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Jun 30
Morningstar Q2 2025 Earnings Report
Morningstar reported solid Q2 2025 results with revenue and earnings growth led by PitchBook, Morningstar Direct Platform, and Morningstar Credit.
Key Takeaways
Morningstar delivered revenue of $605.1 million and net income of $89.0 million in Q2 2025, with strong contributions from key platforms and improved operating income and margins.
Revenue rose 5.8% to $605.1 million, driven by PitchBook, Morningstar Direct, and Morningstar Credit.
Net income grew to $89.0 million with EPS at $2.09 and adjusted EPS at $2.40.
Operating income increased to $125.1 million, with adjusted operating income at $143.4 million.
Free cash flow declined 48.3% to $62.4 million, mainly due to higher tax payments.
Morningstar
Morningstar
Morningstar Revenue by Segment
Revenue by Segment
Morningstar Direct Revenue
CapyFin.comPitchBook Revenue
CapyFin.comMorningstar Credit Revenue
CapyFin.comMorningstar Wealth Revenue
CapyFin.comMorningstar Retirement Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
Morningstar remains focused on expanding data capabilities, streamlining its ratings business, and navigating macroeconomic and regulatory headwinds.
Positive Outlook
- Enhanced Morningstar Direct Advisory Suite with data on 1,000 private funds.
- Expanded CLO holdings and trade data in PitchBook.
- Growth in Model Portfolios and investment management AUMA.
- Strong margin expansion in PitchBook and Direct segments.
- Progress on transitioning Sustainalytics to a licensing model.
Challenges Ahead
- Free cash flow declined sharply due to higher tax payments.
- Morningstar Retirement revenue declined 2.7% YoY.
- Ongoing softness in corporate clients using PitchBook.
- Increased compensation and facilities-related costs impacting expenses.
- Sustainalytics revenue continues to be pressured amid vendor consolidation.