Moelis (MC) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenues of $488 million and full-year adjusted revenues of $1.54 billion, up 28% from 2024, driven by strong M&A and capital markets activity.

• Full-year GAAP net income was $259.6 million ($2.94/share diluted); adjusted net income was $256.4 million ($2.99/share diluted), both up over 70% year-over-year.

• Significant investments in talent, with 21 new managing directors added in 2025 and 13 promoted in early 2026, bringing the total to 178.

• Maintained a capital-light, high free cash flow business model with no debt and a strong balance sheet.

• Advised on major M&A transactions, including Netflix's acquisition of Warner Bros. Discovery and Ventyx Biosciences' sale to Eli Lilly.

Financial highlights

• Q4 revenues reached $488 million, up 11% year-over-year; full-year adjusted revenues were $1.54 billion, up 28%.

• Adjusted full-year EPS was $2.99, up from $1.82 in 2024; adjusted pre-tax margin increased to 21.5% for 2025.

• Q4 adjusted pre-tax margin was 28.6%; Q4 adjusted EPS was $1.13.

• Adjusted compensation expense ratio improved to 65.8% for 2025, down from 69% in 2024; Q4 compensation ratio was 61.1%.

• Ended 2025 with $848.8 million in cash and liquid investments, no debt or goodwill.

Outlook and guidance

• Expect continued growth in M&A, with middle-market activity anticipated to increase in 2026 as sponsor engagement rises.

• Capital markets and private capital advisory (PCA) businesses are positioned for further expansion, with PCA expected to see meaningful revenue growth in 2026.

• Management expects continued growth momentum into 2026, citing a strong coverage platform and ongoing execution of growth strategy.

• Non-compensation expenses projected to grow at a similar rate in 2026 as in 2025, reflecting ongoing investments in technology and headcount.

• Ongoing commitment to high pre-tax margins and efficient capital return to shareholders.