NYSE:MC
Moelis & Co
A premier independent global advisory firm delivering high-value strategic transaction services in M&A, capital markets, and restructuring across key industrial and technology sectors.
Key Metrics
Investment Thesis
Bull Case
Moelis & Co offers compelling growth potential as deal activity normalizes in cyclical markets, allowing the independent advisory model to capture disproportionate value. The firm's diversified revenue streams across M&A, capital markets, and restructuring provide resilience against sector-specific downturns while delivering superior fee margins compared to traditional banks.
Bear Case
Valuation remains elevated relative to historical averages, leaving little margin for error if deal flow decelerates or competition intensifies. The heavy reliance on non-recurring advisory fees exposes earnings to significant volatility, and the accumulated other comprehensive loss of $7.1M alongside a retained earnings deficit suggest underlying balance sheet pressures.
About Moelis & Co
Moelis & Co is a leading global advisory firm providing strategic transaction services across M&A, capital markets, and restructuring. Operating primarily in North America and Europe, the firm leverages deep client relationships to deliver tailored solutions for complex corporate transactions. Its revenue model relies on fee-based advisory services rather than proprietary trading or product sales.
Analysis
Management Discussion
The company demonstrated strong operational leverage with revenue growing 26% year-over-year to $1.52B, driven by a robust pipeline of strategic transactions. Net income surged to $259.6M as the firm navigated a challenging macro environment, converting operating profit of $273.9M into earnings while maintaining a healthy cash position of over $500M.
Industry Overview
The independent investment banking industry is characterized by fierce competition for high-value advisory mandates in M&A, restructuring, and capital markets. Success depends on building deep client trust and executing complex transactions efficiently, with performance highly correlated to global economic cycles and corporate M&A activity levels.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $985.3M | $0 | $1.19B | $1.52B |
| Cost of Revenue | $0 | $-854.7M | $0 | $0 |
| Gross Profit | $985.3M | $854.7M | $1.19B | $1.52B |
| Operating Expenses | $769.2M | $895.1M | $1.02B | $1.24B |
| Operating Income | $216.1M | $-40.4M | $172.9M | $273.9M |
| Stock-Based Comp | $128.9M | $158.2M | $161.4M | $230.3M |
| D&A | $8.0M | $8.3M | $10.4M | $11.9M |
| Non-Operating Income | $220.0K | $11.2M | $23.1M | $53.6M |
| Pre-Tax Income | $216.3M | $-29.1M | $196.0M | $327.5M |
| Income Tax | $47.6M | $-1.6M | $44.5M | $67.9M |
| Continuing Ops | $168.7M | $-27.5M | $151.5M | $259.6M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $168.7M | $-27.5M | $151.5M | $259.6M |
| Minority Interest | $18.3M | $-2.8M | $15.5M | $26.6M |
| Net to Common | $150.3M | $-24.7M | $136.0M | $233.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $206.8M | $186.4M | $412.5M | $508.6M |
| Marketable Securities | $265.2M | — | — | — |
| PP&E (Net) | $57.2M | $63.8M | $65.5M | $89.8M |
| Operating Leases | $152.3M | $172.0M | $180.4M | $216.9M |
| Total Assets | $1.22B | $1.18B | $1.38B | $1.74B |
| Total Liabilities | $757.9M | $817.3M | $899.6M | $1.06B |
| Shareholders' Equity | $458.9M | $362.5M | $479.4M | $680.4M |
| Retained Earnings | $-560.7M | $-767.6M | $-821.6M | $-801.2M |
| AOCI | $-4.5M | $-3.9M | $-6.7M | $-7.1M |
| Total L&E | $1.22B | $1.18B | $1.38B | $1.74B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $168.7M | $-27.5M | $151.5M | $259.6M |
| Non-Cash Adjustments | $102.8M | $164.8M | $209.4M | $145.5M |
| Working Capital Changes | $-238.5M | $21.2M | $66.6M | $171.2M |
| Cash from Operations | $33.0M | $158.5M | $427.5M | $576.3M |
| Capital Expenditures | $6.0M | $16.7M | $12.1M | $36.3M |
| Cash from Investing | $-11.2M | $48.6M | $17.1M | $-196.0M |
| Dividends Paid | $174.7M | $182.2M | $184.2M | — |
| Cash from Financing | $-326.9M | $-229.2M | $-215.1M | $-283.9M |
| FX Effect | $-8.4M | $1.8M | $-3.5M | $-243.0K |
| Net Change in Cash | $-313.5M | $-20.3M | $226.0M | $96.2M |
| Beginning Cash | $521.0M | $207.5M | $187.2M | $413.2M |
| Ending Cash | $207.5M | $187.2M | $413.2M | $509.4M |
Frequently Asked Questions
How does Moelis & Co make money?
Mergers & Acquisitions Advisory, Capital Markets Services including equity/debt placement, Restructuring & Insolvency Advisory, and Industry-specific solutions serving clients from energy to consumer goods.
What are the main risks for MC?
Highly concentrated revenue from large advisory fees creates sensitivity to deal volume fluctuations, intense competition from bulge bracket banks and boutique firms for top-tier mandates, regulatory changes affecting capital markets operations, and potential liability exposure from restructuring engagements.
What is MC's competitive advantage?
Independent non-brokered model providing unbiased strategic advice without conflicts of interest, deep proprietary deal flow network, and specialized expertise in complex cross-border transactions and distressed assets.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.