Loading...
•
Jun 30
MSCI Q2 2025 Earnings Report
MSCI reported strong financial results for the second quarter of 2025, with significant growth in operating revenues, diluted EPS, and adjusted EPS, driven by higher recurring subscription revenues and asset-based fees.
Key Takeaways
MSCI delivered a robust second quarter in 2025, with operating revenues increasing by 9.1% to $772.7 million and diluted EPS rising by 16.3% to $3.92. The company's performance was bolstered by a 7.9% increase in recurring subscription revenues and a 12.7% rise in asset-based fees, reflecting strong demand for its critical decision support tools and services across various client segments.
Operating revenues grew 9.1% to $772.7 million, with organic operating revenue growth of 8.3%.
Diluted EPS increased by 16.3% to $3.92, and Adjusted EPS rose by 14.6% to $4.17.
Recurring subscription revenues were up 7.9%, and asset-based fees increased by 12.7%, contributing significantly to overall revenue growth.
The company maintained a strong Retention Rate of 94.4% and saw a 10.7% increase in total Run Rate to $3,106.7 million.
MSCI
MSCI
MSCI Revenue by Segment
Revenue by Segment
Index Revenue
CapyFin.comAnalytics Revenue
CapyFin.comSustainability and Climate Revenue
CapyFin.comAll Other - Private Assets Revenue
CapyFin.com Forward Guidance
MSCI provided full-year 2025 guidance, anticipating continued strong financial performance with projected ranges for operating expenses, adjusted EBITDA expenses, interest expense, depreciation & amortization, effective tax rate, capital expenditures, net cash provided by operating activities, and free cash flow.
Positive Outlook
- Projected net cash provided by operating activities between $1,525 million and $1,575 million.
- Anticipated free cash flow between $1,400 million and $1,460 million.
- Effective tax rate expected to be favorable, ranging from 17.5% to 20.0%.
- Adjusted EBITDA expenses are expected to be managed within a range of $1,220 million to $1,250 million.
- Capital expenditures are projected to be between $115 million and $125 million, indicating continued investment in the business.
Challenges Ahead
- Operating expenses are projected to be between $1,405 million and $1,445 million, indicating continued cost pressures.
- Interest expense is expected to be between $182 million and $186 million, reflecting ongoing debt servicing costs.
- Depreciation & Amortization Expense is projected to be between $185 million and $195 million.
- Guidance is based on assumptions about macroeconomic factors and capital markets, which are subject to uncertainty.
- Actual results could differ materially from current guidance due to various risks and uncertainties.