MCOMoody's Corporation

Year Ended December 31, Financial measure: 2025 2024 2023 % Change Favorable (Unfavorable) Insight and Key Drivers of Change Compared to Prior Year Moody's total revenue $7,718 $7,088 $5,916 20 9 — reflects strong revenue growth in both segments MA external revenue $3,599 $3,295 $3,056 8 9 — sustained demand for KYC, insurance offerings and SaaS-based banking solutions; — ongoing strong retention for ratings data feeds and company data applications; KYC offerings; and — continued demand and sales growth for credit research and economic research ratings data feed product offerings — Organic constant currency revenue(1) growth was 7%, and ARR(2) grew 8% MIS external revenue $4,119 $3,793 $2,860 33 reflects issuance growth across all LOBs resulting from: 9 — favorable market conditions for issuers, due to sustained strong investor demand and tight credit spreads and declining interest rates that drove strong refinancing activity; and — demand from investors as yields remained high for a majority of the year supported revenue growth in all ratings LOBs Total operating and SG&A expenses $3,776 $3,680 $3,319 (11 — higher incentive and stock-based compensation aligned with financial and operating performance; and (3 — higher salaries and benefits reflecting an increase in headcount headcount, including from acquisitions, and annual salary increases; and — increases in both segments technology infrastructure costs within the MA segment attributable to operational growth; partially offset by — a decrease in incentive compensation which aligns with financial and operational performance relative to targets Depreciation and amortization $480 $431 $373 (16 (11 — higher amortization relating to of internally developed software, primarily related to the development of MA SaaS solutions cloud-based solutions; and — amortization of recently acquired intangible assets Restructuring $108 $59 $87 32 (83 — relates to the Company's restructuring programs, more fully discussed in Note 9 to the consolidated financial statements Charges related to asset abandonment $3 $43 $— NM 93 — costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which is are more fully discussed in Note 22 to the consolidated financial statements Total non-operating (expense) income, net $(221) $(176) $(202) 13 — an increase in interest income of $39 million due to higher cash and short-term investment balances and higher interest rates; and (26 — a net decrease expense reflecting the release of $30 million in foreign exchange losses recorded during the year mainly attributable to an immaterial out-of-period adjustment relating to the 2022 fiscal year recorded in the first quarter of 2023; partially offset by: — an increase in indemnification asset and tax-related interest expense of $21 million mainly due to accruals associated with the favorable resolution of tax matters exposures assumed in a prior-year M&A transaction. These amounts offset the tax benefit described in the prior year ETR section below, and accordingly, have no impact on diluted or Adjusted Diluted EPS(1); partially offset by — a gain on the divestiture of the MA Learning Solutions business as more fully discussed in Note 22 to the consolidated financial statements. Operating Margin 43.4% 40.6% 36.1% 450BPS 280BPS — operating Operating margin and Adjusted Operating Margin(1) expansion reflects strong revenue growth, particularly in MIS, outpacing operating and SG&A expense growth coupled with disciplined cost management Adjusted Operating Margin(1) 51.1% 48.1% 43.9% 420BPS 300BPS ETR 21.3% 23.7% 16.9% (680BPS) 240BPS — higher ETR primarily Primarily reflects tax benefits recognized in 2025 pursuant to the first quarter lapse of 2023, which resulted from a statute of limitations related to tax exposures assumed in a prior-year M&A transaction, as more fully discussed in Note 15 to the resolutions of UTPs consolidated financial statements. These amounts offset the net expense described in various U.S. the non-operating (expense) income, net section above, and non-U.S. tax jurisdictions accordingly, have no impact on diluted or Adjusted Diluted EPS(1) Diluted EPS $13.67 $11.26 $8.73 29 21 — increase reflects the aforementioned revenue growth in operating income/Adjusted Operating Income(1) driven mainly by increases in MIS revenue, partially offset by: — a $0.76 per share benefit in the prior year resulting from the resolutions of tax matters in the first quarter of 2023 and margin expansion Adjusted Diluted EPS(1) $14.94 $12.47 $9.90 26 20

Moody’s faces exposure to litigation and government and regulatory proceedings, investigations and inquiries (including market studies) related to MIS’s ratings actions, as well as other business practices and products within both MIS and MA. When the market value of credit-dependent instruments has declined or defaults have occurred, whether as a result of difficult economic times, rapid changes in interest rates, decreased liquidity, turbulent markets or otherwise, the number of investigations and legal proceedings that Moody’s has faced has increased significantly. Parties who invest in securities rated by MIS or issued by MIS-rated entities have pursued claims against MIS or Moody’s for losses they faced in their portfolios. For instance, Moody’s faced numerous class action lawsuits and other litigation, government investigations and inquiries (including market studies) concerning events linked to the U.S. subprime residential mortgage sector and broader deterioration in the credit markets during and after the financial crisis of 2007-2008. Evolving and/or inconsistent expectations regarding climate-risk and other sustainability disclosures and reporting could also result in increased regulatory scrutiny and new regulatory actions at a corporate and business unit level. MA’s offering of products and services relating to sanctions, KYC and financial crime may result in increased regulatory scrutiny and could expose the Company to increased risk of litigation from data subjects and other third-parties, including due to potential inaccuracies in the products and services we offer, as well as regulatory recordkeeping requirements associated with our services. Additionally, as Moody’s develops its Gen AI product offerings and/or increases its use of Gen AI, the Company Moody's may face increased regulatory scrutiny additional government investigations and exposure inquiries related to increased litigation. Legal proceedings and regulatory inquiries and investigations impose additional expenses on the Company and require the attention of senior management to an extent that may significantly reduce their ability to devote time to addressing other business issues, and any of these proceedings, investigations or inquiries (including market studies) could ultimately result in adverse judgments, damages, fines, penalties or activity restrictions. Risks relating to legal proceedings are heightened in foreign jurisdictions that lack the legal protections or liability standards comparable to those that exist in the U.S. In addition, new laws and regulations have been and may continue to be enacted that establish lower liability standards, shift the burden of proof or relax pleading requirements, thereby increasing the risk of successful litigations in the U.S. and in foreign jurisdictions. These litigation risks are often difficult to assess or quantify. Moody’s may not have adequate insurance or reserves to cover these risks, and the existence and magnitude of these risks often remain unknown for substantial periods of time. Furthermore, when Moody’s is unable to achieve dismissals at an early stage and litigation matters proceed to trial, the aggregate legal defense costs incurred by Moody’s increase substantially, as does the risk of an adverse outcome. private credit

In December 2023, September 2025, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): 2025-06 "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to Income Tax Disclosures" the Accounting for Internal-Use Software" ("ASU No. 2023-09"), which is 2025-06"). This ASU eliminates prescriptive software development stages and requires capitalization of software costs when (1) management commits to funding the project, and (2) completion and intended use are probable, with consideration to enhance when significant uncertainty associated with the transparency and decision usefulness of income tax disclosures. The amendments in ASU No. 2023-09 require entities to disclose additional income tax information, primarily related to greater disaggregation development activities of the entity's ETR reconciliation software no longer exists. This ASU also clarifies the disclosure requirements for internal-use software costs and income taxes paid by jurisdiction disclosures. supersedes prior guidance on website development costs. This ASU is effective for annual reporting periods beginning after December 15, 2024, and should be applied on a prospective basis; however, 2027, with early adoption permitted. Entities may transition using prospective, modified prospective, or retrospective application is permitted. approaches. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

Given the nature of the Company's activities, Moody’s and its subsidiaries are subject to legal and tax proceedings, governmental, regulatory and legislative investigations, subpoenas and other inquiries, and claims and litigation by governmental and private parties that are based on ratings assigned by MIS or that are otherwise incidental to the Company’s business. Moody’s and MIS also are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties or restrictions on business activities. On September 3, 2024, MIS settled charges by the SEC for failure to comply with record preservation requirements applicable to MIS. The settlement followed an investigation relating to certain business communications sent over electronic messaging channels that had not been approved by MIS. The SEC has settled similar charges with other NRSROs and other registrants subject to record preservation requirements. The terms of MIS’s settlement included the payment of a $20 million civil monetary penalty. As previously disclosed, the Company had accrued that amount in its consolidated financial statements. Moody’s also is subject to ongoing tax audits as addressed in Note 15 to the consolidated financial statements.