Revenue Growth - Reported revenue increased 8.4% to $617.4 million, with organic revenue growth of 9.0% compared to the prior-year period[4] - Morningstar Credit revenue grew 28.5% to $91.1 million, driven by strong performance across asset classes and regions[17] - Morningstar Direct Platform contributed $211.1 million to revenue, with a 6.3% increase compared to the prior-year period[12] - PitchBook revenue increased 7.9% to $169.0 million, supported by growth in core investor and advisor client segments[14] - Morningstar's consolidated revenue for Q3 2025 was $617.4 million, an increase of 8.4% compared to $569.4 million in Q3 2024[39] - The total revenue for the nine months ended September 30, 2025, reached $1,804.4 million, reflecting a 7.1% growth from $1,684.1 million in the same period of 2024[39] - Morningstar Direct Platform revenue increased by 6.3% to $211.1 million in Q3 2025, with a nine-month revenue of $619.5 million, up 4.6% year-over-year[39] - PitchBook revenue grew by 7.9% to $169.0 million in Q3 2025, with a nine-month total of $499.2 million, representing a 9.5% increase[39] - Morningstar Credit reported a significant revenue increase of 28.5% to $91.1 million in Q3 2025, with a nine-month revenue of $249.1 million, up 19.3%[39] Income and Earnings - Operating income rose 10.6% to $127.8 million, while adjusted operating income increased 15.6% to $150.6 million[8] - Diluted net income per share decreased 21.7% to $2.17, but adjusted diluted net income per share increased 27.5% to $2.55[9] - Consolidated net income decreased by 23.5% to $91.6 million in Q3 2025, down from $119.7 million in Q3 2024[36] - Basic net income per share was $2.18, a decline of 21.9% from $2.79 in the same quarter last year[36] - Adjusted operating income for Q3 2025 was $150.6 million, a 15.6% increase from $130.3 million in Q3 2024[47] - Adjusted diluted net income per share increased by 27.5% to $2.55 for the three months ended September 30, 2025, compared to $2.00 in 2024[49] Cash Flow and Expenditures - Cash provided by operating activities increased 2.0% to $195.7 million, while free cash flow rose 2.8% to $160.1 million[29] - Cash provided by operating activities for Q3 2025 was $195.7 million, compared to $191.9 million in Q3 2024[38] - Free cash flow for the three months ended September 30, 2025, was $160.1 million, a 2.8% increase from $155.8 million in 2024[49] - Year-to-date free cash flow decreased by 16.3% to $281.3 million in 2025, down from $336.1 million in 2024[49] - Year-to-date cash provided by operating activities decreased by 12.0% to $385.7 million in 2025, compared to $438.2 million in 2024[49] - Capital expenditures decreased slightly by 1.4% to $35.6 million for the three months ended September 30, 2025, from $36.1 million in 2024[49] Assets and Liabilities - Assets under management and advisement (AUMA) increased 11.1% to $70.8 billion, primarily driven by market performance[21] - Total assets as of September 30, 2025, were $3,557.6 million, slightly up from $3,548.9 million at the end of 2024[37] - Total liabilities increased to $2,043.6 million as of September 30, 2025, compared to $1,930.3 million at the end of 2024[37] - The total current liabilities were $945.5 million as of September 30, 2025, down from $967.3 million at the end of 2024[37] Share Repurchase and Tax - The company completed a $500 million share repurchase program, with a new three-year program approved for up to $1 billion in share repurchases[2] - The effective tax rate increased to 25.5% from 19.8% in the prior-year period, mainly due to the prior-year gain from the sale of the Commodity and Energy Data business[10] Other Financial Metrics - The average Assets Under Management (AUMA) for Morningstar was approximately $360.4 billion in Q3 2025, an 11.9% increase from $322.2 billion in Q3 2024[41] - Morningstar Retirement's total AUMA reached $297.8 billion, a 12.6% increase from $264.4 billion in the previous year[41] - The adjusted operating margin improved to 24.4% in Q3 2025, compared to 22.9% in Q3 2024, reflecting a 1.5 percentage point increase[47] - The company reported a decrease in interest expense by 21.3% to $7.0 million in Q3 2025 from $8.9 million in Q3 2024[36] - Non-operating gains and losses for the three months ended September 30, 2025, reflected a significant decrease of 98.0% compared to the previous year[49] - Other non-recurring items showed a not meaningful change, with a loss of $0.01 for the three months ended September 30, 2025[49] - Adjusted operating income and margin metrics were not provided in the extracted data but are critical for ongoing performance evaluation[48] - The company continues to focus on organic revenue growth, excluding the effects of acquisitions and foreign currency translations[48]

Core Insights - Morningstar, Inc. (NASDAQ:MORN) is recognized as one of the Best 52-Week Low Mid Cap Stocks to Buy Now, highlighting its investment potential [1] - Morningstar Retirement has announced a strategic collaboration with NPPG Plan Professionals, LLC to enhance personalized retirement offerings [1][2] Company Collaboration - The collaboration will deliver new retirement offerings through Pooled Employer Plans (PEPs), integrating Morningstar Retirement's advisor-managed accounts service into NPPG's PEP offerings [2] - This partnership aims to bring personalization to retirement plans, making them more accessible to a broader market [2] Market Impact - Nathan Voris, head of go-to-market at Morningstar Retirement, emphasized that PEPs are addressing the coverage gap for small and mid-sized businesses, where 56 million U.S. workers currently lack workplace retirement plans [3] - The collaboration is expected to simplify administration, lower costs, and expand access to high-quality retirement plans, democratizing access for more employees [3] Company Overview - Morningstar, Inc. is a provider of independent investment research and data, offering insights across various markets and asset classes worldwide [3]

Core Viewpoint - The article emphasizes the importance of risk matching in investment advisory services, especially in the context of current market volatility, highlighting that regardless of market conditions, aligning client risk tolerance with account risk levels is essential for enhancing the investment experience [1][2][3]. Group 1: Risk Matching Focus - The seminar will focus on the theme of "risk," exploring how to accurately match client account risk levels with their risk tolerance, thereby creating a robust investment strategy that can withstand market fluctuations [3][5]. - Traditional methods of understanding clients (KYC) and their holdings (KYP) often lack rigor, leading to mismatches between client risk tolerance and account risk levels, which negatively impacts the investment experience [2][3]. - The seminar aims to utilize Morningstar's professional risk assessment tools and methodologies to develop a practical asset allocation logic centered on risk matching [5][9]. Group 2: Seminar Highlights - Key highlights include mastering scientific risk assessment tools to ensure that client risk identification is substantive rather than superficial [8]. - The seminar will guide clients away from impulsive trading behaviors, such as "buying high and selling low," by establishing a risk-driven asset allocation framework [8]. - The focus will be on enhancing the precision of asset allocation and improving client experience, thereby reinforcing the professional value of investment advisory services [8][9]. Group 3: Participation and Registration - Interested participants can register for the seminar via a QR code or by clicking the link provided at the end of the article, with a registration deadline set for October 30 at noon [13]. Group 4: About Morningstar - Morningstar, Inc. is a leading global investment research firm, providing financial information, analysis, and ratings for various investment products, and managing approximately $352 billion in assets as of June 30, 2025 [16].

Core Viewpoint - Morningstar Inc. (NASDAQ:MORN) is currently experiencing a price of $215.91, reflecting a 0.65% increase in the current market session, but has seen a decline of 8.46% over the past month and 37.13% over the past year, raising questions about its valuation despite current performance [1]. Group 1: Stock Performance - The stock price of Morningstar Inc. is $215.91 after a 0.65% increase in the current session [1]. - Over the past month, the stock has decreased by 8.46% [1]. - In the past year, the stock has fallen by 37.13% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [5]. - Morningstar Inc. has a P/E ratio of 22.82, which is significantly lower than the Capital Markets industry average P/E ratio of 147.95 [6]. - A lower P/E ratio may suggest that shareholders expect the stock to underperform compared to industry peers or that the stock is undervalued [6]. Group 3: Limitations of P/E Ratio - While a lower P/E ratio can indicate undervaluation, it may also reflect a lack of expected future growth from shareholders [8]. - The P/E ratio should not be analyzed in isolation; other factors such as industry trends and business cycles also influence stock prices [8]. - Investors are advised to consider the P/E ratio alongside other financial metrics and qualitative analyses for informed investment decisions [8].

Core Insights - The financial sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Morningstar Inc (NASDAQ:MORN)**: The company announced an acquisition of the Center for Research in Security Prices (CRSP). Its stock has decreased by approximately 8% over the past month, with a 52-week low of $210.02. The RSI value is 28.1, and shares closed at $214.51, reflecting a 1.8% increase [8] - **Evertec Inc (NYSE:EVTC)**: Recently appointed Joaquin Castrillo as COO and promoted Karla Cruz-Jusino to CFO. The stock has fallen around 12% in the last month, with a 52-week low of $29.38. The RSI value is 28.8, and shares closed at $29.87, showing a 0.9% increase [8] - **Saratoga Investment Corp (NYSE:SAR)**: Reported disappointing quarterly results but noted growth in NAV and strong return on equity. The stock has also decreased by about 12% over the past month, with a 52-week low of $21.10. The RSI value is 28.8, and shares closed at $21.72, up by 0.7% [8]

Core Insights - Morningstar, Inc. has published its ninth annual Health Savings Account (HSA) Landscape Report, providing a comprehensive analysis of industry trends and evaluations of leading HSA providers [1] Group 1: Industry Trends - The report evaluates 11 HSA providers based on two primary use cases: as spending accounts for current medical expenses and as long-term investment accounts [1] - The analysis includes insights into new developments impacting the HSA landscape, highlighting the evolving nature of these accounts [1]

Core Insights - The article emphasizes the importance of bridging the information gap between individual investors and professional institutions, a mission that Morningstar has pursued since its founding in 1984 [2]. Group 1: Data Quality and Investment Solutions - Morningstar has built one of the largest and highest-quality investment databases globally, covering approximately 800,000 investment products, with a strong focus on rigorous data quality checks [3]. - The company connects disparate data sources by acquiring firms like PitchBook, enabling a comprehensive view of both public and private markets [3]. - Morningstar offers unique analytical tools, such as medal ratings and sustainability ratings, to facilitate quicker decision-making from vast amounts of investment data [3]. Group 2: Services for Asset Managers and Institutional Investors - Morningstar provides professional research support for public funds and bank wealth management, offering independent and objective evaluation systems for investment decisions [10]. - The company assists institutions in constructing robust investment portfolios that align with long-term goals through macro and strategic research support [12]. - Insights into global product innovation trends are shared to help institutions develop forward-looking financial products that meet investor needs [13]. Group 3: Commitment to Client Interests - Morningstar aims to empower investment advisors to better serve their clients, believing that those who genuinely represent client interests will ultimately achieve market returns [7]. - The company maintains an independent viewpoint and cautious approach in its research, providing a foundation for investment advisors to guide clients towards long-term strategies amidst market noise [6]. Group 4: Company Overview - Morningstar, Inc. is a leading investment research firm with operations across North America, Europe, Australia, and Asia, providing financial information, fund, and stock analysis to various professional investors [17]. - As of June 30, 2025, Morningstar manages and advises on assets totaling approximately $352 billion across 33 global markets [20].

Group 1 - Morningstar Inc. is acquiring the Center for Research in Security Prices (CRSP) for $375 million, which is expected to enhance its market position as a major index provider for public US equity index funds [1][2] - The acquisition will provide Morningstar access to CRSP's historical stock market data and indexes, which generate approximately $55 million in annual revenues [2][3] - The CEO of Morningstar emphasized that integrating CRSP's data validation processes and indexing methodologies will strengthen their commitment to offering high-quality, data-driven tools for investors [3] Group 2 - Morningstar is recognized as a strong buy-the-dip stock according to analysts, indicating potential investment interest [1] - The company aims to empower investors by providing insights on a wide range of investment products, including public and private markets, and debt securities [3]

Core Viewpoint - Alibaba's stock price has experienced a strong rally in Hong Kong following an increase in target price by JPMorgan analysts, marking the highest trading level since August 2021 [1] Group 1 - Alibaba shares have jumped for four consecutive weeks [1] - The stock is currently trading at its highest level since August 2021 [1]

Core Insights - Morningstar has launched the Morningstar PitchBook US Modern Market 100 Index, which tracks 100 top public and private market companies, including 90 publicly traded and 10 venture-backed firms like SpaceX and OpenAI [1][2] Group 1: Index Structure and Purpose - The index's 90/10 mix reflects the actual structure of the modern equity landscape, utilizing secondary market transactions for private equity data and official exchanges for public companies [2] - The inclusion of private companies in investment portfolios is essential, as they represent some of the fastest-growing and most dynamic companies [3][4] Group 2: Investment Accessibility - Retail investors face challenges in buying shares of private companies due to securities laws that restrict private firms from selling securities to the general public [5] - Investment in private companies is generally limited to accredited investors, who are defined as individuals or entities with a net worth of at least $1 million, excluding their primary residence [6] Group 3: Types of Private Investments - Private investing can take various forms, including angel investing for early-stage startups, venture capital for growth support, and late-stage investments known as private equity investing [7]