How did MSCI perform in the fourth quarter of 2025?

Operating revenues were $822.5 million, up 10.6%, and operating income was $463.6 million, up 14.4%. Adjusted EBITDA was $512.0 million, up 13.2%, with an adjusted EBITDA margin of 62.2%. Diluted EPS fell 2.3% to $3.81, but adjusted EPS rose 11.5% to $4.66.

What drove the decline in net income?

Net income was $284.7 million, down 6.8%. Other expense (income), net rose to $74.8 million from $41.8 million, driven by higher interest expense on higher debt levels and an $11.8 million loss from the full write-off of a minority investee investment. The effective tax rate increased to 26.8% from 15.9%, primarily due to a 9.6% impact from a deferred intercompany gain tied to an internal legal entity restructuring.

What is MSCI's 2026 outlook?

For full-year 2026, MSCI guided to operating expenses of $1.49 billion to $1.53 billion, adjusted EBITDA expenses of $1.305 billion to $1.335 billion, interest expense of $274 million to $280 million, capital expenditures of $160 million to $170 million, and free cash flow of $1.47 billion to $1.53 billion. The guidance is subject to macroeconomic and capital markets assumptions, and the company expects a discrete tax benefit of approximately $88 million from its restructuring.

How is MSCI managing its debt and capital returns?

Total debt principal was $6.2 billion at December 31, 2025, with a debt-to-adjusted-EBITDA ratio of 3.3x, within the company's 3.0x to 3.5x target range. In 2025 and through January 27, 2026, the company repurchased $2.47 billion of shares, and $2.1 billion remained on the authorization. The Board declared a Q1 2026 dividend of $2.05 per share, payable February 27, 2026.

What do the Run Rate and Retention metrics indicate?

Total Run Rate was $3.30 billion at December 31, 2025, up 13.0%, with organic recurring subscription Run Rate growth of 7.7%. Asset-based fees Run Rate rose 25.6%, driven by Index products. The full-year Retention Rate was 94.4%, compared with 93.7% in 2024, indicating improved stability of the recurring revenue base.

MSCI 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 28, 2026. Cited figures are marked; the original filing is the authoritative source.

MSCI Inc. reported fourth-quarter and full-year 2025 results on January 28, 2026, furnishing a press release as Exhibit 99.1.

For Q4 2025, operating revenues were $822.5 million^a, up 10.6%, with organic operating revenue growth of 10.2%. Operating margin was 56.4% and adjusted EBITDA margin was 62.2%. Diluted EPS was $3.81, down 2.3%, while adjusted EPS rose 11.5% to $4.66.

For full-year 2025, operating revenues were $3.13 billion^b, up 9.7%, and diluted EPS was $15.69, up 11.7%. Adjusted EPS was $17.28, up 13.7%. Net income for Q4 declined 6.8%, reflecting higher interest expense and an $11.8 million loss from the full write-off of a minority investment, along with a higher effective tax rate tied to an internal legal entity restructuring.

Total Run Rate reached $3.30 billion^c at December 31, 2025, up 13.0%, with the Index segment's asset-based fees Run Rate up 25.6%. Total Retention Rate for the full year was 94.4%, compared with 93.7% in the prior year. Free cash flow for Q4 was $464.8 million, and full-year free cash flow was $1.46 billion.

Total debt principal was $6.2 billion^d, and the company's debt-to-adjusted-EBITDA ratio was 3.3x, within its 3.0x to 3.5x target range. For 2026, MSCI guided to operating expenses of $1.49 billion to $1.53 billion, adjusted EBITDA expenses of $1.305 billion to $1.335 billion, and free cash flow of $1.47 billion to $1.53 billion.

The board declared a first-quarter 2026 dividend of $2.05 per share, an increase of 13.9%. The company also expects a discrete tax benefit of approximately $88 million in 2026 from the restructuring, which is excluded from non-GAAP measures.

02—Key points

Key Highlights

Q4 2025 operating revenues of $822.5 million, up 10.6% (organic growth 10.2%); full-year operating revenues of $3.13 billion, up 9.7%
Q4 adjusted EPS of $4.66, up 11.5%, marking the company's 11th straight year of double-digit adjusted EPS growth as stated by management; Q4 diluted EPS of $3.81, down 2.3%
Total Run Rate of $3.30 billion, up 13.0%; Index asset-based fees Run Rate up 25.6%, driven by higher AUM in ETFs linked to MSCI equity indexes
Full-year Retention Rate of 94.4%, up from 93.7%; Q4 Retention Rate of 93.4%
Q4 net income fell 6.8% to $284.7 million, affected by higher interest expense, an $11.8 million loss on a minority investee write-off, and a higher effective tax rate of 26.8%
2026 guidance includes free cash flow of $1.47 billion to $1.53 billion and adjusted EBITDA expenses of $1.305 billion to $1.335 billion
Quarterly dividend declared at $2.05 per share for Q1 2026, an increase of 13.9%; $2.1 billion remains on the share repurchase authorization

03—Questions

Frequently Asked Questions

How did MSCI perform in the fourth quarter of 2025?
Operating revenues were $822.5 million, up 10.6%, and operating income was $463.6 million, up 14.4%. Adjusted EBITDA was $512.0 million, up 13.2%, with an adjusted EBITDA margin of 62.2%. Diluted EPS fell 2.3% to $3.81, but adjusted EPS rose 11.5% to $4.66.
What drove the decline in net income?
Net income was $284.7 million, down 6.8%. Other expense (income), net rose to $74.8 million from $41.8 million, driven by higher interest expense on higher debt levels and an $11.8 million loss from the full write-off of a minority investee investment. The effective tax rate increased to 26.8% from 15.9%, primarily due to a 9.6% impact from a deferred intercompany gain tied to an internal legal entity restructuring.
What is MSCI's 2026 outlook?
For full-year 2026, MSCI guided to operating expenses of $1.49 billion to $1.53 billion, adjusted EBITDA expenses of $1.305 billion to $1.335 billion, interest expense of $274 million to $280 million, capital expenditures of $160 million to $170 million, and free cash flow of $1.47 billion to $1.53 billion. The guidance is subject to macroeconomic and capital markets assumptions, and the company expects a discrete tax benefit of approximately $88 million from its restructuring.
How is MSCI managing its debt and capital returns?
Total debt principal was $6.2 billion at December 31, 2025, with a debt-to-adjusted-EBITDA ratio of 3.3x, within the company's 3.0x to 3.5x target range. In 2025 and through January 27, 2026, the company repurchased $2.47 billion of shares, and $2.1 billion remained on the authorization. The Board declared a Q1 2026 dividend of $2.05 per share, payable February 27, 2026.
What do the Run Rate and Retention metrics indicate?
Total Run Rate was $3.30 billion at December 31, 2025, up 13.0%, with organic recurring subscription Run Rate growth of 7.7%. Asset-based fees Run Rate rose 25.6%, driven by Index products. The full-year Retention Rate was 94.4%, compared with 93.7% in 2024, indicating improved stability of the recurring revenue base.

04—Continue

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