Core Viewpoint - MSCI's recent earnings report shows strong performance with adjusted earnings and revenue growth, but estimates have been trending downward since the release, indicating potential challenges ahead [2][14]. Financial Performance - MSCI's Q2 2025 adjusted earnings were $4.17 per share, beating estimates by 0.24% and increasing 14.6% year over year [2]. - Revenues rose 9.1% year over year to $772.68 million, slightly missing consensus estimates by 0.12% [2]. - Recurring subscription revenues were $562.8 million, up 7.9% year over year, contributing 72.8% to total revenues [3]. - Asset-based fees increased 12.7% year over year to $184.1 million, contributing 23.8% to revenues [3]. - Adjusted EBITDA increased 10.3% year over year to $474.3 million, with an adjusted EBITDA margin of 61.4% [8]. Segment Performance - Index revenues were $434.8 million, up 9.5% year over year, driven by market-cap-weighted Index products and ETFs [4]. - Analytics operating revenues increased 7.1% year over year to $177.7 million, with non-recurring revenues rising significantly by 104.9% [5]. - The Sustainability and Climate segment's revenues were $88.9 million, up 11.3% year over year [6]. - Private Assets operating revenues were $71.2 million, reflecting a 9.7% year-over-year increase [7]. Balance Sheet and Cash Flow - As of June 30, 2025, total cash and cash equivalents were $347.3 million, down from $360.7 million as of March 31, 2025 [11]. - Total debt remained stable at $4.5 billion, with a debt-to-adjusted EBITDA ratio of 2.5 times, below the management target [11]. - Free cash flow was $301.6 million, down 6.3% year over year [12]. Guidance and Outlook - MSCI maintains its 2025 guidance for total operating expenses between $1.405 billion and $1.445 billion [13]. - Despite strong earnings, estimates have been trending downward, leading to a Zacks Rank 3 (Hold) for the stock [16].

Key Takeaways MSCI's Q2 EPS rose 14.6% Y/Y to $4.17, beating estimates; revenue grew 9.1% to $772.68 million. Recurring subscriptions and asset-based fees rose 7.9% and 12.7% Y/Y, driving MSCI's top-line growth. MSCI's operating margin expanded 100 bps to 55%, while adjusted EBITDA margin reached 61.4%.MSCI’s (MSCI) second-quarter 2025 adjusted earnings of $4.17 per share beat the Zacks Consensus Estimate by 0.24% and increased 14.6% year over year.MSCI's revenues rose 9.1% year over year to $772.68 milli ...