Lazard, Inc.LAZ
Lazard, Inc. Segments Disclosure
SEGMENT INFORMATION
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The Company’s reportable segments offer different products and services and are managed separately, as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed by the Chief Operating Decision Maker (the “CODM”) to determine the allocation of resources and to assess its performance. The Company’s reportable segments are Financial Advisory, Asset Management, and Corporate, which are described in Note 1.
The Company’s CODM is the Company’s Chief Executive Officer. The CODM assesses the segments’ performance by each segment’s adjusted operating income (loss). Adjusted operating income (loss) is also used by the CODM to allocate compensation and non-compensation related resources to each segment. For the years ended December 31, 2025, 2024 and 2023, no individual client constituted more than 10% of the net revenue of any of the Company’s reportable segments.
The table below provides selected financial information about the Company’s segments, including adjusted compensation and benefits expense and adjusted non-compensation expense (both of which are significant expense categories on which the CODM is regularly provided information), other segment items, and adjusted operating income (loss).
Adjusted compensation and benefits expense and adjusted non-compensation expense include costs directly incurred by each segment, with certain adjustments. Adjusted non-compensation expense includes expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services.
Other segment items include certain adjustments to calculate adjusted operating income (loss), including:
•Noncontrolling interests;
•Certain distribution, introducer and management fees paid to third parties and reimbursable deal costs;
•Provision for credit losses;
•Changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements;
•Interest expense, excluding interest expense incurred by LFB;
•Asset impairment charges;
•Losses associated with the closing of certain offices as part of the cost-saving initiatives, representing the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss and transactions related to foreign currency exchange; and
•The gain on sale of an owned office building.
Inter-segment revenues are not material for all periods presented.
The CODM does not regularly receive asset information by segment and does not use segment asset information to assess performance or allocate resources.
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Financial Advisory | Asset Management | Corporate | Total | ||||||||||||||||||||
Net Revenue (Loss) - U.S. GAAP Basis | $ | 1,834,303 | $ | 1,274,726 | $ | (10,182) | $ | 3,098,847 | |||||||||||||||
| Adjusted Compensation and Benefits Expense | 1,171,533 | 640,804 | 172,518 | 1,984,855 | |||||||||||||||||||
| Adjusted Non-compensation Expense | 212,025 | 255,673 | 145,110 | 612,808 | |||||||||||||||||||
| Other Segment Items | (9,494) | (108,963) | 49,423 | (69,034) | |||||||||||||||||||
| Adjusted Operating Income (Loss) | $ | 441,251 | $ | 269,286 | $ | (278,387) | $ | 432,150 | |||||||||||||||
| Other Segment Disclosures: | |||||||||||||||||||||||
| Interest income (included in net revenue) | $ | 5,209 | $ | 8,909 | $ | 24,374 | $ | 38,492 | |||||||||||||||
| Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 7,905 | $ | 6,047 | $ | 20,181 | $ | 34,133 | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Financial Advisory | Asset Management | Corporate | Total | ||||||||||||||||||||
| Net Revenue - U.S. GAAP Basis | $ | 1,756,183 | $ | 1,186,977 | $ | 108,677 | $ | 3,051,837 | |||||||||||||||
| Adjusted Compensation and Benefits Expense | 1,132,017 | 603,333 | 168,113 | 1,903,463 | |||||||||||||||||||
| Adjusted Non-compensation Expense | 202,007 | 229,960 | 143,179 | 575,146 | |||||||||||||||||||
| Other Segment Items | (25,134) | (87,103) | (50,046) | (162,283) | |||||||||||||||||||
| Adjusted Operating Income (Loss) | $ | 397,025 | $ | 266,581 | $ | (252,661) | $ | 410,945 | |||||||||||||||
| Other Segment Disclosures: | |||||||||||||||||||||||
| Interest income (included in net revenue) | $ | 4,730 | $ | 14,457 | $ | 34,417 | $ | 53,604 | |||||||||||||||
| Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 8,398 | $ | 5,704 | $ | 22,129 | $ | 36,231 | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Financial Advisory | Asset Management | Corporate | Total | ||||||||||||||||||||
| Net Revenue (Loss) - U.S. GAAP Basis | $ | 1,385,357 | $ | 1,151,496 | $ | (21,364) | $ | 2,515,489 | |||||||||||||||
| Adjusted Compensation and Benefits Expense | 1,014,352 | 545,308 | 142,877 | 1,702,537 | |||||||||||||||||||
| Adjusted Non-compensation Expense | 193,661 | 218,903 | 158,940 | 571,504 | |||||||||||||||||||
| Other Segment Items | (28,522) | (83,937) | 36,589 | (75,870) | |||||||||||||||||||
| Adjusted Operating Income (Loss) | $ | 148,822 | $ | 303,348 | $ | (286,592) | $ | 165,578 | |||||||||||||||
| Other Segment Disclosures: | |||||||||||||||||||||||
| Interest income (included in net revenue) | $ | 1,561 | $ | 19,752 | $ | 20,709 | $ | 42,022 | |||||||||||||||
| Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 8,458 | $ | 6,448 | $ | 27,860 | $ | 42,766 | |||||||||||||||
The table below provides a reconciliation of the Company's consolidated adjusted operating income to the Company’s consolidated U.S. GAAP operating income (loss).
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Adjusted Operating Income | $ | 432,150 | $ | 410,945 | $ | 165,578 | |||||||||||
| Adjustments: | |||||||||||||||||
Operating income related to noncontrolling interests and similar arrangements (a) | 14,184 | 6,787 | 18,169 | ||||||||||||||
| Interest expense (b) | (87,282) | (87,795) | (77,457) | ||||||||||||||
| Amortization and other acquisition-related costs | (105) | (242) | (334) | ||||||||||||||
| Expenses associated with senior management transition (c) | (50,124) | – | (10,674) | ||||||||||||||
| Asset impairment charges | – | – | (19,129) | ||||||||||||||
| Losses associated with cost-saving initiatives (d) | – | (587) | (4,878) | ||||||||||||||
| Expenses associated with cost-saving initiatives | – | (48,142) | (195,126) | ||||||||||||||
| Gain on sale of property (e) | – | 114,271 | – | ||||||||||||||
| Expenses associated with sale of property (f) | – | (17,002) | – | ||||||||||||||
| Benefit pursuant to tax receivable obligation (g) | 18,775 | 8,237 | 43,894 | ||||||||||||||
| Operating Income (Loss) - U.S. GAAP Basis | $ | 327,598 | $ | 386,472 | $ | (79,957) | |||||||||||
(a)Revenue and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.
(b)Interest expense (excluding interest expense incurred by LFB) is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.
(c)Represents expenses associated with the departure of certain executive officers.
(d)Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, primarily consisting of the reclassification of currency translation adjustments to earnings from accumulated other comprehensive losses in the years ended December 31, 2024 and 2023 and transactions related to foreign currency exchange in the year ended December 31, 2023.
(e)Represents gain on the sale of an owned office building.
(f)Represents estimated statutory profit-sharing expenses associated with the sale of an owned office building.
(g)Represents the effect of the periodic revaluation of the TRA liability.
Geographic Information
Due to the highly integrated nature of international financial markets, the Company manages its business based on the profitability of the enterprise as a whole, not by geographic region. The Company’s revenue and total assets are generally allocated based on the country or domicile of the legal entity providing the service.
The following table sets forth the net revenue from, and total assets for, the Company and its consolidated subsidiaries by geographic region allocated on the basis described above. In the table below, Americas principally includes the U.S., EMEA principally includes the U.K. and France, and Asia Pacific principally includes Australia.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Net Revenue - U.S. GAAP basis: | |||||||||||||||||
| Americas | $ | 1,622,574 | $ | 1,536,298 | $ | 1,193,056 | |||||||||||
| EMEA | 1,295,593 | 1,360,784 | 1,162,052 | ||||||||||||||
| Asia Pacific | 180,680 | 154,755 | 160,381 | ||||||||||||||
| Total | $ | 3,098,847 | $ | 3,051,837 | $ | 2,515,489 | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Total Assets: | |||||||||||
| Americas | $ | 2,960,784 | $ | 2,908,489 | |||||||
| EMEA | 1,846,238 | 1,757,275 | |||||||||
| Asia Pacific | 133,712 | 128,229 | |||||||||
| Total | $ | 4,940,734 | $ | 4,793,993 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.