FactSet Reports Results for Third Quarter 2025
- Revenue growth with GAAP revenues up 5.9% to $585.5M and organic revenues up 4.4%
- Organic ASV increased 4.5% YoY to $2,296.9M
- Net cash from operations increased 6.5% to $253.8M
- Quarterly dividend increased 6% to $1.10 per share, marking 26th consecutive year of dividend increases
- New $400M share repurchase authorization approved
- GAAP operating margin decreased to 33.2% from 36.6% YoY
- Adjusted operating margin declined to 36.8% from 39.4%
- GAAP diluted EPS decreased 5.4% to $3.87
- Adjusted diluted EPS fell 2.3% to $4.27
- Net income declined 6.1% to $148.5M
Insights
FactSet shows modest revenue growth but declining margins and EPS amid leadership transition.
FactSet's Q3 2025 results present a mixed financial picture. While the company achieved 5.9% revenue growth to
The margin compression stems primarily from the lapping of favorable prior-year factors (lower bonus accruals and a one-time payroll tax adjustment) combined with higher base salaries from recent acquisitions. Despite these headwinds, management highlighted positive momentum in ASV growth, which accelerated
Client metrics remain strong with net addition of 166 clients (now 8,811 total) and user growth of 1,355 (reaching 220,496). The annual ASV retention rate exceeded 95%, demonstrating strong client loyalty despite the competitive financial data landscape.
The announced CEO transition from Phil Snow to Sanoke Viswanathan (formerly of JPMorgan Chase) represents a significant leadership change that will take effect in September 2025. This orderly succession includes Snow remaining as an advisor through year-end, suggesting continuity in strategic direction.
Notably, FactSet increased its quarterly dividend by 6% to
Management reaffirmed full-year guidance, projecting organic ASV growth of $100-130 million and adjusted diluted EPS of $16.80-17.40. The unchanged outlook suggests the company expects continued revenue growth with gradual improvement in operating metrics for the remainder of fiscal 2025.
- Q3 GAAP revenues of
$585.5 million , up5.9% from Q3 2024. - Organic Q3 ASV of
$2,296.9 million , up4.5% year over year. - Q3 GAAP operating margin of
33.2% , down approximately 350 bps year over year, and adjusted operating margin of36.8% , down 270 bps year over year. - Q3 GAAP diluted EPS of
$3.87 , down5.4% from the prior year, and adjusted diluted EPS of$4.27 , down2.3% year over year. - FactSet appointed Sanoke Viswanathan as CEO, effective early September 2025. He succeeds Phil Snow, who will retire as CEO and Board member. Snow will remain a senior advisor through the end of the calendar year.
NORWALK, Conn., June 23, 2025 (GLOBE NEWSWIRE) -- FactSet (“FactSet” or the “Company”) (NYSE:FDS) (NASDAQ:FDS), a global financial digital platform and enterprise solutions provider, today announced results for its third quarter fiscal 2025 ended May 31, 2025.
Third Quarter Fiscal 2025 Highlights
- GAAP revenues increased
5.9% , or$32.8 million , to$585.5 million for the third quarter of fiscal 2025 compared with$552.7 million in the prior year period. Organic(1) revenues grew4.4% year over year to$577.2 million during the third quarter of fiscal 2025. Growth in GAAP and Organic revenues this quarter was driven by wealth and institutional buy-side clients. - Annual Subscription Value ("ASV") was
$2,335.1 million at May 31, 2025, compared with$2,199.1 million at May 31, 2024. Organic ASV was$2,296.9 million at May 31, 2025, up4.5% or$98.5 million year over year(2). - Organic ASV increased
$22.6 million over the last three months. Please see the “ASV” section of this press release for details. - GAAP operating margin decreased to
33.2% compared with36.6% for the prior year period. Adjusted operating margin decreased to36.8% compared with39.4% in the prior year period. GAAP and adjusted operating margin decreased primarily due to the lapping of both a lower bonus accrual and a one-time payroll tax adjustment that occurred in the prior year, as well as higher annual base salaries from inclusion of recent acquisitions, partially offset by growth in revenues. In addition, GAAP operating margin decreased due to higher amortization of intangible assets. - GAAP diluted earnings per share ("EPS") decreased
5.4% to$3.87 compared with$4.09 for the same period in fiscal 2024. Adjusted diluted EPS decreased2.3% to$4.27 compared with$4.37 in the prior year period. The decrease in GAAP diluted EPS and adjusted diluted EPS were mainly driven by higher operating expenses, partially offset by growth in revenues. - Net cash provided by operating activities was
$253.8 million for the third quarter of fiscal 2025, an increase of6.5% compared with the prior year period. Free cash flow increased to$228.6 million for the third quarter of fiscal 2025, compared with$216.9 million for the prior year period, an increase of5.4% , primarily due to higher operating cash flows. - GAAP effective tax rate for the third quarter of fiscal 2025 increased to
17.5% compared with17.0% for the third quarter of fiscal 2024. The increase was primarily due to certain discrete items, mainly lower excess tax benefits related to stock-based compensation, as well as a higher overall foreign tax rate, partially offset by lower U.S. tax on foreign earnings.
(1) References to "organic" figures in this press release exclude the current year impact of acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency.
(2) Beginning in fiscal 2025, FactSet is reporting Organic ASV, rather than Organic ASV plus Professional Services, to focus on the recurring nature of its revenues. This underscores the shift of FactSet's offerings toward providing more managed services and less project-based services.
"We are pleased with our third quarter performance, which reflects the execution of our enterprise solution strategy. With a healthy pipeline and increased momentum, we are well-positioned to finish the fiscal year with strength," said Phil Snow, CEO of FactSet. "As FactSet prepares for its next chapter of leadership, I'm proud of the solid foundation we've established, built on innovation, client trust, and industry-leading data and workflow solutions. This platform gives me great conviction in the Company's continued success."
Key Financial Measures*
| (Condensed and Unaudited) | Three Months Ended | |||||||
| May 31, | ||||||||
| (In thousands, except per share data) | 2025 | 2024 | Change | |||||
| Revenues | $ | 585,520 | $ | 552,708 | 5.9 | % | ||
| Organic revenues | $ | 577,200 | $ | 552,708 | 4.4 | % | ||
| Operating income | $ | 194,155 | $ | 202,459 | (4.1 | )% | ||
| Adjusted operating income | $ | 215,313 | $ | 217,960 | (1.2 | )% | ||
| Operating margin | 33.2 | % | 36.6 | % | ||||
| Adjusted operating margin | 36.8 | % | 39.4 | % | ||||
| Net income | $ | 148,542 | $ | 158,135 | (6.1 | )% | ||
| Adjusted net income | $ | 163,921 | $ | 168,796 | (2.9 | )% | ||
| EBITDA | $ | 235,915 | $ | 239,930 | (1.7 | )% | ||
| Diluted EPS | $ | 3.87 | $ | 4.09 | (5.4 | )% | ||
| Adjusted diluted EPS | $ | 4.27 | $ | 4.37 | (2.3 | )% | ||
* See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release.
"As anticipated, the second half in fiscal 2025 is showing improved results, with third quarter organic ASV growth accelerating as we meet client demands and execute diligently," said Helen Shan, FactSet's CFO. "At the same time, we remain focused on investing in our strategic priorities and are reaffirming our fiscal 2025 guidance to achieve our full year targets."
Annual Subscription Value (ASV)
ASV at any given point in time represents the forward-looking revenues for the next 12 months from all subscription services currently supplied to clients.
ASV was
The buy-side and sell-side organic ASV annual growth rates as of May 31, 2025 were each
Segment Revenues and ASV
ASV from the Americas was
ASV from EMEA was
ASV from Asia Pacific was
Operational Highlights – Third Quarter Fiscal 2025
- Client count as of May 31, 2025 was 8,811, a net increase of 166 clients in the past three months, driven by hedge fund, corporate and wealth management clients, and now includes clients from the LiquidityBook acquisition. The count includes clients with ASV of
$10,000 and more. - User count was 220,496 as of May 31, 2025, a net increase of 1,355 users in the past three months, driven by an increase in wealth management users. The user count does not reflect the fiscal 2025 acquisitions.
- Annual ASV retention was greater than
95% as of May 31, 2025. When expressed as a percentage of clients, annual retention was91% as of May 31, 2025. - Employee headcount was 12,579 as of May 31, 2025, up
2.6% over the last 12 months, with the increase primarily in the sales and technology groups, mainly from the Irwin and LiquidityBook acquisitions and an increase in employees in our Centers of Excellence. FactSet's Centers of Excellence account for approximately67% of the Company's employees. - A quarterly dividend of
$41.6 million , or$1.10 per share, was paid on June 18, 2025, to holders of record of FactSet’s common stock at the close of business on May 30, 2025. This represents a6% increase in the regular quarterly dividend from the$1.04 per share paid in the previous quarter and marks the 26th consecutive year the Company has increased dividends on a stock split-adjusted basis. - FactSet entered into a new credit agreement that includes a term loan of
$500 million and a revolving credit facility of$1.0 billion , which remains undrawn. The term loan was used to repay borrowings under the 2022 credit agreement. - FactSet announced that Phil Snow will retire as CEO and a member of the Board, effective early September 2025 and will be succeeded by Sanoke Viswanathan, most recently CEO of International Consumer and Wealth at JPMorgan Chase. Snow will serve as a senior advisor through the end of the calendar year.
- FactSet was named Databricks' Financial Services Data Partner of the Year. FactSet data is available on the Databricks Marketplace to help clients accelerate time to value by eliminating manual data integration and enabling seamless and secure access to FactSet's industry-leading proprietary and third-party connected data.
- After the quarter, CUSIP Global Services announced a collaboration with Aumni, Inc., a JPMorgan company, to expand CUSIP coverage for venture-backed and private equity-owned companies. This expanded coverage provides standardized identifiers for company issuers and their financial instruments, thereby increasing efficiency, accuracy, and security in reporting, settlement, and analytics for venture capital firms, private equity firms, and their investors.
Share Repurchase Program
FactSet repurchased 184,050 shares of its common stock for
Annual Business Outlook
FactSet reaffirms its outlook for fiscal 2025 provided on March 20, 2025. The following forward-looking statements reflect FactSet's expectations as of today's date. Given the risk factors, uncertainties, and assumptions discussed below, actual results may differ materially. FactSet does not intend to update its forward-looking statements prior to its next quarterly results announcement.
Fiscal 2025 Expectations
- Organic ASV is expected to grow in the range of
$100 million to$130 million during fiscal 2025. - GAAP revenues are expected to be in the range of
$2,305 million to$2,325 million . - GAAP operating margin is expected to be in the range of
32.0% to33.0% . - Adjusted operating margin is expected to be in the range of
36.0% to37.0% . - FactSet's annual effective tax rate is expected to be in the range of
17% to18% . - GAAP diluted EPS is expected to be in the range of
$14.80 t o$15.40 . - Adjusted diluted EPS is expected to be in the range of
$16.80 t o$17.40 .
Adjusted operating margin and adjusted diluted EPS guidance do not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2025. Please see the back of this press release for a reconciliation of GAAP to adjusted metrics.
Conference Call
Third Quarter 2025 Conference Call Details
| Date: | Monday, June 23, 2025 |
| Time: | 9:00 a.m. Eastern Time |
| Participant Registration: | FactSet Q3 2025 Earnings Call Registration |
Please register for the conference call using the above link before the call start time. The conference call platform will register your name and organization and provide dial-in numbers and a unique access pin. The conference call will have a live Q&A session.
A replay will be available on the Company’s investor relations website after 1:00 p.m. Eastern Time on June 23, 2025, through June 23, 2026. The earnings call transcript will be available via FactSet CallStreet.
Forward-looking Statements
This press release contains forward-looking statements based on management's current expectations, estimates, forecasts and projections about future events and circumstances, industries in which FactSet operates and the beliefs and assumptions of management. All statements that address expectations, guidance, outlook or projections about the future, including statements about the Company's strategy for growth, product development, revenues, future financial results, anticipated growth, market position, subscriptions, expected expenditures, trends in FactSet’s business and financial results, are forward-looking statements. Forward-looking statements may be identified by words like "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "projects," "indicates," "predicts," "potential," or "continue," and similar expressions. Forward-looking statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in FactSet's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K and quarterly reports on Form 10-Q, as well as others, could cause results to differ materially from those expressed or implied by the forward-looking statements. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. FactSet assumes no duty to and does not undertake to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Future results could differ materially from historical performance.
About Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. GAAP. The Company also refers to and presents certain additional non-GAAP financial measures. These measures include: organic revenues, adjusted operating margin, adjusted operating income, adjusted net income, EBITDA, adjusted diluted EPS, and free cash flow. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP at the back of this release.
FactSet uses these non-GAAP financial measures both in presenting its results to stockholders and the investment community and in its internal evaluation and management of the business. The Company believes that these non-GAAP financial measures provide useful supplemental information to investors because they permit investors to view the Company’s performance using the same tools that management uses to gauge progress in achieving its goals. Investors may benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning, forecasting and analyzing future periods, and such measures may also facilitate comparisons to historical performance. The Company believes that organic revenues, adjusted operating margin, adjusted operating income, adjusted net income, EBITDA, and adjusted diluted EPS help to fully reflect the underlying economic performance of FactSet. The Company believes that free cash flow is useful to investors because it is an indication of cash flow that may be available to fund investments in future growth initiatives. The presentation of this non-GAAP financial information should not be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with GAAP. We are not able to reconcile certain forward-looking non-GAAP measures to reported measures without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact or exact timing of items that may impact comparability.
About FactSet
FactSet (NYSE:FDS | NASDAQ:FDS) supercharges financial intelligence, offering enterprise data and information solutions that power our clients to maximize their potential. Our cutting-edge digital platform seamlessly integrates proprietary financial data, client datasets, third-party sources, and flexible technology to deliver tailored solutions across the buy-side, sell-side, wealth management, private equity, and corporate sectors. With over 47 years of expertise, a presence in 20 countries, and extensive multi-asset class coverage, we leverage advanced data connectivity alongside AI and next-generation tools to streamline workflows, drive productivity, and enable smarter, faster decision-making. Serving more than 8,800 global clients and over 220,000 individual users, FactSet is a member of the S&P 500 dedicated to innovation and long-term client success. Learn more at www.factset.com and follow us on X and LinkedIn.
Investor Relations:
Kevin Toomey
+1.212.209.5259
Kevin.Toomey@factset.com
Media Relations:
Kelsey Goldsmith
+1.207.712.9726
Kelsey.Goldsmith@factset.com
| Consolidated Statements of Income (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| May 31, | May 31, | ||||||||||||||
| (In thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Revenues | $ | 585,520 | $ | 552,708 | $ | 1,724,847 | $ | 1,640,869 | |||||||
| Operating expenses | |||||||||||||||
| Cost of services | 280,729 | 246,986 | 809,112 | 753,749 | |||||||||||
| Selling, general and administrative | 110,636 | 103,263 | 344,753 | 313,679 | |||||||||||
| Total operating expenses | 391,365 | 350,249 | 1,153,865 | 1,067,428 | |||||||||||
| Operating income | 194,155 | 202,459 | 570,982 | 573,441 | |||||||||||
| Other income (expense), net | |||||||||||||||
| Interest income | 1,509 | 4,568 | 4,483 | 10,427 | |||||||||||
| Interest expense | (15,122 | ) | (16,894 | ) | (43,438 | ) | (50,231 | ) | |||||||
| Other income (expense), net | (594 | ) | 399 | (20 | ) | 736 | |||||||||
| Total other income (expense), net | (14,207 | ) | (11,927 | ) | (38,975 | ) | (39,068 | ) | |||||||
| Income before income taxes | 179,948 | 190,532 | 532,007 | 534,373 | |||||||||||
| Provision for income taxes | 31,406 | 32,397 | 88,583 | 86,743 | |||||||||||
| Net income | $ | 148,542 | $ | 158,135 | $ | 443,424 | $ | 447,630 | |||||||
| Basic earnings per common share | $ | 3.92 | $ | 4.15 | $ | 11.68 | $ | 11.76 | |||||||
| Diluted earnings per common share | $ | 3.87 | $ | 4.09 | $ | 11.53 | $ | 11.58 | |||||||
| Basic weighted average common shares | 37,907 | 38,089 | 37,976 | 38,069 | |||||||||||
| Diluted weighted average common shares | 38,344 | 38,640 | 38,457 | 38,644 | |||||||||||
Certain prior year figures have been conformed to the current year's presentation.
| Consolidated Balance Sheets (Unaudited) | |||||||
| (In thousands) | May 31, 2025 | August 31, 2024 | |||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 356,361 | $ | 422,979 | |||
| Investments | 7,684 | 69,619 | |||||
| Accounts receivable, net of reserves of | 271,851 | 228,054 | |||||
| Prepaid taxes | 61,048 | 55,103 | |||||
| Prepaid expenses and other current assets | 63,534 | 60,093 | |||||
| Total current assets | 760,478 | 835,848 | |||||
| Property, equipment and leasehold improvements, net | 79,627 | 82,513 | |||||
| Goodwill | 1,277,855 | 1,011,129 | |||||
| Intangible assets, net | 1,931,210 | 1,844,141 | |||||
| Deferred taxes | 66,870 | 61,337 | |||||
| Lease right-of-use assets, net | 119,191 | 130,494 | |||||
| Other assets | 103,531 | 89,578 | |||||
| TOTAL ASSETS | $ | 4,338,762 | $ | 4,055,040 | |||
| LIABILITIES | |||||||
| Accounts payable and accrued expenses | $ | 144,487 | $ | 178,250 | |||
| Current debt | — | 124,842 | |||||
| Current lease liabilities | 33,219 | 31,073 | |||||
| Accrued compensation | 98,131 | 93,279 | |||||
| Deferred revenues | 170,897 | 159,761 | |||||
| Current taxes payable | 30,545 | 40,391 | |||||
| Dividends payable | 41,644 | 39,470 | |||||
| Total current liabilities | 518,923 | 667,066 | |||||
| Long-term debt | 1,430,197 | 1,241,131 | |||||
| Deferred taxes | 16,573 | 8,452 | |||||
| Deferred revenues, non-current | 312 | 1,344 | |||||
| Taxes payable | 48,072 | 40,452 | |||||
| Long-term lease liabilities | 157,088 | 177,521 | |||||
| Other liabilities | 12,415 | 6,614 | |||||
| TOTAL LIABILITIES | $ | 2,183,580 | $ | 2,142,580 | |||
| STOCKHOLDERS’ EQUITY | |||||||
| TOTAL STOCKHOLDERS’ EQUITY | $ | 2,155,182 | $ | 1,912,460 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,338,762 | $ | 4,055,040 | |||
| Consolidated Statements of Cash Flows (Unaudited) | |||||||
| Nine Months Ended | |||||||
| May 31, | |||||||
| (In thousands) | 2025 | 2024 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income | $ | 443,424 | $ | 447,630 | |||
| Adjustments to reconcile net income to net cash provided by operating activities | |||||||
| Depreciation and amortization | 114,972 | 91,154 | |||||
| Amortization of lease right-of-use assets | 23,152 | 22,846 | |||||
| Stock-based compensation expense | 47,154 | 46,707 | |||||
| Deferred income taxes | 3,154 | (6,979 | ) | ||||
| Other, net | 7,428 | 7,831 | |||||
| Changes in assets and liabilities, net of effects of acquisitions | |||||||
| Accounts receivable | (41,492 | ) | (7,176 | ) | |||
| Prepaid expenses and other assets | 6,699 | (14,941 | ) | ||||
| Accounts payable and accrued expenses | (49,717 | ) | 17,296 | ||||
| Accrued compensation | 3,789 | (33,329 | ) | ||||
| Deferred revenues | 4,955 | 13,817 | |||||
| Taxes payable, net of prepaid taxes | (19,108 | ) | (15,992 | ) | |||
| Lease liabilities, net | (30,250 | ) | (31,687 | ) | |||
| Net cash provided by operating activities | 514,160 | 537,177 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of property, equipment, leasehold improvements and capitalized internal-use software | (74,840 | ) | (59,722 | ) | |||
| Acquisition of businesses, net of cash and cash equivalents acquired | (348,255 | ) | — | ||||
| Purchases of investments | (4,433 | ) | (44,936 | ) | |||
| Proceeds from maturity or sale of investments | 58,155 | — | |||||
| Net cash provided by (used in) investing activities | (369,373 | ) | (104,658 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from debt | 803,410 | — | |||||
| Repayments of debt | (742,500 | ) | (187,500 | ) | |||
| Dividend payments | (118,329 | ) | (111,297 | ) | |||
| Proceeds from employee stock plans | 72,616 | 83,497 | |||||
| Repurchases of common stock | (193,838 | ) | (171,918 | ) | |||
| Other financing activities | (20,686 | ) | (15,690 | ) | |||
| Net cash provided by (used in) financing activities | (199,327 | ) | (402,908 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,966 | (1,911 | ) | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (52,574 | ) | 27,700 | ||||
| Cash and cash equivalents at beginning of period | 422,979 | 425,444 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 370,405 | $ | 453,144 | |||
| Reconciliation of total cash, cash equivalents and restricted cash: | |||||||
| Cash and cash equivalents | $ | 356,361 | $ | 453,144 | |||
| Restricted cash included in Prepaid expenses and other current assets | 6,522 | — | |||||
| Restricted cash included in Other assets | 7,522 | — | |||||
| Total cash, cash equivalents and restricted cash | $ | 370,405 | $ | 453,144 | |||
Certain prior year figures have been conformed to the current year's presentation.
Reconciliation of U.S. GAAP Results to Adjusted Financial Measures
Organic Revenues
Organic revenues exclude the current year impact of revenues from acquisitions and dispositions completed within the past 12 months and the current year impact from changes in foreign currency. The table below provides a reconciliation of revenues to organic revenues:
| (Unaudited) | Three Months Ended | ||||||||||
| May 31, | |||||||||||
| (In thousands) | 2025 | 2024 | Change | ||||||||
| Revenues | $ | 585,520 | $ | 552,708 | 5.9 | % | |||||
| Acquisition revenues | (7,781 | ) | — | ||||||||
| Currency impact | (539 | ) | — | ||||||||
| Organic revenues | $ | 577,200 | $ | 552,708 | 4.4 | % | |||||
Non-GAAP Financial Measures
The table below provides a reconciliation of operating income, operating margin, net income and diluted EPS to adjusted operating income, adjusted operating margin, adjusted net income, EBITDA, and adjusted diluted EPS.
Adjusted operating income and margin, adjusted net income, and adjusted diluted earnings per share exclude acquisition-related intangible asset amortization and non-recurring items. EBITDA represents earnings before interest expense, provision for income taxes and depreciation and amortization expense.
| Three Months Ended | |||||||||||
| May 31, | |||||||||||
| (in thousands, except per share data) | 2025 | 2024 | % Change | ||||||||
| Operating income | $ | 194,155 | $ | 202,459 | (4.1 | )% | |||||
| Intangible asset amortization | 19,182 | 16,674 | |||||||||
| Business acquisitions and related costs | 1,976 | 423 | |||||||||
| Restructuring/severance | — | (1,596 | ) | ||||||||
| Adjusted operating income | $ | 215,313 | $ | 217,960 | (1.2 | )% | |||||
| Operating margin | 33.2 | % | 36.6 | % | |||||||
| Adjusted operating margin(1) | 36.8 | % | 39.4 | % | |||||||
| Net income | $ | 148,542 | $ | 158,135 | (6.1 | )% | |||||
| Intangible asset amortization | 13,943 | 11,466 | |||||||||
| Business acquisitions and related costs | 1,436 | 291 | |||||||||
| Restructuring/severance | — | (1,096 | ) | ||||||||
| Adjusted net income(2) | $ | 163,921 | $ | 168,796 | (2.9 | )% | |||||
| Net income | 148,542 | 158,135 | (6.1 | )% | |||||||
| Interest expense | 15,122 | 16,894 | |||||||||
| Income taxes | 31,406 | 32,397 | |||||||||
| Depreciation and amortization expense | 40,845 | 32,504 | |||||||||
| EBITDA | $ | 235,915 | $ | 239,930 | (1.7 | )% | |||||
| Diluted EPS | $ | 3.87 | $ | 4.09 | (5.4 | )% | |||||
| Intangible asset amortization | 0.36 | 0.30 | |||||||||
| Business acquisitions and related costs | 0.04 | 0.01 | |||||||||
| Restructuring/severance | — | (0.03 | ) | ||||||||
| Adjusted diluted EPS(2) | $ | 4.27 | $ | 4.37 | (2.3 | )% | |||||
| Weighted average common shares (diluted) | 38,344 | 38,640 | |||||||||
| (1) | Adjusted operating margin is calculated as Adjusted operating income divided by Revenues. |
| (2) | For purposes of calculating Adjusted net income and Adjusted diluted EPS, all adjustments for the three months ended May 31, 2025 and May 31, 2024 were taxed at an adjusted tax rate of |
Business Outlook Operating Margin, Net Income and Diluted EPS
| (Unaudited) | |||||||
| Figures may not foot due to rounding | Annual Fiscal 2025 Guidance | ||||||
| (In millions, except per share data) | Low end of range | High end of range | |||||
| Revenues | $ | 2,305 | $ | 2,325 | |||
| Operating income | $ | 761 | $ | 744 | |||
| Operating margin | 33.0 | % | 32.0 | % | |||
| Intangible asset amortization | 80 | 81 | |||||
| Other adjustments (net) | 12 | 12 | |||||
| Adjusted operating income | $ | 853 | $ | 837 | |||
| Adjusted operating margin(a) | 37.0 | % | 36.0 | % | |||
| Net income | $ | 588 | $ | 567 | |||
| Intangible asset amortization | 66 | 66 | |||||
| Other adjustments (net) | 10 | 10 | |||||
| Discrete tax items | (4 | ) | (4 | ) | |||
| Adjusted net income | $ | 660 | $ | 640 | |||
| Diluted earnings per common share | $ | 15.40 | $ | 14.80 | |||
| Intangible asset amortization | 1.73 | 1.73 | |||||
| Other adjustments (net) | 0.30 | 0.30 | |||||
| Discrete tax items | (0.03 | ) | (0.03 | ) | |||
| Adjusted diluted earnings per common share | $ | 17.40 | $ | 16.80 | |||
| (a) | Adjusted operating margin is calculated as Adjusted operating income divided by Revenues. |
Free Cash Flow
Cash flows provided by operating activities have been reduced by purchases of property, equipment, leasehold improvements and capitalized internal-use software to report non-GAAP free cash flow.
| (Unaudited) | Three Months Ended | ||||||||||
| May 31, | |||||||||||
| (In thousands) | 2025 | 2024 | Change | ||||||||
| Net Cash Provided for Operating Activities | $ | 253,833 | $ | 238,235 | 6.5 | % | |||||
| Less: purchases of property, equipment, leasehold improvements and capitalized internal-use software | (25,230 | ) | (21,339 | ) | |||||||
| Free Cash Flow | $ | 228,603 | $ | 216,896 | 5.4 | % | |||||
Supplementary Schedules of Historical ASV by Client Type
The following table presents the percentages and growth rates of organic ASV by client type, excluding the impact of currency movements, and may be useful to facilitate historical comparisons. Organic ASV excludes acquisitions and dispositions completed within the last 12 months and the effects of foreign currency movements.
The numbers below do not include professional services or issuer fees.
| Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | |
| % of ASV from buy-side clients | ||||||||
| % of ASV from sell-side clients | ||||||||
| ASV Growth rate from buy-side clients | ||||||||
| ASV Growth rate from sell-side clients | ||||||||
The following table presents the calculation of organic ASV.
| (In millions) | As of May 31, 2025 | ||
| As reported ASV | $ | 2,335.1 | |
| Currency impact (a) | (5.7 | ) | |
| Acquisition ASV (b) | (32.5 | ) | |
| Organic ASV | $ | 2,296.9 | |
| Organic ASV annual growth rate | 4.5 | % | |
| (a) | The impact from foreign currency movements. |
| (b) | Acquired ASV from acquisitions completed within the last 12 months. |
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