MSCI Inc (NYSE: MSCI) reported fiscal 2025 first-quarter results Tuesday. The quarterly revenue grew by 9.7% year-on-year to $745.8 million, topping the analyst consensus estimate of $744.2 million.
The adjusted EPS of $4.00 beat the analyst consensus estimate of $3.91.
The total run rate on March 31, 2025, rose 9.3% Y/Y to $2.98 billion.
Also Read: BofA Sees Mostly Inline Q1 For Industrials, Highlights 3M, JCI, GE Vernova As Top Picks
The organic recurring subscription run rate growth was 8.2%. The retention rate was 95.3% compared to 92.8% last year.
The investment research firm's index operating revenues rose 12.8% Y/Y to $421.7 million, aided by higher recurring subscription revenues and asset-based fees.
Analytics operating revenues increased 5.0% Y/Y to $172.2 million, driven by higher recurring subscription revenues from equity and multi-asset class analytics products.
Sustainability and climate operating revenues (previously known as ESG and climate operating revenues) grew 8.6% Y/Y to $84.6 million, driven by solid growth in ratings and climate products.
All Other – private assets operating revenues improved by 4.7% Y/Y to $67.3 million.
Margin: The operating margin improved from 49.9% to 50.6%. The adjusted EBITDA margin improved from 56.4% to 57.1%.
MSCI generated $268.9 million in free cash flow and held $360.7 million in cash and equivalents as of March 31, 2025.
Chair and CEO Henry A. Fernandez expects deep client relationships, differentiated capabilities, and a resilient business model to weather periods of global turmoil, which are also when its clients rely on it the most.
FY25 Outlook: MSCI reiterated operating expenses of $1.405 billion– $1.445 billion, capex of $115–$125 million, and free cash flow of $1.40 billion–$1.46 billion.
Price Action: MSCI stock is down 1% at $527.71 at last check Tuesday.
Read Next:
Photo: Shutterstock
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.