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    LCLN
    Earnings call· Jun 2026(Q2 FY26)

    Lincoln International Q2 FY26 earnings call LCLN

    Aug 6, 2026 Source

    Executive summary

    Lincoln International Q2 FY26 — Record Revenue and Adjusted Earnings Post-IPO

    Lincoln International reported strong Q2 FY26 results, achieving record revenues and adjusted earnings in its first quarter as a public company, driven by broad-based strength in both Investment Banking and Valuation & Opinions segments. The firm is optimistic about the improving market backdrop and its robust pipeline, positioning it for continued growth despite persistent macroeconomic uncertainties. Management highlighted the benefits of strategic talent investments and a diversified platform.

    Highlights

    5

    • Reported record second quarter and first half revenues and adjusted earnings for its initial quarterly results as a public company.

    • Total revenue grew 51% year-over-year to $226 million in Q2 FY26.

    • Investment Banking revenues increased 56% year-over-year, and Valuation and Opinions revenues grew 35% year-over-year in Q2 FY26.

    • Adjusted diluted earnings per share was $0.26 in Q2 FY26.

    • Closed 140 transactions year-to-date, up 46% from the prior year.

    Concerns

    3

    • Software practice continues to face some headwinds, though beginning to improve.

    • Uncertainty from macroeconomic and geopolitical factors persists.

    • Retailization of private capital markets is leading to 'speed bumps, roadblocks' and a learning curve for investors regarding limited redemptions in long-term assets.

    Guidance & targets

    4
    CategoryTargetConfidence
    Adjusted compensation ratio
    around 61%
    medium materiality
    High
    Adjusted effective tax rate
    around 31%
    medium materiality
    High
    Non-compensation expense growth
    High single digits
    medium materiality
    High
    Q4 revenue contribution
    30% to 40% of the year
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Investment Banking Advisory
    Driven by M&A, Capital Advisory, and Private Funds Advisory, all generating double-digit revenue growth. Backlog continues to build, supported by strong new business activity. European business is more back-loaded for the year.
    Transactions closed YTD: 140Transactions closed Q2: 73Transactions closed Q1: 67Q2 transactions increase from Q1: 9%Average fee in Q2: increased meaningfully from Q1Highest transaction fee to-date: achieved in Q2
    		$178 million56%——
    Valuations and Opinions
    Strong growth driven by increased demand for Portfolio Valuations and Transaction Opinions, supported by growth in AUM, more frequent reporting requirements, and retail-oriented market products. Retailization of private capital markets is a key driver.
    Portfolio Valuations completed Q2 YoY: 19% morePortfolio companies evaluated: 7,400Portfolio companies evaluated YoY: up 19%
    		$48 million35%——

    Operational metrics

    20
    Total Revenue
    $226 millionup 51% YoY
    Q2 FY26

    Record second quarter revenue.

    Adjusted Diluted EPS
    $0.26
    Q2 FY26

    Record second quarter adjusted earnings. No comparable EPS figure in prior year due to partnership structure pre-IPO.

    Adjusted Operating Margin
    20%
    Q2 FY26
    Adjusted Net Income Growth
    48%YoY
    Q2 FY26
    Total Revenue
    $383 millionup 36% YoY
    H1 FY26

    Record first half revenue.

    Investment Banking Revenue Growth
    39%YoY
    H1 FY26
    Valuations and Opinions Revenue Growth
    29%YoY
    H1 FY26
    Adjusted Compensation Expense
    $138 million
    Q2 FY26
    Adjusted Compensation Ratio
    61%
    Q2 FY26
    Adjusted Non-Compensation Expense
    $42 million
    Q2 FY26
    Adjusted Non-Compensation Ratio
    18.7%vs 24% in Q2 FY25
    Q2 FY26

    Improved from prior year due to operating leverage from strong top-line growth.

    Adjusted Effective Tax Rate
    34%vs 26% in Q1 FY26
    Q2 FY26
    Cash and Cash Equivalents
    $251 million
    Q2 FY26

    As of quarter end.

    Long-Term Debt
    $102 million
    Q2 FY26

    As of quarter end.

    Net Cash Position
    $149 million
    Q2 FY26

    As of quarter end.

    Quarterly Cash Dividend Per Share
    $0.07
    Q2 FY26

    Declared by Board of Directors.

    Total Managing Directors
    162
    Q2 FY26

    Firm-wide.

    Managing Directors Promoted
    6
    FY26
    Lateral Managing Directors Hired
    7
    H1 FY26

    Across key sectors such as Asset and Wealth Management, Pharmaceutical Services, Technology, Restructuring, Capital Advisory and Transaction Opinions.

    Managing Directors Hired
    30+
    FY24-FY25

    Across nearly all products and geographies, following a strategic push.

    Product announcements

    2
    ProductTypeDetails
    S&P Lincoln Senior Debt Index Serieslaunch
    Lincoln Lens Client Portallaunch

    Deals & partnerships

    1
    MarshBerryAcquisition of a firm specializing in insurance and wealth management advisory.

    Acquisition completed in October 2025. Strategic rationale was to marry their expertise with Lincoln's private equity relationships, yielding successes.

    Risks & headwinds

    3
    Software practice headwindsOngoing, but improving

    Underweighted relative to other sectors, but beginning to improve as AI benefits/disruption become clearer.

    Mitigation: Market beginning to improve as clarity emerges on AI beneficiaries.

    Macroeconomic and geopolitical factorsOngoing

    Uncertainty has not disappeared; closely monitored.

    Mitigation: Firm believes environment is more constructive than Q1, with potential for transaction activity to build momentum.

    Retailization of private capital markets leading to 'speed bumps, roadblocks' and learning curve for investorsOngoing

    Long-term assets with limited redemptions require a learning process for retail investors.

    Mitigation: Management believes retailization is happening and will continue, with learnings along the way. Not affecting debt capital market liquidity for transactions.

    What to watch in Q3 FY26

    5

    MarshBerry backlog conversion

    H2 FY26
    CurrentLargest ever relative to H2 targets
    TargetAchieve H2 targets

    Why it matters

    MarshBerry is a significant acquisition, and its performance is key to overall firm revenue and the success of the integration strategy.

    One piece of data is that their backlog at this point in the year is the largest it's ever been relative to what they need to achieve in the back half of the year.

    Q&A highlights

    7

    Inquired about the performance and outlook for the MarshBerry business post-acquisition, given its substantial contribution to revenue.

    Management stated MarshBerry is on track for its forecast, with its backlog at a record high for the back half of the year. They highlighted the strategic success of combining MarshBerry's insurance/wealth expertise with Lincoln's private equity relationships.

    “That business is on track for its forecast. Our business as a whole, our Investment Banking business as a whole, I think as most people know, tends to be a back-end loaded business with the fourth quarter being the most important quarter. That's more pronounced in their business historically. One piece of data is that their backlog at this point in the year is the largest it's ever been relative to what they need to achieve in the back half of the year.”

    asked by James Yaro · answered by Robert Brown

    2 min read6 chapters

    Detailed Narrative

    01

    IPO and Strategic Vision

    Lincoln International successfully completed its IPO on May 20, providing capital and flexibility for growth while preserving its culture. The firm aims to accelerate its long-term vision of becoming the leading investment banking advisory firm in global private capital markets, broadening ownership across the organization and aligning incentives with shareholder value creation.

    02

    Market Backdrop and Outlook

    The market environment is improving, with moderating geopolitical risks and a healthy economy supporting increased M&A activity and confidence. While the recovery is in early stages and some sectors lag, private equity remains a powerful catalyst due to elevated dry powder and extended hold periods. The firm believes the environment is more constructive than Q1, with potential for transaction activity to build momentum.

    03

    Talent Investment and Productivity

    Lincoln has prioritized Managing Director hiring, bringing on 7 lateral MDs in H1 2026 and promoting 6 at the start of the year, bringing the total to 162 firm-wide. Over 30 MDs were hired in 2024-2025. These investments are expected to drive growth and improve productivity as new hires integrate and ramp up, contributing more meaningfully to results.

    04

    Compensation Philosophy Evolution

    The firm is transitioning from deferred cash awards to equity awards (RSUs) as a meaningful component of long-term compensation, granted to every employee post-IPO. This shift is expected to provide a temporary benefit to the adjusted compensation ratio over the next three years due to longer amortization of stock comp, while enhancing retention and shareholder alignment.

    05

    MarshBerry Integration and Performance

    The MarshBerry acquisition, completed in October 2025, is on track for its forecast. The business's backlog is at its largest ever relative to its H2 targets. The strategic rationale for the deal was to combine MarshBerry's insurance and wealth management expertise with Lincoln's private equity relationships, which is yielding successes.

    06

    European Business Trajectory

    The European business is on a strong trajectory, with a more back-loaded revenue profile compared to the U.S. business for the year. The firm has evolved its European strategy from regional focus to industry and product expertise, which has contributed to a growing backlog and market share gains. Geopolitical factors have not significantly extended deal timelines in Europe, with the current environment being perceived as a 'new normal.'

    AI-generated summary of the company’s earnings call. Not investment advice.