Moelis & Company Caps 2025 with Record Revenues, Eyes Active 2026 Deal Market
NEW YORK – Moelis & Company (NYSE: MC) concluded its 2025 fiscal year on a high note, posting record fourth-quarter revenues and signaling confidence in a resurgent mergers and acquisitions environment for the year ahead. The boutique investment bank, known for its advisory work, reported a significant uptick in client engagement and new business wins, which executives directly linked to strategic hiring and a broadening service portfolio.
For the final quarter of 2025, Moelis announced revenues of $488 million, an 11% increase year-over-year. Full-year adjusted revenues climbed to $1.54 billion, marking a 28% surge from 2024. CEO and Co-founder Navid Mahmoodzadegan attributed the performance to a 35% growth in M&A advisory, a "record-setting" year for capital markets, and higher average fees across a greater number of completed deals.
"We are entering 2026 with significant momentum," Mahmoodzadegan stated during the earnings call. "Constructive financing markets and strong equity performance are setting the stage for an active transaction environment." He noted that corporate boards are gaining the confidence to pursue larger, transformative deals, while private equity sponsors are under increasing pressure to deploy capital, improving the outlook for sponsor-led activity.
Chief Financial Officer Chris Callesano highlighted improved operational efficiency. The firm's adjusted compensation ratio fell to 65.8% for the full year from 69% in 2024, contributing to an adjusted pre-tax margin of 21.5%—a 510-basis-point improvement. Adjusted earnings per share jumped 64% to $2.99.
Capital returns to shareholders remained a focus. The board declared a quarterly dividend of $0.65 per share and announced a new $300 million share repurchase authorization. The company ended the year with $849 million in cash and no debt.
Looking forward, management tempered near-term quarterly forecasts but expressed optimism. Mahmoodzadegan suggested that while geopolitical uncertainty remains a boardroom topic, many companies are "playing through" near-term flare-ups due to the strategic imperative to adapt to technological shifts. He also indicated that deal momentum, which has been concentrated in large-cap transactions, is likely to broaden into the middle market as valuation gaps narrow.
The firm continues to invest in talent, adding 21 managing directors in 2025. A key growth area, its Private Capital Advisory (PCA) unit focused on secondary transactions, is still in a "ramp mode" but is building a rapidly developing pipeline, with more meaningful revenue contributions expected in 2026.
Market Voices: Analyst & Investor Reactions
Eleanor Vance, Senior Financials Analyst at Sterling Trust: "The margin expansion here is the real story. Moelis has demonstrated impressive operating leverage in a recovering market. Their clean balance sheet and new buyback program provide a solid floor for the stock while allowing flexibility to capitalize on growth opportunities."
Marcus Thorne, Portfolio Manager at Horizon Capital: "The talent investments are promising, particularly in private capital advisory. However, with roughly a third of their MDs having less than three years at the firm, integration and retention will be critical. The 'maturing' base is an opportunity, but also a risk if market conditions shift."
David Chen, Managing Partner at Oakhaven Investments: "Record revenues are great, but let's not ignore the context. This is a rebound from a depressed period. Their 'momentum' is largely market-fed. The test for a true boutique is performance in a downturn. Their heavy reliance on M&A fees leaves them exposed when the cycle inevitably turns. The PCA business is years away from moving the needle."
Rebecca Shaw, Independent M&A Consultant: "Their read on the market aligns with what we're seeing on the ground. Strategics are back at the table, and the pipeline commentary is encouraging. Moelis's global footprint in key sectors positions them well to advise on the complex, technology-driven deals that will define the next cycle."