Lazard Reports $60.4 Million Net Income in Q1 2025, Revenue Declines 15%

Lazard, Inc. reported a net income of $60.4 million for the first quarter of 2025, a significant increase from $35.8 million in the same period last year. The company's total revenue for the quarter was $669.2 million, down 15% from $785.5 million in the first quarter of 2024. The decline in revenue was primarily driven by a 20% decrease in investment banking and advisory fees, which fell to $360.4 million from $453.0 million, and a 4% drop in asset management fees, which decreased to $264.6 million from $276.8 million. Despite the revenue decline, Lazard's operating income remained stable at $54.6 million, slightly up from $54.6 million in the previous year.

In terms of operational metrics, Lazard's total assets decreased to $4.23 billion as of March 31, 2025, down from $4.79 billion at the end of 2024. The company's cash and cash equivalents also saw a decline, falling to $908.6 million from $1.31 billion. The decrease in total assets and cash was attributed to lower receivables and investments, which were impacted by market conditions. Lazard's employee headcount remained relatively stable, with a total of 3,253 employees as of March 31, 2025, compared to 3,263 at the end of 2024.

Strategically, Lazard has continued to focus on its core business segments: Financial Advisory and Asset Management. The Financial Advisory segment reported net revenue of $367.4 million, down from $453.5 million, while the Asset Management segment generated $288.1 million, a slight decrease from $295.5 million. The company has also been actively managing its expenses, with total operating expenses decreasing to $593.4 million from $710.2 million, primarily due to a reduction in compensation and benefits expenses, which fell by 22% to $430.3 million.

Looking ahead, Lazard's management expressed cautious optimism regarding future performance, noting that while the current economic environment presents challenges, particularly in M&A activity, there are opportunities for growth in restructuring services. The company is also focused on maintaining its liquidity, with approximately $909 million in cash and cash equivalents, and has $209 million in unused lines of credit available. Lazard's ongoing commitment to strategic investments and cost management is expected to support its operational resilience in the face of market volatility.