SS&C(US:SSNC)2025-10-23 20:25Financial Performance - Q3 2025 GAAP revenue reached $1,568 million, a 7.0% increase from Q3 2024, with adjusted revenue also at $1,569 million, reflecting the same growth rate [1][2]. - Fully diluted GAAP earnings per share increased by 27.7% to $0.83, while adjusted diluted earnings per share rose 17.2% to $1.57 [1][2]. - Operating income for Q3 2025 was $365.7 million, up 12.5% year-over-year, with an operating income margin of 23.3% [2][5]. - Adjusted consolidated EBITDA for Q3 2025 was $619 million, a 9.3% increase, with an adjusted EBITDA margin of 39.5% [4][5]. - Net income attributable to SS&C common stockholders for Q3 2025 was $210.0 million, a 27.7% increase from $164.4 million in Q3 2024 [13]. - Basic earnings per share for Q3 2025 was $0.86, compared to $0.67 in Q3 2024, representing a 28.4% increase [13]. - Net income for Q3 2025 was $210.4 million, compared to $164.6 million in Q3 2024, reflecting a 27.8% increase [27]. - GAAP net income for Q3 2025 was $210.4 million, up from $164.6 million in Q3 2024, representing a 27.8% increase [31]. - Adjusted net income for the nine months ended September 30, 2025, reached $1,131.6 million, compared to $1,012.0 million for the same period in 2024, reflecting a 11.8% growth [31]. Revenue Breakdown - Total revenues for Q3 2025 reached $1,568.0 million, a 7.0% increase from $1,465.8 million in Q3 2024 [20]. - Software-enabled services revenue was $1,309.4 million, up 8.6% from $1,206.2 million year-over-year [13]. - Adjusted revenues for the nine months ended September 30, 2025, were $4,621.6 million, up 6.1% from $4,355.0 million in the same period of 2024 [21]. - Software-enabled services revenue for Q3 2025 was $1,309.4 million, representing a 8.6% increase compared to $1,206.2 million in Q3 2024 [21]. Cash Flow and Shareholder Returns - Net cash generated from operating activities for the nine months ended September 30, 2025, was $1,101.3 million, up 22.1% compared to the same period in 2024 [5][6]. - The company returned $305.9 million to shareholders in Q3 2025, including $240.1 million for share repurchases and $65.8 million in dividends [5]. - The annual common stock dividend was increased by 8.0% to $1.08 [5]. Guidance and Future Outlook - Guidance for Q4 2025 includes adjusted revenue expectations of $1,590 – $1,630 million and adjusted net income of $394 – $410 million [7]. Asset and Leverage Metrics - Total current assets as of September 30, 2025, were $5,321.1 million, up from $4,862.4 million at the end of 2024 [15]. - Total assets increased to $19,489.4 million as of September 30, 2025, compared to $19,044.7 million at the end of 2024 [15]. - SS&C's consolidated net leverage ratio was 2.59 times consolidated EBITDA as of September 30, 2025 [6]. Strategic Initiatives - The company is focusing on AI-powered automation to enhance its offerings, indicating a strategic shift towards specialized, purpose-built agents [4]. Other Financial Metrics - Gross profit for Q3 2025 was $747.8 million, compared to $704.2 million in Q3 2024, reflecting a gross margin improvement [13]. - Adjusted operating income for Q3 2025 was $602.9 million, a 9.7% increase from $549.7 million in Q3 2024 [23]. - Adjusted Consolidated EBITDA for Q3 2025 was $619.5 million, up 9.1% from $567.1 million in Q3 2024 [27]. - The company reported a comprehensive income of $143.6 million for Q3 2025, down from $323.4 million in Q3 2024, primarily due to foreign currency exchange adjustments [13]. Cost and Expense Management - The company reported a total amortization of intangible assets of $157.8 million for Q3 2025, compared to $152.4 million in Q3 2024, indicating a 4.4% increase [31]. - The effective tax rate for adjusted net income was revised to 21.1% for Q3 2025, down from 24.0% previously, due to increased deductions related to equity awards [31]. - The company incurred $60.0 million in stock-based compensation for Q3 2025, compared to $52.2 million in Q3 2024, which is a 15.5% increase [31]. - Acquisition-related costs amounted to $3.8 million in Q3 2025, up from $1.8 million in Q3 2024, reflecting a 111.1% increase [31]. - Facilities and workforce restructuring costs were $12.0 million in Q3 2025, compared to $13.9 million in Q3 2024, showing a decrease of 13.7% [31]. - The company reported foreign currency translation losses of $3.2 million in Q3 2025, compared to losses of $4.2 million in Q3 2024, indicating an improvement [31].