MSCI(US:MSCI) ZACKS·2026-01-28 19:10Core Insights - MSCI's fourth-quarter 2025 adjusted earnings per share (EPS) were $4.66, surpassing the Zacks Consensus Estimate by 0.86% and reflecting an 11.5% year-over-year increase [1][10] - Revenues for MSCI rose 10.6% year over year to $822.5 million, aligning with the Zacks Consensus Estimate, driven by strong growth in recurring subscription revenues and asset-based fees [1][10] Revenue Breakdown - Recurring subscriptions amounted to $584.2 million, a 7.5% increase year over year, contributing 71% to total revenues [2] - Asset-based fees reached $211.7 million, up 20.7% year over year, contributing 25.7% to total revenues [2] - Non-recurring revenues were $26.6 million, increasing 7.1% year over year, contributing 3.2% to total revenues [2] Segment Performance - Index revenues were $479.1 million, a 14% year-over-year increase, with recurring subscriptions and asset-based fees rising 7.8% and 20.7%, respectively [4] - Analytics operating revenues were $182.3 million, up 5.5% year over year, with recurring subscriptions increasing 7.1% [5] - The Sustainability and Climate segment generated $90.3 million in operating revenues, a 5.9% year-over-year increase [6] - All Other – Private Assets operating revenues were $70.9 million, reflecting an 8.4% year-over-year increase [7] Operating Metrics - Adjusted EBITDA increased 13.2% year over year to $512 million, with an adjusted EBITDA margin of 62.2% [8] - Total operating expenses rose 6.1% year over year to $358.9 million, driven by higher compensation costs [9] - Operating income improved 14.4% year over year to $463.6 million, with an operating margin expansion of 190 basis points to 56.4% [11] Balance Sheet and Cash Flow - Total cash and cash equivalents as of December 31, 2025, were $515.3 million, up from $400.1 million as of September 30, 2025 [12] - Total debt increased to $6.2 billion as of December 31, 2025, from $5.6 billion as of September 30, 2025 [12] - Free cash flow was $464.8 million, a 17.8% year-over-year increase from $423.3 million [13] 2026 Guidance - For 2026, MSCI anticipates total operating expenses between $1.490 billion and $1.530 billion [14] - Adjusted EBITDA expenses are expected to range from $1.305 billion to $1.335 billion [14] - Net cash provided by operating activities and free cash flow are projected to be between $1.64 billion and $1.69 billion, and $1.47 billion to $1.53 billion, respectively [14]