Morningstar (MORN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 8.5% year-over-year to $641.1 million, with organic revenue up 8.1%.

• Adjusted operating income rose 26.1% to $153.5 million, while full-year adjusted operating income increased 18.0%.

• Full-year 2025 revenue reached $2,445.5 million, up 7.5% reported and 8.0% organic.

• Leveraged AI to scale research and data, launched new index suite for private markets, and integrated with large language models.

• Major revenue contributors included Morningstar Credit, Direct Platform, and PitchBook.

Financial highlights

• Q4 2025 operating margin was 24.9%, with adjusted operating margin at 23.9%, up 3.3pp year-over-year.

• Q4 2025 share repurchases totaled $395.3 million; full-year repurchases were $787.0 million.

• Q4 2025 capital expenditures were $42.7 million; full-year capex was $147.1 million.

• Q4 diluted EPS increased 4.4% to $2.83; adjusted diluted EPS up 26.6% to $2.71.

• Cash from operations for the year was $589.7 million; free cash flow $442.6 million.

Outlook and guidance

• Management highlighted ongoing cost discipline, targeted reorganizations, and increased severance expenses in Q4 and FY 2025.

• Focus remains on scaling research/data with AI and expanding in both public and private markets.

• Ongoing integration of AI and new product launches to address evolving investor needs.