Moelis & pany(US:MC)2026-02-04 21:15Financial Performance - Fourth quarter revenues were $487.9 million, an increase of 11% from the prior year period [2]. - Full year 2025 GAAP revenues reached $1,516.8 million, with Adjusted revenues of $1,535.9 million, representing a 28% increase from the prior year [3]. - Fourth quarter GAAP net income was $99.0 million, or $1.10 per share (diluted), while Adjusted net income was $97.6 million, or $1.13 per share (diluted) [4]. - Full year 2025 GAAP net income was $259.6 million, or $2.94 per share (diluted), with Adjusted net income of $256.4 million, or $2.99 per share (diluted), reflecting a 71% increase from the prior year [3]. - Revenues for Q4 2025 were $487.9 million, an increase from $438.7 million in Q4 2024 [38]. - For the three months ended December 31, 2025, Moelis & Company reported a net income attributable to the company of $97.586 million, an increase from $87.865 million in the previous period, reflecting a growth of approximately 11.5% [39]. - The company's revenues for the year ended December 31, 2025, were $1,535.888 million, up from $1,516.796 million in 2024, indicating a year-over-year increase of about 1.3% [48]. - The adjusted net income for the year ended December 31, 2025, was $256.356 million, compared to $233.037 million in 2024, representing an increase of approximately 10% [48]. - Basic net income per share for the year ended December 31, 2025, was $3.15, up from $3.11 in the previous year, reflecting a growth of about 1.3% [48]. Expenses and Margins - Total operating expenses for the fourth quarter were $359.9 million, a 17% increase from the prior year, primarily due to higher compensation and benefits expenses [14]. - Non-compensation expenses for the fourth quarter were $61.9 million, up 24% from the prior year, driven by increased deal-related travel and entertainment expenses [15]. - Adjusted pre-tax margin for the fourth quarter was 28.6%, and for the full year 2025, it was 21.5%, up from 16.4% in 2024 [4]. - Non-compensation expenses for the three months ended December 31, 2025, were adjusted to $60.444 million, down from $61.920 million, a decrease of about 2.4% [39]. Other Income and Taxation - Other income on a GAAP basis was $10.0 million for Q4 2025, representing a 65% increase from $6.0 million in Q4 2024 [16]. - For the full year 2025, GAAP other income was $53.6 million, a 132% increase from $23.1 million in 2024 [16]. - Adjusted other income for Q4 2025 was $10.2 million, up 82% from $5.6 million in the prior year [16]. - The provision for income taxes for the year ended December 31, 2025, was $74.105 million, compared to $67.854 million in 2024, indicating an increase of approximately 9.3% [48]. - The effective corporate tax rate for the full year 2025 was 29.8% without the excess tax benefit of equity-based compensation [18]. - The adjusted tax provision for the year ended December 31, 2025, excludes benefits or costs related to adjustments from past partnership unit exchanges, with a net expense of $0.8 million not included in the corporate tax provision [50]. Shareholder Returns and Capital Management - The firm declared a regular quarterly dividend of $0.65 per share and approved a share repurchase authorization of up to $300 million [4]. - As of December 31, 2025, the company held cash and liquid investments of $848.8 million with no debt or goodwill [20]. - In 2025, the company repurchased approximately 0.9 million shares at an average price of $64.31 per share, totaling $61.0 million [21]. - The company plans to execute a share repurchase authorization of up to $300.0 million with no expiration date [22]. - The Board of Directors declared a quarterly dividend of $0.65 per share, payable on March 26, 2026 [21]. Organizational Changes - The firm promoted 12 advisory professionals to Managing Director in 2025 and an additional 13 in early 2026, totaling 178 Managing Directors [4]. - Moelis & Company anticipates that duplicate expenses related to the new United Kingdom office will cease once the new space is occupied, expected to commence in Q2 2026 [39]. Adjustments and Reclassifications - The company made adjustments totaling $19.092 million related to the reclassification of other income to revenues for the year ended December 31, 2025 [48]. - The company recorded a gain of $19.1 million from the sale of 5.0 million shares of MA Financial Group Limited in Q3 2025 [17].