MC

Moelis is a pure-play M&A and restructuring advisory boutique whose results swing with the deal cycle, and FY2025 shows a strong upswing: net income grew 71.4% to $260M and operating income rose 58.4% to $274M. The capital-light advisory model produces an outstanding 45.7% return on equity and converts profits efficiently to cash — operating cash flow was $576M (+34.8%) against just $36.3M of capex. The trajectory is a clear recovery from the FY2023 loss (-$27.5M) as M&A activity rebounds, and the firm kept investing in its franchise, hiring 9 new managing directors in 2025.

The balance sheet is clean and cash-rich: $509M cash, $568M equity (+28.7%), and modest 1.87x liabilities/equity (the negative retained earnings is an artifact of the partnership/distribution structure, not distress). Capital return is generous — $184M of dividends — reflecting the asset-light model's ability to pay out most of its earnings.