Slide 1: Second Quarter 2025 Earnings Call
Second Quarter 2025 Earnings Call July 23,,2025
Slide 2: Shivani Kak, Head of Investor Relations
Shivani Kak HEAD OF INVESTOR RELATIONS Second 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 Second Quarter 2025 - Earnings Call 4
Slide 5: Key Takeaways
Key Takeaways Moody’s delivered another strong quarter amid market turbulence in April 1 → Revenue grew 4% against a strong prior year comp → Adjusted Operating Margin1 up 130bps to 50.9% → Adjusted Diluted EPS1 increased 9% to $3.56 MIS achieved its second highest 2Q revenue on record 2 → Second co
Slide 6: MIS: Revenue outpaced issuance by ~12%
MIS: Revenue outpaced issuance by ~12% REVENUE ISSUANCE3 $1,708 YoY (12)% $1,511 $1,015 ~ Flat $1,010 Change Billions ((2)% OC$1) $154 $162 5% $195 $191 (2)% Millions $131 $135 3% 2Q24 2Q25 ADJUSTED OPERATING MARGIN $525 $512 (2)% 63.2% 64.2% 100 bps 2Q24 2Q25 CFG SFG FIG PPIF MIS Other 2 2Q24 2Q25
Slide 7: MA: generating high-quality sustainable growth
MA: generating high-quality sustainable growth Delivering strong recurring revenue growth combined with significant margin expansion 11% 96% 93% 32.1% REVENUE RECURRING RETENTION ADJUSTED GROWTH1 REVENUE2 RATE3 OPERATING MARGIN4 8% ARR GROWTH 5 10% 7% 6% Decision Research Data & Solutions & Insights
Slide 8: Capitalizing on our deep currents
Capitalizing on our deep currents Adjusted Adjusted Revenue Growth1 Mid-single-digit % 49% to 50% $13.50 to $14.00 Operating Diluted Margin1,2 EPS1,2 Dynamic capital Heightened awareness Increasing need to Ongoing digital Productivity markets continuing of risks and need understand financial impact
Slide 9: Noémie Heuland, Chief Financial Officer
Noémie Heuland CHIEF FINANCIAL OFFICER Second Quarter 2025 - Earnings Call 9
Slide 10: Issuance: updating total MIS-rated issuance guidance
Issuance: updating total MIS-rated issuance guidance FY 2025 ISSUANCE GUIDANCE1,2 KEY ASSUMPTIONS Unchanged from prior disclosure Updated from prior disclosure → 2Q rated issuance modestly above expectations; ongoing uncertainty and risks remain for 2H Total MIS Rated Issuance Decrease of LSD to MSD
Slide 11: MA: quarterly performance
MA: quarterly performance $888M $3.3B REVENUE1,2 ARR1,3 5% 7% Banking 13% DECISION SOLUTIONS 10% Banking 14% 9% Insurance 10% RESEARCH & INSIGHTS 7% Insurance 22% 8% DATA & INFORMATION 6% 15% KYC KYC 11% TOTAL MA 8% 1. Percentages represent year-over-year growth. 2. Refer to Slide 47 - ''Organic con
Slide 12: MIS & MA: select updates to full year 2025 guidance
1 MIS & MA: select updates to full year 2025 guidance AS OF APRIL 22, 2025 AS OF JULY 23, 2025 MOODY’S INVESTORS SERVICE Decrease in the low-single-digit to Decrease in the low-single-digit to Issuance2 high-single-digit percent range mid-single-digit percent range Flat to increase in the mid-single
Slide 13: MCO: select updates to full year 2025 guidance
1 MCO: select updates to full year 2025 guidance AS OF APRIL 22, 2025 AS OF JULY 23, 20251 MOODY’S CORPORATION Increase in the mid-single-digit percent Revenue No change range Increase in the low-to-mid-single-digit Operating Expenses No change percent range Adjusted Operating Margin2 49% to 50% No
Slide 14: Questions and Answers
Rob Fauber Questions and PRESIDENT AND CHIEF EXECUTIVE OFFICER Answers Noémie Heuland CHIEF FINANCIAL OFFICER Second Quarter 2025 - Earnings Call 14
Slide 15: Supplemental Information
Supplemental Information Second Quarter 2025 - Earnings Call 15
Slide 16: 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 17: 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 June 30, 20252 Retained Base Upgrades and Price New Sales Business Base 94% 7% 9% 109% Year-end 20242 Retained Base Upgrades and Price New Sales Business Base 7% 9% 110% 94% Year-end 2023 Retain
Slide 18: 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 $218 $218 $226 26% 26% 26% 27% 26% 26% 25% 25% 25% $213 $853 $205 $212 $210 $196 $200 $789 $712 Millions Millions $243 $236 $249 29%
Slide 19: 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 20: MIS: macroeconomic assumptions underpinning our full year 2025 outlook
MIS: macroeconomic assumptions underpinning our full 1 year 2025 outlook MACROECONOMIC ASSUMPTIONS TAILWINDS → Real GDP2: U.S.: 0.5% - 1.5%; Euro area: 0.5% - 1.5%; Global: 1.5% - 2.5% ~$4.9T of refinancing needs between 2025 and 2028 → Global policy rates: Expecting two cuts from the U.S. Fed in 2H
Slide 21: Strong refinancing needs support future issuance
Strong refinancing needs support future issuance DEBT MATURITIES: Moody’s-rated U.S. Non-Financial Corporate Bonds and Loans ($B)1,2 → Refinancing needs up $980 from ~$4.4T to ~$4.9T $681 over the next four $548 $554 Investment Grade years $278 Speculative Grade Bonds $372 $61 $173 $94 $131 $181 → U
Slide 22: Overview of recent refunding wall studies
1,2 Overview of recent refunding wall studies 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 $3,000 $2,549 $2,372 ~5% ~7% $2,180 $2,000 $2,000 $1,825 ~19% $1,664
Slide 23: Corporate Finance: issuance and revenue
1 Corporate Finance: issuance 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 $
Slide 24: 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% 35% 38% 39% 37% 35% 65% 67% 68% 65% 67% 61% 70% 70% 71% 68% 69% 75% 74% 74% 73% 76% 71% 65% 62% 61% 63% 65% 35% 30% 33% 32% 3
Slide 25: Financial Institutions: issuance and revenue
1 Financial Institutions: issuance and revenue Global Issuance2: Mix by Quarter Revenue3: Mix by Year 4 Banking Insurance Managed Investments Other Global Investment Grade Financial Corporate Bonds Global Speculative Grade Financial Corporate Bonds $14 $49 $10 $10 $36 $12 $51 $41 $13 $214 $12 $28 $3
Slide 26: 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% 50% 49% 46% 50% 53% 53% 53% 50% 52% 50% 53% 46% 47% 56% 59% 55% 59% 63% 59% 57% 57% 57% 50% 51% 54% 50% 47% 47% 47% 50%
Slide 27: Infrastructure issuance; Public, Project & Infrastructure revenue
1 Infrastructure issuance ; 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 $3
Slide 28: 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 34% 32% 29% 29% 32% 29% 30% 39% 42% 37% 40% 65% 60% 61% 61% 61% 64% 65% 65% 64% 64% 66% 66% 63% 68% 71% 71% 68% 71% 70% 61% 58% 60% 35
Slide 29: 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 $1 $1 $1 $— $3 $— $2 $2 $1 $215 $48 $46 $4 $49 $55 $3 $193 $— $1 $1 $50 $196 $140 $2 $39 $148 $31 $32 $129 $34 Millions Millions $105 $28 $25 $102
Slide 30: Structured Finance: revenue
Structured Finance: revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 48% 42% 42% 43% 44% 43% 45% 59% 53% 52% 53% 53% 64% 65% 62% 67% 67% 70% 73% 74% 71% 72% 52% 58% 58% 57% 56% 57% 55% 41% 47% 48% 47% 47% 36% 35% 38%
Slide 31: Default Rates Expected to Decline by Year-end
Default Rates Expected to Decline by Year-end DEFAULT RATES FOR GLOBAL SPECULATIVE- GRADE CORPORATE RATED ISSUANCE1,2 M&A2 ($T) Baseline Optimistic Moderately Pessimistic Severely Pessimistic M&A Volume 10-year Avg. 12.5% ~$5.0 10.0% ~$4.5 ~$4.3 7.5% 5.3% 4.2% global historical average ~$2.4 5.0% 4.
Slide 32: Strategic expense management supports investments in high-growth areas
Strategic expense management supports investments in high-growth areas FY 2024 vs. FY 2025F1,2 Increase in the LSD to MSD % ~1.0% ~1.0% ~1.0% range 1.5% to 2.0% 2.5% to 3.5% ~(1.0%) (1.5% to 2.5%) $4.2B FY 2024 Incentive & Operating Growth, Acquired Depreciation and Restructuring Charges FX FY 2025F
Slide 33: 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 111% 100% 80% to 103% 76% 85% $0.6B ~$0.7B 56% $2.5B $2.3-2.5B $1.9B $0.6B $1.3B ~$1.3B $0.5B 2023 2024 202
Slide 34: 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 35: 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 36: Teleconference details
Teleconference details DIAL IN REPLAY AVAILABLE FROM July 23, 2025, through July 30, 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: → Click on t
Slide 37: Moody's attendance at upcoming conferences
Moody’s attendance at upcoming conferences August 11 Oppenheimer Technology, Internet and Communications Conference September 9 Goldman Sachs Communacopia & Tech Conference Second Quarter 2025 - Earnings Call 37
Slide 38: Appendix
Appendix Second Quarter 2025 - Earnings Call 38
Slide 39: 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 40: 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 41: 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 June
Slide 42: 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. Six Months End
Slide 43: 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 44: 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 45: Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS because Three Months Ended June 30, Amounts in millions 2025 2024 management deems these metrics to be useful measures to provide additional Net
Slide 46: Adjusted Net Income and Adjusted Diluted EPS (Cont'd)
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders (Cont'd) The Company presents Adjusted Net Income and Adjusted Diluted EPS because Six Months Ended June 30, Amounts in millions 2025 2024 management deems these metrics to be useful measures to provide addition
Slide 47: Organic constant currency revenue growth
Three Months Ended June 30, Six Months Ended June 30, Amounts in millions 2025 2024 Change Growth 2025 2024 Change Growth Organic constant MCO revenue FX impact Inorganic revenue from acquisitions $ 1,898 $ 1,817 $ (27) (17) — — 81 (27) (17) 4% $ 3,822 $ 3,603 $ (13) (32) — — 219 (13) (32) 6% curren
Slide 48: 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 42% to 43% Depreciation and amortization Approximately 6% Restructuring Ap
Slide 49: Second 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