Morningstar, Inc.

For the period ended Sep 30, 2025. Filed Oct 30, 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.

Sep 30, 2025 · Filed Oct 30, 2025

MORN$246.15+0.8%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits

Contents

Item 1. Financial Statements

Unaudited Consolidated Statements of Income

	Three months ended September 30,		Nine months ended September 30,
(in millions, except per share amounts)	2025	2024	2025	2024
Revenue	$617.4	$569.4	$1,804.4	$1,684.1
Operating expense:
Cost of revenue	241.7	222.7	703.7	663.5
Sales and marketing	115.5	107.9	347.8	323.8
General and administrative	85.9	77.6	244.4	238.2
Depreciation and amortization	47.0	45.7	142.8	142.0
Total operating expense	490.1	453.9	1,438.7	1,367.5
Other operating income	0.5	—	1.3	—
Operating income	127.8	115.5	367.0	316.6
Non-operating income (expense), net:
Interest expense, net	(7.0)	(8.9)	(19.8)	(30.7)
Gain on sale of business	—	45.3	—	45.3
Other income (expense), net	2.3	—	0.9	(2.8)
Non-operating income (expense), net	(4.7)	36.4	(18.9)	11.8
Income before income taxes and equity in investments of unconsolidated entities	123.1	151.9	348.1	328.4
Equity in investments of unconsolidated entities	(0.1)	(2.6)	(3.9)	(5.3)
Income tax expense	31.4	29.6	85.1	70.1
Consolidated net income	$91.6	$119.7	$259.1	$253.0
Net income per share:
Basic	$2.18	$2.79	$6.12	$5.91
Diluted	$2.17	$2.77	$6.08	$5.87
Dividends per common share:
Dividends declared per common share	$0.46	$0.41	$1.37	$1.22
Dividends paid per common share	$0.46	$0.41	$1.37	$1.22
Weighted average shares outstanding:
Basic	42.1	42.9	42.4	42.8
Diluted	42.3	43.2	42.6	43.1

Unaudited Consolidated Statements of Comprehensive Income

	Three months ended September 30,		Nine months ended September 30,
(in millions)	2025	2024	2025	2024
Consolidated net income	$91.6	$119.7	$259.1	$253.0
Other comprehensive income (loss), net
Foreign currency translation adjustment	(10.7)	24.3	47.9	12.3
Unrealized gains (losses) on securities, net of tax	—	—	0.1	—
Other comprehensive income (loss), net	(10.7)	24.3	48.0	12.3
Comprehensive income	$80.9	$144.0	$307.1	$265.3

Consolidated Balance Sheets

(in millions, except share amounts)	As of September 30, 2025 (unaudited)	As of December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$474.2	$502.7
Investments	40.3	48.3
Accounts receivable, less allowance for credit losses of $6.3 million and $7.1 million, respectively	363.9	358.1
Income tax receivable	12.9	12.4
Deferred commissions	34.9	39.2
Prepaid expenses	41.8	42.1
Other current assets	11.2	11.3
Total current assets	979.2	1,014.1
Goodwill	1,614.7	1,562.0
Intangible assets, net	396.0	408.8
Property, equipment, and capitalized software, less accumulated depreciation and amortization of $884.9 million and $790.4 million, respectively	225.9	218.9
Operating lease assets	164.4	181.2
Investments in unconsolidated entities	71.8	85.3
Deferred tax assets	65.7	43.2
Deferred commissions	29.5	26.6
Other assets	10.4	8.8
Total assets	$3,557.6	$3,548.9
Liabilities and equity
Current liabilities:
Deferred revenue	$563.9	$540.8
Accrued compensation	231.0	272.2
Accounts payable and accrued liabilities	90.4	87.3
Operating lease liabilities	39.9	35.1
Income tax payable	9.6	30.5
Other current liabilities	10.7	1.4
Total current liabilities	945.5	967.3
Operating lease liabilities	153.8	170.3
Accrued compensation	20.0	21.0
Deferred tax liabilities	27.2	27.6
Long-term debt	848.9	698.6
Deferred revenue	21.0	22.4
Income tax payable	13.5	11.7
Other long-term liabilities	13.7	11.4
Total liabilities	$2,043.6	$1,930.3
Equity:
Morningstar, Inc. shareholders’ equity:
Common stock, no par value, 200,000,000 shares authorized, of which 41,506,582 and 42,869,380 shares were outstanding as of September 30, 2025 and December 31, 2024, respectively	—	—

Accumulated other comprehensive loss:
Treasury stock at cost, 13,455,133 and 12,010,630 shares as of September 30, 2025 and December 31, 2024, respectively	(1,386.8)	(993.9)
Additional paid-in capital	861.4	822.7
Retained earnings	2,110.8	1,909.2
Currency translation adjustment	(71.4)	(119.3)
Unrealized loss on available-for-sale investments	—	(0.1)
Total accumulated other comprehensive loss	(71.4)	(119.4)
Total equity	1,514.0	1,618.6
Total liabilities and equity	$3,557.6	$3,548.9

Unaudited Consolidated Statements of Equity

For the three and nine months ended September 30, 2025 and 2024

	Morningstar, Inc. Shareholders’ Equity
Common Stock · Additional Paid-in Capital · Retained Earnings · Accumulated Other Comprehensive Loss
(in millions, except share and per share amounts) · Shares Outstanding · Par Value · Treasury Stock · Total Equity
Balance as of December 31, 2024	42,869,380		$—		$(993.9)		$822.7		$1,909.2		$(119.4)		$1,618.6
Net income		—		—		—		78.5		—		78.5
Other comprehensive income (loss):
Unrealized gains (losses) on securities, net of tax		—		—		—		—		—		—
Foreign currency translation adjustment, net		—		—		—		—		17.0		17.0
Other comprehensive income, net		—		—		—		—		17.0		17.0
Issuance of common stock related to vesting of stock units, net of shares withheld for taxes on settlements of stock units	69		—		—		—		—		—		—
Reclassification of awards previously liability-classified that were converted to equity		—		—		16.0		—		—		16.0
Stock-based compensation		—		—		9.1		—		—		9.1
Common shares repurchased	(368,199)		—		(110.7)		—		—		—		(110.7)
Dividends declared ($0.46 per share)		—		—		—		(19.3)		—		(19.3)
Balance as of March 31, 2025	42,501,250		$—		$(1,104.6)		$847.8		$1,968.4		$(102.4)		$1,609.2
Net income		—		—		—		89.0		—		89.0
Other comprehensive income (loss):
Unrealized gains (losses) on securities, net of tax		—		—		—		—		0.1		0.1
Foreign currency translation adjustment, net		—		—		—		—		41.6		41.6
Other comprehensive income, net		—		—		—		—		41.7		41.7
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	74,151		—		1.2		(13.2)		—		—		(12.0)
Stock-based compensation		—		—		18.4		—		—		18.4
Common shares repurchased	(398,442)		—		(112.6)		—		—		—		(112.6)
Dividends declared ($0.46 per share)		—		—		—		(19.2)		—		(19.2)
Balance as of June 30, 2025	42,176,959		$—		$(1,216.0)		$853.0		$2,038.2		$(60.7)		$1,614.5
Net income		—		—		—		91.6		—		91.6
Other comprehensive income (loss):
Unrealized gains (losses) on securities, net of tax		—		—		—		—		—		—
Foreign currency translation adjustment, net		—		—		—		—		(10.7)		(10.7)
Other comprehensive loss, net		—		—		—		—		(10.7)		(10.7)
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	59,301		—		1.2		(10.2)		—		—		(9.0)
Stock-based compensation		—		—		18.6		—		—		18.6
Common shares repurchased	(729,678)		—		(172.0)		—		—		—		(172.0)
Dividends declared ($0.46 per share)		—		—		—		(19.0)		—		(19.0)
Balance as of September 30, 2025	41,506,582		$—		$(1,386.8)		$861.4		$2,110.8		$(71.4)		$1,514.0

	Morningstar, Inc. Shareholders’ Equity
Accumulated Other Comprehensive Loss
Common Stock · Additional Paid-in Capital · Retained Earnings
(in millions, except share and per share amounts) · Shares Outstanding · Par Value · Treasury Stock · Total Equity
Balance as of December 31, 2023	42,728,182		$—		$(985.5)		$789.0		$1,610.8		$(86.5)		$1,327.8
Net income		—		—		—		64.2		—		64.2
Other comprehensive income (loss):
Unrealized gains (losses) on securities, net of tax		—		—		—		—		—		—
Foreign currency translation adjustment, net		—		—		—		—		(10.6)		(10.6)
Other comprehensive loss, net		—		—		—		—		(10.6)		(10.6)
Issuance of common stock related to vesting of stock units, net of shares withheld for taxes on settlements of stock units	17,388		—		—		(3.2)		—		—		(3.2)
Reclassification of awards previously liability-classified that were converted to equity		—		—		10.8		—		—		10.8
Stock-based compensation		—		—		11.4		—		—		11.4
Dividends declared ($0.41 per share)		—		—		—		(17.3)		—		(17.3)
Balance as of March 31, 2024	42,745,570		$—		$(985.5)		$808.0		$1,657.7		$(97.1)		$1,383.1
Net income		—		—		—		69.1		—		69.1
Other comprehensive income (loss):	`
Unrealized gains (losses) on securities, net of tax		—		—		—		—		—		—
Foreign currency translation adjustment, net		—		—		—		—		(1.4)		(1.4)
Other comprehensive loss, net		—		—		—		—		(1.4)		(1.4)
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	93,002		—		1.6		(15.9)		—		—		(14.3)
Reclassification of awards previously liability-classified that were converted to equity		—		—		0.4		—		—		0.4
Stock-based compensation		—		—		14.2		—		—		14.2
Dividends declared ($0.41 per share)		—		—		—		(17.4)		—		(17.4)
Balance as of June 30, 2024	42,838,572		$—		$(983.9)		$806.7		$1,709.4		$(98.5)		$1,433.7
Net Income		—		—		—		119.7		—		119.7
Other comprehensive income (loss):
Unrealized gains (losses) on securities, net of tax		—		—		—		—		—		—
Foreign currency translation adjustment, net		—		—		—		—		24.3		24.3
Other comprehensive income, net		—		—		—		—		24.3		24.3
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	45,609		—		2.3		(10.2)		—		—		(7.9)
Reclassification of awards previously liability-classified that were converted to equity		—		—		0.1		—		—		0.1
Stock-based compensation		—		—		13.2		—		—		13.2
Dividends declared ($0.41 per share)	—		—		—		—		(17.4)		—		(17.4)
Balance as of September 30, 2024	42,884,181		$—		$(981.6)		$809.8		$1,811.7		$(74.2)		$1,565.7

Unaudited Consolidated Statements of Cash Flows

	Nine months ended September 30,
(in millions)	2025	2024
Operating activities
Consolidated net income	$259.1	$253.0
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization	142.8	142.0
Deferred income taxes	(30.0)	(21.0)
Stock-based compensation expense	46.1	38.8
Provision for bad debt	2.5	6.3
Equity in investments of unconsolidated entities	3.9	5.3
Gain on sale of business	—	(45.3)
Other, net	(3.3)	2.8
Changes in operating assets and liabilities:
Accounts receivable	0.8	8.2
Accounts payable and accrued liabilities	(2.6)	4.7
Accrued compensation and deferred commissions	(24.6)	16.1
Income taxes	(18.7)	25.2
Deferred revenue	6.0	18.5
Other assets and liabilities	3.7	(16.4)
Cash provided by operating activities	385.7	438.2
Investing activities
Purchases of investment securities	(18.5)	(12.5)
Proceeds from maturities and sales of investment securities	32.6	23.6
Capital expenditures	(104.4)	(102.1)
Acquisitions, net of cash acquired	(39.1)	—
Proceeds from sale of business	—	52.2
Purchases of investments in unconsolidated entities	(3.3)	(6.8)
Other, net	5.1	0.2
Cash used for investing activities	(127.6)	(45.4)
Financing activities
Common shares repurchased	(391.7)	—
Dividends paid	(58.0)	(52.0)
Proceeds from revolving credit facility	370.0	90.0
Repayment of revolving credit facility	(220.0)	(105.0)
Repayment of term facility	—	(93.1)
Employee taxes withheld for stock awards	(21.0)	(25.4)
Other, net	—	0.2
Cash used for financing activities	(320.7)	(185.3)
Effect of exchange rate changes on cash and cash equivalents	34.1	7.5
Net increase (decrease) in cash and cash equivalents	(28.5)	215.0
Cash and cash equivalents—beginning of period	502.7	337.9
Cash and cash equivalents—end of period	$474.2	$552.9
Supplemental disclosure of cash flow information
Cash paid for income taxes	$134.0	$66.0
Cash paid for interest	$24.3	$36.9

ContentsView on SEC.gov

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