For 30 years, Evercore has been committed to delivering for clients by expanding our capabilities and talent each and every year, building a firm grounded in excellence and long-term high-quality growth. This acquisition continues that approach, enhancing our ability to create value for all of our stakeholders. As you have seen, we've been accelerating our growth in AMEA in recent years, including key additions in France, Spain, and most recently, Italy. In the first half of 2025, Evercore generated over $1.5 billion in adjusted net revenues, a 20% increase compared to the same period a year ago.

These results represent record revenues for both second quarter and first half. Since our last earnings call, four senior managing directors have joined our investment banking practice in private capital advisory, healthcare, industrials, and in Italy. As noted earlier, we delivered strong year-over-year growth across our diversified mix of businesses in both the second quarter and the first half. Our European business saw growth in the quarter with an increase in activity across most sectors and products, and momentum for deal activity in the region continues to build.

Our industry-leading private capital advisory business delivered a record first half and second quarter, driven by unprecedented volumes in GP-led continuation funds, LP secondaries, and securitizations. We expect it to be accretive to Evercore's adjusted and GAAP EPS in our first full year together and thereafter. Net revenues, operating income, and EPS on a GAAP basis were $834 million, $150 million, and $2.36 per share, respectively. Adjusted earnings per share of $2.42 increased 34% versus the second quarter of last year.

What went well
  • Evercore delivered record second-quarter results, with adjusted net revenues of $839 million, up nearly 21% year-over-year, and first-half adjusted net revenues of over $1.5 billion, a 20% increase, both records.
  • Adjusted operating income rose 37% to $157 million, adjusted EPS grew 34% to $2.42, and adjusted operating margin expanded 230 basis points to 18.7%.
  • Adjusted advisory fees reached a second-quarter record of $698 million, up 23%, and roughly 50% of total revenues over the quarter and trailing twelve months came from non-M&A sources, reflecting platform diversification.
  • The firm announced an agreement to acquire U.K.-based advisory firm Robey Warshaw for approximately $196 million upfront, expected to be accretive to adjusted and GAAP EPS in the first full year, advancing its global expansion strategy.
  • The private capital advisory business posted a record first half and second quarter on strong GP-led continuation fund, LP secondary, and securitization volumes.
  • Evercore continued recruiting senior talent (nine investment banking SMDs and one senior advisor for the year), returned $532 million of capital to shareholders in the first half, and saw backlogs build with improving CEO confidence and receptive debt and equity markets.
What went wrong
  • Management acknowledged that M&A activity has not reached the full-on merger levels seen at the beginning of the year or that had been anticipated, and that there is not yet an absolute roaring recovery, with tariffs and uncertainty still weighing on some boardroom decisions.
  • The adjusted tax rate rose to 30% from 26.9% a year ago, driven by an increase in non-deductible expenses and higher state and local apportionment.
  • Non-compensation expenses increased 9% year-over-year on higher technology/market data renewal costs and occupancy from new office space.
  • The CFO expressed dissatisfaction with the comp ratio of 65.4% and noted ongoing strategic hiring may create a time lag before meaningful improvement.

Performance Breakdown

MetricYoYNote
Adjusted net revenues +21% to $839M improving market conditions and strong results across diversified businesses; record second quarter
Adjusted operating income +37% to $157M revenue growth and operating leverage
Adjusted EPS +34% to $2.42 higher operating income
Adjusted operating margin +230 bps to 18.7% revenue increase outpacing expense growth
Adjusted advisory fees +23% to $698M second-quarter record across advisory franchise
Underwriting revenues +4% to $32M improving equity issuance markets
Commissions and related revenue +10% to $58M heightened trading volumes in April from elevated volatility
Asset management and admin fees +3% to $21M market appreciation and net inflows
Adjusted non-comp expenses +9% to $133M higher technology/market data renewal costs and occupancy from office expansions

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
M&A market recoverystronger expectations earlier in the yearImproving with rising CEO confidence and building backlogs, but not a full recovery; global M&A volumes up 30% YTD industry-wideUp
Revenue diversification (non-M&A mix)—~50% of revenues from non-M&A sources (PCA, restructuring, activism defense); merger business expected to grow faster as market recoversStable
Global expansion / internationalrecent additions in France, Spain, ItalyRobey Warshaw acquisition adds U.K. large-cap relationships; over 400 bankers across nine countries in the regionUp
Private capital advisory secondaries—Record first half on unprecedented GP-led continuation fund and LP secondary volumes; competition expected to intensifyUp
Compensation ratioimproved from two years ago; down vs prior year and last quarter65.4%, down 60 bps YoY; ongoing strategic hiring may delay near-term further improvementStable
Talent recruiting—Nine investment banking SMDs and one senior advisor for the year, with a solid external pipeline; hiring one-by-one remains the primary growth meansUp

Q&A Summary

What is the business profile of Robey Warshaw, and what beyond M&A advisory do they offer today?
They are primarily a top-level, C-suite and board strategic advisor with an extraordinary client franchise but have not translated their product knowledge into revenues; the key synergy is marrying their trusted relationships with Evercore's full product set, sector expertise, and global reach to drive revenue growth.
Are tariffs and uncertainty still weighing on transactions in the boardroom?
Full-on merger activity is below earlier-year levels, but boards and management teams are growing more comfortable with greater certainty and clarity; backlog is building and momentum could continue, though it is not yet a roaring recovery.
Will Evercore pursue more acquisitions, and does this change the mix of organic hiring versus M&A?
Hiring high-quality talent one-by-one remains the most important growth method; Robey Warshaw was a rare cultural and strategic fit and the firm would not otherwise be doing an acquisition, though it would evaluate opportunities that arise.
Is the ~50% non-M&A revenue mix a new baseline, or will it decline as M&A reaccelerates?
The mix is hard to predict, but the merger business is expected to grow faster as the market recovers and likely take a higher share, while non-M&A businesses (PCA, restructuring, activism defense) continue to grow; the mix may settle around 40-50%.
What is the outlook for secondary/PCA industry volumes and competitive dynamics in the back half?
Competition is expected to intensify as more players ramp up, but Evercore is well positioned with an experienced team and track record; activity remains strong at GP and LP levels, with the second half possibly not ramping as fast but staying comfortable at current levels.
How is the Robey Warshaw deal financed, and how should the consideration and performance incentives be viewed?
Evercore raised $250M in private notes (five-year at 5.17%, seven-year at 5.47%); the ~$196M upfront is split roughly 51% at closing and 49% at the one-year anniversary, payable in stock with strong consideration given to repurchasing offsetting shares, making it effectively largely net cash. Additional future consideration is earned only if Robey Warshaw outperforms base projections and significant synergies are achieved, which is value-accretive and aligns incentives.

More on Evercore Inc.

Reported 2025-07-30 · figures from the Evercore Inc. Q2 2025 earnings call.

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