Morningstar, Inc. has provided an update on various aspects of its business in response to investor questions through November 5, 2025. In the third quarter of 2025, the company added 90 full-time equivalent employees, primarily in the Morningstar Credit and PitchBook segments. This increase was offset by lower headcount in the Morningstar Wealth division due to asset transitions and the sunsetting of Morningstar Office.
The company expressed optimism about the medium-term revenue growth opportunities for its International Wealth Platform, citing market share gains in the UK and success in cross-selling other Morningstar models and funds to existing clients on the platform. While Morningstar did not provide specific guidance on revenue or margins, it reported aggregated global assets under management and advisement for Morningstar Model Portfolios and the International Wealth Platform.
Regarding the Investment Management segment, Morningstar explained that the implied basis point fee fell in Q3 2025 due to the sale of US TAMP assets in December 2024, which resulted in the company no longer collecting platform fees. Additionally, the company is entitled to a $35 million payment from AssetMark based on the net flows of transitioned customers through December 1, 2025, which will be recorded in Q4 2025 if realizable.
Morningstar emphasized its significant data moat across its business and highlighted its focus on delivering differentiated data and intellectual property, accelerating speed-to-insights through AI-powered products, and boosting operational excellence and scalability across teams.
PitchBook, a subsidiary of Morningstar, mentioned that its licensed user count declined in Q3 2025, largely due to the rationalization of licenses for certain large customers. This rationalization resulted in a 2.5% decline in licensed user count compared to Q2 2025. The company attributed the revenue growth deceleration to increased churn and pressure on expansion, particularly in the corporate client segment.
Morningstar also addressed its capital allocation strategy, stating that share repurchases represent an important component of its approach to capital allocation. The company had repurchased 1,873,729 shares year-to-date through October 28, 2025, totaling $487.0 million.
The market has reacted to these announcements by moving the company's shares 1.6% to a price of $213.55. If you want to know more, read the company's complete 8-K report here.
