Lazard's profitability remains highly sensitive to transaction cycles, with gross margins fluctuating significantly from a low of 21.9% in 2025Q4 to a peak of 41.3% in 2024Q3.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 3.27B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 1.04B | 1.01B | 1.08B | 605.13M | 1.17B | 1.37B | 1.09B | 1.09B | 1.36B | 1.18B | 1.04B | 1.08B | 1.04B | 781.49M | 636.88M | 736.08M | 787.94M | 0 | 0 | 0 | 0 | 0 | 0 |
| Gross Margin % | 31.69% | 31.79% | 35.09% | 23.72% | 41.38% | 41.99% | 41.29% | 41.03% | 47.25% | 43.77% | 43.64% | 45% | 44.28% | 37.94% | 32.04% | 38.64% | 39.75% | - | - | - | - | - | - |
| Gross Profit Growth % | - | -6.47% | 78.98% | -48.24% | -14.81% | 25.86% | 0.24% | -19.84% | 15.21% | 13.48% | -3.88% | 3.42% | 33.6% | 22.71% | -13.48% | -6.58% | - | - | - | - | - | - | - |
| Operating Expenses | 636.73M | 597.78M | 696.62M | 685.09M | 652.34M | 648.56M | 588.28M | 695.08M | 676.21M | 352.37M | 520.43M | 1.1B | 524.59M | 564.69M | 512.99M | 500.58M | 544.29M | 1.53B | 1.56B | 1.92B | 1.49B | 1.3B | 1.09B |
| OpEx % of Revenue | - | 18.76% | 22.57% | 26.85% | 23.09% | 19.84% | 22.27% | 26.22% | 23.55% | 13.1% | 21.88% | 45.69% | 22.25% | 27.41% | 25.8% | 26.28% | 27.46% | 100% | 100% | 100% | 100% | 100% | 100% |
| Selling, General & Admin | 378.63M | 118.49M | 426.66M | 430.66M | 384.87M | 379M | 339.48M | 424.08M | 424.06M | 333.28M | 301.44M | 302.3M | 311.58M | 309.1M | 304.08M | 290.23M | 256.46M | 1.51B | 1.36B | 1.32B | 891.42M | 698.68M | 466.06M |
| SG&A % of Revenue | - | 3.72% | 13.82% | 16.88% | 13.62% | 11.6% | 12.85% | 16% | 14.77% | 12.39% | 12.67% | 12.6% | 13.22% | 15% | 15.3% | 15.23% | 12.94% | 98.88% | 87.34% | 68.89% | 59.68% | 53.69% | 42.57% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 400.23M | 415.32M | 386.47M | -79.96M | 516.85M | 723.85M | 502.14M | 392.7M | 680.77M | 825.45M | 517.46M | -16.62M | 519.47M | 216.81M | 123.89M | 235.5M | 243.65M | -182.23M | 25.14M | 418.3M | 327.21M | 342.36M | 288.21M |
| Operating Margin % | 12.23% | 13.03% | 12.52% | -3.13% | 18.29% | 22.15% | 19.01% | 14.81% | 23.71% | 30.68% | 21.76% | -0.69% | 22.03% | 10.52% | 6.23% | 12.36% | 12.29% | -11.91% | 1.61% | 21.81% | 21.91% | 26.31% | 26.32% |
| Operating Income Growth % | - | 7.46% | 583.35% | -115.47% | -28.6% | 44.15% | 27.87% | -42.32% | -17.53% | 59.52% | 3213.48% | -103.2% | 139.6% | 75.01% | -47.39% | -3.35% | 233.7% | -824.88% | -93.99% | 27.84% | -4.43% | 18.79% | - |
| EBITDA | 433.79M | 449.51M | 423M | -36.77M | 559.18M | 762.22M | 539.03M | 430.51M | 717.9M | 866.46M | 585.97M | 21.99M | 560.32M | 261.67M | 163.1M | 271.99M | 274.23M | -154.7M | 50.56M | 456.55M | 341.49M | 359.65M | 305.15M |
| EBITDA Margin % | 13.26% | 14.11% | 13.71% | -1.44% | 19.79% | 23.32% | 20.41% | 16.24% | 25% | 32.2% | 24.64% | 0.92% | 23.77% | 12.7% | 8.2% | 14.28% | 13.84% | -10.11% | 3.25% | 23.81% | 22.86% | 27.63% | 27.87% |
| EBITDA Growth % | 2.74% | 6.27% | 1250.38% | -106.58% | -26.64% | 41.41% | 25.21% | -40.03% | -17.14% | 47.87% | 2565.21% | -96.08% | 114.13% | 60.44% | -40.04% | -0.81% | 277.26% | -405.97% | -88.93% | 33.69% | -5.05% | 17.86% | - |
| D&A (Non-Cash Add-back) | 33.56M | 34.19M | 36.52M | 43.19M | 42.34M | 38.38M | 36.89M | 37.81M | 37.14M | 41.01M | 68.51M | 38.61M | 40.85M | 44.86M | 39.21M | 36.49M | 30.58M | 27.53M | 25.42M | 38.26M | 14.28M | 17.28M | 16.94M |
| EBIT | 451.86M | 415.22M | 474.54M | -2.28M | 598.37M | 804.62M | 582.77M | 490.05M | 720.32M | 878.96M | 567.75M | 34.54M | 582.03M | 296.19M | 205.45M | 325.63M | 341.36M | -74.34M | 165.04M | 555.4M | 333.17M | 298.41M | 319.82M |
| Net Interest Income | -54.68M | -49.13M | -34.46M | -35.65M | -52.06M | -75.22M | -74.97M | -64.4M | -45.35M | -46.37M | -45.06M | -45.87M | -57.21M | -74.68M | -75.56M | -75.52M | -76.74M | -78.66M | -57.95M | -47.17M | -59.18M | -43.75M | -11.88M |
| Interest Income | 34.64M | 38.49M | 53.6M | 42.02M | 29.46M | 5.55M | 5.67M | 15.79M | 13.13M | 7.14M | 5.23M | 5.29M | 5.36M | 4.71M | 6.01M | 14.61M | 20.97M | 29.23M | 81.94M | 89.94M | 45.07M | 34.62M | 27.67M |
| Interest Expense | 89.32M | 87.62M | 88.07M | 77.67M | 81.52M | 80.77M | 80.63M | 80.19M | 58.48M | 53.52M | 50.29M | 51.16M | 62.57M | 79.38M | 81.56M | 90.13M | 97.71M | 107.89M | 139.9M | 137.11M | 104.25M | 78.36M | 39.55M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 362.54M | 327.6M | 386.47M | -79.96M | 516.85M | 723.85M | 502.14M | 392.7M | 680.77M | 825.45M | 517.46M | -16.62M | 519.47M | 216.81M | 123.89M | 235.5M | 243.65M | -182.23M | -239K | 235.66M | 161.8M | 220.05M | 357.76M |
| Pretax Margin % | 11.08% | 10.28% | 12.52% | -3.13% | 18.29% | 22.15% | 19.01% | 14.81% | 23.71% | 30.68% | 21.76% | -0.69% | 22.03% | 10.52% | 6.23% | 12.36% | 12.29% | -11.91% | -0.02% | 12.29% | 10.83% | 16.91% | 32.68% |
| Income Tax | 72.94M | 76.58M | 99.76M | -22.65M | 124.36M | 181.3M | 99.45M | 94.98M | 148.32M | 565.6M | 123.77M | -1.01B | 85.4M | 51.69M | 31.1M | 44.94M | 49.23M | 6.01M | 25.38M | 80.62M | 68.81M | 58.98M | 28.38M |
| Effective Tax Rate % | 20.12% | 23.38% | 25.81% | 28.33% | 24.06% | 25.05% | 19.8% | 24.19% | 21.79% | 68.52% | 23.92% | 6074.32% | 16.44% | 23.84% | 25.1% | 19.08% | 20.2% | -3.3% | -10618.83% | 34.21% | 42.53% | 26.81% | 7.93% |
| Net Income | 277.37M | 236.83M | 279.91M | -75.48M | 357.52M | 528.06M | 402.46M | 286.5M | 527.13M | 253.58M | 387.7M | 986.37M | 427.28M | 160.21M | 84.31M | 174.92M | 174.98M | -130.24M | 3.14M | 155.04M | 92.98M | 143.49M | 246.97M |
| Net Margin % | 8.48% | 7.43% | 9.07% | -2.96% | 12.65% | 16.16% | 15.24% | 10.81% | 18.36% | 9.42% | 16.3% | 41.11% | 18.12% | 7.78% | 4.24% | 9.18% | 8.83% | -8.51% | 0.2% | 8.08% | 6.23% | 11.03% | 22.56% |
| Net Income Growth % | -8.92% | -15.39% | 470.85% | -121.11% | -32.3% | 31.21% | 40.48% | -45.65% | 107.87% | -34.59% | -60.69% | 130.85% | 166.69% | 90.03% | -51.8% | -0.04% | 234.35% | -4250.48% | -97.98% | 66.74% | -35.2% | -41.9% | - |
| Net Income (Continuing) | 289.59M | 251.02M | 286.71M | -57.31M | 392.48M | 542.54M | 402.69M | 297.72M | 532.45M | 259.85M | 393.69M | 992.93M | 434.06M | 165.11M | 92.78M | 190.56M | 194.42M | -188.25M | -239K | 337.68M | 258.4M | 283.38M | 329.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.58M | -10.53M |
| Minority Interest | 72.58M | 115.47M | 128.54M | 146.1M | 702.41M | 677.74M | 87.66M | 71.58M | 53.24M | 59.1M | 57.83M | 53.85M | 63.31M | 69.79M | 81.88M | 140.71M | 143.72M | 167.71M | 61.17M | 52.77M | 55.5M | 111.73M | 174.72M |
| EPS (Diluted) | 2.60 | 2.17 | 2.68 | -0.90 | 3.51 | 4.63 | 3.54 | 2.44 | 4.06 | 1.91 | 2.92 | 7.40 | 3.20 | 1.21 | 0.65 | 1.36 | 1.36 | -1.66 | 0.02 | 2.79 | 2.31 | 3.82 | 6.59 |
| EPS Growth % | -11.15% | -19.03% | 397.78% | -125.64% | -24.19% | 30.79% | 45.08% | -39.9% | 112.57% | -34.59% | -60.54% | 131.25% | 164.46% | 86.15% | -52.21% | 0% | 181.93% | -6847.97% | -99.12% | 20.78% | -39.53% | -42.03% | - |
| EPS (Basic) | - | 2.43 | 2.93 | -0.90 | 3.68 | 4.90 | 3.69 | 2.57 | 4.43 | 2.09 | 3.11 | 7.87 | 3.49 | 1.33 | 0.72 | 1.48 | 1.68 | -1.66 | 0.05 | 3.04 | 2.42 | 3.83 | 6.59 |
| Diluted Shares Outstanding | 106.79M | 106.34M | 102.39M | 88.99M | 101M | 113.67M | 113.48M | 116.08M | 129.77M | 132.48M | 132.63M | 133.25M | 133.81M | 133.74M | 129.33M | 137.63M | 138.47M | 78.31M | 127.35M | 62.21M | 44.17M | 37.56M | 37.5M |
| Basic Shares Outstanding | 99.46M | 97.48M | 93.14M | 88.99M | 95.66M | 106.04M | 106.86M | 116.08M | 119.01M | 121.57M | 124.77M | 125.37M | 122.35M | 120.85M | 116.95M | 118.03M | 104.41M | 78.31M | 60.88M | 51.19M | 38.43M | 37.5M | 37.5M |
| Dividend Payout Ratio | - | 78.78% | 63.95% | - | 50.87% | 37.11% | 48.85% | 88.98% | 68.23% | 134.65% | 86.7% | 29.47% | 34.23% | 75.91% | 160.25% | 40.35% | 28.91% | - | 734.74% | 75.66% | 14.5% | 3.71% | - |
Cyclical M&A Revenue Volatility
As reported in recent financial statements, Lazard's gross margin has exhibited significant quarterly variance, fluctuating from a low of 21.9% in 2025Q4 to a peak of 41.3% in 2024Q3, highlighting the inherent sensitivity of the firm's advisory-heavy revenue model to transaction timing and deal completion cycles.
The wide dispersion in gross margins suggests that Lazard's profitability is highly dependent on the successful closing of large-scale mandates rather than consistent, linear revenue generation. Investors should interpret these swings as a structural feature of the firm's reliance on success fees, which may mask underlying operational efficiency during periods of lower deal flow.
Based on the provided income statement data, operating margins have remained relatively compressed, peaking at 20.3% in 2024Q3 before retreating to 13.6% in 2026Q1, suggesting that the firm struggles to achieve meaningful operating leverage when revenue growth fails to outpace the high variable costs of talent.
The firm's inability to consistently scale operating income alongside gross profit indicates that compensation expenses likely act as a rigid floor on profitability. This dynamic suggests that management's 'Lazard 2030' growth initiatives may face significant margin headwinds if the firm cannot decouple its headcount-related costs from top-line revenue volatility.
According to historical filings, Lazard's net income has been periodically impacted by substantial stock-based compensation charges, such as the $254.9 million recorded in 2025Q3, which significantly obscures the firm's true underlying earnings power and complicates year-over-year comparisons for institutional investors monitoring core profitability.
These periodic, large-scale non-cash charges suggest that reported EPS may not always reflect the cash-generating capability of the business. Analysts should exercise caution when evaluating net margins, as the timing and magnitude of these equity-based awards appear to create artificial volatility in the bottom line that may not correlate with operational performance.
While Lazard maintains a prestigious reputation, the firm's recent performance, including a 43.8% decline in EPS during 2025Q4, warrants investigation into whether its European-centric advisory model is losing competitive ground to more agile, U.S.-focused boutiques that are currently capturing a larger share of global M&A activity.
The persistent fluctuation in quarterly net income suggests that the firm's counter-cyclical restructuring business may not be providing the expected buffer against broader market downturns. Investors should monitor whether the firm's strategic pivot toward aggressive growth is a necessary modernization or a reactive measure to address a potential long-term erosion of its market share.
Quick answers to the most common questions about buying LAZ stock.
Lazard Ltd (LAZ) is profitable, generating $236.8M in net income for the fiscal year ending 2025 with a net profit margin of 7.4%.
Lazard Ltd (LAZ) reported an operating income of $415.3M, resulting in an operating profit margin of 13.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Lazard Ltd (LAZ) generated $1.01B in gross profit for the year, representing a gross profit margin of 31.8%. This demonstrates the company's core pricing power and production efficiency.