Financial Data and Key Metrics Changes - The company reported record adjusted revenue of $1,537 million, an increase of 5.9% year-over-year, and adjusted earnings per share of $1.45, a 9.8% increase [5][13] - Adjusted consolidated EBITDA reached $600 million for the first time, up 7.4%, resulting in a quarterly adjusted consolidated EBITDA margin of 39% [5][14] - Cash from operating activities for the six months ended June 30, 2025, was $645.1 million, up 14% year-over-year [8][14] Business Line Data and Key Metrics Changes - GLOBAB experienced organic growth of 7.3%, driven by double-digit growth in private markets and retail alternatives [5][10] - The financial services recurring revenue growth was 3.9%, which includes software-enabled services and maintenance revenue [6] - The health segment reported flat organic growth for the quarter [6] Market Data and Key Metrics Changes - Internationally, the company saw strength in Europe, Australia, and the Middle East, reflecting a positive trend of increased international win rates [6][7] - The company noted that early indicators show activity is picking up in the second half of the year, despite macroeconomic challenges faced in the first half [12][68] Company Strategy and Development Direction - The company is focused on continuous investment in its AI strategy, believing that partnerships with Blue Prism will enhance its competitive advantages [8][65] - A definitive agreement to acquire Callistone was announced, expected to close in Q4 2025, which is anticipated to be accretive to revenue growth, EBITDA margin, and EPS within twelve months [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to overcome macroeconomic challenges due to the diversification of revenue across product lines and customer types [12] - The company raised its full-year revenue guidance by $15 million at the midpoint, now expecting revenue in the range of $6,143 million to $6,243 million [16] Other Important Information - The company repurchased 3.4 million shares for $269 million at an average price of $77.99, with a share repurchase authorization recently increased to $1.5 billion [8][14] - The effective non-GAAP tax rate was reported at 24% [14] Q&A Session Summary Question: Can you discuss the revenue synergy potential of the Callistone deal? - Management indicated that while it is early to quantify, there are significant cross-selling opportunities due to the client bases of both companies [19][20] Question: Why has the organic revenue outlook for the full year not changed despite strong Q2 performance? - Management clarified that expectations for the second half remain strong, and the overall organic growth for the year is still projected at 4.5% [28][29] Question: What is the comfortable level of leverage for potential future acquisitions? - Management stated a comfort level in the mid-fours for leverage, indicating readiness for significant acquisitions if opportunities arise [30][32] Question: What percentage of revenue comes from professional services, and is it a leading indicator? - Management explained that professional services are essential for building out technology for clients, typically leading to service contracts after initial projects [35][36] Question: What is the growth rate for the BATEA segment? - Management reported that BATEA is growing at a historical low double-digit growth rate, with expectations for seasonality in revenue [43][44] Question: Can you provide an update on the Blue Prism product lifecycle? - Management noted that Blue Prism is rolling out new features and has deployed thousands of digital workers, indicating a strong future outlook despite competitive pressures [64][65] Question: How significant has the degradation in deal counts been from the beginning of the year? - Management indicated that while there was a decline, early indicators show an uptick in bookings and deal counts, suggesting growth in the back half of the year [66][68]

Financial Data and Key Metrics Changes - The company reported record adjusted revenue of $1,537 million, an increase of 5.9% year-over-year, and adjusted earnings per share of $1.45, a 9.8% increase [6][13] - Adjusted consolidated EBITDA reached $600.4 million, reflecting a 7.4% increase and a margin of 39%, which is a 50 basis point expansion [13][14] - Cash from operating activities for the six months ended June 30, 2025, was $645.1 million, up 14% year-over-year [8] Business Line Data and Key Metrics Changes - GLOBAB experienced organic growth of 7.3%, driven by double-digit growth in private markets and retail alternatives [6][10] - The financial services recurring revenue growth was 3.9%, which includes software-enabled services and maintenance revenue [7] - The health segment reported flat organic growth for the quarter [6] Market Data and Key Metrics Changes - Internationally, the company saw strength in Europe, Australia, and the Middle East, reflecting increased international win rates [7] - The company’s retention rate remained stable at 97% [8] Company Strategy and Development Direction - The company is focused on continuous investment in its AI strategy, partnering with Blue Prism to enhance workflows and deploy AI agents [8] - A definitive agreement to acquire Callistone was announced, expected to close in Q4 2025, which aligns with the company's capital allocation strategy [18] - The company aims to manage expenses while increasing productivity to improve operating margins [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of their diversified revenue across product lines, which helps to mitigate macroeconomic challenges [10] - Early indicators suggest an uptick in activity for the second half of the year, despite previous macroeconomic challenges [12] - The company raised its full-year revenue guidance by $15 million, now expecting revenue in the range of $6,143 million to $6,243 million [17] Other Important Information - The company ended the second quarter with $480 million in cash and cash equivalents and $6.9 billion in gross debt, resulting in a net leverage ratio of 2.72x [15] - The company plans to continue opportunistic share buybacks, having repurchased 3.4 million shares for $269 million [8] Q&A Session Summary Question: Revenue synergy potential from the Callistone deal - Management indicated that while it is early to quantify, there are significant cross-selling opportunities with Callistone's 4,500 clients and their own 10,000 clients, particularly in ETFs and digital assets [21][22] Question: Capital expenditures and their allocation - Management noted that the increase in capital expenditures is largely due to investments in growth and technology products, with expectations to maintain higher levels going forward [23][26] Question: Organic growth guidance for the second half - Management clarified that expectations for organic growth remain strong, with no significant pull-forward of deals affecting the outlook [30][31] Question: Professional services revenue as a leading indicator - Management explained that professional services typically lead to revenue contracts, with a three to six-month process for implementation [36][37] Question: Update on the health solutions segment - Management stated that the selling season for health solutions is currently ongoing, with potential for significant revenue acceleration in the future [55][56] Question: Growth rates for the BATEA segment - Management indicated that BATEA is growing at a historical low double-digit growth rate, with expectations for accelerated growth in the second half of the year [44][45] Question: Update on Blue Prism and its product lifecycle - Management reported successful deployment of digital workers and expressed optimism about Blue Prism's potential, despite competitive pressures [68][69] Question: Intralinks deal volume degradation - Management noted that while there has been a decline in deal volume, early indicators show an uptick in bookings and deal counts, suggesting growth in the back half of the year [70][71]

Financial Performance Highlights - Adjusted revenues for Q2 2025 reached $1,537.8 million, a 5.9% increase compared to $1,452.4 million in Q2 2024[8] - Adjusted operating income attributable to SS&C was $583.5 million in Q2 2025, up 7.7% from $541.7 million in Q2 2024[8] - Adjusted consolidated EBITDA attributable to SS&C hit a record $600.4 million for Q2 2025, a 7.4% increase from $558.9 million in Q2 2024, with a margin of 39.0%[7, 8] - Adjusted diluted earnings per share attributable to SS&C rose to $1.45, a 9.8% increase[7, 8] - Net cash generated from operating activities for the six months ended June 30, 2025, was $645.1 million, up 14.1% compared to the same period in 2024[7, 8] Organic Growth and Revenue Retention - Adjusted Organic Revenue Growth was 3.5% in Q2 2025[7, 20] - Financial Services Recurring Revenue Growth was 3.9% for Q2 2025[7, 22] - The company's revenue retention rate was 97.1%[27] Capital Allocation and Debt Management - SS&C repurchased 3.4 million shares in Q2 2025 for $269.0 million, at an average price of $77.99 per share[7, 13] - $35.0 million of debt was paid down in Q2 2025[13] - Net leverage ratio is 2.72x, secured net leverage ratio is 1.55x LTM consolidated EBITDA attributable to SS&C of $2,358.4 million[13] Acquisition - SS&C announced an agreement to acquire Calastone for approximately $1.03 billion, expected to close in Q4 2025[13, 16]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides a high-level overview of SS&C Technologies' Q2 2025 financial performance, key business achievements, cash flow, capital structure, and future guidance [Q2 2025 Financial Overview](index=1&type=section&id=Q2%202025%20Financial%20Overview) SS&C Technologies reported strong Q2 2025 results with record adjusted revenues and EBITDA, showing GAAP revenue growth of **5.9% to $1,536.8 million** and adjusted diluted EPS increasing by **9.8% to $1.45** Q2 2025 and YTD Q2 2025 Financial Performance (GAAP vs. Adjusted) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (YoY) (%) | YTD Q2 2025 ($M) | YTD Q2 2024 ($M) | Change (YoY) (%) | | :--------------------------------------- | :-------- | :-------- | :----------- | :---------- | :---------- | :----------- | | **GAAP Results** | | | | | | | | Revenue | $1,536.8 | $1,451.5 | 5.9 | $3,050.7 | $2,886.5 | 5.7 | | Operating income | $344.5 | $327.6 | 5.2 | $702.4 | $660.5 | 6.3 | | Operating income margin | 22.4% | 22.6% | -20 bps | 23.0% | 22.9% | 10 bps | | Diluted EPS attributable to SS&C | $0.72 | $0.75 | (4.0) | $1.55 | $1.38 | 12.3 | | Net income attributable to SS&C | $180.8 | $190.3 | (5.0) | $393.8 | $347.9 | 13.2 | | **Adjusted Non-GAAP Results** | | | | | | | | Adjusted revenue | $1,537.8 | $1,452.4 | 5.9 | $3,052.6 | $2,888.2 | 5.7 | | Adjusted operating income attributable to SS&C | $583.5 | $541.7 | 7.7 | $1,158.8 | $1,081.7 | 7.1 | | Adjusted operating income margin | 37.9% | 37.3% | 60 bps | 38.0% | 37.5% | 50 bps | | Adjusted diluted EPS attributable to SS&C | $1.45 | $1.32 | 9.8 | $2.89 | $2.65 | 9.1 | | Adjusted consolidated EBITDA attributable to SS&C | $600.4 | $558.9 | 7.4 | $1,192.3 | $1,115.7 | 6.9 | | Adjusted consolidated EBITDA margin | 39.0% | 38.5% | 50 bps | 39.1% | 38.6% | 50 bps | [Key Business Highlights](index=1&type=section&id=Key%20Business%20Highlights) SS&C achieved record adjusted revenues and EBITDA in Q2 2025, driven by strong organic growth in financial services and strategic acquisitions, with optimism for continued strong performance - SS&C reported record adjusted revenues of **$1,537.8 million** and record adjusted consolidated EBITDA surpassing **$600 million**[4](index=4&type=chunk)[5](index=5&type=chunk) - Q2 Adjusted Organic Revenue Growth was **3.5 percent**, with Financial Services Recurring Revenue Growth at **3.9 percent**[5](index=5&type=chunk) - The company announced a definitive agreement to acquire Calastone for approximately **$1.03 billion**, expected to close in Q4 2025, enhancing access to new geographies, ETF, and Digital Asset capabilities[4](index=4&type=chunk)[5](index=5&type=chunk) - SS&C repurchased **3.4 million shares** for **$269.0 million** in Q2 2025 at an average price of **$77.99 per share**[5](index=5&type=chunk) [Operating Cash Flow & Capital Structure](index=2&type=section&id=Operating%20Cash%20Flow%20%26%20Capital%20Structure) SS&C demonstrated robust cash generation, with net cash from operating activities increasing significantly year-over-year, while maintaining a healthy capital structure with manageable leverage ratios Operating Cash Flow and Capital Structure Metrics | Metric | Value (June 30, 2025) | Change (YoY) | | :------------------------------------ | :-------------------- | :----------- | | Net cash from operating activities (Six Months) | $645.1 million | 14.1% increase | | Cash and cash equivalents | $480.3 million | | | Gross debt | $6,858.4 million | | | Consolidated net leverage ratio | 2.72 times | | | Net secured leverage ratio | 1.55 times | | [Financial Guidance](index=2&type=section&id=Financial%20Guidance) SS&C provided financial guidance for Q3 2025 and the full fiscal year 2025, projecting continued growth in adjusted revenue and earnings per share, alongside strong operating cash flow Q3 2025 and FY 2025 Financial Guidance | Metric | Q3 2025 Guidance | FY 2025 Guidance | | :--------------------------------------- | :----------------------- | :----------------------- | | Adjusted Revenue ($M) | $1,525.0 – $1,565.0 | $6,143.0 – $6,243.0 | | Adjusted Net Income attributable to SS&C ($M) | $364.0 – $380.0 | $1,462.0 – $1,542.0 | | Adjusted Diluted Earnings per Share attributable to SS&C | $1.44 – $1.50 | $5.82 – $6.06 | | Cash from Operating Activities ($M) | – | $1,479.0 – $1,559.0 | | Capital Expenditures (% of revenue) | – | 4.1% – 4.5% | | Diluted Shares (M) | 252.5 – 253.5 | 251.5 – 254.5 | | Effective Income Tax Rate (%) | 23.0% – 25.0% | 23.0% – 25.0% | - SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures due to the unreasonable efforts exception, as certain items are difficult to predict in advance[7](index=7&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides an overview of SS&C Technologies, including its business scope and investor relations contact details [About SS&C Technologies](index=5&type=section&id=About%20SS%26C%20Technologies) SS&C Technologies is a global provider of software and services for the financial services and healthcare industries, serving over 22,000 organizations worldwide since its founding in 1986 - SS&C is a global provider of services and software for the financial services and healthcare industries, founded in **1986** and headquartered in Windsor, Connecticut[10](index=10&type=chunk) - More than **22,000 financial services and healthcare organizations** globally rely on SS&C for expertise, scale, and technology[10](index=10&type=chunk) [Investor Relations Contact](index=5&type=section&id=Investor%20Relations%20Contact) Contact information for SS&C Technologies' investor relations team is provided for inquiries - Investor relations contacts include Brian Schell (CFO), Justine Stone (Head of Investor Relations), and Chand Madaka, with respective phone numbers and email addresses[11](index=11&type=chunk) [Financial Statements (GAAP)](index=6&type=section&id=Financial%20Statements%20(GAAP)) This section presents SS&C Technologies' condensed consolidated GAAP financial statements, including comprehensive income, balance sheets, and cash flows [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The condensed consolidated statements of comprehensive income show SS&C's revenue growth in both software-enabled services and license/maintenance, leading to increased gross profit and operating income for Q2 and YTD 2025, despite a slight decrease in net income for Q2 Key Comprehensive Income Data (Q2 and YTD Q2) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YTD Q2 2025 ($M) | YTD Q2 2024 ($M) | | :--------------------------------------- | :----------- | :----------- | :--------------- | :--------------- | | Total revenues | 1,536.8 | 1,451.5 | 3,050.7 | 2,886.5 | | Software-enabled services revenue | 1,267.7 | 1,192.4 | 2,537.6 | 2,380.1 | | License, maintenance and related revenue | 269.1 | 259.1 | 513.1 | 506.4 | | Gross profit | 736.9 | 698.3 | 1,484.0 | 1,405.5 | | Operating income | 344.5 | 327.6 | 702.4 | 660.5 | | Net income attributable to SS&C common stockholders | 180.8 | 190.3 | 393.8 | 347.9 | | Diluted earnings per share attributable to SS&C common stockholders | 0.72 | 0.75 | 1.55 | 1.38 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a slight decrease in total assets and current assets compared to December 31, 2024, primarily due to a reduction in client funds and cash, leading to an increase in total equity Key Balance Sheet Data | Metric | June 30, 2025 ($M) | December 31, 2024 ($M) | | :--------------------------------------- | :----------------- | :--------------------- | | Cash and cash equivalents | 480.3 | 567.1 | | Funds receivable and funds held on behalf of clients | 2,997.8 | 3,162.2 | | Total current assets | 4,660.4 | 4,862.4 | | Goodwill | 9,420.9 | 9,218.1 | | Total assets | 18,984.2 | 19,044.7 | | Client funds obligations | 2,997.8 | 3,162.2 | | Total current liabilities | 4,101.7 | 4,354.3 | | Long-term debt, net of current portion | 6,803.4 | 6,989.6 | | Total liabilities | 11,974.9 | 12,435.6 | | Total equity | 7,009.3 | 6,609.1 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, SS&C generated significantly more cash from operating activities, but increased cash usage in investing and financing activities resulted in a net decrease in cash and cash equivalents Key Cash Flow Data (Six Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | | :--------------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | 645.1 | 565.4 | | Net cash used in investing activities | (148.1) | (84.0) | | Net cash used in financing activities | (987.8) | (1,597.6) | | Net decrease in cash, cash equivalents and restricted cash | (479.1) | (1,120.1) | | Cash, cash equivalents and restricted cash, end of period | 2,891.4 | 1,878.5 | - Purchases of common stock for treasury increased to **$477.2 million** in YTD 2025 from **$279.9 million** in YTD 2024[17](index=17&type=chunk) - Repayments of debt significantly decreased to **$312.0 million** in YTD 2025 from **$4,850.1 million** in YTD 2024[17](index=17&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section details SS&C Technologies' non-GAAP financial measures and provides reconciliations to their GAAP equivalents for enhanced performance analysis [Overview of Non-GAAP Measures](index=2&type=section&id=Overview%20of%20Non-GAAP%20Measures) SS&C utilizes various non-GAAP financial measures, including adjusted revenue, operating income, EBITDA, net income, and diluted EPS, to provide investors with additional insights into the company's underlying operational performance - Non-GAAP measures like adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income, and adjusted diluted earnings per share are used to evaluate business performance and provide useful information to investors[8](index=8&type=chunk)[19](index=19&type=chunk)[22](index=22&type=chunk) - These non-GAAP measures are not recognized under GAAP and should not be considered alternatives to GAAP measures, nor are they necessarily comparable to similarly titled measures presented by other companies[19](index=19&type=chunk)[22](index=22&type=chunk)[27](index=27&type=chunk) - Adjustments typically include amortization of intangible assets, stock-based compensation, purchase accounting adjustments, and other non-recurring or non-operational expenses[22](index=22&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk) [Adjusted Revenues Reconciliation](index=9&type=section&id=Adjusted%20Revenues%20Reconciliation) The reconciliation of GAAP revenues to adjusted revenues primarily accounts for purchase accounting adjustments and the impact of ASC 606 adoption, resulting in slightly higher adjusted revenue figures for both Q2 and YTD 2025 Reconciliation of Revenues to Adjusted Revenues | (in millions) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :-------------------------------- | :-------- | :-------- | :---------- | :---------- | | Revenues (GAAP) | $1,536.8 | $1,451.5 | $3,050.7 | $2,886.5 | | ASC 606 adoption impact | — | (0.7) | — | (1.5) | | Purchase accounting adjustments impact on revenue | 1.0 | 1.6 | 1.9 | 3.2 | | Adjusted revenues | $1,537.8 | $1,452.4 | $3,052.6 | $2,888.2 | Breakdown of Adjusted Revenues by Service Type | (in millions) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :-------------------------- | :-------- | :-------- | :---------- | :---------- | | Adjusted Software-enabled services | $1,268.7 | $1,193.3 | $2,539.5 | $2,381.8 | | Adjusted License, maintenance and related | $269.1 | $259.1 | $513.1 | $506.4 | | Total adjusted revenues | $1,537.8 | $1,452.4 | $3,052.6 | $2,888.2 | [Adjusted Operating Income Reconciliation](index=10&type=section&id=Adjusted%20Operating%20Income%20Reconciliation) Adjusted operating income is derived from GAAP operating income by adding back non-cash expenses like amortization of intangible assets and stock-based compensation, as well as acquisition-related costs and restructuring charges, providing a clearer view of operational profitability Reconciliation of Operating Income to Adjusted Operating Income | (in millions) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--------------------------------------- | :-------- | :-------- | :---------- | :---------- | | Operating income (GAAP) | $344.5 | $327.6 | $702.4 | $660.5 | | Amortization of intangible assets | 157.0 | 149.1 | 310.0 | 296.7 | | Stock-based compensation | 60.2 | 50.6 | 112.9 | 95.7 | | Purchase accounting adjustments | 2.4 | 3.1 | 4.5 | 6.1 | | Acquisition related | 1.7 | 0.3 | 3.0 | 1.1 | | Facilities and workforce restructuring | 17.1 | 7.4 | 24.2 | 19.6 | | Adjusted operating income attributable to SS&C common stockholders | $583.5 | $541.7 | $1,158.8 | $1,081.7 | [EBITDA and Adjusted Consolidated EBITDA Reconciliation](index=11&type=section&id=EBITDA%20and%20Adjusted%20Consolidated%20EBITDA%20Reconciliation) The reconciliation from net income to Adjusted Consolidated EBITDA highlights the company's ability to service debt by adding back non-cash and non-operating expenses, showing a robust increase in Adjusted Consolidated EBITDA for Q2 and YTD 2025 Reconciliation of Net Income to Adjusted Consolidated EBITDA | (in millions) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--------------------------------------- | :-------- | :-------- | :---------- | :---------- | | Net income (GAAP) | $181.1 | $190.7 | $394.3 | $348.7 | | Interest expense, net | 105.5 | 113.3 | 210.7 | 229.3 | | Provision for income taxes | 58.4 | 13.8 | 106.5 | 80.5 | | Depreciation and amortization | 174.9 | 167.5 | 345.7 | 333.0 | | EBITDA | 519.9 | 485.3 | 1,057.2 | 991.5 | | Stock-based compensation | 60.2 | 50.6 | 112.9 | 95.7 | | Facilities and workforce restructuring | 17.1 | 7.5 | 24.2 | 19.7 | | Consolidated EBITDA | $601.3 | $560.0 | $1,194.2 | $1,117.9 | | Adjusted Consolidated EBITDA attributable to SS&C common stockholders | $600.4 | $558.9 | $1,192.3 | $1,115.7 | [Adjusted Net Income and Adjusted Diluted EPS Reconciliation](index=12&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS%20Reconciliation) Adjusted net income and diluted EPS are presented to reflect operational performance by excluding non-operational items such as amortization of intangibles, stock-based compensation, and the tax effects of these adjustments, showing a higher and growing profitability metric Reconciliation of Net Income and Diluted EPS to Adjusted Measures | (in millions, except per share data) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--------------------------------------- | :-------- | :-------- | :---------- | :---------- | | GAAP – Net income | $181.1 | $190.7 | $394.3 | $348.7 | | Amortization of intangible assets | 157.0 | 149.1 | 310.0 | 296.7 | | Stock-based compensation | 60.2 | 50.6 | 112.9 | 95.7 | | Loss on extinguishment of debt | — | 27.7 | 0.9 | 28.8 | | Purchase accounting adjustments | 2.4 | 3.1 | 4.5 | 6.1 | | Facilities and workforce restructuring | 17.1 | 7.5 | 24.2 | 19.7 | | Income tax effect | (57.6) | (86.5) | (125.6) | (121.1) | | Adjusted net income attributable to SS&C common stockholders | $366.0 | $332.1 | $732.4 | $668.4 | | Adjusted diluted earnings per share attributable to SS&C common stockholders | $1.45 | $1.32 | $2.89 | $2.65 | | GAAP diluted earnings per share attributable to SS&C common stockholders | $0.72 | $0.75 | $1.55 | $1.38 | - An estimated effective tax rate of **24%** was used for Q2 and YTD 2025, and **23.1%** for Q2 and YTD 2024, to adjust the provision for income taxes in computing adjusted net income[30](index=30&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) This section provides details regarding the Q2 2025 earnings call and important disclaimers about forward-looking statements [Earnings Call & Forward-Looking Statements](index=3&type=section&id=Earnings%20Call%20%26%20Forward-Looking%20Statements) This section provides details for the Q2 2025 earnings call and includes a comprehensive disclaimer regarding forward-looking statements, emphasizing inherent risks and uncertainties - The Q2 2025 earnings call was scheduled for **July 23, 2025, at 5:00 p.m. eastern time**, with dial-in and webcast replay information provided[9](index=9&type=chunk) - Forward-looking statements are subject to various risks and uncertainties, including economic conditions, acquisition benefits, customer consolidation, market activity, cyber-attacks, regulatory changes, and substantial indebtedness[9](index=9&type=chunk) - Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of their date and are not subject to updates unless required by law[9](index=9&type=chunk)

Core Viewpoint - SS&C Technologies (SSNC) is expected to report quarterly earnings of $1.39 per share, reflecting a year-over-year increase of 9.5%, with revenues projected at $1.52 billion, a 4.5% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating stability in analysts' projections [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts forecast 'Adjusted Revenues- Software-enabled services' to reach $1.27 billion, indicating a year-over-year change of +6.3% [5]. - The consensus estimate for 'Revenues- License, maintenance and related' is $264.85 million, reflecting a year-over-year change of +2.2% [5]. - 'Adjusted Revenues- License, maintenance and related' is expected to be $252.69 million, showing a decline of -2.5% from the prior-year quarter [5]. Stock Performance - Over the past month, SS&C Technologies shares have recorded returns of +5%, compared to the Zacks S&P 500 composite's +5.4% change, suggesting performance alignment with the overall market [6].

Summary of SS&C (SSNC) 2025 Conference Call Company Overview - **Company**: SS&C Technologies Holdings, Inc. (SSNC) - **Industry**: Financial Services, specifically focusing on fund administration, IT services, and healthcare technology Key Points and Arguments Business Performance and Demand - SS&C has a strong position in fund administration, being the largest provider globally, which is essential for clients regardless of macroeconomic conditions [3][4] - The company experiences macroeconomic effects primarily in transaction-oriented businesses, such as order management systems, which are influenced by market volatility [4][10] - Demand remains healthy across most markets, with a full pipeline of opportunities and a competitive edge in technology and service offerings [11][12] Revenue and Growth Insights - Organic growth for Q1 was reported at 5.1%, with recurring financials at 5.9%, while Q2 guidance is around 2.5% [20][22] - The slowdown in Q2 is attributed to seasonal factors, with expectations for stronger performance in the latter half of the year due to previously sold deals and acquisitions [22][23] - The private markets segment within fund administration is growing over 10%, indicating a robust appetite for private equity and credit [29][31] Competitive Landscape - SS&C competes with large custodian banks and smaller fintech startups, leveraging its ability to innovate rapidly compared to heavily regulated organizations [13][15] - The company is well-positioned to displace outdated systems within client organizations, as many clients are reluctant to change from long-standing internal systems [16][19] Healthcare Segment - The healthcare business is expected to show flattish to slightly positive growth, with a focus on new platforms like DomaneRx, which has processed over 200 million claims [47][48] - The healthcare segment is seen as a smaller part of SS&C's overall business but with significant growth potential [56] Margin Expansion and Efficiency - SS&C has historically achieved margin expansion and continues to identify opportunities for improvement through technology deployment [57][59] - The acquisition of Blue Prism has allowed the company to enhance operational efficiency, saving approximately 2,500 positions, which is about 10% of the workforce [58][59] M&A Activity and Future Outlook - SS&C is actively looking for acquisition opportunities that align with its growth strategy, particularly in areas that can enhance its service offerings [79] - The company has announced a stock buyback program, indicating confidence in its stock and future performance [79] Market Opportunities - SS&C sees potential in underserved markets like Australia and the Middle East, where there is a demand for sophisticated technology and services [34][43] - The company is optimistic about expanding its presence in these regions, leveraging its existing expertise and client relationships [35][39] Additional Important Insights - The competitive environment in Australia includes custodial banks and independent firms, with SS&C's combined service and technology offering being a key differentiator [42] - The healthcare technology landscape is characterized by outdated systems, providing SS&C with an opportunity to introduce modern solutions [53][55] - The company emphasizes the importance of providing high-value, mission-critical services, which are less sensitive to pricing pressures from clients [71][72]

Summary of SS&C Technologies FY Conference Call (June 04, 2025) Company Overview - **Company**: SS&C Technologies (SSNC) - **Industry**: Financial Services Software and Outsourcing Solutions - **Market Cap**: Approximately $20 billion - **Enterprise Value**: Approximately $26 billion - **Employees**: 27,000 - **Clients**: Over 22,000 across 35 countries - **Revenue**: Expected to be around $6 billion in 2025 [4][5] Core Business Insights - **Business Units**: SS&C operates six business units, with 75% of revenue generated from three main units: - **GlobeOp**: Focused on alternative assets, hedge funds, and private markets [6] - **Transfer Agency Services**: Contributes about 25% of revenue [6] - **Wealth and Investment Technology (WIT)**: Provides software licenses across various segments [7] - **Key Metrics**: - Over $4 billion in Assets Under Administration (AUA) [5] - 45 million accounts on the transfer agency platform [5] - 500 million healthcare claims processed [5] - **Revenue Retention**: Strong at 97%, indicating high client stickiness [13][22] Financial Performance - **Organic Growth**: Projected organic growth rate of approximately 4.5% for the full year [17] - **EBITDA Growth**: Grew by over 6% with margin expansion of about 30 basis points [11] - **Earnings Per Share (EPS)**: Expected growth of over 8% [12] - **Cash Flow**: Cash flow from operations increased by over 51% [12] - **Debt Management**: Leverage ratio reduced to approximately 2.7 times, nearing investment-grade territory [29] Strategic Initiatives - **Research and Development**: Continuous reinvestment in R&D to drive long-term growth [16][17] - **Mergers and Acquisitions (M&A)**: Focus on acquiring businesses that enhance organic growth and maintain price discipline [24][25] - **Capital Allocation**: Share repurchase program increased by 50%, with a new authorization of $1.5 billion [27][28] - **International Growth**: Expansion into international markets, particularly with the Insignia project in Australia [21][41] Market Dynamics and Guidance - **Market Uncertainty**: Acknowledgment of economic uncertainty but no significant slowdown in client commitments [38][39] - **Second Quarter Guidance**: Organic growth forecast of 2.5% for Q2, considered conservative [38] - **Future Outlook**: Confidence in stronger growth in the second half of the year, particularly in Q4 due to historical trends [44][45] Additional Insights - **Client Service Enhancements**: Focus on improving customer service to increase retention rates [22] - **Lift Outs**: Strategy of outsourcing and rebadging employees to enhance service efficiency [22][23] - **Pricing Strategy**: Potential to increase pricing from the traditional 1% to 1.5% as part of growth strategy [21] This summary encapsulates the key points discussed during the SS&C Technologies FY Conference Call, highlighting the company's performance, strategic initiatives, and market outlook.

Summary of SS&C (SSNC) FY Conference Call - May 13, 2025 Company Overview - **Company**: SS&C Technologies Holdings, Inc. (SSNC) - **Industry**: Wealth Investment Technology (WIT) Key Points Competitive Environment - The wealth investment technology segment is divided into four categories: insurance market, asset management, alternative investments, and wealth platforms [2][3] - SS&C's primary products include: - **Singularity** for insurance - **Genesis** for asset management - **Geneva** for alternative investments, considered the industry gold standard [4][5][6] - The asset management space is noted as the most competitive, with a focus on integrating offerings with Eze for seamless service [5][6][7] Product Integration and Market Strategy - SS&C has simplified its go-to-market strategy by consolidating product offerings, leading to more efficient R&D spending [8][9] - The integration of multiple SS&C products enhances competitiveness, particularly in the retail alternatives market, which is experiencing significant growth [10] Growth Trends and Revenue Insights - The transition to cloud-based solutions is a key growth driver, with clients often seeing revenue increases of 1.5 to 2.5 times upon upgrading [11][12] - The company serves a diverse client base, with a concentration on larger organizations seeking complex solutions [13][14] - Price increases are projected at approximately 1.5% for the year, consistent with previous years [16][17] Alternatives Business Performance - Approximately 60% of the alternatives business revenue is tied to hedge funds, which have shown mid-single-digit growth [20][21] - The growth of private markets, including private credit and private equity, is contributing to revenue stability, with private credit now comprising over 25% of the alternatives business [22][23] Retirement Segment and Acquisitions - The acquisition of Insignia is expected to enhance SS&C's presence in Australia and the superannuation market, with projected revenue contributions of $35 million to $70 million in the second half of the year [26][27] - The retirement segment is anticipated to achieve low to mid-single-digit organic growth as it captures more market share [29] Digital Transformation and Automation - SS&C has implemented over 3,000 digital workers, resulting in an estimated $100 million in cost savings by reducing the need for human resources in non-value-added tasks [30][31] - The company is focusing on integrating intelligent automation and RPA with AI to enhance operational efficiency [34][35] Market Conditions and Future Outlook - The M&A market has shown weaker deal flow, impacting revenue generation, but SS&C continues to win mandates and expand into capital markets [36][37] - The healthcare division is leveraging modern technology to reduce costs and improve service delivery, with significant impacts expected from upcoming contracts [39][40][41] Financial Guidance and Capital Allocation - SS&C maintains a conservative outlook for organic growth while raising overall revenue guidance, reflecting strong Q1 performance and favorable FX rates [46][47] - The company prefers debt financing for acquisitions, with historical leverage levels around five times [51][52][53] International Expansion - SS&C sees opportunities for growth in international markets, particularly in Europe and Australia, while continuing to expand its North American operations [55][56] Employee Incentives and Shareholder Value - The company is shifting from stock options to RSUs for employee compensation, aligning with industry practices to retain talent [59][60] - There is a preference for share repurchases over dividends, reflecting investor sentiment and capital allocation strategies [62] This summary encapsulates the key insights and strategic directions discussed during the SS&C FY Conference Call, highlighting the company's competitive positioning, growth strategies, and market outlook.

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, show an increase in total assets to $20.4 billion and total equity to $6.86 billion, with net income rising to $213.0 million from $157.6 million in the prior-year period, driven by higher revenues, and strong cash flow from operations at $272.2 million Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $515.0 | $567.1 | | Goodwill | $9,283.9 | $9,218.1 | | Total assets | $20,404.9 | $19,044.7 | | **Liabilities & Equity** | | | | Total long-term debt | $6,837.0 | $6,989.6 | | Total liabilities | $13,545.1 | $12,435.6 | | Total equity | $6,859.8 | $6,609.1 | Income Statement Highlights (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $1,513.9 | $1,435.0 | | Gross profit | $747.1 | $707.2 | | Operating income | $357.9 | $332.9 | | Net income attributable to SS&C | $213.0 | $157.6 | | Diluted EPS | $0.84 | $0.62 | Cash Flow Summary (in millions) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $272.2 | $180.5 | | Net cash used in investing activities | $(63.3) | $(50.6) | | Net cash provided by (used in) financing activities | $935.3 | $(835.9) | - The company operates as a single operating and reportable segment, with the Chief Operating Decision Maker (CODM) reviewing financial information on a consolidated basis[19](index=19&type=chunk) - In February 2025, the company acquired FPS Trust Company for approximately **$6.0 million**[35](index=35&type=chunk) - Goodwill increased to **$9,283.9 million** at March 31, 2025, from **$9,218.1 million** at year-end 2024, primarily due to acquisitions and foreign currency translation effects[36](index=36&type=chunk) - During Q1 2025, the company repurchased **2.4 million shares** of common stock for approximately **$206.9 million** and paid quarterly cash dividends of **$0.25 per share**, totaling **$61.6 million**[41](index=41&type=chunk)[42](index=42&type=chunk) - The effective tax rate for Q1 2025 was **18.4%**, a significant decrease from **29.7%** in Q1 2024, primarily due to increased recognition of windfall tax benefits from stock awards and changes in the jurisdictional mix of income[53](index=53&type=chunk) Revenue Disaggregation by Source (in millions) | Revenue Source | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Software-enabled services | $1,269.9 | $1,187.7 | | Maintenance and term licenses | $213.2 | $218.8 | | Professional services | $23.9 | $23.8 | | Perpetual licenses | $6.9 | $4.7 | | **Total** | **$1,513.9** | **$1,435.0** | Revenue Disaggregation by Geography (in millions) | Geography | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | United States | $1,036.5 | $992.3 | | United Kingdom | $177.4 | $165.5 | | Europe (ex-UK), MEA | $129.6 | $115.9 | | Asia-Pacific | $85.4 | $73.3 | | Canada | $56.3 | $59.6 | | Americas (ex-US/Canada) | $28.7 | $28.4 | | **Total** | **$1,513.9** | **$1,435.0** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 5.5% year-over-year revenue growth in Q1 2025 to $72.8 million in organic growth and a $13.0 million contribution from acquisitions, while operating expenses increased by 4.0%, net interest expense decreased, and the company maintained strong liquidity with $272.2 million in cash from operations and compliance with all debt covenants at a 1.57x consolidated net secured leverage ratio Revenue Change Analysis (Q1 2025 vs Q1 2024) | Component | Change (in millions) | | :--- | :--- | | Organic Revenue Growth | $72.8 | | Acquisition Contribution | $13.0 | | Foreign Currency Impact | $(6.9) | | **Total Revenue Increase** | **$78.9** | - Software-enabled services revenue grew **6.9% YoY**, driven by **$74.3 million** in organic growth and **$13.0 million** from acquisitions[62](index=62&type=chunk) - License, maintenance and related revenues decreased **1.3% YoY**, due to a **$1.5 million** decline in organic revenues and a **$1.8 million** unfavorable foreign currency impact[62](index=62&type=chunk) - Net interest expense decreased to **$105.2 million** from **$116.0 million** in the prior year, primarily due to a lower average interest rate (**6.09%** in Q1 2025 vs. **6.86%** in Q1 2024)[68](index=68&type=chunk) - The effective tax rate dropped to **18.4%** in Q1 2025 from **29.7%** in Q1 2024, mainly due to higher windfall tax benefits from stock awards and a favorable change in the geographic mix of income[71](index=71&type=chunk) - Net cash from operating activities was **$272.2 million** for Q1 2025, an increase from **$180.5 million** in Q1 2024[76](index=76&type=chunk) - Investing activities used **$63.3 million**, primarily for capitalized software (**$47.0 million**) and business acquisitions (**$6.2 million**)[77](index=77&type=chunk) - Financing activities provided **$935.3 million**, driven by a **$1.2 billion** net increase in client fund obligations and **$201.8 million** from stock option exercises, offset by debt repayments (**$155.0 million**), stock repurchases (**$206.9 million**), and dividends (**$61.6 million**)[78](index=78&type=chunk) Debt Structure at March 31, 2025 (in millions) | Debt Instrument | Amount Outstanding | | :--- | :--- | | Term B-8 Loans | $3,350.0 | | Term A-9 Loans | $790.0 | | 5.5% Senior Notes | $2,000.0 | | 6.5% Senior Notes | $750.0 | Consolidated EBITDA Reconciliation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $213.2 | $158.0 | | EBITDA | $537.3 | $506.2 | | **Consolidated EBITDA** | **$592.9** | **$557.9** | - The company was in compliance with its debt covenants, reporting a maximum consolidated net secured leverage ratio of **1.57x**, significantly below the required **6.25x**[100](index=100&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates, equity prices, and foreign currency exchange rates, with a 100 basis point increase in interest rates potentially increasing annual interest expense by approximately $41.4 million on its variable-rate debt, and a 10% change in equity investments impacting net income by about $3.1 million - A **100 basis point** change in interest rates on client cash balances (average **$2.38 billion**) would impact annual net income by approximately **$11.9 million**[104](index=104&type=chunk) - On its **$4.14 billion** of variable-rate debt, a **100 basis point** increase in interest rates would increase annual interest expense by approximately **$41.4 million**[105](index=105&type=chunk) - The company has **$42.0 million** in equity investments subject to price risk; a **10%** change in their fair value would impact net income by approximately **$3.1 million**, net of tax[107](index=107&type=chunk) - Approximately **21%** of revenues in Q1 2025 were from currencies other than the USD, primarily the British pound, exposing the company to foreign currency exchange rate risk[108](index=108&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2025, and concluded they were effective at a reasonable assurance level, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[110](index=110&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[111](index=111&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings arising from the normal course of business, and management believes that the final outcome of these proceedings will not have a material adverse effect on the company's financial condition, results of operations, or cash flows - The company states that it is not involved in any litigation or proceedings that would have a **material adverse effect** on the business[55](index=55&type=chunk)[115](index=115&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to the risk factors disclosed in the 2024 Form 10-K have occurred as of the filing date of this report[116](index=116&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased 2.4 million shares of common stock for approximately $206.9 million under its publicly announced stock repurchase program, with $338.1 million remaining available for future repurchases as of March 31, 2025 Common Stock Repurchases in Q1 2025 | Period | Total Shares Purchased (millions) | Average Price Paid per Share | Value of Shares Remaining for Purchase (millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | $545.0 | | Feb 2025 | 1.8 | $88.42 | $386.2 | | Mar 2025 | 0.6 | $83.47 | $338.1 | | **Total** | **2.4** | | | - The stock repurchase program was authorized in July 2024, allowing for the purchase of up to **$1 billion** of outstanding common stock[118](index=118&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including CEO and CFO certifications (pursuant to Sarbanes-Oxley Act Sections 302 and 906) and Inline XBRL documents - The report includes required certifications from the CEO and CFO under the Sarbanes-Oxley Act of 2002[122](index=122&type=chunk)

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q1 2025 Earnings Conference Call April 24, 2025 5:00 PM ET Company Participants Chand Madaka - Investor Relations Bill Stone - Chairman and Chief Executive Officer Rahul Kanwar - President and Chief Operating Officer Brian Schell - Chief Financial Officer Conference Call Participants Jeff Schmitt - William Blair Peter Heckmann - D.A. Davidson Companies Dan Perlin - RBC Capital Markets Surinder Thind - Jefferies Michael Infante - Morgan Stanley Andrew Schmidt - ...