Moelis & Company Shines Bright in Q1 2025 with Record New Business Origination and Strong Financials

Moelis & Company, the world's leading independent investment bank, has kicked off its financial year on a high note, delivering impressive results in the first quarter of 2025. The firm's revenue soared by 41% compared to the same period last year, reaching $307 million, as per the recent conference call transcript reported on April 23, 2025.

The growth in revenue can be attributed to significant gains in the Mergers and Acquisitions (M&A) and Capital Markets segments. This uptick is a testament to the firm's exceptional go-to-market strategy, particularly in its key areas of focus – tech and energy – which have shown remarkable strength throughout the quarter.

Moelis & Company's leadership team is optimistic about the year ahead, despite acknowledging recent volatility in the capital markets. Ken Moelis, Chairman and CEO, stated that while this wave of uncertainty might temporarily slow M&A activity, it presents an opportunity for clients to reassess their strategic needs. The firm remains committed to providing world-class advice and guidance during these challenging times.

In terms of financials, the company's compensation expense ratio stood at 69% in Q1 2025, a figure that is expected to fluctuate as the year progresses based on revenue growth and hiring trends. Non-compensation expenses rose by approximately 15% year-over-year, mainly due to investments in client conferences.

Maintenance of a robust balance sheet with zero funded debt underscores the firm's prudent financial management. The company has also declared a regular quarterly dividend of $0.65 per share, reflecting its commitment to returning value to shareholders.

Moelis & Company continues to invest heavily in its Private Funds Advisory business, recently announcing a senior banker to lead the team. A strong pipeline of additional talent is expected to be announced soon, solidifying the firm's position as market leader in private capital solutions and continuation vehicles.

The company remains focused on expanding its talent pool to fill strategic gaps, including technology-focused Managing Directors in Europe. Its strong cash position, zero debt, and world-class advice delivery capabilities make it well-positioned for future growth and success.