Evercore Inc.EVR
Evercore Inc. Fair Value Disclosure
Fair Value Measurements
ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820") establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily-available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Investments and certain other financial assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories:
Level 1 – Quoted prices are available in active markets for identical assets and liabilities as of the reporting date. The type of investments included in Level 1 include listed equities, listed derivatives and U.S. Treasury securities. As required by ASC 820, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.
Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Periodically, the Company holds investments in corporate bonds, municipal bonds and other debt securities, the estimated fair values of which are based on prices provided by external pricing services. The Company also periodically holds foreign exchange currency forward contracts, the estimated fair value of which is based on foreign currency exchange rates provided by external services.
Level 3 – Pricing inputs are unobservable for the asset or liability and includes situations where there is little, if any, market activity. The inputs into the determination of fair value require significant management judgment or estimation.
The following table presents the categorization of investments and certain other financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:
| December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Debt Securities Carried by EGL | $ | 486,641 | $ | — | $ | — | $ | 486,641 | |||||||||||||||
Other Debt and Equity Securities(1) | 901,266 | — | — | 901,266 | |||||||||||||||||||
| Investment Funds | 175,418 | — | — | 175,418 | |||||||||||||||||||
| Total Assets Measured At Fair Value | $ | 1,563,325 | $ | — | $ | — | $ | 1,563,325 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
Contingent Consideration Liability(2) | $ | — | $ | — | $ | 24,521 | $ | 24,521 | |||||||||||||||
| Total Liabilities Measured at Fair Value | $ | — | $ | — | $ | 24,521 | $ | 24,521 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Debt Securities Carried by EGL | $ | 459,916 | $ | — | $ | — | $ | 459,916 | |||||||||||||||
Other Debt and Equity Securities(1) | 824,069 | — | — | 824,069 | |||||||||||||||||||
| Investment Funds | 178,703 | — | — | 178,703 | |||||||||||||||||||
| Total Assets Measured At Fair Value | $ | 1,462,688 | $ | — | $ | — | $ | 1,462,688 | |||||||||||||||
(1)Includes $23,108 and $9,967 of U.S. Treasury securities classified within Cash and Cash Equivalents on the Consolidated Statements of Financial Condition as of December 31, 2025 and 2024, respectively.
(2)The contingent consideration liability is initially recorded at fair value on the acquisition date and is included within Other Long-term Liabilities on the Company's Consolidated Statement of Financial Condition. The fair value of the contingent consideration liability is remeasured at each reporting period using the probability-weighted expected return method. 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 Other Operating Expenses on the Company's Consolidated Statement of Operations. There was no change in the fair value of this liability from acquisition to December 31, 2025.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment.
The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities, which are not measured at fair value on the Consolidated Statements of Financial Condition, are listed in the tables below.
| December 31, 2025 | |||||||||||||||||||||||||||||
| Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||
| Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||||||||
Cash and Cash Equivalents(1) | $ | 1,402,912 | $ | 1,402,912 | $ | — | $ | — | $ | 1,402,912 | |||||||||||||||||||
| Certificates of Deposit | 40,421 | — | 40,421 | — | 40,421 | ||||||||||||||||||||||||
Receivables(2) | 685,665 | — | 680,998 | — | 680,998 | ||||||||||||||||||||||||
Contract Assets(3) | 175,349 | — | 173,097 | — | 173,097 | ||||||||||||||||||||||||
| Closely-held Equity Securities | 1,673 | — | — | 1,673 | 1,673 | ||||||||||||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||||||||
| Accounts Payable and Accrued Expenses | $ | 44,562 | $ | — | $ | 44,562 | $ | — | $ | 44,562 | |||||||||||||||||||
| Payable to Employees and Related Parties | 181,591 | — | 181,591 | — | 181,591 | ||||||||||||||||||||||||
Notes Payable(4) | 588,224 | — | 575,879 | — | 575,879 | ||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||
| Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||||||||
Cash and Cash Equivalents(1) | $ | 863,078 | $ | 863,078 | $ | — | $ | — | $ | 863,078 | |||||||||||||||||||
| Certificates of Deposit | 66,660 | — | 66,660 | — | 66,660 | ||||||||||||||||||||||||
Receivables(2) | 522,816 | — | 518,485 | — | 518,485 | ||||||||||||||||||||||||
Contract Assets(3) | 76,856 | — | 76,184 | — | 76,184 | ||||||||||||||||||||||||
| Closely-held Equity Securities | 625 | — | — | 625 | 625 | ||||||||||||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||||||||
| Accounts Payable and Accrued Expenses | $ | 29,041 | $ | — | $ | 29,041 | $ | — | $ | 29,041 | |||||||||||||||||||
| Payable to Employees and Related Parties | 48,494 | — | 48,494 | — | 48,494 | ||||||||||||||||||||||||
Notes Payable(4) | 373,895 | — | 356,531 | — | 356,531 | ||||||||||||||||||||||||
(1)Excludes $23,108 and $9,967 of U.S. Treasury securities classified within Cash and Cash Equivalents on the Consolidated Statements of Financial Condition as of December 31, 2025 and 2024, respectively.
(2)Includes Accounts Receivable, as well as long-term receivables, which are included in Other Assets on the Consolidated Statements of Financial Condition.
(3)Includes current and long-term contract assets included in Other Current Assets and Other Assets on the Consolidated Statements of Financial Condition.
(4)Includes current and long-term Notes Payable included in Current Portion of Notes Payable and Notes Payable on the Consolidated Statements of Financial Condition.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 24, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.