Morningstar, Inc. reported a consolidated revenue of $581.9 million for the first quarter of 2025, reflecting a 7.2% increase compared to $542.8 million in the same period of 2024. The company's net income rose to $78.5 million, up from $64.2 million a year earlier, resulting in a basic net income per share of $1.83, compared to $1.50 in the prior year. The operating income also saw a significant increase of 23.2%, reaching $114.1 million, with an operating margin of 19.6%, up from 17.1% in the previous year.
The growth in revenue was driven by increases across various segments, particularly in license-based revenue, which grew by 4.4%, and transaction-based revenue, which surged by 19.2%. The asset-based revenue also saw an 11.3% increase, primarily attributed to strong performance in the Morningstar Retirement and Wealth segments. The company noted that foreign currency movements negatively impacted revenue by approximately $4.6 million during the quarter.
Strategically, Morningstar completed two acquisitions in March 2025: Dealview Technologies Limited and Lumonic Inc., enhancing its capabilities in commercial mortgage-backed securities data and private credit portfolio management, respectively. These acquisitions are expected to contribute positively to the company's financial performance moving forward. Additionally, Morningstar has restructured its reportable segments, renaming the Morningstar Data and Analytics segment to Morningstar Direct Platform, which reflects its focus on providing comprehensive data and insights to investors.
Operationally, Morningstar's total employee headcount remained stable, and the company reported a slight increase in customer engagement metrics, particularly in its PitchBook and Morningstar Direct Platform segments. The company also repurchased 368,199 shares for $109.6 million during the quarter, as part of its ongoing share repurchase program, which has a remaining authorization of $377.4 million. Looking ahead, Morningstar anticipates continued growth driven by strong demand for its products and services, although it remains cautious about potential economic volatility and its impact on client spending.
About Morningstar, Inc.
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