Morningstar, Inc.
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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.
Mar 31, 2026 · Filed Apr 29, 2026
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 2025-09-30; filed 2025-10-30.
0001289419-25-000168
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001289419-26-000025
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 175 previous paragraphs and 159 current paragraphs.
77 unchanged; 54 reworded; 28 added; 42 removed; 2 previous and 0 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 (28)
Current report
•triggering events for impairment of goodwill or assets;
Current report
•failing to recognize deferred revenue;
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•our ability to repurchase shares of our common stock;
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•impact on our stock price due to market conditions, any future sales of our common stock, and fluctuations in our operating results; and
Current report
Our mission is to empower investor success. We deliver connected data, independent research, investor-first tools, and long-term portfolio strategies with a focus on removing frictions that can slow decisions, cloud markets, and drive up costs.
Current report
Cost of revenue increased $7.5 million in the first quarter of 2026. Higher compensation expense of $4.6 million in the first quarter of 2026 was the largest contributor to the increase, primarily driven by unfavorable currency translation related to US dollar weakness. Technology infrastructure costs were also a driver due to the company's investment in and renewal of various SaaS-based platforms across the business.
Current report
Sales and marketing expense increased $2.6 million in the first quarter of 2026. Advertising and marketing costs increased $1.9 million due to an increase in paid advertising.
Current report
Depreciation expense decreased slightly in the first quarter of 2026 while intangible amortization expense increased $4.6 million, primarily from additional amortization related to intangibles from the acquisition of the Center for Research in Security Prices (CRSP).
Current report
The following table presents results for Morningstar Direct Platform:
Current report
Morningstar Data contributed $9.4 million to revenue growth, with revenue increasing 9.4% or 6.3%on an organic basis. The increase in Morningstar Data was driven in part by expansion with existing clients supported by new use cases, with continued strength in managed investment data and Morningstar Essentials products.
Current report
Morningstar Direct contributed $6.8 million to revenue growth, with revenue increasing 9.4% or 6.0% on an organic basis, reflecting increased revenue per license and expansion with existing clients in reporting solutions despite a decline of 1.8% in Direct Licenses compared with the prior-year period as some client workflows shifted.
Current report
Morningstar Direct Platform adjusted operating income increased $3.9 million, or 4.5%, and adjusted operating margin decreased 1.4 percentage points for the three months ended March 31, 2026. The decline in adjusted operating margin was due in part to a shift of additional research and sales resources to support Direct Platform growth priorities, partially offset by targeted reorganizations in the fourth quarter of 2025.
Current report
The following table presents results for PitchBook:
Current report
PitchBook total revenue increased $8.7 million, or 5.3%, for the three months ended March 31, 2026. Revenue grew 4.8% on an organic basis.
Current report
Growth was primarily driven by the PitchBook platform with strength in the direct data business, which continued to expand from a smaller base. The increase in PitchBook revenue reflected contributions from its core investor and advisor client segments, although growth slowed, especially in venture capital, while the corporate client segment continued to experience softness. Licensed user counts were relatively flat compared to the prior-year period, reflecting the addition of new logos offset by churn within the corporate segment.
Current report
PitchBook adjusted operating income decreased $0.7 million, or 1.3%, and adjusted operating margin decreased 2.0 percentage points for the three months ended March 31, 2026. The decline in adjusted operating margin was due in part to higher advertising expenses and an increase in compensation costs, which included the impact of additional headcount to support new growth initiatives.
Current report
PitchBook depreciation expense was$7.9 million and $7.8 million for thethree months ended March 31, 2026.
Current report
The following table presents results for Morningstar Credit:
Current report
The following table presents results for Morningstar Wealth:
Current report
The following table presents results for Morningstar Retirement:
Current report
Morningstar Retirement adjusted operating income increased $5.2 million and adjusted operating margin increased 6.6 percentage points for thethree months ended March 31, 2026. Adjusted operating income included the impact of a discrete expense related to a correction of a client's participant accounts.
Current report
Morningstar Indexes revenue increased $9.8 million, or 42.6%, for the three months ended March 31, 2026. Organic revenue was roughly flat. Organic revenue growth excludes revenue associated with CRSP and foreign currency impact. Asset value linked to Morningstar Indexes increased to $3.2 trillion from $208.7 billion in the prior-year period, driven by the inclusion of $2.9 trillion of assets linked to CRSP indexes, along with market performance and net inflows over the trailing 12 months.
Current report
Non-Operating Expense, Net
Current report
Our effective tax rate in the first quarter of 2026 was 24.4%, reflecting a decrease of 1.5 percentage points compared with the same period in the prior year.
Current report
The Organization for Economic Co-operation and Development (OECD) has proposed a global minimum tax of 15% of reported profits (Pillar Two) that has been agreed upon in principle by over 140 countries. Since the proposal, many countries incorporated Pillar Two model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar Two differently than the model rules and on different timelines. On January 5, 2026, the OECD announced changes to the model rules to include the “side by side” arrangement, which contains simplification measures as well as an exemption for US parented companies from certain aspects of the Pillar Two regime. The updated model rules will need to be enacted into local legislation to become effective. Pillar Two did not have a material impact on our consolidated financial statements as of March 31, 2026. We are continuing to monitor developments and administrative guidance in addition to evaluating the potential impact of Pillar Two on our consolidated financial statements for future periods.
Current report
As of March 31, 2026, the total outstanding debt under the 2025 Credit Agreement was $1.4 billion, net of debt issuance costs, including $375.0 million drawn under the 2025 A-1 Facility, $375.0 million drawn under the 2025 A-2 Facility, and $615.0 million drawn under the 2025 Revolving Credit Facility. The company's borrowing availability includes $135.0 million under the 2025 Revolving Credit Facility.
Current report
The proceeds borrowed under the 2025 Facility were used to refinance existing indebtedness under the company's prior credit agreement, pay fees and expenses in connection with the 2025 Facility, finance the acquisition of CRSP, and for general corporate purposes.
Current report
The interest rate applicable to loans under the 2025 Credit Agreement will be based on the SOFR, SONIA, EURIBOR, Term CORRA, or BBSY depending on the currency of the loan and will include an applicable margin for such loans, which ranges between 1.05% and 1.425%, based on Morningstar’s consolidated net leverage ratio and other applicable adjustments as further described in the 2025 Credit Agreement.
Removed paragraphs (42)
Previous report
Our mission is to empower investor success. The investing ecosystem is complex, and navigating it with confidence requires a trusted, independent voice. We deliver our perspective to institutions, advisors, and individuals with a single-minded purpose: to empower every investor with conviction that they can make better-informed decisions and realize success on their own terms.
Previous report
License-based revenue increased 5.8%, or 6.1% on an organic basis, during the first nine months of 2025, primarily driven by strong demand for PitchBook and Morningstar Direct Platform products.
Previous report
Asset-based revenue increased 3.0%, or 7.3% on an organic basis, during the first nine months of 2025, primarily driven by increases in Morningstar Wealth and Morningstar Retirement.
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Transaction-based revenue increased 18.6%, or 18.4% on an organic basis, during the first nine months of 2025, primarily driven by Morningstar Credit revenue.
Previous report
Cost of revenue increased $19.0 million in the third quarter of 2025 and $40.2 million in thefirst nine months of 2025. Higher compensation expense of $15.8 million and $32.9 million in the third quarter and the first nine months of 2025, respectively, was the largest contributor to the increase, primarily driven by an increase in salaries related in part to the company's annual merit increase. Higher bonus expense was also a contributor during the third quarter of 2025, reflecting strong results relative to targets. Higher severance costs was also a driver to the increase in the first nine months of 2025 driven by the announced sunsetting of Morningstar Office during the first quarter of 2025 and a targeted reorganization in Morningstar Sustainanalytics during the second quarter of 2025.
Previous report
Sales and marketing expense increased $7.6 million in the third quarter of 2025 and $24.0 million in thefirst nine months of 2025. Compensation expense increased $6.6 million during the third quarter of 2025 and $15.2 million in the first nine months of 2025 due to an increase in sales commission expense, company-sponsored benefits, salaries, and payroll taxes. Advertising and marketing costs also increased $7.1 million during the first nine months of 2025 due to increased costs associated with marketing and brand campaigns, as well as paid advertising.
Previous report
Depreciation expense increased $1.0 million in the third quarter of 2025 and $6.3 million in thefirst nine months of 2025 due primarily to higher capitalized software costs for product enhancements in prior periods.
Previous report
Intangible amortization expense was flat during the third quarter of 2025 and decreased $5.1 million in thefirst nine months of 2025 as certain intangible assets from some of our earlier acquisitions became fully amortized.
Previous report
Consolidated operating income increased $50.4 million in thefirst nine months of 2025, reflecting an increase in revenue of $120.3 million, partially offset by an increase in operating expense of $71.2 million. Operating margin was 20.3% in thefirst nine months of 2025, an increase of 1.5 percentage points compared with thefirst nine months of 2024.
Previous report
The following table presents the results for Morningstar Direct Platform:
Previous report
Morningstar Direct Platform total revenue increased $12.6 million, or 6.3%, for the three months ended September 30, 2025. Revenue grew 6.2% 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 report
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 report
Morningstar Data contributed $10.6 million to revenue growth, with revenue increasing 10.9% or 7.7%on an organic basis. Increases in managed investment data helped drive Morningstar Data growth.
Previous report
Morningstar Direct contributed $5.2 million to revenue growth, with revenue increasing 7.3% or 5.6% on an organic basis, with growth across geographies. Morningstar Direct licenses were flat compared to the prior-year period.
Previous report
Morningstar Direct Platform adjusted operating income increased $2.3 million, or 2.5%, and adjusted operating margin decreased 1.6 percentage points for the three months ended September 30, 2025. The decline in adjusted operating margin reflected higher compensation costs, primarily driven by the annual merit increase and higher bonus expense reflecting outperformance relative to targets; the impact of the sale of the company's Commodity and Energy Data business; and increased depreciation primarily driven by higher capitalized software costs for product enhancements in prior periods.
Previous report
Morningstar Direct Platform adjusted operating income increased $7.2 million, or 2.7%, and adjusted operating margin decreased 0.9 percentage points for thenine months ended September 30, 2025 driven by the same factors noted above.
Previous report
The following table presents the results for PitchBook:
Previous report
PitchBook total revenue increased $12.4 million, or 7.9%, for the three months ended September 30, 2025. Revenue grew 7.7% on an organic basis.
Previous report
Growth was primarily driven by the PitchBook platform with contributions from the small-but-growing direct data business. PitchBook platform growth drivers were consistent with recent quarters with strength in PitchBook's core investor and advisor client segments, including private equity, credit, and investment banks, partially offset by continued softness in the corporate client segment, especially among smaller firms with more limited use cases during periods of slower deal activity. PitchBook licensed users were flat compared to the prior-year period, reflecting the addition of new logos offset by churn and including the impact of the rationalization of user lists associated with recent large enterprise renewals. In the quarter, the company updated its definition of licensed user counts, primarily to exclude Morningstar and PitchBook employees.
Previous report
PitchBook adjusted operating income increased $2.5 million, or 5.0%, and adjusted operating margin decreased 0.9 percentage points for thethree months ended September 30, 2025. The decline in adjusted operating margin was primarily due to higher compensation costs, which included the impact of increased headcount in product development and technology, as well as higher health care costs.
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PitchBook total revenue increased $43.3 million, or 9.5% for the nine months ended September 30, 2025. Revenue grew 9.4% on an organic basis, primarily driven by the PitchBook platform.
Previous report
PitchBook adjusted operating income increased$20.3 million, or 14.7%, and adjusted operating margin increased 1.5 percentage points for the nine months ended September 30, 2025.
Previous report
PitchBook depreciation expense was$8.7 million and $7.6 million for thethree months ended September 30, 2025 and 2024, respectively, and $24.6 million and $23.3 million for thenine months ended September 30, 2025 and 2024, respectively.
Previous report
The following table presents the results for Morningstar Credit:
Previous report
Morningstar Credit total revenue increased $40.3 million, or 19.3%, for the nine months ended September 30, 2025. Revenue grew 19.0% on an organic basis. Revenue grew across asset classes and geographies, with particular strength in US commercial mortgage- and asset-backed securities ratings revenue and Canadian and European corporate ratings revenue.
Previous report
Morningstar Credit adjusted operating income increased$24.6 million, or 44.4%, and adjusted operating margin increased 5.6 percentage points for the nine months ended September 30, 2025.
Previous report
The following table presents the results for Morningstar Wealth:
Previous report
Morningstar Wealth total revenue increased $4.3 million, or 2.3%, for thenine months ended September 30, 2025. Revenue grew 8.3% on an organic basis, primarily driven by growth in Investment Management and increased advertising sales.
Previous report
Morningstar Wealth adjusted operating income increased$13.8 million and adjusted operating margin increased 7.4 percentage points for the nine months ended September 30, 2025.
Previous report
The following table presents the results for Morningstar Retirement:
Previous report
Morningstar Retirement adjusted operating income remained flat at$16.9 million, and adjusted operating margin decreased 3.7 percentage points for thethree months ended September 30, 2025. The decline in adjusted operating margin was primarily driven by higher compensation costs, which included the impact of the annual merit increase and increased commissions; and higher marketing expenses, including costs related to campaign tracking and data management.
Previous report
Morningstar Retirement total revenue increased $6.0 million, or 6.4% on a reported and organic basis for thenine months ended September 30, 2025. Growth was driven by positive net flows and market gains, supported by strong growth in traditional and Advisor Managed Accounts.
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Morningstar Retirement adjusted operating income decreased $1.5 million, or 3.1%, and adjusted operating margin decreased 4.7 percentage points for the nine months ended September 30, 2025 driven by the same factors noted above.
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Morningstar Sustainalytics revenue decreased$3.7 million, or 4.2%, for thenine months ended September 30, 2025. Organic revenue decreased 5.9%, which was primarily due to a decline in revenue from the corporate licensed-rating product.
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Morningstar Indexes revenue decreased $0.1 million, or 0.5%, for the three months ended September 30, 2025. Organic revenue decreased 0.8%, reflecting lower investable product revenue driven by outflows and lower AUMA for certain higher margin products.
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Morningstar Indexes revenue increased $2.7 million, or 4.3%, for thenine months ended September 30, 2025. Organic revenue increased 4.3%, primarily driven by higher licensed data revenue. Market performance and net inflows over the trailing 12 months increased asset value linked to Morningstar Indexes by 4.1% to $237.5 billion.
Previous report
Non-Operating Income (Expense), Net
Previous report
Effective September 30, 2024, we sold our Commodity and Energy Data business from the Morningstar Direct Platform segment for a purchase price of $52.4 million and recorded a $45.3 million gain on sale of business in the Consolidated Statements of Income for the three and nine months ended September 30, 2024.
Previous report
Our effective tax rate in the third quarter and first nine months of 2025 was 25.5% and 24.7%, respectively, reflecting an increase of 5.7 and 3.0 percentage points, respectively, compared with the same periods in the prior year. The increase is primarily attributable to the book gain in excess of taxable gain on the sale of our Commodity and Energy Data business in the third quarter of 2024.
Previous report
The interest rate applicable to any loan under the Amended 2022 Credit Agreement is, at the company's option, either: (i) the applicable Secured Overnight Financing Rate plus an applicable margin for such loans, which ranges between 1.00% and 1.48%, based on the company's consolidated leverage ratio or (ii) the lender's base rate plus the applicable margin for such loans, which ranges between 0.00% and 0.38%, based on the company's consolidated leverage ratio.
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Reworded paragraphs (54)
Previous wording
The discussion included in this section, as well as other under sections of this Quarterly Report on Form 10-Q (this Quarterly Report), contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations about future events or future financial performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as “aim,” “committed,” “consider,” “estimate,” “future,” “goal,” “is designed to,” “maintain,” “may,” “might,” “objective,” “ongoing,” “could,” “expect,” “intend,” “plan,” “possible,” “potential,” “seek,” “anticipate,” “believe,” “predict,” “prospects,” “continue,” “strategy,” “strive,” “will,” “would,” "determine," "evaluate," or the negative thereof, and similar expressions. These statements involve known and unknown risks and uncertainties that may cause the events we discuss not to occur or to differ significantly from what we expect. For us, these risks and uncertainties include, among others:
Current wording
The discussion included in this section, as well as other sections of this Quarterly Report on Form 10-Q (this Quarterly Report), contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations about future events or future financial performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as “committed,” “consider,” “estimate,” “future,” “goal,” “is designed to,” “maintain,” “may,” “objective,” “ongoing,” “could,” “expect,” “intend,” “plan,” “possible,” “potential,” “anticipate,” “believe,” “predict,” “continue,” “strategy,” “will,” “would,” "determine," "evaluate," or the negative thereof, and similar expressions. These statements involve known and unknown risks and uncertainties that may cause the events we discuss not to occur or to differ significantly from what we expect. For us, these risks and uncertainties include, among others:
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•Failing to consummate the Center for Research in Security Prices, LLC (CRSP) acquisition on a timely basis or at all, or failing to achieve the anticipated benefits of the CRSP acquisition;
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•failing to achieve the anticipated benefits of the Center for Research in Security Prices, LLC (CRSP) acquisition;
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•failure to prevent and/or mitigate cybersecurity events and the failure to protect confidential information, including personal information about individuals;
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•failing to prevent and/or mitigate cybersecurity events and the failure to protect confidential information, including personal information about individuals;
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•changing economic conditions, including prolonged volatility, recessions, or downturns affecting the financial sector and global financial markets, fluctuating interest rates, and the impacts of global trade policies, may negatively impact our financial results, including those of our asset-based businesses;
Current wording
•changing economic and market conditions, including prolonged volatility, recessions, or downturns affecting the financial, data and software sectors and global financial markets, fluctuating interest rates, and the impacts of global trade policies, may negatively impact our financial results, including those of our asset-based businesses;
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•compliance failures, regulatory action, or changes in laws applicable to our regulated businesses;
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•compliance failures, regulatory action, or changes in or expansion of laws applicable to our regulated businesses;
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•the impact of AI technologies on our business and reputation, and the legal risks as they are incorporated into our products and tools;
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•the impact of artificial intelligence (AI) technologies on our business, as well as legal and reputational risks as they are incorporated into our products and tools;
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•failure to detect errors in our products or failure of our products to perform properly due to defects, malfunctions, or similar problems;
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•failing to detect errors in our products or methodology or our products performing improperly due to defects, malfunctions, or similar problems;
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•failure of our strategic transactions, acquisitions, divestitures, and investments in companies or technologies to yield expected business or financial benefits, negatively impacting our operating results and our ability to deliver long-term value to shareholders;
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•our strategic transactions, acquisitions, divestitures, and investments in companies or technologies failing to yield expected business or financial benefits, negatively impacting our operating results and our ability to deliver long-term value to shareholders;
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•liability, costs, and reputational risks relating to environmental, social, and governance considerations;
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•liability, regulatory scrutiny, costs, and reputational risks relating to environmental, social, and governance considerations;
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•the impact of recently issued accounting pronouncements on our consolidated financial statements and related disclosures; and
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•the impact of recently issued accounting pronouncements on our consolidated financial statements and related disclosures;
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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 Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 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.
Current wording
A more complete description of these risks and uncertainties, among others, 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, 2025 (our Annual Report). 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
Our strategy is to deliver insights and experiences that make us essential to investor workflow. Proprietary data sets, meaningful analytics, independent research, and effe ctive investment strategies are at the core of the powerful digital solutions that investors across our client segments rely on. We have a keen focus on innovation across data, research, product, and delivery so that we can effectively cater to the evolving needs and expectations of investors globally.
Current wording
Our strategy is to deliver insights and experiences that make us essential to investor workflow.
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The company has seven operating segments, which are presented as the following five reportable segments: Morningstar Direct Platform (formerly named Morningstar Data and Analytics), PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. The operating segments of Morningstar Sustainalytics and Morningstar Indexes do not individually meet the quantitative segment reporting thresholds and have been combined and presented as part of Corporate and All Other, which is not a reportable segment. Prior-period segment information is presented on a comparable basis to the basis on which current period segment information is presented and reviewed by the chief operating decision maker (CODM). For additional information about our segment reporting, refer to Note 8 of the Notes to our Unaudited Consolidated Financial Statements.
Current wording
The company has seven operating segments, which are presented as the following five reportable segments: Morningstar Direct Platform, PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. The operating segments of Morningstar Sustainalytics and Morningstar Indexes do not individually meet the quantitative segment reporting thresholds and have been combined and presented as part of Corporate and All Other, which is not a reportable segment. Prior-period segment information is presented on a comparable basis to the basis on which current period segment information is presented and reviewed by the chief operating decision maker (CODM). For additional information about our segment reporting, refer to Note 7 of the Notes to our Unaudited Consolidated Financial Statements.
Previous 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.
Current wording
License-based: Generated mostly by our Morningstar Direct Platform and PitchBook segments, revenue through license agreements is derived from 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.
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Three and Nine Months Ended September 30, 2025 vs. Three and Nine Months Ended September 30, 2024
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Three Months Ended March 31, 2026 vs. Three Months Ended March 31, 2025
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(1)Corporate and All Other provides a reconciliation between revenue from our reportable segments and consolidated revenue. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes as sources of revenues.
Current wording
(1)Corporate and All Other provides a reconciliation between revenue from our Total Reportable Segments and consolidated revenue amounts. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes as sources of revenues. Revenue from Morningstar Sustainalytics was $26.6 million and $28.8 million for the three months ended March 31, 2026 and 2025, respectively. Revenue from Morningstar Indexes was $32.8 million and $23.0 million for the three months ended March 31, 2026 and 2025, respectively.
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In the third quarter of 2025, consolidated revenue increased 8.4% to $617.4 million. Foreign currency movements increased revenue by $4.5 million.
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In the first quarter of 2026, consolidated revenue increased 10.8% to $644.8 million. Foreign currency movements increased revenue by $13.5 million.
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License-based revenue increased 6.4%, or 5.9% on an organic basis, during the third quarter of 2025, primarily driven by strong demand for Morningstar Direct Platform and PitchBook products.
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License-based revenue increased 6.4%, or 2.6% on an organic basis, during the first quarter of 2026, primarily driven by strong demand for Morningstar Direct Platform and PitchBook products.
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Asset-based revenue increased 1.1% on a reported basis, or 7.9% on an organic basis, during the third quarter of 2025. The increase in reported asset-based revenue was primarily driven by an increase in Morningstar Retirement products. Asset-based organic revenue growth was primarily driven by increases in Morningstar Wealth and Morningstar Retirement.
Current wording
Asset-based revenue increased 11.0% on a both a reported and organic basis, during the first quarter of 2026. The increase in reported asset-based revenue was primarily driven by an increase in Morningstar Retirement products.
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Transaction-based revenue increased 27.2%, or 26.1% on an organic basis, during the third quarter of 2025, primarily driven by Morningstar Credit revenue.
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Transaction-based revenue increased 34.0%, or 30.6% on an organic basis, during the first quarter of 2026, primarily driven by Morningstar Credit revenue.
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Organic revenue increased 9.0% in the third quarter of 2025 and 8.0% in the first nine months of 2025, driven by organic growth in PitchBook, Morningstar Credit, and Morningstar Direct Platform.
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Organic revenue increased 7.6% in the first quarter of 2026, driven by organic growth in Morningstar Credit, Morningstar Direct Platform, and PitchBook.
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International revenue comprised 29% of our consolidated revenue in the third quarter of 2025 and 28% in thefirst nine months of 2025, as well as in both corresponding periods in 2024. Approxima tely 58% of international revenue was generated in Continental Europe and the United Kingdom during the third quarter and first nine months of 2025, which was comparable to the same periods in 2024. Revenue from international operations increased 11.8% and 7.6% during the third quarter andfirst nine monthsof 2025, respectively, driven by strong demand for Morningstar Credit and Morningstar Direct Platform products.
Current wording
International revenue comprised 28% of our consolidated revenue in the first quarter of 2026, which was comparable to the same period in 2025. Approxima tely 58% of international revenue was generated in Continental Europe and the United Kingdom during the first quarter of 2026, which was comparable to the same period in 2025. Revenue from international operations increased 16.1% during the first quarterof 2026, driven by strong demand for Morningstar Credit and Morningstar Direct Platform products.
Previous wording
General and administ rative expense increased $8.3 million in the third quarter of 2025 and $6.2 million in the first nine months of 2025. Higher compensation expense was the largest contributor to the increase in both periods, driven primarily by higher company-sponsored benefits and stock-based compensation reflecting strong results relative to targets.
Current wording
General and administ rative expense increased $7.5 million in the first quarter of 2026. Higher compensation expense of $3.0 million was the largest contributor to the increase, driven primarily by unfavorable currency translation related to US dollar weakness and stock-based compensation. Facilities-related expenses and professional fees also contributed to the increase.
Previous wording
Consolidated operating income increased $12.3 million in the third quarter of 2025, reflecting an increase in revenue of $48.0 million, partially offset by an increase in operating expense of $36.2 million. Operating margin was 20.7%, an increase of 0.4 percentage points compared with the third quarter of 2024.
Current wording
Consolidated operating income increased $41.8 million in the first quarter of 2026, reflecting an increase in revenue of $62.9 million, partially offset by an increase in operating expense of $22.0 million. Operating margin was 24.2%, an increase of 4.6 percentage points compared with the first quarter of 2025.
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We reported adjusted operating income of $150.6 million and $429.4 million in the third quarter of 2025 and first nine months of 2025, respectively. 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 $178.6 million in the first quarter of 2026. 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. For the third quarters of 2025 and 2024, unallocated corporate expenses were $47.1 million and $43.5 million, respectively. For the first nine months of 2025 and 2024, unallocated corporate expenses were $139.0 million and $130.4 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 thefirst quarters of 2026 and 2025, unallocated corporate expenses were $41.8 million in each period. 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 24.4% in the third quarter of 2025 and 23.8% in thefirst nine months 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 27.7% in the first quarter of 2026. 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 $27.4 million, or 4.6%, for thenine months ended September 30, 2025. Revenue grew 5.6% on an organic basis, primarily driven by growth in Morningstar Data and Morningstar Direct.
Current wording
Morningstar Direct Platform total revenue increased$16.0 million, or 8.0%, for the three months ended March 31, 2026. Revenue grew 5.0% on an organic basis, primarily driven by growth in Morningstar Data and Morningstar Direct.
Previous wording
Morningstar Direct Platform depreciation expense was $11.3 million and $9.8 million for the three months ended September 30, 2025 and 2024, respectively, and $33.3 million and $27.5 million for thenine months ended September 30, 2025 and 2024, respectively.
Current wording
Morningstar Direct Platform depreciation expense was $9.5 million and $10.8 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Morningstar Credit total revenue increased $20.2 million, or 28.5%, for thethree months ended September 30, 2025. Revenue grew 27.0% on an organic basis, supported by a robust issuance market. Revenue grew across asset classes and geographies, with particular strength in US commercial mortgage- and asset-backed securities ratings revenue and Canadian and European corporate ratings revenue. Organic revenue growth excludes revenue associated with the Dealview Technologies Limited (DealX) acquisition, which was completed in the first quarter of 2025, and foreign currency impact.
Current wording
Morningstar Credit total revenue increased $28.0 million, or 38.4%, for the three months ended March 31, 2026. Revenue grew 34.3% on an organic basis, supported by a robust issuance market. Revenue grew across geographies and asset classes, with particular strength in Canadian and European corporates and US structured finance ratings revenue. Organic revenue growth excludes revenue associated with DealX for the first two months of the quarter, and foreign currency impact.
Previous wording
Morningstar Credit adjusted operating income increased$12.9 million, or 84.9%, and adjusted operating margin increased 9.4 percentage points for thethree months ended September 30, 2025. The increase in adjusted operating income and margin reflected higher revenue, partially offset by higher compensation costs. The increase in compensation was primarily driven by higher salaries and benefits due to increased headcount to support growth and higher bonus expense, reflecting strong performance relative to targets.
Current wording
Morningstar Credit adjusted operating income increased $19.8 million, or 92.5%, and adjusted operating margin increased 11.5 percentage points for thethree months ended March 31, 2026. The increase in adjusted operating income and margin reflected higher revenue, partially offset by higher compensation costs. The increase in compensation was primarily driven by higher salaries and benefits due to increases in headcount to support growth.
Previous wording
Morningstar Credit depreciation expense was $2.0 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively, and $6.0 million and $5.8 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Morningstar Credit depreciation expense was $1.4 million and $2.0 million for the three months ended March 31, 2026 and 2025.
Previous wording
Morningstar Wealth total revenue increased $0.3 million, or 0.5%, for the three months ended September 30, 2025. Revenue grew 9.8% on an organic basis, primarily driven by Investment Management and increased advertising sales. Organic revenue growth excludes platform revenue associated with US TAMP assets sold to AssetMark from the prior-year period and foreign currency impact. Reported and organic growth included a $1.5 million negative impact from the ongoing sunsetting of Morningstar Office.
Current wording
Morningstar Wealth total revenue decreased$3.3 million, or 5.4%, for the three months ended March 31, 2026. Revenue decreased 1.6% on an organic basis. Organic revenue growth excludes interim service fees received from AssetMark associated with the company's sale of customer assets from the US Morningstar Wealth Turnkey Asset Management Platform from the prior-year period, and foreign currency impact. Reported and organic revenue growth included a $5.5 million negative impact from the sunsetting of Morningstar Office, which was partially offset by growth in ad sales and Investment Management, which grew on an organic basis.
Previous wording
Investment Management total revenue decreased $0.4 million, or 1.1% on a reported basis for the three months ended September 30, 2025. Revenue increased 16.1% on an organic basis. Reported AUMA increased 11.1% to $70.8 billion compared with the prior-year period, primarily driven by market performance, which contributed to higher asset values, and positive net flows to Morningstar Model Portfolios offered on third-party platforms and to the International Wealth Platform, partially offset by net outflows related to the sale of US TAMP assets to AssetMark.
Current wording
Investment Management total revenue increased $0.4 million, or 1.1% on a reported basis for the three months ended March 31, 2026. Revenue increased 10.6% on an organic basis. Reported AUMA decreased 5.3% to $60.4 billion compared with the prior-year period. Excluding the impact of the loss of an Asset Allocation Services client, which accounted for a negligible share of Investment Management revenue, AUMA increased compared to the prior-year period, supported by market appreciation and positive net flows to Morningstar Model Portfolios offered on third-party platforms and the International Wealth Platform.
Previous wording
Morningstar Wealth adjusted operating income increased$3.8 million and adjusted operating margin increased 6.1 percentage points for the three months ended September 30, 2025.
Current wording
Morningstar Wealth adjusted operating income increased $6.4 million and adjusted operating margin increased 11.0 percentage points for the three months ended March 31, 2026.
Previous wording
Morningstar Wealth depreciation expense was $3.0 million and $4.3 million for the three months ended September 30, 2025 and 2024, respectively, and $11.9 million and $14.0 million for thenine months ended September 30, 2025 and 2024, respectively.
Current wording
Morningstar Wealth depreciation expense was $1.6 million and $4.5 million for the three months ended March 31, 2026 and 2025.
Previous wording
Morningstar Retirement total revenue increased $2.4 million, or 7.5% on both a reported and organic basis for the three months ended September 30, 2025. AUMA, calculated using the most recently available average quarterly or monthly data, increased 12.6% to $297.8 billion compared with the prior-year period, primarily due to market gains. Net inflows also contributed to higher AUMA, supported by strong growth in traditional and Advisor Managed Accounts.
Current wording
Morningstar Retirement total revenue increased $5.9 million, or 17.9% on both a reported and organic basis for the three months ended March 31, 2026. AUMA, calculated using the most recently available average quarterly or monthly data, increased 11.7% to $310.0 billion compared with the prior-year period, primarily due to market gains and supported by positive net flows to traditional and Advisor Managed Accounts.
Previous wording
Morningstar Retirement depreciation expense was $2.6 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively, and $7.9 million and $7.6 million for thenine months ended September 30, 2025 and 2024, respectively.
Current wording
Morningstar Retirement depreciation expense was $2.3 million and $2.6 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Corporate and All Other revenue increased $0.1 million, or 0.2% on a reported basis, and decreased $1.0 million, or 0.7% on a reported basis, for the three and nine months ended September 30, 2025, respectively.
Current wording
Corporate and All Other revenue increased $7.6 million, or 14.7% on a reported basis, for the three months ended March 31, 2026.
Previous wording
Morningstar Sustainalytics revenue increased$0.2 million, or 0.7%, for the three months ended September 30, 2025. Organic revenue decreased 3.0% due to the impact of foreign currency.
Current wording
Morningstar Sustainalytics revenue decreased$2.2 million, or 7.6%, for the three months ended March 31, 2026. Organic revenue decreased 14.1%, primarily due to the retirement of the second party opinions product.
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Previous report — wording carried elsewhere
In the first nine months of 2025, consolidated revenue increased 7.1% to$1,804.4 million. Foreign currency movements increased revenue by $5.0 million.
Previous report — wording carried elsewhere
In October 2025, Morningstar completed repurchases under the 2022 Share Repurchase program, and the board of directors approved (i) the termination of the 2022 Share Repurchase Program and (ii) a new three-year share repurchase program that authorizes the company to repurchase up to $1.0 billion in shares of the company's outstanding common stock, effective October 31, 2025. The share repurchase authorization permits the company to repurchase shares of common stock from time to time at prevailing market prices on the open market or in private transactions in amounts that management deems appropriate.