Moelis & Company — Third Quarter and First Nine Months 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 GAAP and Adjusted revenues were $425.6 million, a 13% increase from the prior year period; first nine months 2026 GAAP and Adjusted revenues were $1,154.7 million, a 10% increase from the prior year period.
• Third quarter 2026 GAAP net income was $66.6 million ($0.74 per share diluted) compared to $58.9 million ($0.68 per share diluted) in the prior year; Adjusted net income was $64.7 million ($0.75 per share diluted) compared to $58.9 million ($0.68 per share diluted).
• First nine months 2026 GAAP net income was $164.0 million ($1.83 per share diluted) compared to $158.8 million ($1.86 per share diluted) in the prior year; Adjusted net income was $161.9 million ($1.87 per share diluted) compared to $158.8 million ($1.86 per share diluted).
• Third quarter 2026 Adjusted pre-tax margin was 21.4% versus 22.2% in the prior year period; first nine months 2026 Adjusted pre-tax margin was 18.6% versus 18.2% in the prior year period.
• Third quarter 2026 total operating expenses were $343.7 million (GAAP) and $341.3 million (Adjusted), up 11% and 13% respectively from the prior year; first nine months 2026 total operating expenses were $959.5 million (GAAP) and $954.8 million (Adjusted), up 9% from the prior year.
• Third quarter 2026 compensation and benefits expenses were $282.4 million (GAAP) and $280.0 million (Adjusted), up 11% and 12% respectively from the prior year; first nine months 2026 compensation and benefits expenses were $762.2 million (GAAP) and $759.8 million (Adjusted), up 6% and 7% respectively from the prior year.
• Third quarter 2026 non-compensation expenses were $61.3 million (GAAP and Adjusted), up 15% and 17% respectively from the prior year; first nine months 2026 non-compensation expenses were $197.4 million (GAAP) and $195.0 million (Adjusted), up 20% and 19% respectively from the prior year.
• Third quarter 2026 other income was $8.8 million (GAAP) and $6.8 million (Adjusted), down 74% and 23% respectively from the prior year; first nine months 2026 other income was $16.9 million (GAAP) and $15.3 million (Adjusted), down 61% and 19% respectively from the prior year.
• The prior year period included a $19.1 million gain on the sale of 5.0 million shares of MA Financial Group Limited, which was reclassified to Adjusted revenues.

Guidance and Future Outlook:

• Management stated the firm is well-positioned to capitalize on attractive growth opportunities with a record pipeline and strong levels of client activity.
• The firm continues to execute on its growth strategy with a focus on expanding its platform and investing in talent.

Business Segments and Product Lines:

• Year-to-date, 13 Managing Directors joined the firm focused on Private Capital Advisory, Debt Capital Markets and Private Credit, Energy, Chemicals, Healthcare, Capital Structure Advisory, Sponsors, Infrastructure, and Family Office coverage.
• 11 additional Managing Directors are committed to joining in 2026 and 2027, including three in Private Capital Advisory, four in Technology, Media & Telecommunications, two in Europe focused on Industrials, and two in Financial Institutions.

Market and Competitive Landscape:

• The firm reported record revenues for the first nine months of the year, reflecting continued momentum across its business and the strength of its expanded platform.
• Revenue growth in both current year periods was attributable to an increase in average fees earned per completed transaction.

Risks and Challenges:

• Revenues and net income can fluctuate materially depending on the number, size, and timing of completed transactions.
• Financial results in any particular quarter may not be representative of future results over a longer period of time.
• Forward-looking statements are subject to various risks and uncertainties, including factors described in the firm's Annual Report on Form 10-K for the year ended December 31, 2025.

Management Commentary and Tone:

• Navid Mahmoodzadegan, Chief Executive Officer and Co-Founder, stated: "We reported record revenues for the first nine months of the year, reflecting continued momentum across our business and the strength of our expanded platform. With a record pipeline, strong levels of client activity, and continued investments in exceptional talent, we are well positioned to capitalize on attractive growth opportunities and deliver long-term value for our clients and shareholders."

Other Key Points:

• The firm declared a regular quarterly dividend of $0.65 per share, payable on December 17, 2026, to common stockholders of record on November 16, 2026.
• As of September 30, 2026, the firm held cash and short-term investments of $658.7 million and had no funded debt on its balance sheet.
• During the first nine months of 2026, the firm repurchased 2.6 million shares in the open market and through net share settlement for a total cost of $159.5 million.
• Including the dividend declared, the firm will have returned $317.6 million to shareholders with respect to the first nine months of 2026.
• During the third quarter of 2026, the firm repurchased 0.3 million shares for a total cost of $18.7 million.
• GAAP and Adjusted net income in the first nine months of 2026 include net tax benefits of approximately $0.11 per share related to the settlement of share-based awards, compared to $0.28 per share in the prior year period.
• The firm's Adjusted results assume 100% of the operating result was taxed at the corporate effective tax rate.