Moelis & Company’s third quarter saw revenue growth, but sales fell short of Wall Street expectations. Management attributed the strong year-over-year revenue increase to robust activity in large strategic and sponsor-driven mergers and acquisitions (M&A), as well as continued momentum in its capital markets advisory business. CEO Navid Mahmoodzadegan pointed to landmark transactions across utilities, technology, and sports sectors, stating the firm’s average M&A fee rose due to a higher mix of large transactions. The company also noted a significant increase in managing director hires to strengthen expertise in growth areas.

Is now the time to buy MC? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Moelis’s Q3 Earnings Call

• Kenneth Worthington (JPMorgan) asked if AI disruption could impact restructuring mandates. CEO Navid Mahmoodzadegan said AI’s effects are still emerging but may create future restructuring opportunities.
• Devin Ryan (Citizens JMP) questioned the breadth of the M&A recovery beyond large deals. Mahmoodzadegan confirmed signs of increased middle-market sponsor activity and expects broadening into 2026.
• James Yaro (Goldman Sachs) asked about the impact of deregulatory trends on deal activity. Mahmoodzadegan highlighted that a more flexible regulatory environment is enabling larger transactions and boosting market confidence.
• Brennan Hawken (BMO Capital Markets) inquired about the effect of Moelis Australia share sales on financial ratios. CFO Chris Callesano explained the gain is periodically reclassified as revenue and does not indicate elevated expense or turnover trends.
• Alexander Bond (KBW) asked about future hiring plans and focus areas. Mahmoodzadegan emphasized ongoing hiring, particularly in private capital advisory and sectors with high growth potential.

Catalysts in Upcoming Quarters

In the quarters ahead, our analysts will focus on (1) signs that the M&A recovery is extending to middle-market and sponsor-driven transactions, (2) sustained growth and integration of the private capital advisory segment, and (3) further normalization of compensation ratios as revenue and hiring scale. Execution in new talent acquisition and ongoing adaptation to regulatory and credit market shifts will also be closely monitored.

Moelis currently trades at $62.14, down from $66.85 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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