MSCI Inc. (NYSE:MSCI) stock rose Wednesday after the index and analytics provider posted quarterly results that came in ahead of Wall Street expectations.
The company pointed to steady subscription momentum and stronger asset-linked fees, helping lift profitability.
Quarterly Metrics
MSCI reported fourth-quarter adjusted earnings per share of $4.66, beating the analyst consensus estimate of $4.57.
Quarterly sales of $822.528 million outpaced the Street view of $819.352 million. Operating revenues rose 10.6%, with organic operating revenue growth of 10.2%.
Recurring subscription revenues increased 7.8% during the period. Asset-based fees climbed 20.7%, reflecting stronger market-driven inflows and valuations.
Operating income was $463.6 million, up 14.4%. Operating margin in the quarter under review expanded to 56.4% from 54.5%.
Adjusted EBITDA in the quarter under review totaled $512.002 million, higher than $452.254 million a year ago. Adjusted EBITDA margin in the quarter under review expanded to 62.2% from 60.8% a year ago.
Total Run Rate at December 31, 2025, was $3.301.6 billion, up 13.0%. Retention Rate in the fourth quarter of 2025 was 93.4%, compared to 93.1% in the fourth quarter of 2024.
As of December 31, 2025, the company had 6,268 employees, reflecting a 2.2% increase.
Capex was $36.3 million, and net cash provided by operating activities increased by 16.4% to $501.1 million, primarily reflecting higher cash collections from customers, partially offset by higher cash expenses and income taxes paid in the quarter. Free cash flow for the fourth quarter of 2025 was up 17.8% to $464.8 million.
Cash and equivalents were $515.3 million as of December 31, 2025.
"In the fourth quarter, MSCI delivered strong results while achieving a number of key milestones, including our 11th straight year of double-digit adjusted EPS growth, a record asset-based-fee run rate driven by record inflows into ETF products linked to our indexes, and our best-ever quarter for recurring sales in Index," said Henry A. Fernandez, Chairman and CEO of MSCI.
"MSCI's deep-rooted competitive advantages have helped us build momentum across product lines and client segments. With emerging client segments, in particular, we are doubling down on key opportunities while reinforcing our role as the essential intelligence layer of global investing. As a result, MSCI is well positioned to benefit from AI and use it to increase the value of our solutions," Fernandez added.
Dividend
On January 27, 2026, the MSCI Board of Directors declared a cash dividend of $2.05 per share for the first quarter of 2026, payable on February 27.
Outlook
The company guided for full-year 2026 operating expenses of $1.49–$1.53 billion, with adjusted EBITDA expenses projected at $1.305–$1.335 billion.
Interest expense, including amortization of financing fees, is expected to range between $274 million and $280 million, while depreciation and amortization is forecast at $185–$195 million.
The company anticipates an effective tax rate of 18%–20% and plans capital expenditures of $160–$170 million.
Net cash provided by operating activities is projected at $1.64–$1.69 billion, translating into free cash flow of $1.47–$1.53 billion for the year.
MSCI Price Action: MSCI shares were up 3.48% at $601.98 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Piotr Swat via Shutterstock
