Gross margins have trended upward to 33.0% in 2026Q1, though operating income remains sensitive to deal-closing cycles and high compensation expenses, which reached $85.1M in the same period.
| 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 |
|---|
| Sales/Revenue | 1.81B | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 590.27M | 555.72M | 461.11M | 347.8M | 356.36M | 351.9M | 368.91M | 215.47M | 155.79M | 107.77M | 118.43M | 90.74M | 83.59M | 57.18M |
| Gross Margin % | 32.66% | 32.43% | 30.88% | 30.16% | 34.75% | 35.48% | 35.06% | 30.03% | 26.85% | 21.58% | 23.71% | 22.35% | 20.84% | 14.4% |
| Gross Profit Growth % | - | 20.52% | 32.58% | -2.4% | 1.27% | -4.61% | 71.21% | 38.31% | 44.56% | -9% | 30.51% | 8.56% | 46.2% | - |
| Operating Expenses | 157.11M | 192.86M | 171.25M | 149.99M | 125.23M | 106.52M | 94.36M | 106.9M | 93.64M | 78.69M | 79.12M | 89.07M | 64.64M | 63.28M |
| OpEx % of Revenue | - | 11.25% | 11.47% | 13.01% | 12.21% | 10.74% | 8.97% | 14.9% | 16.14% | 15.76% | 15.84% | 21.94% | 16.12% | 15.94% |
| Selling, General & Admin | 112.15M | 133.52M | 121.45M | 104.76M | 79.35M | 79.95M | 71.97M | 66.71M | 60.3M | 56.94M | 53.62M | 60.12M | 43.49M | 40.83M |
| SG&A % of Revenue | - | 7.79% | 8.13% | 9.08% | 7.74% | 8.06% | 6.84% | 9.3% | 10.39% | 11.4% | 10.74% | 14.81% | 10.84% | 10.29% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 384.62M | 362.86M | 289.85M | 197.8M | 231.13M | 245.39M | 274.54M | 108.57M | 62.15M | 29.07M | 39.31M | 1.67M | 18.95M | -6.11M |
| Operating Margin % | 21.28% | 21.17% | 19.41% | 17.15% | 22.54% | 24.74% | 26.09% | 15.13% | 10.71% | 5.82% | 7.87% | 0.41% | 4.72% | -1.54% |
| Operating Income Growth % | - | 25.19% | 46.54% | -14.42% | -5.81% | -10.62% | 152.87% | 74.7% | 113.76% | -26.04% | 2252.42% | -91.18% | 410.25% | - |
| EBITDA | 412.27M | 394.11M | 318.52M | 234.46M | 267.35M | 280.31M | 310.9M | 141.38M | 72.12M | 37.22M | 53.34M | 16.54M | 26.72M | 2.67M |
| EBITDA Margin % | 22.81% | 23% | 21.33% | 20.33% | 26.07% | 28.26% | 29.54% | 19.7% | 12.43% | 7.45% | 10.68% | 4.08% | 6.66% | 0.67% |
| EBITDA Growth % | 28.37% | 23.73% | 35.85% | -12.3% | -4.63% | -9.84% | 119.91% | 96.03% | 93.79% | -30.22% | 222.4% | -38.09% | 901.99% | - |
| D&A (Non-Cash Add-back) | 27.65M | 31.25M | 28.67M | 36.66M | 36.21M | 34.92M | 36.36M | 32.81M | 9.97M | 8.14M | 14.03M | 14.87M | 7.77M | 8.78M |
| EBIT | 384.67M | 362.86M | 289.85M | 197.8M | 231.13M | 245.39M | 274.54M | 108.57M | 62.15M | 29.07M | 39.31M | 1.67M | 18.95M | -6.11M |
| Net Interest Income | 8.14M | 31.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 8.14M | 31.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 370.73M | 342.92M | 270.57M | 177.61M | 201.47M | 219.45M | 247.96M | 82.19M | 41.51M | 10.05M | 14.5M | -5.94M | 7.54M | -13.8M |
| Pretax Margin % | 20.51% | 20.01% | 18.12% | 15.4% | 19.65% | 22.12% | 23.56% | 11.45% | 7.15% | 2.01% | 2.9% | -1.46% | 1.88% | -3.48% |
| Income Tax | 45.9M | 33.18M | 32.1M | 31.93M | 36.7M | 29.49M | 35.53M | 18.4M | -1.04M | 38.38M | 9.39M | 239K | 3.05M | 3.37M |
| Effective Tax Rate % | 12.38% | 9.68% | 11.86% | 17.98% | 18.22% | 13.44% | 14.33% | 22.39% | -2.52% | 381.74% | 64.77% | -4.03% | 40.41% | -24.44% |
| Net Income | 186.6M | 180.12M | 134.39M | 81.8M | 90.53M | 106.17M | 117.55M | 29.56M | 27.17M | -32.55M | -3.03M | 7.58M | 4.49M | -17.17M |
| Net Margin % | 10.32% | 10.51% | 9% | 7.09% | 8.83% | 10.7% | 11.17% | 4.12% | 4.68% | -6.52% | -0.61% | 1.87% | 1.12% | -4.33% |
| Net Income Growth % | 19.78% | 34.02% | 64.3% | -9.65% | -14.73% | -9.68% | 297.64% | 8.8% | 183.46% | -972.97% | -140.05% | 68.66% | 126.16% | - |
| Net Income (Continuing) | 324.83M | 309.74M | 238.47M | 145.68M | 164.77M | 189.96M | 212.43M | 63.79M | 42.56M | -28.33M | 5.11M | -6.17M | 4.49M | -17.17M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 656.99M | 700.8M | 714.63M | 616.5M | 574.45M | 517.34M | 533.59M | 543.13M | 514.21M | 579.73M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.31 | 6.68 | 4.92 | 4.89 | 3.51 | 3.99 | 4.40 | 1.21 | 1.16 | -1.73 | -0.17 | 0.41 | 0.25 | -0.96 |
| EPS Growth % | 20.99% | 35.77% | 0.61% | 39.32% | -12.03% | -9.32% | 263.64% | 4.31% | 167.05% | -917.65% | -141.46% | 64% | 126.04% | - |
| EPS (Basic) | - | 7.00 | 5.28 | 5.18 | 3.61 | 6.77 | 7.75 | 1.27 | 1.29 | -1.73 | -0.17 | 0.41 | 0.25 | -0.96 |
| Diluted Shares Outstanding | 43.28M | 28.61M | 44.11M | 26.77M | 26.62M | 42.36M | 43.13M | 25.01M | 24.25M | 18.86M | 18.29M | 18.26M | 17.97M | 17.97M |
| Basic Shares Outstanding | 26.23M | 25.72M | 25.45M | 25.26M | 25.08M | 24.96M | 24.5M | 24.01M | 21.88M | 18.86M | 18.29M | 18.26M | 17.97M | 17.97M |
| Dividend Payout Ratio | - | 13.61% | 17.96% | 29.87% | 27.21% | 73.44% | 4.1% | 15.71% | 15.9% | - | - | 1173.38% | - | - |
High compensation expense volatility
Based on the provided quarterly data, PJT's gross margin has demonstrated a consistent upward trajectory, climbing from 29.3% in 2023Q4 to 33.0% by 2026Q1, suggesting improved pricing power or a more favorable mix of high-margin advisory mandates within the firm's specialized restructuring and secondary advisory segments.
The steady expansion in gross margins indicates that the firm is successfully capturing higher-value mandates that command premium fees. Investors should monitor whether this trend persists as the firm scales its newer geographic initiatives, as any dilution in fee structures could signal increased competitive pressure from bulge-bracket entrants.
As reported in financial statements, PJT's operating income has shown significant volatility, peaking at $126.3M in 2025Q4, which highlights the firm's sensitivity to deal-closing cycles and the inherent difficulty in maintaining consistent operating leverage while simultaneously funding aggressive senior-level headcount expansion across its core advisory pillars.
The fluctuation in operating margins suggests that the firm's cost base remains heavily tied to variable compensation, which acts as a natural hedge but complicates short-term profitability forecasting. The ability to scale operating income faster than revenue during peak deal periods remains the primary indicator of long-term operational efficiency.
According to the income statement data, PJT's net income is frequently impacted by substantial stock-based compensation charges, such as the $85.1M recorded in 2026Q1, which necessitates careful adjustment to understand the firm's true cash-generating capacity and the potential for ongoing shareholder dilution over the long term.
The high level of non-cash compensation expenses suggests that management relies heavily on equity to retain top-tier talent, which may mask the underlying profitability of the advisory business. Analysts should focus on adjusted earnings metrics to distinguish between operational performance and the accounting impact of the firm's aggressive human capital retention strategy.
Based on the provided figures, PJT maintains a highly variable cost structure where compensation remains the dominant expense, as evidenced by the firm's ability to modulate SG&A and other costs in response to the lumpy, project-based revenue cycles inherent in its restructuring and strategic advisory business model.
The firm's expense discipline appears to be tied to its success-fee model, allowing it to preserve margins during periods of lower deal activity. However, the reliance on high-cost senior rainmakers implies that any sustained downturn in deal flow could lead to significant margin compression if the firm chooses to retain talent rather than rightsizing its cost base.
Quick answers to the most common questions about buying PJT stock.
PJT Partners Inc. (PJT) is profitable, generating $180.1M in net income for the fiscal year ending 2025 with a net profit margin of 10.5%.
PJT Partners Inc. (PJT) reported an operating income of $362.9M, resulting in an operating profit margin of 21.2%. This margin reflects the operational efficiency of the business before interest and taxes.
PJT Partners Inc. (PJT) generated $555.7M in gross profit for the year, representing a gross profit margin of 32.4%. This demonstrates the company's core pricing power and production efficiency.