SS&C(SSNC) - 2025 Q2 - Quarterly Report

FORM 10-Q Cover Page - SS&C Technologies Holdings, Inc. submitted its quarterly report (Form 10-Q) for the period ended June 30, 2025[2] | Metric | Detail | | :--- | :--- | | Company Name | SS&C TECHNOLOGIES HOLDINGS, INC. | | Jurisdiction of Incorporation | Delaware | | File Number | 001-34675 | | Reporting Period | As of June 30, 2025 | | Ticker Symbol | SSNC | | Registered Exchange | Nasdaq Global Select Market | | Shares Outstanding (as of July 23, 2025) | 244,220,641 shares | Table of Contents PART I. FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flow statements, and equity changes, reflecting financial position and operating results for the periods ended June 30, 2025 Condensed Consolidated Balance Sheets | Metric (Millions of USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 480.3 | 567.1 | | Client receivables and funds held on behalf of clients | 2,997.8 | 3,162.2 | | Accounts receivable, net | 940.2 | 902.0 | | Contract assets | 56.4 | 47.6 | | Prepaid expenses and other current assets | 183.1 | 179.8 | | Restricted cash and cash equivalents | 2.6 | 3.7 | | Total Current Assets | 4,660.4 | 4,862.4 | | Property, plant and equipment, net | 311.9 | 299.6 | | Operating lease right-of-use assets | 211.8 | 190.6 | | Investments | 174.8 | 177.4 | | Unconsolidated affiliates | 344.6 | 328.4 | | Contract assets (non-current) | 129.7 | 110.2 | | Goodwill | 9,420.9 | 9,218.1 | | Intangible assets and other assets, net | 3,730.1 | 3,858.0 | | Total Assets | 18,984.2 | 19,044.7 | | Liabilities and Equity | | | | Current liabilities: | | | | Current portion of long-term debt | 20.0 | 20.0 | | Client fund obligations | 2,997.8 | 3,162.2 | | Accounts payable | 55.2 | 70.2 | | Income taxes payable | — | 23.0 | | Accrued employee compensation and benefits | 235.0 | 311.5 | | Accrued interest | 31.6 | 31.6 | | Other accrued expenses | 276.2 | 249.7 | | Deferred revenue | 485.9 | 486.1 | | Total Current Liabilities | 4,101.7 | 4,354.3 | | Long-term debt, net | 6,803.4 | 6,989.6 | | Operating lease liabilities | 194.0 | 175.1 | | Other long-term liabilities | 180.6 | 191.1 | | Deferred income taxes | 695.2 | 725.5 | | Total Liabilities | 11,974.9 | 12,435.6 | | Stockholders' Equity | | | | Common stock | 2.9 | 2.8 | | Additional paid-in capital | 6,209.4 | 5,901.6 | | Accumulated other comprehensive loss | (240.9) | (541.2) | | Retained earnings | 3,909.9 | 3,641.9 | | Cost of common stock in treasury | (2,946.7) | (2,470.2) | | Total SS&C Stockholders' Equity | 6,934.6 | 6,534.9 | | Noncontrolling interests | 74.7 | 74.2 | | Total Equity | 7,009.3 | 6,609.1 | | Total Liabilities and Equity | 18,984.2 | 19,044.7 | - As of June 30, 2025, total assets were $18.9842 billion, a slight decrease from $19.0447 billion as of December 31, 2024. Total liabilities decreased from $12.4356 billion to $11.9749 billion, while stockholders' equity increased from $6.6091 billion to $7.0093 billion[10] Condensed Consolidated Statements of Comprehensive Income | Metric (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 1,536.8 | 1,451.5 | 3,050.7 | 2,886.5 | | Software support 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 interest expense | (105.5) | (113.3) | (210.7) | (229.3) | | Net equity in earnings of unconsolidated affiliates | 1.6 | 17.3 | 3.9 | 19.6 | | Loss on extinguishment of debt | — | (27.7) | (0.9) | (28.8) | | Income Before Income Taxes | 239.5 | 204.5 | 500.8 | 429.2 | | Provision for income taxes | 58.4 | 13.8 | 106.5 | 80.5 | | Net Income | 181.1 | 190.7 | 394.3 | 348.7 | | Net income attributable to SS&C common stockholders | 180.8 | 190.3 | 393.8 | 347.9 | | Basic Earnings Per Share | 0.74 | 0.77 | 1.60 | 1.41 | | Diluted Earnings Per Share | 0.72 | 0.75 | 1.55 | 1.38 | | Comprehensive Income | 388.9 | 193.5 | 694.6 | 303.9 | - For the three months ended June 30, 2025, total revenues increased by 5.9% to $1.5368 billion, but net income decreased by 5.0% to $181.1 million year-over-year. Diluted earnings per share decreased from $0.75 to $0.72. For the six months ended June 30, 2025, total revenues increased by 5.7% to $3.0507 billion, net income increased by 13.1% to $394.3 million, and diluted earnings per share increased from $1.38 to $1.55[12] Condensed Consolidated Statements of Cash Flows | Cash Flow Activities (Millions of USD) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | | 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) | | Effect of exchange rate changes | 11.7 | (3.9) | | Net decrease in cash, cash equivalents and restricted cash | (479.1) | (1,120.1) | | Cash, cash equivalents and restricted cash at beginning of period | 3,370.5 | 2,998.6 | | Cash, cash equivalents and restricted cash at end of period | 2,891.4 | 1,878.5 | - For the six months ended June 30, 2025, net cash provided by operating activities was $645.1 million, an increase from $565.4 million in the prior year period. Net cash used in investing activities was $148.1 million, primarily for capitalized software development and capital expenditures. Net cash used in financing activities was $987.8 million, mainly for common stock repurchases, debt repayments, and dividend payments[14][86][87][88] Condensed Consolidated Statements of Stockholders' Equity - For the six months ended June 30, 2025, total stockholders' equity increased from $6.6091 billion as of December 31, 2024, to $7.0093 billion. Key changes include $393.8 million in net income, a $300.3 million increase from foreign currency translation adjustments, $112.9 million in stock-based compensation expense, and $193.1 million net from stock option exercises, partially offset by $476.5 million in common stock repurchases and $123.9 million in dividends paid[17] Notes to Condensed Consolidated Financial Statements Note 1—Basis of Presentation and Principles of Consolidation - The financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and are consistent with the 2024 Form 10-K annual report. The company operates in one operating and reportable segment, with the Chief Operating Decision Maker (CODM) using consolidated net income as the sole measure of segment profit or loss[19][21] - The company is evaluating the impact of ASU 2024-03 (Income Statement—Reporting Comprehensive Income—Disaggregation of Expenses Disclosure), which requires additional disclosures for specific expense categories and is effective for fiscal years beginning after December 15, 2026[23] Note 2—Property, Plant and Equipment, net | Category (Millions of USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Land | 38.1 | 36.7 | | Buildings and improvements | 268.2 | 256.6 | | Equipment, furniture and fixtures | 517.7 | 487.2 | | Total | 824.0 | 780.5 | | Less: Accumulated depreciation | (512.1) | (480.9) | | Property, plant and equipment, net | 311.9 | 299.6 | - For the six months ended June 30, 2025, depreciation expense was $35.7 million, and capitalized software development amortization expense was $71.0 million. For the same period in 2024, depreciation expense was $36.3 million, and amortization expense was $57.9 million[25] Note 3—Investments | Investment Category (Millions of USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unlisted equity securities | 124.1 | 124.1 | | Seed capital investments | 25.9 | 23.1 | | Listed equity securities | 19.8 | 21.6 | | Private equity fund partnership interests | 5.0 | 8.6 | | Total Investments | 174.8 | 177.4 | - For the six months ended June 30, 2025, unrealized losses on equity securities were $3.5 million, compared to unrealized gains of $0.2 million in the prior year period. The company measures investments using a three-tier fair value hierarchy, with money market funds and listed equity securities classified as Level 1[26][27][28] Note 4—Unconsolidated Affiliates | Affiliate | Ownership Percentage | Carrying Value as of June 30, 2025 (Millions of USD) | Carrying Value as of December 31, 2024 (Millions of USD) | | :--- | :--- | :--- | :--- | | Orbit Private Investments L.P. | 9.8% | 213.7 | 203.9 | | International Financial Data Services L.P. | 50.0% | 67.2 | 60.2 | | Broadway Square Partners, LLP | 50.0% | 51.8 | 52.2 | | Pershing Road Development Company, LLC | 50.0% | 9.9 | 10.1 | | Other unconsolidated affiliates | - | 2.0 | 2.0 | | Total | | 344.6 | 328.4 | - The company accounts for investments in unconsolidated affiliates using the equity method. For the six months ended June 30, 2025, net equity in earnings of unconsolidated affiliates was $3.9 million, a significant decrease from $19.6 million in the prior year period, primarily due to a $17.4 million adjustment gain from Orbit Private Investment L.P. in 2024[33][35] Note 5—Acquisitions - The company acquired FPS Trust Company for approximately $6 million in February 2025. Additionally, the company acquired Battea-Class Action Services, LLC in September 2024[37][64] Note 6—Goodwill | Change Item (Millions of USD) | Amount | | :--- | :--- | | Balance as of December 31, 2024 | 9,218.1 | | Acquisitions completed during the year | 6.0 | | Foreign currency exchange impact | 196.8 | | Balance as of June 30, 2025 | 9,420.9 | - As of June 30, 2025, the carrying value of goodwill was $9.4209 billion, an increase of $202.8 million from December 31, 2024, driven primarily by foreign currency exchange impact ($196.8 million) and acquisitions during the year ($6 million)[38] Note 7—Debt | Debt Category (Millions of USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Senior Secured Credit Facilities | 4,105.0 | 4,295.0 | | 5.5% Senior Notes (due 2027) | 2,000.0 | 2,000.0 | | 6.5% Senior Notes (due 2032) | 750.0 | 750.0 | | Unamortized original issue discount and debt issuance costs | (31.6) | (35.4) | | Total Debt | 6,823.4 | 7,009.6 | | Less: Current portion of long-term debt | 20.0 | 20.0 | | Long-term Debt, Net | 6,803.4 | 6,989.6 | - As of June 30, 2025, the company's total debt was $6.8234 billion, a decrease from $7.0096 billion as of December 31, 2024. The weighted average interest rate for the Senior Secured Credit Facilities was 6.23% as of June 30, 2025, down from 6.26% as of December 31, 2024. The company is in compliance with all financial and non-financial covenants[39][41] Note 8—Stockholders' Equity - The company's Board of Directors authorized a new stock repurchase program in May 2025, allowing for the repurchase of up to $1.5 billion of common stock. For the three and six months ended June 30, 2025, the company repurchased 3.4 million and 5.8 million shares of common stock, totaling $269.6 million and $476.5 million (including a 1% excise tax), respectively[43] - The company paid quarterly cash dividends of $0.25 per share in March and June 2025, totaling $122.5 million. Dividends paid in the prior year period were $0.24 per share, totaling $119.8 million[44] | Accumulated Other Comprehensive Loss (Millions of USD) | Balance as of December 31, 2024 | Net Current Period Other Comprehensive Income | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Foreign currency translation adjustments | (539.6) | 300.3 | (239.3) | | Defined benefit pension obligations | (1.6) | — | (1.6) | | Total Accumulated Other Comprehensive Loss | (541.2) | 300.3 | (240.9) | Note 9—Variable Interest Entity - The company holds an 80.2% interest in DomaniRx, LLC, which is consolidated as a variable interest entity (VIE). The company is the primary beneficiary of DomaniRx and has the power to direct its key activities that significantly affect its economic performance[47] | DomaniRx Assets and Liabilities (Millions of USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 145.1 | 155.2 | | Prepaid expenses and other current assets | 0.8 | 0.9 | | Intangible assets | 227.9 | 217.6 | | Other assets | 3.5 | 2.4 | | Other liabilities | 0.5 | 1.1 | Note 10—Revenues - Company revenues primarily derive from software support services, typically provided under one-to-five-year contracts with monthly or quarterly payments. Additionally, the company generates revenue from licensing software and selling maintenance services. Pricing is generally based on client assets under management, asset class complexity, transaction volumes, and service levels[49] | Revenue Source (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Software support services | 1,267.7 | 1,192.4 | 2,537.6 | 2,380.1 | | Maintenance and term licenses | 232.9 | 224.4 | 446.1 | 443.2 | | Professional services | 26.2 | 25.1 | 50.1 | 48.9 | | Perpetual licenses | 10.0 | 9.6 | 16.9 | 14.3 | | Total | 1,536.8 | 1,451.5 | 3,050.7 | 2,886.5 | | Revenue Geographic Distribution (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | United States | 1,034.6 | 1,015.4 | 2,071.1 | 2,007.7 | | United Kingdom | 195.8 | 155.8 | 373.2 | 321.3 | | Europe (excluding UK), Middle East and Africa | 130.6 | 118.8 | 260.2 | 234.7 | | Asia Pacific | 83.4 | 78.9 | 168.8 | 152.2 | | Canada | 57.6 | 54.7 | 113.9 | 114.3 | | Americas (excluding US and Canada) | 34.8 | 27.9 | 63.5 | 56.3 | | Total | 1,536.8 | 1,451.5 | 3,050.7 | 2,886.5 | Note 11—Stock-based Compensation | Stock-based Compensation Expense (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Cost of software support services | 21.2 | 17.7 | 38.6 | 33.1 | | Cost of license, maintenance and other related | 2.3 | 2.2 | 4.5 | 3.8 | | Selling and marketing | 10.1 | 9.3 | 19.2 | 17.0 | | Research and development | 8.5 | 7.8 | 16.1 | 14.0 | | General and administrative | 18.1 | 13.6 | 34.5 | 27.8 | | Total Stock-based Compensation Expense | 60.2 | 50.6 | 112.9 | 95.7 | - For the six months ended June 30, 2025, total stock-based compensation expense was $112.9 million, an increase from $95.7 million in the prior year period. As of June 30, 2025, there were 27.8 million stock options and stock appreciation rights (SARs) outstanding, and 5.7 million performance stock units (PSUs) and restricted stock units (RSUs) outstanding[53] Note 12—Income Taxes | Metric | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Provision for income taxes (Millions of USD) | 58.4 | 13.8 | 106.5 | 80.5 | | Effective Tax Rate | 24.4% | 6.7% | 21.3% | 18.8% | - For the three months ended June 30, 2025, the effective tax rate was 24.4%, higher than 6.7% in the prior year period. For the six months ended June 30, 2025, the effective tax rate was 21.3%, higher than 18.8% in the prior year period. The lower effective tax rate in 2024 was primarily due to the release of $40.8 million in uncertain tax position reserves and $5.7 million in tax refunds following an audit completion[54][80][81] - The company is evaluating the impact of the 'One Big Beautiful Bill Act' (OBBBA), enacted on July 4, 2025, which contains broad tax reform provisions, on its consolidated financial statements[58] Note 13—Earnings per Share | Metric | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to SS&C common stockholders (Millions of USD) | 180.8 | 190.3 | 393.8 | 347.9 | | Basic earnings per share | 0.74 | 0.77 | 1.60 | 1.41 | | Diluted earnings per share | 0.72 | 0.75 | 1.55 | 1.38 | | Basic weighted-average common shares outstanding (Millions of shares) | 244.9 | 246.2 | 245.4 | 246.6 | | Diluted weighted-average common shares and common stock equivalents outstanding (Millions of shares) | 252.2 | 252.3 | 253.5 | 252.7 | - For the three months ended June 30, 2025, basic earnings per share was $0.74 and diluted earnings per share was $0.72, both lower than the prior year period. For the six months ended June 30, 2025, basic earnings per share was $1.60 and diluted earnings per share was $1.55, both higher than the prior year period[55] Note 14—Commitments and Contingencies - The company does not believe that any litigation or legal proceedings to which it is a party will have a material adverse effect on the company or its business. Management believes that the ultimate outcome of all legal proceedings, in the aggregate, will not have a material adverse effect on the company's consolidated financial position, results of operations, or cash flows[56][123] Note 15—Subsequent Events - On July 21, 2025, the company announced it entered into a definitive agreement to acquire Colossus Topco Limited, the parent company of Calastone Limited, from a global private equity firm. The acquisition price is approximately £766 million (approximately $1.03 billion), and it is expected to close in the fourth quarter of 2025, subject to regulatory approvals[57] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's analysis of the company's financial condition, operating results, liquidity, and other factors that may affect future performance, discussing revenue, cost, and expense changes for the three and six months ended June 30, 2025, and detailing liquidity, capital resources, debt covenants, and recent accounting pronouncements Overview and Critical Accounting Estimates - Management's Discussion and Analysis aims to provide in-depth insights into the company's financial condition and results of operations and should be read in conjunction with the 2024 Form 10-K annual report. The company uses the term 'organic' to refer to businesses and operations calculated at constant currency for comparable prior year periods[59][60] - The company faces risks from macroeconomic conditions such as interest rates, inflation, capital market volatility, geopolitical tensions, and foreign currency exchange rate fluctuations. Critical accounting estimates include investments, intangible assets and goodwill, software capitalization, acquisition accounting, revenue recognition, stock-based compensation, and income taxes[61][62][65] Results of Operations - Revenues - Company revenues are primarily derived from software support services and license, maintenance, and related services. Fluctuations in software support services revenue are mainly influenced by client retention, new client acquisition, total client assets under management, and outsourced transaction volumes[63] | Revenue Source | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Software support services | 82.5% | 82.1% | 83.2% | 82.5% | | License, maintenance and related | 17.5% | 17.9% | 16.8% | 17.5% | | Total Revenues | 100.0% | 100.0% | 100.0% | 100.0% | | Revenue (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | Year-over-Year Change (%) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Software support services | 1,267.7 | 1,192.4 | 6.3% | 2,537.6 | 2,380.1 | 6.6% | | License, maintenance and related | 269.1 | 259.1 | 3.9% | 513.1 | 506.4 | 1.3% | | Total Revenues | 1,536.8 | 1,451.5 | 5.9% | 3,050.7 | 2,886.5 | 5.7% | - For the three months ended June 30, 2025, total revenues increased by $85.3 million (5.9%), primarily driven by organic growth of $50.9 million in SS&C GlobeOp fund administration, wealth and investment technology, global investor and distribution solutions, and intelligent automation and analytics businesses, as well as $20.9 million from acquisitions and $13.5 million from favorable foreign currency exchange impacts[66] Results of Operations - Cost of Revenues - Cost of software support services revenue primarily includes personnel costs for service delivery and amortization of certain intangible assets. Cost of license, maintenance, and other related revenue mainly includes personnel costs for maintenance contract services, implementation, conversion, training services, and intangible asset amortization[68] | Cost of Revenues as a Percentage of Revenues | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Cost of software support services | 54.7% | 54.8% | 53.6% | 54.1% | | Cost of license, maintenance and related | 39.4% | 38.3% | 40.1% | 38.2% | | Total Cost of Revenues | 52.0% | 51.9% | 51.4% | 51.3% | | Gross Margin | 48.0% | 48.1% | 48.6% | 48.7% | | Cost of Revenues (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | Year-over-Year Change (%) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cost of software support services | 693.9 | 654.0 | 6.1% | 1,361.2 | 1,287.8 | 5.7% | | Cost of license, maintenance and related | 106.0 | 99.2 | 6.9% | 205.5 | 193.2 | 6.4% | | Total Cost of Revenues | 799.9 | 753.2 | 6.2% | 1,566.7 | 1,481.0 | 5.8% | - For the three months ended June 30, 2025, total cost of revenues increased by $46.7 million (6.2%), primarily due to $30.9 million in organic cost increases, $10.5 million from acquisitions, and $5.3 million from unfavorable foreign currency exchange impacts. The increased resource requirements for organic growth were the main drivers of the cost increase[70] Results of Operations - Operating Expenses - Operating expenses include selling and marketing expenses (personnel costs, commissions, travel, intangible asset amortization), research and development expenses (personnel costs for product enhancements and new software development), and general and administrative expenses (management, accounting, finance, human resources, and professional services fees)[72] | Operating Expenses as a Percentage of Total Revenues | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Selling and marketing | 9.9% | 9.8% | 10.0% | 9.8% | | Research and development | 8.3% | 8.9% | 8.4% | 8.7% | | General and administrative | 7.3% | 6.8% | 7.2% | 7.3% | | Total Operating Expenses | 25.5% | 25.5% | 25.6% | 25.8% | | Operating Expenses (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | Year-over-Year Change (%) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Selling and marketing | 152.4 | 142.6 | 6.9% | 304.7 | 283.5 | 7.5% | | Research and development | 128.1 | 128.7 | (0.5)% | 257.2 | 249.6 | 3.0% | | General and administrative | 111.9 | 99.4 | 12.6% | 219.7 | 211.9 | 3.7% | | Total Operating Expenses | 392.4 | 370.7 | 5.9% | 781.6 | 745.0 | 4.9% | - For the three months ended June 30, 2025, operating expenses increased by $21.7 million (5.9%), primarily due to $14.4 million in organic operating expense increases, $3.9 million from unfavorable foreign currency exchange impacts, and $3.4 million from acquisitions. Increased resource requirements for organic growth were the primary reason for the increase in operating expenses[75] Results of Operations - Comparison of the Three and Six Months Ended June 30, 2025 and 2024 for Interest, Taxes and Other - For the three and six months ended June 30, 2025, net interest expense was $105.5 million and $210.7 million, respectively, lower than $113.3 million and $229.3 million in the prior year periods, primarily due to a decrease in average interest rates (6.14% and 6.11% in 2025 versus 6.80% and 6.83% in 2024)[77] - For the three and six months ended June 30, 2025, other (expense) income, net, was ($1.1 million) and $6.1 million, respectively, primarily including dividend income, foreign currency exchange losses, and investment fair value adjustment losses. Net equity in earnings of unconsolidated affiliates significantly decreased, mainly due to an investment value adjustment for Orbit Private Investments L.P. in 2024[78][79] | Metric | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Provision for income taxes (Millions of USD) | 58.4 | 13.8 | 106.5 | 80.5 | | Effective Tax Rate | 24.4% | 6.7% | 21.3% | 18.8% | - Changes in the effective tax rate were primarily influenced by the release of uncertain tax position reserves after an audit, recognition of tax benefits from stock-based compensation, and changes in the proportional composition of income in domestic and foreign tax jurisdictions. The company expects the UK statutory tax rate to be 25.0% and India to be approximately 25.3% in 2025[81] Liquidity and Capital Resources - The company's primary cash requirements include operating costs, debt repayment, R&D investments, business or asset acquisitions, common stock repurchases, and dividend payments. Existing cash, operating cash flows, and available cash under credit agreements are expected to be sufficient to meet liquidity needs for the next twelve months[83] | Cash Flow Activities (Millions of USD) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | Year-over-Year Change (Millions of USD) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 645.1 | 565.4 | 79.7 | | Net cash used in investing activities | (148.1) | (84.0) | (64.1) | | Net cash used in financing activities | (987.8) | (1,597.6) | 609.8 | | Effect of exchange rate changes | 11.7 | (3.9) | 15.6 | | Net decrease in cash, cash equivalents and restricted cash | (479.1) | (1,120.1) | 641.0 | - As of June 30, 2025, the company held approximately $242.3 million in cash and cash equivalents in non-U.S. subsidiaries, which are considered permanently reinvested, thus no income tax provision has been made for these funds[89] Off-Balance Sheet Arrangements - The company has no off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on its financial condition, results of operations, liquidity, or capital resources[90] Senior Secured Credit Facilities and Senior Notes | Debt Category | Outstanding Amount as of June 30, 2025 (Millions of USD) | Maturity Date | Quarterly Payment Requirement | | :--- | :--- | :--- | :--- | | Senior Secured Credit Facilities | | | | | Term Loan B-8 | 3,320.0 | May 9, 2031 | (1) | | Term Loan A-9 | 785.0 | September 27, 2029 | 0.625% (3) | | Revolving Credit Facility | — | December 28, 2027 | None | | Senior Notes | | | | | 5.5% Senior Notes | 2,000.0 | September 30, 2027 | None | | 6.5% Senior Notes | 750.0 | June 1, 2032 | None | - The Senior Secured Credit Facilities include a $600 million revolving credit facility, with $596.6 million available as of June 30, 2025. The company has made prepayments on the Term Loan B-8, eliminating the need for quarterly principal payments until March 2030[92][95] - Covenants for the 5.5% and 6.5% Senior Notes restrict the company and its subsidiaries from incurring debt, creating liens, making investments, paying dividends, disposing of assets, or engaging in transactions with affiliates. Any default under the Senior Secured Credit Facilities could trigger a default under the Senior Notes[96][99] Covenant Compliance - The company is required to comply with a consolidated net secured leverage ratio financial covenant under its revolving credit facility and a separate consolidated net secured leverage ratio under its Term Loan A-9. As of June 30, 2025, the company was in compliance with all financial and non-financial covenants[100][94] | Covenant Requirement | Actual Ratio (as of June 30, 2025) | | :--- | :--- | | Maximum Consolidated Net Secured Leverage Ratio to Consolidated EBITDA | 6.25x | 1.55 | - Consolidated EBITDA is a non-GAAP financial measure used to assess the cost of the company's capital structure and evaluate its ability to service debt and fund capital expenditures. This metric does not represent net income or cash flow from operations as defined by GAAP and may not be comparable to similar measures reported by other companies[101][102][105] | Consolidated EBITDA Reconciliation (Millions of USD) | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | June 30, 2025 (12 months) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | 181.1 | 190.7 | 394.3 | 348.7 | 807.4 | | Net interest expense | 105.5 | 113.3 | 210.7 | 229.3 | 433.2 | | Provision for income taxes | 58.4 | 13.8 | 106.5 | 80.5 | 157.9 | | Depreciation and amortization | 174.9 | 167.5 | 345.7 | 333.0 | 692.8 | | EBITDA | 519.9 | 485.3 | 1,057.2 | 991.5 | 2,091.3 | | Stock-based compensation | 60.2 | 50.6 | 112.9 | 95.7 | 220.4 | | Loss on extinguishment of debt | — | 27.7 | 0.9 | 28.8 | 3.3 | | Net equity in earnings of unconsolidated affiliates | (1.6) | (17.3) | (3.9) | (19.6) | (8.7) | | Foreign currency exchange losses | 1.9 | 1.1 | 4.1 | 5.8 | 6.4 | | Facility and workforce restructuring | 17.1 | 7.5 | 24.2 | 19.7 | 46.1 | | Consolidated EBITDA | 601.3 | 560.0 | 1,194.2 | 1,117.9 | 2,362.3 | | Consolidated EBITDA attributable to SS&C common stockholders | 600.4 | 558.9 | 1,192.3 | 1,115.7 | 2,358.4 | Recent Accounting Pronouncements Not Yet Effective - The company plans to adopt ASU 2023-09 (Improvements to Income Tax Disclosures) for the fiscal year ending December 31, 2025, which is expected to impact only financial statement disclosures and not financial position, results of operations, or cash flows. The company is evaluating the impact of ASU 2024-03 (Income Statement—Reporting Comprehensive Income—Disaggregation of Expenses Disclosure), which is effective for fiscal years beginning after December 15, 2026[110][111] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section discloses the market risks faced by the company, including interest rate risk, equity price risk, and foreign currency exchange risk, and quantifies the potential impact of these risks on the company's financial performance Interest Rate Risk - The company earns service revenue from investment income on cash balances held in bank accounts on behalf of clients. For the six months ended June 30, 2025, the average daily cash balance was approximately $2.5 billion. An estimated 100 basis point increase in interest rates would increase annual net income (after income taxes) by approximately $12.3 million[113] - As of June 30, 2025, the company's total variable-rate debt was approximately $4.105 billion. A 100 basis point increase in interest rates would increase annual interest expense by approximately $41.1 million[114] Equity Price Risk - The company is exposed to equity price risk due to its investments in equity securities. As of June 30, 2025, the fair value of investments subject to equity price risk was approximately $42.8 million. A 10% change in the fair value of these investments would impact net income (after income taxes) by approximately $3.2 million[115] Foreign Currency Exchange Rate Risk - For the six months ended June 30, 2025, approximately 32% of the company's revenues were from clients outside the U.S., and approximately 24% of revenues were denominated in non-U.S. currencies, primarily the British Pound. The company is exposed to transaction gains and losses from changes in foreign currency exchange rates, but these amounts were not material during the reporting period. The company does not trade or hedge market risk sensitive instruments[117] Item 4. Controls and Procedures This section assesses the effectiveness of the company's disclosure controls and procedures and reports on changes in internal control over financial reporting Evaluation of Disclosure Controls and Procedures - As of June 30, 2025, the company's management, including the Chief Executive Officer and Chief Financial Officer, evaluated and concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[119] Changes in Internal Control Over Financial Reporting - There were no changes in the company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the fiscal quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[120] PART II. OTHER INFORMATION Item 1. Legal Proceedings This section discloses the legal proceedings involving the company and reiterates management's assessment of the outcome of these proceedings - The company does not believe that any legal proceedings or actions to which it is a party will have a material adverse effect on the company or its business. Management believes that the ultimate outcome of all legal proceedings, in the aggregate, will not have a material adverse effect on the company's consolidated financial position, results of operations, or cash flows[122][123] Item 1A. Risk Factors This section indicates that there have been no material changes to the risk factors disclosed by the company since the filing of its annual report - As of the date of this report, there have been no material changes to the risk factors disclosed by the company in its 2024 Form 10-K annual report[124] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section summarizes the company's common stock repurchase activities during the second quarter of 2025, including the number of shares repurchased, average price, and remaining authorized repurchase amount | Period | Total Number of Shares Repurchased (Millions of shares) | Average Price Per Share (USD) | Total Number of Shares Repurchased Under Publicly Announced Plans (Millions of shares) | Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Repurchased Under the Plans (Millions of USD) | | :--- | :--- | :--- | :--- | :--- | | April 1, 2025 – April 30, 2025 | 0.3 | 75.59 | 0.3 | 309.8 | | May 1, 2025 – May 31, 2025 | 3.0 | 78.44 | 3.0 | 1,487.1 | | June 1, 2025 – June 30, 2025 | 0.1 | 79.57 | 0.1 | 1,480.1 | | Total | 3.4 | | 3.4 | | - In May 2025, the company's Board of Directors authorized a new stock repurchase program, allowing for the repurchase of up to $1.5 billion of common stock. As of June 30, 2025, approximately $1.4801 billion of shares remained available for repurchase under this program[126] Item 6. Exhibits This section lists all exhibits filed as part of this report, including certifications from the Chief Executive Officer and Chief Financial Officer, and XBRL files - This report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act and 18 U.S.C. Section 1350, as well as Inline XBRL documents[130] SIGNATURE - This report was duly signed on July 30, 2025, by SS&C Technologies Holdings, Inc., represented by Brian N. Schell, Executive Vice President and Chief Financial Officer[132][133][134]