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Moelis & Company Reports Fourth Quarter and Full Year 2024 Financial Results; Increases Quarterly Dividend 8% to $0.65 Per Share

1. Moelis & Company reported Q4 2024 revenues of $438.7 million, up 104%. 2. Full year 2024 revenues increased by 40% to $1,194.5 million. 3. Net income reached $99.8 million for Q4, contrasting previous losses. 4. Quarterly dividend increased by 8% to $0.65 per share. 5. The firm remains positioned for growth with strong momentum into 2025.

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FAQ

Why Very Bullish?

The significant revenue and profit growth suggest strong operational performance, akin to past successful quarters.

How important is it?

The reported financial results demonstrate strong profitability, which is likely to attract investor interest.

Why Long Term?

Sustained growth indicators like increased income and dividends imply lasting financial health, reminiscent of prior upward trends.

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NYSE:MC
NEW YORK--(BUSINESS WIRE)--Moelis & Company (NYSE:MC) today reported financial results for the fourth quarter and full year ended December 31, 2024. The Firm's fourth quarter revenues were $438.7 million and represented an increase of 104% from the prior year period. The Firm reported fourth quarter GAAP net income of $99.8 million, or $1.15 per share (diluted). On an Adjusted basis, the Firm reported net income of $99.0 million and $1.18 per share (diluted) for the fourth quarter of 2024, as compared with a net loss of $4.8 million, or ($0.06) per share, in the prior year period. The Firm's full year 2024 GAAP revenues were $1,194.5 million. On an Adjusted basis, the Firm's full year 2024 revenues were $1,201.5 million and represented an increase of 40% from the prior year. The Firm reported full year 2024 GAAP net income of $151.5 million, or $1.78 per share (diluted). On an Adjusted basis, the Firm reported net income of $150.4 million, or $1.82 per share (diluted) for full year 2024, as compared with a net loss of $15.0 million, or ($0.20) per share (diluted), in the prior year. GAAP and Adjusted net income in full year 2024 include net tax benefits of approximately $0.16 per share (diluted) related to the settlement of share-based awards. "Our 2024 results reflect strong performance across our business, fueled by the strength of our integrated global team. We are encouraged by our momentum heading into 2025 and the Firm has never been better positioned to continue delivering for our clients and shareholders," said Ken Moelis, Chairman and Chief Executive Officer. The Firm’s revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time. Currently 92% of the operating partnership (Moelis & Company Group LP) is owned by the corporate partner (Moelis & Company) and is subject to corporate U.S. federal and state income tax. The remaining 8% is owned by other partners of Moelis & Company Group LP and is primarily subject to U.S. federal tax at the partner level (certain state, local and foreign income taxes are incurred at the company level). The Adjusted results included herein apply certain adjustments from our GAAP results, including the assumption that 100% of the Firm’s operating result was taxed at our corporate effective tax rate. We believe the Adjusted results, when presented together with comparable GAAP results, are useful to investors to compare our performance across periods and to better understand our operating results. A reconciliation between our GAAP results and our Adjusted results is presented in the Appendix to this press release. GAAP and Adjusted (non-GAAP) Selected Financial Data (Unaudited) GAAP Adjusted (non-GAAP)* Three Months Ended December 31, ($ in thousands except per share data) 2024 2023 Variance 2024 2023 Variance Revenues $ 438,719 $ 214,878 104 % $ 438,719 $ 214,878 104 % Income (loss) before income taxes 137,546 (4,204 ) N/M 137,806 (3,215 ) N/M Provision (benefit) for income taxes 37,701 2,260 1,568 % 38,836 1,608 2,315 % Net income (loss) 99,845 (6,464 ) N/M 98,970 (4,823 ) N/M Net income (loss) attributable to noncontrolling interests 10,446 (804 ) N/M — — N/M Net income (loss) attributable to Moelis & Company $ 89,399 $ (5,660 ) N/M $ 98,970 $ (4,823 ) N/M Diluted earnings (loss) per share $ 1.15 $ (0.08 ) N/M $ 1.18 $ (0.06 ) N/M N/M = not meaningful * See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) GAAP Adjusted (non-GAAP)* Year Ended December 31, ($ in thousands except per share data) 2024 2023 Variance 2024 2023 Variance Revenues $ 1,194,545 $ 854,748 40 % $ 1,201,520 $ 860,085 40 % Income (loss) before income taxes 196,012 (29,147 ) N/M 196,649 (17,233 ) N/M Provision (benefit) for income taxes 44,521 (1,631 ) N/M 46,247 (2,282 ) N/M Net income (loss) 151,491 (27,516 ) N/M 150,402 (14,951 ) N/M Net income (loss) attributable to noncontrolling interests 15,471 (2,816 ) N/M — — N/M Net income (loss) attributable to Moelis & Company $ 136,020 $ (24,700 ) N/M $ 150,402 $ (14,951 ) N/M Diluted earnings (loss) per share $ 1.78 $ (0.36 ) N/M $ 1.82 $ (0.20 ) N/M N/M = not meaningful * See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) Revenues We earned revenues of $438.7 million in the fourth quarter of 2024, as compared with $214.9 million in the prior year period, representing an increase of 104%. The increase in fourth quarter revenues is attributable to an increase in average fees earned per completed transaction across all products, with particular strength in M&A, as compared with the prior year period. For the year ended December 31, 2024, we earned GAAP revenues of $1,194.5 million, as compared with $854.7 million in the prior year. On an Adjusted basis, we earned revenues of $1,201.5 million in full year 2024, as compared with $860.1 million in the prior year, representing an increase of 40%. The increase in revenues in full year 2024 is attributable to an increase in transaction completions across all products. We continue to execute on our strategy of organic growth, and in early 2025 we promoted 12 advisory professionals to Managing Director and hired a Global Head of Private Funds Advisory who will join the Firm in the near term. As of the date of this release, we have 169 Managing Directors on our platform. Expenses The following tables set forth information relating to the Firm’s operating expenses. GAAP Adjusted (non-GAAP)* Three Months Ended December 31, ($ in thousands) 2024 2023 Variance 2024 2023 Variance Expenses: Compensation and benefits $ 257,145 $ 178,485 44 % $ 256,433 $ 175,636 46 % % of revenues 58.6 % 83.1 % 58.5 % 81.7 % Non-compensation expenses $ 50,063 $ 45,742 9 % $ 50,063 $ 44,593 12 % % of revenues 11.4 % 21.3 % 11.4 % 20.8 % Total operating expenses $ 307,208 $ 224,227 37 % $ 306,496 $ 220,229 39 % % of revenues 70.0 % 104.4 % 69.9 % 102.5 % * See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) GAAP Adjusted (non-GAAP)* Year Ended December 31, ($ in thousands) 2024 2023 Variance 2024 2023 Variance Expenses: Compensation and benefits $ 830,151 $ 714,749 16 % $ 829,045 $ 711,158 17 % % of revenues 69.5 % 83.6 % 69.0 % 82.7 % Non-compensation expenses $ 191,449 $ 180,351 6 % $ 191,449 $ 178,782 7 % % of revenues 16.0 % 21.1 % 15.9 % 20.8 % Total operating expenses $ 1,021,600 $ 895,100 14 % $ 1,020,494 $ 889,940 15 % % of revenues 85.5 % 104.7 % 84.9 % 103.5 % * See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)   Total operating expenses on a GAAP basis were $307.2 million for the fourth quarter of 2024 and $1,021.6 million for the year ended December 31, 2024. On an Adjusted basis, operating expenses were $306.5 million for the fourth quarter of 2024, as compared with $220.2 million in the prior year period, and $1,020.5 million for the full year, as compared with $889.9 million in the prior year. The increase in operating expenses in the fourth quarter and full year 2024 is primarily attributable to increased compensation and benefits expenses as compared with the prior year periods. Compensation and benefits expenses on a GAAP basis were $257.1 million for the fourth quarter of 2024 and $830.2 million for the year ended December 31, 2024. On an Adjusted basis, compensation and benefits expenses were $256.4 million for the fourth quarter of 2024, as compared with $175.6 million in the prior year period, and $829.0 million for the full year, as compared with $711.2 million in the prior year. The increase in Adjusted compensation and benefits expenses in the fourth quarter and full year 2024 is attributable to a higher bonus expense accrual, as a result of higher revenues earned, as compared with the prior year periods. Non-compensation expenses on a GAAP basis were $50.1 million for the fourth quarter of 2024 and $191.4 million for the year ended December 31, 2024. On an Adjusted basis, non-compensation expenses for the fourth quarter of 2024 were $50.1 million, as compared with $44.6 million in the prior year period. The increase in non-compensation expenses during the fourth quarter of 2024 is primarily attributable to increased deal-related travel and entertainment expenses. For full year 2024, Adjusted non-compensation expenses were $191.4 million, as compared with $178.8 million in the prior year. The increase in Adjusted non-compensation expenses for full year 2024 is broad-based and related to the expansion of our business during the year. Other Income (Expenses) GAAP Adjusted (non-GAAP)* Three Months Ended December 31, ($ in thousands) 2024 2023 Variance 2024 2023 Variance Other income (expenses) $ 6,035 $ 5,145 17 % $ 5,583 $ 2,136 161 % N/M = not meaningful * See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) GAAP Adjusted (non-GAAP)* Year Ended December 31, ($ in thousands) 2024 2023 Variance 2024 2023 Variance Other income (expenses) $ 23,067 $ 11,205 106 % $ 15,623 $ 12,622 24 % N/M = not meaningful * See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)   Other income (expenses) on a GAAP basis was income of $6.0 million for the fourth quarter of 2024 and $23.1 million for the year ended December 31, 2024. On an Adjusted basis, other income was $5.6 million for the fourth quarter of 2024, as compared with $2.1 million in the prior year period, and $15.6 million for the full year, as compared with $12.6 million in the prior year. For full year 2024, we recorded a gain of $7.0 million related to the sale of 5.0 million shares of our investment in MA Financial Group Limited during the third quarter of 2024. The gain of $7.0 million is included within Adjusted revenues and the adjustment did not impact our GAAP or Adjusted earnings per share. Provision for Income Taxes The corporate partner (Moelis & Company) currently owns 92% of the operating partnership (Moelis & Company Group LP) and is subject to corporate U.S. federal and state income tax on its allocable share of earnings. The remaining 8% of activity is subject to certain state, local and foreign income taxes (including New York City Unincorporated Business Tax), which is accounted for at the partner level through the noncontrolling interests. For Adjusted purposes, we have assumed that 100% of the Firm’s fourth quarter and full year 2024 operating results were taxed at our corporate effective tax rate. Together with the excess tax benefit related to the delivery of equity-based compensation of $0.4 million and $13.0 million for the fourth quarter and full year, respectively, and the impact of certain non-deductible expenses incurred in the ordinary course of business, our net tax expense was $38.8 million for the fourth quarter and $46.2 million for the full year. Capital Management and Balance Sheet Moelis & Company continues to maintain a strong financial position, and as of December 31, 2024, we held cash and liquid investments of $560.4 million and had no debt or goodwill on our balance sheet. The Board of Directors of Moelis & Company declared a regular quarterly dividend of $0.65 per share, representing an increase of 8% from the prior quarter. The $0.65 per share will be paid on March 27, 2025 to common stockholders of record on February 18, 2025. Earnings Call We will host a conference call beginning at 5:00pm ET on Wednesday, February 5, 2025, accessible via telephone and the internet. Ken Moelis, Chairman and Chief Executive Officer, and Joe Simon, Chief Financial Officer, will review our fourth quarter and full year 2024 financial results. Following the review, there will be a question and answer session. Investors and analysts may participate in the live conference call by dialing 1-888-300-4150 (domestic) or 1-646-970-1530 (international) and using access code 8014191. Please dial in 15 minutes before the conference call begins. The conference call will also be accessible as a listen-only audio webcast through the Investor Relations section of the Moelis & Company website at www.moelis.com. For those unable to listen to the live broadcast, a replay of the call will be available for one month via telephone starting approximately one hour after the live call ends. The replay can be accessed at 1-800-770-2030 (domestic) or 1-609-800-9909 (international); the conference number is 8014191. About Moelis & Company Moelis & Company is a leading global independent investment bank that provides innovative strategic advice and solutions to a diverse client base, including corporations, governments and financial sponsors. The Firm assists its clients in achieving their strategic goals by offering comprehensive integrated financial advisory services across all major industry sectors. Moelis & Company’s experienced professionals advise clients on their most critical decisions, including mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, private fund raisings and secondary transactions and other corporate finance matters. The Firm serves its clients from 23 locations in North and South America, Europe, the Middle East, Asia and Australia. For further information, please visit: www.moelis.com. Forward-Looking Statements This press release contains forward-looking statements, which reflect the Firm’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “target,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are based on certain assumptions and estimates and subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under "Risk Factors" discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, subsequent reports filed on Form 10-Q and our other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results. The Firm undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Non-GAAP Financial Measures The Company prepares its consolidated financial statements using accounting principles generally accepted in the United States (GAAP). From time to time, the Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. Adjusted results are a non-GAAP financial measure which provide additional information on management’s view of operating results. These measures are not in accordance with, or a substitute for GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure. The Company’s Adjusted revenues includes amounts reflected within other income (expenses) which are considered the equivalent of revenues for compensation. Such adjustments may include gains on founder investments where our employees and the Moelis advisory platform contributed meaningfully to the value creation; or the mark-to-market impact of equity instruments held by the Company that were originally received as payment for our banking services and included in revenues. We believe these adjustments are useful to allow comparability of period-to-period operating performance and compensation levels. The Company’s Adjusted compensation and benefits expenses may include adjustments reflected within other income (expenses) associated with compensation awards forfeited or returned to the Company by former employees. Management views the credits associated with such forfeitures as an offset to compensation and benefits expenses since the Firm will utilize the forfeited economics to recruit and or retain talent. We believe the netted presentation of forfeiture credits and compensation expenses is useful to allow comparability of period-to-period operating performance. The Company’s Adjusted non-compensation expenses and other income (expenses) may exclude certain one-time items that reduce the comparability of our operating performance as well as the amounts related to revenues and compensation and benefits expenses discussed above and adjustments to our provision for income taxes discussed below. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers. The Company’s Adjusted provision (benefit) for income taxes is adjusted to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rates for the periods presented. Adjusted provision (benefit) for income taxes periodically includes the tax impact related to the settlement of share-based awards, the reclassification of TRA liability adjustments, or adjustments to our deferred tax assets and liabilities that occur in connection with new tax legislation. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers. The Company’s Adjusted basic and diluted shares of Class A common stock outstanding is presented for each period as if all outstanding Class A partnership units have been exchanged into Class A common stock. The Adjusted presentation helps analysts, investors, and other stakeholders understand the effect of the Firm’s ownership structure on its results, including the impact of all the Firm’s income becoming subject to corporate-level tax. Appendix GAAP Consolidated Statement of Operations (Unaudited) Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information (Unaudited) Moelis & Company GAAP Consolidated Statement of Operations Unaudited (dollars in thousands, except for share and per share data)   Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenues $ 438,719 $ 214,878 $ 1,194,545 $ 854,748 Expenses Compensation and benefits 257,145 178,485 830,151 714,749 Occupancy 8,337 8,721 29,908 28,608 Professional fees 6,485 7,418 27,056 32,796 Communication, technology and information services 13,465 12,220 50,573 45,978 Travel and related expenses 10,799 8,430 40,054 37,005 Depreciation and amortization 2,833 2,294 10,444 8,317 Other expenses 8,144 6,659 33,414 27,647 Total Expenses 307,208 224,227 1,021,600 895,100 Operating income (loss) 131,511 (9,349) 172,945 (40,352) Other income (expenses) 6,035 5,145 23,067 11,205 Income (loss) before income taxes 137,546 (4,204) 196,012 (29,147) Provision (benefit) for income taxes 37,701 2,260 44,521 (1,631) Net income (loss) 99,845 (6,464) 151,491 (27,516) Net income (loss) attributable to noncontrolling interests 10,446 (804) 15,471 (2,816) Net income (loss) attributable to Moelis & Company $ 89,399 $ (5,660) $ 136,020 $ (24,700) Weighted-average shares of Class A common stock outstanding Basic 72,467,399 68,880,740 71,876,838 68,501,018 Diluted 77,734,437 68,880,740 76,611,948 68,501,018 Net income (loss) attributable to holders of shares of Class A common stock per share Basic $ 1.23 $ (0.08) $ 1.89 $ (0.36) Diluted $ 1.15 $ (0.08) $ 1.78 $ (0.36) Moelis & Company Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data)   Three Months Ended December 31, 2024 Adjusted items GAAP Adjustments Adjusted (non-GAAP) Revenues $ 438,719 $ — $ 438,719 Compensation and benefits 257,145 (712 ) (a) 256,433 Other income (expenses) 6,035 (452 ) (a)(b) 5,583 Income (loss) before income taxes 137,546 260 137,806 Provision (benefit) for income taxes 37,701 1,135 (b)(c) 38,836 Net income (loss) 99,845 (875 ) 98,970 Net income (loss) attributable to noncontrolling interests 10,446 (10,446 ) (d) — Net income (loss) attributable to Moelis & Company $ 89,399 $ 9,571 $ 98,970 Weighted-average shares of Class A common stock outstanding Basic 72,467,399 6,096,785 (d) 78,564,184 Diluted 77,734,437 6,096,785 (d) 83,831,222 Net income (loss) attributable to holders of shares of Class A common stock per share Basic $ 1.23 $ 1.26 Diluted $ 1.15 $ 1.18 (a) Reflects a reclassification of $0.7 million of other income (expenses) to compensation and benefits associated with the forfeiture or return of compensation by former employees. (b) Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.3 million is reclassified to the provision for income taxes line. (c) An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated, together with the tax benefit related to the settlement of share-based awards of $0.4 million, we have a net tax expense of $38.8 million. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in Group LP assets and TRA liabilities in connection with past partnership unit exchanges; such adjustment for this period was a net expense of $0.3 million, which is not included in the corporate tax provision for the period presented. (d) Assumes all outstanding Class A partnership units have been exchanged into Class A common stock. Moelis & Company Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data)   Three Months Ended December 31, 2023 Adjusted items GAAP Adjustments Adjusted (non-GAAP) Revenues $ 214,878 $ — $ 214,878 Compensation and benefits 178,485 (2,849 ) (a) 175,636 Non-compensation expenses 45,742 (1,149 ) (b) 44,593 Other income (expenses) 5,145 (3,009 ) (a)(b)(c) 2,136 Income (loss) before income taxes (4,204 ) 989 (3,215 ) Provision (benefit) for income taxes 2,260 (652 ) (c)(d) 1,608 Net income (loss) (6,464 ) 1,641 (4,823 ) Net income (loss) attributable to noncontrolling interests (804 ) 804 (e) — Net income (loss) attributable to Moelis & Company $ (5,660 ) $ 837 $ (4,823 ) Weighted-average shares of Class A common stock outstanding Basic 68,880,740 6,286,001 (e) 75,166,741 Diluted 68,880,740 6,286,001 (e) 75,166,741 Net income (loss) attributable to holders of shares of Class A common stock per share Basic $ (0.08 ) $ (0.06 ) Diluted $ (0.08 ) $ (0.06 ) (a) Reflects a reclassification of $2.8 million of other income to compensation and benefits expense associated with the enforcement of non-compete provisions. (b) Reflects adjustments of $1.7 million related to asset impairments associated with the Company's exit from a duplicate U.S. office location. (c) Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.7 million is reclassified to the provision for income taxes line. (d) An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in Group LP assets and TRA liabilities in connection with past partnership unit exchanges; such adjustment for this period was a net expense of $0.1 million, which is not included in the corporate tax provision for the period presented. (e) Assumes all outstanding Class A partnership units have been exchanged into Class A common stock. Moelis & Company Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data)   Year Ended December 31, 2024 Adjusted items GAAP Adjustments Adjusted (non-GAAP) Revenues $ 1,194,545 $ 6,975 (a) $ 1,201,520 Compensation and benefits 830,151 (1,106) (b) 829,045 Other income (expenses) 23,067 (7,444) (a)(b)(c) 15,623 Income (loss) before income taxes 196,012 637 196,649 Provision (benefit) for income taxes 44,521 1,726 (c)(d) 46,247 Net income (loss) 151,491 (1,089) 150,402 Net income (loss) attributable to noncontrolling interests 15,471 (15,471) (e) — Net income (loss) attributable to Moelis & Company $ 136,020 $ 14,382 $ 150,402 Weighted-average shares of Class A common stock outstanding Basic 71,876,838 6,098,730 (e) 77,975,568 Diluted 76,611,948 6,098,730 (e) 82,710,678 Net income (loss) attributable to holders of shares of Class A common stock per share Basic $ 1.89 $ 1.93 Diluted $ 1.78 $ 1.82 (a) Reflects a reclassification of $7.0 million of other income to revenues related to a gain associated with the Firm's sale of 5.0 million shares of MA Financial Group Limited. (b) Reflects a reclassification of $1.1 million of other income (expenses) to compensation and benefits associated with the forfeiture or return of compensation by former employees. (c) Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.6 million is reclassified to the provision for income taxes line. (d) An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated, together with the tax benefit related to the settlement of share-based awards of $13.0 million, we have a net tax expense of $46.2 million. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in Group LP assets and TRA liabilities in connection with past partnership unit exchanges; such adjustment for this period was a net expense of $0.6 million, which is not included in the corporate tax provision for the period presented. (e) Assumes all outstanding Class A partnership units have been exchanged into Class A common stock. Moelis & Company Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data)   Year Ended December 31, 2023 Adjusted items GAAP Adjustments Adjusted (non-GAAP) Revenues $ 854,748 $ 5,337 (a) $ 860,085 Compensation and benefits 714,749 (3,591 ) (b) 711,158 Non-compensation expenses 180,351 (1,569 ) (c)(d) 178,782 Other income (expenses) 11,205 1,417 (a)(b)(c)(d)(e) 12,622 Income (loss) before income taxes (29,147 ) 11,914 (17,233 ) Provision (benefit) for income taxes (1,631 ) (651 ) (e)(f) (2,282 ) Net income (loss) (27,516 ) 12,565 (14,951 ) Net income (loss) attributable to noncontrolling interests (2,816 ) 2,816 (g) — Net income (loss) attributable to Moelis & Company $ (24,700 ) $ 9,749 $ (14,951 ) Weighted-average shares of Class A common stock outstanding Basic 68,501,018 6,238,470 (g) 74,739,488 Diluted 68,501,018 6,238,470 (g) 74,739,488 Net income (loss) attributable to holders of shares of Class A common stock per share Basic $ (0.36 ) $ (0.20 ) Diluted $ (0.36 ) $ (0.20 ) (a) Reflects a reclassification of $5.3 million of other income to revenues related to shares received as partial payment for advisory services provided on certain transactions. (b) Reflects a reclassification of $3.6 million of other income to compensation and benefits expense associated with the enforcement of non-compete provisions. (c) Reflects adjustments of $10.4 million for expenses resulting from a regulatory settlement with the SEC relating to recordkeeping of business communications on messaging applications. (d) Reflects adjustments of $1.7 million related to asset impairments associated with the Company's exit from a duplicate U.S. office location. (e) Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.2 million is reclassified to the provision for income taxes line. (f) An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated, together with the tax benefit related to the settlement of share-based awards of $3.9 million, we have a net tax benefit of $2.3 million. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in Group LP assets and TRA liabilities in connection with the past partnership unit exchanges; such adjustment for this period was a net expense of $0.6 million, which is not included in the corporate tax provision for the period presented. (g) Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

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