Slide 1: Third Quarter 2025 Earnings Call
Third Quarter 2025 Earnings Call October 22,,2025
Slide 2: Shivani Kak, Head of Investor Relations
Shivani Kak HEAD OF INVESTOR RELATIONS Third Quarter 2025 - Earnings Call 2
Slide 3: Disclaimer
Disclaimer Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, as
Slide 4: Rob Fauber, President and Chief Executive Officer
Rob Fauber PRESIDENT AND CHIEF EXECUTIVE OFFICER Third Quarter 2025 - Earnings Call 4
Slide 5: Key Takeaways
Key Takeaways Earnings power on full display: 22% Adjusted Diluted EPS1 growth amid record 1 revenue performance → Quarterly revenue surpassed $2B for the first time, up 11% year-over-year → Adjusted Operating Margin1 expanded 510bps to 52.9% Highest ever quarterly revenue for MIS revenue: $1.1B 2 →
Slide 6: MIS: capturing structural growth across markets
MIS: capturing structural growth across markets Refinancing walls approximately doubled since 2018 REFUNDING WALL1 EXCEEDS $5T FUNDING DEEP CURRENTS 10% CAGR PRIVATE $4.9T $5.2T CREDIT $4.4T $2.6T DATACENTER INFRASTRUCTURE & DIGITAL FINANCE // Jan '18 Sep '23 Sep '24 Sep '25 SUSTAINABLE & Investment
Slide 7: MA: delivered 400bps of margin expansion in 3Q
MA: delivered 400bps of margin expansion in 3Q Executing at scale: strong recurring revenue growth and significant margin expansion 9% 96% 93% 34.3% REVENUE RECURRING RETENTION ADJUSTED GROWTH1 REVENUE2 RATE3 OPERATING MARGIN4 8% ARR GROWTH 5 10% 8% 7% Decision Research Data & Solutions & Insights I
Slide 8: MCO: powerful secular trends paired with strong execution underpin our financial outlook
MCO: powerful secular trends paired with strong execution underpin our financial outlook1 Adjusted Adjusted Revenue Growth1 High-single-digit % Operating Approx. 51% Diluted $14.50 to $14.75 Margin1,2 EPS1,2 Dynamic capital Heightened awareness Increasing need to Ongoing digital Productivity markets
Slide 9: Noémie Heuland, Chief Financial Officer
Noémie Heuland CHIEF FINANCIAL OFFICER Third Quarter 2025 - Earnings Call 9
Slide 10: MIS: Agency of Choice delivered record revenue
MIS: Agency of Choice delivered record revenue REVENUE ISSUANCE2 $1,098 YoY $1,764 Change $1,537 15% $982 12% $161 Billions 5% $154 $208 22% $170 Millions $146 $135 8% 3Q24 3Q25 ADJUSTED OPERATING MARGIN $515 $576 12% 65.2% 59.6% 560 bps 3Q24 3Q25 CFG SFG FIG PPIF MIS Other 1 3Q24 3Q25 1. MIS Other
Slide 11: Issuance: raising MIS-rated issuance guidance
Issuance: raising MIS-rated issuance guidance FY 2025 ISSUANCE GUIDANCE1,2 KEY DRIVERS & ASSUMPTIONS As of July 23, 2025 As of October 22, 2025 → Positive 3Q market conditions expected to Total MIS Rated Issuance Increase of MSD % continue into 4Q; spreads to remain around historical lows Investment
Slide 12: MA: executing with discipline, growing at scale
MA: executing with discipline, growing at scale Strong momentum driven by double-digit increase in recurring revenue1 $909M $3.4B REVENUE2,3 ARR1,4 Flat 7% Banking 11% DECISION SOLUTIONS 10% Banking 16% 8% Insurance 7% RESEARCH & INSIGHTS 8% Insurance 19% 9% DATA & INFORMATION 7% 16% KYC KYC 9% TOTA
Slide 13: MIS & MA: select increases to full year 2025 guidance
MIS & MA: select increases to full year 2025 guidance1 AS OF JULY 23, 2025 AS OF OCTOBER 22, 2025 MOODY’S INVESTORS SERVICE Decrease in the low-single-digit to Increase in the mid-single-digit Issuance2 mid-single-digit percent range percent range Increase in the low-single-digit to Increase in the
Slide 14: MCO: select increases to full year 2025 guidance
MCO: select increases to full year 2025 guidance1 AS OF JULY 23, 2025 AS OF OCTOBER 22, 2025 MOODY’S CORPORATION Increase in the mid-single-digit percent Increase in the high-single-digit Revenue range percent range Increase in the low-to-mid-single-digit Operating Expenses No change percent range A
Slide 15: Questions and Answers
Rob Fauber Questions and PRESIDENT AND CHIEF EXECUTIVE OFFICER Answers Noémie Heuland CHIEF FINANCIAL OFFICER Third Quarter 2025 - Earnings Call 15
Slide 16: Supplemental Information
Supplemental Information Third Quarter 2025 - Earnings Call 16
Slide 17: Best in Class Data, Analytics and Software
Best in Class Lending & Underwriting ESG & Climate Data, Analytics Origination Portfolio Mgmt. Assessment and Software Regulatory Investment Compliance Analysis KYC Solutions Decision Data & Solutions Research & Information Insights Other Economic Proprietary Forecasts Data & Models Private & Models
Slide 18: MA: building on a foundation of strong customer retention
MA: building on a foundation of strong customer retention MA ARR1 GROWTH ATTRIBUTION 7% 9% 108% 93% As of September 30, 20252 Retained Base Upgrades and Price New Sales Business Base 7% 9% 109% 94% Year-end 20242 Retained Base Upgrades and Price New Sales Business Base 7% 9% 110% 94% Year-end 2023 R
Slide 19: MA: financial overview
MA: financial overview Decision Solutions Research & Insights Data & Information Revenue: Mix by Quarter Revenue: Distribution by Line of Business Revenue: Mix by Year $233 $218 $218 $226 26% 26% 27% 26% 26% 25% 25% 25% 26% $200 $205 $212 $210 $213 $789 $853 $712 Millions Millions $243 $236 $249 $25
Slide 20: MIS: the Agency of Choice today and tomorrow
MIS: the Agency of Choice today and tomorrow Long-term Revenue Growth Algorithm ECONOMIC EXPANSION1 VALUE PROPOSITION DEVELOPING CAPITAL MARKETS → GDP growth drives demand for debt → Proven rating accuracy and deeply → Bank system capacity remains constrained capital to fund business investments exp
Slide 21: MIS: macroeconomic assumptions underpinning our full year 2025 outlook
MIS: macroeconomic assumptions underpinning our full year 2025 outlook1 MACROECONOMIC ASSUMPTIONS TAILWINDS → Real GDP2: U.S.: 1.5% - 2.5%; Euro area: 0.5% - 1.5%; Global: 2.0% - 3.0% ~$5.2T of refinancing needs between 2025 and 2029 → Global policy rates: Two federal funds rate cuts in Q4. Differin
Slide 22: Strong refinancing needs support future issuance
Strong refinancing needs support future issuance DEBT MATURITIES: Moody’s-rated U.S. Non-Financial Corporate Bonds and Loans ($B)1,2 → Refinancing needs $913 up from ~$4.9T to $833 ~$5.2T over the Investment Grade $539 $458 $320 next four years Speculative Grade Bonds $363 $151 $46 $97 $155 $254 → U
Slide 23: Overview of recent refunding wall studies
Overview of recent refunding wall studies1,2 INVESTMENT GRADE 4-YEAR REFUNDING WALL STUDIES SPECULATIVE GRADE 4-YEAR REFUNDING WALL STUDIES U.S. Investment Grade EMEA Investment Grade U.S. Spec Grade EMEA Spec Grade $3,000 $2,684 $2,829 $3,000 $2,549 ~5% $2,372 ~5% $2,329 ~7% $2,180 $1,825 ~7% $2,00
Slide 24: Corporate Finance: issuance and revenue
Corporate Finance: issuance1 and revenue Global Issuance2: Mix by Quarter Revenue3: Mix by Year 4 Other Investment Grade Speculative Grade Bank Loans Global Non-Financial Investment-Grade Bonds Global Non-Financial Speculative-Grade Bonds $287 $606 $527 $313 $352 $285 Millions $379 $411 $292 $258 $2
Slide 25: Corporate Finance: revenue
Corporate Finance: revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 25% 26% 26% 27% 24% 29% 25% 38% 39% 37% 35% 67% 68% 65% 67% 61% 70% 70% 71% 68% 69% 70% 75% 74% 74% 73% 76% 71% 75% 62% 61% 63% 65% 30% 33% 32% 35% 3
Slide 26: Financial Institutions: issuance and revenue
Financial Institutions: issuance1 and revenue Global Issuance2: Mix by Quarter Revenue3: Mix by Year Banking Insurance Managed Investments Other 4 Global Investment Grade Financial Corporate Bonds Global Speculative Grade Financial Corporate Bonds $14 $49 $10 $10 $36 $12 $51 $40 $13 $214 $12 $28 $32
Slide 27: Financial Institutions: revenue
Financial Institutions: revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 41% 37% 41% 43% 43% 43% 41% 49% 46% 50% 53% 53% 53% 50% 52% 53% 53% 46% 47% 56% 59% 55% 59% 63% 59% 57% 57% 57% 59% 51% 54% 50% 47% 47% 47% 50%
Slide 28: Infrastructure issuance; Public, Project & Infrastructure revenue
Infrastructure issuance1; Public, Project & Infrastructure revenue Revenue3: Mix by Year Global Issuance2: Mix by Quarter Public Finance and Sovereign Project & Infrastructure Finance Global Infrastructure Finance Investment-Grade Bonds Global Infrastructure Finance Speculative-Grade Bonds $277 $324
Slide 29: Public, Project & Infrastructure: revenue
Public, Project & Infrastructure: revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 32% 29% 29% 32% 29% 30% 31% 39% 42% 37% 40% 60% 61% 61% 61% 64% 65% 65% 64% 64% 66% 67% 63% 68% 71% 71% 68% 71% 70% 69% 61% 58% 60% 40
Slide 30: Structured Finance: revenue
Structured Finance: revenue Revenue1: Mix by Year Revenue1: Mix by Quarter ABS RMBS CMBS Structured Credit Other ABS RMBS CMBS Structured Credit Other $2 $2 $1 $1 $1 $0 $3 $0 $2 $2 $1 $55 $215 $48 $46 $4 $49 $55 $3 $193 $1 $1 $50 $196 $140 $2 $39 $148 $32 $129 $34 Millions Millions $105 $28 $25 $25
Slide 31: Structured Finance: revenue
Structured Finance: revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 48% 42% 42% 43% 44% 43% 45% 41% 52% 53% 53% 64% 65% 62% 67% 67% 70% 73% 74% 71% 72% 74% 58% 58% 57% 56% 57% 55% 59% 48% 47% 47% 52% 36% 35% 38% 33%
Slide 32: Default Rates Expected to Decline by Year-end
Default Rates Expected to Decline by Year-end DEFAULT RATES FOR GLOBAL SPECULATIVE- GRADE CORPORATE RATED ISSUANCE1,2 M&A2 ($T) Baseline Optimistic Moderately Pessimistic Severely Pessimistic M&A Volume 10-year Avg. 12.5% ~$5.0 10.0% ~$4.5 ~$4.3 ~$3.9 7.5% 4.2% global historical average 4.6% 5.0% 4.
Slide 33: Strategic expense management supports investments in high-growth areas
Strategic expense management supports investments in high-growth areas FY 2024 vs. FY 2025F1 Increase in the LSD to MSD % ~1.0% range ~2.0% ~0.5% 3.0% to 4.0% ~(1.0%) (2.0% to 2.5%) $4.2B FY 2024 Incentive & Operating Growth, Acquired Depreciation and Restructuring Charges FY 2025F Operating Expense
Slide 34: Investing for growth while returning capital to shareholders
Investing for growth while returning capital to shareholders Global Free Cash Flow (FCF)1 Share Repurchases Dividends FCF to Adjusted Net Income Conversion1 Shareholder Return % of FCF1 95% to 85% 111% 100% to 90% 103% 76% ~$0.7B $0.6B 56% $2.5B ~$2.5B $1.9B $0.6B At least $1.5B $1.3B $0.5B 2023 202
Slide 35: Disciplined approach to capital allocation
Disciplined approach to capital allocation CAPITAL ALLOCATION PRIORITIES INCREASING DIVIDENDS THROUGH MARKET CYCLES COVID-19 RECESSION INVESTING FOR GROWTH 1 Reinvestment GREAT RECESSION CAGR Accelerating organic growth 2001 RECESSION 17% 2 Acquisitions Advance global integrated risk assessment stra
Slide 36: Investment criteria and post-acquisition review
Investment criteria and post-acquisition review CLEAR INDUSTRIAL LOGIC DISCIPLINED FINANCIAL TARGETS POST-ACQUISITION REVIEW Strategic fit, the most important factor, Long held, clear financial framework for Disciplined and rigorous monitoring is the first screen external (and internal) investments
Slide 37: Teleconference details
Teleconference details DIAL IN REPLAY AVAILABLE FROM October 22, 2025, through October 29, 2025. Webcast Dial In Dial In Replay → Go to ir.moodys.com → U.S. & Canada: → U.S. & Canada: → Click on “Events & +1-888-596-4144 +1-800-770-2030 Presentations” → Non-U.S. & Canada: → Non-U.S. & Canada: → Clic
Slide 38: Moody's attendance at upcoming conferences
Moody’s attendance at upcoming conferences November 18 J.P. Morgan Ultimate Services Investor Conference November 19 Wells Fargo 9th Annual TMT Summit November 19 RBC Global Technology, Internet, Media & Telecommunications Conference December 2 Rothschild & Co Redburn CEO Conference December 2 UBS T
Slide 39: Appendix
Appendix Third Quarter 2025 - Earnings Call 39
Slide 40: Glossary of terms and abbreviations
Glossary of terms and abbreviations Term Definition CFG Corporate finance group; an LOB within MIS D&I The Data & Information LOB within MA, which provides vast data sets on companies and securities via data feeds and data applications products The Decision Solutions LOB within MA that provides subs
Slide 41: Annualized Recurring Revenue (ARR)
Annualized Recurring Revenue (ARR) The Company presents Annualized Recurring Revenue (“ARR”) on an organic constant currency basis for its MA business as a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in tim
Slide 42: Financial information by segment
Financial information by segment The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Three Months Ended Sept
Slide 43: Financial information by segment (Cont'd)
Financial information by segment (Cont'd) The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Nine Months En
Slide 44: Adjusted Operating Income and Adjusted Operating Margin
Adjusted Operating Income and Adjusted Operating Margin The Company presents Adjusted Operating Income and Adjusted Operating Margin because management deems these metrics to be useful measures to provide additional perspective on Moody's operating performance. Adjusted Operating Income excludes the
Slide 45: Free Cash Flow
Free Cash Flow The Company defines Free Cash Flow as net cash provided by operating activities minus cash paid for capital additions. Management believes that Free Cash Flow is a useful metric in assessing the Company’s cash flows to service debt, pay dividends and to fund acquisitions and share rep
Slide 46: Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide additional perspective on Moody’s operating performance. Adjusted Net Inc
Slide 47: Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide additional perspective on Moody’s operating performance. Adjusted Net Inc
Slide 48: Organic constant currency revenue growth
Organic constant currency revenue growth Three Months Ended September 30, Nine Months Ended September 30, Amounts in millions 2025 2024 Change Growth 2025 2024 Change Growth MCO revenue $ 2,007 $ 1,813 $ 194 11% $ 5,829 $ 5,416 $ 413 8% The Company presents organic constant currency FX impact (24) —
Slide 49: 2025 outlook reconciliations
2025 outlook reconciliations The following are reconciliations of the Company's adjusted forward looking measures to their comparable U.S. GAAP measure: Projected for the Year Ended December 31, 2025 Operating margin guidance 43% to 44% Depreciation and amortization Approximately 6.2% Restructuring
Slide 50: Third Quarter 2025 - Earnings Call
© 2025 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTIT