Moelis (MC) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter revenues of $319.8 million, up 4% year-over-year, driven by strong M&A and Private Capital Advisory activity and higher average fees per transaction.

• Reported GAAP net income of $42.3 million, down 21% year-over-year, primarily due to a higher effective tax rate and increased non-compensation expenses.

• Continued strategic hiring, including new Managing Directors in private credit secondaries and Healthcare, with further leadership expansion planned.

• Returned $171.4 million to shareholders in Q1 2026 through dividends and share repurchases.

• Maintained a diversified revenue base and a capital-light, debt-free business model with strong free cash flow.

Financial highlights

• Q1 2026 revenues reached $319.8 million, a 4% increase year-over-year.

• GAAP net income was $42.3 million; adjusted net income was $43.1 million, both down 21% year-over-year.

• Adjusted compensation expense ratio improved to 65.8% from 69% in Q1 2025; non-compensation expense ratio was 21%.

• Adjusted pre-tax margin was 15%, up from 14% in the prior year.

• Returned $171.4 million to shareholders in Q1 via dividends and share repurchases.

Outlook and guidance

• Pipeline of announced transaction activity is near all-time highs, supporting optimism for continued growth despite near-term headwinds from geopolitical and market uncertainties.

• Full year 2026 non-compensation expenses expected to grow at a similar rate to 2025, driven by technology investments and headcount growth.

• Management remains focused on client delivery, talent investment, and long-term shareholder value.