Morningstar (MORN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 5.8% year-over-year to $605.1 million, led by PitchBook, Morningstar Direct Platform, and Morningstar Credit, with organic revenue up 5.9%.

• Adjusted operating income increased 9.5% to $143.4 million, and adjusted operating margin reached 23.7%.

• Operating income rose 15.3% to $125.1 million, with operating margin at 20.7%.

• Free cash flow declined 48.3% to $62.4 million, mainly due to higher bonus and income tax payments.

• 398,442 shares repurchased for $112.0 million in Q2; $221.6 million year-to-date.

Financial highlights

• License-based revenue grew 6.6% in Q2, led by PitchBook and Morningstar Direct Platform.

• Asset-based revenue declined 2.7% in Q2, but increased 4.0% in the first half.

• Transaction-based revenue increased 10.3% in Q2, driven by Morningstar Credit.

• International revenue grew 7.4% in Q2, now 29% of total revenue.

• Net income for Q2 was $89.0 million, with diluted EPS up 30.6% to $2.09.

Outlook and guidance

• Management expects continued investment in product development and technology, with capital expenditures to remain elevated for the rest of 2025.

• Available cash, investments, and credit facility are expected to be sufficient for operating and growth needs over the next 12 months.

• Focus remains on delivering investor insights and expanding data coverage, especially in private and semiliquid funds.

• Forward-looking statements caution about potential variances in future results due to known and unknown risks.