Revenue and Growth Metrics - Morningstar Data's annual revenue renewal rate is estimated to be 101% in 2025, up from 99% in 2024[23] - Morningstar Direct's annual revenue renewal rate is estimated to be approximately 104% in 2025, down from 106% in 2024[30] - PitchBook's annual revenue renewal rate is estimated to be approximately 103% in 2025, down from 108% in 2024[46] - Morningstar Sustainalytics' annual revenue renewal rate for license-based products was approximately 93% in both 2024 and 2025[87] - License-based revenue represented 70.3% of Morningstar's 2025 consolidated revenue, down from 71.4% in 2024[111] - Asset-based revenue accounted for 14.0% of consolidated revenue in 2025, compared to 14.6% in 2024[112] - Transaction-based revenue represented 15.7% of consolidated revenue in 2025, an increase from 14.0% in 2024[112] - In 2025, net flows across Investment Management, including Morningstar Model Portfolios, were approximately $2.0 billion[61] Market and Asset Management - Morningstar Credit's global ratings market is estimated to total approximately $11.8 billion for the trailing 12 months ended September 30, 2025[49] - As of December 31, 2025, Investment Management's assets under management (AUMA) totaled $72.8 billion[60] - As of December 31, 2025, Morningstar Retirement AUMA totaled $305.2 billion[75] - In 2025, Morningstar added around 290 retirement plans and 17,000 participants across its advisor managed accounts network[76] Product Innovations and Acquisitions - The acquisition of Lumonic Inc. is expected to enhance PitchBook's portfolio monitoring and risk assessment capabilities[40] - Morningstar Indexes introduced several new product innovations in 2025, particularly in private markets and thematic research[89] - Morningstar completed two acquisitions in 2025 to support its growth objectives[114] - Morningstar launched the AI Insights API, providing generative AI summaries of key fund and equity characteristics[24] Employee and Organizational Metrics - The company had 10,973 permanent, full-time employees globally as of December 31, 2025[100] - Morningstar's overall employee engagement score increased to 66% in 2025 from 64% in 2024[104] Regulatory Compliance and Adaptation - Morningstar operates under various regulatory frameworks across multiple jurisdictions, including the US, Canada, and the EU, ensuring compliance with local laws[128] - The company is adapting its business model for new EU ESG Rating Provider Regulations, indicating a proactive approach to regulatory changes[132] - Morningstar Investment Management is registered with the SEC and has fiduciary obligations to clients, ensuring compliance with investment advisory regulations[131] - The company continues to monitor pending ESG legislation, indicating a commitment to regulatory readiness and adaptation[132] - Morningstar Indexes GmbH is authorized to act as an EU benchmark administrator, following the transfer of UK benchmark administration[133] Financial Position and Currency Risk - As of December 31, 2025, Morningstar's cash, cash equivalents, and investments balance was $528.7 million[388] - A 100 basis-point change in the Secured Overnight Financing Rate (SOFR) is estimated to impact interest expense by $7.3 million annually based on the outstanding principal balance[389] - Foreign currency denominated revenue percentages include 2.6% from Australian Dollar, 7.8% from British Pound, 6.3% from Canadian Dollar, and 5.1% from other foreign currencies[390] - The estimated effect of a 10% adverse currency fluctuation on revenue includes a potential loss of $6.5 million from Australian Dollar and $19.3 million from British Pound[390] - The net currency position as of December 31, 2025, includes $43.2 million in Australian Dollar and $220.8 million in British Pound[390] - The estimated effect of a 10% adverse currency fluctuation on equity includes a potential loss of $4.3 million from Australian Dollar and $22.1 million from British Pound[390] - Morningstar has not engaged in currency hedging and does not currently hold positions in derivative instruments to mitigate currency risk[390] Investment Portfolio Management - The company has a diversified investment portfolio that may include stocks, bonds, options, mutual funds, and exchange-traded products[388] - Morningstar's investment portfolio is actively managed and may suffer losses from fluctuating interest rates and market prices[388] Brand and Intellectual Property - Morningstar has registered its brand name and logo in approximately 50 jurisdictions, including the EU, to protect its intellectual property[117] - The company holds several US and foreign patents, including those for portfolio management analysis and improved data processing technologies[118] Strategic Leadership - The company’s executive team includes Joe Mansueto as Executive Chairman, Kunal Kapoor as CEO, and Michael Holt as CFO, with a focus on strategic leadership[135]

Core Insights - Morningstar Inc. reported earnings per share of $2.71, exceeding the estimated $2.51, indicating strong financial performance [1] - The company's revenue for the period was $641.1 million, surpassing the forecasted $616.1 million, reflecting robust growth in 2025 [2] Financial Metrics - Morningstar's price-to-earnings (P/E) ratio is 17.37, indicating the market's valuation of its earnings [3] - The price-to-sales ratio stands at 2.71, while the enterprise value to sales ratio is 2.95, providing insights into the company's market value relative to its revenue [3] - The enterprise value to operating cash flow ratio is 13.10, reflecting how cash flow is valued in relation to enterprise value [4] - Morningstar's earnings yield is 5.76%, offering a perspective on return on investment [4] - The debt-to-equity ratio is 0.69, indicating a balanced approach to financing assets [4] - The current ratio of 1.04 suggests that the company is well-positioned to cover its short-term liabilities with its short-term assets [4]

News Release 22 West Washington Street Telephone: +1 312 696-6000 Chicago Facsimile: +1 312 696-6009 Illinois 60602 FOR IMMEDIATE RELEASE Morningstar, Inc. Reports Fourth-Quarter, Full-Year 2025 Financial Results CHICAGO, Feb. 12, 2026 - Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, reported solid fourth-quarter revenue growth with increases in operating and free cash flows. • Reported revenue increased 7.5% to $2.4 billion compared to the prior year; organic reven ...

Fourth-Quarter 2025 Supplemental Presentation February 12, 2026 including our most recent Forms 8-K, 10-K, and 10-Q. "Organic Revenue" is consolidated revenue before (1) acquisitions and divestitures, (2) adoption of new accounting standards or revisions to accounting practices (accounting changes), and (3) the effect of foreign currency translations. "Adjusted Operating Income (Loss)" is consolidated operating income (loss) excluding (1) intangible amortization expense, (2) the impact of merger, acquisitio ...

Core Viewpoint - The Vatican Bank has launched two new equity indexes aimed at tracking companies that comply with the social doctrine of the Catholic Church, enhancing its role as a financial institution serving the church [1][3]. Group 1: Index Details - The Morningstar IOR U.S. Catholic Principles Index and the Morningstar IOR Eurozone Catholic Principles Index each monitor 50 medium- and large-cap corporations [2]. - Each constituent of the indexes undergoes a rigorous screening process to ensure adherence to ethical mandates concerning human dignity, social justice, and environmental protection [2]. Group 2: Strategic Implications - Giovanni Boscia, CFO of the Vatican Bank, stated that these benchmarks allow for more rigorous and transparent performance assessment and reporting processes [3]. - The initiative reinforces the Vatican Bank's commitment to serving the Catholic community and positions it as a reference point within the Catholic world [3]. Group 3: Market Potential - The Vatican's new Catholic indexes may enable it to capitalize on the growing global exchange-traded funds (ETFs) market, projected to reach nearly $30 trillion by 2029 [5]. - The Vatican could license its stock indexes to third-party providers, allowing lay investors to align their investment portfolios with the teachings of the church [5].

Core Viewpoint - Apple shares have increased by 6% over the past month, driven by strong fourth-quarter earnings and better-than-expected iPhone sales, which may present trading opportunities with the Direxion Daily AAPL Bull 2X Shares (AAPU) [1] Group 1: Apple Performance - Apple reported stronger-than-expected iPhone sales in the fourth quarter, which acted as a catalyst for the stock's rally [1] - Morningstar projects iPhone revenue growth in the low teens for 2026, an increase from previous expectations of high single digits [1] - Apple is expected to achieve a gross margin of 50% within two years, up from 38% in 2020, due to a larger share of higher-margin services and in-house chip design [1] Group 2: AI Strategy - Apple is focusing on its artificial intelligence strategy, including a partnership with Google's Gemini, which aims to expand its AI capabilities while maintaining privacy [1] - The next-generation Apple Intelligence features and revamped Siri assistant will be built on Google's Gemini models, indicating a strategic approach to AI development [1]

Core Insights - The recent volatility in tech stocks is attributed to significant capital expenditure announcements from major companies like Alphabet and Amazon, leading to a market reevaluation of investment returns in the AI sector [4][5][6] - The transition from "Stage 1" to "Stage 2" of the AI boom indicates a shift in focus from large tech companies to smaller firms that provide essential infrastructure for AI development [8][10][20] Group 1: Market Reactions and Trends - The S&P 500 software and services sector lost approximately $1 trillion in market value, with major players like Microsoft and Salesforce experiencing sharp declines [2][6] - Following initial losses, tech stocks rebounded significantly, cutting the week's losses in half, indicating ongoing market recovery [2] - Investors are increasingly questioning the return on investment for the substantial capital expenditures planned by major tech firms, leading to a sell-off [6][7] Group 2: Capital Expenditure Insights - Alphabet announced a capital expenditure of $13.9 billion for Q4, with projections for 2026 spending to rise to between $175 billion and $185 billion, nearly doubling previous estimates [4] - Amazon's capital expenditure for 2026 is projected to reach $200 billion, exceeding expectations by about $50 billion, contributing to a total of approximately $710 billion in projected spending from the top five hyperscalers [5] - This spending translates to nearly $2 billion per day being invested in data centers, chips, and networking infrastructure [5] Group 3: Investment Opportunities - The capital flowing into AI infrastructure presents opportunities for smaller companies that manufacture the necessary components and systems, marking the beginning of "Stage 2" in the AI boom [8][10] - Companies involved in providing power systems, networking infrastructure, and memory technologies are positioned to benefit from this infrastructure spending [16] - Specific companies identified as potential winners include Arista Networks, Eaton, and Broadcom, which are well-positioned to capitalize on the growing demand for AI infrastructure [16][18] Group 4: Challenges for Legacy Companies - The rapid advancement of AI tools raises concerns about the viability of legacy software and data services companies, which may struggle to compete with AI-driven alternatives [11][12] - Companies categorized under "KIDS" (Knowledge work, Information collection, Data analysis, Software) face significant risks as AI could render their business models obsolete or less profitable [12][13][14] - The decline in stock prices for KIDS companies, such as FactSet and Morningstar, reflects a broader market reevaluation of these business models in light of AI advancements [14]

Core Insights - The MSCI EAFE Index has significantly outperformed the S&P 500 since the beginning of last year, with a trailing 12-month dividend yield of 3.36%, which is approximately three times higher than that of the domestic benchmark [1] - The NEOS MSCI EAFE High Income ETF (NIHI) offers a distribution rate of 13.37% and a 30-day SEC yield of 2.92%, making it an attractive option for income-focused investors [1] - NIHI employs a straightforward strategy by writing covered calls on the iShares Core MSCI EAFE ETF (IEFA), providing a clear approach to generating elevated international equity income [1] Group 1: Market Performance - International equities are experiencing strength due to both US policies and internal factors, with European markets showing improvement driven by political and economic developments [1] - Japan's corporate governance reforms and reflation efforts have revitalized its market, indicating potential for further growth in MSCI EAFE member firms [1] Group 2: Investment Outlook - The investment community consensus suggests that international stocks remain attractively valued compared to domestic peers, with expectations of a multi-year upward trend [1] - Expert forecasts indicate higher returns for non-US equities over the next decade, encompassing both developed and emerging markets [1]

Core Viewpoint - Hong Kong-listed technology stocks have entered bear market territory due to tax concerns and global risk aversion, marking a significant reversal from last year's rally [1][2]. Group 1: Market Performance - The Hang Seng Tech Index, primarily composed of mainland Chinese tech firms, has declined over 20% from its peak in October, falling more than 1% recently [2]. - The index has experienced a continuous decline for six consecutive sessions [2]. Group 2: Tax Concerns - Fears regarding a potential increase in value-added tax (VAT) on internet services have been identified as a major factor contributing to the recent downturn [2][4]. - A recent VAT increase on certain telecom services has heightened concerns that internet platforms may face similar tax hikes [2][4]. Group 3: Sector Speculation - Speculation has arisen regarding the impact of potential VAT increases on online gaming and other digital transactions, exacerbating fears of further regulatory challenges for the tech sector [3]. - Officials have dismissed concerns about a levy on the gaming industry, indicating that the sector may not face immediate tax increases [3].

Core Insights - Envestnet has appointed Jonathan Linstra as chief growth officer to enhance its growth leadership model, focusing on scalable distribution and relationship management to meet rising client complexity and demand for personalization [1][2]. Group 1: Leadership and Role - Linstra joins Envestnet from Morningstar, where he was managing director for the Americas, and will report to CEO Chris Todd while leading growth priorities in sales execution, revenue generation, and advisor engagement [2][4]. - The new role is designed to work alongside Andrew Stavaridis, the chief relationship officer, who will continue to manage existing client relationships and expansion efforts [2]. Group 2: Strategic Initiatives - Envestnet is committing $1 billion in product investment over the next five years to enhance its managed accounts capabilities across broker/dealers and RIAs [4]. - The company has been advancing its Unified Managed Account (UMA) platform, incorporating features such as advisor-traded sleeves, flexible householding, alternatives, and improved portfolio management [4]. Group 3: Market Position and Assets - Envestnet manages $7.0 trillion in platform assets and serves over one-third of all financial advisors across banks, wealth managers, brokerages, and RIAs [6].