Moelis & Company Reports Record Second-Quarter Revenue, Strong First-Half Performance, and Declares Quarterly Dividend
Moelis & Company (NYSE: MC) delivered a strong financial performance for the second quarter and first half of 2026, reporting record quarterly revenue, higher earnings, continued expansion of its global advisory platform, and disciplined capital management. The independent investment bank also reaffirmed its commitment to returning capital to shareholders by declaring its regular quarterly dividend while continuing its share repurchase program.
The firm’s latest results highlight sustained client activity across mergers and acquisitions, capital markets, restructuring, and strategic advisory assignments. Management attributed the record revenue performance to stronger average advisory fees, growing client engagement, and the firm’s ongoing investment in expanding its advisory capabilities across key industries and financial products.
Record Second-Quarter Revenue
For the second quarter ended June 30, 2026, Moelis & Company generated revenue of $409.4 million, representing a 12% increase compared with $365.4 million reported during the second quarter of 2025.
The quarter marked the highest second-quarter revenue in the firm’s history, reflecting improved transaction activity and stronger average fees earned from completed client engagements.
Revenue growth continued despite an investment banking environment that remains influenced by fluctuating market conditions, changing interest rates, and evolving geopolitical developments. Management noted that client demand remained healthy across multiple advisory businesses, positioning the firm for continued momentum during the remainder of the year.
Strong Growth in Quarterly Earnings
Moelis reported GAAP net income of $55.1 million, or $0.62 per diluted share, for the second quarter of 2026.
On an adjusted (non-GAAP) basis, which excludes certain items to provide a clearer view of operating performance, the firm generated net income of $54.1 million, or $0.63 per diluted share.
This compares with adjusted net income of $45.5 million, or $0.53 per diluted share, during the same quarter last year.
Adjusted earnings therefore increased approximately 19% year over year, reflecting stronger operating performance driven primarily by higher advisory revenue.
Income before income taxes also improved significantly.
On a GAAP basis, pre-tax income increased 17% to $75.3 million, while adjusted pre-tax income increased 18% to approximately $76.3 million, demonstrating healthy operating leverage despite continued investments across the business.
First-Half Revenue Continues to Expand
For the six months ended June 30, 2026, Moelis generated total revenue of $729.2 million, representing a 9% increase from $672.0 million reported during the first half of 2025.
Management stated that the increase was primarily driven by higher average advisory fees earned per completed transaction rather than simply an increase in transaction volume.
The firm’s diversified advisory platform continues to generate revenue from mergers and acquisitions, capital raising, restructuring, private capital advisory, and other strategic financial advisory services across multiple industries and geographic regions.
First-Half Profitability Remains Solid
GAAP net income for the first half of 2026 totaled $97.4 million, equal to $1.10 per diluted share.
Adjusted net income reached $97.2 million, or $1.13 per diluted share, compared with $99.9 million, or $1.17 per diluted share, during the same period last year.
Although adjusted earnings declined modestly compared with the exceptionally strong prior-year period, management noted that both 2026 and 2025 results benefited from tax-related gains associated with the settlement of share-based compensation awards.
During the first half of 2026, these tax benefits contributed approximately $0.11 per diluted share, compared with approximately $0.28 per diluted share during the prior-year period.
Excluding the lower tax benefit, the firm’s underlying operating performance remained resilient as revenues continued to grow and client activity remained robust.
CEO Highlights Client Momentum
Chief Executive Officer and Co-Founder Navid Mahmoodzadegan described the firm’s quarterly and year-to-date performance as evidence of the strength of its client franchise.
According to Mahmoodzadegan, record second-quarter and first-half revenues reflect continued expansion of Moelis’ advisory capabilities together with strong client engagement across global markets.
He emphasized that the firm’s growing pipeline of strategic advisory assignments positions Moelis to continue delivering favorable outcomes for clients while creating long-term shareholder value.
Management also noted that investment banking revenues naturally fluctuate based on the timing, size, and completion of transactions, meaning quarterly results should not necessarily be viewed as indicative of future performance over longer periods.
Continued Expansion of Advisory Platform
Moelis continued investing aggressively in expanding its global advisory business during 2026.
Through the first half of the year, the firm hired 12 new Managing Directors, reinforcing several strategic business lines.
Six senior bankers have already joined the firm, strengthening advisory capabilities across:
- Private Credit Secondaries
- Securitization
- Debt Capital Markets
- Private Credit
- Energy
- Chemicals
- Healthcare Information Technology
The remaining six Managing Directors are expected to join later this year, including professionals specializing in:
- Private Capital Advisory
- Sponsor coverage in Europe
- Infrastructure advisory
- Capital Structure Advisory
Management believes these additions will further diversify revenue opportunities while enhancing the firm’s ability to serve an expanding global client base.
Revenue Growth Driven by Higher Advisory Fees
Unlike some periods in which revenue growth stems primarily from higher transaction volumes, management explained that the current year’s improvement largely resulted from higher average fees earned per completed transaction.
This reflects the firm’s ability to secure larger, more complex advisory assignments while maintaining strong relationships with corporate, financial sponsor, government, and institutional clients.
As transaction values increase, advisory fee generation generally improves, supporting higher profitability even when overall deal volumes fluctuate.
Operating Expenses Increase Alongside Business Growth
As expected for a growing advisory firm, operating expenses increased during both the quarter and the first half of 2026.
Second-quarter GAAP operating expenses totaled approximately $336.6 million, representing a 10% increase compared with the prior year.
Adjusted operating expenses totaled $335.8 million, also increasing 10% year over year.
Despite the higher expense base, operating efficiency improved modestly.
Total operating expenses represented 82.2% of revenue on a GAAP basis during the quarter compared with 83.4% one year earlier.
This indicates that revenue growth outpaced expense growth, improving operating leverage.
Compensation Reflects Continued Hiring
Compensation and benefits remained the firm’s largest operating expense.
Second-quarter compensation expenses totaled $269.4 million, increasing 7% from the previous year.
For the first six months of 2026, compensation expense reached approximately $479.8 million, representing a 3% increase over the prior year.
Management attributed the increase primarily to expanded headcount as the firm continued investing in senior talent across multiple advisory businesses.
Even with these investments, compensation expense declined as a percentage of revenue.
Compensation represented 65.8% of revenue during both the second quarter and first half of 2026, compared with 69.0% during the same periods last year.
This improvement highlights increased operating efficiency despite ongoing hiring.
Non-Compensation Expenses Rise with Business Activity
Non-compensation expenses also increased during the quarter.
Second-quarter non-compensation expenses rose approximately 28% on a GAAP basis to $67.2 million.
For the first half of the year, these expenses increased approximately 23% to $136.0 million.
Management explained that the increase reflected several business investments, including:
- Greater deal-related travel and client meetings.
- Expanded client conferences.
- Occupancy costs associated with new office space.
- Professional services supporting the firm’s public equity capital markets business.
- Increased technology spending, including investments in artificial intelligence capabilities.
- Higher general administrative expenses associated with business growth.
These investments are intended to strengthen long-term competitive positioning rather than simply support current operations.
Other Income Moderates
Other income declined modestly during both reporting periods.
Second-quarter other income totaled approximately $2.5 million, compared with $3.5 million one year earlier.
For the first half of 2026, other income totaled approximately $8.1 million, compared with $9.7 million during the same period of 2025.
Management indicated that these fluctuations primarily reflected normal variations in investment-related income and other non-operating activities.
Understanding the Firm’s Adjusted Results
Moelis continues to present both GAAP and adjusted financial results to provide investors with additional insight into operating performance.
Currently, 91% of the firm’s operating partnership is owned by Moelis & Company and therefore subject to U.S. corporate income taxes.
The remaining 9% is owned by other partners and is generally taxed at the partner level rather than the corporate level.
Adjusted results assume that 100% of the firm’s operating earnings are taxed using the company’s corporate effective tax rate.
Management believes this presentation provides greater consistency when comparing operating performance across reporting periods.
Strong Balance Sheet Supports Growth
Moelis maintained a very strong financial position throughout the first half of 2026.
As of June 30, 2026, the firm reported:
- $481.1 million in cash and liquid investments.
- No funded debt outstanding.
The debt-free balance sheet provides considerable financial flexibility, allowing the firm to invest in talent, expand globally, return capital to shareholders, and pursue future strategic opportunities without significant leverage.
Quarterly Dividend Declared
Reflecting continued confidence in the firm’s financial position, the Board of Directors declared its regular quarterly dividend of $0.65 per common share.
The dividend will be:
- Paid: September 17, 2026.
- Record Date: August 10, 2026.
The dividend continues Moelis’ long-standing strategy of returning excess capital to shareholders while maintaining sufficient resources for future growth initiatives.
Share Repurchases Continue
In addition to dividend payments, Moelis remained active in repurchasing its own shares.
During the second quarter, the company repurchased approximately 300,000 shares through open-market transactions at an average purchase price of $64.43 per share.
For the first six months of 2026, total share repurchases reached approximately 2.3 million shares, representing a total investment of $140.8 million.
When combined with dividends declared during the period, Moelis expects to have returned approximately $246.4 million to shareholders during the first half of 2026.
Management views disciplined capital returns as an important component of long-term shareholder value creation while maintaining sufficient liquidity to support business expansion.
Looking ahead, Moelis & Company believes it is well positioned to benefit from continued improvement in global transaction activity.
The firm’s expanding advisory platform, growing roster of senior bankers, healthy client engagement, and diversified industry expertise provide multiple opportunities for future revenue growth.
Management expects investments in private capital advisory, infrastructure, debt capital markets, sponsor coverage, healthcare technology, artificial intelligence, and other strategic areas to strengthen the firm’s competitive position over the coming years.
With record quarterly revenue, a strong balance sheet, ongoing investments in talent, and disciplined shareholder capital returns, Moelis enters the second half of 2026 with solid momentum. While investment banking revenues will continue to fluctuate based on transaction timing and market conditions, the firm’s diversified advisory business, expanding global platform, and continued client demand position it to pursue sustainable long-term growth while delivering value to both clients and shareholders.
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