SS&C Technologies Q2 2025 slides: revenue up 5.9%, announces $1B Calastone deal

Introduction & Market Context

SS&C Technologies Holdings Inc (NASDAQ:SSNC) released its second quarter 2025 earnings presentation on July 23, 2025, revealing 5.9% revenue growth and the announcement of a significant acquisition. The financial software and services provider reported adjusted revenue of $1.54 billion, continuing its growth trajectory from the first quarter while maintaining strong profitability metrics.

The company’s stock closed at $83.47 on the day of the announcement, representing a modest gain of 0.19% or $0.16. SS&C has seen its share price trade between $66.83 and $89.73 over the past 52 weeks, with the current price sitting in the upper half of that range.

Quarterly Performance Highlights

SS&C reported Q2 2025 adjusted revenue growth of 5.9% year-over-year, reaching $1.54 billion. The company’s adjusted organic revenue growth was 3.5%, showing a slight deceleration from the 5.1% organic growth reported in Q1 2025. Financial services recurring revenue growth came in at 3.9%.

As shown in the following financial highlights table, SS&C delivered solid improvements across key metrics compared to the same period last year:

The company achieved record adjusted consolidated EBITDA attributable to SS&C of $600.4 million for Q2 2025, representing a 7.4% increase from the prior year. The adjusted consolidated EBITDA margin improved to 39.0%, up 50 basis points from 38.5% in Q2 2024, demonstrating the company’s continued focus on operational efficiency.

Adjusted diluted earnings per share attributable to SS&C was $1.45, up 9.8% compared to $1.32 in the same quarter last year. This EPS growth continues the positive trend seen in Q1 2025, when the company reported $1.44 per share, exceeding analyst expectations of $1.41 at that time.

The following chart illustrates SS&C’s consistent revenue and EBITDA growth trajectory over recent quarters:

Strategic Initiatives

The most significant strategic announcement in the presentation was SS&C’s planned acquisition of Calastone, a global funds network, for approximately $1.03 billion. The acquisition is expected to close in Q4 2025 and represents a major expansion of SS&C’s capabilities and geographic reach.

As detailed in the presentation, Calastone connects approximately 4,500 network participants across 57 markets and is expected to contribute to SS&C’s offerings in ETF servicing, digital assets, and money market products:

The strategic rationale for the acquisition includes geographic expansion in Latin America, India, Australia, and South Africa, as well as extending Calastone’s network to retirement, pensions, wealth, and alternatives. With 2024 revenue of $109 million and 250 employees, Calastone is expected to deliver 10%+ revenue growth and 40%+ EBITDA margins, making it accretive to SS&C’s earnings within 12 months of closing.

Segment Performance Analysis

SS&C’s business segments showed varied performance in Q2 2025. The company’s GlobeOp business, which includes hedge fund administration, private markets administration, and retail alternatives, demonstrated strong growth of 7.3%, though this represented a slowdown from the 10.3% growth seen in Q1 2025.

The following table breaks down adjusted organic growth by business segment:

Notable in the segment breakdown is the performance of Intralinks, which declined 4.5% in Q2 2025 after posting 3.4% growth in Q1. The company attributed this decline to reduced M&A deal count during the quarter. Meanwhile, private markets continued to show double-digit growth, highlighting SS&C’s strong position in this expanding sector.

The company’s alternative assets under administration reached $2,547 billion in Q2 2025, continuing a steady upward trend:

Capital Allocation & Shareholder Returns

SS&C maintained its focus on shareholder returns during Q2 2025, with 88% of capital allocation going directly to shareholders through share repurchases and dividends. The company repurchased 3.4 million shares for $269.0 million at an average price of $77.99 per share, while paying $60.9 million in common stock dividends.

The company’s capital allocation strategy is illustrated in the following chart:

SS&C also continued to strengthen its balance sheet, paying down $35.0 million of debt in Q2 2025. The company reported a net leverage ratio of 2.72x and a secured net leverage ratio of 1.55x LTM consolidated EBITDA attributable to SS&C of $2,358.4 million.

Net cash generated from operating activities was $645.1 million for the six months ended June 30, 2025, representing a 14.1% increase compared to the same period in 2024. The Q2 2025 cash flow conversion rate was strong at 101.9%.

Forward Guidance & Outlook

Looking ahead, SS&C provided guidance for both Q3 2025 and the full fiscal year. For Q3, the company expects adjusted revenues between $1,525.0 million and $1,565.0 million, with organic growth at approximately 4.5%. Adjusted diluted earnings per share is projected to be between $1.44 and $1.50.

The full-year guidance is detailed in the following table:

For the full year 2025, SS&C forecasts adjusted revenues between $6,143.0 million and $6,243.0 million, with organic growth of 4.5%. Adjusted diluted earnings per share is expected to range from $5.82 to $6.06, while cash from operating activities is projected to be between $1,479.0 million and $1,559.0 million.

The guidance suggests continued steady growth for SS&C, with potential acceleration in the second half of the year as the company integrates new acquisitions and expands its market presence. The projected organic growth rate of 4.5% for both Q3 and full-year 2025 represents an improvement from the 3.5% reported in Q2, indicating management’s confidence in the company’s growth trajectory.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.