Thu, May 1, 4:34 PM (79 days ago)
**Morningstar, Inc. (MORN) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $581.9 million, up 7.2% YoY (organic growth of 9.1%). - **Operating Income:** $114.1 million, up 23.2% YoY. - **Operating Margin:** 19.6%, up 2.5 percentage points YoY. - **Net Income:** $78.5 million, up 22.2% YoY. - **EPS (diluted):** $1.82, up 22.2% YoY. - **Cash Flow from Operations:** $91.0 million, down 2.8% YoY. - **Free Cash Flow:** $58.8 million, down 1.2% YoY. **Profit Margins:** - **Gross Margin:** 60.2% (Cost of Revenue: $231.4 million). - **Operating Margin:** 19.6%. - **Net Margin:** 13.5%. **Cash Flow:** - **Operating Cash Flow:** $91.0 million. - **Investing Cash Flow:** -$70.7 million (includes acquisitions). - **Financing Cash Flow:** -$24.1 million (includes dividends and share repurchases). **Earnings Changes:** - **Revenue Growth:** Driven by strong demand for PitchBook and Morningstar Direct Platform products. - **Operating Income Growth:** Reflects revenue growth and controlled operating expenses. **Quarterly Performance Discussion:** - **Revenue Growth:** License-based (4.4% YoY), Asset-based (11.3% YoY), Transaction-based (19.2% YoY). - **Segment Performance:** PitchBook and Morningstar Credit showed significant growth. - **Geographical Performance:** Strong demand in the United States and Europe. **Trends & Uncertainties:** - **Economic Conditions:** Potential impacts from global trade policies and market volatility. - **Regulatory Environment:** Ongoing scrutiny and potential changes in laws affecting regulated businesses. - **Technological Risks:** Integration of AI and potential legal risks associated with it. **Future Operations Impact:** - **Acquisitions:** Dealview Technologies Limited and Lumonic Inc. to enhance product offerings. - **Share Repurchase:** $109.6 million spent in Q1 2025, $377.4 million remaining. - **Dividends:** $19.5 million paid in Q1 2025. **Ticker:** MORN **Full Name:** Morningstar, Inc.