FactSet(US:FDS)2025-10-22 10:04Client and Revenue Metrics - As of August 31, 2025, FactSet had approximately 9,000 clients and over 237,000 investment professionals using its platform[16]. - Revenues from the Americas segment represented 65% of total revenues during fiscal 2025, while EMEA and Asia Pacific accounted for 25% and 10%, respectively[20]. - Annual Subscription Value (ASV) retention was greater than 95%, with annual retention expressed as a percentage of clients at 91% for the year ended August 31, 2025[30]. - Buy-side clients accounted for approximately 82% of FactSet's Organic ASV as of August 31, 2025[31]. - Organic Annual Subscription Value (Organic ASV) totaled $2,370.9 million, reflecting a 5.7% increase over the prior year, with significant growth in the Americas[157]. - ASV from the Americas represented 65% of total ASV at $1,570.1 million, a 7.9% increase from the previous year[167]. - ASV from EMEA accounted for 25% of total ASV at $591.6 million, marking a 3.5% increase from the prior year[168]. - As of August 31, 2025, Asia Pacific ASV was $243.9 million, a 5.7% increase from $230.3 million in 2024, with organic ASV growing 7.2% to $242.7 million[169]. - The company added 779 clients, bringing the total to 8,996, a 9.5% increase year-over-year[172]. - User count increased by 20,943 to 237,324, representing a 9.7% growth, primarily from wealth management users[173]. Financial Performance - Revenues for fiscal 2025 were $2,321.7 million, an increase of 5.4% from the prior year, driven by a 4.4% increase in organic revenues[156]. - Operating margin improved to 32.2% for fiscal 2025, up from 31.8% in fiscal 2024, primarily due to revenue growth[158]. - Net income for fiscal 2025 was $597.0 million, an increase of 11.2% from the prior year, with diluted earnings per share rising to $15.55, an increase of 11.8%[159]. - The company returned $460.4 million to stockholders through share repurchases and dividends during fiscal 2025[159]. - Operating income rose 6.7% to $748.3 million, with an operating margin of 32.2%, up from 31.8% in the prior year[191]. - Cost of services increased by 8.5% to $1,097.8 million, primarily due to higher employee compensation and amortization of intangible assets[187]. - SG&A expenses decreased by 2.9% to $475.7 million, with a margin of 20.5% of revenues, down 170 basis points from the previous year[190]. - Adjusted net income for fiscal 2025 was $651,617,000, a 2.6% increase from $635,073,000 in fiscal 2024[205]. - Cash and cash equivalents as of August 31, 2025, were $337.7 million, down from $423.0 million as of August 31, 2024[207]. - The company had $486.9 million of undistributed foreign earnings as of August 31, 2025, with $69.1 million permanently reinvested[208]. Employee and Organizational Insights - As of August 31, 2025, FactSet had 12,800 employees, representing a 3.2% increase compared to the previous year[41]. - In fiscal 2025, 94% of employees participated in learning programs, completing 339,000 hours globally[43]. - The employee engagement survey in fiscal 2025 achieved an 88% response rate, indicating strong employee alignment with the company's purpose[43]. - FactSet employees contributed 17,200 volunteer hours across 391 events in fiscal 2025, with over 85% participating in philanthropic initiatives[43]. - In fiscal 2025, FactSet expanded mental health resources through a global platform providing access to on-demand clinical experts and personalized wellness content[47]. - The company has donated over 9 million meals since 2019 through its Hunger Awareness initiative[47]. - As of August 31, 2025, 47% of employees were in Content Operations, 28% in Technology and Product Development, 21% in Sales and Client Solutions, and 4% in Corporate Support[42]. Leadership and Governance - The Chief Executive Officer, Sanoke Viswanathan, was appointed effective September 8, 2025[49]. - Helen L. Shan serves as Chief Financial Officer, overseeing all financial functions since her appointment on July 23, 2024[50]. - Christopher R. Ellis was appointed as Executive Vice President, Head of Strategic Initiatives and Partnerships effective November 1, 2023[58]. Technology and Cybersecurity - FactSet's AI solutions are generating increased usage and demand, with a focus on integrating AI into client workflows to enhance productivity[33]. - The company operates two fully redundant data centers in the U.S. and utilizes multiple cloud providers to support its operations[35]. - The company continues to invest in AI solutions to improve product discoverability and usability, adapting to clients' evolving workflows[37]. - The company maintains a dedicated information security program with approximately 60 employees focused on managing cybersecurity risks[119]. - The company’s cybersecurity risk management is integrated into its broader Enterprise Risk Management framework, reviewed quarterly[121]. - The company faces significant cybersecurity risks, including unauthorized access to confidential data and potential cyber-attacks, which could adversely affect its operations and financial condition[64]. Market and Competitive Landscape - FactSet's competitive landscape includes major players like Bloomberg L.P. and S&P's Market Intelligence division, highlighting the competitive nature of the financial information services industry[39]. - The company is experiencing intense competition across its products and services, with competitors leveraging advanced technologies, including AI, which may impact market share and profitability[81]. - A continued shift from active to passive investing could negatively affect user growth and demand for the company's services, as passive investing requires lower fees and less decision-making[82]. - Economic downturns and uncertainty in the global economy may lead to client consolidation and reduced demand for the company's products and services, impacting overall business results[84]. - The increasing availability of free or inexpensive information sources may reduce demand for the company's products and services[95]. Regulatory and Compliance Risks - The company is subject to SEC reporting requirements and maintains minimum net capital requirements as a registered broker-dealer[44]. - The company is exposed to fluctuations in foreign currency exchange rates, particularly with the British Pound Sterling, Euro, Indian Rupee, and Philippine Peso, which may adversely affect financial results[109]. - The company is subject to numerous global data privacy laws, which could impact its operations and expose it to claims of violations[105]. - Legislative and regulatory changes, such as the EU's DORA and the U.S. Financial Data Transparency Act, may increase compliance costs and impact client relationships[101]. - The company identified a material weakness in internal controls related to financial reporting, with remediation efforts expected to continue into fiscal 2026[99]. Strategic Initiatives and Challenges - The company is investing in enhancing its information technology disaster recovery processes to minimize service disruption risks, although challenges remain in maintaining operational resilience[74]. - The company is implementing a multi-year project to modernize its IT infrastructure, which involves substantial expenditures and risks associated with transitioning to new technologies[75]. - The use of open source software in the company's products may introduce security vulnerabilities and unexpected restrictions, potentially impacting commercialization efforts[76]. - The company faces challenges in developing and marketing new products to maintain technological competitiveness amid rapid market changes, including AI advancements[86]. - Errors or defects in new products can lead to market rejection, reputational damage, and loss of revenues, particularly after product introductions[87]. - Clients are increasingly seeking additional contractual protections, which may create liabilities and compliance challenges for the company[88]. - In fiscal 2025, the company completed several acquisitions, including Irwin, LiquidityBook, and LogoIntern, but faces integration risks and the challenge of realizing anticipated benefits[89]. - The company relies on third-party service providers for critical functions, which exposes it to risks of system failures and security breaches that could impact operations[65]. - The company relies on third-party content agreements, which may be subject to termination or increased costs, impacting the availability of key information for clients[94].