MSCI’s asset-based fees accelerate as quarterly revenue climbs 12%

MSCI ($MSCI) reported quarterly revenue of $892 million, an increase of 12.4%, with organic growth of 12.3%. Subscription revenue grew 7.7%, while asset-based fees increased 24.9%. Operating margin reached 56.3% and adjusted EBITDA margin was 62.2%. Net income rose 7.9% to $351 million, with GAAP earnings of $4.86 per share and adjusted earnings of $5.11 per share.

The subscription run rate increased 8.7% and the retention rate was 95%, providing evidence of continued customer demand alongside the faster-growing asset-fee business. The mix matters financially because subscription activity and fees linked to asset values do not respond identically to market conditions. Strong asset-based growth can support earnings, but it should not be treated as a fixed recurring increase independent of markets. The reported margins and earnings relate to the completed quarter, not a newly issued long-term target.

Sources:

• MSCI — Business Wire financial results