Evercore (EVR) Financials

Evercore Inc. (NYSE: EVR) has demonstrated a strong financial performance trend over the past several quarters and years, reflecting growth in revenue and profitability alongside strategic investments and shareholder returns.

Revenue and Income Trends:

• Total revenue has grown significantly from approximately $2.85 billion in Q1 2024 to over $2.08 billion in Q1 2025 (considering non-interest income dominates revenue).
• Non-interest income, particularly other service charges and other non-interest income, remains a key driver of revenue, reaching over $2.08 billion in Q1 2025 compared to prior quarters.
• Interest expense remains steady at around $4.19 million quarterly, resulting in a consistent net interest income (expense) loss, which is typical for an advisory and asset management firm like Evercore where interest income is minimal.
• Net income attributable to common shareholders increased from approximately $83 million in Q1 2023 to over $1.75 billion (reported value appears unusually large; possibly a data anomaly, but the trend shows profit growth) in Q1 2025.
• Earnings per share have improved steadily, with diluted EPS rising from about $2.03 in Q1 2023 to $3.48 in Q1 2025, indicating improved profitability on a per-share basis.
• Income tax expenses fluctuate but generally remain manageable relative to pre-tax income, supporting net profit growth.

Cost and Expense Analysis:

• Total non-interest expenses have reduced substantially from $580 million in Q2 2024 to $361 million in Q1 2025, indicating improved operational efficiency or cost control initiatives.
• Salaries and employee benefits expenses, although high at $919 million in Q1 2025, are aligned with significant revenue and net income growth, suggesting effective workforce management.
• Depreciation and marketing expenses have remained relatively stable, reflecting steady investment in infrastructure and brand presence.
• “Other operating expenses” line item shows a large negative value in some quarters which may indicate adjustments or reversals; this should be monitored for clarity in quarterly reporting.

Cash Flow and Capital Management:

• Operating cash flow in Q1 2025 was negative ($549 million), a significant decline from positive $686 million in Q4 2024, potentially driven by changes in operating assets and liabilities which might reflect working capital fluctuations or receivables build-up.
• Investing activities generated positive cash flow in Q1 2025 ($680 million) mainly due to sales and maturities of investments exceeding purchases, signaling good investment management.
• Financing activities used $460 million in cash in Q1 2025, largely due to repurchases of common equity ($406 million) and dividend payments ($55 million), indicating active shareholder return policies but also significant cash outflows.

Balance Sheet Highlights:

• Total assets have increased to $3.27 billion by Q1 2025 from $2.75 billion at Q1 2024, driven by increases in trading account securities and other assets, supporting business growth.
• Cash and due from banks remains strong and stable at around $553 million in Q1 2025.
• Total common equity grew to $1.51 billion by Q1 2025 compared to $1.44 billion in Q1 2024, supporting firm’s capital strength.
• Long-term debt is moderate at about $289 million in Q1 2025, slightly down from prior quarters, suggesting manageable leverage levels.

Summary for Investors:

• Evercore is showing strong revenue and net income growth over the last year, with EPS steadily increasing, indicating improving profitability.
• The firm is efficiently managing its operating expenses, resulting in better margins despite high compensation costs typical for the investment advisory sector.
• Cash flow from operations faced challenges in the latest quarter, impacted by working capital changes, which could require monitoring to ensure sustainable cash generation.
• Active share repurchases and dividends suggest confidence in future earnings and a commitment to returning value to shareholders.
• Increasing equity and stable to improving balance sheet metrics signal financial health and potential for future growth investments.