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Morningstar, Inc. Reports First-Quarter 2025 Financial Results
CHICAGO--(BUSINESS WIRE)-- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, posted first-quarter revenue growth with
About this update from Morningstar, Inc.
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nMorningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, posted first-quarter revenue growth with increases in operating and adjusted operating income and margins. The Company also accelerated its stock repurchases in the quarter.\n\n\"Growth in PitchBook and Morningstar Credit contributed to a strong start to 2025,\" said Kunal Kapoor, Morningstar's chief executive officer. \"We are supporting their growth and expanding our private credit and structured finance offerings with the acquisitions of Lumonic and DealX. While we remain focused on generating durable growth, the recent market volatility and increased economic uncertainty have caused us to be more cautious in our approach.\"\n\nThe Company's quarterly shareholder letter provides more context on its quarterly results and business performance and can be found at shareholders.morningstar.com.\n\nFirst-Quarter 2025 Financial Highlights\n\n\nReported revenue increased 7.2% to $581.9 million compared to the prior-year period; organic revenue grew 9.1%.\n\n\nReported operating income increased 23.2% to $114.1 million; adjusted operating income increased 22.2%.\n\n\nDiluted net income per share increased 22.1% to $1.82; adjusted diluted net income per share increased 28.9% to $2.23.\n\n\nCash provided by operating activities decreased 2.8% to $91.0 million. Free cash flow decreased 1.2% to $58.8 million.\n\n\nShare repurchases settled totaled 368,199 shares for $109.6 million.\n\n\nFirst-Quarter 2025 Results\n\nRevenue increased 7.2% to $581.9 million on a reported basis and 9.1% on an organic basis versus the prior-year period, driven by growth across most of the business. PitchBook and Morningstar Credit were the biggest contributors to reported and organic revenue growth.\n\nOperating expense increased 3.9% to $467.8 million versus the prior-year period. Excluding the impact of intangible amortization and M&A-related expenses, operating expense increased 3.4%.\n\nThe largest contributor to the growth in reported operating expense was an increase of $8.2 million in compensation costs, due in part to severance costs related to the announced sunsetting of Morningstar Office, as well as higher salaries and benefits related to the Company's annual merit increase. Higher depreciation, technology infrastructure, and adver...