Lazard, Inc. 10-Q

Item 1. Financial Statements (Unaudited) Page Condensed Consolidated Statements of Financial Condition as of September 30, 2026 and December 31, 2025 2 Condensed Consolidated Statements of Operations for the three month and nine month periods ended September 30, 2026 and 2025 4 Condensed Consolidated Statements of Comprehensive Income for the three month and nine month periods ended September 30, 2026 and 2025 5 Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2026 and 2025 6 Condensed Consolidated Statements of Changes in Stockholders’ Equity and Redeemable Noncontrolling Interests for the three month and nine month periods ended September 30, 2026 and 2025 8 Notes to Condensed Consolidated Financial Statements 12 1 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION SEPTEMBER 30, 2026 AND DECEMBER 31, 2025 (UNAUDITED) (dollars in thousands, except for per share data) September 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 1,263,956 $ 1,469,416 Deposits with banks and short-term investments 182,451 167,134 Restricted cash 6,329 34,021 Receivables (net of allowance for credit losses of $ 25,177 and $ 22,884 at September 30, 2026 and December 31, 2025, respectively): Fees 606,427 706,220 Customers and other 236,580 191,566 843,007 897,786 Investments (including $ 36,916 and $ 48,966 pledged at September 30, 2026 and December 31, 2025, respectively) 520,773 625,846 Property (net of accumulated amortization and depreciation of $ 298,800 and $ 286,235 at September 30, 2026 and December 31, 2025, respectively) 151,260 168,005 Operating lease right-of-use assets 398,151 412,584 Goodwill and other intangible assets (net of accumulated amortization of $ 3,959 and $ 67,711 at September 30, 2026 and December 31, 2025, respectively) 451,805 395,262 Deferred tax assets 453,721 449,531 Other assets 276,457 316,687 Total Assets $ 4,547,910 $ 4,936,272 See notes to condensed consolidated financial statements. 2 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION SEPTEMBER 30, 2026 AND DECEMBER 31, 2025 (UNAUDITED) (dollars in thousands, except for per share data) September 30, 2026 December 31, 2025 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY Liabilities: Deposits and other customer payables $ 368,787 $ 330,852 Accrued compensation and benefits 495,661 794,754 Operating lease liabilities 470,755 485,149 Senior debt 1,690,252 1,688,086 Deferred tax liabilities 7,643 1,368 Other liabilities 465,120 651,395 Total Liabilities 3,498,218 3,951,604 Commitments and contingencies Redeemable noncontrolling interests 109,207 78,379 STOCKHOLDERS’ EQUITY Preferred stock, par value $ 0.01 per share; 15,000,000 shares authorized; no shares issued and outstanding at September 30, 2026 and December 31, 2025 – – Common stock: Par value $ 0.01 per share ( 500,000,000 shares authorized; 109,783,028 and 111,728,757 shares issued at September 30, 2026 and December 31, 2025, respectively, including shares held in treasury) 1,098 1,117 Additional paid-in-capital 219,424 306,425 Retained earnings 1,477,967 1,517,571 Accumulated other comprehensive loss, net of tax ( 275,422 ) ( 271,509 ) 1,423,067 1,553,604 Common stock held in treasury, at cost ( 12,120,709 and 17,822,122 shares at September 30, 2026 and December 31, 2025, respectively) ( 474,281 ) ( 684,411 ) Total Lazard Stockholders’ Equity 948,786 869,193 Noncontrolling interests ( 8,301 ) 37,096 Total Stockholders’ Equity 940,485 906,289 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity $ 4,547,910 $ 4,936,272 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, 2026 AND 2025 (UNAUDITED) (dollars in thousands, except for per share data) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 REVENUE Investment banking and other advisory fees $ 467,781 $ 425,895 $ 1,273,379 $ 1,279,488 Asset management fees 347,019 308,038 1,009,214 848,259 Interest income 6,968 7,660 22,031 28,529 Other 14,609 29,171 141,352 100,812 Total revenue 836,377 770,764 2,445,976 2,257,088 Interest expense 22,206 22,686 67,554 64,962 Net revenue 814,171 748,078 2,378,422 2,192,126 OPERATING EXPENSES Compensation and benefits 568,983 498,212 1,623,286 1,447,690 Occupancy and equipment 33,921 31,908 99,148 101,024 Marketing and business development 27,547 26,085 90,617 83,409 Technology and information services 49,834 48,862 150,742 144,350 Professional services 22,322 20,951 75,879 64,377 Fund administration and outsourced services 41,291 32,390 112,861 88,989 Benefit pursuant to tax receivable agreement obligation – ( 20,146 ) – ( 20,146 ) Other 15,521 14,886 43,960 39,787 Total operating expenses 759,419 653,148 2,196,493 1,949,480 OPERATING INCOME 54,752 94,930 181,929 242,646 Provision for income taxes 25,082 21,430 37,964 45,840 NET INCOME 29,670 73,500 143,965 196,806 LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 510 2,253 9,081 9,838 NET INCOME ATTRIBUTABLE TO LAZARD $ 29,160 $ 71,247 $ 134,884 $ 186,968 ATTRIBUTABLE TO LAZARD COMMON STOCKHOLDERS: WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: Basic 101,030,518 98,112,393 100,616,105 96,967,379 Diluted 107,284,701 108,001,762 107,138,010 105,914,050 NET INCOME PER SHARE OF COMMON STOCK: Basic $ 0.27 $ 0.71 $ 1.28 $ 1.88 Diluted $ 0.26 $ 0.65 $ 1.20 $ 1.72 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, 2026 AND 2025 (UNAUDITED) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 NET INCOME $ 29,670 $ 73,500 $ 143,965 $ 196,806 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: Currency translation adjustments (net of tax expense (benefit) of $ 8 and $ 3,200 for the three months ended September 30, 2026 and 2025, respectively, and $( 595 ) and $ 3,200 for the nine months ended September 30, 2026 and 2025, respectively) 2,490 ( 8,838 ) ( 12,524 ) 61,243 Employee benefit plans: Actuarial gain (loss) (net of tax expense (benefit) of $( 153 ) and $ 628 for the three months ended September 30, 2026 and 2025, respectively, and $ 1,214 and $( 3,710 ) for the nine months ended September 30, 2026 and 2025, respectively) ( 809 ) 2,961 3,708 ( 12,856 ) Adjustment for items reclassified to earnings (net of tax expense of $ 526 and $ 554 for the three months ended September 30, 2026 and 2025, respectively, and $ 1,573 and $ 1,646 for the nine months ended September 30, 2026 and 2025, respectively) 1,621 1,831 4,874 5,472 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 3,302 ( 4,046 ) ( 3,942 ) 53,859 COMPREHENSIVE INCOME 32,972 69,454 140,023 250,665 LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 481 2,254 9,052 9,905 COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD $ 32,491 $ 67,200 $ 130,971 $ 240,760 See notes to condensed consolidated financial statements. 5 LAZARD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2026 AND 2025 (UNAUDITED) (dollars in thousands) Nine Months Ended September 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 143,965 $ 196,806 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of deferred expenses and share-based incentive compensation 407,157 359,051 Noncash lease expense 47,255 49,587 Depreciation and amortization of property 22,556 25,549 Deferred tax benefit ( 3,655 ) ( 2,363 ) Gain on sale and deconsolidation of business ( 75,508 ) – Benefit pursuant to tax receivable agreement – ( 20,146 ) Other adjustments ( 1,784 ) ( 8,566 ) (Increase) decrease in operating assets and increase (decrease) in operating liabilities: Receivables-net 59,589 45,582 Investments 53,462 ( 14,133 ) Other assets ( 22,978 ) ( 7,858 ) Accrued compensation and benefits and other liabilities ( 329,471 ) ( 503,882 ) Net cash provided by operating activities 300,588 119,627 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property ( 11,741 ) ( 28,366 ) Purchase and consolidation of business, net of cash acquired ( 1,809 ) – Sale and deconsolidation of business, net of cash proceeds ( 46,226 ) – Proceeds from sale of property 3,558 – Proceeds from (payments for) customer loans, net ( 12,757 ) ( 37,250 ) Other investing activities ( 9 ) 1,666 Net cash used in investing activities ( 68,984 ) ( 63,950 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from (payments for) customer deposits, net ( 8,566 ) 12,477 Proceeds from: Issuance of senior debt – 300,000 Contributions from noncontrolling interests 151 1,466 Payments for: Extinguishment of senior debt – ( 298,354 ) Distributions to noncontrolling interests ( 1,879 ) ( 2,049 ) Tax receivable agreement obligation ( 10,237 ) – Purchase of common stock ( 84,988 ) ( 41,012 ) Common stock dividends ( 144,935 ) ( 139,203 ) Settlement of share-based incentive compensation in satisfaction of tax withholding requirements ( 135,794 ) ( 114,783 ) LFI Consolidated Funds redemptions ( 28,591 ) ( 30,232 ) Other financing activities ( 13,044 ) ( 17,269 ) Net cash used in financing activities ( 427,883 ) ( 328,959 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 21,556 ) 86,957 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 217,835 ) ( 186,325 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1 1,670,571 1,609,368 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—September 30 $ 1,452,736 $ 1,423,043 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, 2026 December 31, 2025 Cash and cash equivalents $ 1,263,956 $ 1,469,416 Deposits with banks and short-term investments 182,451 167,134 Restricted cash 6,329 34,021 TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH $ 1,452,736 $ 1,670,571 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, 2026 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held In Treasury Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - July 1, 2026 110,548,172 $ 1,105 $ 195,119 $ 1,505,836 $ ( 278,753 ) 13,097,600 $ ( 509,002 ) $ 914,305 $ ( 9,773 ) $ 904,532 $ 111,286 Comprehensive income (loss): Net income 29,160 29,160 – 29,160 510 Other comprehensive income (loss) - net of tax 3,331 3,331 3,331 ( 26 ) Amortization of share-based incentive compensation 101,796 101,796 1,554 103,350 Dividend equivalents 8,220 ( 8,302 ) ( 82 ) ( 2,743 ) ( 2,825 ) Common stock dividends ($ 0.50 per share) ( 48,727 ) ( 48,727 ) ( 48,727 ) Purchase and cancellation of common stock ( 765,144 ) ( 7 ) ( 29,829 ) – ( 3,458 ) ( 33,294 ) ( 33,294 ) Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 8,290 ( 55,485 ) ( 976,891 ) 38,179 ( 17,306 ) 2,661 ( 14,645 ) Business acquisitions and related equity transactions: Common stock issuable 158 158 158 Distributions to noncontrolling interests, net – – ( 6 ) LFI Consolidated Funds ( 3,104 ) Purchase and consolidation of business (a) ( 555 ) ( 555 ) ( 555 ) 547 Balance - September 30, 2026 109,783,028 $ 1,098 $ 219,424 $ 1,477,967 $ ( 275,422 ) 12,120,709 $ ( 474,281 ) $ 948,786 $ ( 8,301 ) $ 940,485 $ 109,207 ____________________ (a) See Notes 9 and 12. 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, 2026 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held In Treasury Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - January 1, 2026 111,728,757 $ 1,117 $ 306,425 $ 1,517,571 $ ( 271,509 ) 17,822,122 $ ( 684,411 ) $ 869,193 $ 37,096 $ 906,289 $ 78,379 Comprehensive income (loss): Net income 134,884 134,884 2 134,886 9,079 Other comprehensive loss - net of tax ( 3,913 ) ( 3,913 ) ( 3,913 ) ( 29 ) Amortization of share-based incentive compensation 332,321 332,321 4,307 336,628 Dividend equivalents 29,240 ( 29,553 ) ( 313 ) ( 8,202 ) ( 8,515 ) Common stock dividends ($ 1.50 per share) ( 144,935 ) ( 144,935 ) ( 144,935 ) Purchase and cancellation of common stock ( 1,945,729 ) ( 19 ) ( 75,478 ) – ( 9,491 ) ( 84,988 ) ( 84,988 ) Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 10,592 ( 371,934 ) ( 5,701,413 ) 219,621 ( 152,313 ) 5,927 ( 146,386 ) Business acquisitions and related equity transactions: Common stock issuable 1,393 1,393 1,393 Contributions from (distributions to) noncontrolling interests, net 85 85 ( 1,813 ) LFI Consolidated Funds ( 12,730 ) Sale and deconsolidation of business (a) ( 47,002 ) ( 47,002 ) Purchase and consolidation of business (b) ( 2,543 ) ( 2,543 ) ( 514 ) ( 3,057 ) 36,321 Balance - September 30, 2026 109,783,028 $ 1,098 $ 219,424 $ 1,477,967 $ ( 275,422 ) 12,120,709 $ ( 474,281 ) $ 948,786 $ ( 8,301 ) $ 940,485 $ 109,207 ____________________ (a) See Note 1. (b) See Notes 9 and 12. ( 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, 2025 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held In Treasury Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - July 1, 2025 112,766,091 $ 1,128 $ 191,132 $ 1,507,082 $ ( 268,903 ) 18,408,649 $ ( 693,298 ) $ 737,141 $ 44,881 $ 782,022 $ 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 ( 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 ) Distributions 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 $ 259,086 $ 1,522,725 $ ( 272,950 ) 17,868,792 $ ( 672,928 ) $ 837,060 $ 37,104 $ 874,164 $ 78,518 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, 2025 (UNAUDITED) (dollars in thousands) Common Stock Additional Paid-In- Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Common Stock Held In Treasury Total Lazard Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Redeemable Noncontrolling Interests Shares $ Shares $ Balance - January 1, 2025 112,766,091 $ 1,128 $ 293,884 $ 1,501,577 $ ( 326,742 ) 22,467,315 $ ( 838,069 ) $ 631,778 $ 48,914 $ 680,692 $ 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 ( 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 Distributions 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 $ 259,086 $ 1,522,725 $ ( 272,950 ) 17,868,792 $ ( 672,928 ) $ 837,060 $ 37,104 $ 874,164 $ 78,518 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 and opportunities 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, 2026 and December 31, 2025. 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 (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, strategic capital solutions, 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, certain 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, 2025. The accompanying December 31, 2025 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, 2026 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 20). 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. “Proceeds from (payments for) customer loans, net” is being reported separately in the condensed consolidated statements of cash flows. Such amounts were previously reported in “other investing activities”. Prior period information has been recast to reflect the updated presentation. Change in Accounting Principle In the first quarter of 2026, the Company changed its accounting principle for recognizing compensation expense for share-based incentive compensation awards and certain deferred compensation arrangements with only a service condition from the graded attribution method to the straight-line attribution method. The Company believes that the straight-line attribution method of accounting is preferable because it more appropriately reflects the pattern of service provided by the employee. This change in accounting principle was retrospectively applied resulting in a cumulative effect that was recorded as an adjustment to opening retained earnings as of January 1, 2024. The effect of the change on each prior period’s condensed consolidated statements of operations and cash flows presented as well as on basic and diluted net income per share and weighted average shares of common stock outstanding was not material, and as a result these amounts were not recast. The Company also changed the vesting period for share-based incentive compensation awards and certain deferred compensation arrangements with only a service condition, granted in the first quarter of 2026, such that they vest to employees ratably over three years (see Note 13). 13 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The following tables present the effect of the change in accounting principle and its impact on key components of the Company's condensed consolidated statements of financial condition and condensed consolidated statements of changes in stockholders’ equity and redeemable noncontrolling interests: December 31, 2025 As Reported As Adjusted Effect of Change Deferred tax assets $ 459,087 $ 449,531 $ ( 9,556 ) Other assets (a) 311,593 316,687 5,094 Stockholders' Equity: Additional paid-in-capital $ 340,351 $ 306,425 $ ( 33,926 ) Retained earnings 1,488,107 1,517,571 29,464 Total Lazard Stockholders' Equity 873,655 869,193 ( 4,462 ) Total Stockholders' Equity 910,751 906,289 ( 4,462 ) Three Months Ended September 30, 2025 As Reported As Adjusted Effect of Change Additional Paid-In-Capital: Balance - July 1, 2025 $ 225,058 $ 191,132 $ ( 33,926 ) Balance - September 30, 2025 293,012 259,086 ( 33,926 ) Retained Earnings: Balance - July 1, 2025 $ 1,477,618 $ 1,507,082 $ 29,464 Balance - September 30, 2025 1,493,261 1,522,725 29,464 Nine Months Ended September 30, 2025 As Reported As Adjusted Effect of Change Additional Paid-In-Capital: Balance - January 1, 2025 $ 327,810 $ 293,884 $ ( 33,926 ) Balance - September 30, 2025 293,012 259,086 ( 33,926 ) Retained Earnings: Balance - January 1, 2025 $ 1,472,113 $ 1,501,577 $ 29,464 Balance - September 30, 2025 1,493,261 1,522,725 29,464 ___________________________________ (a) Included in other assets is the prepaid compensation asset relating to Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. The following table presents the impact to the prepaid compensation asset as presented in Note 13: December 31, 2025 As Reported As Adjusted Effect of Change Prepaid Compensation Asset - LFI $ 28,407 $ 33,501 $ 5,094 14 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) Sale and Deconsolidation of The Edgewater Management Vehicles (“Edgewater”) On February 13, 2026, the Company completed the sale of a controlling stake in the Edgewater management vehicles, resulting in the deconsolidation of the related entities. The Company measured its retained investment in Edgewater, primarily composed of certain carried interests, at fair value of $ 6,314 . This measurement, which required significant management estimates and assumptions, was determined using an income approach, which is based on discounted estimated future cash flows from net income. As a result of the transaction, the Company recorded a pre-tax gain of $ 75,508 , which was reported as “other revenue” on the condensed consolidated statement of operations for the nine month period ended September 30, 2026. Cash flows from investing activities “sale and deconsolidation of business, net of cash proceeds” in the condensed consolidated statements of cash flows for the nine month period ended September 30, 2026 primarily relate to decrease in cash and cash equivalents and restricted cash from the deconsolidation of Edgewater. The Company uses the equity method to account for its retained investment. Pending Acquisition of Campbell Lutyens Holdings Limited (“Campbell Lutyens”) On April 30, 2026, the Company entered into a Sale and Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to acquire all of the issued share capital of Campbell Lutyens, a global private markets advisor focused on fund placement, secondary advisory, and GP capital advisory services. The aggregate consideration for the transaction consists of (i) initial closing consideration of $ 460,000 based on the Company’s stock price at announcement, and subject to adjustments for cash, debt and working capital as of closing; (ii) deferred consideration of $ 115,000 payable on the second anniversary of closing; and (iii) earn-out consideration of up to $ 85,000 based on the achievement of defined performance criteria over a multi-year period and subject to continuing employment by certain selling shareholders. Both initial and deferred consideration include portions that are subject to additional lock-up arrangements. The aggregate consideration is payable in a combination of the Company’s common stock, cash, and loan notes, subject to the terms of the Purchase Agreement, including limitations on share issuance. The transaction is expected to close in early November, subject to customary closing conditions. 2 . RECENT ACCOUNTING DEVELOPMENTS 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 receivable, 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 prospective application. The Company elected to apply the practical expedient on a prospective basis beginning January 1, 2026. The adoption of this guidance did not have a material impact on the Company’s financial statements. 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. 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. 15 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 3. REVENUE RECOGNITION The Company disaggregates revenue from contracts with customers 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, 2026 2025 2026 2025 Net Revenue: Financial Advisory (a) $ 468,563 $ 427,335 $ 1,275,655 $ 1,292,000 Asset Management: Management fees (b) $ 345,849 $ 292,565 $ 990,957 $ 817,592 Incentive fees (c) 1,169 15,489 18,257 30,678 Other (d) 6,138 18,975 24,397 59,337 Total Asset Management $ 353,156 $ 327,029 $ 1,033,611 $ 907,607 ___________________________________ (a) Financial Advisory is comprised of a wide array of financial advisory services regarding M&A advisory, strategic capital solutions, 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 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 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. (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. (d) Other is primarily comprised of 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. Asset Management “other” revenue is being reported separately in the above table. Such amounts were previously included in “management fees and other”. Prior period information has been recast to reflect the updated presentation. 16 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) At September 30, 2026, the Company had deferred revenue of $ 4,288 included in “other liabilities” on the condensed consolidated statements of financial condition. During the three month and nine month periods ended September 30, 2026, the Company recognized $ 761 and $ 10,517 in revenue, respectively, that was included in the deferred revenue balance as of December 31, 2025 of $ 139,022 . The majority of the remaining decrease in the deferred revenue balance in the nine month period ended September 30, 2026 relates to the sale and corresponding deconsolidation of Edgewater. See Note 1 for further information. 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, 2026 and December 31, 2025, $ 124,990 and $ 152,227 , respectively, represented financing receivables for our Private Capital Advisory fees. At September 30, 2026 and December 31, 2025, customers and other receivables included $ 151,373 and $ 142,454 , 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, 2026 and December 31, 2025. The aggregate carrying amount of other fees and customers and other receivables was $ 566,644 and $ 603,105 at September 30, 2026 and December 31, 2025, respectively. Activity in the allowance for credit losses for the three month and nine month periods ended September 30, 2026 and 2025 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Beginning Balance $ 23,589 $ 26,545 $ 22,884 $ 32,033 Provision for credit losses, net of reversals 1,725 1,602 2,942 ( 1,329 ) Charge-offs ( 115 ) ( 231 ) ( 297 ) ( 3,761 ) Foreign currency translation and other adjustments ( 22 ) ( 23 ) ( 352 ) 950 Ending Balance $ 25,177 $ 27,893 $ 25,177 $ 27,893 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. 17 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, 2026 and December 31, 2025: September 30, 2026 December 31, 2025 Debt $ 407 $ 1,729 Equity 60,315 56,920 Funds: Alternative investments (a) 46,175 52,702 Debt (a) 74,919 125,806 Equity (a) 310,953 320,832 Private equity (b) 21,633 49,105 Total funds 453,680 548,445 Investments, at fair value 514,402 607,094 Equity method investments 6,371 18,752 Total investments $ 520,773 $ 625,846 ___________________________________ (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 20), held to satisfy the Company’s obligation upon vesting of previously granted 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, 2026 December 31, 2025 Investments related to LFI and other similar deferred compensation arrangements: Alternative investments $ 22,784 $ 22,224 Debt 53,892 101,297 Equity 131,918 161,500 Total $ 208,594 $ 285,021 (b) Unfunded commitments relating to investments: September 30, 2026 December 31, 2025 Private equity funds $ 35,193 $ 34,389 Debt securities primarily consist of investments in government 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. 18 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 are primarily comprised of investments in private equity funds. Such investments primarily include (i) an investment in a European tech-focused growth equity fund managed by our asset management business, (ii) a seed investment in a fund that invests in sustainable private infrastructure opportunities, and (iii) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies. In 2025, 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 Edgewater. Equity method investments include (i) a retained investment in Edgewater, and (ii) until the second quarter of 2026, an interest in Elaia Partners, a venture capital asset management entity (“Elaia”). The carrying value included amounts related to intangible assets, which are amortized, and goodwill. See Note 9 for further information on the acquisition of an additional ownership stake in Elaia which resulted in a controlling financial interest. During the three month and nine month periods ended September 30, 2026 and 2025, 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, 2026 2025 2026 2025 Net unrealized investment gains (losses) $ ( 10,668 ) $ 12,663 $ 16,823 $ 51,904 As of September 30, 2026 and December 31, 2025, the Company has pledged investments with a carrying value of $ 36,916 and $ 48,966 , respectively, primarily as collateral for its derivative contracts (see Note 7). Such pledged assets can be sold or repledged by the secured party. 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. 19 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 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. 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. 20 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) The following tables present, as of September 30, 2026 and December 31, 2025, 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, 2026 Level 1 Level 2 Level 3 NAV Total Assets: Deposits with banks and short-term investments (a) $ 24,824 $ – $ – $ – $ 24,824 Restricted cash (a) 100 – – – 100 Investments: Debt – 407 – – 407 Equity 59,591 – 724 – 60,315 Funds: Alternative investments 4,976 – – 41,199 46,175 Debt 69,564 5,352 – 3 74,919 Equity 264,287 39,947 – 6,719 310,953 Private equity – – 260 21,373 21,633 Derivatives – 2,254 – – 2,254 Total $ 423,342 $ 47,960 $ 984 $ 69,294 $ 541,580 Liabilities: Securities sold, not yet purchased $ 4,239 $ – $ – $ – $ 4,239 Derivatives – 138,467 – – 138,467 Total $ 4,239 $ 138,467 $ – $ – $ 142,706 21 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) December 31, 2025 Level 1 Level 2 Level 3 NAV Total Assets: Deposits with banks and short-term investments (a) $ 24,820 $ – $ – $ – $ 24,820 Restricted cash (a) 100 – – – 100 Investments: Debt 1,313 416 – – 1,729 Equity 56,245 – 675 – 56,920 Funds: Alternative investments 7,232 – – 45,470 52,702 Debt 116,464 9,339 – 3 125,806 Equity 320,334 432 – 66 320,832 Private equity – – 290 48,815 49,105 Derivatives – 453 – – 453 Total $ 526,508 $ 10,640 $ 965 $ 94,354 $ 632,467 Liabilities: Securities sold, not yet purchased $ 3,434 $ – $ – $ – $ 3,434 Contingent consideration liability – – 2,300 – 2,300 Derivatives – 218,939 – – 218,939 Total $ 3,434 $ 218,939 $ 2,300 $ – $ 224,673 ___________________________________ (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, 2026 and 2025: Three Months Ended September 30, 2026 Beginning Balance Net Unrealized Gains/Losses Included In Earnings Purchases/ Issuances Sales/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equity $ 679 $ ( 1 ) $ – $ – $ 46 $ 724 Private equity funds 261 – – – ( 1 ) 260 Total Level 3 assets $ 940 $ ( 1 ) $ – $ – $ 45 $ 984 22 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, 2026 Beginning Balance Net Unrealized Gains/Losses Included In Earnings Purchases/ Issuances Sales/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equity $ 675 $ 36 $ – $ – $ 13 $ 724 Private equity funds 290 – – ( 20 ) ( 10 ) 260 Total Level 3 assets $ 965 $ 36 $ – $ ( 20 ) $ 3 $ 984 Liabilities: Contingent consideration liability (a) $ 2,300 $ – $ – $ ( 2,300 ) $ – $ – Total Level 3 liabilities $ 2,300 $ – $ – $ ( 2,300 ) $ – $ – 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 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 23 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) _________________________________ (a) Settlements for the nine month periods ended September 30, 2026 and 2025 represent aggregate cash and noncash settlement of contingent consideration after the acquisition date. The following tables present, at September 30, 2026 and December 31, 2025, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2026 Investments Redeemable NAV % of NAV Not Redeemable Redemption Frequency Redemption Notice Period Alternative investment funds: Hedge funds $ 41,144 NA (a) 30 - 60 days Other 55 NA (b) < 30 - 90 days Debt funds 3 NA (c) < 30 - 30 days Equity funds 6,719 NA (d) < 30 - 30 days Private equity funds: Equity growth 21,373 100 % (e) NA NA Total $ 69,294 ___________________________________ (a) monthly ( 100 %) (b) daily ( 100 %) (c) daily ( 100 %) (d) daily ( 99 %) and monthly ( 1 %) (e) Distributions from each fund will be received as the underlying investments of the funds are liquidated. December 31, 2025 Investments Redeemable NAV % of NAV Not Redeemable Redemption Frequency Redemption Notice Period Alternative investment funds: Hedge funds $ 45,429 NA (a) 30 - 60 days Other 41 NA (b) < 30 - 90 days Debt funds 3 NA (c) < 30 - 30 days Equity funds 66 NA (d) < 30 - 30 days Private equity funds: Equity growth 48,815 100 % (e) NA NA Total $ 94,354 ___________________________________ (a) monthly ( 100 %) (b) daily ( 100 %) (c) daily ( 100 %) (d) monthly ( 100 %) (e) Distributions from each fund will be received as the underlying investments of the funds are liquidated. 24 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 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, 2026 and December 31, 2025. 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, 2026 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 2,381 $ 232,370 $ 613 $ 143,172 Total return swaps and other 1,002 10,319 28,741 168,980 LFI and other similar deferred compensation arrangements – – 116,338 121,088 Total gross derivatives 3,383 $ 242,689 145,692 $ 433,240 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts ( 127 ) ( 127 ) Total return swaps and other ( 1,002 ) ( 7,098 ) Net derivatives in "other assets", "other liabilities" and "accrued compensation and benefits" 2,254 138,467 Collateral not netted on the condensed consolidated statement of financial condition (a) – ( 21,643 ) $ 2,254 $ 116,824 25 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) December 31, 2025 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 675 $ 209,295 $ 1,090 $ 316,290 Total return swaps and other 250 10,517 38,849 155,693 LFI and other similar deferred compensation arrangements – – 188,642 159,677 Total gross derivatives 925 $ 219,812 228,581 $ 631,660 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts ( 221 ) ( 221 ) Total return swaps and other ( 251 ) ( 9,421 ) Net derivatives in "other assets", "other liabilities" and "accrued compensation and benefits" 453 218,939 Collateral not netted on the condensed consolidated statement of financial condition (a) – ( 29,582 ) $ 453 $ 189,357 __________________________________ (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. 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, 2026 and 2025 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Forward foreign currency exchange rate contracts $ 140 $ 1,670 $ 4,113 $ ( 13,339 ) LFI and other similar deferred compensation arrangements 1,066 ( 4,823 ) ( 10,637 ) ( 20,575 ) Total return swaps and other 2,702 ( 16,990 ) ( 30,725 ) ( 47,977 ) Total $ 3,908 $ ( 20,143 ) $ ( 37,249 ) $ ( 81,891 ) 26 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, 2026 and December 31, 2025, property consisted of the following: Estimated Depreciable Life in Years September 30, 2026 December 31, 2025 Buildings 33 $ 12,520 $ 12,956 Leasehold improvements 3 - 20 232,233 236,294 Furniture and equipment 3 - 10 141,160 142,738 Computer software 3 - 5 55,485 56,168 Construction in progress 8,662 6,084 Total 450,060 454,240 Less - Accumulated depreciation and amortization 298,800 286,235 Property, net $ 151,260 $ 168,005 9. GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets at September 30, 2026 and December 31, 2025 are presented below. September 30, 2026 December 31, 2025 Goodwill $ 439,415 $ 395,262 Other intangible assets (net of accumulated amortization) (a) 12,390 – $ 451,805 $ 395,262 Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2026 and 2025 are as follows: Nine Months Ended September 30, 2026 2025 Financial Advisory Asset Management Total Financial Advisory Asset Management Total Balance, January 1 $ 313,992 $ 81,270 $ 395,262 $ 312,305 $ 81,270 $ 393,575 Purchase and consolidation of business (a) 4,590 40,653 45,243 – – – Sale and deconsolidation of business (b) – ( 359 ) ( 359 ) – – – Foreign currency translation adjustments ( 591 ) ( 140 ) ( 731 ) 1,676 – 1,676 Balance, September 30 $ 317,991 $ 121,424 $ 439,415 $ 313,981 $ 81,270 $ 395,251 ______________________ (a) The Company exercised its option to purchase an additional ownership stake in Elaia, in which the Company had previously held an equity method investment. As a result, the Company obtained a controlling financial interest in Elaia on June 30, 2026, which has been consolidated within its condensed consolidated financial statements as of the acquisition date. This transaction resulted in the Company recognizing goodwill of $ 40,653 and other intangible assets of $ 12,335 (primarily management agreements) at closing. These intangible assets will be amortized over their 27 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) estimated useful lives between 1 and 10 years. Goodwill and intangible assets were also recognized in the Financial Advisory business, on a business combination that closed in the third quarter of 2026 . (b) See Note 1. 10. SENIOR DEBT Lazard Group Senior Notes are comprised of the following as of September 30, 2026 and December 31, 2025: Outstanding as of September 30, 2026 December 31, 2025 Initial Principal Amount Maturity Date Annual Interest Rate Effective Interest Rate Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value 2028 Notes 500,000 9/19/28 4.50 % 4.70 % $ 500,000 $ 1,998 $ 498,002 $ 500,000 $ 2,763 $ 497,237 2029 Notes 500,000 3/11/29 4.375 % 4.56 % 500,000 2,263 497,737 500,000 2,954 497,046 2031 Notes 400,000 3/15/31 6.00 % 6.16 % 400,000 2,926 397,074 400,000 3,419 396,581 2035 Notes 300,000 8/01/35 5.625 % 5.72 % 300,000 2,561 297,439 300,000 2,778 297,222 Total $ 1,700,000 $ 9,748 $ 1,690,252 $ 1,700,000 $ 11,914 $ 1,688,086 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, 2026, 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 of $ 5,911 . The Company’s senior debt is unsecured and is carried at its principal amount outstanding, net of unamortized debt costs. At September 30, 2026 and December 31, 2025, the fair value of such senior debt was approximately $ 1,664,000 and $ 1,737,000 , 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. 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, 2026, 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. 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. 28 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 11. COMMITMENTS AND CONTINGENCIES Leases The Company signed a lease agreement for additional office facilities, with lease commencement anticipated in 2027. The lease term is approximately 10 years and has undiscounted future lease payments of approximately $ 100,000 . Other Commitments See Notes 5 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 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, 2026: Date Repurchase Authorization Expiration July 2024 $ 200,000 December 31, 2026 July 2026 $ 200,000 December 31, 2028 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, including those with employees. 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 2025 (a) 879,334 $ 46.64 2026 (b) 1,945,729 $ 43.68 ______________________ (a) Includes 19,485 shares of common stock which were cancelled by the Company. (b) Shares were cancelled by the Company. 29 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, 2026 and 2025, 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 period ended September 30, 2025, 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, 2026 and 2025 was approximately $ 5,000 and $ 12,800 , respectively. Such shares of common stock were either canceled by the Company or reported at cost, and included in “common stock held in treasury” on the accompanying condensed consolidated statements of financial condition. As of September 30, 2026, a total of $ 224,000 of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program, of which $ 24,000 will expire on December 31, 2026 and $ 200,000 will expire on December 31, 2028 . During the nine month period ended September 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. Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax — The tables below reflect the balances of each component of AOCI at September 30, 2026 and 2025 and activity during the three month and nine month periods then ended: Three Months Ended September 30, 2026 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests (a) Total Lazard AOCI Balance - July 1, 2026 $ ( 116,495 ) $ ( 162,254 ) $ ( 278,749 ) $ 4 $ ( 278,753 ) Activity: Other comprehensive income (loss) before reclassifications, net of tax 2,490 ( 809 ) 1,681 ( 29 ) 1,710 Adjustments for items reclassified to earnings, net of tax – 1,621 1,621 – 1,621 Net other comprehensive income (loss) 2,490 812 3,302 ( 29 ) 3,331 Balance, September 30, 2026 $ ( 114,005 ) $ ( 161,442 ) $ ( 275,447 ) $ ( 25 ) $ ( 275,422 ) ______________________ (a) Includes redeemable noncontrolling interests. 30 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, 2026 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests (a) Total Lazard AOCI Balance - January 1, 2026 $ ( 101,481 ) $ ( 170,024 ) $ ( 271,505 ) $ 4 $ ( 271,509 ) Activity: Other comprehensive income (loss) before reclassifications, net of tax ( 12,524 ) 3,708 ( 8,816 ) ( 29 ) ( 8,787 ) Adjustments for items reclassified to earnings, net of tax – 4,874 4,874 – 4,874 Net other comprehensive income (loss) ( 12,524 ) 8,582 ( 3,942 ) ( 29 ) ( 3,913 ) Balance, September 30, 2026 $ ( 114,005 ) $ ( 161,442 ) $ ( 275,447 ) $ ( 25 ) $ ( 275,422 ) ______________________ (a) Includes redeemable noncontrolling interests. 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 ( 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 ) 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 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 ) 31 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, 2026 and 2025: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Employee benefit plans: Amortization relating to employee benefit plans (a) $ 2,147 $ 2,385 $ 6,447 $ 7,118 Less - related income taxes 526 554 1,573 1,646 Total reclassifications, net of tax $ 1,621 $ 1,831 $ 4,874 $ 5,472 __________________________ (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) profits interest participation rights (see Note 13) and (ii) up to February 13, 2026, interests held in Edgewater’s management vehicles that the Company was deemed to control, but did not own (see Note 1). 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 20). Beginning on June 30, 2026, redeemable noncontrolling interests also includes the portion of Elaia that the Company does not own (see Note 9). Dividends Declared, October 21, 2026 —On October 21, 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 November 13, 2026 , to stockholders of record on November 2, 2026 . 13. INCENTIVE PLANS Share-Based Incentive Plan Awards The aggregate number of shares authorized for issuance under the 2018 Incentive Compensation Plan is 95,000,000 shares, which includes 25,000,000 shares added as a result of an amendment on May 21, 2026. 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”); profits interest participation rights (“PIPRs”); and other share-based awards. 32 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, 2026 and 2025: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Share-based incentive awards: RSUs $ 87,556 $ 74,546 $ 290,846 $ 226,130 PIPRs 15,794 21,577 45,782 54,162 Performance-based restricted stock units – – – ( 44 ) Total $ 103,350 $ 96,123 $ 336,628 $ 280,248 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 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. RSUs granted in 2026 vest ratably over three years , which we expect will be the vesting period for all year-end compensation grants going forward. RSUs granted prior to 2026 vest generally, one-third after two years and the remaining two-thirds after the third year. The grant date fair value of the RSUs, net of an estimated forfeiture rate, is expensed over the requisite service periods under the straight-line attribution method 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, 2026, dividend participation rights required the issuance of an aggregate 656,927 units of RSUs and the associated aggregate charge to “retained earnings” (with a corresponding credit to “additional paid-in-capital”) was $ 29,240 . In connection with RSUs that settled during the nine month period ended September 30, 2026, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 2,671,081 shares of common stock during such nine month period. Accordingly, 4,038,398 shares of common stock held by the Company were delivered during the nine month period ended September 30, 2026. 33 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 RSUs during the nine month period ended September 30, 2026: RSUs Units Weighted Average Grant Date Fair Value Balance, January 1, 2026 17,963,773 $ 44.03 Granted (including 656,927 RSUs relating to dividend participation) 9,337,733 $ 53.02 Forfeited ( 1,017,940 ) $ 49.83 Settled ( 6,709,479 ) $ 39.15 Balance, September 30, 2026 19,574,087 $ 49.70 The weighted-average grant date fair value of RSUs granted in the nine month period ended September 30, 2025 was $ 53.01 . As of September 30, 2026, the total estimated unrecognized compensation expense related to RSUs was $ 432,513 . The Company expects to expense such amounts over a weighted-average period of approximately 2.0 years subsequent to September 30, 2026. 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 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: • Total Shareholder Return PIPRs (“TSR-PIPRs”) are subject to service-based vesting conditions and have a payout based on the Company’s relative three-year total shareholder return versus the S&P 1500. The payout ranges between 0 % and 150 % and is capped at 100 % if absolute TSR is negative. • SP-PIPRs, which are subject to service-based vesting conditions and common stock price milestones and are eligible to vest in three tranches. 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 original grant date, as 34 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) described below. Their aggregate fair value at the original 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. The following is a summary of activity relating to all PIPRs during the nine month period ended September 30, 2026: Ordinary PIPRs TSR-PIPRs/ SP-PIPRs Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance, January 1, 2026 4,084,294 $ 39.31 2,250,000 $ 16.12 Granted 1,239,506 $ 40.52 95,380 $ 39.74 Forfeited – $ – ( 236,996 ) $ 20.07 Settled ( 1,213,015 ) $ 35.94 ( 450,000 ) $ 17.21 Balance, September 30, 2026 4,110,785 $ 40.66 1,658,384 $ 16.61 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, 2025 was $ 44.93 . Compensation expense recognized for 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, 2026, the total estimated unrecognized compensation expense of all profits interest participation rights was $ 43,876 and the Company expects to expense such amount over a weighted-average period of approximately 2.0 years subsequent to September 30, 2026. 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 (which, for awards granted before 2026 and those granted in 2026, are generally similar to the respective vesting periods for RSUs), 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 over the applicable requisite service periods under the straight-line attribution method and is charged to “compensation and benefits” expense within the Company’s condensed consolidated statements of operations. LFI and other 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, 2026: Prepaid Compensation Asset Compensation Liability Balance, January 1, 2026 $ 33,501 $ 188,642 Granted 48,694 48,694 Settled – ( 130,162 ) Amortization and the impact of forfeitures ( 46,640 ) ( 1,298 ) Change in fair value of underlying investments – 10,637 Other ( 131 ) ( 175 ) Balance, September 30, 2026 $ 35,424 $ 116,338 The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 1.8 years subsequent to September 30, 2026. 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, 2026 and 2025: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Amortization and the impact of forfeitures $ 13,517 $ 15,797 $ 45,342 $ 51,194 Change in the fair value of underlying investments ( 1,066 ) 4,823 10,637 20,575 Total $ 12,451 $ 20,620 $ 55,979 $ 71,769 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, 2026 was $ 2,853 and $ 10,007 , respectively and $ 4,360 and $ 12,132 for the three month and nine month periods ended September 30, 2025, respectively. The remaining prepaid compensation asset was $ 6,875 as of September 30, 2026. 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, 2026 and 2025: Pension Plans Three Months Ended September 30, 2026 2025 Components of Net Periodic Benefit Cost: Service cost $ 176 $ 193 Interest cost 5,481 5,791 Expected return on plan assets ( 6,052 ) ( 6,408 ) Amortization of: Prior service cost 326 315 Net actuarial loss 1,821 2,070 Net periodic benefit cost $ 1,752 $ 1,961 Pension Plans Nine Months Ended September 30, 2026 2025 Components of Net Periodic Benefit Cost: Service cost $ 512 $ 560 Interest cost 16,488 16,924 Expected return on plan assets ( 18,174 ) ( 18,757 ) Amortization of: Prior service cost 980 931 Net actuarial loss 5,467 6,187 Net periodic benefit cost $ 5,273 $ 5,845 15. 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 (“UBT”) attributable to its operations apportioned to New York City. The Company recorded income tax provisions of $ 25,082 and $ 37,964 for the three month and nine month periods ended September 30, 2026, respectively, and $ 21,430 and $ 45,840 for the three month and nine month periods ended September 30, 2025, respectively, representing effective tax rates of 45.8 %, 20.9 %, 22.6 %, and 18.9 % 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 in the first quarter 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. 37 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 16. 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 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, 2026 and 2025 are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net income attributable to Lazard $ 29,160 $ 71,247 $ 134,884 $ 186,968 Adjustment for earnings attributable to participating securities ( 1,458 ) ( 1,555 ) ( 6,056 ) ( 4,269 ) Net income attributable to Lazard - basic 27,702 69,692 128,828 182,699 Adjustment for earnings attributable to participating securities – – – – Net income attributable to Lazard - diluted $ 27,702 $ 69,692 $ 128,828 $ 182,699 Weighted average number of shares of common stock outstanding 97,443,876 94,527,248 97,095,942 93,360,222 Weighted average number of shares of common stock issuable on a non-contingent basis 3,586,642 3,585,145 3,520,163 3,607,157 Weighted average number of shares of common stock outstanding - basic 101,030,518 98,112,393 100,616,105 96,967,379 Weighted average number of incremental shares of common stock issuable from share-based incentive compensation (a) 6,254,183 9,889,369 6,521,905 8,946,671 Weighted average number of shares of common stock outstanding - diluted 107,284,701 108,001,762 107,138,010 105,914,050 Net income attributable to Lazard per share of common stock: Basic $ 0.27 $ 0.71 $ 1.28 $ 1.88 Diluted $ 0.26 $ 0.65 $ 1.20 $ 1.72 __________________________________ (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, 2026 of 1,584,921 and 1,916,819 , respectively, and for the three month and nine month periods ended September 30, 2025 of 1,572,289 and 1,985,705 , 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. 17. 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 $ 194,400 and $ 573,632 for the three month and nine month periods ended September 30, 2026, respectively, and $ 171,114 and $ 456,539 for the three month and nine month periods ended September 30, 2025, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $ 32,046 and $ 86,262 remained as receivables at September 30, 2026 and December 31, 2025, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition. 38 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 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 one 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 (benefit) 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 obligation” 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, 2026 and December 31, 2025 was $ 46,814 and $ 57,051 , respectively, and is recorded in “other liabilities” 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. 18. 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, 2026, LFNY’s regulatory net capital was $ 126,431 , which exceeded the minimum requirement by $ 119,281 . LFNY’s aggregate indebtedness to net capital ratio was 0.85 :1 as of September 30, 2026. 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 September 30, 2026, the aggregate regulatory net capital of the U.K. Subsidiaries was $ 137,242 , which exceeded the minimum requirement by $ 60,903 . 39 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) 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, 2026, the consolidated regulatory net capital of CFLF was $ 180,630 , which exceeded the minimum requirement set for regulatory capital levels by $ 70,679 . 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, 2026, the regulatory net capital of the combined European regulated group was $ 202,026 , which exceeded the minimum requirement set for regulatory capital levels by $ 62,511 . 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, 2026, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $ 106,646 , which exceeded the minimum required capital by $ 71,626 . At September 30, 2026, each of these subsidiaries individually was in compliance with its regulatory capital requirements. 19. 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). 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, and other expenses. Other segment items include certain adjustments to calculate adjusted operating income (loss), including: • Noncontrolling interests; • Certain distribution, introducer and management fees paid to third parties and reimbursable deal costs; • Provision for credit losses; 40 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) • 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; and • Gain on sale and deconsolidation of Edgewater. 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. Segment revenue includes revenue from contracts with customers and other revenue. Three Months Ended September 30, 2026 Financial Advisory Asset Management Corporate Total Net Revenue (Loss) - U.S. GAAP Basis $ 469,623 $ 356,950 $ ( 12,402 ) $ 814,171 Adjusted Compensation and Benefits Expense 344,160 178,330 39,940 562,430 Adjusted Non-compensation Expense 56,273 64,634 34,616 155,523 Other Segment Items ( 4,933 ) ( 26,708 ) 22,091 ( 9,550 ) Adjusted Operating Income (Loss) $ 64,257 $ 87,278 $ ( 64,867 ) $ 86,668 Other Segment Disclosures: Interest income (included in net revenue) $ 1,060 $ 2,542 $ 3,366 $ 6,968 Depreciation and amortization of property (included in adjusted non-compensation expense) $ 1,758 $ 1,482 $ 4,158 $ 7,398 Nine Months Ended September 30, 2026 Financial Advisory Asset Management Corporate Total Net Revenue (Loss) - U.S. GAAP Basis $ 1,279,358 $ 1,117,744 $ ( 18,680 ) $ 2,378,422 Adjusted Compensation and Benefits Expense 926,842 524,009 131,734 1,582,585 Adjusted Non-compensation Expense 166,499 200,033 109,386 475,918 Other Segment Items ( 13,180 ) ( 147,356 ) 46,184 ( 114,352 ) Adjusted Operating Income (Loss) $ 172,837 $ 246,346 $ ( 213,616 ) $ 205,567 Other Segment Disclosures: Interest income (included in net revenue) $ 3,703 $ 7,344 $ 10,984 $ 22,031 Depreciation and amortization of property (included in adjusted non-compensation expense) $ 5,366 $ 4,308 $ 12,893 $ 22,567 41 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, 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 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, 2026 2025 2026 2025 Adjusted Operating Income $ 86,668 $ 101,341 $ 205,567 $ 283,590 Adjustments: Operating income related to noncontrolling interests and similar arrangements (a) 414 2,252 8,983 9,835 Interest expense (b) ( 22,025 ) ( 22,634 ) ( 67,183 ) ( 64,698 ) Gain on sale and deconsolidation of Edgewater (c) – – 75,508 – Expenses associated with senior management transition (d) ( 5,550 ) ( 6,148 ) ( 24,983 ) ( 6,148 ) Expenses related to the pending acquisition of Campbell Lutyens (e) ( 4,108 ) – ( 15,316 ) – Amortization of intangible assets (f) ( 601 ) – ( 601 ) – Benefit pursuant to tax receivable agreement obligation ("TRA") (g) – 20,146 – 20,146 Other ( 46 ) ( 27 ) ( 46 ) ( 79 ) Operating Income - U.S. GAAP Basis $ 54,752 $ 94,930 $ 181,929 $ 242,646 __________________________________ 42 LAZARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (UNAUDITED) (dollars in thousands, except for per share data, unless otherwise noted) (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 a non-cash gain on the sale and deconsolidation of the Edgewater management vehicles. (d) Represents expenses associated with the departure of certain executive officers. (e) Represents expenses related to the pending acquisition of Campbell Lutyens (see Note 1). (f) Represents intangible asset amortization expense associated with the acquisition of a business. (g) Represents the effect of the periodic revaluation of the TRA liability. 20. CONSOLIDATED VIEs LFI Consolidated Funds The Company’s consolidated VIEs as of September 30, 2026 and December 31, 2025 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 $ 9,383 and $ 36,527 of LFI owned by Lazard Group as of September 30, 2026 and December 31, 2025, 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, 2026 and December 31, 2025. September 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 2,144 $ 1,028 Customers and other receivables 405 649 Investments 82,389 113,448 Other assets 461 527 Total assets $ 85,399 $ 115,652 LIABILITIES Deposits and other customer payables $ 274 $ 267 Other liabilities 331 479 Total liabilities $ 605 $ 746 43