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Globe and Mail
3 minutes ago
- Business
- Globe and Mail
Allegion Gears Up to Post Q2 Earnings: Here's What to Expect
Allegion plc ALLE is scheduled to release second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for ALLE's second-quarter revenues is pegged at $1 billion, indicating growth of 3.7% from the prior-year quarter's figure. The consensus mark for earnings is pinned at $2 per share, which has increased a penny in the past 30 days. The figure indicates growth of 2% from the year-ago quarter's figure. The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 10.1% on average. In the last reported quarter, its bottom line beat the consensus estimate by 10.7%. Let us see how things have shaped up for Allegion this earnings season. Factors Likely to Have Shaped ALLE's Quarterly Performance ALLE's Allegion Americas segment's second-quarter performance is expected to have benefited from stable demand across end markets like education, healthcare, government, hospitality and retail. The increase in demand for non-residential products is also anticipated to have augmented its top-line performance in the quarter. We expect revenues from the segment to increase 4.1% year over year to $801.9 million. An increase in demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is expected to have boosted the Allegion International segment's performance in the second quarter. Despite this, challenges in some European regions are likely to have hurt the segment's performance. We expect the segment's revenues to decrease 4.5% from the year-ago quarter to $186.2 million. Allegion has always been focused on expanding its product offerings and market presence through buyouts. The company acquired Lemaar Pty Ltd (Lemaar) in March 2025, enhancing its security and accessibility portfolio in Australia. In February 2025, ALLE acquired Next Door Company, which expanded its doors and frames portfolio. In June 2024, the company acquired Krieger Specialty Products. The addition of Krieger's expertise in specialty solutions enabled ALLE to strengthen its door and frame portfolio. Also, in the same month, it purchased Unicel Architectural Corp. The inclusion of Unicel's proficiency in glass and building envelope solutions expanded its product portfolio within the non-residential business. The buyouts are expected to have boosted Allegion's top line in the quarter. However, rising operating costs, owing to increased material costs and investments in new products, channel development and growth initiatives, are likely to have impacted the company's bottom line. We expect ALLE's cost of sales to increase 2.4% year over year to $550.2 million and the adjusted operating margin to decline 50 basis points to 23.2% in the second quarter. Also, given the company's extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Allegion's overseas business. Earnings Whispers Our proven model does not conclusively predict an earnings beat for ALLE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below. Earnings ESP: ALLE has an Earnings ESP of -0.63% as the Most Accurate Estimate is pegged at $1.99 per share, which is lower than the Zacks Consensus Estimate of $2. You can uncover the best stocks before they're reported with our Earnings ESP Filter. Zacks Rank: ALLE currently carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. Stocks to Consider Here are some companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle. Illinois Tool Works Inc. ITW has an Earnings ESP of +1.44% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 30. Illinois Tool's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3%. Eaton Corporation plc ETN has an Earnings ESP of +0.39% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2025 results on Aug. 5. Eaton's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.9%. Emerson Electric Co. EMR has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The company is slated to release third-quarter fiscal 2025 (ended June 2025) results on Aug. 6. Emerson's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis Report
Yahoo
3 hours ago
- Business
- Yahoo
Wedbush Maintains a Buy on Playtika Holding (PLTK), Sets a Price Target of $11.50
Playtika Holding Corp. (NASDAQ:PLTK) is one of the . In a report released on July 1, Alicia Reese from Wedbush maintained a Buy rating on Playtika Holding Corp. (NASDAQ:PLTK) with a price target of $11.50. A close-up of a hand holding a mobile device with a gaming app open on the screen. Playtika Holding Corp. (NASDAQ:PLTK) reported an 8.6% sequential and 8.4% year-over-year growth in revenue in fiscal Q1 2025, reaching $706.0 million. DTC platforms reported $179.2 million in revenue, reflecting a 2.6% sequential growth and a 4.5% year-over-year rise. While GAAP net income for the quarter decreased 42.3% year-over-year to $30.6 million, Playtika Holding Corp. (NASDAQ:PLTK) reported $36.2 million in adjusted net income, increasing 34.1% sequentially and decreasing 39.6% year-over-year. Playtika Holding Corp. (NASDAQ:PLTK) is a developer of mobile games that owns and manages around 15 games. Its Playtika Boost Platform offers a proprietary technology that supports a portfolio of games and live game operations services. The company's offerings include casual games, casino-themed games, and free-to-play mobile games. Its game portfolio includes Slotomania, Bingo Blitz, House of Fun, Caesars Slots, World Series of Poker, Best Fiends, June's Journey, Solitaire Grand Harvest, and Board Kings. These games are available on Google Play Store and iOS App Store. While we acknowledge the potential of PLTK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
4 hours ago
- Business
- Yahoo
MSCI's Q2 Success Fueled By Record ETF Growth, Diverse Client Expansion
MSCI Inc. (NYSE:MSCI) announced its fiscal 2025 second-quarter results on Tuesday. The company's total revenue reached $772.7 million, an increase of 9.1% year-over-year, exceeding the analyst consensus estimate of $763.5 million. Adjusted earnings per share (EPS) were $4.17, also surpassing the analyst consensus of $4.11. As of June 30, 2025, MSCI's total run rate, the annualized value of recurring revenues, grew by 10.7% year-over-year to $3.11 billion. The organic recurring subscription run rate saw a 7.4% increase. The client retention rate was 94.4%, a slight decrease from 94.8% in the previous year. Segment Performance MSCI's Index operating revenues increased 9.5% year-over-year to $434.8 million, driven by higher recurring subscription revenues and asset-based operating revenues rose 7.1% year-over-year to $177.7 million, primarily due to increased recurring subscription revenues from equity and multi-asset class analytics products. Sustainability and climate operating revenues (formerly ESG and climate operating revenues) grew 11.3% year-over-year to $88.9 million, supported by growth in ratings and climate products. Finally, All Other – private assets operating revenues improved by 9.7% year-over-year to $71.2 million. Margins, Cash Flow, and Capital Allocation The operating margin improved from 54.0% to 55.0%, and the adjusted EBITDA margin increased from 60.7% to 61.4%. MSCI generated $301.6 million in free cash flow during the quarter and held $347.3 million in cash and equivalents as of June 30, 2025. View more earnings on MSCI The company invested $34.6 million in capital expenditures. MSCI returned capital to shareholders through $131.2 million in share repurchases, buying back 250,818 shares at an average price of $523.20. Additionally, approximately $139.3 million was paid in dividends. On July 21, the Board declared a third-quarter cash dividend of $1.80 per share, payable August 29 to shareholders of record as of August 15, 2025. CEO Commentary and Outlook Chair and CEO Henry A. Fernandez noted MSCI delivered strong financial results for the quarter, driven by 17% growth in asset-based fee (ABF) run rate, supported by record AUM in ETFs linked to its indexes. The company led all index providers in equity ETF cash inflows and achieved double-digit subscription run-rate growth across key client segments, including banks, broker-dealers, wealth managers, hedge funds, and asset owners, while maintaining steady growth and high retention among asset managers. MSCI also expanded its existing solutions to meet a broader range of client use cases and continued developing new offerings for a more diverse client base. The company leveraged its resilient financial model and integrated products to deliver scalable, innovative solutions that help clients advance their strategies. 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 trading lower by 3.46% to $557.95 at last check Tuesday. Photo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? MSCI (MSCI): Free Stock Analysis Report This article MSCI's Q2 Success Fueled By Record ETF Growth, Diverse Client Expansion originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
MSCI Reports Financial Results for Second Quarter and Six Months 2025
NEW YORK, July 22, 2025--(BUSINESS WIRE)--MSCI Inc. ("MSCI" or the "Company") (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today announced its financial results for the three months ended June 30, 2025 ("second quarter 2025") and six months ended June 30, 2025 ("six months 2025"). Financial and Operational Highlights for Second Quarter 2025(Note: Unless otherwise noted, percentage and other changes are relative to the three months ended June 30, 2024 ("second quarter 2024") and Run Rate percentage changes are relative to June 30, 2024). Operating revenues of $772.7 million, up 9.1%; Organic operating revenue growth of 8.3% Recurring subscription revenues up 7.9%; Asset-based fees up 12.7% Operating margin of 55.0%; Adjusted EBITDA margin of 61.4% Diluted EPS of $3.92, up 16.3%; Adjusted EPS of $4.17, up 14.6% Organic recurring subscription Run Rate growth of 7.4%; Retention Rate of 94.4% In second quarter 2025 and through July 21, 2025, a total of $131.2 million or 250,818 shares were repurchased at an average repurchase price of $523.20 Approximately $139.3 million in dividends were paid to shareholders in second quarter 2025; Cash dividend of $1.80 per share declared by MSCI Board of Directors for third quarter 2025 Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands, except per share data (unaudited) 2025 2024 % Change 2025 2024 % Change Operating revenues $ 772,679 $ 707,949 9.1 % $ 1,518,505 $ 1,387,914 9.4 % Operating income $ 425,234 $ 382,608 11.1 % $ 802,257 $ 721,990 11.1 % Operating margin % 55.0 % 54.0 % 52.8 % 52.0 % Net income $ 303,650 $ 266,758 13.8 % $ 592,250 $ 522,712 13.3 % Diluted EPS $ 3.92 $ 3.37 16.3 % $ 7.63 $ 6.59 15.8 % Adjusted EPS $ 4.17 $ 3.64 14.6 % $ 8.17 $ 7.17 13.9 % Adjusted EBITDA $ 474,379 $ 429,955 10.3 % $ 900,020 $ 813,528 10.6 % Adjusted EBITDA margin % 61.4 % 60.7 % 59.3 % 58.6 % "MSCI delivered another quarter of strong financial performance, along with 17 percent asset-based-fee (ABF) run-rate growth fueled by record AUM levels in ETF products linked to our indexes. In fact, we saw more cash flows into equity ETFs tied to our indexes than any other index provider. Among client segments, we posted double-digit subscription run-rate growth with banks and broker-dealers, wealth managers, hedge funds, and asset owners, plus steady growth and high retention with asset managers," said Henry A. Fernandez, Chairman and CEO of MSCI. "Across all segments, MSCI is expanding our existing solutions to support different use cases while developing new solutions for an increasingly diverse client base. We continue to benefit from our resilient financial model and integrated products, which offer the scalability, depth, and innovation clients need to advance their strategies," Mr. Fernandez added. Second Quarter Consolidated Results Operating Revenues: Operating revenues were $772.7 million, up 9.1%. Organic operating revenue growth was 8.3%. The $64.7 million increase was the result of $41.3 million in higher recurring subscription revenues and $20.8 million in higher asset-based fees. Run Rate and Retention Rate: Total Run Rate at June 30, 2025 was $3,106.7 million, up 10.7%. Recurring subscription Run Rate increased by $188.9 million, and asset-based fees Run Rate increased by $110.5 million. Organic recurring subscription Run Rate growth was 7.4%. Retention Rate in second quarter 2025 was 94.4%, compared to 94.8% in second quarter 2024. Expenses: Total operating expenses were $347.4 million, up 6.8%. Adjusted EBITDA expenses were $298.3 million, up 7.3%, primarily reflecting higher compensation and benefits costs as a result of increased headcount costs as well as higher severance costs, partially offset by an adjustment to the fair value of contingent consideration related to the Fabric acquisition. Total operating expenses excluding the impact of foreign currency exchange rate fluctuations ("ex-FX") and adjusted EBITDA expenses ex-FX increased 6.1% and 6.5%, respectively. Operating Income: Operating income was $425.2 million, up 11.1%. Operating income margin in second quarter 2025 was 55.0%, compared to 54.0% in second quarter 2024. Headcount: As of June 30, 2025, we had 6,208 employees, reflecting a 2.5% increase, with 29.6% and 70.4% of employees located in developed market and emerging market locations, respectively. Other Expense (Income), Net: Other expense (income), net was $47.4 million, up 11.2%, primarily driven by lower interest income reflecting lower average cash balances as well as unfavorable foreign currency exchange rate fluctuations. Income Taxes: The effective tax rate was 19.6% in the second quarter 2025 compared to 21.5% in second quarter 2024. The effective tax rate was driven lower by the non-taxable contingent consideration adjustment discussed above, compared to unfavorable discrete items in the prior year. Net Income: As a result of the factors described above, net income was $303.7 million, up 13.8%. Adjusted EBITDA: Adjusted EBITDA was $474.4 million, up 10.3%. Adjusted EBITDA margin in second quarter 2025 was 61.4%, compared to 60.7% in second quarter 2024. Index Segment: Table 1A: Results (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands 2025 2024 % Change 2025 2024 % Change Operating revenues: Recurring subscriptions $ 235,647 $ 217,032 8.6 % $ 468,977 $ 429,984 9.1 % Asset-based fees 184,072 163,281 12.7 % 361,487 313,540 15.3 % Non-recurring 15,114 16,879 (10.5 )% 26,112 27,540 (5.2 )% Total operating revenues 434,833 397,192 9.5 % 856,576 771,064 11.1 % Adjusted EBITDA expenses 104,675 90,202 16.0 % 214,847 186,314 15.3 % Adjusted EBITDA $ 330,158 $ 306,990 7.5 % $ 641,729 $ 584,750 9.7 % Adjusted EBITDA margin % 75.9 % 77.3 % 74.9 % 75.8 % Index operating revenues were $434.8 million, up 9.5%. The $37.6 million increase was primarily driven by $20.8 million in higher asset-based fees and $18.6 million in higher recurring subscription revenues. Organic operating revenue growth for Index was 9.3%. The growth in recurring subscription revenues was primarily driven by growth from market-cap weighted Index products. The growth in revenues attributed to asset-based fees was primarily driven by ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes, in each case primarily driven by increased average AUM. Index Run Rate as of June 30, 2025, was $1.7 billion, up 12.2%. The $187.6 million increase was comprised of a $110.5 million increase in asset-based fees Run Rate and a $77.1 million increase in recurring subscription Run Rate. The increase in asset-based fees Run Rate was primarily driven by higher AUM in both ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes. The increase in recurring subscription Run Rate was primarily driven by growth from market cap-weighted and custom Index products. The increase reflected growth across all regions and client segments. Organic recurring subscription Run Rate growth for Index was 8.6%. Analytics Segment: Table 1B: Results (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands 2025 2024 % Change 2025 2024 % Change Operating revenues: Recurring subscriptions $ 169,781 $ 162,128 4.7 % $ 339,536 $ 322,679 5.2 % Non-recurring 7,922 3,867 104.9 % 10,352 7,282 42.2 % Total operating revenues 177,703 165,995 7.1 % 349,888 329,961 6.0 % Adjusted EBITDA expenses 85,097 84,323 0.9 % 181,252 176,077 2.9 % Adjusted EBITDA $ 92,606 $ 81,672 13.4 % $ 168,636 $ 153,884 9.6 % Adjusted EBITDA margin % 52.1 % 49.2 % 48.2 % 46.6 % Analytics operating revenues were $177.7 million, up 7.1%. The $11.7 million increase was primarily driven by growth from recurring subscriptions related to both Multi-Asset Class and Equity Analytics products. The increase was also driven by growth in non-recurring revenues primarily driven by certain one-time contract items, timing of implementation revenue and overage fees. Organic operating revenue growth for Analytics was 6.6%. Analytics Run Rate as of June 30, 2025, was $730.6 million, up 8.3%. The increase of $56.0 million was primarily driven by growth in both Multi-Asset Class and Equity Analytics products, and reflected growth across all regions and client segments. Organic recurring subscription Run Rate growth for Analytics was 6.8%. Sustainability and Climate Segment: Table 1C: Results (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands 2025 2024 % Change 2025 2024 % Change Operating revenues: Recurring subscriptions $ 87,027 $ 78,000 11.6 % $ 169,764 $ 154,418 9.9 % Non-recurring 1,884 1,855 1.6 % 3,766 3,321 13.4 % Total operating revenues 88,911 79,855 11.3 % 173,530 157,739 10.0 % Adjusted EBITDA expenses 57,234 55,925 2.3 % 118,032 112,718 4.7 % Adjusted EBITDA $ 31,677 $ 23,930 32.4 % $ 55,498 $ 45,021 23.3 % Adjusted EBITDA margin % 35.6 % 30.0 % 32.0 % 28.5 % Sustainability and Climate operating revenues were $88.9 million, up 11.3%. The $9.1 million increase was primarily driven by growth from recurring subscriptions related to Ratings and Climate products, with growth primarily attributable to EMEA. Organic operating revenue growth for Sustainability and Climate was 7.1%. Sustainability and Climate Run Rate as of June 30, 2025, was $369.8 million, up 10.8%. The $36.1 million increase primarily reflects growth in Climate and Ratings products with contributions across all regions. The increase is primarily driven by growth in asset manager, wealth manager and asset owner client segments. Organic recurring subscription Run Rate growth for Sustainability and Climate was 6.5%. All Other – Private Assets: Table 1D: Results (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands 2025 2024 % Change 2025 2024 % Change Operating revenues: Recurring subscriptions $ 70,313 $ 64,309 9.3 % $ 137,132 $ 127,443 7.6 % Non-recurring 919 598 53.7 % 1,379 1,707 (19.2 )% Total operating revenues 71,232 64,907 9.7 % 138,511 129,150 7.2 % Adjusted EBITDA expenses 51,294 47,544 7.9 % 104,354 99,277 5.1 % Adjusted EBITDA $ 19,938 $ 17,363 14.8 % $ 34,157 $ 29,873 14.3 % Adjusted EBITDA margin % 28.0 % 26.8 % 24.7 % 23.1 % All Other – Private Assets, which reflect the Real Assets and Private Capital Solutions operating segments, operating revenues, were $71.2 million, up 9.7%. The growth in revenue is primarily driven by growth from recurring subscriptions in Private Capital Solutions related to Private Capital Intel, Total Plan Portfolio Management and Transparency Data products, as well as growth from recurring subscriptions in Real Assets related to Index Intel product. Organic operating revenue growth for All Other – Private Assets was 8.2%. All Other – Private Assets Run Rate was $280.3 million as of June 30, 2025, up 7.6%, primarily driven by growth from Private Capital Solutions related to Private Capital Intel, Transparency Data and Total Plan Portfolio Management products, and reflected growth across all regions. The increase is primarily driven by growth in asset owner and asset manager client segments. Organic recurring subscription Run Rate growth for All Other – Private Assets was 6.0%. Select Balance Sheet Items and Capital Allocation Cash Balances and Outstanding Debt: Cash and cash equivalents was $347.3 million as of June 30, 2025. MSCI typically seeks to maintain minimum cash balances globally of approximately $225.0 million to $275.0 million for general operating purposes. Total principal amounts of debt outstanding as of June 30, 2025, were $4.5 billion. The total debt to net income ratio (based on trailing twelve months net income) was 3.8x. The total debt to adjusted EBITDA ratio (based on trailing twelve months adjusted EBITDA) was 2.5x. MSCI seeks to maintain total debt to adjusted EBITDA in a target range of 3.0x to 3.5x. Capex and Cash Flow: Capex was $34.6 million, and net cash provided by operating activities decreased by 3.8% to $336.1 million, primarily reflecting higher operating expenses. Free cash flow (non-GAAP) for second quarter 2025 was down 6.3% to $301.6 million. Share Count and Share Repurchases: Weighted average diluted shares outstanding were 77.5 million in second quarter 2025, down 2.2% year-over-year. Total share repurchases during the quarter were $131.2 million or 250,818 shares at an average repurchase price of $523.20. Total shares outstanding as of June 30, 2025 were 77.4 million. As of July 21, 2025, a total of approximately $1.2 billion remains on the outstanding share repurchase authorization. Dividends: Approximately $139.3 million in dividends were paid to shareholders in second quarter 2025. On July 21, 2025, the MSCI Board of Directors declared a cash dividend of $1.80 per share for third quarter 2025, payable on August 29, 2025 to shareholders of record as of the close of trading on August 15, 2025. Full-Year 2025 Guidance MSCI's guidance for the year ending December 31, 2025 ("Full-Year 2025") is based on assumptions about a number of factors, in particular related to macroeconomic factors and the capital markets. These assumptions are subject to uncertainty, and actual results for the year could differ materially from our current guidance, including as a result of the uncertainties, risks and assumptions discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our Annual Report on Form 10-K, as updated in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. See "Forward-Looking Statements" below. Guidance Item Current Guidance for Full-Year 2025 Operating Expense $1,405 to $1,445 million Adjusted EBITDA Expense $1,220 to $1,250 million Interest Expense (including amortization of financing fees)(1) $182 to $186 million Depreciation & Amortization Expense $185 to $195 million Effective Tax Rate 17.5% to 20.0% Capital Expenditures $115 to $125 million Net Cash Provided by Operating Activities $1,525 to $1,575 million Free Cash Flow $1,400 to $1,460 million (1) A portion of our annual interest expense is from our variable rate indebtedness under our revolving credit facility, while the majority is from fixed rate senior unsecured notes. Changes to the secured overnight funding rate ("SOFR") and indebtedness levels can cause our annual interest expense to vary. Conference Call Information MSCI's senior management will review the second quarter 2025 results on Tuesday, July 22, 2025 at 11:00 AM Eastern Time. To listen to the live event via webcast, visit the events and presentations section of MSCI's Investor Relations website, Participants who wish to join via telephone should click here to register in advance. Registered participants will receive an email confirmation with a unique PIN to access the conference call. The earnings call webcast will include an accompanying slide presentation that can be accessed through MSCI's Investor Relations website. About MSCI Inc. MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit MSCI#IR Forward-Looking Statements This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, MSCI's Full-Year 2025 guidance. These forward-looking statements relate to future events or to future financial performance and involve underlying assumptions, as well as known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential" or "continue," or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI's control and that could materially affect actual results, levels of activity, performance or achievements. Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in MSCI's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission ("SEC") on February 7, 2025 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. If any of these risks, uncertainties or other matters materialize, or if MSCI's underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this earnings release reflects MSCI's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI's operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law. Website and Social Media Disclosure MSCI uses its investor relations website and social media outlets, such as LinkedIn or X (@MSCI_Inc), as channels of distribution of company information. The information MSCI posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following MSCI's press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about MSCI when you enroll your email address by visiting the "Email Alerts" section of MSCI's Investor Relations homepage at The contents of MSCI's website, including its quarterly updates, blog, podcasts and social media channels are not, however, incorporated by reference into this earnings release. Notes Regarding the Use of Operating Metrics MSCI has presented supplemental key operating metrics as part of this earnings release, including Run Rate, Retention Rate, subscription sales, subscription cancellations and non-recurring sales. A substantial portion of MSCI's operating revenues is derived from recurring subscriptions or licenses for products and services that are ongoing in nature and provided over contractually agreed periods, which are subject to renewal or cancellation upon the expiration of the then-current term. In addition, we generate non-recurring revenues from one-time sales and other transactions or services that are discrete in nature or that have a defined life. The operating metrics defined below help management assess the stability and growth of this recurring-revenue base and track non-recurring revenues. There have been no changes to the methodologies used to compute these metrics compared with prior periods. Run Rate estimates, at a specific point in time, the annualized value of the recurring portion of executed client contracts ("Client Contracts") expected to generate revenues over the next 12 months, assuming that all such Client Contracts are renewed and using foreign exchange rates at such point in time. Run Rate includes new Client Contracts upon execution, even if the license start date and related revenue recognition occur later. For Client Contracts where fees are linked to an investment product's assets or trading volume or fees (referred to as "Asset-based Fees"), the Run Rate calculation is based on: For exchange-traded funds ("ETFs"): assets under management as of the last trading day of the period; For non-ETF products: the most recent client-reported assets under management; and For listed futures and options contracts: the most recent quarterly volumes and/or reported exchange fees. Run Rate excludes fees associated with one-time or other non-recurring transactions. We remove from Run Rate the annualized fee value associated with products or services under any Client Contracts when (i) we have received a notice of termination, reduction in fees, non-renewal or other clear indication that the client does not intend to continue its subscription at then current fees; and (ii) management has determined that such notice or indication reflects the client's final decision to terminate, not renew or renew at a lower fee the applicable products or services, even if such termination or non-renewal is not yet effective (each such event, a "Subscription Cancellation"). In general, when a client reduces the fees paid to MSCI associated with a reduction in the number of products or services to which it subscribes within a segment, or a switch between products or services within a segment, unless the client switches to a product or service that management considers a replacement, such reduction or switch is treated as a Subscription Cancellation, including for purposes of calculating MSCI's Retention Rate (as detailed below). In the cases where the client switches products or services to a replacement service, only the net decrease, if any, is reported as a cancellation. In the Analytics and Sustainability and Climate operating segments, substantially all such product or service switches are treated as replacements and are netted accordingly. In contrast, in the Index, Real Assets, and Private Capital Solutions operating segments, such netting treatment is applied only in limited circumstances. Organic recurring subscription Run Rate growth is defined as the period-over-period growth in Run Rate, excluding: The impact of changes in foreign currency exchange rates; The impact of acquisitions during the first 12 months following the transaction date; and The impact of divestitures, where Run Rate from divested businesses are excluded from prior period Run Rates. Retention Rate is a key performance metric that provides insight into the stability and durability of MSCI's recurring revenue base. Subscription cancellations reduce Run Rate and, over time, lower future operating revenues. For full-year periods, Retention Rate is calculated as the retained subscription Run Rate, which is defined as the subscription Run Rate at the beginning of the fiscal year minus actual subscription cancellations during the fiscal year, expressed as a percentage of the subscription Run Rate at the beginning of the fiscal year. For interim (non-annual) periods, Retention Rate is presented on an annualized basis. The annualized Retention Rate is calculated by: Dividing annualized subscription cancellations in the period by the subscription Run Rate at the beginning of the fiscal year, to determine a cancellation rate; and Subtracting that rate from 100%, to derive the annualized Retention Rate. Retention Rate is calculated by operating segment and is based on an individual product or service level within each segment. We do not calculate Retention Rate for the portion of Run Rate attributable to Asset-based Fees. Sales represents the annualized value of products and services that clients have committed to purchase from MSCI and that are expected to result in additional operating revenues. Non-recurring sales represent the aggregate value of client agreements entered into during the period that generate non-recurring fees and are not included in Run Rate (as defined elsewhere herein), even if such agreements span multiple periods or years. New recurring subscription sales represent the annualized value of additional client commitments entered into during the period - such as new Client Contracts, expansions of existing Client Contracts or price increases - that contribute to Run Rate. Net new recurring subscription sales represent new recurring subscription sales minus the impact of Subscription Cancellations, capturing the net impact to Run Rate for the period. Total gross sales is the sum of new recurring subscription sales and non-recurring sales. Total net sales is total gross sales minus the impact of Subscription Cancellations. Notes Regarding the Use of Non-GAAP Financial Measures MSCI has presented supplemental non-GAAP financial measures as part of this earnings release. Reconciliations are provided in Tables 9 through 14 below that reconcile each non-GAAP financial measure with the most comparable GAAP measure. The non-GAAP financial measures presented in this earnings release should not be considered as alternative measures for the most directly comparable GAAP financial measures. The non-GAAP financial measures presented in this earnings release are used by management to monitor the financial performance of the business, inform business decision-making and forecast future results. "Adjusted EBITDA" is defined as net income before (1) provision for income taxes, (2) other expense (income), net, (3) depreciation and amortization of property, equipment and leasehold improvements, (4) amortization of intangible assets and, at times, (5) certain other transactions or adjustments, including, when applicable, certain acquisition-related integration and transaction costs. "Adjusted EBITDA expenses" is defined as operating expenses less depreciation and amortization of property, equipment and leasehold improvements and amortization of intangible assets and, at times, certain other transactions or adjustments, including, when applicable, certain acquisition-related integration and transaction costs. "Adjusted EBITDA margin" is defined as adjusted EBITDA divided by operating revenues. "Adjusted net income" and "adjusted EPS" are defined as net income and diluted EPS, respectively, before the after-tax impact of: the amortization of acquired intangible assets and, at times, certain other transactions or adjustments, including, when applicable, the impact related to certain acquisition-related integration and transaction costs and the impact related to write-off of deferred fees on debt extinguishment. "Capex" is defined as capital expenditures plus capitalized software development costs. "Free cash flow" is defined as net cash provided by operating activities, less Capex. "Organic operating revenue growth" is defined as operating revenue growth compared to the prior year period excluding the impact of acquired businesses, divested businesses and foreign currency exchange rate fluctuations. Asset-based fees ex-FX does not adjust for the impact from foreign currency exchange rate fluctuations on the underlying assets under management ("AUM"). We believe adjusted EBITDA, adjusted EBITDA margin and adjusted EBITDA expenses are meaningful measures of the operating performance of MSCI because they adjust for significant one-time, unusual or non-recurring items as well as eliminate the accounting effects of certain capital spending and acquisitions that do not directly affect what management considers to be our ongoing operating performance in the period. We believe adjusted net income and adjusted EPS are meaningful measures of the performance of MSCI because they adjust for the after-tax impact of significant one-time, unusual or non-recurring items as well as eliminate the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. We also exclude the after-tax impact of the amortization of acquired intangible assets and amortization of the basis difference between the cost of the equity method investment and MSCI's share of the net assets of the investee at historical carrying value, as these non-cash amounts are significantly impacted by the timing and size of each acquisition and therefore not meaningful to the ongoing operating performance in the period. We believe that free cash flow is useful to investors because it relates the operating cash flow of MSCI to the capital that is spent to continue and improve business operations, such as investment in MSCI's existing products. Further, free cash flow indicates our ability to strengthen MSCI's balance sheet, repay our debt obligations, pay cash dividends and repurchase shares of our common stock. We believe organic operating revenue growth is a meaningful measure of the operating performance of MSCI because it adjusts for the impact of foreign currency exchange rate fluctuations and excludes the impact of operating revenues attributable to acquired and divested businesses for the comparable prior year period, providing insight into our ongoing operating performance for the period(s) presented. We believe that the non-GAAP financial measures presented in this earnings release facilitate meaningful period-to-period comparisons and provide a baseline for the evaluation of future results. Adjusted EBITDA expenses, adjusted EBITDA margin, adjusted EBITDA, adjusted net income, adjusted EPS, Capex, free cash flow and organic operating revenue growth are not defined in the same manner by all companies and may not be comparable to similarly-titled non-GAAP financial measures of other companies. These measures can differ significantly from company to company depending on, among other things, long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. Accordingly, the Company's computation of these measures may not be comparable to similarly-titled measures computed by other companies. Notes Regarding Adjusting for the Impact of Foreign Currency Exchange Rate Fluctuations Foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period. While operating revenues adjusted for the impact of foreign currency fluctuations includes asset-based fees that have been adjusted for the impact of foreign currency fluctuations, the underlying AUM, which is the primary component of asset-based fees, is not adjusted for foreign currency fluctuations. Approximately three-fifths of the AUM is invested in securities denominated in currencies other than the U.S. dollar, and any such impact is excluded from the disclosed foreign currency-adjusted variances. Table 2: Condensed Consolidated Statements of Income (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands, except per share data 2025 2024 2025 2024 Operating revenues $ 772,679 $ 707,949 $ 1,518,505 $ 1,387,914 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 137,667 128,109 274,457 256,623 Selling and marketing 78,210 71,454 156,917 143,622 Research and development 44,074 41,073 91,665 81,598 General and administrative 38,349 39,706 95,446 96,397 Amortization of intangible assets 43,760 40,773 87,632 79,377 Depreciation and amortization of property, equipment and leasehold improvements 5,385 4,226 10,131 8,307 Total operating expenses(1) 347,445 325,341 716,248 665,924 Operating income 425,234 382,608 802,257 721,990 Interest income (2,929 ) (6,110 ) (6,805 ) (12,158 ) Interest expense 46,184 46,633 92,676 93,307 Other expense (income) 4,139 2,091 7,476 4,954 Other expense (income), net 47,394 42,614 93,347 86,103 Income before provision for income taxes 377,840 339,994 708,910 635,887 Provision for income taxes 74,190 73,236 116,660 113,175 Net income $ 303,650 $ 266,758 $ 592,250 $ 522,712 Earnings per basic common share $ 3.92 $ 3.37 $ 7.64 $ 6.60 Earnings per diluted common share $ 3.92 $ 3.37 $ 7.63 $ 6.59 Weighted average shares outstanding used in computing earnings per share: Basic 77,400 79,085 77,514 79,140 Diluted 77,496 79,245 77,651 79,377 (1) Includes stock-based compensation expense of $23.4 million and $19.3 million for the three months ended June 30, 2025 and June 30, 2024, respectively. Includes stock-based compensation expense of $63.4 million and $54.0 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Table 3: Condensed Consolidated Balance Sheet (unaudited) As of June 30, Dec. 31, In thousands 2025 2024 ASSETS Current assets: Cash and cash equivalents (includes restricted cash of $3,635 and $3,497 at June 30, 2025 and December 31, 2024, respectively) $ 347,318 $ 409,351 Accounts receivable (net of allowances of $5,707 and $5,284 at June 30, 2025 and December 31, 2024, respectively) 790,576 820,709 Other current assets 133,314 113,961 Total current assets 1,271,208 1,344,021 Property, equipment and leasehold improvements, net 85,626 70,885 Right of use assets 117,161 119,435 Goodwill 2,925,600 2,915,167 Intangible assets, net 869,190 907,613 Other non-current assets 104,891 88,318 Total assets $ 5,373,676 $ 5,445,439 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Deferred revenue $ 1,060,335 $ 1,123,423 Other current liabilities 409,848 462,231 Total current liabilities 1,470,183 1,585,654 Long-term debt 4,513,028 4,510,816 Long-term operating lease liabilities 115,401 121,153 Other non-current liabilities 161,272 167,813 Total liabilities 6,259,884 6,385,436 Total shareholders' equity (deficit) (886,208 ) (939,997 ) Total liabilities and shareholders' equity (deficit) $ 5,373,676 $ 5,445,439 Table 4: Condensed Consolidated Statement of Cash Flow (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands 2025 2024 2025 2024 Cash flows from operating activities Net income $ 303,650 $ 266,758 $ 592,250 $ 522,712 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of intangible assets 43,760 40,773 87,632 79,377 Stock-based compensation expense 23,181 19,396 63,185 53,732 Depreciation and amortization of property, equipment and leasehold improvements 5,385 4,226 10,131 8,307 Amortization of right of use assets 6,183 6,024 12,114 11,837 Loss on extinguishment of debt — — — 1,510 Other adjustment 12,380 51,915 24,411 42,037 Net changes in other operating assets and liabilities (58,401 ) (39,844 ) (151,848 ) (70,127 ) Net cash provided by operating activities 336,138 349,248 637,875 649,385 Cash flows from investing activities Capitalized software development costs (23,115 ) (18,707 ) (44,476 ) (38,673 ) Capital expenditures (11,448 ) (8,618 ) (22,948 ) (12,889 ) Cash paid for acquisitions, net of cash acquired — (19,647 ) — (27,467 ) Other — (153 ) (43 ) (429 ) Net cash used in investing activities (34,563 ) (47,125 ) (67,467 ) (79,458 ) Cash flows from financing activities Repurchase of common stock held in treasury (138,491 ) (241,718 ) (351,584 ) (311,709 ) Payment of dividends (139,744 ) (126,918 ) (283,528 ) (258,223 ) Repayment of borrowings (149,875 ) — (214,875 ) (339,063 ) Proceeds from borrowings 115,000 — 215,000 336,875 Proceeds from exercise of stock options 3,914 — 4,308 — Payment of contingent consideration and deferred purchase price from acquisitions (11,906 ) — (12,145 ) — Payment of debt issuance costs — — — (3,739 ) Net cash used in financing activities (321,102 ) (368,636 ) (642,824 ) (575,859 ) Effect of exchange rate changes 6,174 (1,401 ) 10,383 (4,360 ) Net increase (decrease) in cash, cash equivalents and restricted cash (13,353 ) (67,914 ) (62,033 ) (10,292 ) Cash, cash equivalents and restricted cash, beginning of period 360,671 519,315 409,351 461,693 Cash, cash equivalents and restricted cash, end of period $ 347,318 $ 451,401 $ 347,318 $ 451,401 Table 5: Operating Results (unaudited) Index Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % In thousands 2025 2024 Change 2025 2024 Change Operating revenues: Recurring subscriptions $ 235,647 $ 217,032 8.6 % $ 468,977 $ 429,984 9.1 % Asset-based fees 184,072 163,281 12.7 % 361,487 313,540 15.3 % Non-recurring 15,114 16,879 (10.5 )% 26,112 27,540 (5.2 )% Total operating revenues 434,833 397,192 9.5 % 856,576 771,064 11.1 % Adjusted EBITDA expenses 104,675 90,202 16.0 % 214,847 186,314 15.3 % Adjusted EBITDA $ 330,158 $ 306,990 7.5 % $ 641,729 $ 584,750 9.7 % Adjusted EBITDA margin % 75.9 % 77.3 % 74.9 % 75.8 % Analytics Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % In thousands 2025 2024 Change 2025 2024 Change Operating revenues: Recurring subscriptions $ 169,781 $ 162,128 4.7 % $ 339,536 $ 322,679 5.2 % Non-recurring 7,922 3,867 104.9 % 10,352 7,282 42.2 % Total operating revenues 177,703 165,995 7.1 % 349,888 329,961 6.0 % Adjusted EBITDA expenses 85,097 84,323 0.9 % 181,252 176,077 2.9 % Adjusted EBITDA $ 92,606 $ 81,672 13.4 % $ 168,636 $ 153,884 9.6 % Adjusted EBITDA margin % 52.1 % 49.2 % 48.2 % 46.6 % Sustainability and Climate Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % In thousands 2025 2024 Change 2025 2024 Change Operating revenues: Recurring subscriptions $ 87,027 $ 78,000 11.6 % $ 169,764 $ 154,418 9.9 % Non-recurring 1,884 1,855 1.6 % 3,766 3,321 13.4 % Total operating revenues 88,911 79,855 11.3 % 173,530 157,739 10.0 % Adjusted EBITDA expenses 57,234 55,925 2.3 % 118,032 112,718 4.7 % Adjusted EBITDA $ 31,677 $ 23,930 32.4 % $ 55,498 $ 45,021 23.3 % Adjusted EBITDA margin % 35.6 % 30.0 % 32.0 % 28.5 % All Other - Private Assets Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % In thousands 2025 2024 Change 2025 2024 Change Operating revenues: Recurring subscriptions $ 70,313 $ 64,309 9.3 % $ 137,132 $ 127,443 7.6 % Non-recurring 919 598 53.7 % 1,379 1,707 (19.2 )% Total operating revenues 71,232 64,907 9.7 % 138,511 129,150 7.2 % Adjusted EBITDA expenses 51,294 47,544 7.9 % 104,354 99,277 5.1 % Adjusted EBITDA $ 19,938 $ 17,363 14.8 % $ 34,157 $ 29,873 14.3 % Adjusted EBITDA margin % 28.0 % 26.8 % 24.7 % 23.1 % Consolidated Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % In thousands 2025 2024 Change 2025 2024 Change Operating revenues: Recurring subscriptions $ 562,768 $ 521,469 7.9 % $ 1,115,409 $ 1,034,524 7.8 % Asset-based fees 184,072 163,281 12.7 % 361,487 313,540 15.3 % Non-recurring 25,839 23,199 11.4 % 41,609 39,850 4.4 % Operating revenues total 772,679 707,949 9.1 % 1,518,505 1,387,914 9.4 % Adjusted EBITDA expenses 298,300 277,994 7.3 % 618,485 574,386 7.7 % Adjusted EBITDA $ 474,379 $ 429,955 10.3 % $ 900,020 $ 813,528 10.6 % Operating margin % 55.0 % 54.0 % 52.8 % 52.0 % Adjusted EBITDA margin % 61.4 % 60.7 % 59.3 % 58.6 % Table 6: Sales and Retention Rate (unaudited)(1) Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % In thousands 2025 2024 Change 2025 2024 Change Index New recurring subscription sales $ 29,274 $ 31,297 (6.5 )% $ 51,698 $ 54,810 (5.7 )% Subscription cancellations (9,241 ) (10,312 ) (10.4 )% (17,495 ) (25,014 ) (30.1 )% Net new recurring subscription sales $ 20,033 $ 20,985 (4.5 )% $ 34,203 $ 29,796 14.8 % Non-recurring sales $ 17,473 $ 17,993 (2.9 )% $ 29,847 $ 30,804 (3.1 )% Total gross sales $ 46,747 $ 49,290 (5.2 )% $ 81,545 $ 85,614 (4.8 )% Total Index net sales $ 37,506 $ 38,978 (3.8 )% $ 64,050 $ 60,600 5.7 % Index Retention Rate 96.0 % 95.2 % 96.3 % 94.2 % Analytics New recurring subscription sales $ 25,744 $ 21,269 21.0 % $ 38,962 $ 35,357 10.2 % Subscription cancellations (10,915 ) (6,900 ) 58.2 % (18,857 ) (17,694 ) 6.6 % Net new recurring subscription sales $ 14,829 $ 14,369 3.2 % $ 20,105 $ 17,663 13.8 % Non-recurring sales $ 5,839 $ 4,057 43.9 % $ 8,041 $ 6,519 23.3 % Total gross sales $ 31,583 $ 25,326 24.7 % $ 47,003 $ 41,876 12.2 % Total Analytics net sales $ 20,668 $ 18,426 12.2 % $ 28,146 $ 24,182 16.4 % Analytics Retention Rate 93.7 % 95.8 % 94.6 % 94.7 % Sustainability and Climate New recurring subscription sales $ 10,301 $ 18,557 (44.5 )% $ 17,535 $ 30,028 (41.6 )% Subscription cancellations (5,332 ) (4,570 ) 16.7 % (10,026 ) (11,921 ) (15.9 )% Net new recurring subscription sales $ 4,969 $ 13,987 (64.5 )% $ 7,509 $ 18,107 (58.5 )% Non-recurring sales $ 1,327 $ 2,835 (53.2 )% $ 3,241 $ 4,507 (28.1 )% Total gross sales $ 11,628 $ 21,392 (45.6 )% $ 20,776 $ 34,535 (39.8 )% Total Sustainability and Climate net sales $ 6,296 $ 16,822 (62.6 )% $ 10,750 $ 22,614 (52.5 )% Sustainability and Climate Retention Rate 93.8 % 94.3 % 94.2 % 92.5 % All Other - Private Assets New recurring subscription sales $ 9,869 $ 11,654 (15.3 )% $ 19,577 $ 19,918 (1.7 )% Subscription cancellations (5,858 ) (5,580 ) 5.0 % (11,498 ) (10,502 ) 9.5 % Net new recurring subscription sales $ 4,011 $ 6,074 (34.0 )% $ 8,079 $ 9,416 (14.2 )% Non-recurring sales $ 757 $ 752 0.7 % $ 1,818 $ 1,841 (1.2 )% Total gross sales $ 10,626 $ 12,406 (14.3 )% $ 21,395 $ 21,759 (1.7 )% Total All Other - Private Assets net sales $ 4,768 $ 6,826 (30.1 )% $ 9,897 $ 11,257 (12.1 )% All Other - Private Assets Retention Rate 91.2 % 91.2 % 91.4 % 91.7 % Consolidated New recurring subscription sales $ 75,188 $ 82,777 (9.2 )% $ 127,772 $ 140,113 (8.8 )% Subscription cancellations (31,346 ) (27,362 ) 14.6 % (57,876 ) (65,131 ) (11.1 )% Net new recurring subscription sales $ 43,842 $ 55,415 (20.9 )% $ 69,896 $ 74,982 (6.8 )% Non-recurring sales $ 25,396 $ 25,637 (0.9 )% $ 42,947 $ 43,671 (1.7 )% Total gross sales $ 100,584 $ 108,414 (7.2 )% $ 170,719 $ 183,784 (7.1 )% Total net sales $ 69,238 $ 81,052 (14.6 )% $ 112,843 $ 118,653 (4.9 )% Total Retention Rate 94.4 % 94.8 % 94.8 % 93.8 % (1) See "Notes Regarding the Use of Operating Metrics" for details regarding the definition of new recurring subscription sales, subscription cancellations, net new recurring subscription sales, non-recurring sales, total gross sales, total net sales and Retention Rate. Table 7: AUM in ETFs Linked to MSCI Equity Indexes (unaudited)(1)(2) Three Months Ended Six Months Ended June 30, Sep. 30, Dec. 31, Mar. 31, June 30, June 30, June 30, In billions 2024 2024 2024 2025 2025 2024 2025 Beginning Period AUM in ETFs linked to MSCI equity indexes $ 1,582.6 $ 1,631.9 $ 1,761.8 $ 1,724.7 $ 1,783.1 $ 1,468.9 $ 1,724.7 Market Appreciation/(Depreciation) 21.2 111.3 (85.3 ) 16.4 193.0 114.0 209.4 Cash Inflows 28.1 18.6 48.2 42.0 48.5 49.0 90.5 Period-End AUM in ETFs linked to MSCI equity indexes $ 1,631.9 $ 1,761.8 $ 1,724.7 $ 1,783.1 $ 2,024.6 $ 1,631.9 $ 2,024.6 Period Average AUM in ETFs linked to MSCI equity indexes $ 1,590.6 $ 1,677.0 $ 1,755.4 $ 1,793.7 $ 1,868.7 $ 1,549.7 $ 1,831.2 Period-End Basis Point Fee(3) 2.47 2.44 2.44 2.43 2.43 2.47 2.43 (1) The historical values of the AUM in ETFs linked to our equity indexes as of the last day of the month and the monthly average balance can be found under the link "AUM in ETFs Linked to MSCI Equity Indexes" on our Investor Relations homepage at Information contained on our website is not incorporated by reference into this Press Release or any other report filed with the SEC. The AUM in ETFs also includes AUM in Exchange Traded Notes, the value of which is less than 1% of the AUM amounts presented. (2) The value of AUM in ETFs linked to MSCI equity indexes is calculated by multiplying the equity ETFs net asset value by the number of shares outstanding. (3) Based on period-end Run Rate for ETFs linked to MSCI equity indexes using period-end AUM. Table 8: Run Rate (unaudited)(1) As of June 30, June 30, % % In thousands 2025 2024 Run Rate Growth Organic Run Rate Growth Index Recurring subscriptions $ 968,712 $ 891,633 8.6 % 8.6 % Asset-based fees 757,298 646,811 17.1 % 17.1 % Index Run Rate 1,726,010 1,538,444 12.2 % 12.2 % Analytics Run Rate 730,640 674,609 8.3 % 6.8 % Sustainability and Climate Run Rate 369,759 333,683 10.8 % 6.5 % All Other - Private Assets Run Rate 280,313 260,556 7.6 % 6.0 % Total Run Rate $ 3,106,722 $ 2,807,292 10.7 % 9.6 % Total recurring subscriptions $ 2,349,424 $ 2,160,481 8.7 % 7.4 % Total asset-based fees 757,298 646,811 17.1 % 17.1 % Total Run Rate $ 3,106,722 $ 2,807,292 10.7 % 9.6 % (1) See "Notes Regarding the Use of Operating Metrics" for details regarding the definition of Run Rate. Table 9: Reconciliation of Net Income to Adjusted EBITDA (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands 2025 2024 2025 2024 Net income $ 303,650 $ 266,758 $ 592,250 $ 522,712 Provision for income taxes 74,190 73,236 116,660 113,175 Other expense (income), net 47,394 42,614 93,347 86,103 Operating income 425,234 382,608 802,257 721,990 Amortization of intangible assets 43,760 40,773 87,632 79,377 Depreciation and amortization of property, equipment and leasehold improvements 5,385 4,226 10,131 8,307 Acquisition-related integration and transaction costs(1) — 2,348 — 3,854 Consolidated adjusted EBITDA $ 474,379 $ 429,955 $ 900,020 $ 813,528 Index adjusted EBITDA $ 330,158 $ 306,990 $ 641,729 $ 584,750 Analytics adjusted EBITDA 92,606 81,672 168,636 153,884 Sustainability and Climate adjusted EBITDA 31,677 23,930 55,498 45,021 All Other - Private Assets adjusted EBITDA 19,938 17,363 34,157 29,873 Consolidated adjusted EBITDA $ 474,379 $ 429,955 $ 900,020 $ 813,528 (1) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition. Table 10: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted EPS (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, In thousands, except per share data 2025 2024 2025 2024 Net income $ 303,650 $ 266,758 $ 592,250 $ 522,712 Plus: Amortization of acquired intangible assets 24,200 25,893 50,017 51,160 Plus: Acquisition-related integration and transaction costs(1) — 2,348 — 3,854 Plus: Write-off of deferred fees on debt extinguishment — — — 1,510 Less: Income tax effect(2) (4,919 ) (6,164 ) (8,231 ) (10,172 ) Adjusted net income $ 322,931 $ 288,835 $ 634,036 $ 569,064 Diluted EPS $ 3.92 $ 3.37 $ 7.63 $ 6.59 Plus: Amortization of acquired intangible assets 0.31 0.32 0.64 0.64 Plus: Acquisition-related integration and transaction costs(1) — 0.03 — 0.05 Plus: Write-off of deferred fees on debt extinguishment — — — 0.02 Less: Income tax effect(2) (0.06 ) (0.08 ) (0.10 ) (0.13 ) Adjusted EPS $ 4.17 $ 3.64 $ 8.17 $ 7.17 Diluted weighted average common shares outstanding 77,496 79,245 77,651 79,377 (1) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition. (2) Adjustments relate to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. Table 11: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (unaudited) Three Months Ended Six Months Ended Full-Year June 30, June 30, June 30, June 30, 2025 In thousands 2025 2024 2025 2024 Guidance (1) Total operating expenses $ 347,445 $ 325,341 $ 716,248 $ 665,924 $1,405,000 - $1,445,000 Amortization of intangible assets 43,760 40,773 87,632 79,377 Depreciation and amortization of property, equipment and leasehold improvements 5,385 4,226 10,131 8,307 $185,000 - $195,000 Acquisition-related integration and transaction costs(2) — 2,348 — 3,854 Consolidated adjusted EBITDA expenses $ 298,300 $ 277,994 $ 618,485 $ 574,386 $1,220,000 - $1,250,000 Index adjusted EBITDA expenses $ 104,675 $ 90,202 $ 214,847 $ 186,314 Analytics adjusted EBITDA expenses 85,097 84,323 181,252 176,077 Sustainability and Climate adjusted EBITDA expenses 57,234 55,925 118,032 112,718 All Other - Private Assets adjusted EBITDA expenses 51,294 47,544 104,354 99,277 Consolidated adjusted EBITDA expenses $ 298,300 $ 277,994 $ 618,485 $ 574,386 $1,220,000 - $1,250,000 (1) We have not provided a full line-item reconciliation for total operating expenses to adjusted EBITDA expenses for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See "Forward-Looking Statements" above. (2) Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition. Table 12: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited) Three Months Ended Six Months Ended Full-Year June 30, June 30, June 30, June 30, 2025 In thousands 2025 2024 2025 2024 Guidance (1) Net cash provided by operating activities $ 336,138 $ 349,248 $ 637,875 $ 649,385 $1,525,000 - $1,575,000 Capital expenditures (11,448 ) (8,618 ) (22,948 ) (12,889 ) Capitalized software development costs (23,115 ) (18,707 ) (44,476 ) (38,673 ) Capex (34,563 ) (27,325 ) (67,424 ) (51,562 ) ($115,000 - $125,000) Free cash flow $ 301,575 $ 321,923 $ 570,451 $ 597,823 $1,400,000 - $1,460,000 (1) We have not provided a line-item reconciliation for free cash flow to net cash provided by operating activities for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See "Forward-Looking Statements" above. Table 13: Second Quarter 2025 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited) Comparison of the Three Months Ended June 30, 2025 and 2024 Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Index Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 9.5 % 8.6 % 12.7 % (10.5 )% Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (0.2 )% (0.3 )% — % — % Organic operating revenue growth 9.3 % 8.3 % 12.7 % (10.5 )% Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Analytics Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 7.1 % 4.7 % — % 104.9 % Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (0.5 )% (0.4 )% — % (4.7 )% Organic operating revenue growth 6.6 % 4.3 % — % 100.2 % Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Sustainability and Climate Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 11.3 % 11.6 % — % 1.6 % Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (4.2 )% (4.3 )% — % (3.1 )% Organic operating revenue growth 7.1 % 7.3 % — % (1.5 )% Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues All Other - Private Assets Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 9.7 % 9.3 % — % 53.7 % Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (1.5 )% (1.5 )% — % (1.9 )% Organic operating revenue growth 8.2 % 7.8 % — % 51.8 % Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Consolidated Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 9.1 % 7.9 % 12.7 % 11.4 % Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (0.8 )% (1.0 )% — % (1.1 )% Organic operating revenue growth 8.3 % 6.9 % 12.7 % 10.3 % Table 14: Six Months 2025 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited) Comparison of the Six Months Ended June 30, 2025 and 2024 Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Index Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 11.1 % 9.1 % 15.3 % (5.2 )% Impact of acquisitions and divestitures — % (0.1 )% — % — % Impact of foreign currency exchange rate fluctuations (0.1 )% (0.1 )% — % — % Organic operating revenue growth 11.0 % 8.9 % 15.3 % (5.2 )% Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Analytics Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 6.0 % 5.2 % — % 42.2 % Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (0.1 )% (0.1 )% — % (2.3 )% Organic operating revenue growth 5.9 % 5.1 % — % 39.9 % Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Sustainability and Climate Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 10.0 % 9.9 % — % 13.4 % Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (1.9 )% (1.9 )% — % (1.0 )% Organic operating revenue growth 8.1 % 8.0 % — % 12.4 % Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues All Other - Private Assets Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 7.2 % 7.6 % — % (19.2 )% Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (0.5 )% (0.5 )% — % (0.8 )% Organic operating revenue growth 6.7 % 7.1 % — % (20.0 )% Total Recurring Subscription Asset-Based Fees Non-Recurring Revenues Consolidated Change Percentage Change Percentage Change Percentage Change Percentage Operating revenue growth 9.4 % 7.8 % 15.3 % 4.4 % Impact of acquisitions and divestitures — % — % — % — % Impact of foreign currency exchange rate fluctuations (0.3 )% (0.4 )% — % (0.5 )% Organic operating revenue growth 9.1 % 7.4 % 15.3 % 3.9 % View source version on Contacts MSCI Inc. Contacts Investor Inquiries Jeremy Ulan +1 646 778 Jisoo Suh + 1 917 825 7111 Media Inquiries PR@ Melanie Blanco +1 212 981 1049Konstantinos Makrygiannis +44(0)7768 930056Tina Tan + 852 2844 9320 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arabian Business
9 hours ago
- Business
- Arabian Business
Dubai developer Binghatti reports 172% net profit surge to record $495mn in H1 2025
Binghatti Holding Ltd posted a net profit of AED 1.82 billion for the first half of 2025, marking a 172 per cent increase from AED 668 million in the same period last year. The UAE luxury real estate developer reported total sales of AED 8.8 billion, up 60 per cent year-on-year, whilst revenue climbed 189 per cent to AED 6.3 billion. The company's revenue backlog reached AED 12.5 billion as of June 30, 2025, compared to AED 6.6 billion in the previous year. Muhammad BinGhatti, Chairman of Binghatti Holding Ltd, said in a statement: 'The first half of 2025 has been a period of exceptional growth for Binghatti Holding and the extraordinary year-on-year growth of our net profit and revenue is a reflection of the market's confidence in our differentiated model, one that is built around architectural excellence, speed of execution, and integrated value creation across the entire real estate ecosystem.' He added: 'As Dubai continues to attract global capital and high-net-worth individuals, our developments have become increasingly relevant to an international audience. The rising share of non-resident buyers speaks volumes about both our reach and Dubai's position as a safe, fast-growing investment destination. 'Meanwhile, our expansion into regulated asset management through the launch of Binghatti Capital is an operational milestone that represents a leap forward in how we fund and structure our expanding development portfolio. With the acquisition of our Nad Al Sheba megaplot, we are laying the foundations for our next chapter, one that will be defined by creating master-planned curated communities that will shape the future of luxury living.' Binghatti advances Dubai real estate portfolio The company launched seven projects during the six-month period and delivered four developments, handing over 1,441 units to the market. Binghatti currently has approximately 20,000 units under development across 30 projects in areas including Downtown, Business Bay, Jumeirah Village Circle, Al Jaddaf, Meydan, Dubai Science Park, Dubai Production City, and Sports City. Non-resident buyers accounted for 61 per cent of sales in H1 2025, up from 55 per cent in the previous year. The leading buyer nationalities included India, Turkey and China. The company opened a London sales office in July to support its international expansion. Binghatti's branded residences, developed with Bugatti, Mercedes-Benz, and Jacob & Co., attracted buyers including Brazilian footballer Neymar Jr. and opera singer Andrea Bocelli. The company launched BinGhatti Capital, a DFSA-regulated firm headquartered in DIFC, targeting $1 billion in private credit and real estate strategies. CEO Katralnada Binghatti added: 'BinGhatti Holding sets itself apart in the market by being active across the entire real estate ecosystem, from land acquisition and architectural design, through construction, sales, and aftercare, all the way to capital structuring and institutional fundraising.' In May, the company signed a memorandum of understanding with Abu Dhabi Islamic Bank (ADIB) to offer Sharia-compliant home financing solutions. Under the agreement, eligible buyers can secure financing once construction reaches 35 per cent completion and 50 per cent of payments have been made. Dubai Land Department (DLD) and the Dubai Department of Economy and Tourism (DET) selected Binghatti as one of 13 developers for the First-Time Home Buyer (FTHB) Programme. The company committed to allocating at least 10 per cent of newly launched and existing residential units priced under AED 5 million to eligible first-time buyers. Binghatti became a founding partner of the Dubai PropTech Hub, a joint initiative of the DIFC Innovation Hub and the Dubai Land Department. The hub aims to attract $300 million in venture capital by 2030. The company acquired a megaplot in Nad Al Sheba 1 in the Meydan district, covering over 9 million square feet of gross floor area. This will serve as the foundation for its first master-planned residential community in Dubai with a total development value exceeding AED 25 billion. Stable outlook on strong finances In March, Moody's Ratings assigned Binghatti a first-time Ba3 Corporate Family Rating (CFR) with a stable outlook. Fitch Ratings upgraded the company's Long-Term Issuer Default Rating (IDR) and senior unsecured debt to BB- from B+, also with a stable outlook. Both agencies recognised the company's low net debt-to-EBITDA ratio of 0.8x and its ability to self-fund future projects through internally generated cash flows. Dubai's population surpassed 3.75 million as of June 2025 and is expected to exceed 4 million by the end of 2026. Over 19,700 new residential units were handed over in the first half of 2025, primarily in JVC, Al Merkadh and Business Bay. Binghatti CEO added: 'With continued robust demand for Dubai real estate amid the steady growth of the Emirate's population, and a strong funding platform in place, we are well-positioned to meet the rising demand for across the entire real estate product spectrum.' The company has delivered over 12,000 residential units since inception and maintains a portfolio of more than 80 projects valued at over AED 70 billion.
