PJT Partners Inc (NYSE:PJT) Q3 2025 Earnings: Record Revenue and Profit Beat Estimates

Last update: Nov 4, 2025

PJT Partners Inc (NYSE:PJT) has reported financial results for the third quarter of 2025, delivering a performance that notably surpassed analyst expectations. The investment bank's strong revenue growth and profitability have drawn significant attention from investors, resulting in a notable market reaction following the earnings announcement.

Record Quarterly Performance

The firm achieved record revenues for the third quarter, with total revenue reaching $447.1 million, representing a substantial 37% increase compared to the same period last year. This performance significantly exceeded Wall Street's revenue expectations of approximately $396 million. The company's earnings per share also came in well above estimates, with non-GAAP EPS of $1.85 beating analyst projections of $1.45 by approximately 28%.

Key revenue drivers for the quarter included:

Advisory fees of $389.8 million, up 37% year-over-year
Placement fees of $49.2 million, increasing 51% from the prior year
Total revenue growth of 37% for the quarter and 16% for the first nine months of 2025

Profitability and Expense Management

PJT Partners demonstrated improved operational efficiency during the quarter, with pretax income reaching $91 million, representing 20.3% of revenues. This marks a significant improvement from the 15.1% pretax margin achieved in the third quarter of 2024. The company maintained disciplined expense management while investing in business growth.

Notable expense metrics include:

Compensation and benefits expense of $303.3 million, representing 67.8% of revenues
Non-compensation expenses of $52.8 million, accounting for 11.8% of revenues
Total expenses as a percentage of revenues improved to 79.7% from 84.9% in the prior year period

Market Reaction and Capital Management

The market responded positively to the earnings beat, with the stock showing strong performance in pre-market trading. This reaction reflects investor confidence in the company's ability to exceed expectations during a period of economic uncertainty. The company's capital management strategy remained robust, with $521 million in cash and short-term investments and no funded debt as of September 30, 2025.

Capital management highlights include:

Quarterly dividend declaration of $0.25 per share
$87 million remaining in share repurchase authorization
Continued execution of unit exchange programs throughout the quarter

Business Segment Performance

The company's strong performance was driven by growth across its core business segments. Strategic advisory services showed particular strength, benefiting from increased client activity in mergers, acquisitions, and other corporate advisory work. The placement business also demonstrated robust growth, reflecting successful fundraising activities for alternative asset managers.

Outlook and Forward Expectations

While the earnings release did not provide specific forward-looking financial guidance, the company's current performance positions it well relative to analyst expectations for the full year. Wall Street estimates for PJT Partners include full-year 2025 revenue of approximately $1.66 billion and fourth-quarter revenue projections around $528 million. The company's year-to-date revenue of $1.18 billion through the first nine months suggests it is tracking ahead of these full-year estimates.

For investors seeking more detailed earnings analysis and future estimates, additional information is available through the company's earnings and estimates portal.

This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.