Jamie Sahara, Chairman of United Risk, presented the company’s full leadership team, including several newly appointed executives, during its quarterly stakeholder meetings held at its 50 Rockefeller Plaza headquarters.Hayden Smith has been promoted to CEO of United Risk worldwide; Andrew Lucas has been appointed General Counsel; Gregg Holtmeier has been appointed Chief Commercial Officer (CCO); and Patrick Watson has been appointed Chief Operating Officer (COO).“We have again added to our C-suite, completi ...

Core Insights - The current state of mergers and acquisitions (M&A) is experiencing a 9% drop in activity during the first half of the year, attributed to market uncertainties, including tariffs and interest rates [2] Group 1: M&A Activity and Market Conditions - Dr. Obonyo highlighted that uncertainties in the market, particularly regarding tariffs, are causing hesitation among companies to commit significant capital for M&A [2] - Key considerations for M&A include identifying the right target, ensuring the right price, and planning for post-merger integration [2] - Mark Henkels noted that higher interest rates are influencing deal activity in the industrial sector, leading to more creative deal structuring beyond all-cash transactions [2] Group 2: Strategic Priorities in the Industrial Sector - The focus in the industrial sector has shifted from pure growth to simplification and allowing investors to decide on diversification [2] - "Through-cycle" performance has become a key theme in industrial boardrooms, emphasizing the need for growth that can withstand uncertainty [2]

Core Insights - Moelis & Company's (MC) third-quarter 2025 adjusted earnings of 68 cents per share exceeded the Zacks Consensus Estimate of 57 cents, showing a significant improvement from 22 cents in the prior-year quarter [1][9] - The company's total revenues grew 30% year over year to $356.9 million, with adjusted revenues rising 34% to $376 million, surpassing the Zacks Consensus Estimate of $370.5 million [3][9] - Operating expenses increased by 20% year over year to $308.6 million, primarily due to higher compensation and benefits costs, which negatively impacted the bottom line [3][9] - Other income for the quarter was $34 million, a substantial increase from $11.1 million in the prior-year quarter, exceeding projections of $4.1 million [4] - As of September 30, 2025, the company maintained a strong liquidity position with cash and liquid investments totaling $619.9 million, with no debt or goodwill [4] Company Outlook - The company's global expansion initiatives, higher average fees, solid capital markets, and diverse operations across sectors are expected to support future growth [5] - However, a hiring spree and rising revenue-related compensation may pose challenges to bottom-line growth [5] - Moelis & Company currently holds a Zacks Rank 2 (Buy) [5] Peer Performance - Morgan Stanley's third-quarter 2025 earnings of $2.80 per share significantly surpassed the Zacks Consensus Estimate of $2.08, with a 49% increase from the prior-year quarter [6] - Goldman Sachs reported adjusted earnings per share of $12.25, exceeding the Zacks Consensus Estimate of $11.11, and showing growth from $8.40 in the previous year [8]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues, particularly when ad-blockers are enabled [1] Group 1 - The article suggests that users may face restrictions if they have ad-blockers enabled, indicating a need for adjustments in browser settings to ensure smooth access [1]

Core Insights - Moelis (MC) reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing a significant increase from $0.22 per share a year ago, resulting in an earnings surprise of +19.30% [1] - The company achieved revenues of $375.98 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.22% and up from $273.76 million year-over-year [2] - Moelis has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $427.94 million, and for the current fiscal year, it is $2.49 on revenues of $1.47 billion [7] - The earnings outlook is crucial for investors, as it reflects current consensus expectations and any recent changes in those expectations [4] Market Performance - Moelis shares have declined approximately 3.5% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Context - The Financial - Investment Bank industry, to which Moelis belongs, is currently ranked in the top 9% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

Financial Data and Key Metrics Changes - The company achieved adjusted revenue of $376 million for Q3 2025, representing a 34% increase year-over-year, and $1.05 billion for the first nine months of 2025, a 37% increase compared to the prior year [4][10] - The adjusted pre-tax margin was 22.2% for Q3 2025, with a year-to-date margin of 18.2%, showing significant improvement from the same periods in the prior year [11] - The adjusted compensation expense ratio for Q3 was 66.2%, with a year-to-date ratio of 68%, down from 69% in the first half of 2025 [10][11] Business Line Data and Key Metrics Changes - The M&A business saw a meaningful increase in average fees due to larger strategic M&A and sponsor transactions, indicating a robust environment for transformative deals [5][6] - Capital markets revenues more than doubled year-to-date compared to the same period last year, positioning the company for a record year [6][7] - Capital structure advisory experienced a decline, attributed to fewer traditional restructurings, but the company remains engaged in liability management assignments [10][11] Market Data and Key Metrics Changes - The company noted a significant uptick in sponsor activity, driven by a pent-up need for sponsors to return capital to LPs and a favorable financing environment [6][9] - The regulatory environment has become more accommodating, allowing companies to pursue larger transactions, which is expected to drive increased deal activity [35][36] Company Strategy and Development Direction - The company is focused on three key areas: clients, culture, and growth, emphasizing the importance of client success and maintaining a collaborative culture [13] - There is a strong emphasis on building the private capital advisory business as a key growth engine, with ongoing hiring to enhance expertise in this area [7][63] - The company is optimistic about the transaction environment, despite potential short-term impacts from the U.S. government shutdown [9] Management's Comments on Operating Environment and Future Outlook - Management believes that AI will have a profound impact on the economy, creating opportunities for restructuring as its effects become clearer [16] - The company sees a broadening of the M&A market, with expectations for increased activity in middle-market transactions as conditions normalize [25][58] - The overall sentiment is positive regarding the growth of private credit, which is viewed as beneficial for the company's advisory business [17][18] Other Important Information - The board declared a quarterly dividend of $0.65 per share and repurchased approximately 206,000 shares for a total cost of $14.5 million during Q3 [12] - The company maintains a strong balance sheet with approximately $620 million in cash and liquid investments and no debt [12] Q&A Session Summary Question: Impact of AI on restructuring - Management acknowledged that AI is expected to disrupt various sectors, potentially leading to restructuring opportunities as its impact becomes evident [16] Question: Concerns regarding private credit defaults - Management expressed confidence in the growth of private credit, stating that recent defaults do not indicate a systemic problem and that the trend is beneficial for their business [17][18] Question: M&A market breadth and activity - Management confirmed that the current market is driven by larger transactions but noted signs of a broadening market, particularly in middle-market sponsor activity [25][58] Question: Compensation ratio outlook - Management indicated that the current compensation ratio of 68% is an improvement from the previous year and aims to normalize further as market conditions improve [29][30] Question: Regulatory environment and deal activity - Management highlighted a more accommodating regulatory backdrop, which is driving increased ambition for larger transactions among companies [34][35] Question: Outlook for restructuring business - Management noted a muted level of new business origination in restructuring compared to last year, but remains optimistic about future opportunities [56] Question: Hiring activity in 2026 - Management plans to continue hiring, particularly in private capital advisory, to capitalize on growth opportunities [63]

Financial Performance - For the first nine months of 2025, Moelis & Company earned GAAP revenues of $1,028.9 million, a 36% increase from $755.8 million in the same period of 2024[152]. - Operating income for the nine months ended September 30, 2025, was $145.9 million, representing a 252% increase compared to $41.4 million in 2024[156]. - Net income for the nine months ended September 30, 2025, was $160.6 million, a 211% increase from $51.6 million in 2024[156]. - Total operating expenses for the nine months ended September 30, 2025, were $883.0 million, which is 86% of revenues, compared to 95% in the same period of 2024[167]. Compensation and Expenses - Compensation and benefits expenses for the nine months ended September 30, 2025, were $719.1 million, representing 70% of revenues, down from 76% in the prior year[172]. - For the three months ended September 30, 2025, non-compensation expenses were $53.2 million, representing 15% of revenues, a decrease from 17% in the prior year period[174]. - For the nine months ended September 30, 2025, non-compensation expenses totaled $163.9 million, representing 16% of revenues, down from 19% in the prior year[175]. Client Activity - The company served 290 clients in the nine months ended September 30, 2025, compared to 314 clients in the same period of 2024[164]. - The number of clients that paid fees equal to or greater than $1 million increased to 181 in the nine months ended September 30, 2025, from 177 in 2024[164]. - Moelis & Company has seen strong new business origination and deal activity, with an improvement in the M&A market[153]. Tax and Other Income - Other income for the three months ended September 30, 2025, was $34.0 million, significantly up from $11.1 million in the prior year, driven by a $19.1 million gain from the sale of shares in MA Financial[177]. - For the nine months ended September 30, 2025, other income was $43.7 million, compared to $17.0 million in the prior year, with notable contributions from gains on financial assets[178]. - The provision for income taxes for the three months ended September 30, 2025, was $22.2 million against pre-tax income of $82.3 million, compared to $7.4 million against pre-tax income of $26.7 million in the prior year[180]. - For the nine months ended September 30, 2025, the provision for income taxes was $28.9 million against pre-tax income of $189.5 million, up from $6.8 million against pre-tax income of $58.5 million in the prior year[181]. Cash and Liquidity - As of September 30, 2025, cash and cash equivalents were $282.4 million, a decrease of $130.8 million from $413.2 million at December 31, 2024[199]. - The company maintains a strong balance sheet with substantial liquidity and zero debt, positioning it well to navigate dynamic markets[154]. - The company maintains two revolving credit facilities with aggregate commitments of $50.0 million, with no borrowings under the $5.0 million facility as of September 30, 2025[188]. - Cash, cash equivalents, and restricted cash decreased to $146.1 million as of September 30, 2024, down from $187.2 million at December 31, 2023, representing a decrease of $41.1 million[201]. Shareholder Returns - The company declared a quarterly dividend of $0.65 per share, to be paid on December 4, 2025, with total dividends paid during the nine months ended September 30, 2025, amounting to $1.95 per share[191]. - The company repurchased 401,744 shares during the nine months ended September 30, 2025, compared to 181,718 shares in the prior year, with $46.6 million remaining under the share repurchase program[192]. Risk Management - The company has not entered into any transactions to hedge foreign currency fluctuations, exposing it to exchange rate risks[207]. - The company maintains an allowance for credit losses that provides an adequate reserve for expected future losses, based on accounts receivable evaluations[206]. - The company has not recorded any unrecognized tax benefits for the three and nine months ended September 30, 2025, and 2024[221]. Internal Controls - No changes in internal control over financial reporting occurred during the reporting period that materially affected the company's financial reporting[224].

Business Overview - Moelis & Company is presented as a leading global advisory-focused independent investment bank [6] - The firm emphasizes a client-first philosophy, diversified capabilities, and a robust financial model [4] - Moelis has a global reach, advising clients in over 45 countries [7] Financial Performance - The company returned approximately $2.9 billion in capital to shareholders [7, 66] - Moelis achieved revenue growth of 187% from FY 2014 to LTM 3Q 2025 [7] - LTM 3Q 2025 Revenue was $1,487 million [7] Talent and Global Presence - The firm has 170 Managing Directors, with approximately 40% being internally promoted [7] - Moelis has 1,430 employees across 23 locations globally [7] - The company provides world-class advice across major industries and sub-sectors [15] Capital Structure Advisory - Moelis has restructured approximately $1.0 trillion of liabilities since its IPO in 2014 [27] - Approximately 60% of engagements are company-side, and 50% are completed out-of-court [28, 29] - Moelis Capital Structure Advisory has been ranked a top 3 advisor over the last decade [31] Capital Markets - The company has raised approximately $200 billion in capital since its IPO [37] Shareholder Returns - Total shareholder return is approximately 500% [7] - Moelis's indexed total shareholder return is 516% since its IPO in April 2014 [74]

Financial Performance - Third quarter GAAP revenues were $356.9 million, up 30% from $273.8 million in the prior year period; Adjusted revenues increased 34% to $376.0 million from $280.7 million[2][9] - For the first nine months of 2025, GAAP revenues reached $1,028.9 million, a 36% increase from $755.8 million in the prior year; Adjusted revenues rose 37% to $1,048.0 million from $762.8 million[3][10] - Third quarter GAAP net income was $60.1 million, or $0.67 per share (diluted), compared to $19.2 million, or $0.22 per share (diluted) in the prior year, representing a 212% increase[4][8] - First nine months GAAP net income was $160.6 million, or $1.84 per share (diluted), up from $51.6 million, or $0.61 per share (diluted) in the prior year, a 211% increase[4][8] - For Q3 2025, net income attributable to Moelis & Company was $53.4 million, compared to $16.9 million in Q3 2024[40] - Net income attributable to Moelis & Company for Q3 2025 was $58.877 million, compared to $18.641 million in Q3 2024, representing a significant increase[41][47] - The adjusted net income for the nine months ended September 30, 2025, was $158.770 million, compared to $51.432 million for the same period in 2024[51][54] Operating Expenses - Total operating expenses for the third quarter were $308.6 million, up 20% from $258.2 million in the prior year; Adjusted operating expenses were $301.4 million, up 17%[13][14] - Compensation and benefits expenses for the third quarter were $255.4 million, a 21% increase from $210.7 million in the prior year; Adjusted expenses were $248.9 million, up 18%[15] - Non-compensation expenses for the third quarter were $53.2 million, a 12% increase from $47.5 million in the prior year; Adjusted expenses were $52.5 million, up 10%[16] - Compensation and benefits for Q3 2025 were adjusted to $248.949 million, down from $210.576 million in Q3 2024, showing a decrease in expenses[41][47] Other Income and Gains - For Q3 2025, other income on a GAAP basis was $34.0 million, up from $11.1 million in Q3 2024, representing a 206% increase[17] - Adjusted other income for Q3 2025 was $8.8 million, compared to $4.0 million in the prior year, marking a 118% increase[17] - For the first nine months of 2025, GAAP other income was $43.7 million, a 156% increase from $17.0 million in the same period of 2024[18] - The company recorded a gain of $19.1 million from the sale of 5.0 million shares of MA Financial Group Limited, included in Adjusted revenues[17] - The firm reclassified $19.1 million of other income to revenues due to the sale of 5.0 million shares of MA Financial Group Limited, affecting both revenue and net income figures[41][47] Cash and Investments - As of September 30, 2025, the company held cash and liquid investments of $619.9 million with no funded debt or goodwill[21] Dividends and Share Repurchase - The firm declared a quarterly dividend of $0.65 per share and repurchased 0.2 million shares for $14.5 million during the third quarter[4] - The Board declared a quarterly dividend of $0.65 per share, payable on December 4, 2025[22] - The company repurchased 0.2 million shares of common stock for a total cost of $14.5 million during Q3 2025[22] Tax and Adjustments - The effective tax rate for the third quarter of 2025 was approximately 29.5%, resulting in a tax expense of $24.5 million[20] - Adjustments related to the Tax Receivable Agreement (TRA) liabilities were made, impacting the provision for income taxes for the periods presented[43][44] Future Outlook - The firm hired three Managing Directors focused on M&A, Capital Markets, and Metals & Mining, with an additional Managing Director for Technology expected in Q4[4][11] - The company expects to occupy new office space in the UK starting Q2 2026, which may impact future non-compensation expenses[42][53]

Core Insights - The article discusses how young finance professionals on Wall Street manage stress and maintain work-life balance in a high-pressure environment [1][2]. Group 1: Exercise and Physical Activity - Many young finance professionals prioritize morning exercise to relieve stress and prepare for the workday, with some sacrificing sleep for workouts [3][4]. - Activities range from gym workouts to various sports like golf, tennis, and padel, highlighting the importance of physical relief [4][5]. Group 2: Family and Personal Relationships - Maintaining family connections is crucial for these professionals, providing emotional support and perspective amidst work pressures [9][10]. - Some individuals emphasize the importance of spending time with children and partners to help manage stress and maintain balance [10][11]. Group 3: Nutrition and Cooking - A passion for food and exploring the culinary scene is common among these finance professionals, with many enjoying cooking with family [11][12]. - Eating well is seen as a vital part of their routine, contributing to overall well-being [11]. Group 4: Screen Breaks and Mental Health - Taking intentional breaks from screens is a common practice, with some individuals dedicating time to reading or engaging in nature to recharge [13][14]. - Mindfulness practices, such as meditation and purposeful boredom, are also employed to help manage stress [14][15].