PJT

• Leadership Transition

  • CFO Helen Meates will step down on October 1, 2026 after over a decade of service, and will remain with the firm through the end of the year to support a seamless transition
  • Arun Kalra, current Director of Finance, will be elevated to CFO, succeeding Meates

• Core Business Operational Performance

  • Strategic Advisory: M&A mandate counts are at record levels, up more than 20% year-over-year, with preannounced revenue pipeline also at record levels growing faster than mandate counts; the M&A market has improved steadily through 2026, with annualized activity only up single-digit percentage year-over-year despite a rising number of companies exploring M&A opportunities
  • Restructuring: Sustained demand for liability management and restructuring advisory is driven by high corporate leverage, elevated financing costs, disrupted operating models from rapid technological change, and approaching debt maturity walls; management expects restructuring activity to remain elevated for the foreseeable future, with the firm's expanded strategic advisory footprint growing its addressable market
  • PJT Park Hill: PCS (secondary and private capital solutions) is experiencing strong secular growth, leveraging collaboration with the firm's strategic advisory business and access to a global limited partner network; primary fundraising has a high-quality differentiated pipeline that will support strong relative performance even as the overall primary market remains challenging

• Financial Highlights

  • Q2 2026 adjusted pre-tax income was a record $106 million, up 32% year-over-year, with an adjusted pre-tax margin of 21.7% (up 200 bps year-over-year); first half adjusted pre-tax income was a record $189 million, with a 20.9% margin (up 230 bps year-over-year)
  • Adjusted EPS was a record $1.97 in Q2 (up 28% year-over-year) and a record $3.51 for the first half (up 36% year-over-year)
  • The firm repurchased 498,000 shares in Q2 and 2.1 million shares in the first half of 2026; it ended the quarter with $535 million in cash/short-term investments and no outstanding funded debt
  • The board approved a $0.25 per share quarterly dividend

• Full year 2026 revenue growth is expected to be lower than the 24% growth achieved in the first half of the year, though all businesses remain on track to deliver record full-year performance
• Adjusted non-compensation expense growth for full year 2026 is revised upward to approximately 14% year-over-year, higher than prior guidance; the increase is driven by higher travel, professional fees, and continued investments in AI and technology infrastructure
• The full year 2026 compensation accrual ratio is estimated at 66.5% of revenues, down from 67.5% in the year-ago first half
• The full year 2026 effective corporate tax rate is estimated at 20.5%, which is in line with prior guidance
• Management remains confident in the firm's near, intermediate, and long-term growth prospects

PJT Partners reported total Q2 2026 revenues of $486 million, an increase of 20% year-over-year; total first half 2026 revenues were $904 million, up 24% year-over-year, with all three segments achieving revenue growth and record results for Strategic Advisory and Restructuring. 1. Strategic Advisory: Delivered record revenues for Q2 and the first half of 2026, growing significantly above year-ago levels; it is expected to be the largest source of aggregate dollar growth in 2026 if macroeconomic conditions remain steady. 2. Restructuring: Delivered record Q2 and first half 2026 revenues, comfortably above prior year levels; the firm ranks #1 in all global and U.S. announced and completed restructuring league tables year-to-date. 3. PJT Park Hill: Achieved year-over-year revenue growth for Q2 and the first half of 2026; strong double-digit growth in Private Capital Solutions (PCS) more than offset declines in primary fundraising, resulting in net positive overall growth.

• Ongoing geopolitical instability and uncertainty related to AI disruption are contributing to market volatility and a stop-start cadence to M&A activity
• Any future macroeconomic recession or systemic shock could lead to even higher restructuring activity, but would also negatively impact broader M&A and capital market activity
• Intense competition for talent may put upward pressure on compensation costs
• Elevated and rising occupancy, travel, technology, and professional fee costs are driving higher non-compensation expense growth
• The primary fundraising market overall remains challenging, creating headwinds for that segment of PJT Park Hill's business
• AI disruption has created valuation uncertainty for software sector companies, which may delay M&A and restructuring activity in the near term, and could lead to unexpected stress if valuation pressures persist

Q: With 20% of Strategic Advisory partners having fewer than two years at the firm, is the business approaching steady-state partner productivity, or is there still room for meaningful growth? / A: Management does not see the business approaching steady-state, and is still in the early stages of realizing the full potential of the current platform. Growth does not follow a linear path, and the firm is still building critical mass in new regional and practice area initiatives. Growing network effects across the expanding franchise, increased brand recognition, and higher walk-in deal flow will continue to drive improving productivity per partner over time.

Q: Can you elaborate on the outlook for restructuring activity: can activity grow further in coming years, or will it just stabilize at current elevated levels? / A: PJT's addressable restructuring market continues to expand significantly, driven by three factors: ongoing geographic expansion into new markets, more deal flow from the expanded strategic advisory franchise, and growing penetration of the private equity and energy end-markets. Current elevated activity is the new normal, after abnormally low activity in the era of near-zero interest rates, loose lending covenants, and long-dated maturities. Management expects activity to continue grinding gradually higher, with an upside call option if macroeconomic conditions deteriorate further.

Q: How does AI-driven disruption benefit PJT's investment banking businesses? / A: AI disruption is forcing many companies to reevaluate their competitive positions, which will generate incremental transaction activity across PJT's segments. Expected activity includes: more take-private transactions for undervalued healthy companies, more M&A consolidation as companies scale to compete, more secondary private capital transactions as private equity firms monetize non-impacted portfolio assets, and more financing activity for AI-related build-outs like data centers. Management expects AI disruption to be net-net positive for PJT's business overall.

Q: If non-compensation expense grows at a low double-digit rate as the business scales, when will non-comp growth moderate to create more operating leverage? / A: PJT has always prioritized long-term investment in the business while actively seeking efficiency gains. Major step-function costs like expanded office occupancy in New York and London have already been incurred, and the firm will grow into this space over time to generate efficiency. Non-compensation expense as a percentage of revenue has already been far lower than initial expectations even during the aggressive growth period, and every dollar of investment is allocated to high-return long-term growth initiatives.