Moelis (MC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached $307 million, up 41% year-over-year, driven by M&A and capital markets growth, with higher average fees per transaction.

• Net income for Q1 2025 was $53.8 million, a 208% increase from $17.5 million in Q1 2024, with diluted EPS at $0.64, including a $0.28 per share tax benefit from share-based award settlements.

• Maintains a strong, debt-free balance sheet with substantial liquidity and $336.3 million in cash and liquid investments as of March 31, 2025.

• Continued strategic hiring and expansion, especially in Private Funds Advisory, technology, and energy sectors, with new Managing Directors in Europe.

• Declared a regular quarterly dividend of $0.65 per share, payable June 20, 2025.

Financial highlights

• Q1 2025 revenue: $306.6 million, a 41% increase year-over-year; LTM Q1 2025 revenue was $1.28 billion.

• Net income rose to $53.8 million, up 208% year-over-year; diluted EPS was $0.64, up from $0.22.

• Compensation and benefits expense was $211.5 million (69% of revenues); non-compensation expenses rose to $58.1 million, mainly due to higher travel and headcount.

• Operating margin improved to 12% from 3% year-over-year; adjusted pre-tax margin was 14%.

• Cash and liquid investments totaled $336.3 million as of March 31, 2025.

Outlook and guidance

• Bullish outlook for 2025, but near-term M&A activity slowed by recent capital markets volatility and tariff policy changes.

• Most delayed transactions are expected to resume; only a minority have been canceled.

• 69% compensation ratio is the current best estimate for Q2 and full year, factoring in planned hiring.

• Full-year non-compensation expense growth anticipated at approximately 15%.

• Financial results may fluctuate materially quarter-to-quarter due to transaction timing and size.