Revenue growth is accelerating, yet operating margins remain pressured at 18.06% due to high talent acquisition costs and significant stock-based compensation expenses.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 1.53B | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 808.68M | 1.5B | 364.39M | 140M | 367.1M | 626.7M | 382.47M | 258.1M | 371.98M | 283.23M | 252.48M | 240.64M | 141.53M | 146.44M | 110.93M |
| Gross Margin % | 52.86% | 99.22% | 30.5% | 16.38% | 37.26% | 40.68% | 40.55% | 34.57% | 41.99% | 41.37% | 41.16% | 43.6% | 27.28% | 35.6% | 28.75% |
| Gross Profit Growth % | - | 312.99% | 160.28% | -61.86% | -41.42% | 63.86% | 48.19% | -30.62% | 31.33% | 12.18% | 4.92% | 70.03% | -3.35% | 32.01% | - |
| Operating Expenses | 531.24M | 1.23B | 191.45M | 180.35M | 151M | 130.78M | 116.76M | 143.55M | 145.2M | 118.95M | 91.39M | 103.14M | 93.79M | 76.33M | 72.89M |
| OpEx % of Revenue | - | 81.16% | 16.03% | 21.1% | 15.33% | 8.49% | 12.38% | 19.23% | 16.39% | 17.37% | 14.9% | 18.69% | 18.08% | 18.56% | 18.89% |
| Selling, General & Admin | 409.02M | 29.77M | 107.54M | 107.38M | 84.52M | 83.73M | 80.59M | 71.03M | 74.01M | 62.23M | 53.3M | 54.24M | 48.66M | 41M | 39.65M |
| SG&A % of Revenue | - | 1.96% | 9% | 12.56% | 8.58% | 5.44% | 8.54% | 9.51% | 8.35% | 9.09% | 8.69% | 9.83% | 9.38% | 9.97% | 10.28% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 277.45M | 273.86M | 172.94M | -40.35M | 216.1M | 495.92M | 265.71M | 114.54M | 226.78M | 164.28M | 161.09M | 137.5M | 47.74M | 70.11M | 38.05M |
| Operating Margin % | 18.13% | 18.06% | 14.48% | -4.72% | 21.93% | 32.19% | 28.17% | 15.34% | 25.6% | 24% | 26.26% | 24.92% | 9.2% | 17.04% | 9.86% |
| Operating Income Growth % | - | 58.35% | 528.59% | -118.67% | -56.42% | 86.64% | 131.97% | -49.49% | 38.04% | 1.98% | 17.15% | 188% | -31.9% | 84.28% | - |
| EBITDA | 290.09M | 285.74M | 183.39M | -32.03M | 224.07M | 503.16M | 270.42M | 119.51M | 231.41M | 167.83M | 164.27M | 140.14M | 50.01M | 72.41M | 40.55M |
| EBITDA Margin % | 18.96% | 18.84% | 15.35% | -3.75% | 22.74% | 32.66% | 28.67% | 16.01% | 26.12% | 24.51% | 26.78% | 25.39% | 9.64% | 17.6% | 10.51% |
| EBITDA Growth % | 34.98% | 55.81% | 672.46% | -114.3% | -55.47% | 86.07% | 126.28% | -48.36% | 37.88% | 2.16% | 17.22% | 180.21% | -30.93% | 78.55% | - |
| D&A (Non-Cash Add-back) | 12.64M | 11.88M | 10.44M | 8.32M | 7.97M | 7.24M | 4.71M | 4.96M | 4.63M | 3.54M | 3.18M | 2.63M | 2.27M | 2.3M | 2.51M |
| EBIT | 287.4M | 327.47M | 172.94M | -40.35M | 216.1M | 495.92M | 265.71M | 114.54M | 226.78M | 164.28M | 161.09M | 137.5M | 47.74M | 70.11M | 38.05M |
| Net Interest Income | 229K | 0 | 410K | 125K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 229K | 0 | 410K | 125K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 330.58M | 327.47M | 196.01M | -29.15M | 216.32M | 536.31M | 270.11M | 147.5M | 238.45M | 350.35M | 166.67M | 144.06M | 46.3M | 73.02M | 37.72M |
| Pretax Margin % | 21.61% | 21.59% | 16.41% | -3.41% | 21.95% | 34.81% | 28.64% | 19.76% | 26.92% | 51.17% | 27.17% | 26.11% | 8.92% | 17.75% | 9.78% |
| Income Tax | 82.44M | 67.85M | 44.52M | -1.63M | 47.64M | 113.33M | 51.67M | 11.81M | 30.45M | 223.83M | 24.81M | 23.85M | 13.74M | 2.79M | 2.5M |
| Effective Tax Rate % | 24.94% | 20.72% | 22.71% | 5.6% | 22.02% | 21.13% | 19.13% | 8.01% | 12.77% | 63.89% | 14.88% | 16.55% | 29.68% | 3.83% | 6.62% |
| Net Income | 221.2M | 233.04M | 136.02M | -24.7M | 150.34M | 365.21M | 178.83M | 105.09M | 140.68M | 29.4M | 38.39M | 33.1M | -3.01M | 70.22M | 35.22M |
| Net Margin % | 14.46% | 15.36% | 11.39% | -2.89% | 15.26% | 23.71% | 18.96% | 14.08% | 15.88% | 4.29% | 6.26% | 6% | -0.58% | 17.07% | 9.13% |
| Net Income Growth % | 30.33% | 71.33% | 650.69% | -116.43% | -58.83% | 104.22% | 70.16% | -25.3% | 378.5% | -23.41% | 15.96% | 1199.07% | -104.29% | 99.38% | - |
| Net Income (Continuing) | 248.14M | 259.62M | 151.49M | -27.52M | 168.68M | 422.98M | 218.44M | 135.69M | 208M | 126.52M | 141.87M | 120.22M | 32.55M | 70.22M | 35.22M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 135.13M | 111.94M | 37.78M | 10.32M | 14.44M | -10.77M | -35.48M | -49M | -32.61M | 19.31M | 39.6M | 89.04M | 61.01M | 78.05M | 0 |
| EPS (Diluted) | 2.78 | 2.94 | 1.78 | -0.36 | 2.14 | 5.34 | 2.95 | 1.89 | 2.78 | 0.78 | 1.58 | 1.55 | -0.19 | 9.12 | 4.57 |
| EPS Growth % | 27.52% | 65.17% | 594.44% | -116.82% | -59.93% | 81.02% | 56.08% | -32.01% | 256.41% | -50.63% | 1.94% | 915.79% | -102.08% | 99.56% | - |
| EPS (Basic) | - | 3.11 | 1.89 | -0.36 | 2.29 | 5.79 | 3.16 | 2.09 | 2.78 | 0.96 | 1.83 | 1.65 | -0.19 | 9.12 | 4.57 |
| Diluted Shares Outstanding | 79.48M | 79.23M | 76.61M | 68.5M | 70.32M | 68.44M | 60.72M | 55.51M | 50.69M | 37.68M | 24.24M | 21.36M | 15.91M | 7.7M | 7.7M |
| Basic Shares Outstanding | 75.44M | 75.03M | 71.88M | 68.5M | 65.77M | 63.13M | 56.57M | 50.37M | 50.69M | 30.6M | 20.93M | 20.02M | 15.91M | 7.7M | 7.7M |
| Dividend Payout Ratio | - | 89.56% | 2.28% | - | 116.17% | 131.42% | 158.21% | 199.04% | 223.08% | 869.71% | 403.01% | 244.41% | - | 107.54% | 6.44% |
High compensation expense volatility
As reported in recent financial filings, Moelis & Company achieved a 26.98% year-over-year revenue growth, signaling a robust recovery in deal activity that suggests the firm is successfully capturing market share within the competitive landscape of high-complexity advisory mandates during the current market cycle.
The firm's revenue trajectory appears highly sensitive to the timing of deal closures, which creates significant quarterly lumpiness. Investors should monitor whether this growth is sustainable or merely a reflection of a backlog clearing, as the firm's reliance on success fees makes top-line performance inherently volatile.
Based on the provided income statement data, Moelis & Company's operating margin of 18.06% indicates significant pressure compared to historical boutique peaks, suggesting that aggressive talent acquisition costs are currently outpacing the firm's ability to scale fee income effectively in the present economic environment.
The disparity between gross profit and operating income highlights the firm's heavy reliance on human capital, where compensation expenses act as a primary drag on profitability. This suggests that until deal volume reaches a critical threshold to leverage fixed salary costs, margin expansion may remain elusive.
According to the quarterly income statement data, Moelis & Company frequently utilizes substantial stock-based compensation, with figures reaching as high as $86.2M in 2025Q1, which significantly complicates the assessment of true cash-generating power and dilutes the quality of reported net income for shareholders.
The heavy reliance on equity-based awards suggests a strategy to align Managing Director interests, yet it creates a persistent wedge between GAAP earnings and actual economic value creation. Analysts should treat these non-cash charges as a recurring operational expense rather than an anomaly when evaluating the firm's long-term profitability.
As indicated by the firm's historical performance, the reliance on transactional success fees leaves Moelis & Company vulnerable to sudden downturns in deal velocity, which may lead to rapid margin compression if the current high-cost structure is not adjusted in response to a potential market contraction.
While the restructuring segment provides a theoretical hedge, the firm's overall profitability remains tethered to the broader M&A environment. Investors should consider whether the current valuation adequately prices in the risk of a prolonged deal-making slump, which would likely expose the firm's high fixed-cost base.
Quick answers to the most common questions about buying MC stock.
Moelis & Company (MC) is profitable, generating $233.0M in net income for the fiscal year ending 2025 with a net profit margin of 15.4%.
Moelis & Company (MC) reported an operating income of $273.9M, resulting in an operating profit margin of 18.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Moelis & Company (MC) generated $1.50B in gross profit for the year, representing a gross profit margin of 99.2%. This demonstrates the company's core pricing power and production efficiency.