Moelis & Company (MC) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 revenues reached $365.4 million, up 38% year-over-year; first half revenues were $672.0 million, up 39% year-over-year, marking a record for the period.

• LTM 2Q 2025 revenue was $1,384 million, reflecting 167% growth since FY 2014 and strong global expansion.

• Net income for the first half of 2025 was $100.5 million, up 210% from the prior year; Q2 2025 GAAP net income was $46.8 million, up 213%.

• Leadership transition announced: Navid Mahmoodzadegan to become CEO, with Ken Moelis moving to Executive Chairman.

• Maintains a capital-light, debt-free business model with high free cash flow and strong balance sheet.

Financial highlights

• Q2 2025 revenues: $365.4 million (+38% YoY); first half 2025 revenues: $672.0 million (+39% YoY).

• Q2 2025 operating income: $60.6 million; Q2 2025 GAAP net income: $46.8 million; Q2 2025 Adjusted net income: $45.5 million.

• Compensation and benefits expense was 69% of revenues in Q2 and first half 2025; non-compensation expense ratio was 14.4% in Q2 2025.

• Cash and liquid investments stood at $474.9 million as of June 30, 2025, with no debt.

• Regular quarterly dividend of $0.65 per share declared, payable September 18, 2025.

Outlook and guidance

• Entering the second half of 2025 with strong momentum, a robust transaction pipeline, and improved market conditions.

• Management remains optimistic about continued M&A and capital markets activity, supported by high sponsor capital and unsold portfolio companies.

• Full-year non-compensation expense growth expected to be approximately 15% over the prior year.

• No fixed formula for compensation ratio in 2025; will be driven by top-line performance.

• Capital return to shareholders, including potential stock repurchases, under active consideration.