PJT Partners Inc. Reports Record Full Year and Fourth Quarter 2025 Results

NEW YORK--( BUSINESS WIRE)--PJT Partners Inc. (the “Company,” “PJT Partners,” “we,” “us" or “our”) (NYSE: PJT) today announced its financial results for the full year and quarter ended December 31, 2025.

Revenues

The following table sets forth revenues for the three months and year ended December 31, 2025 and 2024:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

% Change

2025

2024

% Change

(Dollars in Millions)

Revenues

Advisory Fees

473.9

434.5

1,500.4

1,314.0

Placement Fees

53.2

32.4

181.6

146.3

Interest Income & Other

8.1

10.4

(22

31.7

32.9

Total Revenues

535.2

477.3

1,713.7

1,493.2

Year Ended

The increase in Advisory Revenues was due to increases in strategic advisory and restructuring revenues.

The increase in Placement Revenues was due to increases in fund placement and corporate placement revenues.

The decrease in Interest Income & Other was principally due to lower interest income as a result of lower interest rates partially offset by more favorable foreign currency rates and an increase in the fair market value of certain equity securities received as part of transaction compensation.

Three Months Ended

The increase in Advisory Revenues was due to an increase in restructuring revenues.

The increase in Placement Revenues was principally due to an increase in fund placement revenues.

The decrease in Interest Income & Other was principally due to a decrease in the fair market value of certain equity securities received as part of transaction compensation.

Expenses

The following tables set forth information relating to the Company’s expenses for the three months and year ended December 31, 2025 and 2024:

Year Ended December 31,

2025

2024

GAAP

As Adjusted

GAAP

As Adjusted

(Dollars in Millions)

Expenses

Compensation and Benefits

1,158.0

1,150.0

1,032.1

1,030.0

% of Revenues

67.6

67.1

69.1

69.0

Non-Compensation

212.8

206.9

190.5

184.9

% of Revenues

12.4

12.1

12.8

12.4

Total Expenses

1,370.8

1,356.9

1,222.6

1,214.8

% of Revenues

80.0

79.2

81.9

81.4

Pretax Income

342.9

356.8

270.6

278.3

% of Revenues

20.0

20.8

18.1

18.6

Three Months Ended December 31,

2025

2024

GAAP

As Adjusted

GAAP

As Adjusted

(Dollars in Millions)

Expenses

Compensation and Benefits

356.6

354.5

326.0

323.9

% of Revenues

66.6

66.2

68.3

67.9

Non-Compensation

55.6

54.1

48.4

46.6

% of Revenues

10.4

10.1

9.8

Total Expenses

412.3

408.6

374.4

370.5

% of Revenues

77.0

76.3

78.4

77.6

Pretax Income

122.9

126.6

102.9

106.8

% of Revenues

23.0

23.7

21.6

22.4

Compensation and Benefits Expense

Year Ended

GAAP Compensation and Benefits Expense was $1.16 billion compared with $1.03 billion in the prior year. Adjusted Compensation and Benefits Expense was $1.15 billion compared with $1.03 billion in the prior year. The increase in Compensation and Benefits Expense was driven by higher revenues compared with prior year, partially offset by a lower accrual rate.

Three Months Ended

GAAP Compensation and Benefits Expense was $357 million for the current quarter compared with $326 million in the prior year. Adjusted Compensation and Benefits Expense was $354 million compared with $324 million in the prior year. The increase in Compensation and Benefits Expense was driven by higher revenues compared with prior year, partially offset by a lower accrual rate.

Non-Compensation Expense

Year Ended

GAAP Non-Compensation Expense was $213 million compared with $191 million in the prior year. Adjusted Non-Compensation Expense was $207 million compared with $185 million in the prior year.

The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Occupancy and Related, Travel and Related and Communications and Information Services. Occupancy and Related increased due to the expansion of our global office footprint. Travel and Related increased principally due to increased business related activity. Communications and Information Services increased principally due to continued investments in technology infrastructure, business applications, and higher market data expense.

Three Months Ended

GAAP Non-Compensation Expense was $56 million for the current quarter compared with $48 million in the prior year. Adjusted Non-Compensation Expense was $54 million for the current quarter compared with $47 million in the prior year.

The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Travel and Related, Occupancy and Related and Communications and Information Services. Travel and Related increased principally due to increased business related activity. Occupancy and Related increased due to the expansion of our global office footprint. Communications and Information Services increased principally due to continued investments in technology infrastructure, business applications, and higher market data expense.

Provision for Taxes

As of December 31, 2025, the Company owned 62.0% of PJT Partners Holdings LP. The Company is subject to U.S. federal and state corporate income tax while PJT Partners Holdings LP and its operating subsidiaries are subject to certain state, local and foreign income taxes. Refer to Note 11. “Stockholders’ Equity” in the “Notes to Consolidated Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for further information about the corporate ownership structure. The effective tax rate for GAAP Net Income for the three months ended December 31, 2025 and 2024 was 19.3% and 11.6%, respectively. The effective tax rate for GAAP Net Income for the years ended December 31, 2025 and 2024 was 9.7% and 11.9%, respectively.

The effective tax rate for Adjusted Net Income, If-Converted for the years ended December 31, 2025 and 2024 was 14.1% and 20.6%, respectively. The decrease in the effective tax rate was principally due to a greater tax benefit related to the delivery of vested shares at a value in excess of their amortized cost.

Capital Management and Balance Sheet

As of December 31, 2025, the Company held Cash, Cash equivalents and Short-term investments of $586 million and had no funded debt.

During the year ended December 31, 2025, the Company repurchased 1.3 million shares of Class A common stock in the open market, exchanged 796 thousand Partnership Units for cash and net share settled 346 thousand shares of Class A common stock to satisfy employee tax obligations.

In total, during the year ended December 31, 2025, the Company repurchased 2.4 million shares and share equivalents at an average price of $157.18 per share. During the fourth quarter 2025, the Company repurchased 148 thousand share and share equivalents at an average price of $166.89 per share.

As of December 31, 2025, the Company's remaining repurchase authorization of Class A common stock was $82 million.

The Company intends to exchange an additional 850 thousand Partnership Units for cash at an amount to be determined by the volume-weighted average price per share of the Company’s Class A common stock on February 5, 2026, subject to approval by the Board of Directors.

Dividend

The Board of Directors of the Company has declared a quarterly dividend of $0.25 per share of Class A common stock. The dividend will be paid on March 18, 2026 to Class A common stockholders of record as of March 4, 2026.

Quarterly Investor Call Details

PJT Partners will host a conference call on February 3, 2026 at 8:30 a.m. ET to discuss its full year and fourth quarter 2025 results. The conference call can be accessed via the internet at www.pjtpartners.com or by dialing +1 (833) 316-1983 (U.S. domestic) or +1 (785) 838-9310 (international), passcode PJTP4Q25. For those unable to listen to the live broadcast, a replay will be available following the call at www.pjtpartners.com.

About PJT Partners

PJT Partners is a premier, global, advisory-focused investment bank that was built from the ground up to be different. Our highly experienced, collaborative teams provide independent advice coupled with old-world, high-touch client service. This ethos has allowed us to attract some of the very best talent in the markets in which we operate. We deliver leading advice to many of the world's most consequential companies, effect some of the most transformative transactions and restructurings and raise billions of dollars of capital around the globe to support startups and more established companies. To learn more about PJT Partners, please visit our website at www.pjtpartners.com.

Forward-Looking Statements

Certain material presented herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include certain information concerning future results of operations, business strategies, acquisitions, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “opportunity,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, many of which are outside our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance upon any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (a) changes in governmental regulations and policies; (b) cyber attacks, security vulnerabilities and internet disruptions, including breaches of data security and privacy leaks, data loss and business interruptions; (c) failures of our remote and on-premises computer or communication systems, including as a result of a catastrophic event; (d) the impact of catastrophic events, including business disruptions, pandemics, reductions in employment and an increase in business failures on (1) the U.S. and the global economy and (2) our employees and our ability to provide services to our clients and respond to their needs; (e) the failure of third-party service providers to perform their functions; and (f) volatility in the political and economic environment, including but not limited to inflation, changes to international trade policies, elevated interest rates, potential government shutdowns, and geopolitical or military conflicts.

Any of these factors, as well as such other factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in the Company’s periodic filings with the SEC, accessible on the SEC’s website at www.sec.gov, could cause the Company’s results to differ materially from those expressed in forward-looking statements. There may be other risks and uncertainties that the Company is unable to predict at this time or that are not currently expected to have a material adverse effect on its business. Any such risks could cause the Company’s results to differ materially from those expressed in forward-looking statements.

Non-GAAP Financial Measures

The following represent additional performance measures that management uses in making resource allocation and/or compensation decisions. These measures should not be considered substitutes for, or superior to, financial measures prepared in accordance with GAAP.

Management believes the following non-GAAP measures, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results: Adjusted Pretax Income; Adjusted Net Income, If-Converted, in total and on a per-share basis (referred to as “Adjusted EPS”); Adjusted Compensation and Benefits Expense and Adjusted Non-Compensation Expense. These non-GAAP measures, presented and discussed in this earnings release, remove the impact of: (a) acquisition-related compensation expense; (b) acquisition-related intangible asset amortization; and (c) the net change to the amount the Company has agreed to pay Blackstone Inc. (our "former Parent") related to the net realized cash benefit from certain compensation-related tax deductions. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures and further detail regarding the adjustments are provided in the Appendix.

To help investors understand the effect of the Company’s ownership structure, the Company has presented Adjusted Net Income, If-Converted. This measure illustrates the impact of taxes on Adjusted Pretax Income, assuming all Partnership Units (excluding Partnership Units in prior year periods that had yet to satisfy certain market conditions) have been exchanged for shares of the Company’s Class A common stock, resulting in all of the Company’s income becoming subject to corporate-level tax, considering both current and deferred income tax effects. This tax rate excludes a number of adjustments, including, but not limited to, the tax benefits of acquisition-related compensation expense and amortization expense.

Appendix

GAAP Condensed Consolidated Statements of Operations (unaudited)

Reconciliations of GAAP to Non-GAAP Financial Data (unaudited)

Summary of Shares Outstanding (unaudited)

Footnotes

PJT Partners Inc.

GAAP Condensed Consolidated Statements of Operations (unaudited)

(Dollars in Thousands, Except Share and Per Share Data)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Revenues

Advisory Fees

473,869

434,453

1,500,376

1,314,003

Placement Fees

53,155

32,432

181,561

146,258

Interest Income and Other

8,139

10,396

31,734

32,916

Total Revenues

535,163

477,281

1,713,671

1,493,177

Expenses

Compensation and Benefits

356,648

326,022

1,157,953

1,032,070

Occupancy and Related

15,508

13,466

59,705

50,695

Travel and Related

13,005

10,533

45,992

37,003

Professional Fees

9,982

9,607

36,193

37,619

Communications and Information Services (1)

10,248

8,555

37,626

33,138

Depreciation and Amortization

3,443

3,205

13,343

12,799

Other Expenses (1)

3,420

3,013

19,940

19,284

Total Expenses

412,254

374,401

1,370,752

1,222,608

Income Before Provision for Taxes

122,909

102,880

342,919

270,569

Provision for Taxes

23,729

11,883

33,181

32,096

Net Income

99,180

90,997

309,738

238,473

Net Income Attributable to Non-Controlling Interests

45,820

39,693

129,623

104,080

Net Income Attributable to PJT Partners Inc.

53,360

51,304

180,115

134,393

Net Income Per Share of Class A Common Stock

Basic

2.07

2.02

7.00

5.28

Diluted

1.97

1.83

6.68

4.92

Weighted-Average Shares of Class A Common

Stock Outstanding

Basic

25,781,199

25,401,719

25,723,840

25,454,445

Diluted

28,786,750

44,948,361

28,610,263

44,105,131

PJT Partners Inc.

Reconciliations of GAAP to Non-GAAP Financial Data (unaudited)

(Dollars in Thousands, Except Share and Per Share Data)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

GAAP Compensation and Benefits Expense

356,648

326,022

1,157,953

1,032,070

Acquisition-Related Compensation Expense (2)

(2,154

)

(2,103

)

(7,968

)

(2,103

)

Adjusted Compensation and Benefits Expense

354,494

323,919

1,149,985

1,029,967

GAAP Non-Compensation Expense

55,606

48,379

212,799

190,538

Amortization of Intangible Assets (3)

(1,270

)

(1,437

)

(5,581

)

(5,127

)

Spin-Off-Related Payable (4)

(248

)

(346

)

(314

)

(543

)

Adjusted Non-Compensation Expense

54,088

46,596

206,904

184,868

GAAP Pretax Income

122,909

102,880

342,919

270,569

Acquisition-Related Compensation Expense (2)

2,154

2,103

7,968

2,103

Amortization of Intangible Assets (3)

1,270

1,437

5,581

5,127

Spin-Off-Related Payable (4)

248

346

314

543

Adjusted Pretax Income

126,581

106,766

356,782

278,342

GAAP Provision for Taxes

23,729

11,883

33,181

32,096

Non-GAAP Tax Adjustments

(8,974

)

9,325

17,255

25,143

Adjusted If-Converted Taxes (5)

14,755

21,208

50,436

57,239

GAAP Net Income

99,180

90,997

309,738

238,473

Acquisition-Related Compensation Expense (2)

2,154

2,103

7,968

2,103

Amortization of Intangible Assets (3)

1,270

1,437

5,581

5,127

Spin-Off-Related Payable (4)

248

346

314

543

Add: GAAP Provision for Taxes

23,729

11,883

33,181

32,096

Less: Adjusted If-Converted Taxes (5)

(14,755

)

(21,208

)

(50,436

)

(57,239

)

Adjusted Net Income, If-Converted

111,826

85,558

306,346

221,103

Adjusted Net Income, If-Converted Per Share

2.55

1.90

6.98

5.02

Weighted-Average Shares Outstanding, If-Converted

43,811,665

44,948,160

43,874,851

44,051,384

The following table provides a summary of weighted-average shares outstanding for the three months and year ended December 31, 2025 and 2024 for both basic and diluted shares. The table also provides a reconciliation to If-Converted Shares Outstanding assuming that all Partnership Units (excluding Partnership Units in prior year periods that had yet to satisfy certain market conditions) and unvested PJT Partners Inc. restricted stock units (“RSUs”) were converted to shares of the Company’s Class A common stock:

PJT Partners Inc.

Summary of Shares Outstanding (unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Weighted-Average Shares Outstanding - GAAP

Basic Shares Outstanding, GAAP

25,781,199

25,401,719

25,723,840

25,454,445

Dilutive Impact of Unvested RSUs (6)

3,005,551

3,808,660

2,886,423

2,979,117

Dilutive Impact of Partnership Units (7)

—

15,737,982

—

15,671,569

Diluted Shares Outstanding, GAAP

28,786,750

44,948,361

28,610,263

44,105,131

Weighted-Average Shares Outstanding - If-Converted

Basic Shares Outstanding, GAAP

25,781,199

25,401,719

25,723,840

25,454,445

Unvested RSUs (6)

3,005,551

3,808,660

2,886,423

2,979,117

Partnership Units (8)

15,024,915

15,737,781

15,264,588

15,617,822

If-Converted Shares Outstanding

43,811,665

44,948,160

43,874,851

44,051,384

As of December 31,

2025

2024

Fully-Diluted Shares Outstanding (9)

45,655,469

46,675,815

(1)

Certain balances in prior periods have been reclassified to conform to their current presentation. For the three months and year ended December 31, 2024, this resulted in a reclassification of $3.5 million and $13.1 million, respectively, from Other Expenses to Communications and Information Services. There was no impact on either U.S. GAAP EPS or Adjusted EPS as a result of the reclassification.

(2)

This adjustment adds back to GAAP Pretax Income acquisition-related compensation expense for equity-based awards granted in connection with the acquisition of deNovo Partners on October 1, 2024.

(3)

This adjustment adds back to GAAP Pretax Income amounts for the amortization of intangible assets that are associated with the acquisition of PJT Capital LP on October 1, 2015, the acquisition of CamberView on October 1, 2018, and the acquisition of deNovo Partners on October 1, 2024.

(4)

This adjustment adds back to GAAP Pretax Income the net change to the amount the Company has agreed to pay our former Parent related to the net realized cash benefit from certain compensation-related tax deductions. Such amounts are reflected in Other Expenses in the Condensed Consolidated Statements of Operations.

(5)

Represents taxes on Adjusted Pretax Income, assuming all Partnership Units (excluding the unvested Partnership Units in prior year periods that had yet to satisfy market conditions) have been exchanged for shares of the Company’s Class A common stock, resulting in all of the Company’s income becoming subject to corporate-level tax, considering both current and deferred income tax effects. This tax rate excludes a number of adjustments, including, but not limited to, the tax benefits of acquisition-related compensation expense and amortization expense.

(6)

Represents the dilutive impact under the treasury stock method of unvested RSUs that have a remaining service requirement.

(7)

Represents the dilutive impact, assuming the conversion of vested Partnership Units, unvested Partnership Units with a remaining service requirement, and Partnership Units that achieved certain market conditions as if those conditions were achieved as of the beginning of the reporting period.

(8)

Represents the number of shares assuming the conversion of all Partnership Units, including Partnership Units that achieved certain market conditions as of the date those conditions were achieved.

(9)

Assumes all Partnership Units and unvested RSUs have been converted to shares of the Company’s Class A common stock.