Moelis & Company’s third quarter was marked by robust year-on-year revenue growth in its mergers and acquisitions (M&A) and capital structure advisory businesses, but the market reacted negatively as sales missed Wall Street expectations. Management attributed the revenue growth to increased activity in strategic M&A and complex capital structure assignments, with CEO Navid Mahmoodzadegan citing “substantial growth in our M&A business and strong performance in capital structure advisory.” However, ongoing volatility in capital markets and a mixed performance in the capital markets segment weighed on the overall results.
Is now the time to buy MC? Find out in our full research report (it’s free for active Edge members).
Moelis (MC) Q3 2026 highlights:
- Revenue $425.6 million vs S&P analyst consensus of $434.4 million (13.2% year-on-year growth, 2% miss)
- Adjusted EPS $0.75 vs S&P analyst consensus of $0.72 (3.7% beat)
- Operating margin 19.2%, up from 12.9% in the same quarter last year
- Market capitalization $4.22 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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
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Devin Ryan (Citizens JMP) asked about the pace of pipeline conversion amid market volatility and sector-specific ripples. CEO Navid Mahmoodzadegan explained that conversion rates vary by business line, with announced deals typically closing unless regulatory issues arise, but acknowledged that volatility can extend timelines for capital markets transactions.
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Devin Ryan (Citizens JMP) followed up on private capital advisory’s impact. Mahmoodzadegan described the PCA platform as still early-stage but increasingly important, noting cross-pollination with M&A mandates and the expectation for greater revenue contribution as the business matures.
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James Yaro (Goldman Sachs) questioned the handoff between liability management and traditional restructuring. Mahmoodzadegan emphasized that these mandates are handled collaboratively by the same CSA team, allowing for seamless transitions as client needs shift.
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Steven Chubak (Wolfe Research) inquired about the sustainability of AI-related technology investment and prospects for bending the cost curve. CFO Christopher Callesano said technology expenses will likely grow, but efficiency improvements and token-based AI consumption could eventually offset some of the increase.
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Nathan Stein (Deutsche Bank) asked about the potential impact of a slowdown in AI-related capital expenditure and data center buildout. Mahmoodzadegan noted that while this could affect financing and M&A activity in AI, it may also redirect capital to other vibrant sectors, balancing business risk.
Catalysts in upcoming quarters
Looking forward, the StockStory team will be monitoring (1) the pace at which Moelis converts its record transaction pipeline into revenue, (2) the impact of cost management efforts as AI and talent investments continue, and (3) the resilience of sponsor M&A and restructuring activity amid sector rotation and macroeconomic volatility. The ongoing development of the private capital advisory platform and changes in AI infrastructure financing will also be key areas to watch.
Moelis currently trades at $55.58, down from $58.38 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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