A global independent investment bank that advises corporations, governments, and financial sponsors on mergers, restructurings, and capital raising — without lending or trading, a conflict-free model that keeps its advice impartial. It was founded in 2007 by Ken Moelis, who named the firm for himself in the classic tradition of banking partnerships after leaving UBS. A fun detail: Moelis set out to recreate the close-knit, "familial" working culture he first felt at Drexel Burnham Lambert in 1981.
Moelis & Co Q2 2026 revenue rose 12% to $409.4M as higher average fees per deal drove operating income up 20%.
Moelis & Co's widened again as growth outpaced costs. Revenue rose 12% to $409.4 million, climbed 20% to $72.8 million, and the fell to 66% from 69% a year ago, all driven by higher average fees per completed transaction rather than a broader client base. The firm is earning more from each deal, but the number of clients it serves continues to shrink.
Key takeaways
rose 12% to $409.4 million, driven by higher average fees per completed transaction; the firm served fewer clients than a year ago, continuing a pattern of revenue concentration in larger deals.
rose 20% to $72.8 million, and the improved as the fell to 66% of from 69% in Q2 2025, reflecting revenue growth that outpaced headcount-driven cost increases.
Non-compensation expenses rose 28% to $67.2 million, driven by new office occupancy costs, deal-related travel, and professional fees tied to the public capital markets business.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 12% to $409.4M on higher average fees per deal; operating margin improved as compensation leverage declined.
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Revenues increased 12% to $409.4M in Q2 and 9% to $729.2M in H1, driven by higher average fees per completed transaction rather than client count growth.
Compensation expenses rose 7% in Q2 to $269.4M (66% of vs. 69% a year ago), with the ratio improving due to revenue growth outpacing headcount-driven cost increases.
rose 18% to $55.1 million, a slower pace than because the increased to 20% from 6% a year ago, as the shrank.
rose 8% to $215.9 million, and liquidity remained strong with $208.6 million in cash and equivalents plus $273.4 million in short-term investments, no debt drawn, and $226.2 million remaining under the authorization.
The Moelis entities were dismissed from the Atlas Crest-Archer SPAC merger class action in July 2025, though claims against the Atlas Crest directors, officers, and sponsor survive.
What changed
The 12% growth in Q2 2026 decelerated from the 30% growth in Q3 2025 and the 38% growth in Q2 2025, but accelerated from the 4% growth in Q1 2026, suggesting the Q1 slowdown was partly seasonal rather than the start of a sustained decline.
The fell to 66% from 69% a year ago, continuing the gradual decline toward the historical 60% range that earlier filings flagged to watch; the ratio has now improved from 69% in Q1 2025 to 66% in Q2 2026.
The number of fee-paying clients continued to shrink — the firm served fewer clients in Q1 2026 (136 vs. 151) and the Q2 2026 narrative confirms growth came from higher average fees, not client count growth, validating the concern raised in prior quarters about revenue concentration.
The Moelis entities were dismissed from the Atlas Crest-Archer SPAC class action on July 21, 2025, removing a legal overhang that had been flagged in every quarterly filing since Q1 2025.
What to watch
Whether the number of fee-paying clients stabilizes or continues to shrink, indicating whether the firm's base is broadening beyond a shrinking set of larger transactions.
Whether the continues to decline toward the historical 60% range in the second half of 2026, or whether 66% represents a durable floor as the lower Q1 incentive accrual is trued up.
The pace of share repurchases under the $226.2 million remaining authorization, given the $208.6 million cash balance and the ongoing $0.65 quarterly .
Whether the surviving claims in the Atlas Crest-Archer SPAC class action against the sponsor and directors result in a settlement or judgment that could have reputational or financial implications for the broader Moelis franchise.
Non-compensation expenses jumped 28% in Q2 to $67.2M, reflecting new office occupancy costs, deal-related travel, and professional fees tied to the public capital markets business.
H1 declined 3% to $97.4M despite higher , as the surged to 20% from 6% due to a smaller from equity compensation.
Liquidity remains strong with $208.6M in cash and equivalents plus $273.4M in short-term investments, zero debt drawn on $50M in credit facilities, and $226.2M remaining under the authorization.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative disclosures about market risk are set forth above in “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Market Risk and Credit Risk.”
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Quantitative and Qualitative disclosures about market risk are set forth above in “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Market Risk and Credit Risk.”
Company states no material pending proceedings, but discloses a SPAC merger class action where Moelis entities were recently dismissed.
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The company believes it is not party to any material pending proceedings that would have a significant adverse effect.
A consolidated class action in Delaware Chancery Court alleges breaches of fiduciary duty and unjust enrichment against Atlas Crest directors, officers, and sponsor related to the Archer merger.
Moelis & Company Group LP and Moelis & Company LLC were named as defendants for aiding and abetting and unjust enrichment.
On July 21, 2025, the court dismissed all claims against the Moelis entities, Archer, and the Archer co-founders.
Claims for breach of fiduciary duty and unjust enrichment survive against the Atlas Crest directors, officers, and sponsor, though narrowed in scope.
The company notes it often cannot estimate loss or range of loss for such matters, particularly when claims seek indeterminate damages.
There have been no material changes to the Risk Factors described in Part I "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC.
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There have been no material changes to the Risk Factors described in Part I "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC.