MC Gains on Q4 Earnings Beat as Revenues Rise, Announces Buyback Plan

Shares of Moelis & Company MC gained 3.7% in after-market trading following the release of its better-than-expected fourth-quarter 2025 results. Adjusted earnings of $1.13 per share hugely surpassed the Zacks Consensus Estimate of 76 cents. However, the bottom line declined 4% from 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 $87.9 million compared with $89.4 million in the prior-year quarter.

For 2025, adjusted earnings of $2.99 per share surpassed the Zacks Consensus Estimate of $2.61. Also, the bottom line increased 64% from the previous year. Net income (GAAP basis) was $233 million compared with $136 million in 2024.

MC’s Revenues Improve, Expenses Rise

Total revenues (GAAP basis) in the quarter grew 11% year over year to $487.9 million. The Zacks Consensus Estimate for revenues was $428.6 million.

Full-year total revenues (GAAP basis) grew 27% year over year to $1.52 billion. The Zacks Consensus Estimate for revenues was $1.48 billion.

Total quarterly operating expenses (GAAP basis) were $359.9 million, which jumped 17% 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 $346.3 million.

Other income (GAAP basis) was $10 million in the reported quarter, up 65% from the prior-year quarter. We projected the metric to be $7.9 million.

As of Dec. 31, 2025, the company had cash and liquid investments of $848.8 million, with no debt or goodwill.

MC’s Share Repurchase Update

In the reported quarter, the company repurchased 0.7 million shares at an average price of $62.96 per share.

The company’s board of directors approved a share repurchase authorization of up to $300 million, with no expiration date. The prior plan had $1.5 million remaining.

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 #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  fourth-quarter 2025 earnings of $2.68 per share easily outpaced the Zacks Consensus Estimate of $2.41. Also, the bottom line jumped 21% from the prior-year quarter.

Unlike its peers, Morgan Stanley’s investment banking business gained from a frenzy of deal-making activities and IPOs. Also, MS posted a decent trading performance. The performance of the company’s wealth management and investment management businesses was impressive, driven by a rise in client assets and assets under management. Its net interest income increased, given the improved lending activities. On the other hand, an increase in total non-interest expenses was the undermining factor.

The Goldman Sachs Group, Inc.’s GS fourth-quarter 2025 earnings per share of $14.01 surpassed the Zacks Consensus Estimate of $11.77. This compared favorably with $11.95 per share in the year-ago quarter.

Goldman’s overall results benefited from solid revenue growth in the Global Banking & Markets and Asset & Wealth Management divisions. These gains were further aided by a sizable net benefit from credit loss provisions related to reserve releases. However, overall results were tempered by elevated operating expenses and a decline in net revenues stemming from markdowns tied to the transfer of the Apple Card loan portfolio.

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

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