Evercore (EVR) Q2 EPS Jumps 36%

Key Points

• Adjusted earnings per share were $2.42 in Q2 2025, 36% above the $1.78 consensus estimate.

• Adjusted revenue rose 21% to $838.9 million in Q2 2025, exceeding forecasts by $119.3 million.

• Operating margin (adjusted, non-GAAP) increased to 18.7% in Q2 2025, up 2.3 percentage points from the prior year.

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Evercore (NYSE:EVR), a leading independent investment banking advisory firm, reported its financial results for the quarter ended June 30, 2025, on July 30, 2025. The firm posted adjusted earnings per share (EPS) of $2.42, well ahead of expectations at $1.78. Adjusted revenue reached $838.9 million, beating analyst estimates of $719.6 million and reflecting a significant year-over-year gain. Management delivered the highest Q2 and first-half net revenues in the company’s history, with operating margin rising to 18.7% on an adjusted basis. The results showed a strong beat versus expectations on a non-GAAP basis and confirmed a robust period for Evercore, propelled by record advisory revenues and ongoing business expansion.

Source: Analyst estimates for the quarter provided by FactSet.

Understanding Evercore’s Business and Recent Focus

Evercore provides advisory services for mergers and acquisitions, restructuring, and capital raising, with an emphasis on offering independent advice. The firm also operates in asset management and equity research, but most of its revenue comes from investment banking activities. Its business is centered around complex, high-value transactions for corporate clients and investors globally.

Recent priorities have focused on its independent advisory model, deep expertise in mergers and acquisitions, maintaining global reach, and attracting and retaining top talent. These factors are key to securing new mandates and driving the volume of large deals—Evercore’s main financial growth driver. Managing regulatory compliance, risks, and effective cost discipline also remains critical as the firm expands in existing and new geographic markets.

Quarter Highlights: Financial and Business Drivers

Evercore delivered record advisory revenues, with adjusted advisory fees up 23% year over year. This was driven by a 23% increase in advisory fees (U.S. GAAP), reflecting the firm’s central role in several high-profile mergers and acquisitions. Notable transactions included Cox Communications’ merger with Charter, the Warner Bros. Discovery separation, and the sale of Foot Locker.

Adjusted net income attributable to Evercore increased 34% from the prior year. Operating margin (adjusted) expanded to 18.7%, an improvement of 228 basis points. These expense increases stemmed from larger incentive payouts, higher base salaries, IT and research spending, expanded office space, and growing headcount.

Commissions and related revenue climbed 10% year-over-year, fueled by heightened trading activity. Underwriting fees rose 4% year-over-year on a U.S. GAAP basis despite a drop in the number of financing transactions handled, as larger or higher-fee deals offset the decline in volume. Asset management and administrative fees (adjusted, non-GAAP) grew 3% year-over-year as assets under management (AUM) rose to $14.478 billion.

Evercore’s hiring pace continued, bringing in nine new Senior Managing Directors (SMDs) and a Senior Advisor year to date in 2025. It has expanded sector expertise in areas such as Private Capital Advisory, Healthcare, Industrials, and across Europe. SMD headcount rose to 197 as of June 30, 2025, from 184 as of June 30, 2024, underscoring a consistent commitment to talent as a competitive advantage. Ongoing investments in technology, compliance, and business expansion further contributed to the expense picture.

Strategic and Operational Developments

Advancing its independent advisory model, Evercore announced a planned acquisition of Robey Warshaw, a UK-based advisory boutique. Expansion outside traditional markets continued, including adding a Wealth Management office in San Francisco.

Private Capital Advisory, which assists clients with secondary transactions and continuation funds, achieved record results for Q2 and the first half of 2025.

Key cost metrics saw moderate improvement, with the adjusted compensation ratio declining from 66.0% in Q2 2024 to 65.4% in Q2 2025. This ratio measures total compensation and benefits as a share of revenue and is a crucial indicator for investment banks reliant on talent. Non-compensation expenses increased 9% year-over-year (non-GAAP), affected by factors like research, occupancy, and subscription costs, but that growth was below the pace of revenue.

The board kept the quarterly dividend at $0.84 per share, unchanged from Q1 2025 and 5% above the prior-year level. Share repurchases totaled 1.7 million shares year to date, at an average price of $258.50 per share, with $532.1 million returned to shareholders in the first half of 2025. On the balance sheet as of June 30, 2025, cash and equivalents stood at $617.3 million, investment securities totaled $1.1 billion, and current assets exceeded current liabilities by $1.6 billion.

Outlook and Investor Considerations

Management did not provide formal numerical guidance for upcoming quarters or for fiscal 2025. Instead, it cited strong deal backlogs, high client engagement, and ongoing hiring as supporting momentum into the second half of 2025. The firm noted that quarterly results may fluctuate significantly due to the timing and value of transaction fees, a characteristic of the advisory business.

Looking ahead, investors should watch for trends in expense growth, especially compensation, given the talent-intensive nature of the industry. Capital markets activities, such as underwriting, may remain episodic, as reflected by a lower number of transactions in Q2 2025. Expansion activity—including integration of Robey Warshaw—and sustained hiring are also likely to influence performance. The dividend remains at $0.84 per share.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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