Morningstar beats Q1 earnings estimates, shares rise

Published 30/04/2025, 22:38
Morningstar beats Q1 earnings estimates, shares rise

Investing.com -- Morningstar , Inc. (NASDAQ:MORN), a leading provider of independent investment insights, reported first-quarter 2025 earnings that surpassed analyst expectations, driving its shares up 4.1% in after-hours trading.

The company posted adjusted earnings per share of $2.23, beating the analyst consensus of $1.79 by $0.44. Revenue for the quarter came in at $581.9 million, slightly below the consensus estimate of $589.07 million, but representing a 7.2% increase YoY. Organic revenue growth was even stronger at 9.1%.

Morningstar’s first-quarter operating income jumped 23.2% to $114.1 million, while adjusted operating income rose 22.2% to $135.4 million. The company’s operating margin expanded to 19.6% from 17.1% in the same quarter last year.

"Growth in PitchBook and Morningstar Credit contributed to a strong start to 2025," said Kunal Kapoor, Morningstar’s chief executive officer. "We are supporting their growth and expanding our private credit and structured finance offerings with the acquisitions of Lumonic and DealX."

PitchBook, a key growth driver, saw revenue increase 10.9% to $163.7 million, with licensed users growing 13.6% YoY. Morningstar Credit posted impressive growth, with revenue up 21.1% to $73.0 million.

Despite the strong results, Kapoor noted a cautious approach due to recent market volatility and increased economic uncertainty. The company accelerated its stock repurchases in the quarter, buying back 368,199 shares for $109.6 million.

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

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