Lincoln International — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter of 2026 were $293.7 million, a 57% increase year-over-year compared to $186.7 million in Q3 2025; year-to-date revenues reached $677.1 million, up 45% from $468.6 million in the prior period.
• Investment Banking Advisory revenue was $239.9 million for the quarter (up 70% YoY) and $527.5 million year-to-date (up 51% YoY).
• Valuations and Opinions revenue was $53.8 million for the quarter (up 18% YoY) and $149.7 million year-to-date (up 25% YoY).
• Net income attributable to Lincoln International, Inc. was $9.9 million ($0.25 diluted EPS) for the quarter, compared to $50.6 million ($0.27 basic EPS) in Q3 2025; year-to-date net income was $10.4 million ($0.26 diluted EPS).
• Adjusted net income was $50.2 million ($0.46 adjusted diluted EPS) for the quarter, up 150% from $20.0 million in Q3 2025; year-to-date adjusted net income was $95.8 million ($0.87 adjusted diluted EPS), up 76% from $54.6 million.
• Adjusted operating income was $71.9 million for the quarter (up 186% YoY) and $144.6 million year-to-date (up 112% YoY).
• Adjusted operating margin was 24.5% for the quarter compared to 13.5% in Q3 2025; year-to-date adjusted operating margin was 21.4% compared to 14.6%.
• Compensation and benefits were $186.9 million for the quarter (up 94% YoY); adjusted compensation and benefits were $179.0 million (up 40% YoY), resulting in an adjusted compensation ratio of 61.0% versus 68.5% in the prior year.
• Non-compensation expenses were $62.4 million for the quarter (up 60% YoY); adjusted non-compensation expenses were $42.7 million (up 27% YoY), resulting in an adjusted non-compensation ratio of 14.6% versus 18.0%.
• The effective tax rate was 16% on a GAAP basis and 31% on an adjusted basis for the quarter.
• Cash and cash equivalents were $363.1 million as of September 30, 2026, compared to $320.2 million as of December 31, 2025.
• Long-term debt was $101.9 million as of September 30, 2026, down from $270.4 million as of December 31, 2025, resulting in net cash of $261.2 million.

Guidance and Future Outlook:

• Management stated the company is entering the fourth quarter from a position of strength supported by healthy pipeline activity and continued client engagement.
• The company remains focused on executing its long-term strategy through continued investment in people, technology, and its global platform to strengthen its competitive position and drive sustainable growth.

Business Segments and Product Lines:

• Investment Banking Advisory growth was primarily driven by a higher number of transactions completed, higher average fees, and the acquisition of MarshBerry.
• Valuations and Opinions growth was primarily driven by increasing demand for portfolio valuations and transaction opinions.
• The company welcomed three Managing Directors through lateral hires during the third quarter, bringing the total firmwide Managing Directors to 163.

Market and Competitive Landscape:

• Revenue growth was primarily attributable to increasing M&A activity and demand for private market valuations.
• The company operates with approximately 1,500 professionals in more than 30 offices across 14 countries.

Risks and Challenges:

• Forward-looking statements note risks related to retaining and recruiting talent, acquisitions and integration (including MarshBerry), changing market, economic and geopolitical conditions, revenue volatility, competition, cybersecurity and operational risks, extensive regulation, and organizational structure.

Management Commentary and Tone:

• Rob Brown, Chief Executive Officer, described the quarter as a record performance achieving new highs in revenue and adjusted earnings, with strong growth across both business segments.
• Management emphasized a focus on strategic investments to strengthen competitive advantages and deliver greater value to clients.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on December 15, 2026, to stockholders of record as of December 1, 2026.
• The company completed the acquisition of MarshBerry in October 2025, which contributed to revenue and expense growth in the current period.
• The company underwent an Initial Public Offering (IPO) in May 2026, resulting in a change in corporate structure that impacted compensation expense recognition and tax calculations.
• Adjusted financial measures exclude IPO-related items (equity awards, partner conversion expenses, legal/consulting costs), acquisition-related items (deferred retention, earnouts, intangible asset amortization), and transition-related amortization costs associated with debt repaid in connection with the IPO.