Financial Strength and Growth at Moelis & Company

Moelis & Company, a leading global independent investment bank, has reported strong financial results for the three and nine months ended September 30, 2025. The company has experienced significant growth in its revenues and profitability, driven by its diversified advisory business and prudent financial management.

Revenue Growth Moelis & Company’s revenues for the three months ended September 30, 2025 were $356.9 million, a 30% increase compared to the same period in 2024. For the nine-month period, revenues were $1,028.9 million, a 36% increase over the prior year. This growth was primarily driven by an increase in the average fees per completed transaction and the number of completed transactions.

The company earned revenues from 155 clients in the third quarter of 2025, compared to 163 clients in the same period of 2024. The number of clients that paid fees equal to or greater than $1 million increased from 67 to 72 over the same period. For the nine-month period, the company earned revenues from 290 clients in 2025, compared to 314 clients in 2024, with the number of clients paying $1 million or more increasing from 177 to 181.

Profitability Moelis & Company’s operating income for the three months ended September 30, 2025 was $48.3 million, a significant increase of 210% compared to the prior year period. For the nine-month period, operating income was $145.9 million, a 252% increase over 2024.

The company’s net income for the third quarter of 2025 was $60.1 million, a 212% increase from the same period in 2024. For the nine-month period, net income was $160.6 million, a 211% increase over the prior year.

These strong profitability results were driven by the company’s ability to effectively manage its operating expenses. Compensation and benefits expenses, which account for the majority of Moelis & Company’s operating costs, increased by 21% and 25% for the three and nine-month periods, respectively, in line with the growth in revenues. Non-compensation expenses, such as professional fees, travel, and technology costs, also increased but at a lower rate of 12% and 16% for the respective periods.

As a percentage of revenues, operating expenses decreased from 94% to 86% for the third quarter and from 95% to 86% for the nine-month period, demonstrating the company’s ability to leverage its cost structure as revenues grow.

Other Income and Expenses Moelis & Company’s other income and expenses, which include earnings from equity method investments, gains and losses on investments, and other infrequent items, also contributed to the strong financial performance.

For the third quarter of 2025, other income and expenses was $34.0 million, primarily driven by a $19.1 million gain from the sale of shares in the company’s investment in MA Financial. For the nine-month period, other income and expenses was $43.7 million, including the MA Financial gain as well as $13.4 million in net gains and income on other financial assets.

Liquidity and Capital Resources Moelis & Company maintains a strong balance sheet with substantial liquidity. As of September 30, 2025, the company had $201.8 million in cash equivalents and $79.8 million in cash, for a total of $282.4 million in cash and cash equivalents. Additionally, the company held $338.3 million in investments, primarily in sovereign debt securities.

The company has access to two revolving credit facilities totaling $50 million to provide additional working capital and general corporate purposes. As of September 30, 2025, the company had no borrowings under these facilities and had $45.0 million in available committed credit.

Moelis & Company’s liquidity is highly dependent on the successful completion of transactions, as the timing of receivable collections is typically within 60 days of billing. As of September 30, 2025, the company had $55.2 million in accounts receivable, net of allowances.

The company’s principal subsidiaries are subject to regulatory capital requirements in their respective jurisdictions to ensure financial soundness and liquidity. Moelis & Company actively monitors its regulatory capital base and believes it provides sufficient capital and liquidity to its subsidiaries to meet their business and regulatory requirements.

Dividends and Share Repurchases Moelis & Company’s Board of Directors declared a regular quarterly dividend of $0.65 per share, which will be paid on December 4, 2025 to Class A common stockholders of record on November 10, 2025. During the nine months ended September 30, 2025, the company paid aggregate dividends of $1.95 per share.

The company also repurchased 401,744 shares during the nine-month period, primarily from employees to settle tax liabilities incurred upon the delivery of equity-based compensation awards. As of September 30, 2025, the company had $46.6 million remaining under its $100 million share repurchase program authorized in July 2021.

Outlook and Risks Moelis & Company’s financial performance has been strong, driven by its diversified advisory business and prudent financial management. The company has seen significant growth in its capital markets and private capital advisory businesses, benefiting from trends in private credit, new technologies, and improved M&A activity.

However, the company notes that the impact of existing and future tariff policies, as well as the recent U.S. government shutdown, could potentially delay the timing of its revenues. Moelis & Company believes it is well-positioned to navigate these dynamic markets, with a strong balance sheet, substantial liquidity, and zero debt.

The company’s liquidity is highly dependent on the successful completion of transactions, and barriers to the completion of a restructuring or M&A transaction could limit the company’s fees. Additionally, the company’s revenues are not predictable, and high levels of revenues in one period may not be indicative of continued high levels in future periods.

Moelis & Company also faces risks related to its cash and short-term investments, including potential interest rate risk, equity price risk, credit risk, and exchange rate risk. The company does not currently hedge its exposure to foreign currency fluctuations.

Overall, Moelis & Company has demonstrated strong financial performance and growth, with a focus on prudent financial management and a diversified advisory business. The company’s outlook remains positive, though it is mindful of potential risks and uncertainties in the dynamic market environment.