MSCI(US:MSCI)2025-10-28 10:46Financial Performance - Operating revenues for Q3 2025 were $793.4 million, an increase of 9.5% compared to Q3 2024[3] - Net income for Q3 2025 reached $325.4 million, up 15.8% year-over-year[11] - Diluted EPS for Q3 2025 was $4.25, reflecting a 19.0% increase from Q3 2024[5] - Recurring subscription revenues grew by 7.9%, while asset-based fees increased by 17.1% in Q3 2025[5] - The Index segment reported operating revenues of $451.2 million, up 11.4% year-over-year[14] - The Analytics segment's operating revenues were $182.2 million, an increase of 5.7% compared to Q3 2024[18] - Sustainability and Climate segment operating revenues reached $90.1 million, up 7.7% year-over-year[20] - Total operating revenues for All Other – Private Assets were $70.0 million, an increase of 9.7% year-over-year, primarily driven by recurring subscriptions growth of 10.4%[22] - Adjusted EBITDA for the third quarter of 2025 was $19.3 million, reflecting an 18.7% increase compared to the same period in 2024, with an adjusted EBITDA margin of 27.6%[22] - Adjusted EBITDA for Q3 2025 was $350,263, an increase of 11.5% compared to $314,148 in Q3 2024[72] - The adjusted EBITDA margin for Q3 2025 remained stable at 77.6% compared to the same quarter last year[72] - Organic operating revenue growth for Q3 2025 was 11.4%, with subscription revenue growing by 8.3% and asset-based fees increasing by 17.1%[84] Shareholder Returns - The company repurchased $1,248.9 million worth of shares at an average price of $559.95 through October 27, 2025[5] - A new $3.0 billion share repurchase program was authorized by the MSCI Board on October 25, 2025[5] - Approximately $137.4 million in dividends were paid to shareholders in the third quarter of 2025, with a declared cash dividend of $1.80 per share for the fourth quarter[31] - The company authorized a new stock repurchase program for up to $3.0 billion of its common stock on October 25, 2025[30] Cash Flow and Capital Expenditures - Free cash flow for the third quarter of 2025 was $423.3 million, up 7.4% year-over-year[29] - Capital expenditures (Capex) for the third quarter were $26.1 million, with net cash provided by operating activities increasing by 6.6% to $449.4 million[29] - Cash and cash equivalents stood at $400.1 million as of September 30, 2025, while total debt outstanding was $5.6 billion, resulting in a total debt to adjusted EBITDA ratio of 3.0x[25][26] - The company issued $1.25 billion of 5.25% Senior Unsecured Notes due 2035 on August 8, 2025, and amended its credit agreement to increase revolving loan commitments to $1.6 billion[27][28] Debt and Assets - Long-term debt increased to $5,507,771,000 as of September 30, 2025, up from $4,510,816,000 at December 31, 2024[69] - Total current assets decreased to $1,308,721,000 as of September 30, 2025, from $1,344,021,000 at December 31, 2024[69] - Deferred revenue decreased to $974,662,000 as of September 30, 2025, compared to $1,123,423,000 at December 31, 2024, indicating a reduction in future revenue obligations[69] Subscription Metrics - New recurring subscription sales increased by 16.5% to $29,443,000 for the three months ended September 30, 2025, compared to $25,271,000 in the same period of 2024[74] - Subscription cancellations decreased by 0.5% to $9,911,000 for the three months ended September 30, 2025, compared to $9,862,000 in the same period of 2024[74] - Net new recurring subscription sales rose by 26.8% to $19,532,000 for the three months ended September 30, 2025, compared to $15,409,000 in the same period of 2024[74] - The total retention rate improved to 94.7% for the three months ended September 30, 2025, compared to 94.2% in the same period of 2024[78] Guidance and Future Outlook - Full-Year 2025 guidance includes operating expenses of $1,415 to $1,445 million and free cash flow of $1,410 to $1,470 million[33] - The company anticipates free cash flow for the full year to be between $1,410,000,000 and $1,470,000,000[83] - The nine-month operating revenue growth for 2025 was 11.2%, with subscription revenue growth at 8.8%[85]