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Mar 31

Morningstar Q1 2025 Earnings Report

Morningstar reported solid top-line and bottom-line growth, driven by strong performances from PitchBook and Morningstar Credit.

Key Takeaways

The company delivered a strong Q1 2025 with increased revenue, net income, and adjusted EPS. PitchBook and Morningstar Credit fueled growth, supported by recent acquisitions.

Revenue grew 7.2% YoY to $581.9M, with organic growth at 9.1%

Net income rose to $78.5M with adjusted EPS increasing to $2.23

Strong performance in PitchBook and Morningstar Credit segments

Increased share repurchases and continued investment in strategic acquisitions

Total Revenue
$582M
Previous year: $543M
+7.2%
EPS
$2.23
Previous year: $1.73
+28.9%
Assets Under Mgmt & Adv.
$341B
Assets Linked to Indexes
$258B
Cash and Equivalents
$512M
Previous year: $354M
+44.6%
Free Cash Flow
$58.8M
Previous year: $59.5M
-1.2%
Total Assets
$3.59B
Previous year: $3.39B
+5.8%

Morningstar

Morningstar

Morningstar Revenue by Segment

Forward Guidance

The company remains cautiously optimistic amid market volatility and plans to continue supporting high-growth areas like PitchBook and private credit.

Positive Outlook

  • Continued revenue growth driven by PitchBook and Morningstar Credit
  • Strategic acquisitions expanding private credit and structured finance
  • Improved adjusted operating margins
  • Higher adjusted EPS performance
  • Strong client growth in key segments

Challenges Ahead

  • Caution due to market volatility and economic uncertainty
  • Decreased cash flow from operations YoY
  • Decline in Morningstar Direct Platform margin due to higher costs
  • Softness in research distribution and Direct Web Services
  • Increased debt and higher compensation expenses