Q2 2025 MSCI Inc Earnings Call Transcript
Key Points
- MSCI Inc (MSCI) reported strong financial performance with revenue growth of over 9%, adjusted EBITDA growth of over 10%, and adjusted earnings per share growth of almost 15%.
- The company achieved a record level of quarterly asset-based fee (ABF) revenue, driven by strong inflows into ETFs linked to MSCI indices, surpassing $2 trillion in total equity index ETF AUM.
- MSCI Inc (MSCI) demonstrated robust subscription run rate growth across various client segments, including 17% growth with wealth managers and 12% growth with asset owners.
- The company is expanding its private capital solutions, achieving nearly 13% run rate growth in Q2, and is actively developing new products to enhance its offerings in this area.
- MSCI Inc (MSCI) continues to innovate with new product launches, including data solutions offering deeper insights into indices and new climate and sustainability tools, which are becoming integral to the global investment process.
- The retention rate in analytics and sustainability segments was lower compared to the previous year, driven by client events and financial budget pressures.
- Subscription run rate growth with active asset managers remained steady at 6%, indicating challenges in accelerating growth within this client segment.
- The company faces ongoing pressures from consolidation in the asset management industry, which could impact future results.
- There is a cyclical slowdown in the sustainability and climate segment, with expectations of muted demand persisting for the next several quarters.
- The hedge fund segment experienced a deceleration in subscription run rate growth, attributed to the lumpy nature of the business and client event-driven cancellations.
Good day, ladies and gentlemen, and welcome to the MSCI Second Quarter 2025 Earnings Conference Call. As a reminder, this call is being recorded. (Operator Instructions) I would now like to turn the call over to Jeremy Ulan, Head of Investor Relations and Treasurer. Sir, you may begin.
Thank you, operator. Good day, and welcome to the MSCI Second Quarter 2025 Earnings Conference Call. Earlier this morning, we issued a press release announcing our results for the second quarter of 2025. This press release, along with an earnings presentation and brief quarterly update are available on our website, msci.com, under the Investor Relations tab. Let me remind you that this call contains forward-looking statements, which are governed by the language on the second slide of today's presentation.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, are based on current expectations and current economic conditions and
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