SS&C Technologies Reports 5.5% Revenue Growth to $1.514 Billion in Q1 2025

SS&C Technologies Holdings, Inc. reported a revenue increase of 5.5% for the first quarter of 2025, reaching $1.514 billion compared to $1.435 billion in the same period last year. The growth was primarily driven by a $72.8 million increase in organic revenue, particularly from its SS&C GlobeOp fund administration and Wealth and Investment Technologies segments. Additionally, the company benefited from $13 million in revenue contributions from recent acquisitions, including FPS Trust Company, which was acquired in February 2025. However, this growth was partially offset by a $6.9 million negative impact from foreign currency translation.

The company's net income for the quarter was $213.2 million, a significant increase from $158 million in the prior year, resulting in diluted earnings per share of $0.84, up from $0.62. The increase in profitability was attributed to higher revenues and a reduction in interest expenses, which fell to $105.2 million from $116 million year-over-year. The effective tax rate also decreased to 18.4% from 29.7%, primarily due to the recognition of windfall tax benefits from stock awards and changes in the composition of income before taxes.

In terms of operational metrics, SS&C's total assets increased to $20.405 billion as of March 31, 2025, up from $19.045 billion at the end of 2024. The company reported a significant rise in client funds obligations, which reached $4.560 billion, reflecting an increase in client balances. The total employee headcount rose to 12,500, up from 12,200, indicating ongoing investment in human resources to support business growth. The company also repurchased 2.4 million shares of common stock for approximately $206.9 million during the quarter, as part of its ongoing stock repurchase program.

Looking ahead, SS&C Technologies remains optimistic about its growth trajectory, citing strong demand for its software-enabled services and continued expansion in key markets. The company anticipates that its recent acquisitions will further enhance its service offerings and market position. However, management acknowledged potential risks from macroeconomic factors, including interest rate fluctuations and foreign currency volatility, which could impact future performance. The company plans to maintain its focus on organic growth while strategically pursuing additional acquisition opportunities to bolster its market presence.