Morningstar (MORN) Q4 FY2025 earnings: revenue $641 million, up 8.5% on the year

Morningstar, Inc. (MORN) reported revenue of $641 million for Q4 FY2025, the quarter ended 31 December 2025, up 8.5% on the same quarter a year earlier. Net income was $115 million, down 1.5% on the year, and diluted earnings per share $2.83. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2026.

Revenue$641 millionup 8.5%

Net income$115 milliondown 1.5%

Diluted EPS$2.83

QuarterQ4 FY2025ended 31 December 2025

The quarter, against the one before and a year earlier

Line	Q4 FY2025	Q3 FY2025	Q4 FY2024	Change on the year
Revenue	641	617	591	+8.5%
Cost of revenue	249	242	232	+7.3%
Gross profit	392	376	359	+9.2%
Gross margin	61.1%	60.9%	60.7%
Operating income	160	128	168	-5.1%
Operating margin	24.9%	20.7%	28.5%
Pre-tax income	151	123	163	-7.4%
Income tax	36.4	31.4	33.9	+7.4%
Effective tax rate	24.1%	25.5%	20.8%
Net income	115	91.6	117	-1.5%
Net margin	18.0%	14.8%	19.8%
Diluted EPS	$2.83	$2.17	$2.71	+4.4%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2025	Q3 FY2025	Q4 FY2024	Change on the year
Operating cash flow	204	196	153	+33.0%
Capital expenditure	42.7	35.6	40.6	+5.2%
Free cash flow	161	160	113	+43.0%
Free cash flow margin	25.2%	25.9%	19.1%
Cash from investing	-11.7	-33.0	24.1	n/a
Cash from financing	-194	-188	-199	n/a
Depreciation and amortisation	47.1	47.0	48.4	-2.7%
Share-based compensation	10.3	18.6	15.9	-35.2%
Buybacks	395	170	11.6	+3307.8%
Dividends paid	18.9	19.2	17.3	+9.2%
Dividend per share	n/a	$0.46	n/a	n/a
Diluted shares, weighted	41m	42m	43m	-5.6%
Shares outstanding at period end	40m	42m	43m	-7.3%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2025	Q3 FY2025	Q4 FY2024	Change on the year
Shareholders' equity	1,222	1,514	1,619	-24.5%
Short-term borrowings	0.0	n/a	n/a	n/a
Debt	1,073	849	699	+53.5%
Operating lease liabilities	147	154	170	-13.9%
Other liabilities	1,149	1,041	1,061	+8.3%
Total liabilities and equity	3,590	3,558	3,549	+1.2%
Fixed assets	232	226	219	+5.9%
Goodwill	1,611	1,615	1,562	+3.1%
Intangible assets	379	396	409	-7.2%
Investments	54.2	40.3	48.3	+12.2%
Cash and equivalents	474	474	503	-5.6%
Receivables	390	364	358	+9.0%
Other assets	449	443	450	-0.2%
Total assets	3,590	3,558	3,549	+1.2%

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	516	539	543	572	569	591	582	605	617	641	645	663
Cost of revenue	203	205	218	223	223	232	231	231	242	249	239	239
Gross profit	313	333	325	349	347	359	350	374	376	392	406	424
Gross margin	61%	62%	60%	61%	61%	61%	60%	62%	61%	61%	63%	64%
Operating income	70.0	94.4	92.6	108	116	168	114	125	128	160	156	161
Operating margin	14%	18%	17%	19%	20%	28%	20%	21%	21%	25%	24%	24%
Pre-tax income	57.4	90.3	87.0	89.5	152	163	108	116	123	151	142	147
Tax rate	29%	16%	24%	21%	19%	21%	25%	23%	26%	24%	24%	26%
Net income	39.1	73.5	64.2	69.1	120	117	78.5	89.0	91.6	115	107	108
Net margin	8%	14%	12%	12%	21%	20%	13%	15%	15%	18%	17%	16%
Diluted EPS	$0.91	$1.71	$1.49	$1.60	$2.77	$2.71	$1.82	$2.09	$2.17	$2.83	$2.73	$2.83
Operating cash flow	131	138	93.6	153	192	153	91.0	99.0	196	204	91.5	156
Capital expenditure	29.3	30.0	34.1	31.9	36.1	40.6	32.2	36.6	35.6	42.7	37.9	33.2
Free cash flow	101	108	59.5	121	156	113	58.8	62.4	160	161	53.6	122
Buybacks	0.0	0.0	0.0	0.0	0.0	11.6	110	112	170	395	300	100
Dividends paid	16.0	16.0	17.3	17.3	17.4	17.3	19.5	19.3	19.2	18.9	19.9	19.0
Shares outstanding	43m	43m	43m	43m	43m	43m	43m	42m	42m	40m	38m	38m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2025, filed 13 February 2026, accession 0001289419-26-000013: the filing on EDGAR. All of Morningstar, Inc.'s filings: EDGAR company page.

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