to the sale and deconsolidation of the Edgewater management vehicles and the acquisition of a controlling interest in and consolidation of Elaia.

For the six months ended June 30, 2026, net flows were primarily driven by the Global/International Equity and Alternative Investments platforms.

Three Months Ended June 30, 2025 (a)

Balance Inflows Outflows Net

13 unchanged sentences

The comparable prior period information has been recast to reflect the current presentation.

Average AUM for the three month periods ended March 31, 2026 and 2025 for each significant asset class is set forth below.

Six Months Ended June 30, 2025 (a)

Balance Inflows Outflows Net

Flows Acquisitions/Divestitures Market Value

Appreciation/

(Depreciation) Foreign

Appreciation/

(Depreciation) AUM

($ in millions)

Equity $ 162,901 $ 22,153 $ (23,251) $ (1,098) $ – $ 10,922 $ 6,915 $ 179,640

Fixed Income 32,730 3,933 (5,777) (1,844) – 861 2,787 34,534

Multi Asset 22,133 1,277 (1,624) (347) – 759 2,285 24,830

Alternative Investments 8,557 750 (443) 307 – 169 323 9,356

Total $ 226,321 $ 28,113 $ (31,095) $ (2,982) $ – $ 12,711 $ 12,310 $ 248,360

_______________________________________

(a) In 2026, AUM asset classes have been expanded to include a multi asset classification.

The comparable prior period information has been recast to reflect the current presentation.

Average AUM for the three month and six month periods ended June 30, 2026 and 2025 for each significant asset class is set forth below.

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

Three Months Ended

March 31, (a)

June 30, (a) Six Months Ended

2026 2025 2026 2025

($ in millions)

10 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

19 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Americas 45 % 42 % 43 % 41 %

EMEA 40 44 42 45

Asia Pacific 15 14 15 14

3 unchanged sentences

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

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

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

Asset Management net revenue increased $59 million, or 20%, as compared to the 2025 period.

Asset Management adjusted net revenue increased $63 million, or 23%, as compared to the 2025 period.

Management fees, on an adjusted basis, were $310 million, an increase of $58 million, or 23%, as compared to $252 million in the 2025 period primarily due to an increase in average AUM and product mix.

Incentive fees, on an adjusted basis, were $5 million, an

increase of $1 million as compared to $4 million in the 2025 period.

Other revenue, on an adjusted basis, was $16 million, an increase of $3 million as compared to $13 million in the 2025 period.

Adjusted compensation and benefits expense increased $46 million, or 33%, as compared to the 2025 period primarily driven by increased adjusted net revenue.

Adjusted non-compensation expense increased $8 million, or 13%, as compared to the 2025 period primarily due to higher mutual fund servicing fees, which were largely driven by an increase in AUM.

Asset Management adjusted operating income was $74 million, an increase of $9 million, or 14%, as compared to adjusted operating income of $65 million in the 2025 period, and, as a percentage of adjusted net revenue, was 22.5%, as compared to 24.3% in the 2025 period.

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

Asset Management net revenue, which included a non-cash gain of $76 million on the sale and deconsolidation of the Edgewater management vehicles in the first quarter of 2026, increased $180 million, or 31%, as compared to the 2025 period.

Asset Management adjusted net revenue increased $107 million, or 20%, as compared to the 2025 period.

Management fees, on an adjusted basis, were $296 million, an increase of $58 million, or 25%, as compared to $238 million in the 2025 period.

Incentive fees, on an adjusted basis, were $11 million, an increase of $2 million as compared to

$9 million in the 2025 period.

Management fees, on an adjusted basis, were $606 million, an increase of $116 million, or 24%, as compared to $490 million in the 2025 period primarily due to an increase in average AUM and product mix.

Incentive fees, on an adjusted basis, were $17 million, an increase of $4 million as compared to $13 million in the 2025 period.

Other revenue, on an adjusted basis, was $17 million, a decrease of $13 million as compared to $31 million in the 2025 period.

Adjusted compensation and benefits expense increased $63 million, or 22%, as compared to the 2025 period primarily driven by increased adjusted net revenue.

Adjusted non-compensation expense increased $5 million, or 8%, as compared to the 2025 period primarily due to higher mutual fund servicing fees, which were largely driven by an increase in AUM.

Asset Management adjusted operating income was $85 million, an increase of $22 million, or 36%, as compared to adjusted operating income of $62 million in 2025, and, as a percentage of adjusted net revenue, was 27.4%, as compared to 23.6% in 2025.

Adjusted non-compensation expense increased $13 million, or 10%, as compared to the 2025 period primarily due to higher mutual fund servicing fees, which were largely driven by an increase in AUM, and investments in technology.

Asset Management adjusted operating income was $159 million, an increase of $31 million, or 25%, as compared to adjusted operating income of $128 million in the 2025 period, and, as a percentage of adjusted net revenue, was 24.8%, as compared to 24.0% in the 2025 period.

The following table summarizes the reported adjusted operating results attributable to the Corporate segment:

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

($ in thousands)

1 unchanged sentence

GAAP basis $ 6,471 $ 6,213 $ (6,278) $ (1,195)

(Revenue) loss related to noncontrolling interests and similar

Revenue related to noncontrolling interests

and similar arrangements (9,122) (6,775) (9,302) (5,936)

Gains related to LFI and other similar

arrangements (9,921) (10,509) (11,703) (15,752)

Gains related to LFI and other similar arrangements (1,782) (5,243)

Interest expense 22,411 21,087 45,098 42,047

11 unchanged sentences

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

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

Corporate net revenue decreased $5 million, or 72%, as compared to the 2025 period, primarily due to lower gains in the 2026 period as compared to the 2025 period attributable to investments held in connection with LFI.

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

Corporate net revenue and Corporate adjusted net revenue were substantially the same as compared to the 2025 period.

Adjusted compensation and benefits expense, including centrally managed costs, increased $4 million, or 8%, as compared to the 2025 period.

Adjusted non-compensation expense, including centrally managed costs, was substantially the same as compared to the 2025 period.

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

Corporate net revenue decreased $5 million as compared to the 2025 period.

Corporate adjusted net revenue decreased $1 million, or 7%, as compared to the 2025 period.

7 unchanged sentences

Summary of Cash Flows:

Three Months Ended

Six Months Ended

($ in millions)

27 unchanged sentences

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

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

At March 31, 2026, Lazard had approximately $1,021 million of cash and cash equivalents, including approximately $569 million held at Lazard’s operations outside the U.S.

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

As of March 31, 2026, the Company’s remaining lease obligations were $62 million for 2026 (April 1 through December 31), $160 million from 2027 through 2028, $143 million from 2029 through 2030 and $203 million from 2031 through 2039.

As of March 31, 2026, Lazard had approximately $204 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement, among Lazard Group LLC, the banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).

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

At June 30, 2026, Lazard had approximately $1,100 million of cash and cash equivalents, including approximately $553 million held at Lazard’s operations outside the U.S.

Lazard provides for income taxes on substantially all of its foreign earnings and we

expect that no material amount of additional taxes would be recognized upon receipt of dividends or distributions of such earnings from our foreign operations.

As of June 30, 2026, the Company’s remaining lease obligations were $42 million for 2026 (July 1 through December 31), $162 million from 2027 through 2028, $145 million from 2029 through 2030 and $206 million from 2031 through 2039.

In addition, as discussed in Note 11 of Notes to Condensed Consolidated Financial Statements, we entered into a lease agreement for additional office facilities that have not yet commenced, with aggregate undiscounted future lease payments of approximately $100 million.

As of June 30, 2026, Lazard had approximately $210 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement, among Lazard Group LLC, the banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).

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

2 unchanged sentences

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

No amounts were outstanding under the Second Amended and Restated Credit Agreement as of March 31, 2026.

No amounts were outstanding under the Second Amended and Restated Credit Agreement as of June 30, 2026.

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

At March 31, 2026, the Company was in compliance with all financial and nonfinancial provisions.

At June 30, 2026, the Company was in compliance with all financial and nonfinancial provisions.

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

1 unchanged sentence

See also Notes 11, 13, 14, 15, 17 and 18 of Notes to Condensed Consolidated Financial Statements regarding information in connection with commitments, incentive plans, employee benefit plans, income taxes, tax receivable agreement obligations and regulatory requirements, respectively.

The table below sets forth our corporate indebtedness as of March 31, 2026 and December 31, 2025.

The table below sets forth our corporate indebtedness as of June 30, 2026 and December 31, 2025.

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

Outstanding as of

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Senior Debt Annual Interest Rate Principal Unamortized

13 unchanged sentences

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

At March 31, 2026, the Company was in compliance with all of these provisions.

At June 30, 2026, the Company was in compliance with all of these provisions.

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

6 unchanged sentences

Stockholders’ Equity

At March 31, 2026, total stockholders’ equity was $872 million, as compared to $906 million at December 31, 2025, including $881 million and $869 million attributable to Lazard, Inc.

At June 30, 2026, total stockholders’ equity was $905 million, as compared to $906 million at December 31, 2025, including $914 million and $869 million attributable to Lazard, Inc.

on the respective dates.

The net activity in stockholders’ equity during the three month period ended March 31, 2026 is reflected in the table below (in millions of dollars):

The net activity in stockholders’ equity during the six month period ended June 30, 2026 is reflected in the table below (in millions of dollars):

Stockholders’ Equity - January 1, 2026 $ 906

8 unchanged sentences

Other - net (6)

Stockholders’ Equity - March 31, 2026 $ 872

Stockholders’ Equity - June 30, 2026 $ 905

________________________________________

6 unchanged sentences

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

Three Months Ended March 31:

Six Months Ended June 30:

Shares Purchased Average

1 unchanged sentence

2026 1,180,585 $ 43.79

As of March 31, 2026, a total of $107 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.

On April 30, 2026, the Board of Directors of Lazard declared a quarterly dividend of $0.50 per share on our common stock.

The dividend is payable on May 22, 2026 to stockholders of record on May 11, 2026.

As of June 30, 2026, a total of $57 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.

On July 22, 2026, the Board of Directors authorized additional share repurchases of $200 million, which expire as of December 31, 2028, bringing the total outstanding share repurchase authorization to approximately $257 million.

During the six month period ended June 30, 2026, Lazard, Inc.

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

On July 22, 2026, the Board of Directors of Lazard declared a quarterly dividend of $0.50 per share on our common stock.

The dividend is payable on August 14, 2026 to stockholders of record on August 3, 2026.

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

5 unchanged sentences

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

structure is designed to provide each of our subsidiaries with capital and liquidity consistent with its business and regulatory requirements.

Our capital structure is designed to provide each of our subsidiaries with capital and liquidity consistent with its business and regulatory requirements.

For a discussion of regulations relating to us, see Item 1, “Business—Regulation” included in our Form 10-K.

24 unchanged sentences

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

Differences which

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

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

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

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

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

17 unchanged sentences

Liabilities for unrecognized tax benefits involve significant judgment and the ultimate resolution of such matters may be materially different from our estimates.

In addition to the discussion above regarding deferred tax assets and associated valuation allowances, as well as unrecognized tax benefit liability estimates, other factors affect our provision for income taxes, including changes in the geographic mix of our business, the level of our annual pre-tax income, transfer pricing and intercompany transactions.

In addition to the discussion above regarding deferred tax assets and associated valuation allowances, as well as unrecognized tax benefit liability estimates, other factors affect our interim and annual provisions for income taxes, including changes in the geographic mix of our business, the level of our projected and actual annual pre-tax income, transfer pricing and intercompany transactions.

See Item 1A, “Risk Factors” in our Form 10-K and Note 15 of Notes to Condensed Consolidated Financial Statements for additional information related to income taxes.

28 unchanged sentences

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

Seed investments held in entities in which the Company maintained a controlling financial interest were $170 million in fifteen entities as of March 31, 2026, as compared to $183 million in thirteen entities as of December 31, 2025.

LFI investments held in entities in which the Company maintained a controlling financial interest were $27 million in eight entities as of March 31, 2026, as compared to $63 million in nine entities as of December 31, 2025.

As of March 31, 2026 and December 31, 2025, the Company did not consolidate any seed investment entities or LFI investment entities, with the exception of the consolidation of certain LFI funds (see Note 20 of Notes to Condensed Consolidated Financial Statements).

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

Seed investments held in entities in which the Company maintained a controlling financial interest were $146 million in twelve entities as of June 30, 2026, as compared to $183 million in thirteen entities as of December 31, 2025.

LFI investments held in entities in which the Company maintained a controlling financial interest were $31 million in nine entities as of June 30, 2026, as compared to $63 million in nine entities as of December 31, 2025.

As of June 30, 2026 and December 31, 2025, the Company did not consolidate any seed investment entities or LFI investment entities, with the exception of the consolidation of certain LFI funds (see Note 20 of Notes to Condensed Consolidated Financial Statements).

As such, seed investments and substantially all of LFI investments included in

“investments” on the condensed consolidated statements of financial condition represented the Company’s economic interest in the seed and LFI investments.

Risk Management

8 unchanged sentences

Data relating to investments is set forth below:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in thousands)

16 unchanged sentences

_______________________

(a) At March 31, 2026 and December 31, 2025, seed investments in directly owned equity securities were invested as follows:

March 31, 2026 December 31, 2025

(a) At June 30, 2026 and December 31, 2025, seed investments in directly owned equity securities were invested as follows:

June 30, 2026 December 31, 2025

Percentage invested in:

16 unchanged sentences

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

Equity Market Price Risk—At March 31, 2026 and December 31, 2025, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $241 million and $259 million, respectively.

Equity Market Price Risk—At June 30, 2026 and December 31, 2025, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $286 million and $259 million, respectively.

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

The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $1.3 million and $1.0 million as of March 31, 2026 and December 31, 2025, respectively, in the carrying value of such investments, including the effect of the hedging transactions.

Interest Rate and Credit Spread Risk—At March 31, 2026 and December 31, 2025, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $17 million and $22 million, respectively.

The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $1.9 million and $1.0 million as of June 30, 2026 and December 31, 2025, respectively, in the carrying value of such investments, including the effect of the hedging transactions.

Interest Rate and Credit Spread Risk—At June 30, 2026 and December 31, 2025, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $19 million and $22 million, respectively.

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

The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net decrease of approximately $0.6 million and $0.7 million as of March 31, 2026 and December 31, 2025, respectively, including the effect of the hedging transactions.

Foreign Exchange Rate Risk—At March 31, 2026 and December 31, 2025, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and private equity investments was $97 million and $114 million, respectively.

The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net decrease of approximately $0.5 million and $0.7 million as of June 30, 2026 and December 31, 2025, respectively, including the effect of the hedging transactions.

Foreign Exchange Rate Risk—At June 30, 2026 and December 31, 2025, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and private equity investments was $126 million and $114 million, respectively.

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

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

Dollar would result in a net decrease of approximately $2.4 million and $2.0 million in the carrying value of such investments as of March 31, 2026 and December 31, 2025, respectively, including the effect of the hedging transactions.

Dollar would result in a net decrease of approximately $2.7 million and $2.0 million in the carrying value of such investments as of June 30, 2026 and December 31, 2025, respectively, including the effect of the hedging transactions.

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

At March 31, 2026 and December 31, 2025, the Company’s exposure to changes in fair value of such investments was approximately $20 million and $28 million, respectively.

The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.0 million and $2.8 million, respectively, in the carrying value of such investments as of March 31, 2026 and December 31, 2025.

At June 30, 2026 and December 31, 2025, the Company’s exposure to changes in fair value of such investments was approximately $23 million and $28 million, respectively.

The Company estimates

that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.3 million and $2.8 million, respectively, in the carrying value of such investments as of June 30, 2026 and December 31, 2025.

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

1 unchanged sentence

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

At March 31, 2026, total receivables amounted to $774 million, net of an allowance for credit losses of $22 million.

At June 30, 2026, total receivables amounted to $765 million, net of an allowance for credit losses of $24 million.

As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 76% and 24% of total receivables, respectively.

At December 31, 2025, total receivables amounted to $898 million, net of an allowance for

credit losses of $23 million.

At December 31, 2025, total receivables amounted to $898 million, net of an allowance for credit losses of $23 million.

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

1 unchanged sentence

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

At March 31, 2026 and December 31, 2025, customers and other receivables included $139 million and $142 million, respectively.

At both June 30, 2026 and December 31, 2025, customers and other receivables included $142 million.

Such LFB loans are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans.

6 unchanged sentences

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

Net derivative assets amounted to $5 million and $0.5 million at March 31, 2026 and December 31, 2025, respectively, and net derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to LFI and other similar deferred compensation arrangements, amounted to $22 million and $30 million at March 31, 2026 and December 31, 2025, respectively.

Net derivative assets amounted to $2 million and $0.5 million at June 30, 2026 and December 31, 2025, respectively, and net derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to LFI and other similar deferred compensation arrangements, amounted to $20 million and $30 million at June 30, 2026 and December 31, 2025, respectively.

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

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

Derivative liabilities relating to LFI amounted to $114 million and $189 million at March 31, 2026 and December 31, 2025, respectively.

Derivative liabilities relating to LFI amounted to $121 million and $189 million at June 30, 2026 and December 31, 2025, respectively.

Risks Related to Cash and Cash Equivalents and Corporate Indebtedness

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

Based on account balances as of March 31, 2026, Lazard estimates that its annual operating income relating to cash and cash equivalents would increase by approximately $10 million in the event interest rates were to increase by 1% and decrease by approximately $10 million if rates were to decrease by 1%.

As of March 31, 2026, the Company’s cash and cash equivalents totaled approximately $1,021 million.

Based on account balances as of June 30, 2026, Lazard estimates that its annual operating income relating to cash and cash equivalents would increase by approximately $11 million in the event interest rates were to increase by 1% and decrease by approximately $11 million if rates were to decrease by 1%.

As of June 30, 2026, the Company’s cash and cash equivalents totaled approximately $1,100 million.

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

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

Cash and cash equivalents are continuously monitored.

Cash and cash

equivalents are continuously monitored.

On a regular basis, management reviews its investment profile as well as the credit profile of its list of depositor banks in order to adjust any deposit or investment thresholds as necessary.

4 unchanged sentences

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

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

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

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

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

3 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis