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 [6] - 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 repurchases [6] 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 [7] - Total AUM in investment products linked to MSCI indices reached $6.4 trillion, including $2.2 trillion in ETFs and $4.2 trillion in non-ETFs [7] - Analytics delivered recurrent net new sales growth of 16%, driven by strong adoption of risk tools and equity models by hedge funds [8] - Subscription run rate growth for wealth managers was nearly 11%, while asset owners posted 9% growth [12][14] - Subscription run rate growth for banks and broker dealers was 9%, with a record level of recurring sales [15] Market Data and Key Metrics Changes - Equity ETFs linked to MSCI indexes captured $46 billion of inflows during Q3 2025 [17] - The index retention rate remained durable at nearly 96% [17] - Sustainability and climate solutions saw an 8% subscription run rate growth, with climate solutions growing at 16% [19] Company Strategy and Development Direction - MSCI is focusing on expanding its presence in private credit and enhancing its client segmentation strategy [10][25] - The company is leveraging AI to enhance existing products and develop new capabilities, aiming for significant value creation for shareholders [9][41] - MSCI is committed to helping the active asset management industry recover by creating new products, particularly in the active ETF space [31][60] 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 [16] - The company is seeing solid momentum in delivering new products and capabilities, translating into tangible results [21] - Management acknowledged challenges in the sustainability and climate segment but emphasized the potential for monetization through indices [54] Other Important Information - MSCI launched a private credit factor model and a new global taxonomy for private assets, enhancing transparency and standardization [8][9] - The company is actively developing datasets and products for market makers and broker dealers to fuel liquidity [33] Q&A Session Summary Question: Strategy around private credit - Management is bullish on private credit, emphasizing the need for transparency tools for private credit funds to attract investors [24][25] Question: New products and marketing efforts - The strategy includes creating new products for the active asset management industry and expanding into other client segments [31][35] Question: AI opportunities and cost savings - AI is expected to dramatically increase margins by creating new products and reducing operational costs [63][64] Question: Sales momentum in asset management - The sales momentum is attributed to upselling additional content and services to existing clients, particularly in index [68] Question: Competitive moat against new entrants - MSCI's proprietary data and trusted brand create significant barriers to entry for competitors [72][75] Question: Performance of net new sales in EMEA - There was a decline in net new sales in EMEA, with management noting the need for further product innovation in that region [78]

Financial Data and Key Metrics Changes - MSCI reported revenue growth of over 9% in Q2 2025, adjusted EBITDA growth of over 10%, and adjusted earnings per share growth of almost 15% [7] - Free cash flow exceeded $300 million, with $286 million worth of shares repurchased year-to-date at an average price of $557 per share [7] - Total run rate growth was 11%, driven by record AUM levels in ETF products linked to MSCI indices, and asset-based fee run rate growth was 17% [7][8] Business Line Data and Key Metrics Changes - Subscription run rate growth was double-digit across banks, broker-dealers, wealth managers, hedge funds, and asset owners, with notable growth of 10% in banks and broker-dealers, 12% in hedge funds, and 17% in wealth managers [15][17][20] - The index and asset-based fee franchise was highlighted as a key growth engine, with total equity index ETF AUM linked to MSCI indices surpassing $2 trillion for the first time [9] - Private assets saw a run rate growth of nearly 13%, with significant product launches enhancing capabilities in private capital solutions [10][11] Market Data and Key Metrics Changes - MSCI captured more indexed equity ETF cash flows than any other index provider during the quarter, with total index ETF and non-ETF AUM balances tracking MSCI indices reaching $6 trillion [9] - Equity ETFs linked to MSCI indexes experienced $49 billion of inflows, capturing 29% of all inflows into indexed equity ETFs [26] - Subscription run rate growth for sustainability and climate solutions was 11%, with 18% growth in Europe [29] Company Strategy and Development Direction - MSCI is focused on expanding its capabilities in private assets and enhancing its integrated franchise to create powerful network effects for clients [12][14] - The company is adapting its tools to capture new opportunities in sustainability and climate, despite current cyclical slowdowns [13] - There is a strong emphasis on innovation and developing new solutions for diverse client segments, particularly in the fast money segment [8][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the rotation of assets from the U.S. market to international markets, which is expected to boost the asset-based fee business [36] - The company anticipates that the current dynamics in the market will persist for the next several quarters, with a focus on maintaining and enhancing retention rates [32][44] - Management acknowledged challenges in the active asset management industry but emphasized the potential for growth in non-active segments and the wealth management sector [42][65] Other Important Information - MSCI's retention rate for private assets remained stable at slightly over 91% [31] - The company is seeing promising growth potential among insurance companies for products supporting index-linked annuities and climate tools [24] - MSCI's guidance remains unchanged across all categories, indicating confidence in its financial model [32] Q&A Session Summary Question: Potential help from asset flows into international markets - Management noted that the rotation of assets from the U.S. to international markets is a significant boost for the asset-based fee business, with $6 trillion of client assets indexed to MSCI indices [36] Question: Accelerating growth in subscription business - Management indicated that to accelerate total subscription run rate, non-active asset managers need to grow faster, and they are focusing on creating new products and enhancing client engagement [42][44] Question: Impact of consolidation on results - Management acknowledged ongoing consolidation trends but expressed confidence that it would not significantly impact forecasts or pipelines [48] Question: Retention rates in analytics and sustainability - Management explained that retention rates can be lumpy and noted elevated cancels from hedge funds and corporate advisors, but overall retention with asset managers remains solid at around 96% [55] Question: Sales environment and outlook - Management characterized the sales environment as consistent with recent quarters, with a healthy pipeline of products and client engagement [60] Question: Demand for custom indexes - Management remains confident in the growth potential for custom indexes, despite slight fluctuations in quarterly numbers [70] Question: Positioning with active ETFs - Management highlighted significant growth opportunities in active ETFs, with ongoing dialogues with active asset managers and a focus on enhancing product offerings [75]