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Moelis & Company Q3 Earnings Beat on Higher Revenues, Stock Dips
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Key Takeaways
MC's Q3 EPS of 68 cents beat estimates and rose sharply from 22 cents last year.
Total revenues climbed 30% y/y to $356.9 million, driven by higher fees and income.
Operating expenses rose 20% y/y amid higher compensation costs, sending shares down 1% post earnings.
Moelis & Company’s (MC - Free Report) third-quarter 2025 adjusted earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line improved significantly from 22 cents in the prior-year quarter.
Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses was a headwind. Probably because of this, shares of the company lost 1% in the after-market trading, following the results.
Net income (GAAP basis) was $60.1 million compared with $19.2 million in the prior-year quarter.
MC’s Revenues Rise, Expenses Jump
Total revenues (GAAP basis) for the quarter grew 30% year over year to $356.9 million. Adjusted revenues were $376 million, up 34% year over year. The Zacks Consensus Estimate for revenues was $370.5 million.
Total operating expenses (GAAP basis) were $308.6 million, which jumped 20% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimate for total operating expenses was $296.9 million.
Other income (GAAP basis) was $34 million in the reported quarter, up significantly from $11.1 million in the prior-year quarter. We had projected the metric to be $4.1 million.
As of Sept. 30, 2025, the company had cash and liquid investments of $619.9 million, with no debt or goodwill.
Our View on Moelis & Company
MC’s global expansion initiatives, higher average fees earned, solid capital markets and diverse operations across sectors and industries bode well for the future. However, a hiring spree and rising revenue-related compensation are expected to hurt bottom-line growth.
Moelis & Company Price, Consensus and EPS Surprise
Morgan Stanley’s (MS - Free Report) third-quarter 2025 earnings of $2.80 per share handily surpassed the Zacks Consensus Estimate of $2.08. Also, the bottom line soared 49% from the prior-year quarter.
Morgan Stanley’s investment banking business gained from a frenzy of deal-making activities and IPOs. MS also posted a solid trading performance. Net interest income increased, given the improved lending activities, which was another positive. However, an increase in total non-interest expenses was the undermining factor.
The Goldman Sachs Group, Inc.’s (GS - Free Report) third-quarter 2025 adjusted earnings per share of $12.25 surpassed the Zacks Consensus Estimate of $11.11 per share. This compares favorably with $8.40 in the year-ago quarter.
Goldman’s results benefited from solid revenue growth in the Global Banking & Markets, and Asset & Wealth Management divisions. Yet, increased expenses were concerning.
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Moelis & Company Q3 Earnings Beat on Higher Revenues, Stock Dips
Key Takeaways
Moelis & Company’s (MC - Free Report) third-quarter 2025 adjusted earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line improved significantly from 22 cents in the prior-year quarter.
Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses was a headwind. Probably because of this, shares of the company lost 1% in the after-market trading, following the results.
Net income (GAAP basis) was $60.1 million compared with $19.2 million in the prior-year quarter.
MC’s Revenues Rise, Expenses Jump
Total revenues (GAAP basis) for the quarter grew 30% year over year to $356.9 million. Adjusted revenues were $376 million, up 34% year over year. The Zacks Consensus Estimate for revenues was $370.5 million.
Total operating expenses (GAAP basis) were $308.6 million, which jumped 20% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimate for total operating expenses was $296.9 million.
Other income (GAAP basis) was $34 million in the reported quarter, up significantly from $11.1 million in the prior-year quarter. We had projected the metric to be $4.1 million.
As of Sept. 30, 2025, the company had cash and liquid investments of $619.9 million, with no debt or goodwill.
Our View on Moelis & Company
MC’s global expansion initiatives, higher average fees earned, solid capital markets and diverse operations across sectors and industries bode well for the future. However, a hiring spree and rising revenue-related compensation are expected to hurt bottom-line growth.
Moelis & Company Price, Consensus and EPS Surprise
Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote
Currently, Moelis & Company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of MC’s Peers
Morgan Stanley’s (MS - Free Report) third-quarter 2025 earnings of $2.80 per share handily surpassed the Zacks Consensus Estimate of $2.08. Also, the bottom line soared 49% from the prior-year quarter.
Morgan Stanley’s investment banking business gained from a frenzy of deal-making activities and IPOs. MS also posted a solid trading performance. Net interest income increased, given the improved lending activities, which was another positive. However, an increase in total non-interest expenses was the undermining factor.
The Goldman Sachs Group, Inc.’s (GS - Free Report) third-quarter 2025 adjusted earnings per share of $12.25 surpassed the Zacks Consensus Estimate of $11.11 per share. This compares favorably with $8.40 in the year-ago quarter.
Goldman’s results benefited from solid revenue growth in the Global Banking & Markets, and Asset & Wealth Management divisions. Yet, increased expenses were concerning.