Msci Inc. · NYSE:MSCI
Msci — Q3 2025 Earnings Presentation
41 slides from Msci's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Third Quarter 2025 Earnings Presentation October 28, 2025 © 2025 MSCI Inc. All rights reserved.
Slide 2: Forward-Looking Statements
Introduction → Forward-Looking → This earnings presentation contains forward- looking statements within the meaning of the → Other factors that could materially affect actual results, levels of activity, performance Statements Private Securities Litigation Reform Act of 1995, including without limit
Slide 3: Other Information
Introduction → Other Information → Foreign currency exchange rate fluctuations reflect the difference between the current period → Percentage changes refer to the comparable period in 2024, unless otherwise noted. results as reported compared to the current → All financial figures for the three and
Slide 4: MSCI Third Quarter 2025 Earnings Call Participants
Introduction → MSCI Third Quarter 2025 Earnings Call Participants Henry Fernandez Baer Pettit Andy Wiechmann Jeremy Ulan Chairman & CEO President & COO Chief Financial Officer Head of IR & Treasurer 4
Slide 5: Financial & Strategic Highlights
Section 01 Financial & Strategic Highlights
Slide 6: 3Q25 Financial Results Snapshot
Financial & Strategic Highlights → 3Q25 Operating 3Q25 Operating As of Sep 30, 2025 As of Sep 30, 2025 Revenues (reported) Revenues (organic) Subscription Run Rate Subscription Run Rate 3Q25 Financial Growth (reported) Growth (organic) Results Snapshot +10% +9% +8% +7% 3Q25 Adjusted 3Q25 Operating 3
Slide 7: 3Q25 Regional Performance
Financial & Strategic Highlights → 3Q25 Regional Performance AMERICAS YoY EMEA YoY APAC YoY 3Q25 Recurring Subscription Run Rate by Region $1,070M +7% $919M +8% $397M +8% ORGANIC YoY ORGANIC YoY ORGANIC YoY $1,070M +7% $906M +7% $398M +9% 3Q25 Recurring Net New AMERICAS YoY EMEA YoY APAC YoY Subscri
Slide 8: 3Q25 Operating Highlights
Financial & Strategic Highlights → $3.2B 94.7% 3Q25 Operating Highlights of Total Run Rate across MSCI Quarterly Retention Rate Asset-Based Fees Total Run Rate Run Rate growth of 17.0%, driven by record AUM in ETF and non-ETF indexed funds US$ in millions +10% Organic +10% +12% Organic $3,187 +12% A
Slide 9: Significant Recurring Revenue Model with Global Client Base
Financial & Strategic Highlights → MSCI Subscription Run Rate as of 09/30/2025 by Geography Significant Recurring Revenue Model with Global Client Base • Americas 45% Operating Revenues Mix • EMEA 39% Quarter Ended 09/30/2025 • APAC 16% by Product Line by Type 2% Non-recurring 9% 2% All Other-Privat
Slide 10: Emerging Growth Opportunities
Financial & Strategic Highlights → Emerging Growth Opportunities Expanding in attractive additional addressable markets 09/30/2024 9/30/2025 Run Rate US$ in millions $462 $435 $269 $285 $157 $142 $158 $112 $130 $86 $95 $100 Sustainability Insurance1 Fixed Income2 Climate3 Wealth Management1 Private
Slide 11: 3Q25 Summary Financial Results
Financial & Strategic Highlights → US$ in thousands, For the Three Months Ended 3Q25 Summary except per share data September 30 Financial Results YoY% Unaudited 2025 2024 Change Operating revenues $ 793,426 $ 724,705 9.5% Operating income $ 447,690 $ 401,334 11.6% Operating margin % 56.4% 55.4% Net
Slide 12: 3Q25 Operating Revenues
Financial & Strategic Highlights → 3Q25 Operating Revenues US$ in millions Non-Recurring Revenues +11% Organic Asset-Based Fees Revenues +11% Recurring Subscription Revenues $451.2 +6% Organic $11.1 +8% Organic $404.9 +6% +5% Organic +10% $12.4 +8% $197.5 $182.2 $168.6 $172.4 $4.2 $3.9 $90.1 $70.0 $
Slide 13: 3Q25 Subscription Run Rate
Financial & Strategic Highlights → 3Q25 Subscription Run Rate US$ in millions Non-Market Cap Weighted Multi-Asset Class Analytics Sustainability & Climate Real Assets Custom Indexes Equity Analytics Private Capital Solutions Market Cap Weighted +9% Organic +7% Organic +9% +7% $988.1 YoY $906.8 $111.
Slide 14: Index Segment: Asset-Based Fees Details
Financial & Strategic Highlights → Index Segment: Asset-Based Fees Details US$ in millions US Futures and Options Average AUM EM Non-ETF1 Period-End Basis Point Fee DM ex US ETF1 +26% 2.44 2.44 2.43 2.43 2.41 +17% $2,211 YoY YoY $197.5 +17% $1,762 $553 $168.6 $14.2 -4% $14.7 $50.7 $473 +8% $582 +27%
Slide 15: 3Q25 QoQ AUM Drivers: MSCI-Linked Equity ETFs
Financial & Strategic Highlights → 3Q25 QoQ AUM Drivers: MSCI-Linked Equity ETFs By Geographic Exposure By Product US$ in billions US$ in billions $140.0 $140.0 EM $46.3 $2,211.0 Market Cap Weighted $106.6 $2,211.0 DM ex US $55.5 $38.2 Factors $11.7 $23.4 $18.4 $(8.0) $3.7 $21.7 $4.7 $50.7 $2,024.6
Slide 16: 3Q25 YoY AUM Drivers: MSCI-Linked Equity ETFs
Financial & Strategic Highlights → 3Q25 YoY AUM Drivers: MSCI-Linked Equity ETFs By Geographic Exposure $264.1 US$ in billions US $63.6 $2,211.0 DM ex US $128.7 EM $71.8 $53.5 $115.1 $16.5 $1,761.8 Cash inflows / (outflows) $185.1 3Q24 Ending AUM US Developed Markets ex. US Emerging Markets Markets
Slide 17: Market Movement and Momentum Continues in Cash Flows
Financial & Strategic Highlights → Market Movement and Momentum Positive annual cash inflows for all years in ETFs linked to MSCI indexes except 2013 in Cash Flows Continues US$ in billions 9M22: MSCI-linked equity ETF AUM 4Q18: MSCI-linked equity ETF AUM balance declined 26% vs Dec-21 amid balance
Slide 18: Listed Futures & Options Linked to MSCI Indexes
Financial & Strategic Highlights → Listed Futures & Options Linked to MSCI Indexes Run Rate From Listed Futures & Options Linked to MSCI Indexes Futures & Options Volume Linked to MSCI Indexes US$ in millions in millions of contracts traded1 25.2 25.2 24.9 25.1 $59.0 $58.2 $59.5 22.8 $57.0 $56.6 3Q2
Slide 19: Adjusted Earnings Per Share Growth Drivers
Financial & Strategic Highlights → Adjusted Earnings Per Share Growth Drivers Strong Business Performance, Higher Share Repurchase Driving Adjusted EPS Growth US$ in per share amounts Business Growth Capital Activities Tax and FX1 +15.8% $0.37 $0.05 $0.19 YoY $0.01 $(0.29) $0.18 $4.47 $0.12 $0.66 $(
Slide 20: Strong Balance Sheet Provides Optionality
Financial & Strategic Highlights → Strong Balance Sheet → In 3Q25, returned $1,363.1M to shareholders through share repurchases of $1,225.7M and quarterly dividends of $137.4M Provides Optionality → In August 2025, issued $1.25 billion in unsecured senior notes with a coupon rate of 5.250% and repai
Slide 21: Full-Year 2025 Guidance
Financial & Strategic Highlights → Current Guidance Prior Guidance Full-Year 2025 Guidance Operating Expense $1,415 to $1,445 million $1,405 to $1,445 million Adjusted EBITDA Expense $1,230 to $1,250 million $1,220 to $1,250 million MSCI's guidance for the year ending December 31, 2025 (“Full- Year
Slide 22: Q&A
Section 02 Q&A.
Slide 23: Additional Information
Section 03 Additional Information
Slide 24: Key Operating Metrics
Additional Information → Key Operating Metrics YoY Recurring Subscription Run Rate Growth (as Reported and Organic) Subscription Run Rate Growth as Reported Organic Subscription Run Rate Growth 18% 18% 18% 17% 16% 15% 14% 14% 14% 13% 12% 12% 12% 12% 11% 10% 10% 14% 14% 13% 8% 8% 9% 8% 12% 12% 12% 12
Slide 25: 3Q20 to 3Q25 YoY Run Rate Growth
Additional Information → 3Q20 to 3Q25 YoY Run Rate Growth Index Asset-Based Fees Run Rate Growth as reported Subscription Run Rate Growth as Reported 45% 49% 37% 27% 25% 13% 17% 15% 13% 14% 15% 16% 16% 15% 13% 17% 17% 12% 12% 12% 12% 10% 11% 11% 11% 11% 12% 12% 7% 11% 11% 9% 9% 9% 8% 9% 9% 9% -4% -7
Slide 26: 3Q20 to 3Q25 YoY Run Rate Growth
Additional Information → 3Q20 to 3Q25 YoY Run Rate Growth Sustainability & Climate Subscription Run Rate Growth as Reported Organic Subscription Run Rate Growth 50% 46% 47% 47% 42% 44% 42% 36% 37% 31% 46% 47% 30% 42% 44% 26% 39% 41% 25% 34% 20% 33% 33% 15% 16% 29% 14% 26% 10% 10% 11% 24% 22% 8% 16%
Slide 27: Geographic Market Exposures of MSCI-Linked ETFs Increasingly Diversified Over Time
Additional Information → Geographic Market Exposures of MSCI-Linked ETFs Increasingly Diversified Over Time Mix of MSCI linked equity ETF AUM balance by geographic exposure % US DM Ex US EM 22% 26% 26% 26% 25% 26% 30% 29% 29% 30% 27% 33% 32% 44% 44% 45% 46% 47% 58% 51% 46% 43% 49% 50% 51% 47% 53% 43
Slide 28: YoY Growth Across Sustainability and Climate Franchise
Additional Information → YoY Growth Across Sustainability Sustainability & Climate Run Rates Across all Segments1 US$ in millions and Climate Franchise Climate ABF Climate Subscription +10% Sustainability ABF Sustainability Subscription AUM in ETFs Linked to MSCI Sustainability and Climate Equity In
Slide 29: Long-term Targets
Additional Information → Long-term Targets Revenue Adj. EBITDA Adj. EBITDA Adj. EBITDA Growth Rate1 Expense Growth Rate Margin % Growth Rate High Single Digit Low to Low Double Digit High 50s to Low Double Digit Mid Teens Low Double Digit Low Double Digit High Single Digit Mid Single Digit Mid to Hi
Slide 30: Appendix
Section 04 Appendix
Slide 31: Use of Operating Metrics
Appendix → Use of Operating Metrics MSCI has presented supplemental key operating metrics as part of this earnings presentation, including Run Rate, Organic recurring subscription Run Rate growth is defined as the period-over-period growth in Run Rate, Retention Rate, subscription sales, subscriptio
Slide 32: Use of Non-GAAP Financial Measures
Appendix → Use of Non-GAAP Financial Measures MSCI has presented supplemental non-GAAP financial measures as part of this earnings presentation. Reconciliations are We believe adjusted net income and adjusted EPS are meaningful measures of the performance of MSCI provided in subsequent slides that r
Slide 33: Reconciliation of Net Income to Adjusted EBITDA
Appendix → Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Reconciliation In thousands Net income 2025 $ 325,386 2024 $ 280,901 2025 $ 917,636 2024 $ 803,613 of Net Income Provision for income taxes Other expense (income), net 71,122 51,182 76,035 44,398
Slide 34: Reconciliation of Net Income and Diluted EPS to Adjusted EPS
Appendix → Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Reconciliation In thousands, except per share data Net income 2025 $ 325,386 2024 $ 280,901 2025 $ 917,636 2024 $ 803,613 of Net Income Plus: Amortization of acquired intangible assets Plus: Acqui
Slide 35: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses
Appendix → Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (Unaudited) Three Months Ended Nine Months Ended Full-Year September 30, September 30, September 30, September 30, In thousands 2025 2024 2025 2024 Outlook(1) Total operating expenses $345,736 $323,371 $1,061,984 $989,295 $1
Slide 36: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Appendix → Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited) Three Months Ended Nine Months Ended Full-Year September 30, September 30, September 30, September 30, Outlook(1) In thousands 2025 2024 2025 2024 Net cash provided by operating activities $449,441 $
Slide 37: Q3 2025 Reconciliation of Operating Revenue Growth
Appendix → Comparison of the Three Months Ended September 30, 2025 and 2024 Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Q3 2025 Index Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 11.4 % 8.3 % 17.1 % (10.1)% Impact of foreig
Slide 38: Nine Months Reconciliation of Operating Revenue Growth
Appendix → Comparison of the Nine Months Ended September 30, 2025 and 2024 Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Nine Months Index Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 11.2 % 8.8 % 15.9 % (6.7)% Impact of fore
Slide 39: MSCI Client Classification Framework
Additional Information MSCI Client Classification Framework
Slide 40: MSCI Subscription Run Rate 2024-3Q25
MSCI Subscription 4% 4% 4% 4% 4% 4% 4% Run Rate 2024-3Q25 Asset Managers 4% 4% 4% 4% 4% 4% 4% 6% 6% 6% 7% Banking & Brokerages 7% 7% 7% Asset Owners MSCI has updated its client segmentation framework in 3Q 9% 10% 10% 10% 10% 10% 10% 2025 to enhance client servicing and reporting framework.
Slide 41: 3Q25 MSCI Subscription Run Rate by Client Segment and Product Line
3Q25 MSCI Subscription Run Rate by Client Segment and Product Line 1% 1% 4% 4% 3% 2% 7% 7% 3% 3% 5% 5% 13% 12% 7% 7% 8% 9% 5% 5% 8% 8% 18% 20% 2% 3% 11% 12% 2% 2% 5% 5% 5% 4% 15% 15% 18% 19% 10% 10% 36% 37% Asset Managers 11% 11% 19% 19% Banking & Brokerages 8% Asset Owners 8% Hedge Fund Man