Workflow
Moelis & pany(MC)
icon
Search documents
Can Moelis (MC) Run Higher on Rising Earnings Estimates?
ZACKS· 2025-09-01 17:20
Core Viewpoint - Moelis (MC) is seen as an attractive investment opportunity due to a significant improvement in its earnings outlook, with analysts raising their earnings estimates, which may lead to continued stock momentum [1][2]. Earnings Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding Moelis's earnings prospects, which is expected to positively impact its stock price [2]. - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, highlighting the potential for Moelis [3]. Current Quarter and Year Estimates - For the current quarter, Moelis is expected to earn $0.52 per share, reflecting a year-over-year increase of +136.4%. The Zacks Consensus Estimate has risen by 7.29% over the last 30 days due to positive revisions [6]. - For the full year, the expected earnings per share is $2.45, representing a year-over-year change of +34.6%. The consensus estimate has increased by 5.26% over the past month, with no negative revisions [7][8]. Zacks Rank and Investment Potential - Moelis has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which suggests strong potential for stock performance [9]. - The stock has gained 5.2% over the past four weeks, indicating investor confidence in its earnings growth prospects, making it a candidate for portfolio consideration [10].
Earnings Estimates Rising for Moelis (MC): Will It Gain?
ZACKS· 2025-07-29 17:21
Core Viewpoint - Moelis (MC) presents a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimates - Analysts are optimistic about Moelis's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $0.39 per share, reflecting a +77.3% change from the previous year [6]. - Over the last 30 days, the Zacks Consensus Estimate for Moelis has increased by 11.59%, with two estimates moving higher and two going lower [6]. - For the full year, the earnings estimate is $2.07 per share, representing a +13.7% change from the year-ago figure [7]. - The consensus estimate for the current year has increased by 12.08%, with three estimates moving higher compared to one negative revision [8]. Zacks Rank - Moelis currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that could lead to significant outperformance [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [9]. Stock Performance - Moelis's stock has risen by 14.4% over the past four weeks due to strong estimate revisions, suggesting potential for further upside [10].
Moelis & Company's Q2 Earnings Beat on Higher Revenues, Stock Up 2.8%
ZACKS· 2025-07-25 13:51
Core Insights - Moelis & Company (MC) shares increased by 2.8% in after-hours trading following the release of its second-quarter 2025 results, which exceeded expectations with adjusted earnings of 53 cents per share compared to the Zacks Consensus Estimate of 32 cents, and a significant improvement from 18 cents per share in the prior-year quarter [1][8] Financial Performance - The company's net income on a GAAP basis was $46.8 million, a substantial increase from $14.9 million in the prior-year quarter [2] - Total revenues on a GAAP basis grew by 38.1% year over year to $364.4 million, surpassing the Zacks Consensus Estimate of $281.8 million [3][8] - Total operating expenses on a GAAP basis rose by 24.6% to $304.7 million, driven by increases in both compensation and benefits costs as well as non-compensation expenses [3][8] - Other income on a GAAP basis was reported at $3.5 million, up from $1.7 million in the prior year, exceeding projections of $3 million [4] Liquidity and Capital Position - As of June 30, 2025, the company held cash and liquid investments totaling $474.9 million, with no debt or goodwill [4] Strategic Outlook - The company's global expansion initiatives, higher average fees, solid capital markets, and diverse operations across sectors are expected to positively influence future performance [5] - However, a hiring spree and rising revenue-related compensation may negatively impact bottom-line growth [5] Peer Performance - Morgan Stanley reported second-quarter 2025 earnings of $2.13 per share, exceeding estimates and showing a 17% increase from the prior year, supported by strong investment banking and wealth management performance [6] - Goldman Sachs achieved adjusted earnings per share of $10.91, surpassing estimates and reflecting growth in its Global Banking & Markets division, despite concerns over increased expenses [7]
Moelis (MC) Surpasses Q2 Earnings and Revenue Estimates
ZACKS· 2025-07-24 22:51
Group 1 - Moelis reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and showing a significant increase from $0.18 per share a year ago, representing an earnings surprise of +65.62% [1] - The company achieved revenues of $365.38 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 29.67%, compared to $264.59 million in the same quarter last year [2] - Moelis has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - The stock has underperformed the market, losing about 3.9% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.36 on revenues of $296.09 million, and for the current fiscal year, it is $1.97 on revenues of $1.29 billion [7] Group 3 - The Financial - Investment Bank industry, to which Moelis belongs, is currently ranked in the top 5% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Moelis's stock performance [5][6]
Moelis & pany(MC) - 2025 Q2 - Earnings Call Transcript
2025-07-24 22:02
Financial Data and Key Metrics Changes - The company reported revenues of $365 million in Q2 2025, a 38% increase compared to the prior year period, marking the highest second quarter revenues on record [5] - First half revenues reached $672 million, up 39% from the prior year period [5] - The compensation expense ratio for Q2 was 69%, consistent with the previous quarter, while non-compensation expense ratio was 14.4% [6][7] - The corporate tax rate was accrued at 29.5%, consistent with Q1 [7] - The company maintained a strong balance sheet with cash and liquid investments of $475 million and no debt [7] Business Line Data and Key Metrics Changes - The year-over-year revenue increase was primarily driven by growth in M&A and capital markets [6] - The company achieved record revenues in the first half of the year, reflecting successful investments in capital markets [9] Market Data and Key Metrics Changes - The company noted a significantly improved transaction environment entering the second half of the year, recovering from the disruptions caused by the "Liberation Day" market chaos [8] - The pipeline for new business origination is near record levels, indicating strong market activity [8] Company Strategy and Development Direction - The company aims to build a premier platform in secondary and primary capital solutions for sponsors, with plans to aggressively scale this franchise [9] - The focus remains on investing in high total addressable markets (TAMs) and attracting elite talent to drive revenue growth [31][32] - The company is committed to maintaining a strong culture and internal talent development, with 40% of MDs being internally promoted [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving market conditions and the company's ability to execute for clients [9] - The company anticipates continued growth in the private capital advisory business, viewing it as a significant revenue opportunity [26][28] - Management acknowledged the potential for returning excess capital to shareholders, including stock repurchases [77][78] Other Important Information - A CEO transition is underway, with Navid Mahmoodzadegan stepping into the role, while Kenneth Moelis will serve as Executive Chairman [11][13] - The company is actively hiring in various sectors, focusing on building pipelines and covering more areas [65] Q&A Session Summary Question: Progression of sponsor reengagement across sectors - Management noted a broad recovery across sectors, with some areas still affected by trade uncertainty [20][22] Question: Addressable market for private capital advisory - Management sees the addressable market for private capital advisory as potentially exceeding a couple of hundred million dollars, with aggressive hiring planned [25][26] Question: Focus areas for the next phase of growth - The strategy will continue to focus on high TAMs, attracting elite talent, and maintaining a strong culture [31][32] Question: Outlook for M&A and IPO activity post Labor Day - Management indicated a steady improvement in market activity, with increasing enthusiasm for transactions [40][41] Question: Trends in restructuring activity - Restructuring activity has trended slightly down, as companies prefer financing options in a strong market [52] Question: Flexibility of compensation ratio - Management stated that the compensation ratio is top-line driven and will be evaluated based on revenue growth [56][60] Question: Hiring focus outside of PCA - Management is in active discussions for talent across various sectors, aiming to build franchises in untapped areas [65][66] Question: Cash and liquid investments return to shareholders - Management acknowledged excess capital and is considering various ways to return it to shareholders, including stock repurchases [77][78]
Moelis & pany(MC) - 2025 Q2 - Earnings Call Transcript
2025-07-24 22:00
Financial Data and Key Metrics Changes - The company reported revenues of $365 million in Q2 2025, a 38% increase compared to the prior year period, marking the highest second quarter revenues on record [4] - First half revenues reached $672 million, up 39% from the prior year period [4] - The compensation expense ratio for Q2 was 69%, consistent with the previous quarter, while the non-compensation expense ratio was 14.4% [5][6] - The corporate tax rate was accrued at 29.5%, consistent with Q1 [6] - The company maintained a strong balance sheet with cash and liquid investments of $475 million and no debt [6] Business Line Data and Key Metrics Changes - The year-over-year revenue increase was primarily driven by growth in M&A and capital markets [5] - The company achieved record revenues in the first half of the year, reflecting successful investments made over the past few years [7] Market Data and Key Metrics Changes - The company noted a significantly improved transaction environment entering the second half of the year, recovering from the disruptions caused by Liberation Day [7] - The pipeline for new business origination is near record levels, indicating strong market activity [7] Company Strategy and Development Direction - The company aims to aggressively scale its private capital advisory business, viewing it as a significant growth opportunity [9][25] - The capital structure advisory team is engaged in a steady amount of liability management across various industries [10] - The company plans to continue investing in high total addressable markets (TAMs) and attracting elite talent to drive growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving market conditions and the growing investor risk appetite [8] - The company anticipates a steady improvement in market activity, with a focus on maintaining flexibility in hiring and investment strategies [36][60] Other Important Information - The company declared a regular quarterly dividend of $0.65 per share, consistent with the prior period [6] - A CEO transition is underway, with Naved Mabuzadigan stepping into the role, emphasizing a focus on client relationships and talent development [11][13] Q&A Session Summary Question: Progression of sponsor reengagement across sectors - Management noted a broad recovery across sectors, with some areas still affected by trade uncertainties, but overall enthusiasm is returning [21][22] Question: Addressable market for private capital advisory - Management believes the addressable market for private capital advisory could be several hundred million dollars, with plans for aggressive hiring to support growth [25][27] Question: Next phase of growth focus - The focus will remain on high TAMs, attracting elite talent, and maintaining a strong internal culture [31][32] Question: Outlook for restructuring activity - Restructuring activity has trended slightly down, as companies prefer financing options in a strong market [52] Question: Compensation ratio flexibility - Management indicated that the compensation ratio is top-line driven and will be evaluated based on revenue growth [56][60] Question: Cash and liquid investments return to shareholders - The company is considering various ways to return excess capital to shareholders, including stock repurchases [76]
Moelis & pany(MC) - 2025 Q2 - Quarterly Report
2025-07-24 21:33
PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements and accompanying notes for the period [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Condensed Consolidated Statements of Financial Condition (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs. Dec 31, 2024) | | :--------------------------------- | :----------------------------- | :------------------------------- | :------------------------ | | Total Assets | $1,342,535 | $1,378,936 | -$36,401 | | Cash and cash equivalents | $221,718 | $412,467 | -$190,749 | | Total Receivables | $102,759 | $73,709 | +$29,050 | | Investments | $290,175 | $184,601 | +$105,574 | | Total Liabilities | $746,525 | $899,553 | -$153,028 | | Compensation payable | $189,249 | $346,323 | -$157,074 | | Total Equity | $596,010 | $479,383 | +$116,627 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :------------------ | :------------------ | :----------- | | Revenues | $365,376 | $264,586 | +38% | | Total expenses | $304,747 | $244,518 | +25% | | Operating income (loss) | $60,629 | $20,068 | +202% | | Net income (loss) | $46,755 | $14,921 | +213% | | Net income (loss) attributable to Moelis & Company | $41,538 | $13,161 | +216% | | Diluted EPS | $0.53 | $0.17 | +212% | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :------------------ | :------------------ | :----------- | | Revenues | $671,969 | $482,071 | +39% | | Total expenses | $574,428 | $456,201 | +26% | | Operating income (loss) | $97,541 | $25,870 | +277% | | Net income (loss) | $100,530 | $32,406 | +210% | | Net income (loss) attributable to Moelis & Company | $91,806 | $29,727 | +209% | | Diluted EPS | $1.17 | $0.39 | +200% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :------------------------------------------------ | :------------------ | :------------------ | :----------- | | Net income (loss) | $100,530 | $32,406 | +210% | | Foreign currency translation adjustment and other, net of tax | $2,602 | -$275 | N/A | | Comprehensive income (loss) attributable to Moelis & Company | $94,186 | $29,484 | +219% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :------------------ | :------------------ | :----------- | | Net cash provided by (used in) operating activities | $38,687 | -$25,036 | N/A | | Net cash provided by (used in) investing activities | -$113,057 | $108,760 | N/A | | Net cash provided by (used in) financing activities | -$117,796 | -$119,555 | -1.5% | | Net increase (decrease) in cash, cash equivalents, and restricted cash | -$190,663 | -$35,972 | N/A | | Cash, cash equivalents, and restricted cash, end of period | $222,516 | $151,243 | +47.1% | [Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Condensed Consolidated Statements of Changes in Equity (June 30, 2025 vs. January 1, 2025) | Metric | Balance as of Jan 1, 2025 (in thousands) | Balance as of June 30, 2025 (in thousands) | Change | | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | :----- | | Total Moelis & Company equity | $441,606 | $515,982 | +$74,376 | | Noncontrolling interests | $37,777 | $80,028 | +$42,251 | | Total Equity | $479,383 | $596,010 | +$116,627 | - The increase in total equity is primarily driven by **net income and equity-based compensation**, partially offset by dividends declared and treasury stock purchases[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Basis of Presentation](index=10&type=section&id=1.%20ORGANIZATION%20AND%20BASIS%20OF%20PRESENTATION) - Moelis & Company is a global investment bank providing advisory services in M&A, recapitalizations, restructurings, and other corporate finance matters, operating as a **single business segment**[24](index=24&type=chunk)[25](index=25&type=chunk) - The company's structure involves Moelis & Company controlling Group LP and its operating subsidiaries, with **noncontrolling interests** held by Group LP partnership unit owners[24](index=24&type=chunk)[26](index=26&type=chunk) - Key subsidiaries include U.S. Broker Dealer, Moelis International, and an equity method investment in **MA Financial Group Limited**[27](index=27&type=chunk)[32](index=32&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Financial statements are prepared in conformity with **U.S. GAAP**, with estimates and assumptions affecting reported amounts[28](index=28&type=chunk)[30](index=30&type=chunk) - The company consolidates entities where it has a controlling financial interest or is the primary beneficiary of variable interest entities[29](index=29&type=chunk) - Revenue from advisory services is mostly **recognized over time**, with transaction fees constrained until substantially all services are provided and conditions met[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - Equity-based compensation is recognized over the service period based on **grant-date fair value**, adjusted for retirement eligibility[69](index=69&type=chunk)[70](index=70&type=chunk) - Income taxes are accounted for under **ASC 740**, recognizing deferred tax assets/liabilities on temporary differences[71](index=71&type=chunk) [3. Recent Accounting Pronouncements](index=17&type=section&id=3.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) - ASU No. 2023-09 (Income Taxes) requires more detailed disclosures for tax rate reconciliation and income taxes paid, effective for fiscal years beginning after December 15, 2024[76](index=76&type=chunk) - ASU No. 2024-03 (Disaggregation of Income Statement Expenses) requires disaggregation of certain expense categories, effective for fiscal years beginning after December 15, 2026[77](index=77&type=chunk) [4. Fixed and Intangible Assets](index=17&type=section&id=4.%20FIXED%20AND%20INTANGIBLE%20ASSETS) Equipment and Leasehold Improvements, Net (June 30, 2025 vs. December 31, 2024) | Asset Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------- | :----------------------------- | :------------------------------- | | Office equipment | $23,760 | $22,154 | | Furniture and fixtures | $17,126 | $16,842 | | Leasehold improvements | $77,043 | $75,295 | | Construction in progress | $6,403 | $2,556 | | Total | $124,332 | $116,847 | | Less: Accumulated depreciation and amortization | ($56,564) | ($51,396) | | **Equipment and leasehold improvements, net** | **$67,768** | **$65,451** | - Depreciation and amortization expenses for fixed assets increased to **$5,539 thousand** for the six months ended June 30, 2025, from $4,809 thousand in the prior year[78](index=78&type=chunk) - Capitalized costs for cloud computing arrangements, net of amortization, were **$861 thousand** as of June 30, 2025[79](index=79&type=chunk) [5. Investments](index=17&type=section&id=5.%20INVESTMENTS) Fair Value of Financial Assets (June 30, 2025) | Asset Category | Total (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :------------------------------------ | :------------------- | :--------------------- | :--------------------- | :--------------------- | | Money market funds | $115,642 | — | $115,642 | — | | Certificates of Deposit (Cash & CE) | $4,000 | — | $4,000 | — | | Sovereign debt securities (Investments) | $235,210 | — | $235,210 | — | | Certificates of Deposit (Investments) | $18,000 | — | $18,000 | — | | **Total fair value assets** | **$372,852** | **—** | **$372,852** | **—** | - The company recognized unrealized gains of **$192 thousand** for Q2 2025 and unrealized losses of **$527 thousand** for H1 2025 on sovereign debt securities[83](index=83&type=chunk) - The carrying value of the equity method investment in MA Financial was **$36,965 thousand** as of June 30, 2025[85](index=85&type=chunk)[86](index=86&type=chunk) [6. Net Income (Loss) Per Share Attributable to Class A Common Shareholders](index=19&type=section&id=6.%20NET%20INCOME%20(LOSS)%20PER%20SHARE%20ATTRIBUTABLE%20TO%20CLASS%20A%20COMMON%20SHAREHOLDERS) Net Income (Loss) Per Share (Three Months Ended June 30) | Metric | 2025 | 2024 | | :------------------------------------------------ | :--- | :--- | | Net income (loss) attributable to Class A common stock—basic | $41,538 | $13,161 | | Basic EPS | $0.55 | $0.18 | | Diluted EPS | $0.53 | $0.17 | Net Income (Loss) Per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :------------------------------------------------ | :--- | :--- | | Net income (loss) attributable to Class A common stock—basic | $91,806 | $29,727 | | Basic EPS | $1.23 | $0.42 | | Diluted EPS | $1.17 | $0.39 | - The assumed exchange of Class A partnership units for Class A common stock was **not dilutive** for the periods presented[90](index=90&type=chunk) [7. Equity-Based Compensation](index=19&type=section&id=7.%20EQUITY%E2%80%91BASED%20COMPENSATION) - The **2024 Omnibus Incentive Plan** replaced the 2014 Plan, authorizing the issuance of up to 15,000,000 shares plus forfeited shares from the prior plan[92](index=92&type=chunk)[93](index=93&type=chunk) - For H1 2025, the company recognized **$127,843 thousand** in expenses related to RSUs and other stock-based awards, an increase from $85,935 thousand in 2024[94](index=94&type=chunk) - The company granted **822,931 Partnership Units** and **450,000 Performance Units** during H1 2025[96](index=96&type=chunk)[97](index=97&type=chunk) - Total unrecognized compensation expense for unvested awards was **$304,163 thousand** as of June 30, 2025, to be recognized over a weighted-average period of 2.2 years[98](index=98&type=chunk) [8. Stockholders Equity](index=20&type=section&id=8.%20STOCKHOLDERS%20EQUITY) Class A Common Stock (Shares Issued and Outstanding) | Date | Shares Issued | Shares Outstanding | | :---------------- | :------------ | :----------------- | | June 30, 2025 | 84,745,796 | 74,178,031 | | December 31, 2024 | 80,970,827 | 70,589,951 | - Changes in Class A common stock are primarily due to follow-on offerings, exchanges of partnership units, and RSU vesting[102](index=102&type=chunk) - The company repurchased **186,889 shares for $13,270 thousand** during H1 2025[105](index=105&type=chunk) - As of June 30, 2025, **$61,115 thousand remained available** under the $100 million share repurchase program[106](index=106&type=chunk) - Noncontrolling interests accounted for **8% of Moelis & Company** as of June 30, 2025[107](index=107&type=chunk) [9. Related-Party Transactions](index=22&type=section&id=9.%20RELATED%E2%80%91PARTY%20TRANSACTIONS) - The company entered into a new aircraft dry lease with a related party, incurring lease costs of **$628 thousand** for H1 2025[110](index=110&type=chunk)[111](index=111&type=chunk) - Unsecured promissory notes from employees totaled **$9,441 thousand** as of June 30, 2025[112](index=112&type=chunk) - Revenues from advisory transactions with affiliated entities decreased significantly to **$131 thousand** for H1 2025 from $9,663 thousand in the prior year[114](index=114&type=chunk) [10. Regulatory Requirements](index=22&type=section&id=10.%20REGULATORY%20REQUIREMENTS) - U.S. Broker Dealer had net capital of **$230,593 thousand** as of June 30, 2025, exceeding its minimum requirement by $230,343 thousand[115](index=115&type=chunk) - Non-U.S. subsidiaries consistently **exceeded their local capital adequacy requirements**[116](index=116&type=chunk) [11. Commitments and Contingencies](index=22&type=section&id=11.%20COMMITMENTS%20AND%20CONTINGENCIES) - The company renewed its revolving credit facilities, maintaining aggregate base credit commitments of **$50,000 thousand**, with no borrowings as of June 30, 2025[117](index=117&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - Operating lease liabilities totaled **$218,825 thousand** as of June 30, 2025, with a weighted-average remaining lease term of 10.37 years[121](index=121&type=chunk)[122](index=122&type=chunk)[124](index=124&type=chunk) - A new office lease in London will add approximately **$50,000 thousand** in ROU assets and lease liabilities[124](index=124&type=chunk) - The company is involved in legal proceedings, including an appeal of a Delaware Court order and a dismissed class action lawsuit related to the Archer Aviation merger[126](index=126&type=chunk)[127](index=127&type=chunk)[222](index=222&type=chunk) [12. Employee Benefit Plans](index=24&type=section&id=12.%20EMPLOYEE%20BENEFIT%20PLANS) - The company accrued **$2,038 thousand** in employer matching contributions to its 401(k) plan for H1 2025[129](index=129&type=chunk) [13. Income Taxes](index=25&type=section&id=13.%20INCOME%20TAXES) Provision for Income Taxes (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------- | :------------------ | :------------------ | | Provision (benefit) for income taxes | $6,662 | -$599 | - The income tax provision for H1 2025 reflects the company's share of operating results from Group LP, offset by **$22,452 thousand** in excess tax benefits from equity-based compensation[131](index=131&type=chunk) - Group LP is currently under **IRS examination** for the 2020 tax year[132](index=132&type=chunk)[133](index=133&type=chunk) [14. Segment Information](index=25&type=section&id=14.%20SEGMENT%20INFORMATION) - The company operates as a **single segment advisory business** globally[134](index=134&type=chunk)[135](index=135&type=chunk) Revenues by Geographic Location (Six Months Ended June 30) | Region | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :------------ | :------------------ | :------------------ | :----------- | | United States | $520,215 | $355,310 | +46.4% | | Europe | $90,791 | $70,233 | +29.3% | | Rest of World | $60,963 | $56,528 | +7.9% | | **Total** | **$671,969** | **$482,071** | **+39.4%** | Assets by Geographic Location (June 30, 2025 vs. December 31, 2024) | Region | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :------------ | :----------------------------- | :------------------------------- | :----- | | United States | $1,084,456 | $1,169,236 | -$84,780 | | Europe | $96,520 | $65,380 | +$31,140 | | Rest of World | $161,559 | $144,320 | +$17,239 | | **Total** | **$1,342,535** | **$1,378,936** | **-$36,401** | [15. Subsequent Events](index=26&type=section&id=15.%20SUBSEQUENT%20EVENTS) - The Board of Directors declared a dividend of **$0.65 per share**, payable on September 18, 2025[140](index=140&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, business outlook, liquidity, and critical accounting policies for the period [Executive Overview](index=27&type=section&id=Executive%20Overview) - Moelis & Company is a leading global independent investment bank offering strategic advice and solutions across M&A, recapitalizations, and restructurings[144](index=144&type=chunk) - As of June 30, 2025, the company served clients with **940 advisory bankers**, generating revenues primarily from advisory services on transactions[145](index=145&type=chunk) [Business Environment and Outlook](index=27&type=section&id=Business%20Environment%20and%20Outlook) - For H1 2025, GAAP revenues **increased by 39% to $672.0 million**, significantly outpacing the 2% increase in global completed M&A transactions[147](index=147&type=chunk) - The company is encouraged by **new business origination and deal pipeline strength**, with M&A market improvement driven by strategic priorities[148](index=148&type=chunk) - Optimism for growth in the private capital advisory business is high due to **near-record levels of capital** accumulated by financial sponsors[148](index=148&type=chunk)[149](index=149&type=chunk) - The company maintains a strong balance sheet with **substantial liquidity and zero debt**[149](index=149&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Key Financial Results (Three and Six Months Ended June 30) | Metric | 3 Months 2025 (in thousands) | 3 Months 2024 (in thousands) | 3 Months Variance | 6 Months 2025 (in thousands) | 6 Months 2024 (in thousands) | 6 Months Variance | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | Revenues | $365,376 | $264,586 | 38% | $671,969 | $482,071 | 39% | | Total operating expenses | $304,747 | $244,518 | 25% | $574,428 | $456,201 | 26% | | Operating income (loss) | $60,629 | $20,068 | 202% | $97,541 | $25,870 | 277% | | Net income (loss) | $46,755 | $14,921 | 213% | $100,530 | $32,406 | 210% | [Revenues](index=28&type=section&id=Revenues_MD&A) - Revenues increased by **38% in Q2 2025** and **39% in H1 2025**, primarily due to an increase in average fees earned per completed transaction[156](index=156&type=chunk)[158](index=158&type=chunk) - The number of clients paying fees of **$1 million or more** was 117 for H1 2025, consistent with the prior year[157](index=157&type=chunk)[159](index=159&type=chunk) - Revenue recognition is largely over time, but transaction fees are constrained, making revenue unpredictable due to transaction complexities[153](index=153&type=chunk)[154](index=154&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20Expenses_MD&A) Operating Expenses (Three and Six Months Ended June 30) | Expense Category | 3 Months 2025 (in thousands) | % of Revenues 2025 | 3 Months 2024 (in thousands) | % of Revenues 2024 | 6 Months 2025 (in thousands) | % of Revenues 2025 | 6 Months 2024 (in thousands) | % of Revenues 2024 | | :-------------------------- | :--------------------------- | :----------------- | :--------------------------- | :----------------- | :--------------------------- | :----------------- | :--------------------------- | :----------------- | | Compensation and benefits | $252,110 | 69% | $197,873 | 75% | $463,659 | 69% | $362,348 | 75% | | Non-compensation expenses | $52,637 | 14% | $46,645 | 18% | $110,769 | 16% | $93,853 | 19% | | **Total operating expenses** | **$304,747** | **83%** | **$244,518** | **92%** | **$574,428** | **85%** | **$456,201** | **95%** | - Total operating expenses increased by **26% to $574.4 million** for H1 2025, primarily due to higher compensation and benefits expenses[161](index=161&type=chunk)[162](index=162&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) - As a percentage of revenues, total operating expenses **decreased from 95% to 85%** for H1 2025, indicating improved operating leverage[161](index=161&type=chunk)[162](index=162&type=chunk) [Compensation and Benefits Expenses](index=29&type=section&id=Compensation%20and%20Benefits%20Expenses_MD&A) - Compensation and benefits expenses increased due to **increased headcount** and a higher discretionary bonus accrual, reflecting higher revenues[166](index=166&type=chunk)[167](index=167&type=chunk) - As a percentage of revenues, compensation and benefits **decreased from 75% to 69%** for H1 2025, indicating improved efficiency[166](index=166&type=chunk)[167](index=167&type=chunk) [Non-Compensation Expenses](index=30&type=section&id=Non-Compensation%20Expenses_MD&A) - Non-compensation expenses increased by **18% to $110.8 million** for H1 2025, primarily due to increased travel, communication, and technology expenses[169](index=169&type=chunk)[170](index=170&type=chunk) - As a percentage of revenues, non-compensation expenses **decreased from 19% to 16%** for H1 2025[169](index=169&type=chunk)[170](index=170&type=chunk) [Other Income and Expenses](index=30&type=section&id=Other%20Income%20and%20Expenses_MD&A) - Other income and expenses increased to **$9.7 million** for H1 2025, driven by net gains on financial assets and earnings in MA Financial[172](index=172&type=chunk)[173](index=173&type=chunk) [Provision for Income Taxes](index=31&type=section&id=Provision%20for%20Income%20Taxes_MD&A) - Income tax expense for Q2 2025 was **$17.4 million** on pre-tax income of $64.1 million[175](index=175&type=chunk) - For H1 2025, income tax expense was **$6.7 million** on pre-tax income of $107.2 million, a significant change from a benefit in 2024[176](index=176&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through advisory fees, cash, investments, and credit facilities [Regulatory Capital](index=32&type=section&id=Regulatory%20Capital) - U.S. Broker Dealer's net capital of **$230,593 thousand** as of June 30, 2025, significantly exceeded its minimum requirement[187](index=187&type=chunk)[115](index=115&type=chunk) [Tax Receivable Agreement](index=32&type=section&id=Tax%20Receivable%20Agreement) - The company has a tax receivable agreement to pay eligible Managing Directors **85% of cash savings** from tax basis increases[188](index=188&type=chunk) - As of June 30, 2025, **$298.8 million is payable** under the agreement, with an estimated $31.6 million due within one year[191](index=191&type=chunk)[196](index=196&type=chunk) - Early termination or change of control could trigger accelerated payments based on assumptions[192](index=192&type=chunk) [Cash Flows](index=33&type=section&id=Cash%20Flows_MD&A) Summary of Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | | :------------------------------------ | :------------------ | :------------------ | | Operating Activities | $38,687 | -$25,036 | | Investing Activities | -$113,057 | $108,760 | | Financing Activities | -$117,796 | -$119,555 | | Net increase (decrease) in cash | -$190,663 | -$35,972 | | Cash, cash equivalents, and restricted cash, end of period | $222,516 | $151,243 | - Operating activities generated a net inflow of **$38.7 million** in H1 2025, a reversal from a $25.0 million outflow in H1 2024[193](index=193&type=chunk) - Investing activities resulted in a net outflow of **$113.1 million** in H1 2025, mainly due to net purchases of investments[193](index=193&type=chunk) - Financing activities resulted in a net outflow of **$117.8 million** in H1 2025, primarily for dividends and stock repurchases[193](index=193&type=chunk) [Contractual Obligations](index=34&type=section&id=Contractual%20Obligations) - The company has a total payable of **$298.8 million** under the tax receivable agreement[196](index=196&type=chunk) - Contractual obligations also include operating leases for corporate office space and an aircraft[197](index=197&type=chunk) [Market Risk and Credit Risk](index=34&type=section&id=Market%20Risk%20and%20Credit%20Risk) The company is not subject to significant market or credit risk due to its business model [Risks Related to Cash and Short-Term Investments](index=34&type=section&id=Risks%20Related%20to%20Cash%20and%20Short-Term%20Investments) - Cash and cash equivalents are primarily invested in **U.S. and U.K. sovereign debt** and money market securities[199](index=199&type=chunk) - Cash and short-term investments are not considered subject to **material market risks**[199](index=199&type=chunk) [Credit Risk](index=34&type=section&id=Credit%20Risk) - The company regularly reviews accounts receivable and maintains an **allowance for credit losses**[200](index=200&type=chunk) [Exchange Rate Risk](index=34&type=section&id=Exchange%20Rate%20Risk) - The company is exposed to exchange rate risk from non-U.S. dollar denominated assets and liabilities[201](index=201&type=chunk) - Other comprehensive income included gains of **$2.6 million** for H1 2025 from foreign currency fluctuations[201](index=201&type=chunk) - **No derivative instruments** are used to hedge foreign currency fluctuations[201](index=201&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines critical accounting policies requiring significant management judgment [Revenue and Expense Recognition](index=35&type=section&id=Revenue%20and%20Expense%20Recognition_MD&A) - Most advisory revenue is **recognized over time** as performance obligations are fulfilled[205](index=205&type=chunk)[206](index=206&type=chunk) - Transaction fees are **constrained until substantial completion** and specified conditions are met to prevent significant revenue reversal[207](index=207&type=chunk)[208](index=208&type=chunk) [Accounts Receivable and Allowance for Credit Losses](index=35&type=section&id=Accounts%20Receivable%20and%20Allowance%20for%20Credit%20Losses_MD&A) - Accounts receivable are presented net of an **allowance for credit losses**, determined by assessing collectability[210](index=210&type=chunk)[211](index=211&type=chunk) - Receivables are stratified into short-term and private capital advisory categories for separate evaluation[211](index=211&type=chunk) [Income Taxes](index=36&type=section&id=Income%20Taxes_MD&A) - Income taxes are accounted for under **ASC 740**, recognizing tax benefits/expenses on temporary differences and deferred tax assets[214](index=214&type=chunk) - The company applies a two-step approach for uncertain tax positions, with **no unrecognized tax benefits** recorded[215](index=215&type=chunk) [Recent Accounting Developments](index=36&type=section&id=Recent%20Accounting%20Developments_MD&A) - Refer to Note 3 for a discussion of recently issued accounting developments[216](index=216&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the market risk disclosures provided in Item 2, Management's Discussion and Analysis - Quantitative and qualitative disclosures about market risk are set forth in 'Item 2—Management's Discussion and Analysis of Financial Condition and Results of Operations—Market Risk and Credit Risk'[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[217](index=217&type=chunk) - **No material changes** in internal control over financial reporting occurred during the period[218](index=218&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company discloses ongoing legal proceedings, including an appeal and a dismissed class action lawsuit - The company is involved in judicial or regulatory proceedings, but believes no current proceedings would have a **significant adverse effect**[220](index=220&type=chunk) - An appeal is ongoing regarding a Delaware Court of Chancery order that found certain provisions of the **Stockholders Agreement invalid**[221](index=221&type=chunk) - Claims against Moelis entities in a class action lawsuit related to the **Archer Aviation merger were dismissed** by the Court[222](index=222&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the Risk Factors previously described in the company's Annual Report - **No material changes** to the Risk Factors described in the Annual Report on Form 10-K for the year ended December 31, 2024[223](index=223&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports share repurchases during the quarter, with $61.1 million remaining under its program - **No unregistered sales** of equity securities occurred[224](index=224&type=chunk) Issuer Purchases of Equity Securities (Second Quarter 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan or Programs | | :---------------- | :------------------------------- | :--------------------------- | :--------------------------------------------------------------- | :-------------------------------------------------------------------------------------- | | April 1 - April 30 | 9,796 | $52.12 | 9,796 | $62.0 million | | May 1 - May 31 | 20,988 | $53.26 | 17,232 | $61.1 million | | June 1 - June 30 | — | — | — | $61.1 million | | **Total** | **30,784** | **$52.90** | **27,028** | **$61.1 million** | - The share repurchase program, authorized for up to $100 million, had **$61.1 million remaining** as of June 30, 2025[226](index=226&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - No defaults upon senior securities[227](index=227&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[228](index=228&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reported no other information for the period - None[229](index=229&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q - Includes organizational documents, incentive plan forms, related-party agreements, CEO/CFO Certifications, and Inline XBRL documents[230](index=230&type=chunk) [SIGNATURES](index=40&type=section&id=SIGNATURES) - Report signed by Kenneth Moelis (CEO) and Christopher Callesano (CFO) on July 24, 2025[233](index=233&type=chunk)
Moelis & pany(MC) - 2025 Q2 - Earnings Call Presentation
2025-07-24 21:00
Investor Presentation July 2025 Forward Looking Statements This presentation contains forward-looking statements, which reflect the Firm's current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "target," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative versio ...
Moelis & pany(MC) - 2025 Q2 - Quarterly Results
2025-07-24 20:18
[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) This section provides an overview of the firm's strong financial results for Q2 and H1 2025, alongside key strategic and operational achievements [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) Moelis & Company reported significant year-over-year growth in the second quarter of 2025, with revenues increasing by 38% to $365.4 million. Both GAAP and Adjusted net income saw substantial increases, with diluted EPS rising to $0.53 from $0.17-$0.18 in the prior year period, reflecting a stronger operational performance and improved pre-tax margins Second Quarter 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $365.4 M | $264.6 M | +38% | | GAAP Net Income | $46.8 M | $14.9 M | +213% | | Adjusted Net Income | $45.5 M | $14.5 M | +214% | | GAAP Diluted EPS | $0.53 | $0.17 | +212% | | Adjusted Diluted EPS | $0.53 | $0.18 | +194% | | Adjusted Pre-tax Margin | 17.6% | 8.3% | N/A | [First Half 2025 Performance](index=1&type=section&id=First%20Half%202025%20Performance) For the first half of 2025, the firm's revenues grew 39% to $672.0 million. Net income and EPS more than tripled compared to the first half of 2024, partly driven by net tax benefits of approximately $0.28 per share related to share-based awards settlement First Half 2025 Financial Highlights | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $672.0 M | $482.1 M | +39% | | GAAP Net Income | $100.5 M | $32.4 M | +210% | | Adjusted Net Income | $99.9 M | $32.8 M | +205% | | GAAP Diluted EPS | $1.17 | $0.39 | +200% | | Adjusted Diluted EPS | $1.17 | $0.40 | +193% | | Adjusted Pre-tax Margin | 16.0% | 6.7% | N/A | - GAAP and Adjusted net income for the first half of 2025 included net tax benefits of approximately **$0.28 per share** (diluted) from the settlement of share-based awards[3](index=3&type=chunk) [Strategic and Operational Highlights](index=1&type=section&id=Strategic%20and%20Operational%20Highlights) The company attributes its strong performance to its integrated global platform and a more favorable deal environment. It continued its organic growth strategy by adding five Managing Directors in key advisory sectors during the second quarter - CEO Ken Moelis stated the firm enters the second half of the year in a "more favorable deal environment and with a significantly expanded range of expertise"[4](index=4&type=chunk) - The firm continued its growth strategy by hiring **five new Managing Directors** in Q2 2025: - Three in Private Capital Advisory - One in Technology (Europe) - One in Business Services (Europe)[7](index=7&type=chunk)[12](index=12&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth analysis of the firm's revenue drivers, expense trends, and tax considerations for the reporting periods [Revenues](index=2&type=section&id=Revenues) Revenue growth for both the second quarter and first half of 2025 was primarily driven by an increase in the average fees earned per completed transaction. The firm noted particular strength in its M&A and Capital Markets advisory services compared to the prior year periods - Second quarter 2025 revenues increased **38% to $365.4 million**, attributed to higher average fees per transaction, especially in M&A and Capital Markets[10](index=10&type=chunk) - First half 2025 revenues increased **39% to $672.0 million**, also driven by an increase in average fees earned per completed transaction[11](index=11&type=chunk) [Expenses](index=3&type=section&id=Expenses) Operating expenses rose in 2025, driven by increases in both compensation and non-compensation categories. Compensation expenses grew due to higher headcount and increased bonus accruals tied to stronger revenues. Non-compensation expenses were pushed up by increased travel and technology costs, also related to higher headcount Adjusted Operating Expenses as a Percentage of Revenues | Expense Category (% of Revenues) | Q2 2025 (Adjusted) | Q2 2024 (Adjusted) | H1 2025 (Adjusted) | H1 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Compensation & Benefits | 69.0% | 75.1% | 69.0% | 75.1% | | Non-Compensation Expenses | 14.4% | 17.6% | 16.5% | 19.5% | | **Total Operating Expenses** | **83.4%** | **92.7%** | **85.5%** | **94.6%** | - The increase in compensation and benefits expenses was primarily due to increased headcount and a higher bonus expense accrual resulting from higher revenues[15](index=15&type=chunk) - The rise in non-compensation expenses was mainly driven by increased travel and related expenses, along with higher communications and technology costs due to increased headcount[16](index=16&type=chunk) [Other Income and Taxes](index=4&type=section&id=Other%20Income%20and%20Taxes) Other income increased significantly in both the second quarter and first half of 2025 compared to the prior year. For tax purposes, the company's Adjusted results assume a 100% corporate effective tax rate of 29.5% for the second quarter of 2025 Other Income (Loss) | Other Income ($ in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP | $3,510 | $1,708 | $9,651 | $5,937 | | Adjusted | $3,789 | $2,696 | $9,930 | $6,002 | - For Adjusted reporting, the firm assumed that **100%** of its Q2 2025 operating results were taxed at a corporate effective tax rate of **29.5%**[20](index=20&type=chunk) [Capital Management and Shareholder Returns](index=4&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) This section outlines the firm's robust financial position, including its liquidity and capital structure, and details its commitment to shareholder returns through dividend declarations [Balance Sheet and Liquidity](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity) The company maintained a strong and liquid financial position as of June 30, 2025, holding $474.9 million in cash and liquid investments with no funded debt or goodwill on its balance sheet - As of June 30, 2025, the company held cash and short-term investments of **$474.9 million**[7](index=7&type=chunk)[21](index=21&type=chunk) - The balance sheet remains strong with **no funded debt or goodwill**[7](index=7&type=chunk)[21](index=21&type=chunk) [Dividend Declaration](index=4&type=section&id=Dividend%20Declaration) The Board of Directors has declared a regular quarterly dividend of $0.65 per share, payable in September 2025 to stockholders of record in August 2025 - A regular quarterly dividend of **$0.65 per share** was declared[1](index=1&type=chunk)[21](index=21&type=chunk) - The dividend is payable on September 18, 2025, to stockholders of record on August 4, 2025[21](index=21&type=chunk) [Appendix: Financial Statements and Reconciliations](index=7&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This appendix provides detailed GAAP financial statements and comprehensive reconciliations to Adjusted (non-GAAP) figures, outlining key adjustments for tax and share-based awards [GAAP Consolidated Statement of Operations](index=8&type=section&id=GAAP%20Consolidated%20Statement%20of%20Operations) This section presents the detailed unaudited GAAP Consolidated Statement of Operations for the three and six-month periods ending June 30, 2025, and 2024, providing a line-by-line breakdown of revenues, expenses, and net income GAAP Consolidated Statement of Operations (Unaudited) | ($ in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Revenues | $365,376 | $671,969 | | Total Expenses | $304,747 | $574,428 | | Operating income (loss) | $60,629 | $97,541 | | Income (loss) before income taxes | $64,139 | $107,192 | | Net income (loss) | $46,755 | $100,530 | | Net income (loss) attributable to Moelis & Company | $41,538 | $91,806 | [Reconciliation of GAAP to Adjusted (non-GAAP) Financials](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20%28non-GAAP%29%20Financials) This section provides detailed tables reconciling the company's GAAP financial results to its Adjusted (non-GAAP) figures for the second quarters and first halves of 2025 and 2024. Key adjustments include reclassifying Tax Receivable Agreement (TRA) liability impacts, assuming a 100% corporate tax rate, and assuming all partnership units are exchanged into Class A common stock - Adjustments are made to illustrate results as if **100%** of the Firm's income is taxed at the corporate effective tax rate[40](index=40&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - The reconciliation assumes all outstanding Class A partnership units have been exchanged into Class A common stock to calculate Adjusted weighted-average shares[41](index=41&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - Adjustments related to the Tax Receivable Agreement (TRA) liability are reclassified from 'other income (expenses)' to the 'provision for income taxes' for Adjusted results[39](index=39&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk)
LVMH: Solid results in the first half of 2025 despite the prevailing environment
Globenewswire· 2025-07-24 15:46
Core Insights - LVMH Moët Hennessy Louis Vuitton reported a revenue of €39.8 billion for the first half of 2025, reflecting a 4% decrease compared to the same period in 2024 [5][6] - Profit from recurring operations was €9 billion, resulting in an operating margin of 22.6% [3][5] - The Group's net profit amounted to €5.7 billion, down 22% year-over-year [5][6] Financial Highlights - Revenue for the first half of 2024 was €41.7 billion, while it decreased to €39.8 billion in 2025, marking a 4% decline [5] - Profit from recurring operations fell from €10.7 billion in 2024 to €9 billion in 2025, a decrease of 15% [5][8] - Net profit attributable to the Group decreased from €7.3 billion in 2024 to €5.7 billion in 2025, a decline of 22% [5][8] - Operating free cash flow increased by 29% to €4 billion [5][6] - Net financial debt decreased by 16% from €12.2 billion in 2024 to €10.2 billion in 2025 [5] Revenue by Business Group - Wines & Spirits revenue decreased from €2.8 billion in 2024 to €2.6 billion in 2025, an 8% decline [5][9] - Fashion & Leather Goods revenue fell from €20.8 billion in 2024 to €19.1 billion in 2025, also an 8% decline [5][10] - Perfumes & Cosmetics revenue slightly decreased from €4.1 billion in 2024 to €4.1 billion in 2025, a 1% decline [5][11] - Watches & Jewelry revenue remained stable at €5.1 billion in both years [5][13] - Selective Retailing revenue was flat at €8.6 billion in 2025 compared to €8.6 billion in 2024 [5][14] Business Group Performance - The Wines & Spirits segment experienced a decline in revenue and profit, with a notable drop in cognac demand, although champagne showed improvement [9] - The Fashion & Leather Goods segment demonstrated resilience with local customers, maintaining a high operating margin despite a decline in revenue [10] - The Perfumes & Cosmetics segment remained stable, driven by strong innovation and selective retailing strategies [11][12] - The Watches & Jewelry segment saw stable performance, with ongoing investments in store renovations and successful product launches [13] - The Selective Retailing segment achieved growth in revenue and profit, particularly through Sephora's strong performance [14] Outlook - LVMH remains confident in its long-term potential and will continue to focus on enhancing brand desirability and product quality amid geopolitical and economic uncertainties [15][16]