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 ...

[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)

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]

Core Viewpoint - Moelis & Company (NYSE: MC) stock has experienced a significant rebound, although it has not fully matched the performance of other U.S.-listed independent advisors since the previous analysis [1]. Group 1 - The stock of Moelis & Company has been on a positive trend following a prior selloff [1].

Core Viewpoint - Moelis (MC) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of earnings surprises [1][5]. Earnings Performance - In the most recent quarter, Moelis reported earnings of $0.57 per share, falling short of the expected $0.64 per share, resulting in a surprise of 12.28% [2]. - In the previous quarter, Moelis significantly exceeded expectations, reporting $1.18 per share against a consensus estimate of $0.46 per share, leading to a surprise of 156.52% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Moelis, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Moelis stands at +1.82%, suggesting analysts are optimistic about its near-term earnings potential [8]. Zacks Rank and Success Rate - Moelis holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, historically results in a positive surprise rate of nearly 70% [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Group 1 - LVMH Moët Hennessy Louis Vuitton has a diverse portfolio across various sectors including Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and Selective Retailing [2] - The company’s Wines and Spirits division features renowned brands such as Moët & Chandon, Hennessy, and Château d'Yquem, among others [2] - In the Fashion and Leather Goods sector, LVMH includes prestigious names like Louis Vuitton, Christian Dior, and Fendi [2] Group 2 - LVMH is also involved in the Perfumes and Cosmetics market with brands like Guerlain and Fenty Beauty by Rihanna [2] - The Watches and Jewelry division includes luxury brands such as Bulgari and Tiffany & Co [2] - LVMH operates in Selective Retailing through entities like Sephora and DFS [2]

Financial Performance & Returns - The company returned approximately $28 billion to shareholders[7, 65] - The company's Last Twelve Months (LTM) revenue as of Q1 2025 was $1284 million[7] - The total shareholder return is approximately 400%[7] - Revenue growth from FY 2014 to LTM Q1 2025 was 147%[7] Talent & Global Reach - The company has 168 Managing Directors (MDs), with approximately 45% being internally promoted[7] - The company has approximately 1300 employees[7] - The company has a global presence with 23 locations and advises clients in over 45 countries[7] - The company has deep knowledge in over 85 industries/sectors[7] Advisory Services - The company has restructured approximately $1 trillion of liabilities since its IPO in 2014[26] - The company's Private Capital Advisory team has advised on over $75 billion in private capital[39] - The company has raised approximately $200 billion in capital since its IPO[36] M&A Performance - The company has been involved in $22 trillion in transaction volume since its IPO[22]

Core Insights - The article compares Goldman Sachs (GS) and Moelis & Company (MC), highlighting their distinct business models within the investment banking industry, with GS being a global financial giant and MC being a focused advisory-driven boutique [1][2]. Goldman Sachs (GS) - GS maintains a leadership position in global investment banking, particularly in M&A advisory, equity, and debt underwriting, with a 24% increase in IB revenues in 2024 due to a rebound in corporate financing activity [3]. - However, GS experienced an 8% decline in IB revenues in Q1 2025, attributed to market turmoil and uncertainty over monetary policy, though its leading position in deal-making suggests enduring client trust [4]. - The firm is strategically exiting lower-margin consumer finance businesses to focus on high-return sectors like investment banking and trading, including ending its partnership with Apple on the Apple Card and Apple Savings account [5]. - Goldman Asset Management aims for aggressive growth in private credit, targeting a portfolio of $300 billion by 2030, reinforcing its long-term growth potential [6]. Moelis & Company (MC) - MC demonstrates resilient performance driven by its high-quality advisory platform, achieving a 10% compound annual growth rate (CAGR) over five years despite revenue declines in 2019, 2022, and 2023 [7]. - The company is well-positioned to benefit from structural tailwinds in M&A and capital advisory, with elevated corporate debt levels driving demand for restructuring services [8]. - MC's business is diversified across various sectors and geographies, with no significant client concentration, and has advised on over $5.1 trillion in transactions since inception [9]. - MC projects a 42.4% year-over-year earnings growth for 2026, significantly outpacing GS's projected 13.1% growth, and offers a higher dividend yield of 4.64% compared to GS's 1.92% [10][22]. Performance and Valuation Comparison - Over the past year, GS shares gained 38.7%, while MC shares increased by 7.5%, both outperforming the industry average rise of 33.1% [11]. - GS is currently trading at a forward P/E of 13.26X, higher than its five-year median of 10.16X, while MC trades at a forward P/E of 25.65X, above its five-year median of 20.16X [14]. - Both companies have dividend yields exceeding the industry average, with MC having a notable edge [16]. Estimates and Growth Potential - The Zacks Consensus Estimate for GS indicates a revenue rise of 3.8% and 5.1% for 2025 and 2026, respectively, with earnings growth of 9.6% and 13.1% [19]. - In contrast, MC's estimates reflect a revenue increase of 2.8% and 20.9% for 2025 and 2026, with earnings growth of 0.6% and 42.4% [20]. - MC's advisory-driven model aligns well with the rising demand for restructuring services, indicating significant long-term potential [21][22]. - Despite trading at a premium valuation, MC's market capitalization of $4.4 billion compared to GS's $188.3 billion suggests more room for growth [23].

Summary of Moelis & Company Conference Call Company Overview - **Company**: Moelis & Company - **New CEO**: Naved Mamuzadigan will become CEO on October 1, 2023, transitioning from co-president, while Ken Moelis will become Executive Chairman and Jeff Rach will be appointed Executive Vice Chairman [2][4][5] Key Points and Arguments Leadership Transition - The transition is seen as a natural evolution of the firm, with a focus on promoting internal talent [4][5][6] - 45% of managing directors (MDs) are internally promoted, indicating a strong culture of talent development [5] Strategic Focus - The firm is focusing on major verticals with significant revenue opportunities, including technology and oil and gas [7][8] - A major expansion into private equity fundraising is planned, with a new focus on continuation vehicles [7][8] Market Environment - Optimism is expressed regarding the M&A environment, with indications of increased transaction activity despite previous setbacks [10][11] - The pipeline for new business is reportedly strong, with activity levels comparable to historical highs [13] Private Equity and Sponsor Clients - There is pressure on private equity firms to return capital to investors due to limited exit activity over the past few years [14][15] - Continuation vehicles are highlighted as a key opportunity for sponsors to provide liquidity to investors while retaining ownership of portfolio companies [15][34] IPO Market - The IPO market is beginning to open for certain types of companies, which could encourage more activity from sponsors [17] Interest Rates - While there is a desire for interest rate cuts, sponsors are not solely waiting for this to proceed with transactions [20][21] - Long-term concerns about elevated ten-year yields are acknowledged, but not seen as an immediate threat [22] Private Funds Advisory (PFA) - The PFA business is a significant growth area, with key hires made to strengthen this segment [23][24] - Continuation vehicles and LP to LP secondaries are identified as major opportunities within the PFA space [27][29] Restructuring Business - The restructuring segment is performing well, with steady activity levels expected even in a recovering economy [35][38] Hiring and Talent Acquisition - Competition for top talent remains high, with a focus on cultural fit and alignment with the firm's values [40][41] - The firm aims to maintain a nimble approach to hiring, especially during uncertain times [46][47] Financial Metrics - The compensation ratio was reported at 69% in Q1, with a target of low 60s for equilibrium in the long term [51][52] - Non-compensation growth is targeted at 15% year-over-year, with a focus on efficiency and technology adoption [57] Technology and AI - AI is seen as a potential tool to improve efficiency and enhance the capabilities of junior bankers [58][62] Overall Strategy - The firm aims to maintain its core values of collaboration, transparency, and a strong balance sheet while striving to be the best independent investment bank [64][65] Additional Important Points - The firm is committed to building long-term client relationships, which are central to its strategy and success [64][65] - The focus on internal promotions and talent development is a key differentiator for Moelis & Company in the competitive investment banking landscape [5][6]

Company Overview - Moelis (MC) shares have increased by approximately 7.5% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Estimates for Moelis have trended downward, with a consensus estimate shift of -14.05% in the past month [2] - The stock has received a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [4] VGM Scores - Moelis has an average Growth Score of C, but it significantly lags in Momentum Score with an F, and also has a Value Score of F, placing it in the lowest quintile for investment strategies [3] - The overall aggregate VGM Score for Moelis is F, which is a critical indicator for investors not focused on a single strategy [3] Industry Comparison - Moelis is part of the Zacks Financial - Investment Bank industry, where Interactive Brokers Group, Inc. (IBKR) has gained 22.3% over the past month [5] - Interactive Brokers reported revenues of $1.4 billion for the last quarter, reflecting a year-over-year increase of +16%, with an EPS of $1.88 compared to $1.64 a year ago [5] - For the current quarter, Interactive Brokers is expected to post earnings of $1.73 per share, showing a year-over-year change of -1.7% [6]