MSCI 8-K — Smart Summary

MSCI Inc. reported Q4 and full-year 2025 financial results on January 28, 2026, reflecting strong revenue and earnings growth across all segments. Q4 2025 operating revenues rose 10.6% to $822.5 million, with full-year revenues up 9.7% to $3.13 billion. The filing also covers Item 2.02 results of operations, with Exhibit 99.1 providing detailed financial and segment data.

• Q4 2025 operating revenues: $822.5 million, up 10.6% YoY; organic growth 10.2%
• Full-year 2025 operating revenues: $3.13 billion, up 9.7% YoY; organic growth 9.3%
• Q4 2025 operating income: $463.6 million, up 14.4% YoY; operating margin 56.4% vs. 54.5% prior year
• Full-year 2025 operating income: $1.71 billion, up 12.1% YoY; operating margin 54.7% vs. 53.5% prior year
• Q4 2025 net income: $284.7 million, down 6.8% YoY (driven by higher effective tax rate of 26.8% vs. 15.9% due to discrete tax item from internal legal entity restructuring)
• Full-year 2025 net income: $1.20 billion, up 8.4% YoY
• Q4 2025 diluted EPS: $3.81, down 2.3% YoY; Adjusted EPS: $4.66, up 11.5% YoY
• Full-year 2025 diluted EPS: $15.69, up 11.7% YoY; Adjusted EPS: $17.28, up 13.7% YoY (11th consecutive year of double-digit adjusted EPS growth)
• Q4 2025 Adjusted EBITDA: $512.0 million, up 13.2% YoY; Adjusted EBITDA margin: 62.2% vs. 60.8% prior year
• Full-year 2025 Adjusted EBITDA: $1.91 billion, up 11.1% YoY; Adjusted EBITDA margin: 60.8% vs. 60.1% prior year
• Q4 2025 net cash provided by operating activities: $501.1 million, up 16.4% YoY
• Full-year 2025 net cash provided by operating activities: $1.59 billion, up 5.8% YoY
• Q4 2025 free cash flow (non-GAAP): $464.8 million, up 17.8% YoY
• Full-year 2025 free cash flow (non-GAAP): $1.46 billion, up 5.2% YoY

• Index: Q4 revenues $479.1 million, up 14.0% (organic 14.0%); recurring subscriptions up 7.8%, asset-based fees up 20.7%, non-recurring up 28.2%; full-year revenues $1.79 billion, up 11.9%; Q4 Adjusted EBITDA margin 78.1% vs. 76.9% prior year
• Analytics: Q4 revenues $182.3 million, up 5.5% (organic 5.5%); recurring subscriptions up 7.1%, non-recurring down 46.1%; full-year revenues $714.4 million, up 5.8%; Q4 Adjusted EBITDA margin 46.0% vs. 48.7% prior year
• Sustainability and Climate: Q4 revenues $90.3 million, up 5.9% (organic 3.1%); recurring subscriptions up 6.1%; full-year revenues $353.9 million, up 8.4%; Q4 Adjusted EBITDA margin 42.3% vs. 34.8% prior year
• All Other – Private Assets: Q4 revenues $70.9 million, up 8.4% (organic 6.6%); recurring subscriptions up 9.4%; full-year revenues $279.3 million, up 8.1%; Q4 Adjusted EBITDA margin 22.5% vs. 23.4% prior year
• Total Run Rate as of December 31, 2025: $3.30 billion, up 13.0% (organic 11.9%); Index Run Rate $1.87 billion (+16.2%), Analytics $757.4 million (+8.4%), Sustainability and Climate $378.1 million (+10.0%), All Other – Private Assets $292.0 million (+9.5%)
• Total Retention Rate: 93.4% in Q4 2025 vs. 93.1% in Q4 2024; full-year 94.4% vs. 93.7%

• Cash and cash equivalents: $515.3 million as of December 31, 2025 (vs. $409.4 million as of December 31, 2024); target minimum cash balance of $225 to $275 million for general operating purposes
• Total principal debt outstanding: $6.2 billion as of December 31, 2025; total debt/net income ratio 5.2x; total debt/Adjusted EBITDA ratio 3.3x (target range 3.0x–3.5x)
• On November 6, 2025, issued $500.0 million aggregate principal of 5.15% Senior Unsecured Notes due March 15, 2036
• Share repurchases: In full-year 2025 and through January 27, 2026, a total of $2,470.0 million or 4,411,907 shares repurchased at an average price of $559.85; $2.1 billion remains on outstanding repurchase authorization as of January 27, 2026
• Weighted average diluted shares outstanding: 74.7 million in Q4 2025, down 4.7% YoY; total shares outstanding as of December 31, 2025: 73.6 million
• Dividends paid in Q4 2025: approximately $134.7 million; Board declared Q1 2026 cash dividend of $2.05 per share (up 13.9%), payable February 27, 2026 to shareholders of record as of February 13, 2026

• "In the fourth quarter, MSCI delivered strong results while achieving a number of key milestones, including our 11th straight year of double-digit adjusted EPS growth, a record asset-based-fee run rate driven by record inflows into ETF products linked to our indexes, and our best-ever quarter for recurring sales in Index." — Henry A. Fernandez, Chairman and CEO
• "MSCI's deep-rooted competitive advantages have helped us build momentum across product lines and client segments. With emerging client segments, in particular, we are doubling down on key opportunities while reinforcing our role as the essential intelligence layer of global investing. As a result, MSCI is well positioned to benefit from AI and use it to increase the value of our solutions." — Henry A. Fernandez, Chairman and CEO

• Full-year 2026 operating expense guidance: $1,490 to $1,530 million
• Full-year 2026 Adjusted EBITDA expense guidance: $1,305 to $1,335 million
• Full-year 2026 interest expense (including amortization of financing fees): $274 to $280 million
• Full-year 2026 depreciation & amortization expense: $185 to $195 million
• Full-year 2026 effective tax rate: 18.0% to 20.0% (excludes ~$88 million discrete tax benefit expected from subsequent phases of internal legal entity restructuring)
• Full-year 2026 capital expenditures: $160 to $170 million
• Full-year 2026 net cash provided by operating activities: $1,640 to $1,690 million
• Full-year 2026 free cash flow: $1,470 to $1,530 million