Moelis (MC) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter revenues of $319.8 million, up 4% year-over-year, driven by strong M&A and Private Capital Advisory performance.

• Reported GAAP net income of $42.3 million ($0.48 per diluted share), down 21% year-over-year, primarily due to a higher effective tax rate and increased non-compensation expenses.

• Continued strategic hiring with new Managing Directors in private credit secondaries, Healthcare, and other sectors, with further expansion planned.

• Returned $171.4 million to shareholders in Q1 2026 through dividends and share repurchases.

• Maintained a constructive outlook and robust pipeline near all-time highs, despite geopolitical and market headwinds.

Financial highlights

• Q1 2026 revenues reached $319.8 million, a 4% increase year-over-year.

• GAAP net income was $42.3 million; adjusted net income was $43.1 million.

• Adjusted compensation expense ratio was 65.8%, down from 69% in Q1 2025.

• Adjusted non-compensation expenses were $67.2 million (21% of revenues), up due to higher deal-related and technology costs.

• Adjusted pre-tax margin improved to 15% from 14% in the prior year.

Outlook and guidance

• Pipeline and announced transaction activity at record levels, supporting optimism for continued growth.

• Full year 2026 non-compensation expenses expected to grow at a similar rate to 2025, reflecting ongoing investments in technology and headcount.

• Compensation ratio guidance for 2026 remains at 65.8%, with potential for further improvement if revenue growth accelerates.

• Management remains focused on client delivery, talent investment, and long-term shareholder value.