MSCI (MSCI) Q2 2025 earnings summary

Executive summary

• Operating revenues for Q2 2025 rose 9.1% year-over-year to $772.7 million, with net income up 13.8% to $303.7 million and adjusted EBITDA margin at 61.4%, reflecting strong profitability and operational leverage.

• Diluted EPS increased 16.3% to $3.92; adjusted EPS up 14.6% to $4.17.

• Recurring subscriptions and asset-based fees were the primary revenue drivers, with asset-based fees up 12.7% year-over-year and recurring subscription revenues up 7.9%.

• Retention rate remained high at 94.4%, underscoring the stability of the recurring revenue base.

• Free cash flow for the quarter was $301.6 million, supporting significant shareholder returns through $131.2 million in share repurchases and $139.3 million in dividends paid.

Financial highlights

• Operating revenues for Q2 2025 were $772.7 million, up 9.1% year-over-year; net income: $303.7 million, up 13.8%; operating income increased 11.1% to $425.2 million.

• Adjusted EBITDA was $474.4 million, up 10.3% year-over-year, with a margin of 61.4%.

• Free cash flow for the quarter was $301.6 million; cash and cash equivalents stood at $347.3 million; total debt at $4.5 billion.

• Weighted average diluted shares outstanding decreased 2.2% year-over-year to 77.5 million.

• Total Run Rate at quarter-end was $3.1 billion, up 10.7% year-over-year; asset-based fee run rate grew 17.1%.

Outlook and guidance

• Full-year 2025 operating expense guidance: $1,405–$1,445 million; adjusted EBITDA expense: $1,220–$1,250 million.

• Interest expense expected at $182–$186 million; capex at $115–$125 million.

• Effective tax rate projected at 17.5%–20.0%; free cash flow guidance: $1,400–$1,460 million.

• Management expects continued revenue growth driven by recurring subscriptions and asset-based fees, with a focus on expanding in key geographies and product innovation.

• The company anticipates sufficient liquidity to fund operations, investments, and capital returns for at least the next 12 months and beyond.