Thu, Apr 24, 10:01 AM (29 days ago)
**Moelis & Company (MC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $306.6 million, up 41% from $217.5 million in Q1 2024. - **Net Income:** $53.78 million, a 208% increase from $17.49 million in Q1 2024. - **Operating Income:** $36.91 million, a 536% increase from $5.80 million in Q1 2024. - **Earnings per Share (EPS):** $0.68 basic and $0.64 diluted, compared to $0.24 basic and $0.22 diluted in Q1 2024. **Profit Margins:** - **Operating Margin:** 12% (up from 3% in Q1 2024). - **Net Margin:** 17.5% (up from 8% in Q1 2024). **Cash Flow:** - **Operating Cash Flow:** -$165.48 million (outflow due to discretionary bonuses and client collections). - **Investing Cash Flow:** -$6.98 million (outflow due to investment purchases). - **Financing Cash Flow:** -$56.73 million (outflow due to dividends, tax distributions, and treasury stock purchases). - **Ending Cash Position:** $185.38 million (down from $413.18 million at the end of 2024). **Key Metrics and Trends:** - **Revenue Growth:** Driven by increased average fees per completed transaction. - **Expense Management:** Operating expenses were 88% of revenues, down from 97% in Q1 2024. - **Compensation and Benefits:** 69% of revenues, down from 76% in Q1 2024. - **Non-Compensation Expenses:** 19% of revenues, down from 22% in Q1 2024. - **Deferred Revenue:** $8.21 million, up from $5.59 million in Q1 2024. **Uncertainties and Future Operations:** - **Market Volatility:** Recent tariff policy announcements have introduced volatility, potentially delaying transaction revenues. - **M&A Market:** Encouraging new business origination and deal pipeline growth, but volatility may impact timing. - **Capital Structure:** Strong balance sheet with substantial liquidity and zero debt. - **Legal Proceedings:** Ongoing lawsuits, but management believes they are not material. **Segment Performance:** - **Geographical Revenue:** U.S. ($252.65 million), Europe ($33.53 million), Rest of World ($20.42 million). - **Geographical Assets:** U.S. ($1.01 billion), Europe ($55.10 million), Rest of World ($143.48 million). **Dividends and Share Repurchases:** - **Dividend:** $0.65 per share, payable on June 20, 2025. - **Share Repurchases:** 156,105 shares repurchased in Q1 2025, with $62.5 million remaining under the program. **Regulatory and Commitments:** - **Bank Lines of Credit:** $50 million aggregate base credit commitments. - **Leases:** Operating leases for corporate offices and an aircraft, with some extending through 2036. **Risk Factors:** - **Economic Conditions:** Global financial conditions can materially affect operational and financial performance. - **Client Dependence:** High dependence on a few clients for a significant portion of revenues. - **Regulatory Risks:** Subject to various securities and capital adequacy requirements.