Msci — Income Statement, Cash Flows & Balance Sheet
Is MSCI profitable?
MSCI is a highly profitable, growing business with operating margins above 50%.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Operating revenues ($M) | $2,528.9 | $2,856.1 | $3,134.5 | +9.7% |
| Operating income ($M) | $1,384.6 | $1,528.5 | $1,713.6 | +12.1% |
| Operating margin | 54.8% | 53.5% | 54.7% | +1.2 pp |
| Net income ($M) | $1,148.6 | $1,109.1 | $1,202.3 | +8.4% |
| Diluted EPS | $14.39 | $14.05 | $15.69 | +11.7% |
Revenue and operating income have grown steadily each year, and the operating margin has held remarkably stable around 54–55% — a sign that MSCI's cost structure scales well as the business grows. Note that 2023 net income included a one-time, non-taxable gain of $143 million from acquiring control of Burgiss, which slightly flatters that year's bottom line relative to underlying performance.
Where does MSCI's revenue come from?
The Index segment is MSCI's largest and fastest-growing revenue driver, powered by both subscriptions and variable fees tied to assets under management.
| Segment | 2024 Revenue ($M) | 2025 Revenue ($M) | Change |
|---|---|---|---|
| Index | $1,596.1 | $1,786.8 | +11.9% |
| Analytics | $675.1 | $714.4 | +5.8% |
| Sustainability and Climate | $326.6 | $353.9 | +8.4% |
| All Other – Private Assets | $258.3 | $279.3 | +8.1% |
The Index segment generates roughly 57% of total revenue and grew the fastest in dollar terms. Within it, asset-based fees — revenue that rises and falls with the value of assets linked to MSCI's indexes, such as ETFs — jumped from $657.5 million to $770.7 million, reflecting strong equity markets. Analytics and Sustainability and Climate both grew steadily, driven by recurring subscriptions, which now make up nearly three-quarters of total company revenue and provide a high degree of predictability.
Does MSCI generate cash?
MSCI converts its profits into cash at a high rate, though most of that cash is being returned to shareholders rather than retained.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Operating cash flow ($M) | $1,236.0 | $1,501.6 | $1,588.4 | +5.8% |
| Capital expenditures + capitalized software ($M) | $90.9 | $115.1 | $129.9 | +12.8% |
| Free cash flow (GAAP operating CF minus capex) ($M) | $1,145.1 | $1,386.5 | $1,458.5 | +5.2% |
| Share repurchases ($M) | $504.2 | $885.3 | $2,484.3 | +180.7% |
| Dividends paid ($M) | $441.0 | $509.1 | $556.5 | +9.3% |
Free cash flow (operating cash flow minus capital and software spending) is substantial and growing. In 2025, MSCI dramatically stepped up share buybacks, spending over $2.4 billion — funded in part by issuing $1.75 billion in new debt — which explains why the cash balance actually grew modestly despite the aggressive capital return activity.
How strong is MSCI's balance sheet?
MSCI carries significant debt by design, and its shareholders' equity is negative — but this reflects a deliberate strategy of borrowing cheaply to buy back shares, not financial distress.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total debt ($M) | $4,510.8 | $6,202.3 | +$1,691.5 |
| Cash and equivalents ($M) | $409.4 | $515.3 | +$106.0 |
| Net debt ($M) | $4,101.4 | $5,687.0 | +$1,585.6 |
| Total shareholders' equity (deficit) ($M) | $(940.0) | $(2,654.5) | -$1,714.5 |
| Deferred revenue ($M) | $1,123.4 | $1,231.8 | +$108.4 |
The negative shareholders' equity is an accounting consequence of years of aggressive buybacks, not an inability to pay obligations — MSCI generated over $1.5 billion in operating cash in 2025. No debt matures before 2029, giving the company plenty of runway. The growing deferred revenue balance (cash collected from clients before services are delivered) is a healthy sign of forward demand.