FactSet(FDS) - 2025 Q2 - Quarterly Results

Financial Performance - Q2 GAAP revenues reached $570.7 million, a 4.5% increase from Q2 2024, driven by growth in wealth and institutional buy-side clients [4]. - Organic Q2 ASV was $2,276.2 million, reflecting a year-over-year growth of 4.1% or $90.7 million [4]. - GAAP diluted EPS increased by 3.0% to $3.76, while adjusted diluted EPS rose 1.4% to $4.28 compared to the prior year [4]. - FactSet's revenues for the three months ended February 28, 2025, were $570,660,000, representing a 4.5% increase from $545,945,000 for the same period in 2024 [28]. - Organic revenues for the same period were $567,985,000, reflecting a 4.0% growth compared to the previous year [33]. - The company's net income for the six months ended February 28, 2025, was $294,882,000, up from $289,495,000 in the prior year [31]. - Net income for the three months ended February 28, 2025, was $144,860, a 2.8% increase from $140,940 in the same period of 2024 [36]. - Adjusted net income rose to $164,976, reflecting a 1.2% increase from $163,067 year-over-year [36]. - Free cash flow increased by 23.3% to $150,219 compared to $121,881 in the prior year [39]. Guidance and Projections - Fiscal 2025 guidance anticipates organic ASV growth of $100 million to $130 million, equating to approximately 4.4% to 5.8% [4]. - Adjusted diluted EPS is expected to remain unchanged in the range of $16.80 to $17.40, while GAAP diluted EPS is projected to decrease to $14.80 to $15.40 from a previous range of $15.10 to $15.70 [24]. - The company expects annual revenues for fiscal 2025 to be between $2,305 million and $2,325 million [38]. - Adjusted diluted earnings per share (EPS) is projected to be between $17.40 and $16.80 for fiscal 2025 [38]. - Adjusted operating margin is expected to range from 36.0% to 37.0% for fiscal 2025 [38]. Client and User Metrics - Client count as of February 28, 2025, was 8,645, with a net increase of 396 clients in the past three months [16]. - User count reached 219,141, marking a net increase of 874 users, primarily in wealth management [16]. - Annual ASV retention exceeded 95%, with client retention at 91% [16]. - The percentage of ASV from buy-side clients was 82.3% in Q2'25, showing a slight increase from 82.1% in Q1'25 [42]. Investments and Acquisitions - FactSet repurchased 136,714 shares for $64.4 million at an average price of $470.70 during Q2 2025 [13]. - The acquisition of LiquidityBook enhances FactSet's capabilities in order management and investment book of record [16]. - The company has made significant investments in acquisitions, with $342,461,000 spent on acquiring businesses in the current period [31]. Financial Position - FactSet's total assets increased to $4,241,442,000 as of February 28, 2025, compared to $4,055,040,000 on August 31, 2024 [30]. - Total stockholders' equity increased to $2,056,917,000 as of February 28, 2025, from $1,912,460,000 in the previous period [30]. - FactSet's cash and cash equivalents decreased to $278,548,000 as of February 28, 2025, from $422,979,000 at the beginning of the period [30]. - The company reported cash flows from operating activities of $260,327,000 for the six months ended February 28, 2025, down from $298,942,000 in the same period last year [31]. Operating Performance - Operating income for the three months ended February 28, 2025, was $185,492, a 2.0% increase from $181,942 in the same period of 2024 [36]. - The operating margin for the three months ended February 28, 2025, was 32.5%, down from 33.3% in the previous year [36].