Moelis delivered a strong Q4, with results that were above Wall Street expectations and a positive market reaction. Management attributed the quarter’s performance to robust M&A activity, a record year for its capital markets business, and double-digit increases in both average fees and completed transactions. CEO Navid Mahmoodzadegan highlighted that the firm’s momentum was supported by elevated client activity and a growing pipeline, emphasizing recent advisory roles in notable M&A transactions such as Netflix’s acquisition of Warner Bros. and high-profile capital structure assignments. The firm’s strategic investments in talent and technology, as well as the maturation of new Managing Directors, were also cited as key contributors to revenue growth and operating leverage.

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 Q4 Earnings Call

• Devin Ryan (Citizens Bank) asked about the potential upside from increased sponsor activity. CEO Navid Mahmoodzadegan indicated there is “a fair amount to go” before sponsor volumes return to more normal levels, and Moelis is well-positioned for that recovery.
• James Yaro (Goldman Sachs) inquired about the outlook for large versus smaller M&A deals in 2026. Mahmoodzadegan noted that while large-cap deals are expected to continue, middle-market activity should also increase as financing costs normalize and private equity firms seek to monetize long-held assets.
• Brendan O'Brien (Wolfe Research) questioned how AI disruption could impact M&A and restructuring. Mahmoodzadegan said AI is accelerating strategic activity but could eventually drive liability management assignments among software firms if business models come under stress.
• Alexander Bond (KBW) asked about the expected cadence of revenue recognition in 2026. Mahmoodzadegan acknowledged Q1 may be seasonally weaker but emphasized a strong pipeline and constructive environment for transactions throughout the year.
• Ryan Kenny (Morgan Stanley) wanted to know how quickly new Managing Directors ramp up. Mahmoodzadegan explained that about one-third of MDs have been on the platform for less than three years, with the most productive years still ahead as they deepen client relationships.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) whether sponsor-led M&A and GP-led secondaries accelerate as expected, (2) how quickly the private capital advisory segment translates mandates into revenue, and (3) the impact of continued talent investments on sector coverage and deal execution. Broadening the transaction pipeline and maintaining operating leverage as the business scales will also be important signposts for Moelis’s sustained growth.

Moelis currently trades at $72.84, up from $70.89 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).

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