MSCI (MSCI) Q4 2025 earnings summary

Executive summary

• Achieved 10.6% year-over-year growth in operating revenues for Q4 2025, with organic growth at 10.2%.

• Adjusted EBITDA margin reached 62.2%, and operating margin improved to 56.4%.

• Adjusted EPS rose 11.5% to $4.66, while diluted EPS declined 2.3% to $3.81; net income for Q4 2025 was $284.7M, down 6.8%.

• Achieved eleven consecutive years of double-digit adjusted EPS growth and a compound annual growth rate since IPO of nearly 13% for revenue, 15% for adjusted EBITDA, and over 16% for adjusted EPS.

• Returned over $1B to shareholders in Q4 2025 through $906M–$958M in share repurchases and $135M in dividends.

Financial highlights

• Q4 2025 operating revenues were $822.5M, up 10.6% year-over-year; adjusted EBITDA was $512.0M, up 13.2%.

• Total run rate at year-end was $3.3B, up 13%, with recurring subscription run rate over $2.4B (+9%).

• Retention rate for Q4 2025 was 93.4%, with index retention nearly 96% for the year.

• Free cash flow for Q4 2025 was $464.8M, up 17.8%; ending cash balance over $515M.

• Equity ETFs linked to indices captured a record $67B of inflows in Q4 and $204B for the year.

Outlook and guidance

• 2026 operating expense guidance: $1,490M–$1,530M; adjusted EBITDA expense: $1,305M–$1,335M.

• Interest expense expected at $274M–$280M; effective tax rate projected at 18.0%–20.0%.

• CapEx includes $25M for a new London office and is forecasted at $160M–$170M.

• Free cash flow guidance for 2026: $1,470M–$1,530M, reflecting higher expected cash taxes and timing differences.

• Anticipated $88M discrete tax benefit in 2026 from internal restructuring.