Moelis & Company Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue rose 13% YoY, with M&A up 40% and total pipeline at a record. Management expects 19% full-year non-compensation expense growth and sees strong demand across advisory businesses.
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Q2 and H1 2026 set revenue records, driven by strong M&A, capital markets, and private capital advisory performance. Margins improved, expenses rose with business activity, and the firm entered H2 with a record pipeline and robust outlook.
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Leadership is focused on expanding capabilities, maintaining a collaborative culture, and hiring top talent. M&A and capital markets activity remain strong, with AI driving strategic decisions and sector shifts. Investments in AI and new business lines support long-term growth.
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Record Q1 revenues rose 4% year-over-year, driven by strong M&A and private capital advisory, with robust hiring and a record pipeline supporting a positive outlook. Compensation and expense ratios improved, and $171 million was returned to shareholders.
Fiscal Year 2025
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Record 2025 revenues and EPS growth were driven by strong M&A and capital markets activity, improved operating leverage, and significant investments in talent. The outlook for 2026 is positive, with robust pipelines and further expansion expected in PCA and middle-market M&A.
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Leadership transition was smooth, with a strong focus on talent and culture. Strategic growth continues in Capital Markets, Technology, Oil & Gas, and PCA, with AI and data integration enhancing productivity. M&A outlook is broadly optimistic, and financial discipline remains a priority.
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Q3 2025 adjusted revenue rose 34% year-over-year to $376M, with strong M&A and capital markets growth. The firm expanded its Managing Director team, maintained a robust pipeline, and expects further deal activity acceleration amid a supportive regulatory and market environment.
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Second quarter revenues rose 38% year-over-year to a record $365 million, driven by M&A and capital markets. The firm enters the second half with strong momentum, a robust pipeline, and a leadership transition, while capital return to shareholders is under review.
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Leadership transition is set for October 1, with a focus on internal talent development and strategic continuity. Expansion in private funds advisory and technology adoption are key growth drivers, while M&A remains the core business. AI and efficiency initiatives are expected to support long-term margin improvement.
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Q1 2025 revenue rose 41% year-over-year to $307 million, driven by M&A and capital markets, with a 69% compensation ratio and strong cash position. Recent policy-driven volatility has delayed, but not derailed, most deals, and strategic hiring continues, especially in Private Funds Advisory and tech.
Fiscal Year 2024
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Fourth quarter revenues more than doubled year-over-year, with strong growth across all products and sectors, especially technology. The firm increased its dividend, maintained a debt-free balance sheet, and expects higher non-comp expenses in 2025 as it continues to invest in talent and technology.
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Transaction finance is rapidly shifting from banks to private credit, with regulatory changes and animal spirits driving a rebound in M&A and capital markets activity. Strategic investments in tech and talent position the firm for growth, with a focus on U.S. fee pools and margin expansion as revenue normalizes.
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Adjusted revenues rose 18% year-over-year to $763 million for the first nine months, with M&A and non-M&A segments maintaining a 60/40 split. Gradual improvement in deal activity continues, though completion times remain extended, and the firm sustains a strong balance sheet and dividend.
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Revenues surged 45% year-over-year in Q2, driven by broad-based growth and a recovering M&A market. Sponsor and capital markets activity is rising, with a healthy backlog and strong balance sheet. Outlook remains positive, with further acceleration expected as market conditions improve.