Moelis & Company's Q2 Earnings Beat on Higher Revenues, Stock Up 2.8%

Moelis & Company MC shares gained 2.8% in after-hours trading following the release of its better-than-expected second-quarter 2025 results. Adjusted earnings for the quarter of 53 cents per share surpassed the Zacks Consensus Estimate of 32 cents. The bottom line improved significantly from 18 cents per share 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.

Net income (GAAP basis) was $46.8 million compared with $14.9 million in the prior-year quarter.

MC’s Revenues Rise, Expenses Jump

Total revenues (GAAP basis) for the quarter grew 38.1% year over year to $364.4 million. Moreover, the top line surpassed the Zacks Consensus Estimate of $281.8 million.

Total operating expenses (GAAP basis) were $304.7 million, which jumped 24.6%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $233.8 million.

Other income (GAAP basis) was $3.5 million in the reported quarter, up from $1.7 million in the prior year quarter. We had projected the metric to be $3 million.

As of June 30, 2025, the company had cash and liquid investments of $474.9 million, with no debt or goodwill.

Our View on Moelis & Company

Moelis & Company’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 #3 (Hold). 

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 second-quarter 2025 earnings of $2.13 per share handily outpaced the Zacks Consensus Estimate of $1.93. Also, the bottom line rose 17% from the prior-year quarter.

The company’s investment banking and wealth management business performance was solid. A rise in net interest income was another tailwind for MS. Yet, higher non-interest expenses and provisions were the undermining factors.

The Goldman Sachs Group, Inc.’s GS second-quarter 2025 adjusted earnings per share of $10.91 surpassed the Zacks Consensus Estimate of $9.43. This compares favorably with $8.62 in the year-ago quarter.

Goldman’s results benefited from solid growth in the Global Banking & Markets division. Yet, increased expenses and provisions were concerning.

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This article originally published on Zacks Investment Research (zacks.com).

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