MSCI Reports Financial Results for
– 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 September 30, 2026 (“third quarter 2026”) and nine months ended September 30, 2026 (“nine months 2026”).
(Note: Unless otherwise noted, percentage and other changes are relative to the three months ended September 30, 2025 (“third quarter 2025”) and Run Rate percentage changes are relative to September 30, 2025).
• Operating revenues of $892.0 million, up 12.4%; Organic operating revenue growth of 12.3%
• Organic recurring subscription Run Rate growth of 8.7%; Retention Rate of 95.0%
• In third quarter 2026 and through October 19, 2026, a total of $627.2 million or 1,116,460 shares were repurchased at an average repurchase price of $561.81
• Approximately $147.5 million in dividends were paid to shareholders in third quarter 2026; Cash dividend of $2.05 per share declared by MSCI Board of Directors for fourth quarter 2026
“In the third quarter MSCI delivered strong financial and operating metrics, including our best-ever recurring net-new sales in Analytics and Private Capital Solutions, our best-ever Q3 recurring net-new sales in Index, and another record quarter for asset-based fees. Among client segments and regions, we achieved our best-ever quarter both with asset owners and in Asia-Pacific,” said Henry A. Fernandez, Chairman and CEO of MSCI.
“Thanks to these results, we entered Q4 with solid momentum and strong client engagement across our franchise. Notably, we have seen robust demand for both our traditional and newer solutions. All of this shows that MSCI is expanding our foundational, mission-critical role in global investing even as we transform our business for today’s AI-first world,” Fernandez added. 1
: Operating revenues were $892.0 million, up 12.4%. Organic operating revenue growth was 12.3%. The $98.6 million increase was the result of $49.1 million in higher asset-based fees, $44.5 million in higher recurring subscription revenues and $5.0 million in higher non-recurring revenues.
: Total Run Rate at September 30, 2026 was $3,571.9 million, up 12.1%. Recurring subscription Run Rate increased by $209.5 million, and asset-based fees Run Rate increased by $175.9 million. Recurring subscription Run Rate growth was primarily driven by asset managers, hedge funds and banking & brokerages client segments, and record ETF AUM linked to MSCI indexes. Organic recurring subscription Run Rate growth was 8.7%. Retention Rate in third quarter 2026 was 95.0%, compared to 94.7% in third quarter 2025.
: Total operating expenses were $389.9 million, up 12.8%. Adjusted EBITDA expenses were $337.2 million, up 12.8%, primarily reflecting higher non- compensation costs as a result of higher information technology costs, professional fees and market data costs. Additionally, we saw higher compensation and benefits costs primarily driven by higher incentive compensation and salaries, partially offset by increased capitalization of costs related to internally developed software projects. During the third quarter of 2026 we recognized $6.1 million of Adjusted EBITDA expenses and $1.9 million of intangible asset amortization expense related to the Compass, Vantager, PM Insights and First Street acquisitions.
Total operating expenses excluding the impact of foreign currency exchange rate fluctuations (“ex-FX”) and adjusted EBITDA expenses ex-FX increased 13.2% and 13.4%, respectively.
: Operating income was $502.1 million, up 12.2%. Operating income margin in third quarter 2026 was 56.3%, compared to 56.4% in third quarter 2025.
: As of September 30, 2026, we had 6,259 employees, reflecting a 0.1% increase, with 29% and 71% of employees located in developed market and emerging market locations, respectively.
: Other expense (income), net was $74.2 million, up 45.2%, primarily driven by higher interest expense as a result of higher debt levels.
Income Taxes: The effective tax rate was 18.0% in third quarter 2026 compared to 17.9% in third quarter 2025. The increase was primarily driven by a lower operating tax rate in the current year that was offset by smaller net discrete tax benefits compared to the prior year.
: As a result of the factors described above, net income was $351.0 million, up 7.9%.
: Adjusted EBITDA was $554.8 million, up 12.2%. Adjusted EBITDA margin in third quarter 2026 was 62.2%, compared to 62.3% in third quarter 2025. 2
Index operating revenues were $532.6 million, up 18.1%. The $81.5 million increase was primarily driven by $49.1 million in higher asset-based fees and $27.0 million in higher recurring subscription revenues. Organic operating revenue growth for Index was 18.0%.
Index Run Rate as of September 30, 2026, was $2.1 billion, up 16.5%. The $294.8 million increase was comprised of a $175.9 million increase in asset-based fees Run Rate and a $118.9 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 client segments, primarily driven by growth from asset managers, banking & brokerages and hedge funds. The increase also reflected growth across all regions. Organic recurring subscription Run Rate growth for Index was 11.7%.
Analytics operating revenues were $191.0 million, up 4.8%. Organic operating revenue growth for Analytics was 5.2%.
Analytics Run Rate as of September 30, 2026, was $793.5 million, up 6.9%. The increase of $51.1 million was primarily driven by growth in both Equity Analytics and Multi-Asset Class products, and reflected growth across all regions. The increase primarily reflected growth in the hedge funds, asset owners and asset managers client segments. Organic recurring subscription Run Rate growth for Analytics was 7.5%. 3
Sustainability and Climate Run Rate as of September 30, 2026, was $384.8 million, up 3.8%. The $14.0 million increase primarily reflects growth in Climate products with contributions primarily from Americas and EMEA, partially offset by cancellations. Organic recurring subscription Run Rate growth for Sustainability and Climate was 2.4%.
All Other – Private Assets operating revenues, which reflect the Real Assets and Private Capital
Solutions operating segments, were $74.7 million, up 6.7%. Organic operating revenue growth for All Other – Private Assets was 6.7%.
All Other – Private Assets Run Rate was $310.9 million as of September 30, 2026, up 8.9%. The $25.5 million increase was primarily driven by Private Capital Solutions related to Total Plan Manager, Private Capital Transparency Data and Private Capital Intel products. The increase reflected growth across all regions and was primarily driven by the asset owners and asset managers client segments. Organic recurring subscription Run Rate growth for All Other – Private Assets was 9.2%. 4
: Cash and cash equivalents were $261.0 million as of September 30, 2026. 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 September 30, 2026, were $6.8 billion. The total debt to net income ratio (based on trailing twelve months net income) was 4.9x. The total debt to adjusted EBITDA ratio (based on trailing twelve months adjusted EBITDA) was 3.2x.
MSCI seeks to maintain total debt to adjusted EBITDA in a target range of 3.0x to 3.5x.
: Capex was $50.7 million, and net cash provided by operating activities decreased by 3.0% to $436.1 million, primarily reflecting higher cash paid for interest, partially offset by higher cash collections from customers. Free cash flow (non-GAAP) for third quarter 2026 was down 8.9% to $385.4 million.
: Weighted average diluted shares outstanding were 72.3 million in third quarter 2026, down 5.6% year-over-year. Total share repurchases during the quarter were $552.3 million or 1.0 million shares at an average repurchase price of $562.92. Total shares outstanding as of September 30, 2026 were 71.7 million. As of October 19, 2026, a total of approximately $0.9 billion remains available on the outstanding share repurchase authorization.
: Approximately $147.5 million in dividends were paid to shareholders in third quarter 2026. On October 19, 2026, the MSCI Board of Directors declared a cash dividend of $2.05 per share for fourth quarter 2026, payable on November 27, 2026 to shareholders of record as of the close of trading on November 13, 2026.
: On August 3, 2026, MSCI completed the acquisition of First Street Technology, Inc. (“First Street”), a provider of physics-based physical climate risk data and analytics. The aggregate purchase price was $122.6 million, net of cash acquired. The total consideration includes the fair value of potential additional cash payments during the two years following closing, contingent upon the achievement of specified revenue thresholds. First Street’s financial results are reported within the Sustainability and Climate operating segment. 5
MSCI’s guidance for the year ending December 31, 2026 (“Full-Year 2026”) 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 Prior Guidance for Full-Year 2026 Full-Year 2026 Operating Expense $1,535 to $1,575 $1,535 to $1,575 million million Adjusted EBITDA $1,340 to $1,370 $1,340 to $1,370 Expense million million Interest Expense (including $288 to $291 million $282 to $286 million amortization of financing fees)1 Depreciation & $195 to $205 million $195 to $205 million Amortization Expense Effective Tax Rate2 18.0% to 19.5% 18.0% to 20.0% Capital Expenditures $160 to $170 million $160 to $170 million Net Cash Provided by $1,655 to $1,705 $1,655 to $1,705 Operating million million Activities Free Cash Flow $1,485 to $1,545 $1,485 to $1,545 million 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 financing rate (“SOFR”) and indebtedness levels can cause our annual interest expense to vary.
2 Excludes the impact of a multi-phase internal legal entity restructuring that commenced in fourth quarter 2025 and was completed in the first quarter 2026. In connection with the completion of the subsequent phase of the restructuring in first quarter 2026, we recognized a tax benefit of $88 million, which is excluded from applicable non-GAAP measures when presented.
MSCI’s senior management will review the third quarter 2026 results on Tuesday, October 20, 2026 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, https://ir.msci.com/events-and-presentations. 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. -Ends-
MSCI Inc. (NYSE: MSCI) strengthens global markets by connecting participants across the
financial ecosystem with a common language. Our research-based data, analytics and indexes,
supported by advanced technology, set standards for global investors and help our clients
understand risks and opportunities so they can make better decisions and unlock innovation. We
serve asset managers and owners, private-market sponsors and investors, hedge funds, wealth
managers, banks, insurers and corporates. To learn more, please visit www.msci.com . MSCI#IR
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 2026 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, 2025 filed with the Securities and Exchange Commission (“SEC”) on February 6, 2026 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. 7
MSCI uses its investor relations website ir.msci.com 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 http://ir.msci.com/email-alerts . 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.
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 fixed foreign exchange rates. 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;
• 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. 8 • 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 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:
1. 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
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.
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 9 improvements, (4) amortization of intangible assets and, at times, (5) certain other transactions or adjustments, including, when applicable, certain acquisition-related integration, transaction and earn-out 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, transaction and earn-out 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, transaction and earn-out costs, the impact related to the write-off of deferred fees on debt extinguishment, the impact related to certain gains or losses on investees, and the impact of certain discrete tax items.
“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. 10 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. 11 Table 2: Condensed Consolidated Statements of Income (unaudited)
in millions As of ASSETS Sep. 30, Dec. 31, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 261.0 $ 515.3 Accounts receivable 860.1 986.7 Other current assets 177.8 142.8 Total current assets 1,298.9 1,644.8 Property, equipment and leasehold 99.1 87.3 improvements, net Right of use assets 151.4 112.9 Goodwill 3,047.8 2,923.4 Intangible assets, net 899.1 832.5 Other non-current assets 99.0 101.6 Total assets $ 5,595.3 $ 5,702.5 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current liabilities: Deferred revenue $ 1,036.7 $ 1,231.8 Other current liabilities 538.2 598.0 Total current liabilities 1,574.9 1,829.8 Long-term debt 6,716.9 6,202.3 Long-term operating lease 149.2 107.5 liabilities Other non-current liabilities 170.7 217.4 Total liabilities 8,611.7 8,357.0 Total shareholders’ equity -3,016.4 -2,654.5 (deficit) Total liabilities and shareholders’ $ 5,595.3 $ 5,702.5 equity (deficit)
Table 10: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted EPS (unaudited)
in mill… exce… Three Nine per Months Months share Ended Sep. Sep. Ended Sep. Sep. data 2026 30, 2025 30, 2026 30, 2025 30, ────────────────────────────────────────────────────────────────────────────── Net $ 351.0 $ 325.3 $ 1,099… $ 917.6 inco… Plus: Amor… of 21.0 20.8 61.5 70.8 acqu… inta… asse… Plus: Acqu… inte… 1.0 — 2.0 — and tran… cost… Less: Tax impa… of — — -88.0 — inte… legal enti… rest… Less: Inco… -4.0 -3.8 -11.5 -12.0 tax effe… Adju… net $ 369.0 $ 342.3 $ 1,063… $ 976.4 inco… Dilu… $ 4.86 $ 4.25 $ 15.09 $ 11.87 EPS Plus: Amor… of 0.29 0.27 0.84 0.92 acqu… inta… asse… Plus: Acqu… inte… 0.01 — 0.03 — and tran… cost… Less: Tax impa… of — — -1.21 — inte… legal enti… rest… Less: Inco… -0.05 -0.05 -0.16 -0.16 tax effe… Adju… $ 5.11 $ 4.47 $ 14.59 $ 12.63 EPS Dilu… weig… aver… 72.3 76.6 72.8 77.3 comm… shar… outs… 1Rep… tran… expe… and other costs dire… rela… to cert… anno… or comp… acqu… and the inte… of such acqu… incl… prof… fees, seve… expe… and regu… fili… fees, in each case only to the exte… incu… no later than 12 mont… foll… the clos… of the rele… acqu… Also incl… amou… aris… under earn… and other cont… cons… arra… rela… to such acqu… incl… gains and loss… from chan… in their esti… fair valu… which are incl… for the cont… term of the appl… arra… 2This adju… refl… inco… tax effe… reco… in conn… with a mult… inte… legal enti… rest… that comm… in four… quar… 2025 and was comp… in first quar… 2026. In four… quar… 2025, the Comp… reco… disc… tax expe… of $38 mill… rela… to the first phase and reco… a disc… tax bene… of appr… $88 mill… in first quar… 2026 rela… to the subs… phase of this inte… legal enti… rest… Mana… excl… these disc… tax effe… from non-… resu… beca… they are not indi… of ongo… oper… perf… or the Comp… unde… tax prof… 3Adj… rela… to the tax effe… of non-… adju… which were dete… based on the natu… of the unde… non-… adju… and their rele… juri… tax rate…
18 Table 11: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses (unaudited)
Table 12: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited)
19 Table 13: Third Quarter 2026 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)
20 Table 14: Nine Months 2026 Reconciliation of Operating Revenue Growth to Organic Operating Revenue Growth (unaudited)
Full text with the tables
Exhibit 99.1
MSCI Reports Financial Results for
Third Quarter and Nine Months 2026
New York – October 20, 2026
– 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
September 30, 2026 (“third quarter 2026”) and nine months ended September 30,
2026 (“nine months 2026”).
Financial and Operational Highlights for Third Quarter 2026
(Note: Unless otherwise noted, percentage and other changes are relative to the
three months ended September 30, 2025 (“third quarter 2025”) and Run Rate
percentage changes are relative to September 30, 2025).
• Operating revenues of $892.0 million, up 12.4%; Organic operating revenue
growth of 12.3%
• Recurring subscription revenues up 7.7%; Asset-based fees up 24.9%
• Operating margin of 56.3%; Adjusted EBITDA margin of 62.2%
•
Diluted EPS of $4.86, up 14.4%; Adjusted EPS of $5.11, up 14.3%
• Organic recurring subscription Run Rate growth of 8.7%; Retention Rate of
95.0%
• In third quarter 2026 and through October 19, 2026, a total of $627.2 million
or 1,116,460 shares were repurchased at an average repurchase price of $561.81
• Approximately $147.5 million in dividends were paid to shareholders in third
quarter 2026; Cash dividend of $2.05 per share declared by MSCI Board of
Directors for fourth quarter 2026
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“In the third quarter MSCI delivered strong financial and operating metrics,
including our best-ever recurring net-new sales in Analytics and Private Capital
Solutions, our best-ever Q3 recurring net-new sales in Index, and another record
quarter for asset-based fees. Among client segments and regions, we achieved our
best-ever quarter both with asset owners and in Asia-Pacific,” said Henry A.
Fernandez, Chairman and CEO of MSCI.
“Thanks to these results, we entered Q4 with solid momentum and strong client
engagement across our franchise. Notably, we have seen robust demand for both
our traditional and newer solutions. All of this shows that MSCI is expanding
our foundational, mission-critical role in global investing even as we transform
our business for today’s AI-first world,” Fernandez added.
1
Third Quarter Consolidated Results
Operating Revenues
: Operating revenues were $892.0 million, up 12.4%. Organic operating revenue
growth was 12.3%. The $98.6 million increase was the result of $49.1 million in
higher asset-based fees, $44.5 million in higher recurring subscription revenues
and $5.0 million in higher non-recurring revenues.
Run Rate and Retention Rate
: Total Run Rate at September 30, 2026 was $3,571.9 million, up 12.1%. Recurring
subscription Run Rate increased by $209.5 million, and asset-based fees Run Rate
increased by $175.9 million. Recurring subscription Run Rate growth was
primarily driven by asset managers, hedge funds and banking & brokerages client
segments, and record ETF AUM linked to MSCI indexes. Organic recurring
subscription Run Rate growth was 8.7%. Retention Rate in third quarter 2026 was
95.0%, compared to 94.7% in third quarter 2025.
Expenses
: Total operating expenses were $389.9 million, up 12.8%. Adjusted EBITDA
expenses were $337.2 million, up 12.8%, primarily reflecting higher non-
compensation costs as a result of higher information technology costs,
professional fees and market data costs. Additionally, we saw higher
compensation and benefits costs primarily driven by higher incentive
compensation and salaries, partially offset by increased capitalization of costs
related to internally developed software projects. During the third quarter of
2026 we recognized $6.1 million of Adjusted EBITDA expenses and $1.9 million of
intangible asset amortization expense related to the Compass, Vantager, PM
Insights and First Street acquisitions.
Total operating expenses excluding the impact of foreign currency exchange rate
fluctuations (“ex-FX”) and adjusted EBITDA expenses ex-FX increased 13.2% and
13.4%, respectively.
Operating Income
: Operating income was $502.1 million, up 12.2%. Operating income margin in
third quarter 2026 was 56.3%, compared to 56.4% in third quarter 2025.
Headcount
: As of September 30, 2026, we had 6,259 employees, reflecting a 0.1% increase,
with 29% and 71% of employees located in developed market and emerging market
locations, respectively.
Other Expense (Income), Net
: Other expense (income), net was $74.2 million, up 45.2%, primarily driven by
higher interest expense as a result of higher debt levels.
Income Taxes: The effective tax rate was 18.0% in third quarter 2026 compared to
17.9% in third quarter 2025. The increase was primarily driven by a lower
operating tax rate in the current year that was offset by smaller net discrete
tax benefits compared to the prior year.
Net Income
: As a result of the factors described above, net income was $351.0 million, up
7.9%.
Adjusted EBITDA
: Adjusted EBITDA was $554.8 million, up 12.2%. Adjusted EBITDA margin in third
quarter 2026 was 62.2%, compared to 62.3% in third quarter 2025.
2
Index Segment
:
Table 1A: Results (unaudited)
T… N…
M… M…
… E… E…
… S… S… S… S…
… 3… 3… % 3… 3… %
… 2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
… $ 2… $ 2… 1… % $ … $ … … %
…
… 2… 1… 2… % … … … %
…
… 1… 1… 4… % … … … %
…
… 5… 4… 1… % … … … %
…
…
… 1… 1… 1… % … … … %
…
… $ 4… $ 3… 1… % $ … $ … … %
…
…
… 7… % 7… % … % … %
…
%
Index operating revenues were $532.6 million, up 18.1%. The $81.5 million
increase was primarily driven by $49.1 million in higher asset-based fees and
$27.0 million in higher recurring subscription revenues. Organic operating
revenue growth for Index was 18.0%.
Index Run Rate as of September 30, 2026, was $2.1 billion, up 16.5%. The $294.8
million increase was comprised of a $175.9 million increase in asset-based fees
Run Rate and a $118.9 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 client segments, primarily driven by growth from
asset managers, banking & brokerages and hedge funds. The increase also
reflected growth across all regions. Organic recurring subscription Run Rate
growth for Index was 11.7%.
Analytics Segment
:
Table 1B: Results (unaudited)
T… N…
M… M…
… E… E…
… S… S… S… S…
… 3… 3… % 3… 3… %
… 2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
… $ 1… $ 1… 5… % $ … $ … … %
…
… 2… 3… -… % … … … %
…
… 1… 1… 4… % … … … %
…
…
… 1… 9… 1… % … … … %
…
… $ 8… $ 9… -… % $ … $ … … %
…
…
… 4… % 4… % … % … %
…
%
Analytics operating revenues were $191.0 million, up 4.8%. Organic operating
revenue growth for Analytics was 5.2%.
Analytics Run Rate as of September 30, 2026, was $793.5 million, up 6.9%. The
increase of $51.1 million was primarily driven by growth in both Equity
Analytics and Multi-Asset Class products, and reflected growth across all
regions. The increase primarily reflected growth in the hedge funds, asset
owners and asset managers client segments. Organic recurring subscription Run
Rate growth for Analytics was 7.5%.
3
Sustainability and Climate Segment
:
Table 1C: Results (unaudited)
T… N…
M… M…
… E… E…
… S… S… S… S…
… 3… 3… % 3… 3… %
… 2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
… $ 9… $ 8… 3… % $ … $ … … %
…
… 1… 1… 7… % … … … %
…
… 9… 9… 4… % … … … %
…
…
… 5… 5… 0… % … … … %
…
… $ 3… $ 3… 1… % $ … $ … … %
…
…
… 4… % 3… % … % … %
…
%
Sustainability and Climate operating revenues were $93.7 million, up 4.0%.
Organic operating revenue growth for Sustainability and Climate was 2.2%.
Sustainability and Climate Run Rate as of September 30, 2026, was $384.8
million, up 3.8%. The $14.0 million increase primarily reflects growth in
Climate products with contributions primarily from Americas and EMEA, partially
offset by cancellations. Organic recurring subscription Run Rate growth for
Sustainability and Climate was 2.4%.
All Other – Private Assets
:
Table 1D: Results (unaudited)
T… N…
M… M…
… E… E…
… S… S… S… S…
… 3… 3… % 3… 3… %
… 2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
… $ 7… $ 6… 6… % $ … $ … … %
…
… 0… 0… 1… % … … … %
…
… 7… 7… 6… % … … … %
…
…
… 5… 5… 1… % … … … %
…
… $ 1… $ 1… -… % $ … $ … … %
…
…
… 2… % 2… % … % … %
…
%
All Other – Private Assets operating revenues, which reflect the Real Assets and
Private Capital
Solutions operating segments, were $74.7 million, up 6.7%. Organic operating
revenue growth for All Other – Private Assets was 6.7%.
All Other – Private Assets Run Rate was $310.9 million as of September 30, 2026,
up 8.9%. The $25.5 million increase was primarily driven by Private Capital
Solutions related to Total Plan Manager, Private Capital Transparency Data and
Private Capital Intel products. The increase reflected growth across all regions
and was primarily driven by the asset owners and asset managers client segments.
Organic recurring subscription Run Rate growth for All Other – Private Assets
was 9.2%.
4
Select Balance Sheet Items and Capital Allocation
Cash Balances and Outstanding Debt
: Cash and cash equivalents were $261.0 million as of September 30, 2026. 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 September 30, 2026, were $6.8
billion. The total debt to net income ratio (based on trailing twelve months net
income) was 4.9x. The total debt to adjusted EBITDA ratio (based on trailing
twelve months adjusted EBITDA) was 3.2x.
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 $50.7 million, and net cash provided by operating activities
decreased by 3.0% to $436.1 million, primarily reflecting higher cash paid for
interest, partially offset by higher cash collections from customers. Free cash
flow (non-GAAP) for third quarter 2026 was down 8.9% to $385.4 million.
Share Count and Share Repurchases
: Weighted average diluted shares outstanding were 72.3 million in third quarter
2026, down 5.6% year-over-year. Total share repurchases during the quarter were
$552.3 million or 1.0 million shares at an average repurchase price of $562.92.
Total shares outstanding as of September 30, 2026 were 71.7 million. As of
October 19, 2026, a total of approximately $0.9 billion remains available on the
outstanding share repurchase authorization.
Dividends
: Approximately $147.5 million in dividends were paid to shareholders in third
quarter 2026. On October 19, 2026, the MSCI Board of Directors declared a cash
dividend of $2.05 per share for fourth quarter 2026, payable on November 27,
2026 to shareholders of record as of the close of trading on November 13, 2026.
First Street Acquisition
: On August 3, 2026, MSCI completed the acquisition of First Street Technology,
Inc. (“First Street”), a provider of physics-based physical climate risk data
and analytics. The aggregate purchase price was $122.6 million, net of cash
acquired. The total consideration includes the fair value of potential
additional cash payments during the two years following closing, contingent upon
the achievement of specified revenue thresholds. First Street’s financial
results are reported within the Sustainability and Climate operating segment.
5
Full-Year 2026 Guidance
MSCI’s guidance for the year ending December 31, 2026 (“Full-Year 2026”) 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 Prior Guidance for
Full-Year 2026 Full-Year 2026
Operating Expense $1,535 to $1,575 $1,535 to $1,575
million million
Adjusted EBITDA $1,340 to $1,370 $1,340 to $1,370
Expense million million
Interest Expense
(including $288 to $291 million $282 to $286 million
amortization of
financing fees)1
Depreciation & $195 to $205 million $195 to $205 million
Amortization Expense
Effective Tax Rate2 18.0% to 19.5% 18.0% to 20.0%
Capital Expenditures $160 to $170 million $160 to $170 million
Net Cash Provided by $1,655 to $1,705 $1,655 to $1,705
Operating million million
Activities
Free Cash Flow $1,485 to $1,545 $1,485 to $1,545
million 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 financing
rate (“SOFR”) and indebtedness levels can cause our annual interest expense to
vary.
2 Excludes the impact of a multi-phase internal legal entity restructuring that
commenced in fourth quarter 2025 and was completed in the first quarter 2026. In
connection with the completion of the subsequent phase of the restructuring in
first quarter 2026, we recognized a tax benefit of $88 million, which is
excluded from applicable non-GAAP measures when presented.
Conference Call Information
MSCI’s senior management will review the third quarter 2026 results on Tuesday,
October 20, 2026 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, https://ir.msci.com/events-and-presentations. 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.
-Ends-
6
About MSCI Inc.
MSCI Inc. (NYSE: MSCI) strengthens global markets by connecting participants
across the
financial ecosystem with a common language. Our research-based data, analytics
and indexes,
supported by advanced technology, set standards for global investors and help
our clients
understand risks and opportunities so they can make better decisions and unlock
innovation. We
serve asset managers and owners, private-market sponsors and investors, hedge
funds, wealth
managers, banks, insurers and corporates. To learn more, please visit
www.msci.com . MSCI#IR
MSCI Inc. Contacts
Investor Inquiries
jeremy.ulan@msci.com
Jeremy Ulan +1 646 778 4184
investor.relations@msci.com
Media Inquiries
PR@msci.com
Melanie Blanco +1 212 981 1049
Konstantinos Makrygiannis +44 77 6893 0056
Tina Tan + 852 2844 9320
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 2026 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, 2025 filed with the Securities and
Exchange Commission (“SEC”) on February 6, 2026 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.
7
Website and Social Media Disclosure
MSCI uses its investor relations website ir.msci.com 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
http://ir.msci.com/email-alerts . 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 fixed foreign exchange rates. 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.
8
• 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:
1. 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
2. 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
9
improvements, (4) amortization of intangible assets and, at times, (5) certain
other transactions or adjustments, including, when applicable, certain
acquisition-related integration, transaction and earn-out 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, transaction and earn-out 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, transaction and earn-out costs, the impact related to the write-off
of deferred fees on debt extinguishment, the impact related to certain gains or
losses on investees, and the impact of certain discrete tax items.
“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.
10
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.
11
Table 2: Condensed Consolidated Statements of Income (unaudited)
in
mill…
exce… Three Nine
per Months Months
share Ended Sep. Sep. Ended Sep. Sep.
data 2026 30, 2025 30, 2026 30, 2025 30,
──────────────────────────────────────────────────────────────────────────────
Oper… $ 892.0 $ 793.4 $ 2,609… $ 2,311.9
reve…
Oper…
expe…
Cost
of
reve…
(exc… 152.2 132.5 443.9 407.0
of
depr…
and
amor…
Sell…
and 90.2 79.9 263.3 236.8
mark…
Rese…
and 47.6 44.8 143.2 136.5
deve…
Gene…
and 48.2 41.8 163.4 137.2
admi…
Amor…
of 45.2 41.0 130.9 128.6
inta…
asse…
Depr…
and
amor…
of
prop… 6.5 5.8 18.6 15.9
equi…
and
leas…
impr…
Total
oper… 389.9 345.8 1,163… 1,062.0
expe…
Oper… 502.1 447.6 1,446… 1,249.9
inco…
Inte… -2.9 -5.1 -8.2 -11.9
inco…
Inte… 74.8 53.6 214.9 146.3
expe…
Other
expe… 2.3 2.6 5.4 10.1
(inc…
Other
expe… 74.2 51.1 212.1 144.5
(inc…
net
Inco…
befo…
prov… 427.9 396.5 1,234… 1,105.4
for
inco…
taxes
Prov…
for 76.9 71.2 135.4 187.8
inco…
taxes
Net $ 351.0 $ 325.3 $ 1,099… $ 917.6
inco…
Earn…
per
shar…
Basic $ 4.87 $ 4.26 $ 15.11 $ 11.89
Dilu… $ 4.86 $ 4.25 $ 15.09 $ 11.87
Weig…
aver…
shar…
outs…
used
in
comp…
earn…
per
shar…
Basic 72.1 76.5 72.7 77.2
Dilu… 72.3 76.6 72.8 77.3
1Inc…
stoc…
comp…
of
$27.5
mill…
and
$22.8
mill…
for
the
three
mont…
ended
Sep.
30,
2026
and
2025,
resp…
and
$100…
mill…
and
$86.2
mill…
for
the
nine
mont…
ended
Sep.
30,
2026
and
2025,
resp…
12
Table 3: Condensed Consolidated Balance Sheets (unaudited)
in millions As of
ASSETS Sep. 30, Dec. 31,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 261.0 $ 515.3
Accounts receivable 860.1 986.7
Other current assets 177.8 142.8
Total current assets 1,298.9 1,644.8
Property, equipment and
leasehold 99.1 87.3
improvements, net
Right of use assets 151.4 112.9
Goodwill 3,047.8 2,923.4
Intangible assets, net 899.1 832.5
Other non-current assets 99.0 101.6
Total assets $ 5,595.3 $ 5,702.5
LIABILITIES AND SHAREHOLDERS’
EQUITY
(DEFICIT)
Current liabilities:
Deferred revenue $ 1,036.7 $ 1,231.8
Other current liabilities 538.2 598.0
Total current liabilities 1,574.9 1,829.8
Long-term debt 6,716.9 6,202.3
Long-term operating lease 149.2 107.5
liabilities
Other non-current liabilities 170.7 217.4
Total liabilities 8,611.7 8,357.0
Total shareholders’ equity -3,016.4 -2,654.5
(deficit)
Total liabilities and
shareholders’ $ 5,595.3 $ 5,702.5
equity (deficit)
13
Table 4: Condensed Consolidated Statements of Cash Flows (unaudited)
in
mill… Three Nine
Cash Months Months
flows Ended Ended
from Sep. Sep. Sep. Sep.
oper… 30, 30, 30, 30,
acti… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 351.0 $ 325.3 $ 1,099… $ 917.6
inco…
Adju…
to
reco…
net
inco…
to
net
cash
prov…
by
oper…
acti…
Amor…
of 45.2 41.0 130.9 128.6
inta…
asse…
Stoc…
comp… 27.5 22.6 100.6 85.8
expe…
Depr…
and
amor…
of
prop… 6.5 5.8 18.6 15.9
equi…
and
leas…
impr…
Amor…
of
right 7.7 6.4 22.0 18.5
of
use
asse…
Other 2.6 30.5 -76.9 54.9
adju…
Net
chan…
in
other -4.4 17.8 -180.5 -134…
oper…
asse…
and
liab…
Net
cash
prov… 436.1 449.4 1,113… 1,08…
by
oper…
acti…
Cash
flows
from
inve…
acti…
Capi…
soft… -37.3 -22.2 -96.7 -66.7
deve…
costs
Capi… -13.4 -4.0 -27.2 -26.9
expe…
Busi…
acqu…
net -115.9 — -174.7 —
of
cash
acqu…
Other — 0.1 — —
Net
cash
used -166.6 -26.1 -298.6 -93.6
in
inve…
acti…
Cash
flows
from
fina…
acti…
Repu…
of
comm…
stock -552.6 -1,22… -1,13… -1,5…
held
in
trea…
Paym…
of -147.8 -137.9 -447.8 -421…
divi…
Repa…
of -340.0 -712.0 -740.0 -926…
borr…
Proc…
from
borr… 675.0 1,716… 1,250… 1,93…
net
of
disc…
Paym…
of
debt — -12.8 — -12.8
issu…
costs
Paym…
of
cont…
cons…
and -1.4 — -10.9 -12.1
defe…
purc…
price
from
acqu…
Proc…
from
exer… 2.0 2.3 15.8 6.6
of
stock
opti…
Net
cash
(used -364.8 -369.4 -1,06… -1,0…
in)
fina…
acti…
Effe…
of
exch… -0.1 -1.1 -0.7 9.2
rate
chan…
Net
incr…
(dec…
in
cash, -95.4 52.8 -254.3 -9.3
cash
equi…
and
rest…
cash
Cash,
cash
equi…
and
rest… 356.4 347.3 515.3 409.4
cash,
begi…
of
peri…
Cash,
cash
equi…
and
rest… $ 261.0 $ 400.1 $ 261.0 $ 400.1
cash,
end
of
peri…
1Inc…
cash
paid
for
the
acqu…
of
Comp…
Fina…
Tech…
Vant…
PM
Insi…
and
First
Stre…
14
Table 5: Operating Results (unaudited)
T… …
… M… …
… E… …
… S… S… … …
… 3… 3… % … … %
… 2… 2… C… … … …
──────────────────────────────────────────────────────────────────────────────
… $ 2… $ 2… 1… % $ 7… $ 7… 1… %
…
… 2… 1… 2… % 7… 5… 2… %
…
… 1… 1… 4… % 4… 3… 3… %
…
… 5… 4… 1… % 1… 1… 1… %
…
…
… 1… 1… 1… % 3… 3… 1… %
…
… $ 4… $ 3… 1… % $ 1… $ 9… 1… %
…
…
… 7… % 7… % 7… % 7… %
…
%
…
…
…
… $ 1… $ 1… 5… % $ 5… $ 5… 7… %
…
… 2… 3… -… % 1… 1… -… %
…
… 1… 1… 4… % 5… 5… 7… %
…
…
… 1… 9… 1… % 3… 2… 1… %
…
… $ 8… $ 9… -… % $ 2… $ 2… -… %
…
…
… 4… % 4… % 4… % 4… %
…
%
…
…
…
…
…
… $ 9… $ 8… 3… % $ 2… $ 2… 5… %
…
… 1… 1… 7… % 3… 5… -… %
…
… 9… 9… 4… % 2… 2… 5… %
…
…
… 5… 5… 0… % 1… 1… -… %
…
… $ 3… $ 3… 1… % $ 1… $ 9… 1… %
…
…
… 4… % 3… % 3… % 3… %
…
%
…
…
-
…
…
…
…
… $ 7… $ 6… 6… % $ 2… $ 2… 6… %
…
… 0… 0… 1… % 2… 1… 2… %
…
… 7… 7… 6… % 2… 2… 6… %
…
…
… 5… 5… 1… % 1… 1… 1… %
…
… $ 1… $ 1… -… % $ 4… $ 5… -… %
…
…
… 2… % 2… % 2… % 2… %
…
%
…
…
…
… $ 6… $ 5… 7… % $ 1… $ 1… 8… %
…
… 2… 1… 2… % 7… 5… 2… %
…
… 2… 1… 2… % 6… 5… 1… %
…
… 8… 7… 1… % 2… 2… 1… %
…
…
… 3… 2… 1… % 1… 9… 1… %
…
… $ 5… $ 4… 1… % $ 1… $ 1… 1… %
…
…
… 5… % 5… % 5… % 5… %
%
…
… 6… % 6… % 6… % 6… %
…
%
15
Table 6: Sales and Retention Rate (unaudited)
1
T… …
M… …
E… …
… S… S… … …
… 3… 3… % … … %
… 2… 2… C… … … …
──────────────────────────────────────────────────────────────────────────────
…
… $ 3… $ 2… 1… % $ 1… $ 8… 2… %
…
…
… -… -… -… % -… -… -… %
…
…
…
… $ 2… $ 1… 4… % $ 8… $ 5… 4… %
…
…
… $ 1… $ 1… 1… % $ 4… $ 4… 8… %
…
…
… $ 4… $ 4… 1… % $ 1… $ 1… 1… %
…
…
… $ 4… $ 3… 2… % $ 1… $ 9… 3… %
…
…
…
… 9… % 9… % 9… % 9… %
…
…
…
… $ 3… $ 2… 3… % $ 6… $ 6… 1… %
…
…
… -… -… 9… % -… -… 6… %
…
…
…
… $ 1… $ 1… 6… % $ 3… $ 3… 2… %
…
…
… $ 5… $ 3… 6… % $ 1… $ 1… 0… %
…
…
… $ 3… $ 2… 4… % $ 8… $ 7… 1… %
…
…
… $ 2… $ 1… 6… % $ 5… $ 4… 1… %
…
…
…
… 9… % 9… % 9… % 9… %
…
…
…
…
…
… $ 7… $ 7… 1… % $ 2… $ 2… -… %
…
…
… -… -… 5… % -… -… 4… %
…
…
…
… $ -… $ 2… -… % $ 1… $ 9… -… %
…
…
… $ 0… $ 0… 1… % $ 4… $ 3… 2… %
…
…
… $ 8… $ 8… 2… % $ 2… $ 2… -… %
…
…
…
… $ -… $ 2… -… % $ 5… $ 1… -… %
…
…
…
…
…
… 9… % 9… % 9… % 9… %
…
…
…
…
-
…
…
…
… $ 1… $ 9… 3… % $ 3… $ 2… 1… %
…
…
… -… -… -… % -… -… -… %
…
…
…
… $ 8… $ 5… 6… % $ 2… $ 1… 5… %
…
…
… $ 0… $ 1… -… % $ 1… $ 2… -… %
…
…
… $ 1… $ 1… 2… % $ 3… $ 3… 1… %
…
…
…
…
- $ 9… $ 6… 5… % $ 2… $ 1… 4… %
…
…
…
…
…
…
-
… 9… % 9… % 9… % 9… %
…
…
…
…
…
… $ 8… $ 6… 2… % $ 2… $ 1… 1… %
…
…
… -… -… 4… % -… -… 0… %
…
…
…
… $ 5… $ 3… 4… % $ 1… $ 1… 3… %
…
…
… $ 2… $ 1… 2… % $ 6… $ 6… 4… %
…
…
… $ 1… $ 8… 2… % $ 2… $ 2… 1… %
…
…
… $ 7… $ 5… 3… % $ 2… $ 1… 2… %
…
…
… 9… % 9… % 9… % 9… %
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
16
Table 7: AUM in ETFs Linked to MSCI Equity Indexes (unaudited)
1,2
N…
T… M…
… M… S… D… M… J… S… E… S… …
… E… 2… 3… 2… 3… 2… 3… 2… 3… 2… 3… 2… 3… 2… …
──────────────────────────────────────────────────────────────────────────────
…
…
…
…
… $ 2… $ 2… $ 2… $ 2… $ 2… $ 1… $ …
…
…
…
…
…
… 1… 63 -… 3… 11 3… …
…
… 46 67 1… 39 76 1… …
…
…
…
…
…
… $ 2… $ 2… $ 2… $ 2… $ 2… $ 2… $ …
…
…
…
…
…
…
…
…
… $ 2… $ 2… $ 2… $ 2… $ 2… $ 1… $ …
…
…
…
…
…
…
… 2… 2… 2… 2… 2… 2… …
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
Table 8: Run Rate (unaudited)
1
%
As of % Organ…
in Sep. Sep. Run Run
mill… 30, 30, Rate Rate
Index 2026 2025 Grow… Growth
──────────────────────────────────────────────────────────────────────────────
Recu… $ 1,107… $ 988.2 12.0 % 11.7 %
subs…
Asse… 975.6 799.7 22.0 % 21.9 %
fees
Index
Run 2,082… 1,787… 16.5 % 16.3 %
Rate
Anal…
Run 793.5 742.4 6.9 % 7.5 %
Rate
Sust…
and
Clim… 384.8 370.8 3.8 % 2.4 %
Run
Rate
All
Other
-
Priv… 310.9 285.4 8.9 % 9.2 %
Asse…
Run
Rate
Total
Run $ 3,571… $ 3,186… 12.1 % 12.0 %
Rate
Total
recu… $ 2,596… $ 2,386… 8.8 % 8.7 %
subs…
Total
asse… 975.6 799.7 22.0 % 21.9 %
fees
Total
Run $ 3,571… $ 3,186… 12.1 % 12.0 %
Rate
1See
"Not…
Rega…
the
Use
of
Oper…
Metr…
for
deta…
rega…
the
defi…
of
Run
Rate.
17
Table 9: Reconciliation of Net Income to Adjusted EBITDA (unaudited)
Three Nine
Months Months
in Ended Sep. Sep. Ended Sep. Sep.
mill… 2026 30, 2025 30, 2026 30, 2025 30,
──────────────────────────────────────────────────────────────────────────────
Net $ 351.0 $ 325.3 $ 1,099… $ 917.6
inco…
Prov…
for 76.9 71.2 135.4 187.8
inco…
taxes
Other
expe… 74.2 51.1 212.1 144.5
(inc…
net
Oper… 502.1 447.6 1,446… 1,249.9
inco…
Amor…
of 45.2 41.0 130.9 128.6
inta…
asse…
Depr…
and
amor…
of
prop… 6.5 5.8 18.6 15.9
equi…
and
leas…
impr…
Acqu…
inte…
and 1.0 — 2.0 —
tran…
cost…
Cons…
adju… $ 554.8 $ 494.4 $ 1,598… $ 1,394.4
EBIT…
Index
adju… $ 412.4 $ 350.2 $ 1,185… $ 992.0
EBIT…
Anal…
adju… 85.7 90.1 256.5 258.7
EBIT…
Sust…
and
Clim… 38.2 34.7 106.8 90.2
adju…
EBIT…
All
Other
-
Priv… 18.5 19.4 49.3 53.5
Asse…
adju…
EBIT…
Cons…
adju… $ 554.8 $ 494.4 $ 1,598… $ 1,394.4
EBIT…
1Rep…
tran…
expe…
and
other
costs
dire…
rela…
to
cert…
anno…
or
comp…
acqu…
and
the
inte…
of
such
acqu…
incl…
prof…
fees,
seve…
expe…
and
regu…
fili…
fees,
in
each
case
only
to
the
exte…
incu…
no
later
than
12
mont…
foll…
the
clos…
of
the
rele…
acqu…
Also
incl…
amou…
aris…
under
earn…
and
other
cont…
cons…
arra…
rela…
to
such
acqu…
incl…
gains
and
loss…
from
chan…
in
their
esti…
fair
valu…
which
are
incl…
for
the
cont…
term
of
the
appl…
arra…
Table 10: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income
and Adjusted EPS (unaudited)
in
mill…
exce… Three Nine
per Months Months
share Ended Sep. Sep. Ended Sep. Sep.
data 2026 30, 2025 30, 2026 30, 2025 30,
──────────────────────────────────────────────────────────────────────────────
Net $ 351.0 $ 325.3 $ 1,099… $ 917.6
inco…
Plus:
Amor…
of 21.0 20.8 61.5 70.8
acqu…
inta…
asse…
Plus:
Acqu…
inte… 1.0 — 2.0 —
and
tran…
cost…
Less:
Tax
impa…
of — — -88.0 —
inte…
legal
enti…
rest…
Less:
Inco… -4.0 -3.8 -11.5 -12.0
tax
effe…
Adju…
net $ 369.0 $ 342.3 $ 1,063… $ 976.4
inco…
Dilu… $ 4.86 $ 4.25 $ 15.09 $ 11.87
EPS
Plus:
Amor…
of 0.29 0.27 0.84 0.92
acqu…
inta…
asse…
Plus:
Acqu…
inte… 0.01 — 0.03 —
and
tran…
cost…
Less:
Tax
impa…
of — — -1.21 —
inte…
legal
enti…
rest…
Less:
Inco… -0.05 -0.05 -0.16 -0.16
tax
effe…
Adju… $ 5.11 $ 4.47 $ 14.59 $ 12.63
EPS
Dilu…
weig…
aver… 72.3 76.6 72.8 77.3
comm…
shar…
outs…
1Rep…
tran…
expe…
and
other
costs
dire…
rela…
to
cert…
anno…
or
comp…
acqu…
and
the
inte…
of
such
acqu…
incl…
prof…
fees,
seve…
expe…
and
regu…
fili…
fees,
in
each
case
only
to
the
exte…
incu…
no
later
than
12
mont…
foll…
the
clos…
of
the
rele…
acqu…
Also
incl…
amou…
aris…
under
earn…
and
other
cont…
cons…
arra…
rela…
to
such
acqu…
incl…
gains
and
loss…
from
chan…
in
their
esti…
fair
valu…
which
are
incl…
for
the
cont…
term
of
the
appl…
arra…
2This
adju…
refl…
inco…
tax
effe…
reco…
in
conn…
with
a
mult…
inte…
legal
enti…
rest…
that
comm…
in
four…
quar…
2025
and
was
comp…
in
first
quar…
2026.
In
four…
quar…
2025,
the
Comp…
reco…
disc…
tax
expe…
of
$38
mill…
rela…
to
the
first
phase
and
reco…
a
disc…
tax
bene…
of
appr…
$88
mill…
in
first
quar…
2026
rela…
to
the
subs…
phase
of
this
inte…
legal
enti…
rest…
Mana…
excl…
these
disc…
tax
effe…
from
non-…
resu…
beca…
they
are
not
indi…
of
ongo…
oper…
perf…
or
the
Comp…
unde…
tax
prof…
3Adj…
rela…
to
the
tax
effe…
of
non-…
adju…
which
were
dete…
based
on
the
natu…
of
the
unde…
non-…
adju…
and
their
rele…
juri…
tax
rate…
18
Table 11: Reconciliation of Operating Expenses to Adjusted EBITDA Expenses
(unaudited)
Three Nine
Mont… Mont…
in Ended Sep. Sep. Ended Sep. Sep. Full…
mil… 2026 30, 2025 30, 2026 30, 2025 30, Guid…
──────────────────────────────────────────────────────────────────────────────
Tot… $1,5…
ope… $ 389.9 $ 345.8 $ 1,16… $ 1,062… -
exp… $1,5…
Amo…
of 45.2 41.0 130.9 128.6
int…
ass…
Dep…
and
amo…
of $195…
pro… 6.5 5.8 18.6 15.9 -
equ… $205…
and
lea…
imp…
Acq…
int…
and 1.0 — 2.0 —
tra…
cos…
Con… $1,3…
adj… $ 337.2 $ 299.0 $ 1,01… $ 917.5 -
EBI… $1,3…
exp…
Ind…
adj… $ 120.2 $ 100.9 $ 354.5 $ 315.7
EBI…
exp…
Ana…
adj… 105.3 92.1 313.9 273.4
EBI…
exp…
Sus…
and
Cli… 55.5 55.4 170.7 173.4
adj…
EBI…
exp…
All
Oth…
-
Pri… 56.2 50.6 172.7 155.0
Ass…
adj…
EBI…
exp…
Con… $1,3…
adj… $ 337.2 $ 299.0 $ 1,01… $ 917.5 -
EBI… $1,3…
exp…
1We
have
not
pro…
a
full
lin…
rec…
for
tot…
ope…
exp…
to
adj…
EBI…
exp…
for
this
fut…
per…
bec…
we
bel…
such
a
rec…
wou…
imp…
a
deg…
of
pre…
and
cer…
that
cou…
be
con…
to
inv…
and
we
are
una…
to
rea…
pre…
cer…
ite…
con…
in
the
GAAP
mea…
wit…
unr…
eff…
This
is
due
to
the
inh…
dif…
of
for…
the
tim…
or
amo…
of
var…
ite…
that
have
not
yet
occ…
and
are
out
of
the
Com…
con…
or
can…
be
rea…
pre…
For
the
same
rea…
the
Com…
is
una…
to
add…
the
pro…
sig…
of
the
una…
inf…
For…
non…
fin…
mea…
pro…
wit…
the
most
dir…
com…
GAAP
fin…
mea…
may
vary
mat…
from
the
cor…
GAAP
fin…
mea…
See
“Fo…
Sta…
abo…
2Re…
tra…
exp…
and
oth…
cos…
dir…
rel…
to
cer…
ann…
or
com…
acq…
and
the
int…
of
such
acq…
inc…
pro…
fee…
sev…
exp…
and
reg…
fil…
fee…
in
each
case
only
to
the
ext…
inc…
no
lat…
than
12
mon…
fol…
the
clo…
of
the
rel…
acq…
Also
inc…
amo…
ari…
und…
ear…
and
oth…
con…
con…
arr…
rel…
to
such
acq…
inc…
gai…
and
los…
from
cha…
in
the…
est…
fair
val…
whi…
are
inc…
for
the
con…
term
of
the
app…
arr…
Table 12: Reconciliation of Net Cash Provided by Operating Activities to Free
Cash Flow (unaudited)
Three Nine
Mont… Mont…
in Ended Sep. Sep. Ended Sep. Sep. Full…
mil… 2026 30, 2025 30, 2026 30, 2025 30, Guid…
──────────────────────────────────────────────────────────────────────────────
Net
cash $1,6…
pro… $ 436.1 $ 449.4 $ 1,11… $ 1,087… -
by $1,7…
ope…
act…
Cap… -13.4 -4.0 -27.2 -26.9
exp…
Cap…
sof… -37.3 -22.2 -96.7 -66.7
dev…
cos…
-$16…
Cap… -50.7 -26.2 -123… -93.6 -
$170…
Free $1,4…
cash $ 385.4 $ 423.2 $ 989.8 $ 993.7 -
flow $1,5…
1We
have
not
pro…
a
lin…
rec…
for
free
cash
flow
to
net
cash
pro…
by
ope…
act…
for
this
fut…
per…
bec…
we
bel…
such
a
rec…
wou…
imp…
a
deg…
of
pre…
and
cer…
that
cou…
be
con…
to
inv…
and
we
are
una…
to
rea…
pre…
cer…
ite…
con…
in
the
GAAP
mea…
wit…
unr…
eff…
This
is
due
to
the
inh…
dif…
of
for…
the
tim…
or
amo…
of
var…
ite…
that
have
not
yet
occ…
and
are
out
of
the
Com…
con…
or
can…
be
rea…
pre…
For
the
same
rea…
the
Com…
is
una…
to
add…
the
pro…
sig…
of
the
una…
inf…
For…
non…
fin…
mea…
pro…
wit…
the
most
dir…
com…
GAAP
fin…
mea…
may
vary
mat…
from
the
cor…
GAAP
fin…
mea…
See
“Fo…
Sta…
abo…
19
Table 13: Third Quarter 2026 Reconciliation of Operating Revenue Growth to
Organic Operating Revenue Growth (unaudited)
Comp…
of
the
Three
Mont…
Ended
Sept…
30,
2026
and
2025
──────────────────────────────────────────────────────────────────────────────
Total Recu… Asse… Non-…
Subs… Fees Reve…
Ind… Chan… Chan… Chan… Chan…
Perc… Perc… Perc… Perc…
Ope…
rev… 18.1 % 11.1 % 24.9 % 48.6 %
gro…
Imp…
of
acq… -0.2 % -0.2 % -0.2 % — %
and
div…
Imp…
of
for…
cur… 0.1 % 0.2 % — % — %
exc…
rate
flu…
Org…
ope… 18.0 % 11.1 % 24.7 % 48.6 %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
Ana… Chan… Chan… Chan… Chan…
Perc… Perc… Perc… Perc…
Ope…
rev… 4.8 % 5.5 % — % -25… %
gro…
Imp…
of
acq… — % — % — % — %
and
div…
Imp…
of
for…
cur… 0.4 % 0.4 % — % — %
exc…
rate
flu…
Org…
ope… 5.2 % 5.9 % — % -25… %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
Sus… Chan… Chan… Chan… Chan…
and Perc… Perc… Perc… Perc…
Cli…
Ope…
rev… 4.0 % 3.9 % — % 7.1 %
gro…
Imp…
of
acq… -2.0 % -2.0 % — % — %
and
div…
Imp…
of
for…
cur… 0.2 % 0.2 % — % — %
exc…
rate
flu…
Org…
ope… 2.2 % 2.1 % — % 7.1 %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
All
Oth… Chan… Chan… Chan… Chan…
- Perc… Perc… Perc… Perc…
Pri…
Ass…
Ope…
rev… 6.7 % 6.0 % — % 125… %
gro…
Imp…
of
acq… — % — % — % — %
and
div…
Imp…
of
for…
cur… — % — % — % — %
exc…
rate
flu…
Org…
ope… 6.7 % 6.0 % — % 125… %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
Con… Chan… Chan… Chan… Chan…
Perc… Perc… Perc… Perc…
Ope…
rev… 12.4 % 7.7 % 24.9 % 29.8 %
gro…
Imp…
of
acq… -0.3 % -0.4 % -0.2 % — %
and
div…
Imp…
of
for…
cur… 0.2 % 0.2 % — % — %
exc…
rate
flu…
Org…
ope… 12.3 % 7.5 % 24.7 % 29.8 %
rev…
gro…
20
Table 14: Nine Months 2026 Reconciliation of Operating Revenue Growth to Organic
Operating Revenue Growth (unaudited)
Comp…
of
the
Nine
Mont…
Ended
Sept…
30,
2026
and
2025
──────────────────────────────────────────────────────────────────────────────
Total Recu… Asse… Non-…
Subs… Fees Reve…
Ind… Chan… Chan… Chan… Chan…
Perc… Perc… Perc… Perc…
Ope…
rev… 17.8 % 10.6 % 26.0 % 31.7 %
gro…
Imp…
of
acq… -0.2 % -0.3 % -0.2 % — %
and
div…
Imp…
of
for…
cur… 0.1 % 0.3 % 0.1 % — %
exc…
rate
flu…
Org…
ope… 17.7 % 10.6 % 25.9 % 31.7 %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
Ana… Chan… Chan… Chan… Chan…
Perc… Perc… Perc… Perc…
Ope…
rev… 7.2 % 7.6 % — % -7.7 %
gro…
Imp…
of
acq… — % — % — % — %
and
div…
Imp…
of
for…
cur… 0.3 % 0.3 % — % 1.4 %
exc…
rate
flu…
Org…
ope… 7.5 % 7.9 % — % -6.3 %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
Sus… Chan… Chan… Chan… Chan…
and Perc… Perc… Perc… Perc…
Cli…
Ope…
rev… 5.3 % 5.9 % — % -25… %
gro…
Imp…
of
acq… -0.7 % -0.7 % — % — %
and
div…
Imp…
of
for…
cur… -1.6 % -1.6 % — % -1.9 %
exc…
rate
flu…
Org…
ope… 3.0 % 3.6 % — % -26… %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
All
Oth… Chan… Chan… Chan… Chan…
- Perc… Perc… Perc… Perc…
Pri…
Ass…
Ope…
rev… 6.5 % 6.3 % — % 27.8 %
gro…
Imp…
of
acq… — % — % — % — %
and
div…
Imp…
of
for…
cur… -1.0 % -1.0 % — % — %
exc…
rate
flu…
Org…
ope… 5.5 % 5.3 % — % 27.8 %
rev…
gro…
Total Recu… Asse… Non-…
Subs… Fees Reve…
Con… Chan… Chan… Chan… Chan…
Perc… Perc… Perc… Perc…
Ope…
rev… 12.9 % 8.4 % 26.0 % 16.9 %
gro…
Imp…
of
acq… -0.2 % -0.2 % -0.2 % — %
and
div…
Imp…
of
for…
cur… -0.1 % -0.2 % 0.1 % 0.2 %
exc…
rate
flu…
Org…
ope… 12.6 % 8.0 % 25.9 % 17.1 %
rev…
gro…
21