Morningstar, Inc. (NASDAQ: MORN) has reported its first-quarter 2025 financial results, showing strong growth in various metrics compared to the prior-year period.
In the first quarter of 2025, Morningstar reported revenue increased by 7.2% to $581.9 million, with organic revenue growing by 9.1% compared to the prior-year period. Operating income surged by 23.2% to $114.1 million, and adjusted operating income increased by 22.2%. Diluted net income per share also saw a significant increase of 22.1% to $1.82, while adjusted diluted net income per share rose by 28.9% to $2.23.
The company's cash provided by operating activities decreased by 2.8% to $91.0 million, and free cash flow decreased by 1.2% to $58.8 million. However, Morningstar accelerated its stock repurchases in the quarter, with share repurchases settling at 368,199 shares for $109.6 million.
Looking at the performance of Morningstar's different segments, the Morningstar Direct platform contributed $199.2 million to consolidated revenue, with revenue increasing by 1.3% compared to the prior-year period, or 4.2% on an organic basis. The platform's adjusted operating income decreased by 4.5% to $87.1 million, and adjusted operating margin decreased by 2.7 percentage points to 43.7%.
PitchBook contributed $163.7 million to consolidated revenue and $16.1 million to consolidated revenue growth, with revenue increasing by 10.9% on a reported and 11.1% on an organic basis compared to the prior-year period. Additionally, PitchBook's adjusted operating income increased by 30.8% to $52.3 million, and adjusted operating margin increased by 4.8 percentage points to 31.9%.
Morningstar Credit contributed $73.0 million to consolidated revenue and $12.7 million to consolidated revenue growth, with revenue increasing by 21.1% on a reported and 23.2% on an organic basis compared to the prior-year period. Morningstar Credit's adjusted operating income increased by 74.0% to $21.4 million, and adjusted operating margin increased by 8.9 percentage points to 29.3%.
Morningstar Wealth contributed $61.3 million to consolidated revenue and $2.3 million to consolidated revenue growth, with revenue increasing by 3.9% compared to the prior-year period, or 7.9% on an organic basis. The segment's adjusted operating loss decreased to $0.8 million, and adjusted operating margin improved compared to the prior-year period.
Morningstar Retirement contributed $32.9 million to consolidated revenue and $4.5 million to consolidated revenue growth, with revenue increasing by 15.8% on a reported and organic basis compared to the prior-year period. Morningstar Retirement's adjusted operating income increased by 2.8% to $14.6 million.
The company's balance sheet and capital allocation revealed that as of March 31, 2025, Morningstar had cash, cash equivalents, and investments totaling $559.2 million and $803.7 million of debt. During the quarter, the company increased its debt by $105.1 million, net, repurchased $109.6 million of its shares, paid $38.5 million related to previously announced acquisitions, and paid $19.5 million in dividends.
Today the company's shares have moved 0.8% to a price of $284.72. For more information, read the company's full 8-K submission here.
