Perella Weinberg Partners Q4 FY2025 earnings call

• Europe delivered record revenues, cementing its position as a leading advisor in active regions. - Restructuring practice hit record revenues, gaining market share. - 2025 was a record year for recruiting and promoting senior bankers, with new hire momentum continuing. - Devon Park acquisition has gone well, with joint new mandates won and a strong pipeline. - Adjusted non-compensation expense was down 2% from the prior year and below initial projections. - Returned over $163 million to equity in 2025 through various means, retired 6.5 million shares, and ended the year with $256 million in cash and no debt.

Full-year 2025 revenues were $751 million, down 14% from 2024 but the third-highest revenue year in the firm's twenty-year history. Fourth-quarter revenues were $219 million. Europe delivered record revenues, and the restructuring practice hit record revenues. The gross pipeline stands at record highs, and the announced and pending backlog is strong. The adjusted compensation margin for full year 2025 was 68% compared to 67% in 2024, and adjusted non-compensation expense was $159 million for the full year 2025, down 2% from a year ago.

• Expect a further single-digit percent decrease in adjusted non-compensation expense in 2026. - Declared a quarterly dividend of $0.07 per share. - Optimistic about 2026 due to strong starting point in January, including an announced $15 billion transaction. - Committed to finding the right balance between partner investment in future growth and shareholder investment, with expectation that revenue progression will help get comp ratio back to desired levels.

• Forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. - Uncertainties in deal completions, as some large deals didn't complete in 2025. - Geopolitical and policy uncertainties could impact client decisions and deal activity.

Q: How much did large deals not completing impact 2025 results and impact on 2026 outlook?

A: Last year, several large deals didn't complete, but trending is better with a $15 billion transaction announced in January 2026.

Q: How is the Devon Park acquisition going and its impact?

A: Devon Park acquisition has gone very well, with good take-up in client conversations and joint new mandates won.

Q: How to get comp ratio back to mid-60s or below?

A: Depends on revenue progression and investment balance; need revenue to continue and get back to expected levels.

Q: Outlook for restructuring business in 2026?

A: Very strong, with no slowdown in liability management engagement.

Q: Recruiting backdrop for 2026?

A: Likely a more normal year, back on trend with a good pipeline but not as active as 2025.

Q: Drivers of record revenues in Europe?

A: Investments in talent and clients, active markets in Germany and France, and geopolitical dialogues leading to more business.

Q: Impact of geopolitics and midterms on U.S. clients?

A: Not seeing impact yet, but once through initial shock, clients see opportunities.

Q: Advisory revenue mix?

A: Firm is organized by sector, not products, so declining to provide product-based mix.

Q: Capital return priorities beyond organic investment?

A: Organic investment in future revenue and clients is top priority, with capital return including dividends, share repurchases, etc., and priority stack remains same.

Q: Starting point for comp ratio in 2026?

A: Q1 2026 starting at 67% accrual, with focus on balancing partner investment and shareholder returns.