MSCI Reports 13.6% Increase in Compensation Costs

ased 13.6% for the nine months ended September 30, 2025, primarily driven by increases in compensation and benefits costs as a result of increased headcount costs as well as higher severance costs.General and AdministrativeG&A expenses increased 0.6% for the three months ended September 30, 2025, primarily driven by increases in compensation and benefits costs as a result of increased headcount costs as well as higher severance costs. The decrease in G&A expenses was primarily due to lower professional fees and travel expenses. G&A expenses decreased 0.5% for the nine months ended September 30, 2025, primarily driven by lower professional fees and travel expenses.Amortization of Intangible AssetsAmortization of intangible assets decreased 2.4% for the three months ended September 30, 2025, primarily due to lower amortization of intangible assets related to acquisitions. Amortization of intangible assets increased 6.0% for the nine months ended September 30, 2025, primarily due to higher amortization of intangible assets related to acquisitions.Depreciation and Amortization of Property, Equipment and Leasehold ImprovementsDepreciation and amortization of property, equipment and leasehold improvements increased 34.0% and 26.1% for the three and nine months ended September 30, 2025, respectively, primarily due to higher depreciation and amortization of property, equipment and leasehold improvements resulting from increased capital expenditures and capitalized software costs.Interest Expense, NetInterest expense, net decreased 2.7% and 2.8% for the three and nine months ended September 30, 2025, respectively, primarily due to lower average borrowings partially offset by higher average interest rates and lower average interest income.Income Tax ExpenseIncome tax expense increased to $60.7 million for the three months ended September 30, 2025, compared to $59.9 million for the three months ended September 30, 2024. The effective tax rate was 17.7% for the three months ended September 30, 2025, compared to 15.5% for the three months ended September 30, 2024. Income tax expense increased to $167.4 million for the nine months ended September 30, 2025, compared to $138.6 million for the nine months ended September 30, 2024. The effective tax rate was 17.5% for the nine months ended September 30, 2025, compared to 15.5% for the nine months ended September 30, 2024.Liquidity and Capital ResourcesOur principal sources of liquidity are cash and cash equivalents, short-term investments, and cash generated from operations. As of September 30, 2025, our cash and cash equivalents and short-term investments totaled $1.9 billion, compared to $1.4 billion as of December 31, 2024. Cash, cash equivalents and short-term investments held by our non-U.S. subsidiaries were $1.4 billion as of September 30, 2025, compared to $1.0 billion as of December 31, 2024. We believe that our cash, cash equivalents and short-term investments, together with cash generated from operations, will be sufficient to meet our operating, investing and financing requirements for at least the next 12 months.29Table of ContentsNet cash provided by operating activities was $1.0 billion for the nine months ended September 30, 2025, compared to $1.0 billion for the nine months ended September 30, 2024. The change in net cash provided by operating activities was primarily due to higher cash collections from clients, partially offset by higher income tax payments.Net cash used in investing activities was $224.4 million for the nine months ended September 30, 2025, compared to $192.6 million for the nine months ended September 30, 2024. The change in net cash used in investing activities was primarily due to higher additions to property, equipment and leasehold improvements and higher capitalized software costs, partially offset by lower purchases of short-term investments and lower cash payments for acquisitions.Net cash used in financing activities was $1.3 billion for the nine months ended September 30, 2025, compared to $1.2 billion for the nine months ended September 30, 2024. The change in net cash used in financing activities was primarily due to higher cash payments for repurchases of common stock, partially offset by higher proceeds from the issuance of common stock and lower cash payments of finance lease liabilities.Contractual Obligations and Commercial CommitmentsAs of September 30, 2025, there have been no material changes outside the ordinary course of business to our contractual obligations and commercial commitments as disclosed in our Form 10-K for the fiscal year ended December 31, 2024.Off-Balance Sheet ArrangementsAs of September 30, 2025, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.Item 3. Quantitative and Qualitative Disclosures About Market RiskAs of September 30, 2025, there have been no material changes outside the ordinary course of business to our quantitative and qualitative disclosures about market risk as disclosed in our Form 10-K for the fiscal year ended December 31, 2024.30 Following these announcements, the company's shares moved 0.84%, and are now trading at a price of $546.86. For the full picture, make sure to review MSCI's 10-Q report.