Evercore Inc.

For the second quarter, Evercore reported GAAP net revenues of $990 million, operating income of $147 million and EPS of $2.32 per share. Adjusted net revenues were approximately $1 billion, up 19% year over year; adjusted diluted EPS was $2.91, up 20%; and adjusted operating income was $190 million, up 21%. Adjusted operating margin was 19% in the quarter and 22.7% for the first half, while first-half adjusted net revenues were approximately $2.4 billion, up 56%, adjusted operating income was $544 million, up 99%, and adjusted EPS was $10.48, up 77%. By segment, adjusted advisory fees were about $776 million, up 11%; underwriting fees were $97 million, up 201%; commissions and related revenue were $64 million, up 9%; and adjusted asset management and administration fees were about $25 million, up 15%. On capital return, Evercore returned $150 million in the quarter and $823 million in the first half, including $734 million of share repurchases at an average price of about $325 per share. Cash and investment securities totaled nearly $2.4 billion at June 30, and the adjusted diluted share count was 43.7 million. Management did not provide formal revenue or EPS guidance, but said client engagement remains strong, backlog is near record levels, and it expects continued activity in the latter part of this year and into next.

John Weinberg framed the quarter as evidence of a strong, diversified platform, citing record first-half results and broad strength across advisory, Private Funds Group, equities, underwriting and wealth management. He said the M&A backdrop remains healthy, with large-cap strategic deals leading but improving sponsor and middle-market activity, and argued that AI is creating additional M&A and restructuring conversations across sectors. His tone was upbeat but measured: backlog is near record, yet he repeatedly stressed that revenue timing can be uneven and should be judged over longer periods.

Tim LaLonde highlighted GAAP net revenues of $990 million, GAAP EPS of $2.32, adjusted net revenues of about $1 billion, adjusted EPS of $2.91, and adjusted operating margin of 19% for the quarter. He said adjusted compensation ratio was 63.5%, down about 190 basis points year over year and 50 basis points sequentially, while adjusted non-comp expenses were $175 million and the non-comp ratio was 17.5%, up due to conferences, client events, deal-pitching and execution, technology, hiring costs and occupancy. He said cash and investment securities were nearly $2.4 billion, reiterated a strong cash position, and noted $150 million returned in the quarter and $823 million returned in the first half, with $734 million via buybacks at about $325 per share. He also said the adjusted tax rate was 29.4% and that full-year non-comp growth should be modestly higher, with the annual non-comp ratio expected to be roughly in line with last year.

Analysts pressed on whether Evercore was getting enough non-comp leverage despite rising headcount and senior banker hiring. LaLonde answered that the quarter’s 17.5% non-comp ratio was elevated by investments and episodic costs, but the first-half ratio was 13.5% and the firm is still aiming for a full-year ratio around last year’s 14.2%; he also said some second-quarter costs, including bad debt, legal/audit fees, search and placement, conferences and interns, were unusually concentrated and should ease. Questions also focused on second-half revenue seasonality, with management saying it is not giving revenue guidance but sees strong backlog, robust client dialogue and a healthy business, while noting 3Q and 4Q last year were both record quarters. Other Q&A covered software/AI, Europe, ECM and sponsor activity; management said software has warmed, AI is stimulating M&A and restructuring discussions, Europe is building share after Robey Warshaw and new hires, and sponsor/mid-cap activity is improving though not yet an "open the dams" rally.