Executive Summary

Q3 2025 was a record third quarter: net revenues $1.04B GAAP (+41% y/y) and $1.05B adjusted (+42% y/y); adjusted EPS $3.48 (+71% y/y). Operating margin expanded to 20.8% GAAP and 21.8% adjusted, with comp ratio improving to 65.5% GAAP and 65.0% adjusted .
Results beat S&P Global consensus: revenue $1.039B vs $0.965B* and adjusted EPS $3.48 vs $3.30*; beats driven by +49% y/y advisory fees, record Europe, record third quarters in PCA and PFG, and best quarter for Evercore ISI since 4Q16 .
Management expects Q4 seasonality to be “less pronounced” given strong YTD and potential government shutdown timing effects; full‑year comp ratio expected generally in line with current levels; non‑comp expenses to be up y/y in line with 9M trend .
Strategic catalysts: Oct 1 closing of Robey Warshaw to strengthen Europe; backlog “as high as it’s ever been” with continued activity in October, positioning 4Q25/2026 well .
Capital return: Quarterly dividend maintained at $0.84; $624M returned YTD via buybacks/dividends; repurchases continued into early Q4 and more than offset RSU dilution .

What Went Well and What Went Wrong

What Went Well

Record revenue and operating leverage: Net revenues $1.04B GAAP/$1.05B adjusted (+41%/+42% y/y) with adjusted operating margin up ~360 bps to 21.8% and comp ratio down ~100 bps y/y to 65.0% .
Broad-based advisory strength: Advisory fees +49% y/y to $884M (record 3Q), supported by large transactions and record Europe; non‑M&A represented ~45% of revenue in Q3 (50% LTM) with record 3Q in PCA and PFG; Evercore ISI had its best quarter since 4Q16 .
Strong tone and backlog: “Backlogs continued to increase… as high as they’ve ever been… early stages of an investment banking recovery,” and Robey Warshaw enhances European capabilities (closed Oct 1) .

Selected quotes:

CEO: “We generated over $1 billion in adjusted net revenues… best third quarter ever… backlogs continued to increase… early stages of an investment banking recovery.”
CFO: “Adjusted operating margin was 21.8%, up from 18.2%… adjusted EPS of $3.48 (+71% y/y).”
CEO: “We successfully closed the Robey Warshaw transaction on October 1st… significantly enhances our ability to serve clients across the regions.”

What Went Wrong

Capital markets softness vs M&A: Underwriting fees -1% y/y to $44M in Q3 and lower deal counts; total underwriting transactions fell to 14 (vs 17) with 13 as bookrunner (vs 15) .
Elevated expense growth amid investment: Adjusted non-comp expenses +18% y/y to $139M (tech/licenses, travel, occupancy) even as ratio fell to 13.2%; management expects non‑comp to be up y/y for full year .
Comp ratio still mid-60s; no quick return to low‑60s: Management reiterated gradual progress and indicated “there will not be a quick return” to low‑60s comp ratios given record hiring; full‑year comp ratio seen in line with current levels .

Financial Results

Headline Metrics vs Prior Periods and Prior Year

Metric	Q3 2024	Q2 2025	Q3 2025
Net Revenues ($ mm, GAAP)	$734.2	$833.8	$1,038.9
Net Revenues ($ mm, Adjusted)	$739.5	$838.9	$1,047.1
Diluted EPS (GAAP)	$1.86	$2.36	$3.41
Diluted EPS (Adjusted)	$2.04	$2.42	$3.48
Operating Margin (GAAP)	16.6%	18.0%	20.8%
Operating Margin (Adjusted)	18.2%	18.7%	21.8%
Compensation Ratio (GAAP)	66.5%	65.8%	65.5%
Compensation Ratio (Adjusted)	66.0%	65.4%	65.0%

Notes on non‑GAAP: Adjusted results exclude acquisition/transition costs related to Robey Warshaw ($3.5M in Q3) and other specified items; adjusted EPS/dilution reflect assumed exchange of LP units/RSUs .

Revenue Composition (GAAP)

Revenue ($ mm)	Q3 2024	Q3 2025
Advisory Fees	$592.980	$883.712
Underwriting Fees	$44.132	$43.730
Commissions & Related	$54.559	$62.816
Asset Mgmt & Admin Fees	$20.555	$22.477
Other Revenue, net	$21.996	$26.149
Net Revenues	$734.222	$1,038.884

Segment Results (GAAP)

Segment Net Revenues ($ mm)	Q3 2024	Q3 2025
Investment Banking & Equities	$712.775	$1,016.192
Investment Management	$21.447	$22.692

KPIs

KPI	Q3 2024	Q3 2025
Total fees from advisory & underwriting transactions	259	268
Fees ≥ $1mm (count)	112	137
Underwriting transactions (total)	17	14
Underwriting transactions as bookrunner	15	13
Assets under management (AUM, $ mm)	$13,887	$15,351

Results vs. S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($ mm)	964.9*	1,038.9	+7.7%
Adjusted EPS ($)	3.30*	3.48	+5.5%
EPS (# of est.)	8*	—	—
Revenue (# of est.)	4*	—	—

Values marked with * retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Compensation Ratio	FY 2025	n/a	“Expect full‑year ratio to be generally in line with current levels”	Maintained (qualitative)
Non‑Comp Expenses	FY 2025	n/a	Full‑year non‑comp expenses to be up y/y, generally consistent with 9M trend	Maintained (qualitative)
Advisory Seasonality	Q4 2025	n/a	Seasonality “likely to be less pronounced” vs prior years	Updated
Dividend	Quarterly	$0.84 declared in Q2	$0.84 declared for payment Dec 12, 2025	Maintained
Share Repurchases	FY 2025	n/a	Repurchases continued into early Q4; more than fully offset RSU dilution; also offset initial Robey Warshaw consideration shares	Maintained (activity update)

No quantitative revenue/EPS guidance provided.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
M&A cycle / Backlog	Q1/Q2: Momentum; record 1H advisory; broadening platform	Backlog “as high as it’s ever been”; early-stage recovery; strong October activity	Improving
Non‑M&A mix (PCA/PFG, Restructuring, ISI)	Q1: PCA best first quarter on record; ISI strongest since 1Q20 • Q2: PCA record Q2/1H	~45% non‑M&A in Q3; PCA/PFG record 3Q; ISI best quarter since 4Q16	Strong, stable
Europe / Robey Warshaw	Q2: Announced acquisition; building France/Italy/Scandinavia	Record Europe quarter; Robey Warshaw closed Oct 1; significant white space ahead	Accelerating
Compensation strategy	Q1/Q2: Lower comp ratio vs PY in results	No quick return to low‑60s; aim gradual progress; FY ratio ~current	Gradual leverage
ECM/IPO/Convertibles	Q2: Underwriting +4% y/y, activity improving	IPOs resurged; strong convertibles; underwriting +36% seq though -1% y/y	Recovering
Regulatory / Gov’t shutdown	n/a	Q4 seasonality less pronounced; shutdown could slow timing but not derail deals if brief	Watch item

Management Commentary

CEO (prepared remarks): “We generated over $1 billion in adjusted net revenues… second best quarter in our history… backlogs continued to increase… early stages of an investment banking recovery.”
CEO on Europe: “Our European advisory business delivered its best quarter on record… Robey Warshaw… significantly enhances our ability to serve clients across the regions.”
CFO: “Adjusted operating margin was 21.8%, up from 18.2%... Adjusted EPS of $3.48 increased 71% y/y.”
CFO on expenses: “Adjusted non‑comp expenses were $139M (13.2% of net revenue)… expect full‑year non‑comp to be up y/y… investing in technology, occupancy and capacity.”
Leadership in release: “We achieved record third quarter results… reinforcing the strength of our growing, diversified platform.”

Q&A Highlights

Comp ratio trajectory: Management emphasized gradual progress rather than a “quick return” to low‑60s comp; expects FY comp ratio similar to Q3 levels; focus remains on long‑term value creation and talent investments .
Deal environment breadth: Activity broadening from large to mid‑sized deals across sectors; engagement with boards high; backlogs “as high as they’ve ever been” .
Government shutdown/regulatory: A brief shutdown could slow timing (SEC/DOJ staffing) for ECM/M&A but is not expected to derail deals; regulatory environment seen “more benign” with deals progressing well .
ECM outlook: Strengthening pipeline into Q4; investor appetite for IPOs rising; potential timing impacts if shutdown persists but expectation that backlog will clear .
Europe expansion: Record Q3 in Europe with broad sector performance; significant “white space” for coverage as footprint expands beyond UK .

Estimates Context

Q3 2025 S&P Global consensus vs actuals: Revenue $964.9M* vs $1,038.9M (beat) and adjusted EPS $3.30* vs $3.48 (beat). Number of estimates: EPS (8), revenue (4)*. Surprises driven by +49% y/y advisory fees, record Europe, strong PCA/PFG, and robust ISI performance .
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Beat and raise narrative without formal guidance: Clear beat on revenue and adjusted EPS versus S&P Global consensus on broad-based advisory strength and non‑M&A engines; FY comp ratio seen ~current levels supports margin stability .
Operating leverage emerging: Adjusted operating margin +360 bps y/y to 21.8% amid higher revenues; non‑comp ratio fell to 13.2% despite investment in tech/real estate, suggesting improving scalability .
Europe as an incremental growth driver: Record European quarter and Robey Warshaw close should support share gains and fee velocity into 2026 .
Pipeline supports near‑term momentum: Backlog at peak levels; activity remained strong in October; IPO/convertible windows re‑opening offsetting softer y/y underwriting fees .
Watch the macro/policy tape: A prolonged U.S. government shutdown is a timing risk for ECM/M&A approvals, but management does not foresee permanent impacts if resolved promptly .
Capital return remains active: $0.84 dividend maintained; $624M returned YTD; buybacks continuing into Q4 and more than fully offseting RSU dilution .
Medium‑term: Comp ratio likely to improve gradually, not rapidly; continued hiring and platform expansion should sustain share gains as the M&A recovery broadens .

Appendix: Additional Data Points

GAAP net revenues $1,038.9M; adjusted net revenues $1,047.1M; GAAP diluted EPS $3.41; adjusted diluted EPS $3.48 .
Advisory fees +49% y/y to $883.7M; commissions +15% y/y to $62.8M; AUM $15.35B (+11% y/y) .
Liquidity: Cash/cash equivalents $851.9M; investments $1.6B; current assets exceed current liabilities by $2.0B; notes payable $588.3M (Sep 30) .
Dividend: $0.84 payable Dec 12, 2025 (record date Nov 28) .

Evercore Inc. (EVR)·Q3 2025 Earnings Summary