MSCI Inc.

MSCI
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$851M
Q1 2026 · +14.1% YoY
TTM ROIC
36%
FY2025 · NOPAT / Total Capital (Debt + Equity at book): Invested capital = Total debt ($6.3B) + Equity (-$2.7B) = $3.6B; NOPAT ~$1.3B (FY2025 adj. operating income × 80%) · WACC ~7.5% · Moat spread +8.5pp

Financial Snapshot

ticker: MSCI step: 04 generated: 2026-05-13 source: quick-research

MSCI Inc. (MSCI) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$2.25B ~$2.53B $2.860B +12.9%
Adj. EBITDA Margin ~58% ~59% ~60% expanding
FCF Growth — — +21% —
Adj. EPS Growth — — +12.4% —

FY2025: Revenue $3.134B (+9.75%); Adj. EBITDA margin 62.2% (Q4 2025); Operating margin 56.4% (Q4 2025); 11th consecutive year of double-digit adjusted EPS growth; FCF and buybacks ongoing ($810M in FY2024); Q4 2025 adj. EPS $4.66 (+11.5% YoY), GAAP EPS $3.81 (-2.3% — impacted by one-time items). $18.3T AUM benchmarked to MSCI indexes. Client retention 94.7%. Recurring subscription revenues 7.5% growth (moderating); Asset-based fees +20.7% (driven by equity market appreciation). ABF growth projected to moderate to 15% in 2025 (from 20.8% in Q4 2024).

Cash Flow & Balance Sheet

Metric Value
AUM Benchmarked to MSCI $18.3 trillion
Client Retention Rate 94.7%
Adj. EBITDA Margin 62.2%
Recurring Revenue % ~74% of operating income
Share Buybacks $810M (FY2024); ongoing
Debt Elevated (leveraged buyback program; investment grade)

MSCI operates with high financial leverage — the company borrows to fund share repurchases because the ROI on buybacks (retiring shares at 35–40x EBITDA) is accretive given the stable, high-margin recurring revenue. This is the "Warren Buffett toll booth" model: own a monopolistic toll road, lever it up, buy back stock, repeat.

Key Ratios (approximate)

  • P/E: ~35–40x (adj. EPS ~$17–18 annualized; stock ~$580–600)
  • Adj. EBITDA Margin: 62.2%
  • Revenue Growth (FY2025): +9.75% | FY2024: +12.9%
  • Adj. EPS CAGR (11 years): ~12% compound

Growth Profile

MSCI has grown revenue from ~$2.25B (FY2022) to $3.134B (FY2025) — 1.39x in 3 years — with adj. EBITDA margins expanding from ~58% to 62%+. The operating leverage is exceptional: each incremental dollar of ABF revenue (from $18.3T × rising equity markets) flows almost entirely to profit. Revenue growth is moderating from ~13% (FY2024) toward ~10% (FY2025) as ABF growth normalizes. Subscription growth at 7.5% reflects high-base dynamics; ESG headwinds; and a pivot toward climate/private assets for next growth leg.

Forward Estimates

  • FY2026: Revenue ~$3.4B; adj. EPS ~$19–20 (+12%); adj. EBITDA margin ~63%+
  • Analyst consensus PT: ~$658–666 (8 analysts; Buy consensus)
  • ~15–18% implied upside from ~$570 current
  • Long-term growth: 12% adj. EPS CAGR projected through 2029 by analysts

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $MSCI.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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