Moodys — Financial Results
Revenue Hit $7.7 Billion, Growing 9% Across Both Business Segments
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $7,718M | $7,088M | +9% |
| MIS (Ratings) Revenue | $4,119M | $3,793M | +9% |
| MA (Analytics) Revenue | $3,599M | $3,295M | +9% |
Both of Moody's main businesses grew at the same healthy clip. The Moody's Investors Service (MIS) ratings business benefited from a favorable debt market — companies rushed to issue bonds while credit spreads (the extra interest borrowers pay over safe government bonds) remained tight and investor appetite was strong. Moody's Analytics (MA) grew on the back of sustained demand for its insurance risk modeling, compliance tools, and credit research products.
Profit Margins Expanded Meaningfully, With Earnings Per Share Up 21%
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Operating Margin | 43.4% | 40.6% | +280 basis points |
| Adjusted Operating Margin | 51.1% | 48.1% | +300 basis points |
| Diluted EPS | $13.67 | $11.26 | +21% |
Revenue grew faster than costs — operating and SG&A expenses rose only 3% against that 9% revenue gain. MIS was particularly efficient, reaching an Adjusted Operating Margin (profit as a percentage of revenue, before depreciation and one-time items) of 63.6%. The result was a 21% jump in earnings per share (the profit attributable to each share of stock).
KYC and Insurance Are MA's Fastest-Growing Products
| Product Line | 2025 Revenue | 2024 Revenue | Reported Growth | Organic Growth |
|---|---|---|---|---|
| KYC | $438M | $367M | +19% | +17% |
| Insurance | $685M | $598M | +15% | +8% |
KYC (Know Your Customer — tools that help businesses verify identities and screen for financial crime risk) grew 19%, driven by strong customer retention and rising demand for compliance solutions. Insurance grew 15%, powered by subscriptions to catastrophe modeling tools. Stripping out recent acquisitions, both lines still grew strongly on their own, signaling genuine underlying demand rather than purely acquisition-driven growth.
MA's Recurring Revenue Base Is Growing and Increasingly Subscription-Based
Annual Recurring Revenue (ARR) — a snapshot of the annualized value of active subscription contracts — grew 8% to $3.5 billion for MA overall. Banking is actively shifting customers away from one-time transaction fees toward cloud-hosted subscriptions, which caused transaction revenue to fall 18% even as recurring banking revenue rose 9%. This transition temporarily suppresses reported revenue but builds a more predictable, subscription-based business over time.
Restructuring Costs Nearly Doubled, Signaling Ongoing Organizational Change
Restructuring charges rose from $59 million in 2024 to $108 million in 2025 — an 83% increase. These costs relate to the company's Strategic and Operational Efficiency Restructuring Program, which still has $110–$130 million in future cash outlays expected through 2027. The program is designed to generate cost savings that have already contributed to margin expansion, but the spending is not yet finished.
Free Cash Flow Remained Strong; Capital Returned to Shareholders
| Metric | 2025 | 2024 |
|---|---|---|
| Free Cash Flow | $2,575M | $2,521M |
| Share Repurchase Authority Remaining | $4.0B | — |
Free Cash Flow (operating cash after capital spending) held steady at $2.6 billion. The company repaid $700 million of debt, increased share buybacks, and the board approved a fresh $4.0 billion share repurchase authorization in October 2025. The quarterly dividend was set at $1.03 per share in early 2026, up from prior levels.