Evercore Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Devin Ryan - Citizens JMP Securities LLC - Analyst : Thanks so much. Good morning, John. Good morning, Tim. Congrats on the strong quarter. Want to just ask a question about the current environment and kind of the trajectory. Obviously, really good trends in the quarter and you talked about kind of some larger strategic transactions leading the recovery, but now, sponsors are steadily picking up. So can you maybe just explain kind of what you're seeing in terms of the breadth of activity, how that's evolved over the last few months, and just expectations here as we exit the year, relative to maybe where we were in the middle of the year where it seemed like you guys maybe disproportionately benefited, but now things are broadening out and that is helping you as well? So love to get some color there. Thank you.

Question: Brendan O'Brien - Wolfe Research LLC - Analyst : Good morning. Thank you for taking my questions. So I just want to ask on comp leverage. The top-line results have been very impressive year to date. However, despite the strong revenue growth, you have only been able to lower the comp ratio by about 70 bps, implying an incremental comp margin of about 63% versus historically in the low 50s. Now, I understand that you have been leaning into recruiting quite a lot this year and have had a lot of success adding talent to the platform, but I just want to get a sense as to how you are thinking about the incremental comp margins in the coming years and whether you expect to see any improvements from the current levels if the pace of hiring slows relative to this year's record level.

Question: Brennan Hawken - Bank of Montreal - Analyst : Good morning, John. Good morning, Tim. Thanks for taking my question. I'd love to drill into those comments, Tim, because I hear you that you're adding a great deal of talent. I hear you that the level of competition for talent is intense, and you've made reference to the fact that it's both about recruiting and retention, given the caliber of bankers that you have. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 12:00PM, EVR.N - Q3 2025 Evercore Inc Earnings Call So clearly, the environment is challenging. I doubt that's going to change. I mean, you guys have spoken, regardless of 4Q and timing and all that other nonsense, the environment is getting better and it seems like the bullish brackets are punching back in a really sort of strong way. So that doesn't seem like it's going to fade. But do we need to give up the ghost on the low 60s? Because you did 40% revenue year over year, comp leverage 100 bps. Yes, it's improved from the really bad levels of 2023. But in order for us to be thinking about -- for investors, the way investors are talking about it is like where are we going to get to in 2027. And most of that underwrites low-60s comp ratios. Given what you know today, is that realistic? Or do we need to re-underwrite things in a more meaningful way?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Good morning, and thanks for taking my question. John, you touched on this a bit, but perhaps, could you expand a little bit on the impact of the government shutdown on your business in terms of timeline and whether any of the effects will be permanent? And then could you differentiate between the impacts on the equity capital markets and M&A?

Question: Ryan Kenny - Morgan Stanley - Analyst : Hi. Good morning. Thanks for taking my question. I have another government-related question, which is on regulatory environment. Can you update us on what you're seeing there, especially on time to close deals? And are you seeing an improved environment across the board? Or are there some industries where scrutiny is higher?

Question: Jim Mitchell - Seaport Global Securities LLC - Analyst : Hey. Good morning. Maybe you could talk a little bit about Europe. You had a record year and a record quarter in the third quarter. Obviously, that doesn't include Robey Warshaw yet. So can you, I guess, number one, give us a lay of the land of Europe and the environment? And secondly, even after Robey Warshaw, how much white space in terms of investment do you see?

Question: Brennan Hawken - Bank of Montreal - Analyst : Hey. Thanks for taking my follow-up. You guys have spoken to the non-M&A piece reaching a half on a TTM basis, which is great and very encouraging to see. As M&A turns back on, where would you expect that share of non-M&A revenue to drift to? Is it reasonable to think it'll go from like half to about 40%? Or are you more thinking maybe it's more like a third? What's the right way to think about that? Thanks.