Record ETF Growth and Diverse Client Expansion Drive MSCI’s Q2 Success

MSCI Inc. Reports Second Quarter Results

MSCI Inc. (NYSE: MSCI) shared its earnings for the second quarter of 2025 on Tuesday. The company reported a total revenue of $772.7 million, marking a 9.1% increase compared to the same quarter last year. Analysts had anticipated revenue of around $763.5 million. The earnings per share (EPS) stood at $4.17, slightly above the analyst consensus of $4.11.

As of June 30, 2025, MSCI’s total recurring revenue showed a growth of 10.7% year-over-year, reaching $31 billion. The organic execution rates for repeat subscriptions also improved by 7.4%. However, client retention saw a small dip to 94.4%, down from 94.8% the previous year.

Operating revenue from MSCI Indexes grew by 9.5% year-on-year, climbing to $434.8 million, thanks to consistent subscription revenue and asset-based fees.

In the analytics sector, operating revenue rose 7.1% to $177.7 million, primarily driven by repeat subscription revenues from stocks and multi-asset analytics products.

On another note, the Sustainability and Climate segment’s revenue increased by 11.3% to $88.9 million, supported by developments in climate-related products. Meanwhile, the operating revenue for private assets improved by 9.7%, totaling $71.2 million.

The operating margin enhanced from 54.0% to 55.0%, while the adjusted EBITDA margin increased from 60.7% to 61.4%. In the quarter, MSCI generated $331.6 million in free cash flow and had $347.3 million in cash equivalents by June 30, 2025.

For capital expenditures, MSCI invested $34.6 million. The company also returned capital to shareholders through a share repurchase program totaling $131.2 million, acquiring 250,818 shares at an average price of $523.20. Additionally, dividends of about $139.3 million were disbursed.

On July 21, the Board announced a third-quarter cash dividend of $1.80 per share, set to be distributed to record shareholders on August 15, 2025.

Chairman and CEO Henry A. Fernandez highlighted the strong financial performance for the quarter, noting a 17% growth in asset-based fees bolstered by record assets under management in index-linked ETFs. He pointed out that MSCI outperformed all index providers in equity ETF cash inflation and maintained double-digit subscription growth across various key segments, including banks and asset managers.

Looking ahead, MSCI is focused on expanding its solutions to cater to a broader range of client needs and continue developing innovative products. The approach seems to hinge on its robust financial models and integrated offerings, aimed at helping clients advance their strategies.