01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
SS&C Technologies Holdings, Inc. reported first-quarter 2025 total revenues of $1,513.9 milliona, up from $1,435.0 million in the prior-year period, an increase of 5.5%.
The company attributed the growth primarily to an increase of $72.8 millionb in organic revenue, led by its SS&C GlobeOp fund administration, Wealth and Investment Technologies, Global Investor and Distribution Solutions, and virtual data room businesses, plus $13.0 million from acquisitions, partly offset by $6.9 million of unfavorable foreign currency translation. Operating income rose to $357.9 million from $332.9 million, and net income attributable to SS&C common stockholders increased to $213.0 million from $157.6 million. Diluted earnings per share were $0.84 compared with $0.62 a year earlier.
The effective tax rate fell to 18.4% from 29.7%, which the company attributed mainly to higher recognition of windfall tax benefits from stock awards. Cash flow from operations was $272.2 millionc, compared with $180.5 million in the prior-year quarter. Capital returns were significant: the company repurchased 2.4 million shares for approximately $206.9 million and paid $61.6 million in dividends, at $0.25 per share.
Total debt was $6,857.0 milliond before unamortized issuance costs and discounts, versus $7,009.6 million at December 31, 2024, reflecting $175.0 million of debt repayments during the quarter. The company stated that it was in compliance with all financial and non-financial covenants, and the Revolving Credit Facility's consolidated net secured leverage ratio was 1.57x against a 6.25x covenant maximum. Balance sheet totals grew sharply, with total assets of $20,404.9 million and total liabilities of $13,545.1 million.
Much of the change reflects client funds: funds receivable and funds held on behalf of clients and the matching client funds obligations each rose to $4,560.4 million from $3,162.2 million. Management stated that cash on hand, operating cash flows and available credit should be sufficient to meet obligations for at least the next twelve months.
02—Key points
Key Highlights
- Total revenues rose 5.5% to $1,513.9 million, with software-enabled services up 6.9% to $1,269.9 million and license, maintenance and related revenues down 1.3% to $244.0 million.
- Operating income increased to $357.9 million from $332.9 million, and gross margin held at 49.3%.
- Net income attributable to SS&C common stockholders was $213.0 million, or $0.84 per diluted share, versus $157.6 million, or $0.62 per diluted share, a year earlier.
- The effective tax rate was 18.4%, down from 29.7%, mainly due to higher windfall tax benefits from stock awards.
- Operating cash flow was $272.2 million, up from $180.5 million, while the company repurchased $206.9 million of stock and paid $61.6 million in dividends.
- Debt was reduced to $6,857.0 million gross from $7,009.6 million, and the company reported compliance with all covenants, with a net secured leverage ratio of 1.57x against a 6.25x maximum.
- Total assets increased to $20,404.9 million, driven largely by a rise in client funds balances to $4,560.4 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, SS&C Technologies Holdings kept $0.14.
- Revenue$1.51B100.0%
- Cost of revenue−$766.8M50.7%
- Gross profit$747.1M49.3%
- Operating costs−$389.2M25.7%
- Operating income$357.9M23.6%
- Interest, other & tax−$144.9M9.6%
- Net income$213.0M14.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 30, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.51B$1.44B | +5.5% |
| Cost of Revenue | $766.80M$727.80M | +5.4% |
| Gross Profit | $747.10M$707.20M | +5.6% |
| R&D Expenses | $129.10M$120.90M | +6.8% |
| Operating Expenses | $389.20M$374.30M | +4.0% |
| Operating Income | $357.90M$332.90M | +7.5% |
| Interest Expense | $105.20M$116.00M | −9.3% |
| Net Income | $213.00M$157.60M | +35.2% |
| EPS (Basic) | $0.87$0.64 | +35.9% |
| EPS (Diluted) | $0.84$0.62 | +35.5% |
| Shares Outstanding (Basic) | 245.80M247.00M | −0.5% |
| Shares Outstanding (Diluted) | 254.90M253.30M | +0.6% |
05—Questions
Frequently Asked Questions
What drove the increase in SS&C's first-quarter 2025 revenue?
Revenues increased $78.9 million, or 5.5%, to $1,513.9 million. The company cited $72.8 million of organic growth from its SS&C GlobeOp fund administration, Wealth and Investment Technologies, Global Investor and Distribution Solutions, and virtual data room businesses, plus $13.0 million from acquisitions, partly offset by $6.9 million of unfavorable foreign currency translation.
Why did the effective tax rate decline so much?
The effective tax rate was 18.4% compared with 29.7% a year earlier. The company said the change was primarily due to an increase in recognition of windfall tax benefits from stock awards and a proportionate change in the composition of income from foreign and domestic jurisdictions.
How much did SS&C return to shareholders in the quarter?
The company repurchased 2.4 million shares of common stock for approximately $206.9 million and paid dividends of $0.25 per share totaling $61.6 million in March 2025. Approximately $338.1 million remained available under the prior repurchase program as of March 31, 2025.
Is SS&C in compliance with its debt covenants, and how much debt does it carry?
The company stated it was in compliance with all financial and non-financial covenants as of March 31, 2025. Its consolidated net secured leverage ratio was 1.57x against a 6.25x maximum covenant for the revolving credit facility. Total debt before unamortized issuance costs and discounts was $6,857.0 million, including $4,140.0 million of senior secured credit facilities, $2,000.0 million of 5.5% senior notes due 2027, and $750.0 million of 6.5% senior notes due 2032.
Why did the balance sheet grow so much in the quarter?
Funds receivable and funds held on behalf of clients increased to $4,560.4 million from $3,162.2 million, and the matching client funds obligations rose by the same amount. The Statement of Cash Flows shows a net increase of $1,200.4 million in client funds obligations during the quarter.
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