PJT Partners Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenues were $385.1 million, a 14% decrease from $447.1 million in the prior year.
• Nine months 2026 revenues were $1.29 billion, a 9% increase from $1.18 billion in the prior year.
• Third quarter GAAP pretax income was $68.8 million (down 24% from $91.0 million); adjusted pretax income was $72.4 million (down 23% from $94.0 million).
• Nine months GAAP pretax income was $251.3 million (up 14% from $220.0 million); adjusted pretax income was $261.8 million (up 14% from $230.2 million).
• Third quarter GAAP diluted EPS was $1.15 (down 22% from $1.47); adjusted EPS was $1.41 (down 24% from $1.85).
• Nine months GAAP diluted EPS was $5.02 (up 7% from $4.70); adjusted EPS was $4.92 (up 11% from $4.43).
• Third quarter compensation and benefits expense was $258.4 million (67.1% of revenues), down 15% from $303.3 million; adjusted expense was $256.1 million (66.5% of revenues).
• Nine months compensation and benefits expense was $864.2 million (67.0% of revenues), up 8% from $801.3 million; adjusted expense was $857.6 million (66.5% of revenues).
• Third quarter non-compensation expense was $57.9 million (15.0% of revenues), up 10% from $52.8 million; adjusted expense was $56.7 million (14.7% of revenues).
• Nine months non-compensation expense was $174.1 million (13.5% of revenues), up 11% from $157.2 million; adjusted expense was $170.2 million (13.2% of revenues).
• Third quarter GAAP pretax margin was 17.9%; adjusted pretax margin was 18.8%.
• Nine months GAAP pretax margin was 19.5%; adjusted pretax margin was 20.3%.
• Effective tax rate for GAAP net income was 18.6% for the quarter (vs. 17.6% prior year) and 9.8% for the nine months (vs. 4.3% prior year).
• Effective tax rate for adjusted net income, if-converted, was 19.5% for the nine months ended September 30, 2026.
• Cash, cash equivalents, and short-term investments totaled $766 million as of September 30, 2026.
• The company had no funded debt as of September 30, 2026.

Guidance and Future Outlook:

• Management stated they remain highly confident in future growth prospects.
• The company continues to invest in its business to enhance its footprint, capabilities, and brand to better serve clients and expand market share.

Business Segments and Product Lines:

• Third quarter revenue decreases were driven by declines in strategic advisory, restructuring, and private capital solutions revenues, partially offset by an increase in primary fundraising revenues.
• Nine months revenue growth was driven by increases in strategic advisory, restructuring, and private capital solutions revenues.
• Non-compensation expense increases were driven by continued investments in technology infrastructure, higher market data expenses, expansion of the global office footprint, and elevated travel costs.

Market and Competitive Landscape:

• The company aims to continue expanding its market share through strategic investments in its business footprint and capabilities.
• PJT Partners describes itself as a premier, global, advisory-focused investment bank delivering independent advice and high-touch client service.

Risks and Challenges:

• Potential risks include changes in governmental regulations and policies, cyber attacks, security vulnerabilities, and internet disruptions.
• Risks also encompass failures of remote or on-premises computer systems, catastrophic events (including pandemics), and impacts on the global economy such as inflation, trade policy changes, and geopolitical conflicts.
• Risks include volatility in the political and economic environment, elevated interest rates, and significant technological disruption including the adoption of artificial intelligence.

Management Commentary and Tone:

• Paul J. Taubman, Chairman and CEO, stated the company delivered record revenues, pretax income, and EPS for the nine-month period despite the third-quarter decline.
• Management emphasized that results reflect ongoing investments in the business to enhance capabilities and serve clients.

Other Key Points:

• The company repurchased 2.3 million shares and share equivalents during the nine months ended September 30, 2026, at an average price of $154.07 per share.
• In the third quarter specifically, 0.2 million shares were repurchased at an average price of $156.74 per share.
• Remaining repurchase authorization was $739 million as of September 30, 2026.
• The Board declared a quarterly dividend of $0.25 per share of Class A common stock, payable on December 16, 2026, to shareholders of record as of December 2, 2026.
• The company intends to exchange 75,000 Partnership Units for cash at a price determined by the volume-weighted average price of Class A common stock on November 5, 2026, subject to Board approval.
• The company owns 64.6% of PJT Partners Holdings LP as of September 30, 2026.