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Mar 31, 2025
MSCI Q1 2025 Earnings Report
MSCI reported solid financial performance in Q1 2025, driven by recurring subscription and asset-based fee growth.
Key Takeaways
MSCI delivered strong earnings in Q1 2025 with increased revenue and profitability, supported by solid retention and growth across all product segments.
Total revenue rose to $745,826,000, primarily driven by growth in asset-based fees and recurring subscriptions.
Net income increased to $288,600,000, reflecting a 12.8% year-over-year improvement.
Retention rate climbed to 95.3%, showing strong client loyalty and recurring sales strength.
Free cash flow slightly declined to $268,876,000 despite higher operating cash flow.
Revenue by Segment
Forward Guidance
MSCI provided full-year 2025 guidance reflecting confidence in recurring revenue growth and operational efficiency despite macroeconomic uncertainties.
Positive Outlook
- Operating expense guidance set at $1.405B to $1.445B.
- Adjusted EBITDA expected between $1.22B to $1.25B.
- Free cash flow forecasted between $1.4B to $1.46B.
- Effective tax rate projected between 17.5% to 20.0%.
- Capital expenditures guided between $115M to $125M.
Challenges Ahead
- Potential variability in interest expenses due to SOFR-linked debt.
- Macro uncertainties could impact asset-based fee income.
- Forecast includes increased compensation and IT costs.
- Free cash flow guidance is slightly down from last year’s trend.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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