MSCI Q4 2025 Revenues Up 10.6%, Adjusted EPS Up 11.5%
MSCI reported Q4 2025 operating revenues of $822.5 million, up 10.6% year-over-year, with recurring subscription revenues rising 7.5% and asset-based fees surging 20.7%. Adjusted EPS reached $4.66, up 11.5%, as the company repurchased $2.47 billion of stock and raised its cash dividend 13.9% to $2.05 per share.
1. Fourth Quarter Revenue and Profit Growth
MSCI reported operating revenues of $822.5 million for the quarter ended December 31, 2025, representing a 10.6% increase versus the prior year period and 10.2% organic growth. Operating income rose 14.4% to $463.6 million, driving an operating margin of 56.4%, up from 54.5% a year ago. Adjusted EBITDA reached $512.0 million, up 13.2%, with an adjusted EBITDA margin expanding to 62.2%. Diluted EPS was $3.81, a 2.3% decline reflecting higher tax and interest expenses, while adjusted EPS climbed 11.5% to $4.66, marking the company’s eleventh consecutive year of double-digit adjusted EPS growth.
2. Recurring Revenue and Asset-Based Fees Momentum
Recurring subscription revenues increased by $40.9 million, or 7.5%, driven by higher demand for multi-asset class analytics and custom index solutions. Asset-based fees surged 20.7%, adding $36.3 million, fueled by record inflows into ETFs and non-ETF indexed funds linked to MSCI equity indexes. Total run rate reached $3.30 billion at quarter-end, up 13.0%, with recurring subscription run rate up 7.7% and asset-based fee run rate up 13.9%. Customer retention remained robust at 93.4%, slightly above last year’s 93.1%.
3. Shareholder Returns and Capital Deployment
During the fourth quarter, MSCI repurchased 4.41 million shares for $2.47 billion at an average price of $559.85 per share. The board declared a quarterly cash dividend of $2.05 per share, a 13.9% increase over the prior quarter, resulting in $134.7 million of dividend payments in the quarter. Through January 27, 2026, year-to-date repurchases totaled $2.47 billion, underscoring the company’s commitment to returning capital to shareholders.
4. Segment Highlights and Operating Metrics
In the Index segment, revenues rose 14.0% to $479.1 million, with asset-based fees up 20.7% and recurring subscriptions up 7.8%; adjusted EBITDA margin expanded to 78.1%. Analytics revenues grew 5.5% to $182.3 million, driven by Equity and Multi-Asset Class Analytics, with a 46.0% adjusted EBITDA margin. Sustainability and Climate revenues increased 5.9% to $90.3 million, supported by Ratings and Climate product growth in EMEA, achieving a 42.3% adjusted EBITDA margin. Total headcount reached 6,268, a 2.2% increase year-over-year, with 71% based in emerging markets.