Moelis (MC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues reached $409.4 million, up 12% year-over-year, and H1 revenues were $729.2 million, up 9%, both setting records driven by higher average fees and expanded business lines.

• Achieved $1.574 billion in LTM Q2 2026 revenue, reflecting 203% growth since FY 2014, with a global presence in 23 locations and 1,430 employees.

• Net income for H1 2026 was $97.4 million, with diluted EPS at $1.10, and adjusted net income per diluted share at $1.13.

• Recognized for marquee transactions and award-winning franchises across M&A, capital structure advisory, capital markets, and private capital advisory.

• Expanded managing director headcount and continued investment in capital markets, private capital advisory, and technology.

Financial highlights

• Adjusted compensation ratio for Q2 and H1 was 65.8%, down from 69% in prior year periods.

• Adjusted non-compensation expenses were $66.5 million in Q2 (16.2% ratio) and $134 million in H1 (18.3% ratio), with Q2 adjusted non-compensation expenses up 26% year-over-year.

• Adjusted pre-tax margin improved to 18.6% for Q2 and 17% for H1, up from 17.6% and 16% in prior year periods.

• Effective tax rate for Q2 was 29.1%; for H1, it was 20%.

• Ended Q2 with $481.1 million in cash and no debt.

Outlook and guidance

• Entered H2 with a record total pipeline and strong new business origination, supporting a positive outlook for the remainder of 2026.

• Management expects continued strong deal activity, supported by M&A drivers such as regulatory changes and technological innovation, but notes potential volatility from geopolitical events and evolving credit conditions.

• Quarterly non-compensation expenses expected to remain in the mid to high $60 million range.

• Continued progress anticipated on compensation ratio, dependent on full-year revenues and hiring.

• Focused on organic growth, strategic hiring, and internal promotions to deepen sector and product coverage.