MSCI Posts $3.13B Revenue, $1.46B Free Cash Flow and 93% Retention
MSCI Inc. reported 2025 revenue of $3.13B, up nearly 10%, and free cash flow of $1.46B, marking its 11th straight year of double-digit adjusted EPS growth. The firm’s 93.4% client retention and 56% operating margin support its $2.34T ETF-linked AUM, including $66.9B in Q4 inflows.
1. 2025 Financial Performance
MSCI achieved full-year 2025 revenue of $3.13 billion, a near 10% increase year-over-year, and generated $1.46 billion in free cash flow. This performance extended its streak to 11 consecutive years of double-digit adjusted EPS growth, underscoring the resilience of its fee-based model.
2. Client Retention and Margin Profile
The company maintained a 93.4% client retention rate, reflecting strong customer lock-in for its benchmark and risk analytics products. An operating margin of approximately 56% highlights efficient cost management and scalable subscription revenues.
3. ETF AUM Growth
MSCI’s equity indexes now underpin $2.34 trillion in ETF assets under management, driven by $66.9 billion of net inflows in Q4. These inflows bolster recurring licensing fees and reinforce MSCI’s role as a critical infrastructure provider for passive investing strategies.
4. Valuation and Analyst Consensus
Analysts assign a consensus target price of $678.31 versus a current share price near $564, supported by 15 buy or strong buy ratings and no sell recommendations. The premium valuation reflects expectations for continued margin expansion and sustained cash generation.