Lincoln International Q3 Revenue Jumps 57% as Adjusted Margin Expands

Lincoln International Inc. reported a 57% increase in third-quarter 2026 revenue as higher transaction activity, stronger demand for private-market valuation services and the inclusion of acquired MarshBerry operations lifted both of its main businesses. Adjusted operating income nearly tripled, while lower adjusted expense ratios widened the adjusted operating margin by 11 percentage points.

Revenue for the three months ended September 30 rose to $293.7 million from $186.7 million a year earlier. Adjusted operating income increased 186% to $71.9 million, and the adjusted operating margin expanded to 24.5% from 13.5%.

Adjusted net income climbed 150% to $50.2 million, equivalent to adjusted diluted earnings per share of $0.46. On a GAAP basis, operating income was $44.3 million, net income was $37.9 million and diluted earnings per share was $0.25.

The adjusted compensation ratio declined to 61.0% from 68.5%, while the adjusted non-compensation ratio fell to 14.6% from 18.0%. Lincoln said its variable compensation structure and continued management of non-compensation costs support its operating approach.

Advisory and valuation revenue advance

Investment Banking Advisory revenue rose 70% to $239.9 million. The company attributed the increase primarily to a greater number of completed transactions, higher average fees and the contribution from MarshBerry, which Lincoln acquired in October 2025.

Valuations and Opinions revenue increased 18% to $53.8 million, driven by demand for portfolio valuations and transaction opinions. The business provides portfolio valuations, fairness and solvency opinions, and board advisory services across private-market asset classes.

For the first nine months of 2026, total revenue increased 45% to $677.1 million. Investment Banking Advisory revenue rose 51% to $527.5 million, while Valuations and Opinions revenue grew 25% to $149.7 million. Lincoln said the valuation business benefited from a higher frequency and number of portfolio companies valued, as well as more transaction opinions delivered.

Year-to-date adjusted operating income more than doubled to $144.6 million from $68.2 million, with the adjusted operating margin reaching 21.4% versus 14.6%. Adjusted net income increased 76% to $95.8 million, or $0.87 per adjusted diluted share.

The year-over-year comparisons have limitations. The 2025 periods were not presented on a pro forma basis for the MarshBerry acquisition or changes associated with Lincoln’s May 2026 initial public offering. The company’s non-GAAP measures also adjust prior-period partner compensation to reflect its post-IPO accounting structure.

Capital allocation remains focused on growth and balance-sheet flexibility

Lincoln ended September with $363 million of cash and $102 million of debt, resulting in net cash of $261 million. The company used $254 million of IPO proceeds to repay debt and said its capital priorities include developing internal talent, making strategic hires, investing in technology and pursuing acquisitions that complement its culture and long-term strategy.

The presentation also indicated a dividend of $0.07 per share for the fourth quarter of 2026. Lincoln plans to maintain a quarterly dividend supported by cash flow and its capital-light model, while evaluating share repurchases to offset dilution over the medium term.

Lincoln identified talent retention and recruitment, acquisition integration—including MarshBerry—changing economic and geopolitical conditions, revenue volatility, competition, cybersecurity, operational risks, regulation and its organizational structure as factors that could cause future results to differ from management’s expectations.