LAZMEDIUM SIGNALFINANCIAL10-K

Lazard experienced a significant 30% decline in operating cash flow alongside reduced profitability, though this was partially offset by strong balance sheet improvements and increased share buybacks.

The substantial drop in operating cash flow combined with declining net income suggests potential challenges in the firm's core business operations, particularly concerning given the advisory-focused nature of the business. However, the company's increased share buybacks and stronger equity position indicate management confidence and improved capital strength.

Comparing 2026-02-23 vs 2025-02-24View on EDGAR →
FINANCIAL ANALYSIS

Lazard's financial performance shows mixed signals with operating cash flow declining sharply by 30% to $519.3M and net income falling 15% to $236.8M, indicating operational headwinds. However, the balance sheet strengthened considerably with stockholders' equity rising 37% to $873.7M and cash increasing 12% to $1.5B, while the company accelerated share buybacks by 53% to $91M. This combination suggests short-term operational challenges offset by improved capital position and management's confidence in returning cash to shareholders.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+53%
$59.5M$91.0M

Share repurchases increased 53% — management returning capital, signals confidence in intrinsic value.

Stockholders Equity
Balance Sheet
+37.3%
$636.2M$873.7M

Equity base grew 37.3% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Cash Flow
Cash Flow
-30.1%
$742.8M$519.3M

Operating cash flow fell 30.1% — earnings quality concerns; investigate working capital changes and non-cash items.

Capital Expenditure
Cash Flow
-29.8%
$45.5M$31.9M

Capex reduced 29.8% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Net Income
P&L
-15.4%
$279.9M$236.8M

Net income declined 15.4% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-15.2%
$386.5M$327.6M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Cash & Equivalents
Balance Sheet
+12.3%
$1.3B$1.5B

Cash grew 12.3% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2026-02-23
PRIOR — 2025-02-24
ADDED
As of January 30, 2026, there were 111,728,757 shares of the Registrant s common stock outstanding (including 17,820,877 shares held in treasury).
Business Founded in 1848, Lazard is a global financial advisory and asset management firm with operations in North and South America, Europe, the Middle East, Asia, and Australia.
We aim to deliver independent, differentiated advice and solutions grounded in contextual alpha the broad insight and judgment needed to navigate macroeconomic, geopolitical, and other factors that we believe help leaders see beyond what the world sees today.
1 We earned $1 million or more from 346 clients for the year ended December 31, 2025.
As of December 31, 2025, our Financial Advisory segment had 216 managing directors and 1,358 other professionals and support staff.
We also provide other asset management services to our clients, including asset allocation and other investment advisory services, as well as locally customized investment solutions.
We operate through two business segments: our Financial Advisory business included 216 managing directors and 1,358 professionals and support staff, and our Asset Management business included 124 managing directors and 1,160 professionals and support staff.
Our Corporate segment included 22 managing directors and 429 professionals and support staff.
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.
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.
REMOVED
As of January 31, 2025, there were 112,766,091 shares of the Registrant s common stock outstanding (including 22,866,869 shares held by subsidiaries).
Business Founded in 1848, Lazard is one of the world's preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia.
We earned $1 million or more from 344 clients for the year ended December 31, 2024.
As of December 31, 2024, our Financial Advisory segment had 194 managing directors and 1,363 other professionals and support staff.
We offer the following product platform of investment strategies: Global Multi-Regional Local Emerging Markets Equity Global Large Capitalization Small Capitalization Thematic Listed Infrastructure Quantitative Multi-Asset Managed Volatility Real Assets Sustainable Global Ex Global Ex-Australia Global Ex-U.S.
Global Ex-Emerging Markets Thematic Robotics Health Gender Diversity Quantitative Climate Pan-European Large Capitalization Small Capitalization Multi-Capitalization Value Quantitative Eurozone Large Capitalization Small Capitalization Thematic Continental European Small Capitalization Multi Capitalization Eurozone Asian Asia Ex-Japan Quantitative Europe, Australasia and Far East Large Capitalization Small Capitalization Multi-Capitalization Quantitative U.S.
Large Capitalization Small Capitalization Multi-Capitalization Sustainable Quantitative Small Capitalization Quantitative Large Capitalization U.K.
(Large Capitalization) France Large Capitalization Small Capitalization Asia Pacific Australia Japan Emerging Markets Large Capitalization Small Capitalization Quantitative Multi-Asset Managed Volatility Middle East North Africa Middle East North Africa Fixed Income Global Core/Core Plus Total Return Short Duration Convertibles Cash Management Absolute Return Pan-European Core High Yield Cash Management Duration Overlay Convertibles Total Return Green Bonds Eurozone Core/Core Plus Cash Management Corporate Bonds Nordic Scandinavian Short Duration High Yield U.S.
Core/Core Plus High Yield Short Duration Municipals Cash Management Convertibles Emerging Markets Emerging Debt- Core/Local/Blend/Corporate Cash Management Alternative Global Arbitrage/Relative Value Commodities Sustainable Private Infrastructure Private Equity Fund of Funds Real Assets Fund of Funds Illiquid Credit Fund of Funds European Long/Short Equity U.S.
Japan Long/Short Equity Emerging Markets Emerging Debt Total Return Emerging Income 6 In addition to the primary investment strategies listed above, we also provide other asset management services to our clients, including asset allocation and other investment advisory services, as well as locally customized investment solutions.
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