MSCI earnings analysis
What we found in MSCI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
MSCI delivered Q2 revenue of $867.0 million, up 12.2% YoY and 1.9% sequentially, with GAAP operating margin expanding to 56.2% and diluted EPS rising 19.6% YoY to $4.69. Index was the clear growth engine, supported by a 44.8% increase in average ETF-linked AUM and 26.6% growth in asset-based fees. Offsetting factors include a 5.0% decline in Analytics adjusted EBITDA, substantially higher interest expense, and a $158.9 million year-to-date reduction in cash.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth remains double digit
- Q2 operating revenue rose $94.3 million, or 12.2% YoY, to $867.0 million, and increased $16.0 million, or 1.9%, sequentially from $851.0 million in Q1 2026. Growth was led by $49.0 million of higher asset-based fees and $50.6 million of higher recurring-subscription revenue.
- Operating leverage expanded
- GAAP operating margin reached 56.2%, up 120 bps from 55.0% a year earlier and 250 bps from 53.7% in Q1 2026. Derived gross margin was 82.7%, versus 82.2% in Q2 2025 and 83.3% in Q1 2026.
- EPS grew year over year
- GAAP diluted EPS was $4.69, up 19.6% from $3.92 in Q2 2025, although down 15.2% from $5.53 in Q1 2026, which benefited from an $88.0 million discrete tax benefit. Q2 net income increased 12.6% to $342.0 million.
- Index segment drove growth
- Index revenue increased 17.5% to $511.0 million and adjusted EBITDA increased 20.5% to $397.8 million. Asset-based fees rose 26.6% to $233.1 million as average ETF-linked AUM increased $838 billion, or 44.8%, to $2.706 trillion.
- Recurring base and retention improved
- Total Run Rate increased 12.0% to $3.480 billion, including 25.2% growth in Index asset-based-fee Run Rate to $948.2 million. Consolidated retention improved to 95.3% from 94.4% a year earlier.
- Cash generation supported buybacks
- Six-month operating cash flow increased $39.7 million to $677.6 million from $637.9 million. The company repurchased $544.3 million of stock in the first half, versus $286.6 million a year earlier, with $1.6 billion remaining under the authorization at June 30.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Analytics profitability contracted
- Analytics revenue grew 6.6% to $189.4 million, but adjusted EBITDA declined 5.0% to $88.0 million as adjusted EBITDA margin fell 560 bps to 46.5%. Segment expenses increased 19.2%, outpacing revenue growth.
- Debt and interest burden increased
- Cash and cash equivalents declined $158.9 million from year-end to $356.4 million at June 30, while debt included $6.0 billion of Senior Notes and $475.0 million drawn on the revolver. Q2 interest expense increased 53.7% to $71.0 million.
- Client and AUM-fee concentration persists
- The filing reports no material changes to risk factors from the 2025 Form 10-K. However, BlackRock represented 11.8% of six-month operating revenue, and 96.6% of that revenue came from AUM-based fees on BlackRock products linked to MSCI indexes.
- Non-Index segment growth is less profitable
- Sustainability and Climate revenue grew only 3.4% to $91.9 million; its net new recurring subscription sales declined to $1.9 million from $5.0 million. All Other–Private Assets adjusted EBITDA fell 14.1% to $17.1 million as expenses rose 12.3%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.69
- Gross margin
- 82.7%
- Operating margin
- 56.2%
- Segment
- Index revenue: $511.0 million (+17.5% YoY)
- Segment
- Analytics revenue: $189.4 million (+6.6% YoY)
- Segment
- Sustainability and Climate revenue: $91.9 million (+3.4% YoY)
- Segment
- All Other - Private Assets revenue: $74.7 million (+4.9% YoY)
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that operating cash flow, existing cash and cash equivalents, revolver availability and potential capital-markets access are expected to fund operating activities and investing/financing commitments for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · April 21, 2026
- MSCI reported Q1 revenue of $850.8M (up $105.0M or ~14.1% YoY) and diluted EPS of $5.53 (up $1.82 or ~49.1% YoY). Operating income expanded to $456.9M with margin expansion versus prior year, driven by revenue growth,…
- 10-Q · October 28, 2025
- MSCI reported Q3 operating revenues of $793,426,000 (three months ended September 30, 2025), up 9.5% versus Q3 2024 ($724,705,000) and contributing to nine‑month revenue of $2,311,931,000. Profitability expanded: gross…
- 10-K · February 7, 2025
- MSCI positions itself as a research-driven, technology-enabled provider of indexes, analytics and ESG/climate solutions with a recurring revenue model and strong cash generation. For the year ended December 31, 2024 the…
- 10-Q · October 31, 2024
- MSCI reported Q3 operating revenues of $724,705,000 (up from $625,439,000 in Q3 2023) and GAAP diluted EPS of $3.57 (up from $3.27). Operating income rose to $401,334,000 while amortization of intangible assets…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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