MSCI (MSCI) Q1 2025 Earnings
How Did MSCI Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +10.59%.
Did MSCI Beat Earnings? Q1 2025 Results
Yes. MSCI reported Q1 2025 earnings of $4.00 a share on Apr 22, 2025, beating the $3.90 consensus estimate by 2.5%. Revenue was $745.8M against a $744.5M estimate.
MSCI kicked off 2025 with a clean beat on both top and bottom lines, reporting first-quarter adjusted EPS of $4.00 against a consensus estimate of $3.90, a 2.46% beat, while revenue of $745.83 million edged past expectations by 0.18% and climbed 9.7% year-over-year. The standout driver was the Index segment, which generated $421.74 million in revenue, up 12.8%, fueled by an 18.1% surge in asset-based fees as ETF assets under management linked to MSCI equity indexes swelled to $1.78 trillion on the back of $42.00 billion in net cash inflows during the quarter. Operating margins expanded to 50.6% from 49.9% a year ago, reflecting disciplined cost management even as the company broadened its footprint in climate analytics and wealth management. Client retention improved sharply to 95.3% from 92.8%, signaling durable demand for what CEO Henry Fernandez described as mission-critical products across all market environments. MSCI maintained its full-year 2025 free cash flow guidance of $1.40 billion to $1.46 billion, underscoring management's confidence in the business despite broader market uncertainty.
- Recurring subscription revenue growth of 7.7% driven by market-cap weighted Index products
- Asset-based fees up 18.1% driven by increased average AUM in ETFs linked to MSCI equity indexes
- Retention Rate improved to 95.3% from 92.8% year-over-year
- Net new recurring subscription sales grew 33.2% to $26.1 million
- Organic recurring subscription Run Rate growth of 8.2%
- Total Run Rate reached $2.98 billion, up 9.3%
- Strong run-rate growth with asset owners, hedge funds, banks and broker dealers, and wealth managers
- Lower effective tax rate of 12.8% vs. 13.5% driven by excess tax benefits on stock compensation vesting
“In the first quarter, MSCI delivered strong financial metrics, durable retention, and solid asset-based-fee revenue growth. At the product level, we drove recurring net new sales growth across Index, Analytics, and Private Assets. At the client-segment level, we posted strong run-rate growth with asset owners, hedge funds, banks and broker dealers, and wealth managers.”
MSCI CEO, on the earnings call
What Was MSCI's Outlook in Q1 2025?
MSCI maintained its full-year 2025 guidance: operating expenses of $1,405-$1,445 million; adjusted EBITDA expenses of $1,220-$1,250 million; interest expense of $182-$186 million; depreciation & amortization of $185-$195 million; effective tax rate of 17.5%-20.0%; capital expenditures of $115-$125 million; net cash provided by operating activities of $1,525-$1,575 million; and free cash flow of $1,400-$1,460 million. CEO Fernandez emphasized MSCI's resilient business model and mission-critical products that support durable financial results across all phases of the market cycle, including periods of global turmoil.
MSCI YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $745.8M | $679.9M | +9.7% |
| Operating Income | $377.0M | $339.4M | +11.1% |
| Net Income | $288.6M | $256.0M | +12.8% |
MSCI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.