Moelis & Company Q3 Earnings Beat on Higher Revenues, Stock Dips

Moelis & Company’s MC 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 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 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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This article originally published on Zacks Investment Research (zacks.com).

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