PJT Partners Inc. Reports Record Third Quarter and Nine Months 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 third quarter and nine months ended September 30, 2025.

Revenues

The following table sets forth revenues for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

% Change

2025

2024

% Change

(Dollars in Millions)

Revenues

Advisory Fees

389.8

283.8

37%

1,026.5

879.6

17%

Placement Fees

49.2

32.5

51%

128.4

113.8

13%

Interest Income & Other

8.1

10.1

(19%)

23.6

22.5

Total Revenues

447.1

326.3

37%

1,178.5

1,015.9

16%

Three Months Ended

The increase in Advisory Revenues was principally due to an increase in strategic advisory revenues.

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

Nine Months Ended

The increase in Advisory Revenues was principally due to an increase in strategic advisory revenues.

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

Expenses

The following tables set forth information relating to the Company’s expenses for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30,

2025

2024

GAAP

As Adjusted

GAAP

As Adjusted

(Dollars in Millions)

Expenses

Compensation and Benefits

303.3

301.7

226.8

% of Revenues

67.8

67.5

69.5

Non-Compensation

52.8

51.4

50.1

48.9

% of Revenues

11.8

11.5

15.4

15.0

Total Expenses

356.1

353.1

276.9

275.7

% of Revenues

79.7

79.0

84.9

84.5

Pretax Income

91.0

94.0

49.4

50.6

% of Revenues

20.3

21.0

15.1

15.5

Nine Months Ended September 30,

2025

2024

GAAP

As Adjusted

GAAP

As Adjusted

(Dollars in Millions)

Expenses

Compensation and Benefits

801.3

795.5

706.0

% of Revenues

68.0

67.5

69.5

Non-Compensation

157.2

152.8

142.2

138.3

% of Revenues

13.3

13.0

14.0

13.6

Total Expenses

958.5

948.3

848.2

844.3

% of Revenues

81.3

80.5

83.5

83.1

Pretax Income

220.0

230.2

167.7

171.6

% of Revenues

18.7

19.5

16.5

16.9

Compensation and Benefits Expense

Three Months Ended

GAAP Compensation and Benefits Expense was $303 million for the current quarter compared with $227 million in the prior year. Adjusted Compensation and Benefits Expense was $302 million compared with $227 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.

Nine Months Ended

GAAP Compensation and Benefits Expense was $801 million compared with $706 million in the prior year. Adjusted Compensation and Benefits Expense was $795 million compared with $706 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

Three Months Ended

GAAP Non-Compensation Expense was $53 million for the current quarter compared with $50 million in the prior year. Adjusted Non-Compensation Expense was $51 million for the current quarter compared with $49 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 and Travel and Related expenses partially offset by a decrease in Other Expenses. Occupancy and Related increased due to the expansion of our global office footprint. Travel and Related increased principally due to increased business development activity and higher cost of travel. Other Expenses decreased principally due to the absence of legal reserves.

Nine Months Ended

GAAP Non-Compensation Expense was $157 million compared with $142 million in the prior year. Adjusted Non-Compensation Expense was $153 million compared with $138 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 development activity and higher cost of travel. Communications and Information Services increased principally due to continued investments in technology infrastructure and higher market data expense.

Provision for Taxes

As of September 30, 2025, the Company owned 61.8% 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 September 30, 2025 and 2024 was 17.6% and 16.8%, respectively. The effective tax rate for GAAP Net Income for the nine months ended September 30, 2025 and 2024 was 4.3% and 12.1%, respectively.

The effective tax rate for Adjusted Net Income, If-Converted for the nine months ended September 30, 2025 was 15.5% compared with 20.6% for full year 2024.

Capital Management and Balance Sheet

As of September 30, 2025, the Company held Cash, Cash equivalents and Short-term investments of $521 million and had no funded debt.

During the third quarter 2025, the Company exchanged 186 thousand Partnership Units for cash at a volume-weighted average price of $178.22 per share. During the nine months ended September 30, 2025, the Company repurchased 2.3 million shares and share equivalents at a volume-weighted average price of $156.55 per share.

As of September 30, 2025, the Company's remaining repurchase authorization was $87 million.

Subject to approval by the Board of Directors, the Company intends to exchange 115 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 November 6, 2025.

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 December 17, 2025 to Class A common stockholders of record as of December 3, 2025.

Quarterly Investor Call Details

PJT Partners will host a conference call on November 4, 2025 at 8:30 a.m. ET to discuss its third quarter and nine months ended September 30, 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 PJTP3Q25. 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 computer systems or communication systems, including as a result of a catastrophic event and the use of remote environments; (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 as a result of inflation, changes to international trade policies, elevated interest rates, and geopolitical and 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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues

Advisory Fees

389,799

283,787

1,026,507

879,550

Placement Fees

49,156

32,464

128,406

113,826

Interest Income and Other

8,138

10,071

23,595

22,520

Total Revenues

447,093

326,322

1,178,508

1,015,896

Expenses

Compensation and Benefits

303,329

226,794

801,305

706,048

Occupancy and Related

15,424

12,961

44,197

37,229

Travel and Related

10,379

8,314

32,987

26,470

Professional Fees

9,775

10,883

26,211

28,012

Communications and Information Services (1)

8,502

8,146

27,378

24,583

Depreciation and Amortization

3,406

2,984

9,900

9,594

Other Expenses (1)

5,325

6,853

16,520

16,271

Total Expenses

356,140

276,935

958,498

848,207

Income Before Provision for Taxes

90,953

49,387

220,010

167,689

Provision for Taxes

15,996

8,314

9,452

20,213

Net Income

74,957

41,073

210,558

147,476

Net Income Attributable to Non-Controlling Interests

35,118

18,923

83,803

64,387

Net Income Attributable to PJT Partners Inc.

39,839

22,150

126,755

83,089

Net Income Per Share of Class A Common Stock

Basic

1.55

0.87

4.93

3.26

Diluted

1.47

0.79

4.70

3.08

Weighted-Average Shares of Class A Common

Stock Outstanding

Basic

25,749,143

25,372,621

25,704,472

25,479,195

Diluted

28,633,155

44,642,704

43,896,543

43,831,639

PJT Partners Inc.

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

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

GAAP Compensation and Benefits Expense

303,329

226,794

801,305

706,048

Acquisition-Related Compensation Expense (2)

(1,598

)

—

(5,814

)

—

Adjusted Compensation and Benefits Expense

301,731

226,794

795,491

706,048

GAAP Non-Compensation Expense

52,811

50,141

157,193

142,159

Amortization of Intangible Assets (3)

(1,437

)

(1,230

)

(4,311

)

(3,690

)

Spin-Off-Related Payable (4)

(18

)

(16

)

(66

)

(197

)

Adjusted Non-Compensation Expense

51,356

48,895

152,816

138,272

GAAP Pretax Income

90,953

49,387

220,010

167,689

Acquisition-Related Compensation Expense (2)

1,598

—

5,814

—

Amortization of Intangible Assets (3)

1,437

1,230

4,311

3,690

Spin-Off-Related Payable (4)

197

Adjusted Pretax Income

94,006

50,633

230,201

171,576

GAAP Provision for Taxes

15,996

8,314

9,452

20,213

Non-GAAP Tax Adjustments

(2,787

)

1,110

26,229

15,818

Adjusted If-Converted Taxes (5)

13,209

9,424

35,681

36,031

GAAP Net Income

74,957

41,073

210,558

147,476

Acquisition-Related Compensation Expense (2)

1,598

—

5,814

—

Amortization of Intangible Assets (3)

1,437

1,230

4,311

3,690

Spin-Off-Related Payable (4)

197

Add: GAAP Provision for Taxes

15,996

8,314

9,452

20,213

Less: Adjusted If-Converted Taxes (5)

(13,209

)

(9,424

)

(35,681

)

(36,031

)

Adjusted Net Income, If-Converted

80,797

41,209

194,520

135,545

Adjusted Net Income, If-Converted Per Share

1.85

0.93

4.43

3.10

Weighted-Average Shares Outstanding, If-Converted

43,788,652

44,504,239

43,896,543

43,759,340

The following table provides a summary of weighted-average shares outstanding for the three and nine months ended September 30, 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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Weighted-Average Shares Outstanding - GAAP

Basic Shares Outstanding, GAAP

25,749,143

25,372,621

25,704,472

25,479,195

Dilutive Impact of Unvested RSUs (6)

2,884,012

3,437,914

2,846,714

2,702,602

Dilutive Impact of Partnership Units (7)

—

15,832,169

15,345,357

15,649,842

Diluted Shares Outstanding, GAAP

28,633,155

44,642,704

43,896,543

43,831,639

Weighted-Average Shares Outstanding - If-Converted

Basic Shares Outstanding, GAAP

25,749,143

25,372,621

25,704,472

25,479,195

Unvested RSUs (6)

2,884,012

3,437,914

2,846,714

2,702,602

Partnership Units (8)

15,155,497

15,693,704

15,345,357

15,577,543

If-Converted Shares Outstanding

43,788,652

44,504,239

43,896,543

43,759,340

As of September 30,

2025

2024

Fully-Diluted Shares Outstanding (9)

45,788,361

46,950,955

Footnotes

(1)

Certain balances in prior periods have been reclassified to conform to their current presentation. For the three and nine months ended September 30, 2024, this resulted in a reclassification of $3.3 million and $9.6 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 number of shares assuming the conversion of vested Partnership Units, the dilutive impact of unvested Partnership Units with a remaining service requirement, and the dilutive impact of 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.

Note: Amounts presented in tables above may not add or recalculate due to rounding.