Moelis & Company reported fourth‑quarter 2025 results that surpassed analyst expectations, with revenue rising 11% year‑over‑year to $487.9 million and adjusted earnings per share of $1.13, a $0.30 beat over the consensus estimate of $0.83. The company’s full‑year 2025 revenue climbed 28% to $1.54 billion, while adjusted EPS reached $2.99, exceeding the $2.94 consensus estimate by $0.05.
Revenue growth was driven by a 35% increase in M&A activity and a record‑setting year for the capital markets business. The capital markets segment generated $1.12 billion in revenue, up 12% from the prior year, reflecting higher transaction volumes and stronger fee multiples. M&A revenue grew 35% to $1.07 billion, supported by a surge in both domestic and cross‑border deals. Private Capital Advisory, a newer focus area, added $70 million in revenue, indicating early traction in the GP‑led secondary market.
The earnings beat was largely a result of disciplined cost management and an improved operating mix. Adjusted pre‑tax margin expanded to 21.5% for the full year, up from 16.4% in 2024, driven by higher‑margin capital markets work and a lower compensation ratio. Operating leverage also helped, as revenue grew while operating expenses increased at a slower pace. The company’s focus on high‑margin advisory services and efficient capital deployment contributed to the margin lift.
Moelis declared a regular quarterly dividend of $0.65 per share, payable on March 26, 2026 to shareholders of record on February 17, 2026. The board also approved a new $300 million share‑repurchase authorization, extending the program’s capacity to return capital to investors. Management reiterated confidence in a robust transaction environment for 2026, noting that the firm is positioned to capture continued growth in both M&A and capital markets.
CEO Navid Mahmoodzadegan said the company “closed 2025 with significant momentum and entered 2026 from a position of strength.” He highlighted the 35% M&A growth, record capital markets performance, and the early traction of the Private Capital Advisory business as key drivers of the year‑end results. The company’s strong balance sheet—$849 million in cash and no debt—provides flexibility to fund future growth and return capital to shareholders.
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