Moelis & pany(US:MC)2025-10-29 21:39Financial 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].