Fri, Apr 4, 10:01 AM (23 days ago)
**FactSet Research Systems Inc. (FDS) Q2 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $570.7 million, up 4.5% YoY (organic growth 4.0%, acquisitions 0.7%, FX -0.2%). - **Operating Income:** $185.5 million, up 2.0% YoY. - **Net Income:** $144.9 million, up 2.8% YoY. - **EPS:** $3.76, up 3.0% YoY. - **Operating Margin:** 32.5%, down from 33.3% YoY. - **Cash Flow from Operations:** $260.3 million, down from $298.9 million YoY. - **Free Cash Flow:** $210.7 million, down from $260.6 million YoY. **Segment Performance:** - **Americas:** Revenues up 4.8% to $369.7 million, operating income down 10.5% to $73.1 million. - **EMEA:** Revenues up 3.0% to $143.4 million, operating income up 12.3% to $70.6 million. - **Asia Pacific:** Revenues up 6.4% to $57.6 million, operating income up 11.8% to $41.8 million. **Trends & Uncertainties:** - **Revenue Growth:** Driven by workstations and CGS, with organic ASV up 4.1%. - **Operating Margin:** Decreased due to higher professional fees and computer-related expenses. - **Cash Flow:** Impacted by working capital requirements and capital expenditures. - **Acquisitions:** LiquidityBook and Irwin acquisitions completed, adding new capabilities. - **Foreign Exchange:** Hedging in place for primary currency exposures. **Future Operations Impact:** - **Growth Strategy:** Focus on data expansion, workflow integration, and AI innovation. - **Liquidity:** Strong cash position and available credit facilities to support growth. - **Share Repurchases:** $186.9 million remaining authorized under the share repurchase program. - **Dividends:** $78.8 million paid in H1 2025, with future payments subject to board approval. **Management's Outlook:** - **Revenue Growth:** Expected to continue, driven by organic growth and acquisitions. - **Operating Margin:** May face pressure from increased expenses, but growth in revenues should help. - **Cash Flow:** Expected to improve with better working capital management and controlled capital expenditures. - **Acquisitions:** May pursue further strategic acquisitions to enhance capabilities. - **Foreign Exchange:** Continued hedging to manage currency risks. **Risks:** - **Economic Downturn:** Could impact client spending and revenue growth. - **Currency Fluctuations:** May affect revenues and operating income. - **Competition:** Intensifying competition could pressure market share and pricing. - **Regulatory Changes:** New regulations could impact operations and financial performance.