Thu, May 1, 9:08 PM (14 days ago)
**PJT Partners Inc. (PJT) Q1 2025 Financial Performance Summary** PJT Partners Inc. (PJT) reported a mixed quarter with slight revenue declines but improved profitability. Here are the key points: **Financial Health & Performance:** - **Revenue:** Total revenues were $324.5 million, down 1.5% from $329.4 million in Q1 2024. Advisory fees decreased by 2.3%, while placement fees increased by 4%. - **Profit Margins:** Net income increased by 39% to $74.2 million, with a significant tax benefit contributing to the improvement. The effective tax rate was -41.1% compared to 1.0% in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $75.9 million, an increase from $38.8 million in Q1 2024, primarily due to changes in working capital. - **Earnings Changes:** Net income attributable to PJT Partners Inc. increased by 66% to $54.0 million. **Trends & Uncertainties:** - **Market Conditions:** Global M&A activity increased modestly, but the number of announced transactions declined. Geopolitical uncertainties and economic conditions pose risks to future performance. - **Fund Placement:** Activity remains challenging due to market volatility and a slowdown in realizations. - **Private Capital Solutions:** Despite market volatility, the environment is expected to remain favorable in the intermediate term. **Future Operations & Impact:** - **Liquidity:** PJT expects to fund liquidity requirements through cash flows from operations and borrowings under the revolving credit facility. - **Share Repurchase:** The company repurchased 0.8 million shares for $127.1 million, with $150.5 million remaining under the current authorization. - **Dividends:** A quarterly dividend of $0.25 per share was declared. **Conclusion:** PJT Partners Inc. demonstrated improved profitability in Q1 2025 despite a slight decline in revenues. The company remains focused on managing liquidity and capital resources while navigating uncertain market conditions.