MSCI Inc. kicked off 2025 with a strong first-quarter performance, showcasing continued growth momentum and robust profitability across its operations. Operating revenues reached $745.8 million, marking a 9.7% year-over-year increase, with organic operating revenue growth at 9.9%. This was driven by healthy gains in both recurring and asset-based revenue streams.

Recurring subscription revenues rose 7.7% YoY, while asset-based fees surged 18.1%, underscoring strong investor activity and demand for MSCI’s index-linked offerings. Profitability remained a standout, with the operating margin expanding to 50.6%, up from 49.9% a year ago. Adjusted EBITDA climbed to $425.6 million, an 11.0% YoY increase, translating to a margin of 57.1%, up slightly from 56.4% in the prior year.

On the bottom line, MSCI reported net income of $288.6 million, up 12.8% YoY, while diluted EPS rose 15.2% to $3.71. Adjusted EPS came in at $4.00, a 13.6% increase, highlighting strong operational leverage. The company maintained an impressive organic recurring subscription run rate growth of 8.2% and a client retention rate of 95.3%, reflecting continued client loyalty and satisfaction.

MSCI also demonstrated disciplined capital allocation. The company repurchased $275.4 million worth of shares (493,322 shares) and paid $139.7 million in dividends during the quarter. It declared a Q2 2025 dividend of $1.80 per share. The number of diluted shares outstanding declined 2.1% YoY to 77.8 million.

As of March 31, MSCI reported $360.7 million in cash and cash equivalents against $4.6 billion in total debt, with leverage ratios comfortably within or below target ranges. Capital expenditures totaled $32.9 million, and while net cash from operating activities rose slightly to $301.7 million, free cash flow dipped 2.5% to $268.9 million.

For full-year 2025, MSCI guided toward operating expenses between $1.405 and $1.445 billion, adjusted EBITDA expenses of $1.22 to $1.25 billion, and free cash flow in the range of $1.4 to $1.46 billion. Management expressed confidence in the company’s ability to deliver durable growth, emphasizing strong run-rate momentum across key client segments, including asset owners, hedge funds, and wealth managers.

Overall, MSCI delivered double-digit growth in key profitability metrics, maintained strong client retention, and continued to return capital to shareholders—all while projecting a solid financial outlook for the rest of 2025.