EVR

Evercore is a premier independent investment bank, and FY2025 captured the advisory upcycle in full. Revenue grew 29.5% to $3.88B and net income jumped 56.5% to $592M, lifting diluted EPS 54.7% to $14.05. The operating model is asset-light and high-return: net margin was 15.3% and return on equity an outstanding 29.1%, with liabilities/equity at a conservative 1.50x. Cash generation was strong — operating cash flow of $1.26B (+27.2%) against just $74M of capex — and cash rose 63.3% to $1.43B, leaving the firm overcapitalized for buybacks and dividends ($144M paid).

The business is fundamentally cyclical, and the filing is candid about it: 'Revenue generated by our Investment Banking & Equities business is related to the volume and value of the transactions in which we are involved,' and 'during periods of unfavorable market and economic conditions, our operating results may be adversely affected by a decrease in the volume and value of M&A transactions.' The five-year history shows the swing — net income ran $740M (FY2021), then fell to $477M and $255M during the 2022-2023 M&A drought, before recovering to $378M and now $592M. Management flags that fixed costs make profitability sensitive in downturns, and that restructuring revenue is only a partial, counter-cyclical offset.