Moelis (MC) Down 18.8% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Moelis (MC). Shares have lost about 18.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Moelis due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Moelis & Company's Q4 Earnings Beat as Revenues Rise Y/Y

Moelis & Company’s fourth-quarter 2025 adjusted earnings of $1.13 per share hugely surpassed the Zacks Consensus Estimate of 76 cents. However, the bottom line declined 4% from the prior-year quarter.

Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses was a headwind.

Net income (GAAP basis) was $87.9 million compared with $89.4 million in the prior-year quarter.

For 2025, adjusted earnings of $2.99 per share surpassed the Zacks Consensus Estimate of $2.61. Also, the bottom line increased 64% from the previous year. Net income (GAAP basis) was $233 million compared with $136 million in 2024.

Revenues Improve, Expenses Rise

Total revenues (GAAP basis) in the quarter grew 11% year over year to $487.9 million. The Zacks Consensus Estimate for revenues was $428.6 million.

Full-year total revenues (GAAP basis) grew 27% year over year to $1.52 billion. The Zacks Consensus Estimate for revenues was $1.48 billion.

Total quarterly operating expenses (GAAP basis) were $359.9 million, which jumped 17% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimate for total operating expenses was $346.3 million.

Other income (GAAP basis) was $10 million in the reported quarter, up 65% from the prior-year quarter. We projected the metric to be $7.9 million.

As of Dec. 31, 2025, the company had cash and liquid investments of $848.8 million, with no debt or goodwill.

Share Repurchase Update

In the reported quarter, the company repurchased 0.7 million shares at an average price of $62.96 per share.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

VGM Scores

Currently, Moelis has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Moelis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Moelis & Company (MC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research