FactSet(US:FDS)2026-01-05 12:30Financial Performance - Revenues for the first quarter of fiscal 2026 were $607.6 million, a 6.9% increase from the prior year period, driven by a 6.0% increase in organic revenues [158]. - Net income for the first quarter was $152.6 million, a 1.7% increase from the prior year, with diluted earnings per share (EPS) at $4.06, up 4.4% [163]. - Operating margin decreased to 31.6% from 33.6% in the prior year, primarily due to higher amortization of intangible assets and employee compensation costs [160]. - Consolidated revenues for the three months ended November 30, 2025, were $607.6 million, a 6.9% increase from $568.7 million in the same period of 2024 [179]. - Operating income for the three months ended November 30, 2025, was $192.1 million, a slight increase of 0.4% compared to $191.3 million in the prior year [192]. - Net income for the three months ended November 30, 2025, was $152.6 million, a 1.7% increase from $150.0 million in the same period of 2024 [204]. - Adjusted operating income rose to $220.1 million, reflecting a 3.0% increase from $213.8 million in the previous year [209]. - EBITDA for the quarter was $247.6 million, representing a 7.7% increase from $229.9 million in 2024 [209]. Client and User Growth - The client count increased to 9,003, a 9.1% rise from the previous year, while user count grew to 239,863, a 9.9% increase [173]. - Annual ASV retention was over 95% as of November 30, 2025, with client retention at 91% [174]. Revenue Segmentation - ASV from the Americas represented 65% of total ASV at $1,575.8 million, a 7.6% increase from the previous year [168]. - ASV from EMEA was $591.0 million, a 3.7% increase, while Asia Pacific ASV reached $244.3 million, an 8.4% increase [169][170]. - Americas segment revenues increased by 7.9% to $396.2 million, driven by a 6.5% increase in organic revenues and a 1.4% increase from acquisitions [180]. - EMEA segment revenues grew by 4.0% to $149.5 million, with organic revenues contributing 4.0% and a 0.6% increase from foreign currency fluctuations [181]. - Asia Pacific segment revenues rose by 7.3% to $61.9 million, primarily due to an 8.3% increase in organic revenues [182]. Expenses and Operating Costs - Total operating expenses increased by 10.1% to $415.6 million, with cost of services rising by 11.3% to $287.9 million and SG&A increasing by 7.7% to $127.6 million [187]. - The operating margin decreased to 31.6% from 33.6% year-over-year, primarily due to higher employee compensation costs and technology-related expenses [193]. Cash Flow and Shareholder Returns - Cash and cash equivalents decreased to $275.4 million from $337.7 million as of August 31, 2025 [210]. - The company returned $181.3 million to shareholders through share repurchases and dividends during the three months ended November 30, 2025 [233]. - The company repurchased 478,100 shares for $139.9 million during the same period, compared to 104,475 shares for $48.8 million in 2024 [234]. - Dividends paid during the three months ended November 30, 2025, totaled $41.4 million, compared to $39.2 million for the same period in 2024 [237]. - Free cash flow for the three months ended November 30, 2025, was $90.4 million, an increase of $29.9 million from $60.5 million in 2024 [255]. Acquisitions - The acquisition of LiquidityBook was completed for a purchase price of $243.2 million, net of cash acquired [240]. - The acquisition of Irwin was completed for a purchase price of $120.2 million, net of cash acquired [242]. Financing and Debt - The 2025 Term Facility has an outstanding balance of $375.0 million, with no repayments made during the three months ended November 30, 2025 [216]. - The company entered into a $500.0 million senior unsecured term loan credit facility under the 2025 Credit Agreement, maturing on April 8, 2028 [213]. - The company has a total leverage ratio requirement of no greater than 3.75 to 1.00 under the 2025 Credit Agreement, and it was in compliance as of November 30, 2025 [222]. Cash Flow Activities - Net cash provided by operating activities was $121.3 million for the three months ended November 30, 2025, up from $86.4 million in 2024 [246]. - Net cash used in financing activities for the three months ended November 30, 2025, was $190.5 million, compared to $70.1 million in the same period of 2024, reflecting increased share repurchases [252]. - The cash provided by investing activities for the three months ended November 30, 2025, was $4.3 million, a significant recovery from $(145.1) million in the same period of 2024 [250]. Tax and Compliance - The effective tax rate increased to 19.7% for the three months ended November 30, 2025, up from 16.5% in the prior year, primarily due to a stock-based compensation tax shortfall [202]. Capital Expenditures - Capital expenditures increased by 19.2% to $30.8 million for the three months ended November 30, 2025, compared to $25.9 million a year ago [238].