Moelis reported Q3 revenue growth, but the stock fell 2.5%, a roughly flat reaction. Capital markets revenue softened after a record first half as volatility delayed transactions, while management said completion timing remains dependent on market conditions.
- Q3 revenue was $426 million, up 13% year over year; revenue for the first nine months was $1.15 billion, up 10% and a record for that period.
- M&A revenue grew 40% year over year, driven by strategic M&A. Average fees per completed transaction reached records for both Q3 and the first nine months.
- Capital structure advisory had one of its strongest quarters on record; management said lender selectivity is making refinancing harder for lower-quality credits.
- Capital markets revenue was softer following a record first half, primarily due to volatility’s effect on transaction timing, despite record pipeline levels for transaction count and associated fees.
- New business origination and announced pipeline were up approximately 20% year over year, and total pipeline was at a record high; the firm also hired 24 Managing Directors year to date, with 11 expected to join over the rest of 2026 and into 2027.
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