MSCI (MSCI) Q1 FY25 earnings call

Earnings call· Mar 2025 (Q1 FY25)· Financials· Apr 22, 2025

Source: earnings call transcript

MSCI delivered robust financial results in Q1 FY25, marked by strong organic revenue and adjusted EPS growth, alongside high retention rates across key segments. Despite a decline in new recurring subscription sales and muted activity in Real Assets, the company emphasized its resilient "all-weather franchise" and mission-critical solutions, particularly valuable during periods of market uncertainty and volatility. Strategic partnerships and product development are focused on customization and private asset transparency.

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MSCI operating KPIs by quarter

MSCI operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	This call Mar 2025 Q1 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Retention rate	93% In the fourth quarter, our operating metrics included organic subscription run rate growth of 8%, excluding FX headwinds and 7% on a reported basis, asset-based fee run rate growth of 15% and a retention rate of 93%. Source: earnings call transcript	95%+ More specifically, MSCI delivered a retention rate of over 95%, organic subscription run rate growth of 8% and asset-based fee gross revenue growth of 18%. Source: earnings call transcript	—	—	—	95%+ MSCI achieved organic subscription run rate growth of over 8% with a retention rate of over 95%. Source: earnings call transcript	95% We also posted subscription run rate growth of 9% after adding nearly [ $55 million ] in recurring net new sales, and we delivered a retention rate of 95%, an improvement of 30 basis points from Q3 of last year. Source: earnings call transcript	—
Assets under management (AUM) Direct indexing	<$130B We also saw direct indexing AUM based on MSCI Indices increased by 31% to nearly $130 billion. Source: earnings call transcript	$131B+ Meanwhile, direct indexing AUM based on MSCI indexes increased by 30% to more than $131 billion. Source: earnings call transcript	—	—	—	—	—	—
Retention rate Asset managers	—	96% We achieved a retention rate of 96% with asset managers in Q1, up from 95% a year earlier. Source: earnings call transcript	~97% But generally, overall, we're seeing quite stable results, and we are also pretty encouraged by the solid retention rate with asset managers, which is about 97% across the company in the third quarter. Source: earnings call transcript	—	—	—	—	—
Retention rate Index	95% An overall retention rate and index was 95%, with a retention rate of almost 96% with asset managers. Source: earnings call transcript	96.5% So within Index, it was 96.5% and within Analytics, 95.5%. Source: earnings call transcript	<96% And the Index retention rate remained durable at nearly 96%. Source: earnings call transcript	95% Index retention remained strong at nearly 96% for the full year and 95% for the quarter. Source: earnings call transcript	<97% Index retention was nearly 97% for the quarter, further improving from last year's levels. Source: earnings call transcript	97%+ In index, we delivered 41% growth in recurring net new sales, 17% growth in total run rate more than 11% growth in subscription run rate and a retention rate of more than 97%. Source: earnings call transcript	97%+ Powerful indexation trends drove double-digit subscription growth across hedge funds, banks and brokers, wealth managers and asset owners of 32%, 15%, 10% and 10%, respectively, and the retention rate was over 97% across index, including a retention rate of 98% with asset managers. Source: earnings call transcript	—
Retention rate ESG and Climate	93%+ Our retention rate for the segment was over 93% with most of the cancels reflecting client down sales and not outright terminations. Source: earnings call transcript	94.5% The retention rate of 94.5% for the segment highlights that our Sustainability and Climate tools remain mission-critical. Source: earnings call transcript	<94% The Sustainability and Climate retention rate was almost 94%, slightly higher than last year's level of 93% and reflecting the must-have nature of our tools. Source: earnings call transcript	—	—	—	—	—
Assets under management (AUM) Fixed Income ETF	—	$76B+ Fixed Income ETF AUM linked to MSCI and partner indexes is now over $76 billion, growing 20% from a year ago. Source: earnings call transcript	~$90B On the fixed income side, the AUM and ETFs linked to fixed income indexes or fixed income indexes and partnership indexes is around $90 billion. Source: earnings call transcript	—	—	—	—	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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