Msci — Financial Results
Revenue Grew 9.7% to $3.1 Billion, Driven by Both Subscriptions and Market-Linked Fees
| Revenue Type | 2025 | 2024 | Change |
|---|---|---|---|
| Recurring subscriptions | $2.28B | $2.11B | +7.8% |
| Asset-based fees | $771M | $658M | +17.2% |
| Total revenues | $3.13B | $2.86B | +9.7% |
Total revenue crossed $3 billion for the first time, with growth coming from two distinct sources. Recurring subscriptions — the stable, contract-based slice of the business — grew 7.8%, while asset-based fees (charges tied to assets held in funds that track MSCI indexes) surged 17.2% as global equity markets rose. The combination means MSCI benefits both from client retention and from rising stock prices.
ETF Assets Linked to MSCI Indexes Hit $2.3 Trillion, Up 36% Year-Over-Year
| Metric | Dec 2024 | Dec 2025 | Change |
|---|---|---|---|
| AUM in ETFs linked to MSCI equity indexes | $1.72T | $2.34T | +35.7% |
| Average AUM (full year) | $1.63T | $2.01T | +23.2% |
The assets under management (AUM) sitting in exchange-traded funds (ETFs) that benchmark against MSCI indexes grew sharply, fueled by both market appreciation and new cash inflows. Since a large chunk of MSCI's fee income is calculated as a small percentage of these assets, a bigger asset pool directly translates to higher revenue — this is the engine behind that 17.2% jump in asset-based fees.
Profitability Improved: Adjusted EBITDA Margin Reached 60.8%
| Metric | 2025 | 2024 |
|---|---|---|
| Adjusted EBITDA | $1.91B | $1.72B |
| Adjusted EBITDA margin | 60.8% | 60.1% |
| Net income | $1.20B | $1.11B |
Adjusted EBITDA (a measure of operating profit before interest, taxes, and non-cash charges) grew 11.1%, slightly faster than revenue, meaning MSCI is keeping more of each new dollar earned. A 60.8% margin is exceptionally high for a data and analytics business, reflecting how much of the cost base is fixed once the indexes and tools are built.
Sustainability and Climate Segment: Strong Profits but Slowing New Sales
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Segment revenue | $354M | $327M | +8.4% |
| Adjusted EBITDA margin | 36.3% | 32.1% | +4.2pp |
| New recurring subscription sales | $40M | $55M | -27.5% |
| Net new recurring subscription sales | $17M | $32M | -47.9% |
The Sustainability and Climate segment dramatically improved its profitability — expenses barely moved (+1.6%) while revenue grew 8.4%, lifting the margin from 32% to 36%. However, the pipeline of new business contracted sharply, with new sales falling 27.5%. The filing cites political scrutiny of sustainability investing in the US as a headwind, while European regulatory demand remains supportive. This is a segment to watch closely.
Retention Rate Improved to 94.4%, with Subscription Cancellations Falling
| Segment | 2025 Retention | 2024 Retention |
|---|---|---|
| Index | 95.9% | 94.7% |
| Analytics | 94.3% | 94.1% |
| Sustainability and Climate | 93.2% | 92.8% |
| All Other – Private Assets | 91.3% | 90.6% |
| Total | 94.4% | 93.7% |
The retention rate — the share of recurring subscription revenue that clients renew rather than cancel — improved across every segment. Total subscription cancellations fell 5.3% year-over-year to $125 million, even as the business grew. High retention is the hallmark of a sticky, essential-service business model.
Debt Load Increased to $6.3 Billion After Two New Bond Issuances
MSCI raised $1.75 billion in new long-term debt during 2025: $1.25 billion in 5.25% notes due 2035 and $500 million in 5.15% notes due 2036. Total Senior Notes (fixed-rate bonds) outstanding reached $6.0 billion, plus $0.3 billion drawn on a revolving credit line. The company also expanded its revolving credit facility from $1.25 billion to $1.6 billion. Interest expense rose 13.1% to $210 million as a result. The leverage ratio (debt relative to earnings) stood at 2.97x against a covenant limit of 4.25x, so there is headroom, but this is a meaningfully leveraged balance sheet being used to fund share buybacks and dividends alongside growth investment.