Msci Inc. · NYSE:MSCI

Msci — Q2 2025 Earnings Presentation

38 slides from Msci's earnings presentation, Jul 22, 2025

  1. Slide 1: Second Quarter 2025 Earnings Presentation

    Second Quarter 2025 Earnings Presentation July 22, 2025 © 2025 MSCI Inc. All rights reserved.

  2. 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

  3. 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

  4. Slide 4: MSCI Second Quarter 2025 Earnings Call Participants

    Introduction → MSCI Second 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

  5. Slide 5: Financial & Strategic Highlights

    Section 01 Financial & Strategic Highlights

  6. Slide 6: 2Q25 Financial Results Snapshot

    Financial & Strategic Highlights → 2Q25 Operating 2Q25 Operating As of June 30, 2025 As of June 30, 2025 Revenues (reported) Revenues (organic) Subscription Run Rate Subscription Run Rate 2Q25 Financial Growth (reported) Growth (organic) Results Snapshot +9% +8% +9% +7% 2Q25 Adjusted 2Q25 Operating

  7. Slide 7: 2Q25 Regional Performance

    Financial & Strategic Highlights → 2Q25 Regional Performance AMERICAS YoY EMEA YoY APAC YoY 2Q25 Recurring Subscription Run Rate by Region $1,050M +7% $910M +11% $389M +9% ORGANIC YoY ORGANIC YoY ORGANIC YoY $1,050M +7% $884M +8% $386M +8% 2Q25 Recurring Net New AMERICAS YoY EMEA YoY APAC YoY Subscr

  8. Slide 8: 2Q25 Operating Highlights

    Financial & Strategic Highlights → $3.1B 94.4% 2Q25 Operating Highlights of Total Run Rate across MSCI Quarterly Retention Rate Asset Based Fees Total Run Rate Run Rate growth of 17.1%, driven by record ETF and non-ETF balances US$ in millions +10% Organic +11% $3,107 +12% Organic $2,807 +12% Asset-

  9. Slide 9: Significant Recurring Revenue Model

    Financial & Strategic Highlights → MSCI Subscription Run Rate as of 06/30/2025 by Geography Significant Recurring Revenue Model with Global Client Base • Americas 45% Operating Revenues Mix • EMEA 39% Quarter Ended 06/30/2025 • APAC 16% by Product Line by Type 3% 9% Non-recurring All Other-Private A

  10. Slide 10: Emerging Growth Opportunities

    Financial & Strategic Highlights → Emerging Growth Opportunities Expanding in attractive additional addressable markets 06/30/2024 6/30/2025 Run Rate US$ in millions $460 $423 $261 $280 $150 $126 $110 $122 $113 $107 $99 $95 $58 $59 Sustainability Insurance Climate1 Fixed Income2 Futures & Options3 W

  11. Slide 11: 2Q25 Summary Financial Results

    Financial & Strategic Highlights → US$ in thousands, For the Three Months Ended 2Q25 Summary except per share data June 30 Financial Results YoY% Unaudited 2025 2024 Change Operating revenues $ 772,679 $ 707,949 9.1% Operating income $ 425,234 $ 382,608 11.1% Operating margin % 55.0% 54.0% Net incom

  12. Slide 12: 2Q25 Operating Revenues

    Financial & Strategic Highlights → 2Q25 Operating Revenues US$ in millions Non-Recurring Revenues +9% Organic Asset-Based Fees Revenues +10% Recurring Subscription Revenues $434.8 +7% Organic +8% Organic $397.2 $15.1 +7% +7% Organic +10% $16.9 +11% $184.1 $177.7 $163.3 $166.0 $71.2 $3.9 $7.9 $88.9 $

  13. Slide 13: 2Q25 Subscription Run Rate

    Financial & Strategic Highlights → 2Q25 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% +8% $730.6 YoY YoY $674.6 $

  14. 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 +24% 2.47 2.44 2.44 2.43 2.43 +13% YoY YoY $2,025 $184.1 $163.3 $14.9 $1,632 $510 +15% +3% $14.4 $50.4 +7% $1,869 $445 $4

  15. Slide 15: 2Q25 QoQ AUM Drivers: MSCI-Linked Equity ETFs

    Financial & Strategic Highlights → 2Q25 QoQ AUM Drivers: MSCI-Linked Equity ETFs By Geographic Exposure By Product US$ in billions US$ in billions $193.0 $193.0 $2,024.6 Market Cap EM $51.3 $2,024.6 Weighted $139.6 DM ex US $96.4 Factors $16.7 $36.6 US $45.2 $38.3 $8.8 $1.4 $32.4 $16.5 Sustainabilit

  16. Slide 16: 2Q25 YoY AUM Drivers: MSCI-Linked Equity ETFs

    Financial & Strategic Highlights → 2Q25 YoY AUM Drivers: MSCI-Linked Equity ETFs By Geographic Exposure $235.4 US$ in billions US $52.8 $2,024.6 DM ex US $126.0 EM $56.6 $37.3 $108.0 $12.0 $1,631.9 Cash inflows / (outflows) $157.3 2Q24 Ending AUM US Developed Markets ex. US Emerging Markets Markets

  17. Slide 17: Market Movement and Momentum in Cash Flows Continues

    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

  18. 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 24.7 25.2 25.2 24.9 25.1 $57.6 $59.0 $58.2 $59.5 $57.0 2Q2

  19. Slide 19: Adjusted Earnings Per Share Growth Drivers

    Financial & Strategic Highlights → Adjusted Earnings Per Share Growth Drivers Strong Operating Performance Driving Adjusted EPS Growth US$ in per share amounts Business Growth Capital Activities Tax and FX1 +14.6% $0.34 $0.04 $0.15 YoY $(0.24) $0.05 $0.09 $0.10 $4.17 $0.58 $(0.05) $3.64 2Q24 Adjuste

  20. Slide 20: Strong Balance Sheet Provides Optionality

    Financial & Strategic Highlights → Strong Balance Sheet Provides Optionality US$ in millions, unless otherwise noted → In 2Q25, returned $270.5M to shareholders through share 1 Cash and Debt as of 6/30/2025 repurchases of $131.2M and quarterly dividends of $139.3M → Strong balance sheet provides opt

  21. Slide 21: Full-Year 2025 Guidance

    Financial & Strategic Highlights → Current Guidance Full-Year 2025 Guidance Operating Expense $1,405 to $1,445 million Adjusted EBITDA Expense $1,220 to $1,250 million MSCI's guidance for the year ending December 31, 2025 (“Full- Year 2025”) is based on assumptions about a number of factors, in part

  22. Slide 22: Q&A

    Section 02 Q&A

  23. Slide 23: Additional Information

    Section 03 Additional Information

  24. 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% 10% 14% 14% 13% 8% 8% 9% 12% 12% 12% 1

  25. Slide 25: 2Q20 to 2Q25 YoY Run Rate Growth

    Additional Information → 2Q20 to 2Q25 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% 10% 12% 12% 12% 12% 10% 11% 11% 11% 11% 12% 12% 7% 11% 11% 9% 9% 9% 8% 9% 9% 5% -4% -7

  26. Slide 26: 2Q20 to 2Q25 YoY Run Rate Growth

    Additional Information → 2Q20 to 2Q25 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% 28% 42% 44% 26% 39% 41% 25% 34% 20% 33% 33% 15% 16% 29% 14% 27% 26% 10% 10% 11% 24% 22%

  27. Slide 27: Geographic Market Exposures of MSCI-Linked ETFs

    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

  28. Slide 28: YoY Growth Across Sustainability and Climate Franchise

    Additional Information → Sustainability & Climate Run Rates Across all Segments1 YoY Growth Across Sustainability and Climate Franchise Climate ABF Climate Subscription +12% Sustainability ABF Sustainability Subscription AUM in ETFs Linked to MSCI Sustainability and Climate Equity Indexes $610 US$ i

  29. 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

  30. Slide 30: Appendix

    Section 04 Appendix

  31. 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

  32. 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

  33. Slide 33: Reconciliation of Net Income to Adjusted EBITDA

    Appendix → Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Reconciliation In thousands Net income 2025 $ 303,650 2024 $ 266,758 2025 $ 592,250 2024 $ 522,712 of Net Income Provision for income taxes Other expense (income), net 74,190 47,394 73,236 42,614 116,660 93,347 113,17

  34. Slide 34: Reconciliation of Net Income and Diluted EPS

    Appendix → Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Reconciliation In thousands, except per share data Net income 2025 $ 303,650 2024 $ 266,758 2025 $ 592,250 2024 $ 522,712 of Net Income Plus: Amortization of acquired intangible assets Plus: Acquisition-related integr

  35. Slide 35: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses

    Appendix → Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (Unaudited) Three Months Ended Six Months Ended Full-Year June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 In thousands Outlook(1) Total operating expenses $347,445 $325,341 $716,248 $665,924 $1,405,000 - $1,445,000 A

  36. Slide 36: Reconciliation of Net Cash Provided to Free Cash Flow

    Appendix → Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited) Three Months Ended Six Months Ended Full-Year Jun-30 Jun-30 Jun-30 Jun-30 Outlook(1) In thousands 2025 2024 2025 2024 Net cash provided by operating activities $336,138 $349,248 $637,875 $649,385 $1,

  37. Slide 37: Q2 2025 Reconciliation of Operating Revenue Growth

    Appendix → Comparison of the Three Months Ended June 30, 2025 and 2024 Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Q2 2025 Index Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 9.5 % 8.6 % 12.7 % (10.5)% Impact of acquisitions

  38. Slide 38: Six Months 2025 Reconciliation of Operating Revenue Growth

    Appendix → Comparison of the Six Months Ended June 30, 2025 and 2024 Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Six Months 2025 Index Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 11.1 % 9.1 % 15.3 % (5.2)% Impact of acquis

MSCI — Q2 2025 Earnings Presentation on 6ix