Risk factors

The risk section adds a proposed Eucalyptus acquisition for up to $1.15 billion, with closing, funding, integration, and retention risks.

New tariff disclosures cite 2025 U.S. duties of 10–125% on imports and warn of higher costs, weaker demand, and supply-chain disruption.

Red Sun’s second $10 million payment is overdue; VRB Energy has demanded payment and is pursuing recourse.

CROSSBOW adds defense growth uncertainty: procurement, competition, testing, and evolving U.S. rules may block commercialization or deployment.

Top-three customers’ revenue share rose from 47% to 49%, while most large customers have long-term supply agreements but no minimum purchases.

Interest-rate risks now emphasize volatility-driven margin calls, collateral needs, and weaker mortgage-market liquidity.

Newly disclosed risks cover U.S. tariffs and AI use, including input-cost, compliance, cybersecurity, and intellectual-property exposure.

New deposit risk highlights competition from alternatives such as stablecoins and the cost of replacing outflows with wholesale funding.

U.S. government contracts generated 68% of 2025 revenue; competitor bid protests are causing further award delays.

Top-five customer sales concentration fell from 12% to 11%; the largest customer remained at 3%.

New AI risks reflect expanding use of tools and autonomous workflows, third-party dependence, competitor adoption, and clients substituting AI for Lazard services.

Offshore data storage is now identified as increasing cyber risk through weaker standards and reduced security visibility and control.