Moelis & Company Earnings Recaps
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.
Key takeaways
- 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.
Moelis & Company shares fell 6.6% post-earnings, as investors looked past record quarter revenues to focus on segment weakness and cautious commentary around near-term deal activity. While M&A and advisory fees hit new highs, declines in capital structure advisory and capital markets weighed on the quarter's mix and outlook.
Key takeaways
- Reported record first quarter revenues of $320 million, up 4% year-over-year, led by M&A and private capital advisory.
- Revenue growth was partially offset by declines in capital structure advisory and capital markets, signaling uneven strength across business lines.
- Management noted that while pipelines are strong and activity is high in some areas, "near-term headwinds" persist due to macro disruptions, particularly in the transactional environment.
- Hired 8 new Managing Directors year-to-date and continued investment across key growth verticals, though expense and hiring impacts were not fully detailed.
- Repurchased 1.9 million shares in the quarter; balance sheet remains debt-free with "substantial cash."
Moelis & Company reported robust Q3 2025 results with adjusted revenues of $376 million, reflecting a 34% year-over-year increase, driven by strong M&A and Capital Markets activities.
Key takeaways
- Year-to-date adjusted revenues reached $1.05 billion, up 37% compared to the same period last year.
- The firm is actively enhancing its talent pool, adding 10 managing directors year-to-date, bolstering expertise across key sectors.
- Capital Markets revenues more than doubled versus the prior year, positioning the company for a record year.
- Adjusted pre-tax margin improved to 22.2% for Q3, signifying strong operational efficiency.
- A quarterly dividend of $0.65 was declared, with share repurchases totaling approximately $14.5 million, reinforcing the company's commitment to returning capital to shareholders.