Adjusted compensation expenses were $372 million, up from $316 million last year, maintaining an adjusted compensation expense ratio of 61.5%.
Adjusted earnings per share were $2.14, up 75% compared to the same quarter last year.
Adjusted effective tax rate was negative 0.8% compared to 31.2% last year, due to a policy change excluding stock-based compensation vesting impact.
Adjusted non-compensation expenses increased to $94 million from $80 million, with a non-compensation expense ratio steady at 15.6%.
Corporate Finance revenues were $399 million, a 21% increase over last year's first quarter, with 125 transactions closed versus 116 last year.
Financial and Valuation Advisory revenues were $79 million, a 16% increase from the prior year, with 957 fee events versus 847 last year.
Financial Restructuring revenues were $128 million, a 9% increase year-over-year, with 35 transactions closed compared to 33 last year.
Houlihan Lokey reported revenues of $605 million for the first quarter of fiscal year 2026, an 18% increase year-over-year.
Other income and expense produced income of approximately $8 million versus $5 million last year, driven by increased interest and other income from investment securities.
Adjusted noninterest expense decreased $12 million versus prior year to $521 million, reflecting seasonality and lower technology costs, but increased 3% year-over-year due to higher incentive compensation.
Average loans grew 5.6% annualized quarter-over-quarter and 3.7% year-over-year, with average deposits up 0.5% year-over-year but down 1.4% annualized quarter-over-quarter.
Common Equity Tier 1 ratio was 11%, with tangible book value per share growing 20% year-over-year.
Credit quality remained strong with net charge-offs at $10 million (7 bps annualized), nonperforming assets at 0.51% of loans, and allowance for credit losses at 1.2% of loans.
Diluted earnings per share was $1.63, up from $1.13 in the prior period and $1.28 year-over-year, including a $0.05 per share benefit from an SBIC portfolio investment.
Net earnings for Q2 2025 were $243 million, a 28% increase year-over-year and 44% increase quarter-over-quarter.
Net interest margin expanded for the sixth consecutive quarter to 3.17%, driven by lower funding costs and improved earning asset mix.
Noninterest income increased 4% quarter-over-quarter and 7% year-over-year, led by capital markets activity and customer-related fees.
Adjusted EBITDA from continuing operations was a loss of $5 million, down from a sub $1 million loss in Q2 2024, impacted by increased intangible amortization and interest expense related to the Beat acquisition.
Ambac reported a net loss from continuing operations of $21 million or $0.45 per share in Q2 2025, compared to a loss of $15 million or $0.33 per share in Q2 2024.
Everspan's net earned premiums declined 41% to $16 million, but loss ratio improved to 67.8% from 85.1%, and adjusted EBITDA improved by $1.7 million to $0.7 million.
Insurance Distribution revenues rose 148% to $33 million, with adjusted EBITDA on an operating basis of $5 million at a 13.9% margin.
Total revenues increased 8% to $55 million, driven by Insurance Distribution segment growth, while Everspan premiums declined due to underwriting repositioning.
Dafinchi