01—Abstract
Summary
Summary of the 10-Q filed April 21, 2026. Cited figures are marked; the original filing is the authoritative source.
MSCI Inc. reported first-quarter 2026 operating revenues of $850.8 milliona, up from $745.8 million in the prior-year period, with net income of $406.0 million versus $288.6 million.
Diluted EPS was $5.53b compared with $3.71. Results were helped by an $88.0 million discrete tax benefit tied to completion of an internal legal entity restructuring, which drove the effective tax rate to (4.3)% from 12.8%. Operating income rose to $456.9 million from $377.0 million, and Adjusted EBITDA reached $504.7 million, a 59.3% Adjusted EBITDA margin.
Total Run Rate grew 12.7% to $3.36 billionc, with asset-based fees up 25.1%, and total net sales were $60.8 million. Balance sheet and capital allocation shifted notably during the quarter. Long-term debt rose to $6.40 billion from $6.20 billion, as the company borrowed $375.0 million and repaid $175.0 million.
Interest expense increased to $69.1 milliond from $46.5 million, driven by higher debt levels. The company repurchased $403.1 million of common stock and declared a $2.05 per share quarterly dividend, and shareholders' equity remained in deficit at $(2,774.1) million. Cash and equivalents fell to $385.3 million from $515.3 million.
The company closed the Vantager and Compass acquisitions for an aggregate purchase price of $71.4 million. Operating cash flow was $306.8 million, compared with $301.7 million a year earlier. Management stated that the company's Consolidated Leverage Ratio was 2.94:1.00 as of March 31, 2026, and that it had $1.7 billion of remaining repurchase authorization under the 2025 program.
02—Key points
Key Highlights
- Operating revenues rose 14.1% to $850.8 million, with the Index segment up 17.7% and asset-based fees up 26.6%.
- Net income increased 40.7% to $406.0 million, supported by an $88.0 million discrete tax benefit from an internal legal entity restructuring.
- Adjusted EBITDA increased to $504.7 million from $425.6 million, with a 59.3% Adjusted EBITDA margin.
- Total Run Rate reached $3.36 billion, up 12.7%, with recurring subscription Run Rate up 8.9% and asset-based fee Run Rate up 25.1%.
- Interest expense rose to $69.1 million from $46.5 million as total debt increased to $6.45 billion principal amount, including $500.0 million of revolver borrowings.
- The company repurchased $403.1 million of common stock in the quarter and has $1.7 billion of authorization remaining under its 2025 program.
- Shareholders' equity remained a deficit of $(2,774.1) million at March 31, 2026, with cash and equivalents of $385.3 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 21, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $850.80M$745.80M | +14.1% |
| R&D Expenses | $49.60M$47.60M | +4.2% |
| Operating Expenses | $393.90M$368.80M | +6.8% |
| Operating Income | $456.90M$377.00M | +21.2% |
| Net Income | $406.00M$288.60M | +40.7% |
| EPS (Basic) | $5.54$3.72 | +48.9% |
| EPS (Diluted) | $5.53$3.71 | +49.1% |
| Shares Outstanding (Basic) | 73.30M77.60M | −5.5% |
| Shares Outstanding (Diluted) | 73.40M77.80M | −5.7% |
05—Questions
Frequently Asked Questions
What drove the increase in MSCI's net income this quarter?
Net income rose to $406.0 million from $288.6 million, mainly due to higher operating income of $456.9 million versus $377.0 million, along with an $88.0 million discrete tax benefit recognized upon completing an internal legal entity restructuring. The effective tax rate was (4.3)% compared with 12.8% a year earlier.
How much debt does MSCI carry and how did it change?
Total debt principal was $6.45 billion at March 31, 2026, comprising $6.0 billion of senior unsecured notes and $500.0 million of revolving loans. Long-term debt carrying value rose to $6,403.8 million from $6,202.3 million, as the company borrowed $375.0 million and repaid $175.0 million during the quarter.
Which segment drove revenue growth?
The Index segment was the main driver, with operating revenues up 17.7% to $496.3 million, led by asset-based fees that rose 26.6%. Analytics revenues grew 10.3% and Sustainability and Climate revenues grew 8.6%, while All Other – Private Assets grew 7.9%.
What did MSCI return to shareholders this quarter?
The company repurchased $403.1 million of common stock held in treasury and paid $150.5 million in dividends. It declared a quarterly dividend of $2.05 per share, totaling $148.9 million, payable May 29, 2026. As of March 31, 2026, $1.7 billion of authorization remained under the 2025 Repurchase Program.
What acquisitions did MSCI complete and what did they cost?
MSCI completed the acquisitions of Vantager on February 27, 2026, and Compass Financial Technologies on March 2, 2026. The aggregate purchase price was $71.4 million, including $36.5 million of intangible assets and $42.7 million of goodwill, with contingent consideration having a fair value of $34.3 million at March 31, 2026.
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