Moelis & pany(MC) - 2025 Q3 - Quarterly Results

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]