Moelis Expects Non-Compensation Expenses to Rise 19% in 2026

Moelis & Company expects non-compensation expenses to grow about 19% in 2026 from the prior year. The firm said its new business origination and announced pipeline were each up about 20% year over year, with total pipeline at a record high.

Third-quarter revenue rose 13% to $426 million. Mergers and acquisitions and capital structure advisory drove the increase, partly offset by lower capital markets revenue.

Capital markets revenue softened after a record first half, as volatility affected transaction timing. Moelis described conversion of its announced pipeline as very high, while saying capital markets activity depends more on market conditions. The company expects some compensation leverage by year-end.