01—Abstract
Summary
Summary of the 10-Q filed April 22, 2025. Cited figures are marked; the original filing is the authoritative source.
MSCI Inc. reported first-quarter 2025 operating revenues of $745.8 milliona, up 9.7% from $680.0 million in the prior-year quarter, with net income of $288.6 million (up 12.8%) and diluted EPS of $3.71 versus $3.22.
Adjusted EBITDA rose to $425.6 millionb from $383.6 million, and the Adjusted EBITDA margin was 57.1% versus 56.4%. Growth was led by the Index segment, where operating revenues rose 12.8% to $421.7 million, supported by asset-based fees up 18.1%. Total Run Rate reached $2.98 billion, up 9.3%, and the Retention Rate improved to 95.3% from 92.8%.
Cash flow from operations was $301.7 millionc, essentially flat with the prior year's $300.1 million. Share repurchases of $213.1 million and dividend payments of $143.8 million drove financing outflows, and cash and cash equivalents fell to $360.7 million at March 31, 2025 from $409.4 million at year-end 2024. Total debt was $4.57 billion principal, including $4.2 billion of senior notes and $371.9 million drawn on the revolving credit facility.
The Consolidated Leverage Ratio was 2.30:1.00 and the Consolidated Interest Coverage Ratio was 10.45:1.00 at quarter-end. The Board declared a quarterly dividend of $1.80d per share payable May 30, 2025, and $1.38 billion remained available under the 2024 Repurchase Program.
Shareholders' equity remained in deficit at $(958.6) million. BlackRock accounted for 10.3% of consolidated operating revenues.
02—Key points
Key Highlights
- Operating revenues of $745.8 million, up 9.7% year over year, with Index revenues up 12.8% to $421.7 million.
- Net income of $288.6 million, up 12.8%; diluted EPS of $3.71 versus $3.22 in the prior-year quarter.
- Adjusted EBITDA of $425.6 million versus $383.6 million, with an Adjusted EBITDA margin of 57.1% versus 56.4%.
- Total Run Rate of $2.98 billion, up 9.3%, including a 12.6% increase in Index asset-based fees; Retention Rate rose to 95.3% from 92.8%.
- Returned capital through $213.1 million of share repurchases and $143.8 million of dividend payments; $1.38 billion of repurchase authorization remains.
- Total debt principal of $4.57 billion; Consolidated Leverage Ratio of 2.30:1.00 against a maximum of 4.25:1.00.
- Quarterly dividend of $1.80 per share declared April 21, 2025, payable May 30, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 22, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $745.80M$679.97M | +9.7% |
| R&D Expenses | $47.60M$40.52M | +17.5% |
| Operating Expenses | $368.80M$340.58M | +8.3% |
| Operating Income | $377.00M$339.38M | +11.1% |
| Net Income | $288.60M$255.95M | +12.8% |
| EPS (Basic) | $3.72$3.23 | +15.2% |
| EPS (Diluted) | $3.71$3.22 | +15.2% |
| Shares Outstanding (Basic) | 77.60M79.19M | −2.0% |
| Shares Outstanding (Diluted) | 77.80M79.51M | −2.1% |
05—Questions
Frequently Asked Questions
What drove revenue growth in the quarter?
Operating revenues rose 9.7% to $745.8 million. The Index segment contributed most of the growth, with asset-based fees up 18.1% to $177.4 million, driven by higher average AUM in ETFs linked to MSCI equity indexes, which averaged $1.79 trillion in the quarter (up 18.9% from the prior-year quarter). Recurring subscriptions also grew 8.3% company-wide.
How did profitability and cash generation compare with the prior year?
Net income increased 12.8% to $288.6 million, and Adjusted EBITDA increased to $425.6 million. Net cash provided by operating activities was $301.7 million, compared with $300.1 million a year earlier. Cash and cash equivalents declined to $360.7 million at March 31, 2025, mainly because of share repurchases and dividend payments.
What is the company's leverage and debt position?
Total debt principal was $4.57 billion at March 31, 2025, consisting of $4.2 billion of senior unsecured notes and $371.9 million of revolving loans. The Consolidated Leverage Ratio was 2.30:1.00 and the Consolidated Interest Coverage Ratio was 10.45:1.00, both within the Credit Agreement's covenant requirements. No principal debt maturities fall before 2029.
How is the company returning capital to shareholders?
In the first quarter, MSCI repurchased 263,051 shares on the open market for $155.4 million at an average price of $590.60, and paid $143.8 million in dividends. The Board declared a $1.80 per share quarterly dividend for the second quarter, payable May 30, 2025. As of March 31, 2025, $1.38 billion of authorization remained under the 2024 Repurchase Program.
Are there any notable risks or items to watch?
The filing notes that BlackRock accounted for 10.3% of consolidated operating revenues, and 96.1% of its operating revenues came from asset-based fees. Operating expenses rose 8.3%, partly from higher severance costs. Unrecognized tax benefits increased by $23.1 million. Shareholders' equity remained in a deficit of $(958.6) million.
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