Financial Data and Key Metrics Changes - MSCI reported organic revenue growth of 9%, adjusted EBITDA growth of 10%, and adjusted earnings per share growth of over 15% in Q3 2025 [4] - The company repurchased $1.25 billion worth of shares in Q3, bringing year-to-date repurchases to over $1.5 billion, with an additional $3 billion authorized for future buybacks [4] Business Line Data and Key Metrics Changes - The index franchise achieved recurrent net new subscription sales growth of 27%, with 43% growth in the Americas, and total AUM in investment products linked to MSCI indices reached $6.4 trillion [5] - Analytics delivered recurrent net new sales growth of 16%, driven by strong adoption of risk tools and equity models by multi-strategy hedge funds [6] - Subscription run rate growth for wealth managers was nearly 11%, while asset owners posted 9% growth, and banks and broker dealers achieved 9% growth [11][12][13] Market Data and Key Metrics Changes - Equity ETFs linked to MSCI indices captured $46 billion of inflows during Q3, with strong demand for MSCI Developed Markets ex U.S. and MSCI Emerging Markets Indexes [16] - The retention rate for sustainability and climate solutions was almost 94%, reflecting the essential nature of these tools [18] Company Strategy and Development Direction - MSCI is focusing on expanding its presence in private credit and enhancing its client segmentation strategy to deepen penetration in existing segments while targeting new client segments [9][10] - The company is leveraging AI to enhance product offerings and operational efficiency, with a goal to significantly increase the scale of datasets and improve margins [39][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term opportunities and the ability to drive growth from recent innovations and investments, particularly in private assets and wealth management [15][34] - The company noted a stable market environment with consistent dynamics, particularly in the Americas, and highlighted a healthy product pipeline supporting strong client engagement [45][46] Other Important Information - MSCI launched a private credit factor model and a new global taxonomy for private assets, aiming to provide consistent standards and improve transparency in private markets [7][8] - The company is seeing strong momentum in new product development, particularly in AI-driven solutions, which are expected to enhance revenue growth and operational efficiency [40][42] Q&A Session Summary Question: Strategy around private credit - Management is bullish on private credit, emphasizing the need for tools to demonstrate creditworthiness and market risk, and highlighted innovations in credit assessments and private credit indices [22][23][24][26] Question: New products and marketing efforts - The strategy includes helping the active asset management industry create new products, particularly in active ETFs, and expanding into new client segments [28][29][30][32][34] Question: AI opportunities and cost savings - AI is expected to dramatically increase margins by enabling faster product creation and reducing operational costs, with significant investments in AI projects [37][61] Question: Pipeline and sales cycle for Q4 - The overall environment is stable, with a healthy product pipeline and strong client engagement, particularly in index and analytics [44][45] Question: Non-ETF and fixed income business performance - Non-ETF revenue growth can be affected by lumpiness, while fixed income AUM is around $90 billion, with ongoing focus on driving adoption and innovation [49][51] Question: Active ETFs economics and competitive advantages - Active ETFs are seen as a growing category, providing new revenue opportunities without cannibalizing existing business [56][58] Question: Competitive moat against new entrants - MSCI's proprietary data, trusted models, and established client relationships create significant barriers to entry for potential competitors [70][74][76] Question: Performance in EMEA region - There has been sluggishness in EMEA, but product development efforts are global, and innovations are expected to drive growth in the region [78]