FactSet (FDS) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 GAAP revenues rose 4.5% year-over-year to $570.7M, with organic revenues up 4.0% to $568M, driven by wealth, PE/VC, and hedge funds, while asset management and banking faced headwinds.

• Organic ASV grew 4.1% year-over-year to $2,276.2M, with buy-side clients accounting for over 82% of organic ASV; client retention was 91% and ASV retention exceeded 95%.

• Adjusted operating margin was 37.3% (down 100 bps YoY), and adjusted diluted EPS rose 1.4% to $4.28; GAAP diluted EPS increased 3% to $3.76.

• Free cash flow for Q2 was $150.2M, up 23.3% year-over-year, reflecting higher net cash from operating activities.

• Recent acquisitions (Irwin, LiquidityBook, LogoIntern) and product innovation, especially in GenAI and workflow solutions, are expanding addressable markets and driving positive client feedback.

Financial highlights

• Q2 net income was $144.9M (+2.8% YoY); adjusted net income was $165M (+1.2% YoY).

• EBITDA for Q2 was $224.6M (+3.6% YoY); adjusted EBITDA margin was 39.4%.

• Q2 GAAP operating margin was 32.5% (down 80 bps YoY); adjusted operating margin was 37.3% (down 100 bps YoY).

• Free cash flow for Q2 was $150.2M, up from $121.9M in Q2 2024.

• $392M returned to shareholders over the last 12 months via dividends and share repurchases.

Outlook and guidance

• Fiscal 2025 organic ASV growth guidance midpoint reaffirmed at 5%, with a narrowed range of $100M-$130M (4.4%-5.8%).

• Revenue guidance raised to $2.305B-$2.325B, factoring in recent acquisitions.

• Adjusted operating margin guidance maintained at 36%-37%; adjusted EPS at $16.80-$17.40.

• GAAP operating margin expected at 32%-33% and GAAP EPS at $14.80-$15.40, reflecting acquisition-related expenses.

• Higher expenses anticipated in H2 for GenAI and infrastructure projects, but cost discipline expected to absorb acquisition dilution.