Financial Data and Key Metrics Changes - MSCI reported organic revenue growth of 9%, adjusted EBITDA growth of 10%, and adjusted earnings per share growth of over 15% in Q3 2025 [6] - The company repurchased $1.25 billion worth of shares in Q3, bringing year-to-date repurchases to over $1.5 billion, with an additional $3 billion authorized for future repurchases [6] Business Line Data and Key Metrics Changes - The index franchise achieved recurrent net new subscription sales growth of 27%, with 43% growth in the Americas [7] - Total AUM in investment products linked to MSCI indices reached $6.4 trillion, including $2.2 trillion in ETFs and $4.2 trillion in non-ETFs [7] - Analytics delivered recurrent net new sales growth of 16%, driven by strong adoption of risk tools and equity models by hedge funds [8] - Subscription run rate growth for wealth managers was nearly 11%, while asset owners posted 9% growth [12][14] - Subscription run rate growth for banks and broker dealers was 9%, with a record level of recurring sales [15] Market Data and Key Metrics Changes - Equity ETFs linked to MSCI indexes captured $46 billion of inflows during Q3 2025 [17] - The index retention rate remained durable at nearly 96% [17] - Sustainability and climate solutions saw an 8% subscription run rate growth, with climate solutions growing at 16% [19] Company Strategy and Development Direction - MSCI is focusing on expanding its presence in private credit and enhancing its client segmentation strategy [10][25] - The company is leveraging AI to enhance existing products and develop new capabilities, aiming for significant value creation for shareholders [9][41] - MSCI is committed to helping the active asset management industry recover by creating new products, particularly in the active ETF space [31][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term opportunities and the ability to drive growth from recent innovations [16] - The company is seeing solid momentum in delivering new products and capabilities, translating into tangible results [21] - Management acknowledged challenges in the sustainability and climate segment but emphasized the potential for monetization through indices [54] Other Important Information - MSCI launched a private credit factor model and a new global taxonomy for private assets, enhancing transparency and standardization [8][9] - The company is actively developing datasets and products for market makers and broker dealers to fuel liquidity [33] Q&A Session Summary Question: Strategy around private credit - Management is bullish on private credit, emphasizing the need for transparency tools for private credit funds to attract investors [24][25] Question: New products and marketing efforts - The strategy includes creating new products for the active asset management industry and expanding into other client segments [31][35] Question: AI opportunities and cost savings - AI is expected to dramatically increase margins by creating new products and reducing operational costs [63][64] Question: Sales momentum in asset management - The sales momentum is attributed to upselling additional content and services to existing clients, particularly in index [68] Question: Competitive moat against new entrants - MSCI's proprietary data and trusted brand create significant barriers to entry for competitors [72][75] Question: Performance of net new sales in EMEA - There was a decline in net new sales in EMEA, with management noting the need for further product innovation in that region [78]

Financial Data and Key Metrics Changes - MSCI reported organic revenue growth of 9%, adjusted EBITDA growth of 10%, and adjusted earnings per share growth of over 15% in Q3 2025 [4] - The company repurchased $1.25 billion worth of shares in Q3, bringing year-to-date repurchases to over $1.5 billion, with an additional $3 billion authorized for future buybacks [4] Business Line Data and Key Metrics Changes - The index franchise achieved recurrent net new subscription sales growth of 27%, with 43% growth in the Americas, and total AUM in investment products linked to MSCI indices reached $6.4 trillion [5] - Analytics delivered recurrent net new sales growth of 16%, driven by strong adoption of risk tools and equity models by multi-strategy hedge funds [6] - Subscription run rate growth for wealth managers was nearly 11%, while asset owners posted 9% growth, and banks and broker dealers achieved 9% growth [11][12][13] Market Data and Key Metrics Changes - Equity ETFs linked to MSCI indices captured $46 billion of inflows during Q3, with strong demand for MSCI Developed Markets ex U.S. and MSCI Emerging Markets Indexes [16] - The retention rate for sustainability and climate solutions was almost 94%, reflecting the essential nature of these tools [18] Company Strategy and Development Direction - MSCI is focusing on expanding its presence in private credit and enhancing its client segmentation strategy to deepen penetration in existing segments while targeting new client segments [9][10] - The company is leveraging AI to enhance product offerings and operational efficiency, with a goal to significantly increase the scale of datasets and improve margins [39][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term opportunities and the ability to drive growth from recent innovations and investments, particularly in private assets and wealth management [15][34] - The company noted a stable market environment with consistent dynamics, particularly in the Americas, and highlighted a healthy product pipeline supporting strong client engagement [45][46] Other Important Information - MSCI launched a private credit factor model and a new global taxonomy for private assets, aiming to provide consistent standards and improve transparency in private markets [7][8] - The company is seeing strong momentum in new product development, particularly in AI-driven solutions, which are expected to enhance revenue growth and operational efficiency [40][42] Q&A Session Summary Question: Strategy around private credit - Management is bullish on private credit, emphasizing the need for tools to demonstrate creditworthiness and market risk, and highlighted innovations in credit assessments and private credit indices [22][23][24][26] Question: New products and marketing efforts - The strategy includes helping the active asset management industry create new products, particularly in active ETFs, and expanding into new client segments [28][29][30][32][34] Question: AI opportunities and cost savings - AI is expected to dramatically increase margins by enabling faster product creation and reducing operational costs, with significant investments in AI projects [37][61] Question: Pipeline and sales cycle for Q4 - The overall environment is stable, with a healthy product pipeline and strong client engagement, particularly in index and analytics [44][45] Question: Non-ETF and fixed income business performance - Non-ETF revenue growth can be affected by lumpiness, while fixed income AUM is around $90 billion, with ongoing focus on driving adoption and innovation [49][51] Question: Active ETFs economics and competitive advantages - Active ETFs are seen as a growing category, providing new revenue opportunities without cannibalizing existing business [56][58] Question: Competitive moat against new entrants - MSCI's proprietary data, trusted models, and established client relationships create significant barriers to entry for potential competitors [70][74][76] Question: Performance in EMEA region - There has been sluggishness in EMEA, but product development efforts are global, and innovations are expected to drive growth in the region [78]

Third Quarter 2025 Earnings Presentation October 28, 2025 © 2025 MSCI Inc. All rights reserved. Introduction → Forward-Looking Statements 3 → Foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period. While operating revenues adjusted for the impact of foreign currency fluctuations includes asset-based fees that have b ...

Core Insights - MSCI reported quarterly earnings of $4.47 per share, exceeding the Zacks Consensus Estimate of $4.37 per share, and up from $3.86 per share a year ago [1] - The earnings surprise was +2.29%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $793.43 million, slightly missing the Zacks Consensus Estimate by 0.72%, but up from $724.71 million year-over-year [3] Earnings Performance - The company has consistently outperformed EPS estimates, achieving a surprise of +0.24% in the previous quarter [2] - The current consensus EPS estimate for the upcoming quarter is $4.58, with expected revenues of $822.99 million, and for the current fiscal year, the EPS estimate is $17.10 on revenues of $3.14 billion [8] Stock Performance and Outlook - MSCI shares have declined approximately 8.9% year-to-date, contrasting with the S&P 500's gain of 16.9% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Investment Management industry, to which MSCI belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Another company in the same industry, GCM Grosvenor Inc., is expected to report earnings soon, with a projected EPS of $0.17, reflecting a year-over-year increase of +6.3% [10]

Group 1 - MSCI reported a profit increase in Q3, driven by higher client spending and demand for index products and analytical services [1] - The company's profit for the quarter ending September 30 was $325.4 million, or $4.25 per share, compared to $280.9 million, or $3.57 per share, in the same period last year [1] - The index segment's recurring subscription revenue grew by 8.3% year-over-year to $242.6 million, supported by the growth of market-cap weighted index products [1] Group 2 - MSCI's total revenue increased by nearly 9.5% to $793.4 million, aided by rising fee income based on asset size [1] - The company's operating expenses rose by 7% year-over-year, primarily due to increased investments in employee compensation and information technology [2] - The current U.S. market is experiencing upward volatility, with lower interest rates and optimism in the AI sector alleviating investor concerns despite worries about the labor market and tariff issues [2]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Performance - Operating revenues for Q3 2025 were $793.4 million, an increase of 9.5% compared to Q3 2024[3] - Net income for Q3 2025 reached $325.4 million, up 15.8% year-over-year[11] - Diluted EPS for Q3 2025 was $4.25, reflecting a 19.0% increase from Q3 2024[5] - Recurring subscription revenues grew by 7.9%, while asset-based fees increased by 17.1% in Q3 2025[5] - The Index segment reported operating revenues of $451.2 million, up 11.4% year-over-year[14] - The Analytics segment's operating revenues were $182.2 million, an increase of 5.7% compared to Q3 2024[18] - Sustainability and Climate segment operating revenues reached $90.1 million, up 7.7% year-over-year[20] - Total operating revenues for All Other – Private Assets were $70.0 million, an increase of 9.7% year-over-year, primarily driven by recurring subscriptions growth of 10.4%[22] - Adjusted EBITDA for the third quarter of 2025 was $19.3 million, reflecting an 18.7% increase compared to the same period in 2024, with an adjusted EBITDA margin of 27.6%[22] - Adjusted EBITDA for Q3 2025 was $350,263, an increase of 11.5% compared to $314,148 in Q3 2024[72] - The adjusted EBITDA margin for Q3 2025 remained stable at 77.6% compared to the same quarter last year[72] - Organic operating revenue growth for Q3 2025 was 11.4%, with subscription revenue growing by 8.3% and asset-based fees increasing by 17.1%[84] Shareholder Returns - The company repurchased $1,248.9 million worth of shares at an average price of $559.95 through October 27, 2025[5] - A new $3.0 billion share repurchase program was authorized by the MSCI Board on October 25, 2025[5] - Approximately $137.4 million in dividends were paid to shareholders in the third quarter of 2025, with a declared cash dividend of $1.80 per share for the fourth quarter[31] - The company authorized a new stock repurchase program for up to $3.0 billion of its common stock on October 25, 2025[30] Cash Flow and Capital Expenditures - Free cash flow for the third quarter of 2025 was $423.3 million, up 7.4% year-over-year[29] - Capital expenditures (Capex) for the third quarter were $26.1 million, with net cash provided by operating activities increasing by 6.6% to $449.4 million[29] - Cash and cash equivalents stood at $400.1 million as of September 30, 2025, while total debt outstanding was $5.6 billion, resulting in a total debt to adjusted EBITDA ratio of 3.0x[25][26] - The company issued $1.25 billion of 5.25% Senior Unsecured Notes due 2035 on August 8, 2025, and amended its credit agreement to increase revolving loan commitments to $1.6 billion[27][28] Debt and Assets - Long-term debt increased to $5,507,771,000 as of September 30, 2025, up from $4,510,816,000 at December 31, 2024[69] - Total current assets decreased to $1,308,721,000 as of September 30, 2025, from $1,344,021,000 at December 31, 2024[69] - Deferred revenue decreased to $974,662,000 as of September 30, 2025, compared to $1,123,423,000 at December 31, 2024, indicating a reduction in future revenue obligations[69] Subscription Metrics - New recurring subscription sales increased by 16.5% to $29,443,000 for the three months ended September 30, 2025, compared to $25,271,000 in the same period of 2024[74] - Subscription cancellations decreased by 0.5% to $9,911,000 for the three months ended September 30, 2025, compared to $9,862,000 in the same period of 2024[74] - Net new recurring subscription sales rose by 26.8% to $19,532,000 for the three months ended September 30, 2025, compared to $15,409,000 in the same period of 2024[74] - The total retention rate improved to 94.7% for the three months ended September 30, 2025, compared to 94.2% in the same period of 2024[78] Guidance and Future Outlook - Full-Year 2025 guidance includes operating expenses of $1,415 to $1,445 million and free cash flow of $1,410 to $1,470 million[33] - The company anticipates free cash flow for the full year to be between $1,410,000,000 and $1,470,000,000[83] - The nine-month operating revenue growth for 2025 was 11.2%, with subscription revenue growth at 8.8%[85]

Core Insights - MSCI reported strong financial performance for Q3 2025, with record recurring sales in its Index and Analytics product lines, and a significant increase in asset-based fees driven by growth in assets under management (AUM) [3][4][6] Financial Highlights - Operating revenues reached $793.4 million, a 9.5% increase year-over-year, with organic operating revenue growth of 9.0% [4][6] - Operating income was $447.7 million, up 11.6%, resulting in an operating margin of 56.4% [4][9] - Net income increased by 15.8% to $325.4 million, with diluted EPS rising 19.0% to $4.25 [4][11] - Adjusted EBITDA was $494.4 million, reflecting a 9.7% increase, with an adjusted EBITDA margin of 62.3% [4][12] Revenue Breakdown - Recurring subscription revenues grew by 7.9%, while asset-based fees surged by 17.1% [4][6] - The Index segment saw operating revenues of $451.2 million, an 11.4% increase, driven by higher asset-based fees and recurring subscription revenues [14][15] - The Analytics segment reported operating revenues of $182.2 million, up 5.7%, primarily from recurring subscriptions [17][18] - Sustainability and Climate segment revenues increased by 7.7% to $90.1 million, driven by growth in recurring subscriptions [20][21] Client Metrics - The total Run Rate as of September 30, 2025, was $3,186.5 million, up 10.1%, with a retention rate of 94.7% [7][4] - Organic recurring subscription Run Rate growth was 7.4% [7] Capital Allocation - MSCI repurchased $1,248.9 million worth of shares, with an average repurchase price of $559.95 [4][28] - Approximately $137.4 million in dividends were paid to shareholders, with a cash dividend of $1.80 per share declared for Q4 2025 [4][29] Guidance - MSCI provided guidance for Full-Year 2025, projecting operating expenses between $1,415 million and $1,445 million, and net cash provided by operating activities between $1,540 million and $1,590 million [31][30]

Core Viewpoint - The Indonesian stock market experienced its largest drop in over six months, primarily due to concerns regarding potential adjustments to the weight of Indonesian stocks in the MSCI index, as indicated by a report from MSCI [1][3]. Market Performance - On Monday, the Indonesian Composite Index fell significantly, with a maximum decline of 3.8%, while the MSCI Indonesia Index decreased by 2.52% [2]. - Major companies saw declines in their stock prices, including PT Barito Renewables Energy Tbk (BREN) down 14.99%, PT Bank Central Asia Tbk (BBCA) down 0.91%, and PT Dian Swastatika Sentosa Tbk (DSSA) down 12.12% [2]. MSCI Report Insights - The primary cause of the market drop was a consultation report from MSCI, which is considering changes to how the free float of Indonesian stocks is calculated [3]. - MSCI proposed using monthly shareholder registration data from the Indonesian Central Securities Depository (KSEI) to determine the free float of listed companies, although this plan is not finalized and feedback from market participants is being sought until December 31, 2025 [4]. Data Utilization and Methodology - The consideration to use KSEI data stems from its detailed classification of shareholders into corporate and individual categories, although KSEI data will not be directly used for calculating free float [5]. - MSCI is also exploring a more comprehensive approach to assess Indonesian stocks, which may involve excluding scrip-based shares from the free float calculation [6]. Potential Adjustments and Impact - As an alternative, MSCI is considering excluding scrip shareholders and corporate shareholders from the free float calculation. If the index is adjusted according to the new rules, the expected adjustment range is between 5% and 13%, which may require fund managers tracking the MSCI Indonesia Index to adjust their portfolio holdings by approximately 5% to 13% [7]. - There are currently five ETFs tracking the MSCI Indonesia Index, although specific sizes have not been disclosed [7][8]. MSCI Overview - MSCI is a global provider of indices and related financial products, widely referenced by investment professionals, including portfolio managers and financial media. As of December 31, 2024, assets under management based on MSCI indices are approximately $16.9 trillion, covering equity and multi-asset class funds [8].

Core Insights - MSCI is expected to report quarterly earnings of $4.37 per share, reflecting a 13.2% increase year-over-year, with revenues projected at $799.21 million, a 10.3% increase from the previous year [1] Earnings Estimates and Revisions - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Analyst Forecasts - Analysts forecast 'Operating Revenues- ESG and Climate' to reach $93.75 million, indicating a 12.1% year-over-year increase [4] - The consensus estimate for 'Operating Revenues- Analytics' is $184.18 million, reflecting a 6.9% year-over-year change [4] - 'Operating Revenues- Index' is expected to be $450.99 million, showing an 11.4% increase year-over-year [4] Revenue Breakdown - 'Operating Revenues- Asset-based fees - Total' is projected at $195.89 million, a 16.2% increase year-over-year [5] - Analysts estimate 'Period-End AUM in ETFs linked to MSCI equity indexes' at $2.12 billion, up from $1.76 billion in the same quarter last year [5] Subscription Metrics - The 'Index Run Rate - Recurring subscriptions' is expected to reach $984.65 million, compared to $906.80 million in the same quarter last year [6] - The average prediction for 'Total Run Rate - Total recurring subscriptions' is $2.38 billion, up from $2.21 billion in the previous year [6] Retention Rates and Run Rates - The estimated 'Total Retention Rate' is 94.8%, up from 94.2% a year ago [7] - 'Analytics Run Rate' is projected at $741.96 million, compared to $691.33 million last year [7] - 'All Other - Private Assets Run Rate' is expected to reach $285.02 million, up from $268.58 million in the same quarter last year [7] ESG and Climate Metrics - The 'ESG and Climate Run Rate' is estimated at $372.98 million, compared to $344.02 million in the same quarter last year [8] - The 'Index Retention Rate' is projected to be 96.1%, up from 95.4% in the previous year [8] Stock Performance - MSCI shares have shown a return of -5.1% over the past month, contrasting with the Zacks S&P 500 composite's +0.2% change, indicating a potential alignment with overall market performance [9]