Moelis & Company Reports 41% Revenue Growth to $306.6 Million in Latest Quarter

Moelis & Company reported significant financial growth in its latest quarterly results, with revenues reaching $306.6 million for the three months ended March 31, 2025, a 41% increase from $217.5 million in the same period of 2024. The firm’s net income also saw a substantial rise, totaling $53.8 million compared to $17.5 million a year earlier, marking a 208% increase. This growth in profitability was driven by higher average fees earned per completed transaction, despite a decline in the number of global completed M&A transactions over $100 million during the same timeframe.

The company’s operating expenses increased to $269.7 million, up 27% from $211.7 million in the prior year, primarily due to a rise in compensation and benefits expenses, which accounted for 69% of revenues. The increase in expenses was attributed to higher equity-based compensation and a greater discretionary bonus accrual linked to the increased revenues. Notably, the operating income surged to $36.9 million, a 536% increase from the previous year’s $5.8 million, reflecting improved operational efficiency.

In terms of operational metrics, Moelis & Company served 151 clients during the quarter, slightly down from 154 clients in the previous year. However, the number of clients generating fees of $1 million or more increased to 60 from 57. The firm continues to expand its global footprint, with 934 advisory bankers across over 20 locations worldwide, enhancing its capacity to provide comprehensive financial advisory services.

The company’s balance sheet showed total assets of $1.2 billion as of March 31, 2025, down from $1.4 billion at the end of 2024, primarily due to a decrease in cash and cash equivalents, which fell to $184.5 million from $412.5 million. This decline was largely driven by cash outflows related to operating activities, including discretionary bonuses and tax distributions. Moelis & Company maintains a strong liquidity position, with no debt and a robust cash management strategy, including two revolving credit facilities totaling $50 million.

Looking ahead, Moelis & Company remains cautiously optimistic about the M&A market, despite current volatility and economic uncertainties. The firm anticipates that the strength of its new business origination and deal pipeline will support continued growth, particularly as financial sponsors seek to leverage M&A as a strategic tool. The company plans to navigate these challenges by leveraging its strong balance sheet and substantial liquidity to adapt to changing market conditions.