SS&C Technologies Q1 2025 presentation: Revenue up 5.5%, EPS grows 8.3%

SS&C Technologies Holdings Inc (NASDAQ:SSNC) reported solid first-quarter 2025 results on April 24, with adjusted revenue increasing 5.5% year-over-year to $1.51 billion and adjusted diluted earnings per share rising 8.3% to $1.44.

Executive Summary

SS&C’s Q1 2025 performance demonstrated continued growth across most business segments, with particularly strong results in its financial services operations. The company generated substantial cash flow that enabled significant debt reduction and shareholder returns through stock repurchases and dividends.

"Our Q1 2025 results reflect the continued strength of our diversified business model and our focus on operational excellence," said Bill Stone, Chairman and CEO of SS&C Technologies, in the company’s earnings presentation.

As shown in the following quarterly highlights, SS&C achieved balanced growth across key financial metrics:

The company’s adjusted organic revenue growth reached 5.1% for the quarter, with financial services recurring revenue growing at an even stronger 5.9%. GAAP net income attributable to SS&C rose 35.2% to $213.0 million, while adjusted consolidated EBITDA increased 6.3% to $591.9 million.

Detailed Financial Analysis

SS&C’s financial performance showed improvement across multiple metrics compared to the same period last year. The company maintained strong profitability with adjusted consolidated EBITDA margin expanding to 39.1%, up from 38.8% in Q1 2024.

The following table highlights key financial metrics and their year-over-year changes:

Operating cash flow saw a particularly impressive increase, rising 50.8% to $272.2 million for the three months ended March 31, 2025, compared to $180.5 million in the same period of 2024. This robust cash generation supported the company’s capital allocation strategy, which included significant shareholder returns and debt reduction.

The company’s quarterly and annual revenue and EBITDA trends demonstrate consistent growth over time, as illustrated in the following chart:

SS&C’s adjusted net income and earnings per share have also shown steady improvement over recent quarters, positioning the company well for continued growth throughout 2025:

Segment Performance

SS&C’s business segments showed varying growth rates in Q1 2025. The standout performer was the GlobeOp segment, which achieved 10.3% growth compared to the 2024 revenue base of $1.57 billion. Other segments showed more moderate growth, with Wealth and Investment Technologies growing at 3.9%, Intralinks at 3.4%, and GIDS and related services at 3.2%.

The company’s Intelligent Automation & Analytics segment grew at a more modest 2.3%, while the Healthcare segment was the only area to show a slight decline of 0.4%.

SS&C’s alternative assets under administration continued their steady upward trajectory, reaching $2.502 trillion in Q1 2025, up from $2.499 trillion in Q4 2024 and $2.400 trillion in Q1 2024.

Capital Allocation & Balance Sheet

SS&C maintained a disciplined approach to capital allocation in Q1 2025, balancing shareholder returns with debt reduction. The company paid down $155.0 million in debt during the quarter, bringing its net leverage ratio to 2.74 times consolidated EBITDA.

The following chart illustrates how SS&C allocated its $430 million in capital during Q1 2025:

Nearly half (48%) of capital was directed toward share repurchases, with the company buying back 2.4 million shares for $206.9 million at an average price of $87.21 per share. Debt paydown accounted for 36% of capital allocation, while dividends represented 15%. In total, 63% of capital was returned directly to shareholders.

The company paid $62.2 million in common stock dividends during the three months ended March 31, 2025, continuing its commitment to shareholder returns.

Forward Guidance

Looking ahead, SS&C provided guidance for both the second quarter and full year 2025. For Q2 2025, the company expects adjusted revenues between $1.489 billion and $1.529 billion, with organic growth of approximately 2.5% at the midpoint.

For the full year 2025, SS&C projects adjusted revenues of $6.118 billion to $6.238 billion, representing organic growth of 4.4% at the midpoint. Adjusted diluted earnings per share attributable to SS&C is expected to be between $5.68 and $6.00 for the year.

The following table provides a comprehensive overview of SS&C’s guidance for Q2 and full-year 2025:

The company’s projected adjusted consolidated EBITDA margin for full-year 2025 is 39.3% (at the midpoint of guidance), which would represent a slight improvement from the 39.1% achieved in Q1 2025 and the 38.8% for full-year 2024.

Cash from operating activities is expected to be between $1.458 billion and $1.558 billion for the full year, with capital expenditures projected at 4.0% to 4.4% of revenue.

Market Context

SS&C Technologies shares closed at $76.37 on April 24, 2025, up 1.39% for the day. The stock is trading in the upper half of its 52-week range of $60.01 to $89.73.

The company’s Q1 2025 results continue the positive momentum seen in previous quarters. In Q3 2024, SS&C reported a 7.3% increase in revenue and a 10.3% rise in adjusted diluted EPS. While the current quarter’s growth rates are slightly lower at 5.5% for revenue and 8.3% for EPS, they still represent solid performance in a competitive financial technology landscape.

SS&C’s focus on maintaining high client retention rates (97.1% in Q1 2025) and expanding its alternative assets under administration (now at $2.502 trillion) positions the company well for sustainable growth in the financial services technology sector.

Full presentation:

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