MOODYS CORP /DE/

For the period ended Jun 30, 2025. Filed Jul 24, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Jul 24, 2025

MCO$511.08+1.1%Stored close · as of Nov 9, 2026

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Contents

Item 2. Results of Operations

RESULTS OF OPERATIONS

The following footnotes are applicable throughout the discussion of the Company's results of operations:

(1)Refer to the section entitled "Non-GAAP Financial Measures" of this MD&A for the definition and methodology that the Company utilizes to calculate this metric.

(2) Refer to the section entitled "Key Performance Metrics" of this MD&A for the definition and methodology that the Company utilizes to calculate this metric.

Three months ended June 30, 2025 compared with three months ended June 30, 2024

Executive Summary

The following table provides an executive summary of key operating results for the quarter ended June 30, 2025. Following this executive summary is a more detailed discussion of the Company’s operating results as well as a discussion of the operating results of the Company’s reportable segments.

	Three Months Ended June 30,
Financial measure: · 2025 · 2024 · % Change Favorable(Unfavorable) · Insight and Key Drivers of Change Compared to Prior Year
Moody's total revenue	$1,898	$1,817	4%		— reflects revenue growth in both segments
MA external revenue	$888	$802	11%		— sustained demand for KYC and insurance offerings and SaaS-based banking solutions;— continued demand for credit research product offerings; and— ongoing strong demand for ratings data feeds— Organic constant currency revenue(1) growth was 7% and ARR(2) increased 8%
MIS external revenue	$1,010	$1,015	—%		— revenue was generally in line with a strong prior year comparative, primarily reflecting issuance declines in bank loans; offset by higher investment grade issuance and monitoring fees— Organic constant currency revenue(1) declined 2%.
Total operating and SG&A expenses	$932	$915	(2%)		— higher salaries and benefits reflecting an increase in headcount as well as annual salary increases in both segments; and— unfavorable changes in FX translation rates; partially offset by— a decrease in incentive compensation, which aligns with actual/projected financial and operational performance
Depreciation and amortization	$120	$110	(9%)		— amortization of recently acquired intangible assets; and— higher amortization of internally developed software, primarily related to the development of MA SaaS solutions
Restructuring	$27	$2	NM	— relates to the Company's restructuring programs. The Strategic and Operational Efficiency Restructuring Program is more fully discussed in Note 10 to the consolidated financial statements
Charges related to asset abandonment	$1	$15	93%		— costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, more fully discussed in Note 12 to the consolidated financial statements
Total non-operating (expense) income, net	$(46)	$(56)	18%		— lower interest expense on borrowings reflecting the repayment of the $700M of Senior Notes in the first quarter of 2025; and — an increase in FX gains; partially offset by— a decrease in interest income reflecting lower cash and short-term investment balances and lower interest rates
Operating margin	43.1%	42.7%	40	BPS	— Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth coupled with benefits from the Company's restructuring programs and disciplined cost management
Adjusted Operating Margin(1)	50.9%	49.6%	130	BPS
ETR	25.0%	23.1%	190	BPS	— mainly attributable to higher non-U.S. and state income taxes, coupled with a decrease in Excess Tax Benefits related to stock-based compensation
Diluted EPS	$3.21	$3.02	6%		— increase reflects the aforementioned revenue growth and margin expansion
Adjusted Diluted EPS(1)	$3.56	$3.28	9%

Moody's Corporation

Three Months Ended June 30, · % Change Favorable(Unfavorable)
2025 · 2024
Revenue:
United States	$992	$974	2%
Non-U.S.:
EMEA	613	566	8%
Asia-Pacific	174	164	6%
Americas	119	113	5%
Total Non-U.S.	906	843	7%
Total	1,898	1,817	4%
Expenses:
Operating	489	469	(4%)
SG&A	443	446	1%
Depreciation and amortization	120	110	(9%)
Restructuring	27	2	NM
Charges related to asset abandonment	1	15	93%
Total	1,080	1,042	(4%)
Operating income	$818	$775	6%
Adjusted Operating Income(1)	$966	$902	7%
Interest expense, net	$(61)	$(63)	3%
Other non-operating income, net	15	7	114%
Non-operating (expense) income, net	$(46)	$(56)	18%
Net income attributable to Moody's	$578	$552	5%
Diluted weighted average shares outstanding	180.2	183.0	2%
Diluted EPS attributable to Moody's common shareholders	$3.21	$3.02	6%
Adjusted Diluted EPS(1)	$3.56	$3.28	9%
Operating margin	43.1%	42.7%
Adjusted Operating Margin(1)	50.9%	49.6%
ETR	25.0%	23.1%

The table below shows Moody’s global staffing by geographic area:

June 30, · Change
2025 · 2024 · %
MA	U.S.	2,934	2,881	2%
	Non-U.S.	5,045	5,032	—%
	Total	7,979	7,913	1%
MIS	U.S.	1,560	1,513	3%
	Non-U.S.	4,274	4,126	4%
	Total	5,834	5,639	3%
MSS	U.S.	694	727	(5%)
	Non-U.S.	1,406	1,226	15%
	Total	2,100	1,953	8%
Total MCO	U.S.	5,188	5,121	1%
	Non-U.S.	10,725	10,384	3%
	Total	15,913	15,505	3%

GLOBAL REVENUE

Three months ended June 30,

Global revenue ⇑ $81 million	U.S. Revenue ⇑ $18 million	Non-U.S. Revenue ⇑ $63 million

The increase in global revenue reflects growth in MA of 11%, partially offset by a modest revenue decline in MIS. On an organic constant currency basis, revenue(1) grew 2%. Refer to the section entitled “Segment Results” of this MD&A for a more comprehensive discussion of the Company’s segment revenue.

Second Quarter Operating Expense ⇑ $20 million

— higher salaries and benefits attributable to hiring to support continued growth in the business coupled with salary increases; partially offset by
Compensation expenses of $362 million increased $16 million, reflecting:	Non-compensation expenses of $127 million were generally in line with the prior year
— a decrease in incentive compensation which aligns with actual/projected financial and operational performance

Second Quarter SG&A Expense ⇓ $3 million

— a decrease in incentive compensation which aligns with actual/projected financial and operational performance
Compensation expenses of $272 million increased $5 million, reflecting:	Non-compensation expenses of $171 million decreased $8 million, reflecting:
— higher salaries and benefits reflecting growth in headcount and annual salary increases; partially offset by	— reserves recorded in the prior year relating to a regulatory investigation, which was settled in the third quarter of 2024; partially offset by
— an increase in costs to support operating growth, including investments to support technology and innovation

Depreciation and amortization

The increase is primarily driven by amortization of recently acquired intangible assets as well as the amortization of internally developed software, which relates to the development of MA SaaS solutions.

Restructuring

The amounts reflect charges and adjustments related to the Company's restructuring programs. The Strategic and Operational Efficiency Restructuring Program is more fully discussed in Note 10 to the consolidated financial statements.

Operating margin 43.1%, ⇑ 40 BPS	Adjusted Operating Margin(1) 50.9%, ⇑ 130 BPS

Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth coupled with benefits from the Company's restructuring programs and disciplined cost management.

Interest Expense, net ⇓ $2 million	Other non-operating income ⇑ $8 million

— lower interest expense on borrowings of $12 million reflecting the repayment of the $700M of Senior Notes in the first quarter of 2025; partially offset by
The slight decrease in interest expense is due to:	Increase in income is primarily due to an increase in FX gains of $6 million
— a decrease in interest income of $10 million reflecting lower cash and short-term investment balances and lower interest rates

ETR ⇑ 190 BPS

The ETR was higher than the prior year primarily attributable to higher non-U.S. and state income taxes, coupled with a decrease in Excess Tax Benefits related to stock-based compensation.

Diluted EPS ⇑ $0.19	Adjusted Diluted EPS(1) ⇑ $0.28

Both diluted EPS and Adjusted Diluted EPS(1)growth is mostly attributable to the aforementioned revenue growth and margin expansion.

Segment Results

Moody’s Analytics

Three Months Ended June 30, · % Change Favorable(Unfavorable)
2025 · 2024
Revenue:
Decision Solutions (DS)	$413	$366	13%
Research and Insights (R&I)	249	226	10%
Data and Information (D&I)	226	210	8%
Total external revenue	888	802	11%
Intersegment revenue	3	4	(25%)
Total MA revenue	891	806	11%
Expenses:
Operating and SG&A (external)	555	527	(5%)
Operating and SG&A (intersegment)	50	49	(2%)
Total operating and SG&A	605	576	(5%)
Adjusted Operating Income	$286	$230	24%
Adjusted Operating Margin	32.1%	28.5%
Depreciation and amortization	97	90	(8%)
Restructuring	18	1	NM
Charges related to asset abandonment	1	15	93%

MOODY'S ANALYTICS REVENUE

Three months ended June 30,

MA: Global revenue ⇑ $86 million	U.S. Revenue ⇑ $43 million	Non-U.S. Revenue ⇑ $43 million

The 11% increase in global MA revenue reflects growth both in the U.S. (13%) and internationally (9%).

–Organic constant currency revenue(1) growth was 7%.

–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 12% and 8%, respectively.

–ARR(2) increased 8%.

The increases are reflective of growth across all LOBs, as discussed in further detail below.

DECISION SOLUTIONS REVENUE

Three months ended June 30,

DS: Global revenue ⇑ $47 million	U.S. Revenue ⇑ $24 million	Non-U.S. Revenue ⇑ $23 million

Global DS revenue for the three months ended June 30, 2025 and 2024 was comprised as follows:

Global DS revenue grew 13% compared to the second quarter of 2024 and reflects increases in the U.S. (17%) and internationally (10%). Organic constant currency revenue(1) and organic constant currency recurring revenue(1)growth for DS was 8% and 9%,respectively.

The most notable drivers of the growth are as follows:

–Insurance revenue grew 14%

–recurring revenue growth of 13% in Insurance was attributable to:

–continued demand resulting in new sales for subscription-based catastrophe and actuarial models; and

–revenue from Praedicat and CAPE Analytics, which the Company acquired in the third quarter of 2024 and first quarter of 2025, respectively

–Organic constant currency revenue(1) growth and organic constant currency recurring revenue(1) growth for Insurance was 6% and 5%, respectively

–ARR(2) grew 9% reflecting the continued demand that resulted in the aforementioned new sales for subscription-based catastrophe and actuarial models

–KYC revenue grew 22%

–recurring revenue growth of 23% reflects strong demand for our suite of KYC solutions, reflecting increased customer and supplier risk data usage, coupled with sales growth from new customers

–Organic constant currency revenue(1) growth and organic constant currency recurring revenue(1) growth in KYC was 18% and 20%, respectively

–ARR(2) grew 15%, reflecting the aforementioned strong demand for KYC solutions, however trailed organic constant currency recurring revenue(1) growth mainly due to certain isolated customer attrition events in 2025

–Banking revenue grew 5%

–recurring revenue growth of 10% within Banking reflected:

–expansion of existing customer relationships to subscription-based banking offerings, which enable customers' lending, risk management and finance workflows; and

–revenue from Numerated, which the Company acquired in the fourth quarter of 2024;

–a decline in transaction revenue of 11%, reflecting MA's continued strategic shift to subscription-based solutions

–Organic constant currency revenue(1) growth and organic constant currency recurring revenue(1) growth in Banking was 2% and 7%, respectively

–ARR(2) grew 7% reflecting the aforementioned expansion of existing customer relationships to subscription-based banking offerings

The aforementioned factors contributed to overall ARR(2)growth for DS of 10%.

RESEARCH AND INSIGHTS REVENUE

Three months ended June 30,

R&I: Global revenue ⇑ $23 million	U.S. Revenue ⇑ $15 million	Non-U.S. Revenue ⇑ $8 million

Global R&I revenue increased 10% compared to the second quarter of 2024 and reflects growth in both the U.S. (12%) and internationally (8%). Organic constant currency revenue(1) growth for R&I was 8%.

The revenue increase was mainly driven by sales growth and improved retention rates from the credit research product offering, which contributed to R&I ARR(2) growth of 7%.

DATA AND INFORMATION REVENUE

Three months ended June 30,

D&I: Global revenue ⇑ $16 million	U.S. Revenue ⇑ $4 million	Non-U.S. Revenue ⇑ $12 million

Global D&I revenue increased 8% compared to the second quarter of 2024 and reflects growth in both the U.S. (5%) and internationally (9%). Organic constant currency revenue(1) growth for D&I was 5%.

The revenue increase was mainly driven by continued demand for ratings data feeds as well as favorable changes in FX translation rates.

ARR(2)grew 6% reflecting continued demand for ratings data feeds.

MA: Second Quarter Operating and SG&A Expense ⇑ $28 million

— growth in salaries and benefits reflecting higher headcount to support business growth, driven largely by recent acquisitions, coupled with annual salary increases
Compensation expenses of $355 million increased $19 million, reflecting:	Non-compensation expenses of $200 million were generally in line with the prior year

MA: Adjusted Operating Margin 32.1% ⇑ 360 BPS

Adjusted Operating Margin expansion includes operational efficiency and cost savings from the Strategic and Operational Efficiency Restructuring Program and ongoing disciplined cost management.

Depreciation and amortization

The increase in depreciation and amortization expense primarily reflects the amortization of recently acquired intangible assets as well as higher amortization of internally developed software relating to the development of SaaS-based solutions.

Restructuring

Moody’s Investors Service

Three Months Ended June 30, · % Change Favorable(Unfavorable)
2025 · 2024
Revenue:
Corporate finance (CFG)	$512	$525	(2%)
Structured finance (SFG)	135	131	3%
Financial institutions (FIG)	191	195	(2%)
Public, project and infrastructure finance (PPIF)	162	154	5%
Total ratings revenue	1,000	1,005	—%
MIS Other	10	10	—%
Total external revenue	1,010	1,015	—%
Intersegment revenue	50	49	2%
Total MIS revenue	1,060	1,064	—%
Expenses:
Operating and SG&A (external)	377	388	3%
Operating and SG&A (intersegment)	3	4	25%
Total operating and SG&A	380	392	3%
Adjusted Operating Income	$680	$672	1%
Adjusted Operating Margin	64.2%	63.2%
Depreciation and amortization	23	20	(15%)
Restructuring	9	1	NM

The following chart presents changes in rated issuance volumes compared to the second quarter of 2024. To the extent that changes in rated issuance volumes had a material impact to MIS's revenue compared to the prior year, those impacts are discussed below.

MOODY'S INVESTORS SERVICE REVENUE

Three months ended June 30,

MIS: Global revenue ⇓ $5 million	U.S. Revenue ⇓ $25 million	Non-U.S. Revenue ⇑ $20 million

Total MIS revenue was in line with the prior year reflecting modest declines in CFG and FIG, offset by modest growth in PPIF and SFG.

Organic constant currency revenue(1) declined 2%.

CFG REVENUE

Three months ended June 30,

CFG: Global revenue ⇓ $13 million	U.S. Revenue ⇓ $28 million	Non-U.S. Revenue ⇑ $15 million

Global CFG revenue for the three months ended June 30, 2025 and 2024 was comprised as follows:

Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue.

The decrease in CFG revenue of 2% reflects declines in the U.S. (8%), offset by growth internationally (8%). Organic constant currency revenue(1) declined 4%.

Revenue decreased $13 million compared to the same period in the prior year, which primarily reflected:

–lower bank loan issuance (most notably in the U.S.) compared to a strong prior year comparative, attributable to heightened market volatility in 2025 coupled with subdued M&A activity;

–higher investment-grade issuance activity reflecting strong investor demand as yields remained high coupled with continued tight credit spreads for high quality credits; and

–the impact of annual price increases.

SFG REVENUE

Three months ended June 30,

2025---------------------------------------------------------------------------2024

SFG: Global revenue ⇑ $4 million	U.S. Revenue ⇓ $1 million	Non-U.S. Revenue ⇑ $5 million

Global SFG revenue for the three months ended June 30, 2025 and 2024 was comprised as follows:

SFG revenue was generally in line with the prior year across all asset classes.

FIG REVENUE

Three months ended June 30,

FIG: Global revenue ⇓ $4 million	U.S. Revenue ⇓ $5 million	Non-U.S. Revenue ⇑ $1 million

Global FIG revenue for the three months ended June 30, 2025 and 2024 was comprised as follows:

The decrease in FIG revenue of 2% reflects a decline in the U.S. (5%), partially offset by an increase internationally (1%). Organic constant currency revenue(1) declined 4%.

Revenue decreased $4 million compared to the second quarter of 2024, primarily due to:

–lower volumes from infrequent issuers in the insurance sector in the U.S., compared to very strong activity in the prior year;

–growth in banking issuance, most notably in the U.S.

PPIF REVENUE

Three months ended June 30,

PPIF: Global revenue ⇑ $8 million	U.S. Revenue ⇑ $9 million	Non-U.S. Revenue ⇓ 1 million

Global PPIF revenue for the three months ended June 30, 2025 and 2024 was comprised as follows:

The increase in PPIF revenue of 5% reflects growth in the U.S. (9%), partially offset by declines internationally (2%).

Revenue increased $8 million compared to the second quarter of 2024, reflecting:

–higher issuance in U.S. Public Finance in the state and local government and higher education sectors; and

–the impact of annual price increases.

MIS: Second Quarter Operating and SG&A Expense ⇓ $11 million

— a decrease in incentive compensation aligned with actual/projected financial and operating performance
Compensation expenses of $280 million were in line with the prior year reflecting the following offsetting factors:	Non-compensation expenses of $97 million decreased $14 million:
— growth in salaries and benefits reflecting higher headcount and annual salary increases; offset by	— the decrease is mostly attributable to reserves recorded in the prior year relating to a regulatory investigation, which was settled in the third quarter of 2024

MIS: Adjusted Operating Margin 64.2% ⇑ 100 BPS

MIS Adjusted Operating Margin expansion primarily reflects the aforementioned impact of reserves recorded in the prior year relating to a regulatory investigation.

Restructuring

Six months ended June 30, 2025 compared with six months ended June 30, 2024

Executive Summary

The following table provides an executive summary of key operating results for the six months ended June 30, 2025. Following this executive summary is a more detailed discussion of the Company’s operating results as well as a discussion of the operating results of the Company’s reportable segments.

	Six Months Ended June 30,
Financial measure: · 2025 · 2024 · % Change Favorable (Unfavorable) · Insight and Key Drivers of Change Compared to Prior Year
Moody's total revenue	$3,822	$3,603	6%		— reflects revenue growth in both segments
MA external revenue	$1,747	$1,601	9%		— sustained demand for insurance and KYC offerings and SaaS-based banking solutions;— continued demand for credit research product offerings; and— ongoing demand for ratings data feeds — Organic constant currency revenue(1) growth was 7%, and ARR(2) grew 8%
MIS external revenue	$2,075	$2,002	4%		— strong investor demand and tight credit spreads supported revenue growth in investment-grade, U.S. public and project finance, and CMBS; partially offset by— declines in bank loans attributable to heightened market volatility and subdued M&A activity
Total operating and SG&A expenses	$1,862	$1,795	(4%)		— higher salaries and benefits reflecting an increase in headcount and annual salary increases in both segments
Depreciation and amortization	$233	$210	(11%)		— amortization of recently acquired intangible assets; and— higher amortization of internally developed software, primarily related to the development of MA SaaS solutions
Restructuring	$60	$7	NM	— relates to the Company's restructuring programs. The Strategic and Operational Efficiency Restructuring Program is more fully discussed in Note 10 to the consolidated financial statements
Charges related to asset abandonment	$3	$15	80%		— costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which is more fully discussed in Note 12 to the consolidated financial statements
Total non-operating (expense) income, net	$(88)	$(105)	16%		— primarily due to an increase in equity income recorded for the Company's investments in non-consolidated affiliates
Operating margin	43.5%	43.7%	(20 BPS)	— slight operating margin contraction is attributable to higher restructuring costs, offset by growth in revenue— Adjusted Operating Margin(1) expansion reflects revenue growth coupled with benefits from the Company's restructuring programs and disciplined cost management
Adjusted Operating Margin(1)	51.3%	50.2%	110 BPS
ETR	23.6%	23.2%	(40 BPS)	— in line with the prior year
Diluted EPS	$6.66	$6.16	8%		— increase reflects the aforementioned revenue growth and margin expansion
Adjusted Diluted EPS(1)	$7.38	$6.65	11%

Moody’s Corporation

Six Months Ended June 30, · % Change Favorable(Unfavorable)
2025 · 2024
Revenue:
United States	$2,057	$1,943	6%
Non-U.S.:
EMEA	1,182	1,108	7%
Asia-Pacific	341	319	7%
Americas	242	233	4%
Total Non-U.S.	1,765	1,660	6%
Total	3,822	3,603	6%
Expenses:
Operating	980	936	(5%)
SG&A	882	859	(3%)
Depreciation and amortization	233	210	(11%)
Restructuring	60	7	NM
Charges related to asset abandonment	3	15	80%
Total	2,158	2,027	(6%)
Operating income	$1,664	1,576	6%
Adjusted Operating Income (1)	$1,960	1,808	8%
Interest expense, net	$(122)	(125)	2%
Other non-operating income, net	34	20	70%
Non-operating (expense) income, net	$(88)	(105)	16%
Net income attributable to Moody’s	$1,203	$1,129	7%
Diluted weighted average shares outstanding	180.5	183.2	1%
Diluted EPS attributable to Moody’s common shareholders	$6.66	$6.16	8%
Adjusted Diluted EPS (1)	$7.38	$6.65	11%
Operating margin	43.5%	43.7%
Adjusted Operating Margin (1)	51.3%	50.2%
Effective tax rate	23.6%	23.2%

GLOBAL REVENUE

Six months ended June 30,

Global revenue ⇑ $219 million	U.S. Revenue ⇑ $114 million	Non-U.S. Revenue ⇑ $105 million

Growth in global revenue reflected increases in both MA and MIS, both in the U.S. and internationally. Refer to the section entitled “Segment Results” of this MD&A for a more comprehensive discussion of the Company’s segment revenue.

YTD Operating Expense ⇑ $44 million

— higher salaries and benefits attributable to hiring and salary increases to support continued growth in the business
Compensation expenses of $730 million increased $38 million, reflecting:	Non-compensation expenses of $250 million were generally in line with the prior year

YTD SG&A Expense ⇑ $23 million

Compensation expenses of $547 million increased $17 million, reflecting:	Non-compensation expenses of $335 million were generally in line with the prior year, with the following offsetting factors:
— higher salaries and benefits attributable to an increase in headcount and annual salary increases	— reserves recorded in the prior year relating to a regulatory investigation, which was settled in the third quarter of 2024; partially offset by
	— an increase in costs to support operating growth, including investments to support technology and innovation

Depreciation and amortization

The increase in depreciation and amortization expense is driven by the amortization of recently acquired intangible assets as well as the amortization of internally developed software, which is primarily related to the development of MA SaaS solutions.

Restructuring

Charges related to asset abandonment

Reflects costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which is more fully discussed in Note 12 to the consolidated financial statements.

Operating margin 43.5%, ⇓ 20 BPS	Adjusted Operating Margin(1) 51.3%, ⇑ 110 BPS

Slight operating margin contraction is attributable to the increase in restructuring costs compared to the prior year, offset by growth in revenue.

Adjusted Operating Margin(1)expansion reflects revenue growth coupled with benefits from the Company's restructuring programs and disciplined cost management.

Interest Expense, net ⇓ $3 million	Other non-operating income ⇑ $14 million

— lower interest income of $8 million reflecting lower cash and short-term investment balances and lower interest rates
The decrease in interest expense is primarily due to:	Increase in income is primarily due to:
— lower interest expense on borrowings of $14 million reflecting the repayment of the $700M of Senior Notes in the first quarter of 2025; partially offset by	— an increase in equity income related to the Company's investments in non-consolidated affiliates of $12 million

ETR ⇑ 40 BPS

The ETR was generally in line with the prior year.

Diluted EPS ⇑ $0.50	Adjusted Diluted EPS(1) ⇑ $0.73

Both diluted EPS and Adjusted Diluted EPS(1) growth is mostly attributable to the aforementioned growth in revenue and operating income/adjusted operating income(2).

Moody’s Analytics

Six Months Ended June 30, · % Change Favorable(Unfavorable)
2025 · 2024
Revenue:
Decision Solutions (DS)	$818	$731	12%
Research and Insights (R&I)	485	448	8%
Data and Information (D&I)	444	422	5%
Total external revenue	1,747	1,601	9%
Intersegment revenue	6	7	(14%)
Total MA Revenue	1,753	1,608	9%
Expenses:
Operating and SG&A (external)	1,109	1,044	(6%)
Operating and SG&A (intersegment)	99	96	(3%)
Total operating and SG&A expense	1,208	1,140	(6%)
Adjusted Operating Income	$545	$468	16%
Adjusted Operating Margin	31.1%	29.1%
Depreciation and amortization	191	172	(11%)
Restructuring	44	3	NM
Charges related to asset abandonment	3	15	80%

MOODY'S ANALYTICS REVENUE

Six months ended June 30,

MA: Global revenue ⇑ $146 million	U.S. Revenue ⇑ $81 million	Non-U.S. Revenue ⇑ $65 million

The 9% increase in global MA revenue reflects growth both in the U.S. (12%) and internationally (7%).

–Organic constant currency revenue(1) growth was 7%.

–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 10% and 8%, respectively.

–ARR(2) increased 8%.

These increases are reflective of growth across all LOBs, as discussed in further detail below.

DECISION SOLUTIONS REVENUE

Six months ended June 30,

DS: Global revenue ⇑ $87 million	U.S. Revenue ⇑ $53 million	Non-U.S. Revenue ⇑ $34 million

Global DS revenue for the six months ended June 30, 2025 and 2024 was comprised as follows:

Global DS revenue grew 12% compared to the first half of 2024 and reflects increases in both the U.S. (19%) and internationally (7%). Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for DS was 8% and 11%, respectively. ARR(2) growth was 10%.

The most notable drivers of the growth are as follows:

–Insurance revenue grew 14%

–recurring revenue growth of 15% in Insurance was attributable to:

–continued demand resulting in new sales for subscription-based revenue for catastrophe and actuarial modeling tools; and

–revenue from Praedicat and CAPE Analytics, which the Company acquired in the third quarter of 2024 and first quarter of 2025, respectively

–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for Insurance was 7% and 8%, respectively

–ARR(2) grew 9%, reflecting the aforementioned continued demand that resulted in new sales for subscription-based revenue for catastrophe and actuarial modeling tools

–KYC revenue grew 19%

–recurring revenue growth of 21% in KYC reflects strong demand for KYC and compliance solutions reflecting increased customer and supplier risk data usage

–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for KYC was 18% and 20%, respectively

–Banking revenue grew 5%

–recurring revenue growth of 10% within Banking reflected:

–expansion of existing customer relationships to subscription-based banking offerings, which enable customers' lending, risk management and finance workflows; and

–revenue from Numerated, which the Company acquired in the fourth quarter of 2024;

–a decline in transaction revenue of 11%, reflecting MA's continued strategic shift to subscription-based solutions

–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for Banking was 3% and 7%, respectively

–ARR(2)grew 7%

RESEARCH AND INSIGHTS REVENUE

Six months ended June 30,

R&I: Global revenue ⇑ $37 million	U.S. Revenue ⇑ $21 million	Non-U.S. Revenue ⇑ $16 million

Global R&I revenue increased 8% compared to the first half of 2024 and reflects growth in both the U.S. (9%) and internationally (8%).

The revenue increase was attributable to sales growth for credit research product offerings, which contributed to ARR(2)growth of 7%.

DATA AND INFORMATION REVENUE

Six months ended June 30,

D&I: Global revenue ⇑ $22 million	U.S. Revenue ⇑ $7 million	Non-U.S. Revenue ⇑ $15 million

Global D&I revenue increased 5% compared to the first half of 2024 and reflects growth in both the U.S. (5%) and internationally (6%). This growth was mainly driven by continued strong demand for ratings data feeds and company data applications, which contributed to ARR(2)growth of 6% for D&I.

MA: YTD Operating and SG&A Expense ⇑ $65 million

Compensation expenses of $717 million increased $44 million:	Non-compensation expenses of $392 million increased $21 million:
— the growth in salaries and benefits reflects higher headcount to support business growth, including from recent acquisitions, coupled with annual salary increases	— the increase is mainly attributable to costs to support operating growth, including investments to support technology, innovation and product development

MA: Adjusted Operating Margin 31.1% ⇑ 200 BPS

Adjusted Operating Margin expansion includes operational efficiency and cost savings from the Strategic and Operational Efficiency Restructuring Program and ongoing disciplined cost management.

Depreciation and amortization

Restructuring

Charges related to asset abandonment

Moody’s Investors Service

Six Months Ended June 30, · % Change Favorable(Unfavorable)
2025 · 2024
Revenue:
Corporate finance (CFG)	$1,076	$1,054	2%
Structured finance (SFG)	273	245	11%
Financial institutions (FIG)	382	390	(2%)
Public, project and infrastructure finance (PPIF)	325	295	10%
Total ratings revenue	2,056	1,984	4%
MIS Other	19	18	6%
Total external revenue	2,075	2,002	4%
Intersegment royalty	99	96	3%
Total	2,174	2,098	4%
Expenses:
Operating and SG&A (external)	753	751	—%
Operating and SG&A (intersegment)	6	7	14%
Total operating and SG&A expense	759	758	—%
Adjusted Operating Income	$1,415	$1,340	6%
Adjusted Operating Margin	65.1%	63.9%
Depreciation and amortization	42	38	(11%)
Restructuring	16	4	(300%)

The following chart presents changes in rated issuance volumes compared to the first half of 2024. To the extent that changes in rated issuance volumes had a material impact to MIS's revenue compared to the prior year, those impacts are discussed below.

MOODY'S INVESTORS SERVICE REVENUE

Six months ended June 30,

MIS: Global revenue ⇑ $73 million	U.S. Revenue ⇑ $33 million	Non-U.S. Revenue ⇑ $40 million

The increase in global MIS revenue reflects growth across all ratings LOBs, excluding FIG.

CFG REVENUE

Six months ended June 30,

CFG: Global revenue ⇑ $22 million	U.S. Revenue ⇓ 9 million	Non-U.S. Revenue ⇑ $31 million

Global CFG revenue for the six months ended June 30, 2025 and 2024 was comprised as follows:

Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue.

The increase in CFG revenue of 2% reflects growth internationally (9%), partially offset by a modest decline in the U.S. (1%), with the most notable drivers reflecting:

–higher issuance activity for investment-grade bonds, which reflected continued tight credit spreads and continued investor demand; and

–the impact of annual price increases;

–declines in bank loans attributable to ongoing market volatility and subdued M&A activity.

SFG REVENUE

Six months ended June 30,

SFG: Global revenue ⇑ $28 million	U.S. Revenue ⇑ $23 million	Non-U.S. Revenue ⇑ $5 million

Global SFG revenue for the six months ended June 30, 2025 and 2024 was comprised as follows:

The increase in SFG revenue of 11% reflects growth in both the U.S. (14%) and internationally (6%).

The increase reflected growth across all asset classes, most notably from increased issuance activity in CMBS, supported by tight spreads and strong investor demand.

FIG REVENUE

Six months ended June 30,

FIG: Global revenue ⇓ $8 million	U.S. Revenue ⇓ $8 million	Non-U.S. Revenue was in line with prior year

Global FIG revenue for the six months ended June 30, 2025 and 2024 was comprised as follows:

The decrease in FIG revenue of 2% reflects a decline in the U.S. (4%).

Revenue decreased $8 million compared to the same period in the prior year, primarily due to:

–lower volumes from infrequent issuers in the insurance sector, compared to strong activity in the prior year;

–growth in banking revenue, which came mainly from issuers in the U.S.

PPIF REVENUE

Six months ended June 30,

PPIF: Global revenue ⇑ $30 million	U.S. Revenue ⇑ $27 million	Non-U.S. Revenue ⇑ $3 million

Global PPIF revenue for the six months ended June 30, 2025 and 2024 was comprised as follows:

The 10% increase in PPIF revenue reflects increases in both the U.S. (15%) and internationally (3%), with the most notable drivers of the growth reflecting:

–higher issuance in U.S. Public Finance, primarily reflecting increased activity in the state and local government and higher education sectors; and

–higher U.S. Project Finance activity supported by ongoing funding requirements for large-scale infrastructure projects.

MIS: YTD Operating and SG&A Expense was in line with the prior year

— a decrease in incentive compensation aligned with actual/projected financial and operating performance
Compensation expenses of $560 million increased $11 million, reflecting:	Non-compensation expenses of $193 million decreased $9 million with the most notable driver of the growth reflecting:
— growth in salaries and benefits reflecting higher headcount and annual salary increases; partially offset by:	— reserves recorded in the prior year relating to a regulatory investigation, which was settled in the third quarter of 2024

Adjusted Operating Margin of 65.1% ⇑ 120 BPS

MIS Adjusted Operating Margin expansion primarily reflected the impact of reserves recorded in the prior year related to a regulatory investigation, further supported by the aforementioned 4% increase in revenue.

Restructuring Charges

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.