Morningstar, Inc. reported a solid financial performance for the third quarter and the first nine months of 2025, with consolidated revenue reaching $617.4 million for the quarter, an increase of 8.4% compared to $569.4 million in the same period last year. For the nine months ended September 30, 2025, revenue totaled $1.804 billion, reflecting a 7.1% increase from $1.684 billion in 2024. Operating income also saw growth, rising to $127.8 million in the third quarter, up 10.6% from $115.5 million a year earlier, and $367 million for the nine months, a 15.9% increase from $316.6 million.
The company experienced notable changes in its operational metrics, with a reported increase in license-based revenue of 6.4% for the third quarter, driven primarily by strong demand for its Morningstar Direct Platform and PitchBook products. Transaction-based revenue surged by 27.2%, largely due to robust performance in the Morningstar Credit segment. However, asset-based revenue saw a modest increase of 1.1% in the third quarter, attributed to growth in Morningstar Retirement products. Morningstar's effective tax rate increased to 25.5% for the third quarter, up from 19.8% in the prior year, primarily due to a book gain from the previous sale of its Commodity and Energy Data business.
Strategically, Morningstar has been active in expanding its portfolio through acquisitions. In March 2025, the company completed the acquisition of DealX, a provider of commercial mortgage-backed security data, and Lumonic, a private credit portfolio management platform. Additionally, on September 23, 2025, Morningstar announced its agreement to acquire the Center for Research in Security Prices (CRSP) for approximately $375 million, which is expected to close in the fourth quarter of 2025. These acquisitions are aimed at enhancing Morningstar's data offerings and analytics capabilities.
Operationally, Morningstar reported a total employee headcount of 5,000 as of September 30, 2025, reflecting a strategic focus on talent acquisition to support its growth initiatives. The company also noted an increase in customer engagement, with a rise in the number of users across its platforms. Morningstar's international revenue accounted for 29% of total revenue in the third quarter, with significant contributions from the United Kingdom and Continental Europe, indicating successful geographic expansion.
Looking ahead, Morningstar remains optimistic about its growth trajectory, driven by ongoing demand for its investment data and analytics solutions. The company anticipates continued revenue growth from its core segments and expects to leverage its recent acquisitions to enhance its market position. Morningstar's management emphasized a commitment to maintaining a strong balance sheet and liquidity, with plans to utilize cash reserves for future growth opportunities and shareholder returns, including a new share repurchase program authorized for up to $1 billion.
About Morningstar, Inc.
Morningstar, Inc. is a global provider of independent investment data, research, ratings, and analytics across asset classes and markets. Its core segments include data and analytics, investment management, credit ratings, ESG ratings, and indexes. Serving individual investors, financial advisors, asset managers, and institutions, it offers tools, portfolio solutions, and proprietary indexes to support informed investment decisions and enhance market transparency.
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