MSCI Inc. Reports Financial Results for Q2 and Six Months 2025

MSCI Inc., a leading provider of critical decision support tools and services for the global investment community, has released its financial results for the second quarter and the first six months of 2025. The company has shown robust performance across various financial metrics, reflecting its strong market position and operational efficiency.

Financial Highlights

For the second quarter of 2025, MSCI reported operating revenues of $772.7 million, marking a 9.1% increase compared to the same period in 2024. The company's diluted EPS rose by 16.3% to $3.92, while adjusted EPS increased by 14.6% to $4.17. The operating margin stood at 55.0%, and the adjusted EBITDA margin was 61.4%.

Over the first six months of 2025, MSCI's operating revenues reached $1.52 billion, up 9.4% from the previous year. The net income for this period was $592.3 million, a 13.3% increase year-over-year. The company also reported an adjusted EBITDA of $900.0 million, up 10.6% from the first half of 2024.

Business and Operational Highlights

MSCI's recurring subscription revenues grew by 7.9%, while asset-based fees saw a significant increase of 12.7%. The company's retention rate remained high at 94.4%. In terms of share repurchases, MSCI bought back 250,818 shares for $131.2 million at an average price of $523.20 per share. Additionally, the company paid approximately $139.3 million in dividends to shareholders in the second quarter of 2025.

Strategic Initiatives and Corporate Developments

MSCI continues to expand its solutions to support various use cases and develop new solutions for a diverse client base. The company has maintained a resilient financial model and integrated products that offer scalability, depth, and innovation. Notably, MSCI declared a cash dividend of $1.80 per share for the third quarter of 2025, payable on August 29, 2025.

Management's Perspective

Henry A. Fernandez, Chairman and CEO of MSCI, highlighted the company's strong financial performance and the growth in asset-based fees driven by record AUM levels in ETF products linked to MSCI indexes. Fernandez emphasized the company's expansion across all client segments and the development of new solutions to meet the needs of an increasingly diverse client base.

Future Outlook

For the full year 2025, MSCI has provided guidance with operating expenses expected to be between $1,405 and $1,445 million. Adjusted EBITDA expenses are projected to range from $1,220 to $1,250 million. The company anticipates net cash provided by operating activities to be between $1,525 and $1,575 million, with free cash flow expected to be in the range of $1,400 to $1,460 million.

SEC Filing: MSCI Inc. [ MSCI ] - 8-K - Jul. 22, 2025