MSCI 8-K — Smart Summary

MSCI Inc. reported first quarter 2026 financial results on April 21, 2026, for the three months ended March 31, 2026. Operating revenues grew 14.1% year-over-year to $850.8 million, driven by strong asset-based fee growth of 26.6% and recurring subscription revenue growth of 8.6%. The company maintained its Full-Year 2026 guidance unchanged across all guidance items.

• Operating revenues: $850.8 million, up 14.1% YoY; organic operating revenue growth of 13.3%
• Operating income: $456.9 million, up 21.2% YoY; operating margin of 53.7% vs. 50.6% in Q1 2025
• Net income: $406.0 million, up 40.7% YoY (benefited from $88 million discrete tax benefit related to internal legal entity restructuring)
• Diluted EPS: $5.53, up 49.1% YoY; Adjusted EPS: $4.55, up 13.8% YoY
• Adjusted EBITDA: $504.7 million, up 18.6% YoY; Adjusted EBITDA margin of 59.3% vs. 57.1% in Q1 2025
• Net cash provided by operating activities: $306.8 million, up 1.7% YoY
• Free cash flow: $278.0 million, up 3.4% YoY; Capex: $28.8 million

• Index: revenues $496.3 million, up 17.7% (organic 17.6%); recurring subscriptions $254.2 million (+9.0%), asset-based fees $224.5 million (+26.6%); Adjusted EBITDA $375.2 million (+20.4%), margin 75.6%
• Analytics: revenues $190.0 million, up 10.3% (organic 10.5%); recurring subscriptions $183.2 million (+7.9%); Adjusted EBITDA $82.8 million (+8.9%), margin 43.6%
• Sustainability and Climate: revenues $91.9 million, up 8.6% (organic 3.7%); recurring subscriptions $90.9 million (+9.9%); Adjusted EBITDA $33.0 million (+38.7%), margin 35.9%
• All Other – Private Assets: revenues $72.6 million, up 7.9% (organic 5.3%); recurring subscriptions $71.9 million (+7.6%); Adjusted EBITDA $13.7 million (-3.5%), margin 18.9%
• Total Run Rate at March 31, 2026: $3,357.3 million, up 12.7%; organic recurring subscription Run Rate growth of 8.2%; Retention Rate 95.4%

• Cash and cash equivalents: $385.3 million as of March 31, 2026 (vs. $515.3 million as of December 31, 2025); MSCI targets minimum cash balances of approximately $225.0 million to $275.0 million
• Total principal amount of debt outstanding: $6.5 billion as of March 31, 2026; total debt to adjusted EBITDA ratio of 3.2x (target range 3.0x to 3.5x)
• Share repurchases: in Q1 2026 and through April 20, 2026, a total of $464 million or 835,591 shares were repurchased at an average repurchase price of $555.61; approximately $1.7 billion remains available on the outstanding share repurchase authorization as of April 20, 2026
• Weighted average diluted shares outstanding: 73.4 million in Q1 2026, down 5.7% YoY; total shares outstanding as of March 31, 2026 were 72.9 million
• Dividends paid: approximately $150.1 million in Q1 2026; MSCI Board declared a cash dividend of $2.05 per share for Q2 2026, payable May 29, 2026 to shareholders of record as of May 15, 2026

• "In the first quarter MSCI delivered strong financial and operating metrics, including a record asset-based-fee run rate and our best Q1 of recurring net-new subscription sales since 2022. Among product lines and client segments, we posted record levels of Q1 recurring sales in both Index and Analytics, along with our best-ever Q1 recurring net-new sales with hedge funds and with banks and broker-dealers," said Henry A. Fernandez, Chairman and CEO of MSCI.
• "These results affirmed MSCI's foundational, mission-critical role in global capital markets, which is also reflected in the growing liquidity and scale of the investment ecosystem linked to our indexes and IP. The sales momentum we have achieved cuts across regions, product lines, client segments and asset classes, and we are building on it through relentless, AI-fueled product innovation," Fernandez added.

• Full-Year 2026 guidance unchanged from prior guidance across all items
• Operating Expense: $1,490 to $1,530 million
• Adjusted EBITDA Expense: $1,305 to $1,335 million
• Interest Expense (including amortization of financing fees): $274 to $280 million
• Depreciation & Amortization Expense: $190 to $200 million
• Effective Tax Rate: 18.0% to 20.0% (excluding impact of multi-phase internal legal entity restructuring)
• Capital Expenditures: $160 to $170 million
• Net Cash Provided by Operating Activities: $1,640 to $1,690 million
• Free Cash Flow: $1,470 to $1,530 million