01—Abstract
Summary
Summary of the 10-Q filed July 22, 2025. Cited figures are marked; the original filing is the authoritative source.
MSCI Inc. reported operating revenues of $772.7 milliona for the three months ended June 30, 2025, up 9.1% from $707.9 million a year earlier, and $1.52 billion for the six months, up 9.4%.
Operating income rose to $425.2 million for the quarter and net income to $303.7 millionb, up 13.8%. Diluted EPS was $3.92 for the quarter versus $3.37 in the prior-year period. Growth was led by the Index segment, where asset-based fees rose 12.7% for the quarter, and total Run Rate reached $3.11 billion, up 10.7%, with organic Run Rate growth of 9.6%.
The balance sheet shows total assets of $5.37 billionc and a shareholders' deficit of $886.2 million, reflecting ongoing capital returns. Long-term debt was $4.51 billion, against $4.20 billion of senior notes and $337.0 million drawn on the revolving credit facility. Cash and cash equivalents declined to $347.3 million from $409.4 million at year-end 2024.
Operating cash flow was $637.9 milliond for the six months. The company repurchased $351.6 million of stock and paid $283.5 million in dividends during the period, and remaining buyback authorization was $1.25 billion. Management cited higher compensation and benefits costs from increased headcount and severance, along with higher information technology costs, as drivers of expense growth.
The Consolidated Leverage Ratio was 2.24:1.00 and the Consolidated Interest Coverage Ratio was 10.70:1.00 as of June 30, 2025. The company declared a $1.80 quarterly dividend and is evaluating the impact of H.R. 1, the One Big Beautiful Bill Act, signed July 4, 2025.
02—Key points
Key Highlights
- Operating revenues rose 9.1% to $772.7 million in Q2 2025; net income rose 13.8% to $303.7 million.
- Diluted EPS was $3.92 for Q2 2025, compared with $3.37 in Q2 2024.
- Total Run Rate reached $3.11 billion, up 10.7% (9.6% organic), with Index asset-based fees Run Rate up 17.1%.
- Adjusted EBITDA was $474.4 million in Q2 2025, with an Adjusted EBITDA margin of 61.4%.
- The company returned capital through $351.6 million of share repurchases and $283.5 million of dividends in the first six months of 2025, with $1.25 billion of repurchase authorization remaining.
- Total debt principal was $4.54 billion; the Consolidated Leverage Ratio was 2.24:1.00 and the Consolidated Interest Coverage Ratio was 10.70:1.00 at June 30, 2025.
- Total shareholders' deficit was $886.2 million, and cash and cash equivalents declined to $347.3 million from $409.4 million at December 31, 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 22, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $772.70M$707.95M | +9.1% |
| R&D Expenses | $44.10M$41.07M | +7.4% |
| Operating Expenses | $347.40M$325.34M | +6.8% |
| Operating Income | $425.30M$382.61M | +11.2% |
| Net Income | $303.70M$266.76M | +13.8% |
| EPS (Basic) | $3.92$3.37 | +16.3% |
| EPS (Diluted) | $3.92$3.37 | +16.3% |
| Shares Outstanding (Basic) | 77.40M79.08M | −2.1% |
| Shares Outstanding (Diluted) | 77.50M79.25M | −2.2% |
05—Questions
Frequently Asked Questions
How did MSCI's revenue and profitability perform in the second quarter of 2025?
Operating revenues were $772.7 million, up 9.1% from $707.9 million, and operating income was $425.2 million versus $382.6 million a year earlier. Net income was $303.7 million, up 13.8%, and diluted EPS was $3.92 versus $3.37.
What drove growth in the Index segment?
Index operating revenues rose 9.5% to $434.8 million for the quarter, primarily driven by asset-based fees, which increased 12.7%. Operating revenues from ETFs linked to MSCI equity indexes increased 16.1%, mainly on higher average AUM.
What is MSCI's debt and liquidity position?
At June 30, 2025, the company had $4.20 billion of senior notes and $337.0 million drawn on its $1.25 billion revolving credit facility, which matures January 26, 2029. Cash and cash equivalents were $347.3 million, and the filing states that cash flows from operations and existing resources are expected to be sufficient for at least the next 12 months.
What are the main drivers of rising operating expenses?
Total operating expenses rose 6.8% for the quarter to $347.4 million. Management attributed the increase mainly to higher compensation and benefits costs from increased headcount and higher severance costs, along with higher information technology costs and professional fees.
How is MSCI returning capital to shareholders?
In the first six months of 2025, MSCI repurchased $351.6 million of common stock and paid $283.5 million in dividends. The Board declared a $1.80 quarterly dividend for the third quarter of 2025, payable August 29, 2025, and $1.25 billion remained under the 2024 Repurchase Program as of June 30, 2025.
06—Continue