Morningstar, Inc.
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout 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 31, 2025
MORN$244.15-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001289419-25-000073
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001289419-25-000145
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 154 previous paragraphs and 171 current paragraphs.
96 unchanged; 48 reworded; 23 added; 9 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
License-based revenue increased 6.6%, or 6.3% on an organic basis, during the second quarter of 2025, primarily driven by strong demand for PitchBook and Morningstar Direct Platform products.
Current report
Asset-based revenue decreased 2.7% on a reported basis and increased 0.2% on an organic basis during the second quarter of 2025. The decline in reported revenue was primarily driven by decreases in Morningstar Indexes and Morningstar Retirement products. Organic revenue growth was primarily driven by increases in Morningstar Wealth.
Current report
Transaction-based revenue increased 14.2%, or 14.5% on an organic basis, during the first six months of 2025, primarily driven by Morningstar Credit revenue.
Current report
Organic revenue increased 5.9% in the second quarter of 2025 and 7.5% in the first six months of 2025, driven by organic growth in PitchBook, Morningstar Direct Platform, and Morningstar Credit.
Current report
General and administrative expense increased $1.7 million in the second quarter of 2025 and decreased $2.1 million in thefirst six months of 2025. The increase in the second quarter of 2025 was driven primarily by higher facilities-related expense and stock-based compensation. The decline in general and administrative expense during the first six months of 2025 was due to lower professional fees.
Current report
Consolidated operating income increased $38.1 million in thefirst six months of 2025, reflecting an increase in revenue of $72.3 million offset by an increase in operating expense of $35.0 million. Operating margin was 20.2% in thefirst six months of 2025, an increase of 2.2 percentage points compared with thefirst six months of 2024.
Current report
Morningstar Direct Platform adjusted operating income increased $9.0 million, or 10.3%, and adjusted operating margin increased 1.7 percentage points for the three months ended June 30, 2025.
Current report
Morningstar Direct Platform total revenue increased $14.8 million, or 3.8%, for thesix months ended June 30, 2025. Revenue grew 5.3% on an organic basis, primarily driven by growth in Morningstar Data and Morningstar Direct.
Current report
Morningstar Direct Platform adjusted operating income increased $4.9 million, or 2.7%, and adjusted operating margin decreased 0.5 percentage points for thesix months ended June 30, 2025.
Current report
Morningstar Direct Platform depreciation expense was $11.2 million and $9.5 million for the three months ended June 30, 2025 and 2024, respectively, and $22.0 million and $17.7 million for thesix months ended June 30, 2025 and 2024, respectively.
Current report
PitchBook total revenue increased $14.8 million, or 9.8%, for the three months ended June 30, 2025. Revenue grew 9.6% on an organic basis.
Current report
PitchBook adjusted operating income increased $5.5 million, or 11.6%, and adjusted operating margin increased 0.5 percentage points for thethree months ended June 30, 2025.
Current report
PitchBook total revenue increased $30.9 million, or 10.3% on a reported and organic basis for the six months ended June 30, 2025. Revenue growth was primarily driven by the PitchBook platform.
Current report
PitchBook adjusted operating income increased$17.8 million, or 20.4%, and adjusted operating margin increased 2.6 percentage points for the six months ended June 30, 2025.
Current report
PitchBook depreciation expense was$8.1 million and $8.3 million for thethree months ended June 30, 2025 and 2024, respectively, and $15.9 million and $15.7 million for thesix months ended June 30, 2025 and 2024, respectively.
Current report
Morningstar Credit adjusted operating income increased$2.6 million, or 9.3%, and adjusted operating margin decreased 0.1 percentage points for thethree months ended June 30, 2025.
Current report
Morningstar Credit total revenue increased $20.1 million, or 14.6%, for the six months ended June 30, 2025. Revenue grew 14.8% on an organic basis. Growth was driven by strength in commercial mortgage-backed, asset-backed, and residential mortgage-backed securities, particularly in Europe and the US.
Current report
Morningstar Wealth total revenue increased $4.0 million, or 3.3%, for thesix months ended June 30, 2025. Revenue grew 7.5% on an organic basis, primarily driven by growth in Investment Management and advertising sales.
Current report
Morningstar Wealth depreciation expense was $4.4 million and $5.0 million for the three months ended June 30, 2025 and 2024, respectively, and $8.9 million and $9.7 million for thesix months ended June 30, 2025 and 2024, respectively.
Current report
Morningstar Retirement adjusted operating income decreased $1.5 million, or 4.8%, and adjusted operating margin decreased 5.2 percentage points for the six months ended June 30, 2025.
Current report
Morningstar Indexes revenue decreased $0.2 million or 1.0% for the three months ended June 30, 2025. Organic revenue decreased 1.3%, reflecting lower investable product revenue driven by outflows and lower AUMA for certain higher margin products partially offset by higher licensed data revenue.
Current report
On July 4, 2025, the One Big Beautiful Bill Act (the OBBB) was enacted in the United States. The OBBB contains several changes impacting corporate taxpayers, including modifications to the capitalization of research and development expenses, changes to calculations for the limitation on deductions for interest expense, and the reestablishment of accelerated depreciation (full expensing) on fixed assets. The OBBB also includes adjustments to the calculation of certain international tax framework provisions, which were initially established by the Tax Cuts and Jobs Act of 2017. The OBBB has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing the potential implications of the OBBB; however, an estimate of the impact of the OBBB on our consolidated financial statements cannot be made at this time.
Current report
We generated free cash flow of $121.2 million in the first six months of 2025 compared with $180.3 million in the first six months of 2024. The change reflects a $56.3 million decrease in cash provided by operating activities and a $2.8 million increase in capital expenditures compared to the prior-year period. The decline in cash provided by operating activities and free cash flow was primarily driven by higher bonus and income tax payments in the first six months of 2025 compared to the prior-year period. We made annual bonus payments of $163.5 million during the first quarter of 2025 compared with $123.9 million in the first quarter of 2024. We made income tax payments of $93.7 million during the first six months of 2025 compared with $44.1 million during the first six months of 2024. The increase in tax payments during the first six months of 2025 was due to the factors noted above. Capital expenditures increased primarily due to investment in our product development efforts across our key product areas.
Removed paragraphs (9)
Previous report
Organic revenue increased 9.1% in the first quarter of 2025. PitchBook, Morningstar Credit, and Morningstar Direct Platform were the largest drivers of the increase in organic revenue in the first quarter of 2025.
Previous report
Cost of revenue is our largest category of operating expense, representing about half of our total operating expense. Our business relies heavily on human capital, and cost of revenue includes the compensation expense for employees who develop our products and deliver our services. We include compensation expense for approximately 77% of our employees in this category.
Previous report
General and administrative expense decreased $3.8 million in the first quarter of 2025 driven primarily by lower professional fees and stock-based compensation expense.
Previous report
Morningstar Direct Platform adjusted operating income decreased $4.1 million, or 4.5%, and adjusted operating margin decreased 2.7 percentage points for thethree months ended March 31, 2025. The decline in adjusted operating income and margin was primarily due to higher compensation costs driven in large part by merit and headcount increases; the impact of the sale of the company’s Commodity and Energy Data business; and increased depreciation.
Previous report
Morningstar Direct Platform depreciation expense was $10.8 million and $8.2 million for thethree months ended March 31, 2025 and 2024, respectively. The increase was primarily driven by higher capitalized software costs for product enhancements in prior periods.
Previous report
PitchBook total revenue increased $16.1 million, or 10.9%, for the three months ended March 31, 2025. Revenue grew 11.1% on an organic basis.
Previous report
PitchBook adjusted operating income increased$12.3 million, or 30.8%, and adjusted operating margin increased 4.8 percentage points for the three months ended March 31, 2025.
Previous report
PitchBook depreciation expense was $7.8 million and $7.4 million for thethree months ended March 31, 2025 and 2024, respectively.
Previous report
Morningstar Wealth depreciation expense was $4.5 million and $4.7 million for thethree months ended March 31, 2025 and 2024, respectively.
Reworded paragraphs (48)
Previous wording
•changing economic conditions, including prolonged volatility, recessions, or downturns affecting the financial sector and global financial markets, and impacts of global trade policies, may negatively impact our financial results, including those of our asset-based businesses;
Current wording
•changing economic conditions, including prolonged volatility, recessions, or downturns affecting the financial sector and global financial markets, and the impacts of global trade policies, may negatively impact our financial results, including those of our asset-based businesses;
Previous wording
•the potential and impact of vendor consolidation and clients' strategic decisions to replace our products and services with in-house products and services;
Current wording
•the potential impact of vendor consolidation and clients' strategic decisions to replace our products and services with in-house products and services;
Previous wording
A more complete description of these risks and uncertainties can be found in our other filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2024 (our Annual Report) as supplemented by this Quarterly Report on Form 10-Q. If any of these risks and uncertainties materialize, our actual future results and other future events may vary significantly from what we expect. We do not undertake to update our forward-looking statements as a result of new information, future events, or otherwise, except as may be required by law. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties, and assumptions in our filings with the SEC on Forms 10-K, 10-Q, and 8-K.
Current wording
A more complete description of these risks and uncertainties can be found in our other filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2024 (our Annual Report), and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 as supplemented by this Quarterly Report on Form 10-Q. If any of these risks and uncertainties materialize, our actual future results and other future events may vary significantly from what we expect. We do not undertake to update our forward-looking statements as a result of new information, future events, or otherwise, except as may be required by law. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties, and assumptions in our filings with the SEC on Forms 10-K, 10-Q, and 8-K.
Previous wording
License-based: Generated mostly by our Morningstar Direct Platform and PitchBook segments, revenue through license agreements on either a per user or enterprise-basis. Our license agreements typically range from one to three years and are accounted for as subscription services available to customers and not as licenses under the accounting guidance.
Current wording
License-based: Generated mostly by our Morningstar Direct Platform and PitchBook segments, revenue through license agreements is derived on either a per user or enterprise-basis. Our license agreements typically range from one to three years and are accounted for as subscription services available to customers and not as licenses under the accounting guidance.
Previous wording
Three Months Ended March 31, 2025 vs. Three Months Ended March 31, 2024
Current wording
Three and Six Months Ended June 30, 2025 vs. Three and Six Months Ended June 30, 2024
Previous wording
•"Adjusted Operating Income (Loss)" is consolidated operating income (loss) excluding (1) intangible amortization expense, (2) the impact of merger, acquisition, and divestiture-related activity which, when applicable, may include certain non-recurring expenses such as pre-deal due diligence, transaction costs, contingent consideration, severance, and post-close integration costs (M&A-related expenses), and (3) certain other one-time, non-recurring items which management does not consider when evaluating ongoing performance.
Current wording
•"Adjusted Operating Income (Loss)" is consolidated operating income (loss) excluding (1) intangible amortization expense, (2) the impact of merger, acquisition, and divestiture-related activity which, when applicable, may include certain non-recurring expenses such as pre-deal due diligence, transaction costs, contingent consideration, severance, and post-close integration costs (M&A-related expenses), and (3) certain other one-time, non-recurring items which management does not consider when evaluating ongoing performance (other non-recurring items).
Previous wording
•"Adjusted Operating Margin" is operating margin excluding (1) intangible amortization expense, (2) M&A-related expenses, and (3) certain other one-time, non-recurring items which management does not consider when evaluating ongoing performance.
Current wording
•"Adjusted Operating Margin" is operating margin excluding (1) intangible amortization expense, (2) M&A-related expenses, and (3) other non-recurring items.
Previous wording
In the first quarter of 2025, consolidated revenue increased 7.2% to $581.9 million. Foreign currency movements decreased revenue by$4.6 million.
Current wording
In the second quarter of 2025, consolidated revenue increased 5.8% to $605.1 million. Foreign currency movements decreased revenue by$5.1 million.
Previous wording
Transaction-based revenue increased 19.2%, or 21.4% on an organic basis, during the first quarter of 2025. Reported and organic revenue growth were primarily driven by Morningstar Credit revenue.
Current wording
Transaction-based revenue increased 10.3%, or 9.4% on an organic basis, during the second quarter of 2025, primarily driven by Morningstar Credit revenue.
Previous wording
License-based revenue grew 4.4%, or 6.2% on an organic basis, during the first quarter of 2025. Reported and organic revenue growth were primarily driven by strong demand for PitchBook and Morningstar Direct Platform products.
Current wording
License-based revenue increased 5.5%, or 6.2% on an organic basis, during the first six months of 2025, primarily driven by strong demand for PitchBook and Morningstar Direct Platform products.
Previous wording
Asset-based revenue increased 11.3%, or 14.5% on an organic basis, during the first quarter of 2025. Reported and organic revenue growth were primarily driven by increases in Morningstar Retirement, Morningstar Wealth, and Morningstar Indexes.
Current wording
Asset-based revenue increased 4.0%, or 7.0% on an organic basis, during the first six months of 2025, primarily driven by increases in Morningstar Retirement, Morningstar Wealth, and Morningstar Indexes.
Previous wording
International revenue comprised 27% and 28% of our consolidated revenue in the first quarter of 2025 and 2024, respectively. Approxima tely 60% of international revenue was generated in Continental Europe and the United Kingdom during the first quarter of 2025 compared to 58% during the first quarter of 2024. Revenue from international operations increased 3.6% during the first quarter of 2025 driven by strong demand for Morningstar Credit, PitchBook, and Morningstar Wealth products.
Current wording
International revenue comprised 29% of our consolidated revenue in the second quarter of 2025 and 28% in thefirst six months of 2025, as well as in both corresponding periods in 2024. Approxima tely 59% and 60% of international revenue was generated in Continental Europe and the United Kingdom during the second quarter and first six months of 2025, respectively, compared to 57% and 58% during the second quarter and first six months of 2024, respectively. Revenue from international operations increased 7.4% and 5.6% during the second quarter andfirst six monthsof 2025, respectively, driven by strong demand for Morningstar Credit, Morningstar Direct Platform, and PitchBook products.
Previous wording
Cost of revenue increased $13.3 million in the first quarter of 2025. Higher compensation expense of $6.2 million was the largest contributor to the increase, primarily driven by higher severance costs related to the announced sunsetting of Morningstar Office and an increase in salaries and payroll taxes. Techn ology infrastructure costs were also a driver in higher operating expense during the first quarter of 2025 due to the company's investment in and renewal of various SaaS-based platforms across the business.
Current wording
Cost of revenue increased $7.9 million in the second quarter of 2025 and $21.2 million in thefirst six months of 2025. Higher compensation expense of $10.9 million and $17.1 million in the second quarter and the first six months of 2025, respect ively, was the largest contributor to the increase, primarily driven byan increase in salaries related in part to the Company's annual merit increase as well ashigher severance costs related to a targeted reorganization in Morningstar Sustainalytics. Higher severance costs in the first six months of 2025 were also driven by the announced sunsetting of Morningstar Office during the first quarter of 2025.
Previous wording
Sales and marketing expense increased $8.0 million in the first quarter of 2025. Compensation expense increased $3.9 million during the first quarter of 2025 with approximately half of the increase due to higher sales commission expense. Advertising and marketing costs increased $3.0 million during the first quarter of 2025 due to increased costs associated with brand campaigns.
Current wording
Sales and marketing expense increased $8.4 million in the second quarter of 2025 and $16.4 million in thefirst six months of 2025. Compensation expense increased $4.7 million during the second quarter of 2025 and $8.6 million in the first six months of 2025 due to an increase in salaries and payroll taxes. In addition, approximately a third of the increase during the first six months of 2025 was due to higher sales commission expense. Advertising and marketing costs increased $2.8 million during the second quarter of 2025 and $5.8 million during the first six months of 2025 due to increased costs associated with marketing and brand campaigns, as well as paid advertising.
Previous wording
Depreciation expense increased $3.6 million in the first quarter of 2025 due primarily to higher capitalized software costs for product enhancements in prior periods.
Current wording
Depreciation expense increased $1.7 million in the second quarter of 2025 and $5.3 million in thefirst six months of 2025 due primarily to higher capitalized software costs for product enhancements in prior periods.
Previous wording
Intangible amortization expense decreased $3.3 million during the first quarter of 2025 as certain intangible assets from some of our earlier acquisitions became fully amortized.
Current wording
Intangible amortization expense decreased $2.2 million during the second quarter of 2025 and $5.5 million in thefirst six months of 2025 as certain intangible assets from some of our earlier acquisitions became fully amortized.
Previous wording
Consolidated operating income increased $21.5 million in the first quarter of 2025, reflecting an increase in revenue of $39.1 million and offset by an increase in operating expense of $17.6 million. Operating margin was 19.6%, an increase of 2.5 percentage points compared with the first quarter of 2024.
Current wording
Consolidated operating income increased $16.6 million in the second quarter of 2025, reflecting an increase in revenue of $33.2 million, partially offset by an increase in operating expense of $17.4 million. Operating margin was 20.7%, an increase of 1.7 percentage points compared with the second quarter of 2024.
Previous wording
We reported adjusted operating income of $135.4 million in the first quarter of 2025. The table below shows a reconciliation of adjusted operating income to the most directly comparable GAAP financial measure.
Current wording
We reported adjusted operating income of $143.4 million and $278.8 million in the second quarter of 2025 and first six months of 2025, respectively. The table below shows a reconciliation of adjusted operating income to the most directly comparable GAAP financial measure.
Previous wording
(1) Corporate and All Other includes unallocated corporate expenses as well as adjusted operating income (loss) from Morningstar Sustainalytics and Morningstar Indexes. During the first quarter of 2025 and 2024, unallocated corporate expenses were $41.8 million and $40.9 million, respectively. Unallocated corporate expenses include finance, human resources, legal, and other management-related costs that are not considered when segment performance is evaluated.
Current wording
(1) Corporate and All Other includes unallocated corporate expenses as well as adjusted operating income (loss) from Morningstar Sustainalytics and Morningstar Indexes. For the second quarters of 2025 and 2024, unallocated corporate expenses were $50.1 million and $46.1 million, respectively. For the first six months of 2025 and 2024, unallocated corporate expenses were $91.9 million and $87.0 million, respectively. Unallocated corporate expenses include finance, human resources, legal, and other management-related costs that are not considered when segment performance is evaluated.
Previous wording
We reported adjusted operating margin of 23.3% in the first quarter of 2025. The table below shows a reconciliation of adjusted operating margin to the most directly comparable GAAP financial measure.
Current wording
We reported adjusted operating margin of 23.7% in the second quarter of 2025 and 23.5% in thefirst six months of 2025. The table below shows a reconciliation of adjusted operating margin to the most directly comparable GAAP financial measure.
Previous wording
Morningstar Direct Platform total revenue increased $2.5 million, or 1.3%, for the three months ended March 31, 2025. Revenue grew 4.2% on an organic basis, primarily driven by growth in Morningstar Direct and Morningstar Data. Organic revenue growth excludes revenue associated with the divested Commodity and Energy Data business from the prior-year period and foreign currency impact.
Current wording
Morningstar Direct Platform total revenue increased $12.3 million, or 6.2%, for the three months ended June 30, 2025. Revenue grew 6.3% on an organic basis, primarily driven by growth in Morningstar Data and Morningstar Direct. Organic revenue growth excludes revenue associated with the divested Commodity and Energy Data business from the prior-year period and foreign currency impact.
Previous wording
The Company has changed the name of this reportable segment to Morningstar Direct Platform. It also changed the composition of the key product areas within the segment (Morningstar Data, Morningstar Direct, and Morningstar Advisor Workstation). There were no changes to the overall composition of the reportable segment.
Current wording
Starting in the first quarter of 2025, the Company changed the name of this reportable segment to Morningstar Direct Platform. It also changed the composition of the key product areas within the segment (Morningstar Data, Morningstar Direct, and Morningstar Advisor Workstation). There were no changes to the overall composition of the reportable segment.
Previous wording
Morningstar Data contributed $3.0 million to revenue growth, with revenue increasing 3.1% or 4.1%on an organic basis. Increases in managed investment (fund) data, Morningstar Essentials, and equity data products helped drive Morningstar Data growth, partially offset by softness in research distribution, reflecting the loss of a large client who brought coverage in-house in 2024, and in Direct Web Services, which experienced higher planned churn as clients transitioned to an updated product.
Current wording
Morningstar Data contributed $11.9 million to revenue growth, with revenue increasing 12.6% or 10.1%on an organic basis. Increases in managed investment (fund) data helped drive Morningstar Data growth.
Previous wording
Morningstar Direct contributed $3.8 million to revenue growth, with revenue increasing 5.6%, or 6.8%, on an organic basis, reflecting strength in its two core products, Morningstar Direct and Morningstar Direct Reporting Solutions, with growth across geographies. Morningstar Direct licenses increased 0.6%.
Current wording
Morningstar Direct contributed $4.2 million to revenue growth, with revenue increasing 6.0%, or 4.5%, on an organic basis, with growth across geographies. Morningstar Direct licenses increased 0.6%.
Previous wording
This was partially offset by continued softness in the corporate client segment, especially with smaller firms with more limited use cases when deal activity is depressed. PitchBook licensed users grew 13.6%, driven primarily by growth among PitchBook clients and the addition of new clients. With the Leveraged Commentary & Data (LCD) user migration near completion, the total user counts reflect legacy LCD clients, most of whom transitioned to the PitchBook platform in 2024 and are now included in licensed user counts.
Current wording
Growth was primarily driven by the PitchBook platform. PitchBook platform growth drivers were consistent with recent quarters and reflected strength in PitchBook's core investor and advisor client segments, including commercial banks, private equity, credit investors, and investment banks. This was partially offset by continued softness in the corporate client segment, especially with smaller firms with more limited use cases when deal activity is depressed. PitchBook licensed users grew 7.6%, driven primarily by growth among PitchBook clients and the addition of new clients. With the Leveraged Commentary & Data (LCD) user migration near completion, the total user counts reflect legacy LCD clients, most of whom transitioned to the PitchBook platform in 2024 and are now included in licensed user counts.
Previous wording
Morningstar Credit total revenue increased $12.7 million, or 21.1%, for the three months ended March 31, 2025. Revenue grew 23.2% on an organic basis. The increase was primarily driven by growth in the United States and Europe, with particular strength in commercial mortgage-backed and asset-backed securities as structured finance ratings activity remained strong. Higher corporate and residential mortgage-backed securities related-revenue also contributed to growth. Organic revenue growth excludes current-period revenue associated with Dealview Technologies Limited (DealX), which was acquired in the quarter, and foreign currency impact.
Current wording
Morningstar Credit total revenue increased $7.4 million, or 9.5%, for thethree months ended June 30, 2025. Revenue grew 8.4% on an organic basis. Higher asset-backed, residential mortgage-backed, and commercial mortgage-backed securities ratings revenue, together with an increase in licensed data revenue, were the primary drivers of growth. An increase in the US and Europe contributed to reported and organic revenue growth, partially offset by a modest revenue decline in Canada. Organic revenue growth excludes current-period revenue associated with Morningstar Credit Analytics (formerly Dealview Technologies Limited (DealX)), which was acquired in the first quarter, and foreign currency impact.
Previous wording
Morningstar Credit adjusted operating income increased$9.1 million, or 74.0%, and adjusted operating margin increased 8.9 percentage points for the three months ended March 31, 2025.
Current wording
Morningstar Credit adjusted operating income increased$11.7 million, or 29.1%, and adjusted operating margin increased 3.6 percentage points for the six months ended June 30, 2025.
Previous wording
Morningstar Credit depreciation expense was $2.0 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Morningstar Credit depreciation expense was $2.0 million and $1.7 million for the three months ended June 30, 2025 and 2024, respectively, and $4.0 million and $3.6 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Morningstar Wealth total revenue increased $2.3 million, or 3.9%, for thethree months ended March 31, 2025. Revenue grew 7.9% on an organic basis, primarily driven by growth in Investment Management, supported by higher revenue for Morningstar Model Portfolios offered on third-party platforms, and an increase in advertising sales. Organic revenue growth excludes platform revenue associated with US TAMP assets sold to AssetMark from the prior-year period, interim service fees received from AssetMark in the current period, and foreign currency impact.
Current wording
Morningstar Wealth total revenue increased $1.7 million, or 2.7%, for the three months ended June 30, 2025. Revenue grew 7.2% on an organic basis, primarily driven by an increase in advertising sales and Investment Management, supported by higher revenue for Morningstar Model Portfolios offered on third-party platforms. Organic revenue growth excludes platform revenue associated with US TAMP assets sold to AssetMark from the prior-year period, interim service fees received from AssetMark in the current period, and foreign currency impact.
Previous wording
Investment Management contributed $2.5 million to consolidated revenue growth, with revenue increasing 7.4% ona reported or 14.8% organic basis. Growth was primarily supported by higher revenue for Morningstar Model Portfolios offered on third-party platforms. Reported AUMA increased 10.8% to $63.8 billion compared with the prior-year period, helped by strong market performance, which drove higher asset values, and positive net flows to Morningstar Model Portfolios offered on third-party platforms outside the US and to the International Wealth Platform.
Current wording
Investment Management total revenue decreased $0.6 million, or 1.7% on a reported basis. Revenue increased 6.2% on an organic basis. Reported AUMA increased 13.0% to $66.8 billion compared with the prior-year period, helped by market performance, which contributed to higher asset values, and positive net flows to Morningstar Model Portfolios offered on third-party platforms outside the US and to the International Wealth Platform.
Previous wording
Morningstar Wealth adjusted operating loss decreased$4.8 million and adjusted operating margin increased 8.2 percentage points for the three months ended March 31, 2025. Adjusted operating loss excludes the impact of severance expense related to the planned sunsetting of Morningstar Office.
Current wording
Morningstar Wealth adjusted operating income increased$5.2 million and adjusted operating margin increased 8.2 percentage points for the three months ended June 30, 2025.
Previous wording
Morningstar Retirement total revenue increased $4.5 million, or 15.8% on a reported and organic basis for thethree months ended March 31, 2025. AUMA, calculated using the most recently available average quarterly or monthly data, increased 17.7% to $277.6 billion compared with the prior-year period, due to positive net flows and market gains, supported by strong growth in traditional and Advisor Managed Accounts and custom models.
Current wording
Morningstar Retirement total revenue decreased $0.9 million, or 2.7% on a reported and organic basis for the three months ended June 30, 2025, primarily due to an isolated item in the prior-year period. AUMA, calculated using the most recently available average quarterly or monthly data, increased 11.0% to $285.4 billion compared with the prior-year period, due to positive net flows and market gains, supported by strong growth in traditional and Advisor Managed Accounts and custom models.
Previous wording
Morningstar Retirement adjusted operating income increased $0.4 million, or 2.8%, and adjusted operating margin decreased 5.6 percentage points for the three months ended March 31, 2025. The decline in margin was primarily driven by a non-recurring expense related to a correction of client accounts as well as higher compensation costs, reflecting increased headcount and merit increases.
Current wording
Morningstar Retirement adjusted operating income decreased $1.9 million, or 11.0%, and adjusted operating margin decreased 4.5 percentage points for thethree months ended June 30, 2025. The decline in margin was primarily driven by the decline in revenue; increased marketing expenses, including costs related to campaign tracking and data management; and higher compensation costs, which included the impact of increased technology and operations headcount to support growth as well as increased commissions.
Previous wording
Morningstar Retirement depreciation expense was $2.6 million and $2.8 million for thethree months ended March 31, 2025 and 2024, respectively.
Current wording
Morningstar Retirement depreciation expense was $2.7 million and $2.6 million for the three months ended June 30, 2025 and 2024, respectively, and $5.3 million and $5.4 million for thesix months ended June 30, 2025 and 2024, respectively.
Previous wording
Corporate and All Other revenue increased $1.0 million, or 2.0% on a reported basis for the three months ended March 31, 2025.
Current wording
Corporate and All Other revenue decreased $2.1 million, or 4.2% on a reported basis, and $1.1 million, or 1.1% on a reported basis, for the three and six months ended June 30, 2025, respectively.
Previous wording
Morningstar Sustainalytics revenue decreased$2.0 million or 6.5%. Organic revenue decreased 4.9%, which was primarily driven by the ongoing streamlining of the licensed-ratings offering; lower revenues for ESG Risk Ratings, due in part to vendor consolidation; and softness in second-party opinions.
Current wording
Morningstar Sustainalytics revenue decreased$3.9 million or 6.5% for thesix months ended June 30, 2025. Organic revenue decreased 7.3%, which was primarily driven by the ongoing streamlining of the licensed-ratings offering; lower revenues for ESG Risk Ratings, due in part to vendor consolidation; and softness in second-party opinions.
Previous wording
Morningstar Indexes revenue increased $3.0 million or 15.0%. Organic revenue increased 15.7% primarily driven by higher investable product and licensed data revenue as market performance and net inflows over the trailing 12 months increased asset value linked to Morningstar Indexes by 9.7% to $208.7 billion.
Current wording
Morningstar Indexes revenue increased $2.8 million or 6.9% for thesix months ended June 30, 2025. Organic revenue increased 7.0%, primarily driven by higher licensed data revenue, including strong leveraged loan data sales, and some contribution from investable product revenue. Market performance and net inflows over the trailing 12 months increased asset value linked to Morningstar Indexes by 6.5% to $221.0 billion.
Previous wording
Other income (expense), net primarily consists of foreign currency exchange gains (losses) and unrealized gains (losses) on investments.
Current wording
Other expense, net primarily consists of foreign currency exchange gains (losses) and unrealized gains (losses) on investments.
Previous wording
Our effective tax rate in thefirst quarterof 2025 was 25.9%, an increase of 1.0 percentage point compared with the same period in the prior year.
Current wording
Our effective tax rate in the second quarter and first six months of 2025 was 22.8% and 24.3%, respectively, reflecting an increase of 1.1 and 1.0 percentage points, respectively, compared with the same periods in the prior year.
Previous wording
As of March 31, 2025, we had cash, cash equivalents, and investments totaling $559.2 million, compared with $551.0 million as of December 31, 2024, an increase of $8.2 million.
Current wording
As of June 30, 2025, we had cash, cash equivalents, and investments totaling $541.6 million, compared with $551.0 million as of December 31, 2024, a decrease of $9.4 million.
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Current report — wording carried from elsewhere
In the first six months of 2025, consolidated revenue increased 6.5% to$1,187.0 million. Foreign currency movements decreased revenue by$0.5 million.
Current report — wording carried from elsewhere
Morningstar Wealth adjusted operating income increased$10.0 million and adjusted operating margin increased 8.2 percentage points for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Morningstar Retirement total revenue increased $3.6 million, or 5.8% on a reported and organic basis for thesix months ended June 30, 2025. Growth was driven by positive net flows and market gains, supported by strong growth in traditional and Advisor Managed Accounts and custom models.
Current report — wording carried from elsewhere
Morningstar Sustainalytics revenue decreased$1.9 million or 6.5% for the three months ended June 30, 2025. Organic revenue decreased 9.8%, which was primarily driven by the ongoing streamlining of the licensed-ratings offering, as well as lower revenues for ESG Risk Ratings, due in part to vendor consolidation.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Growth was primarily driven by the PitchBook platform. PitchBook platform growth drivers were consistent with recent quarters and reflected strength in PitchBook's core investor and advisor client segments, including private equity and investment banks.