Morningstar (MORN) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 8.4% year-over-year to $617.4 million, with organic revenue up 9.0%.

• Adjusted operating income increased 15.6% to $150.6 million, and operating income rose 10.6% to $127.8 million.

• Adjusted operating margin improved to 24.4% from 22.9% in Q3 2024.

• Major growth drivers included Morningstar Credit, Direct Platform, and PitchBook.

• Completed $500 million share repurchase program and authorized a new $1 billion buyback.

Financial highlights

• Year-to-date revenue increased 7.1% to $1.8 billion, with organic revenue up 8.0%.

• Operating cash flow reached $195.7 million in Q3; free cash flow for the nine months was $281.3 million, down 16.3% year-over-year due to higher tax and bonus payments.

• License-based revenue grew 6.4% in Q3, asset-based revenue 1.1%, and transaction-based revenue 27.2%.

• International revenue grew 11.8% in Q3, now comprising 29% of total revenue.

• Share repurchases totaled $170.1 million in Q3 and $487.0 million YTD; dividends paid were $19.2 million in Q3 and $58 million YTD.

Outlook and guidance

• Management expects continued growth in core segments, with the CRSP acquisition anticipated to enhance data and index offerings.

• Sufficient liquidity and credit capacity are expected to support ongoing operations and strategic investments.

• Forward-looking statements caution about risks and uncertainties impacting future results.

• New product launches and AI collaborations highlighted as growth initiatives.