Moelis & Company — Third Quarter 2026 Earnings Summary

Financial Performance

• Third quarter GAAP and Adjusted revenues were $425.6 million, representing a 13% increase from the prior year period; first nine months GAAP and Adjusted revenues reached a record $1,154.7 million, a 10% increase year-over-year.
• Third quarter 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) versus $58.9 million ($0.68 per share diluted) in the prior year.
• First nine months 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) versus $158.8 million ($1.86 per share diluted) in the prior year.
• Third quarter Adjusted pre-tax margin was 21.4% compared to 22.2% in the prior year period; first nine months Adjusted pre-tax margin was 18.6% compared to 18.2% in the prior year period.
• Third quarter 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 total operating expenses were $959.5 million (GAAP) and $954.8 million (Adjusted), up 9% from the prior year.
• Compensation and benefits expenses for the third quarter were $282.4 million (GAAP) and $280.0 million (Adjusted), up 11% and 12% respectively from the prior year; first nine months were $762.2 million (GAAP) and $759.8 million (Adjusted), up 6% and 7% respectively.
• Non-compensation expenses for the third quarter were $61.3 million (GAAP and Adjusted), up 15% and 17% respectively from the prior year; first nine months were $197.4 million (GAAP) and $195.0 million (Adjusted), up 20% and 19% respectively.
• Other income was $8.8 million (GAAP) and $6.8 million (Adjusted) for the third quarter, down 74% and 23% respectively from the prior year; first nine months were $16.9 million (GAAP) and $15.3 million (Adjusted), down 61% and 19% respectively.
• The prior year third quarter included a $19.1 million gain from 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, strong client activity levels, and continued investments in talent.
• Revenue growth is attributed to an increase in average fees earned per completed transaction.
• The firm noted that revenues and net income can fluctuate materially depending on the number, size, and timing of completed transactions.

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 operates as a leading global independent investment bank serving corporations, governments, and financial sponsors across North and South America, Europe, the Middle East, and Asia-Pacific.
• The firm provides comprehensive integrated financial advisory services including mergers and acquisitions, recapitalizations, restructurings, capital markets transactions, and secondary transactions.

Risks and Challenges

• Financial results may not be representative of future results over a longer period due to material fluctuations in revenues and net income based on transaction volume, size, and timing.
• Forward-looking statements are subject to risks and uncertainties, including factors described in the firm's Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings.

Management Commentary and Tone

• Navid Mahmoodzadegan, Chief Executive Officer and Co-Founder, stated that record revenues for the first nine months reflect continued momentum across the business and the strength of the expanded platform.
• Management emphasized a focus on executing a growth strategy through the recruitment of exceptional talent to deliver long-term value for clients and shareholders.

Other Key Points

• The Board of Directors declared a regular quarterly dividend of $0.65 per share, payable on December 17, 2026, to stockholders of record on November 16, 2026.
• The firm maintains a strong balance sheet with $658.7 million in cash and short-term investments and no funded debt.
• During the first nine months of 2026, the firm repurchased 2.6 million shares for a total cost of $159.5 million; 0.3 million shares were repurchased in the third quarter for $18.7 million.
• Total shareholder returns for the first nine months of 2026, including the declared dividend, amounted to $317.6 million.
• Adjusted results assume 100% of the firm's operating result is taxed at the corporate effective tax rate, whereas GAAP results reflect the partnership structure where 91% is owned by the corporate partner and 9% by other partners.
• Adjusted results include reclassifications of gains on founder investments and mark-to-market impacts of equity instruments received as payment for banking services to revenues.
• Adjusted compensation expenses include credits for compensation awards forfeited or returned by former employees.