Morningstar, Inc.

For the period ended Mar 31, 2026. Filed Apr 29, 2026.

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.

Mar 31, 2026 · Filed Apr 29, 2026

MORN$246.47+0.1%Stored close · as of Nov 10, 2026

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Contents

Item 1. Financial Statements

Unaudited Consolidated Statements of Income

	Three months ended March 31,
(in millions, except per share amounts)	2026	2025
Revenue	$644.8	$581.9
Operating expense:
Cost of revenue	238.9	231.4
Sales and marketing	115.2	112.6
General and administrative	84.0	76.5
Depreciation and amortization	51.7	47.3
Total operating expense	489.8	467.8
Other operating income	0.9	—
Operating income	155.9	114.1
Non-operating expense, net:
Interest expense, net	(13.7)	(5.4)
Other expense, net	(0.4)	(0.2)
Non-operating expense, net	(14.1)	(5.6)
Income before income taxes and equity in investments of unconsolidated entities	141.8	108.5
Equity in investments of unconsolidated entities	(0.1)	(2.6)
Income tax expense	34.6	27.4
Consolidated net income	$107.1	$78.5
Net income per share:
Basic	$2.74	$1.83
Diluted	$2.73	$1.82
Dividends per common share:
Dividends declared per common share	$0.50	$0.46
Dividends paid per common share	$0.50	$0.46
Weighted average shares outstanding:
Basic	39.1	42.8
Diluted	39.3	43.1

Unaudited Consolidated Statements of Comprehensive Income

	Three months ended March 31,
(in millions)	2026	2025
Consolidated net income	$107.1	$78.5
Other comprehensive income (loss), net
Foreign currency translation adjustment	(11.3)	17.0
Other comprehensive income (loss), net	(11.3)	17.0
Comprehensive income	$95.8	$95.5

Consolidated Balance Sheets

(in millions, except share amounts)	As of March 31, 2026 (unaudited)	As of December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$492.8	$474.5
Investments	39.4	54.2
Accounts receivable, less allowance for credit losses of $7.4 million and $7.1 million, respectively	402.6	390.4
Income tax receivable	15.4	16.2
Deferred commissions	36.5	35.4
Prepaid expenses	57.1	42.5
Other current assets	19.5	24.8
Total current assets	1,063.3	1,038.0
Goodwill	1,747.2	1,610.8
Intangible assets, net	591.4	379.3
Property, equipment, and capitalized software, less accumulated depreciation and amortization of $930.2 million and $899.9 million, respectively	234.8	231.9
Operating lease assets	166.0	159.0
Investments in unconsolidated entities	50.3	50.3
Deferred tax assets, net	86.0	78.7
Deferred commissions	29.8	30.1
Other assets	17.5	12.1
Total assets	$3,986.3	$3,590.2
Liabilities and equity
Current liabilities:
Deferred revenue	$669.3	$586.1
Accrued compensation	144.9	294.2
Accounts payable and accrued liabilities	104.6	97.9
Current portion of long-term debt	18.2	—
Operating lease liabilities	42.7	41.8
Income tax payable	43.1	24.0
Other current liabilities	7.9	9.3
Total current liabilities	1,030.7	1,053.3
Operating lease liabilities	151.0	146.7
Accrued compensation	20.3	20.1
Deferred tax liabilities, net	21.5	27.2
Long-term debt	1,694.6	1,072.6
Deferred revenue	21.3	21.0
Income tax payable	13.8	13.1
Other long-term liabilities	14.4	14.3
Total liabilities	$2,967.6	$2,368.3
Equity:
Morningstar, Inc. shareholders’ equity:
Common stock, no par value, 200,000,000 shares authorized, of which 38,027,605 and 39,740,881 shares were outstanding as of March 31, 2026 and December 31, 2025, respectively	—	—

Accumulated other comprehensive loss:
Treasury stock at cost, 17,000,866 and 15,277,454 shares as of March 31, 2026 and December 31, 2025, respectively	(2,088.7)	(1,785.7)
Additional paid-in capital	892.5	869.5
Retained earnings	2,294.3	2,206.2
Currency translation adjustment	(79.4)	(68.1)
Total accumulated other comprehensive loss	(79.4)	(68.1)
Total equity	1,018.7	1,221.9
Total liabilities and equity	$3,986.3	$3,590.2

Unaudited Consolidated Statements of Equity

For the three months ended March 31, 2026 and 2025

	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, 2025	39,740,881		$—		$(1,785.7)		$869.5		$2,206.2		$(68.1)		$1,221.9
Net income		—		—		—		107.1		—		107.1
Other comprehensive income (loss):
Foreign currency translation adjustment		—		—		—		—		(11.3)		(11.3)
Other comprehensive loss, net		—		—		—		—		(11.3)		(11.3)
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	10,136		—		—		(0.8)		—		—		(0.8)
Reclassification of awards previously liability-classified that were converted to equity		—		—		13.0		—		—		13.0
Stock-based compensation		—		—		10.8		—		—		10.8
Common shares repurchased	(1,723,412)		—		(303.0)		—		—		—		(303.0)
Dividends declared ($0.50 per share)		—		—		—		(19.0)		—		(19.0)
Balance as of March 31, 2026	38,027,605		$—		$(2,088.7)		$892.5		$2,294.3		$(79.4)		$1,018.7

	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, 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):
Foreign currency translation adjustment		—		—		—		—		17.0		17.0
Other comprehensive income, net		—		—		—		—		17.0		17.0
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	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

Unaudited Consolidated Statements of Cash Flows

	Three months ended March 31,
(in millions)	2026	2025
Operating activities
Consolidated net income	$107.1	$78.5
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization	51.7	47.3
Deferred income taxes	(12.7)	(6.9)
Stock-based compensation expense	10.8	9.1
Provision for credit losses	1.8	2.5
Equity in investments of unconsolidated entities	0.1	2.6
Other, net	0.1	(1.1)
Changes in operating assets and liabilities:
Accounts receivable	(9.0)	17.3
Accounts payable and accrued liabilities	6.7	0.2
Accrued compensation and deferred commissions	(138.7)	(120.5)
Income taxes	20.3	20.1
Deferred revenue	63.7	47.9
Other assets and liabilities	(10.4)	(6.0)
Cash provided by operating activities	91.5	91.0
Investing activities
Purchases of investment securities	(10.7)	(3.3)
Proceeds from maturities and sales of investment securities	23.9	4.5
Capital expenditures	(37.9)	(32.2)
Acquisitions, net of cash acquired	(359.6)	(38.5)
Purchases of investments in unconsolidated entities	(0.1)	(1.2)
Cash used for investing activities	(384.4)	(70.7)
Financing activities
Common shares repurchased	(300.0)	(109.6)
Dividends paid	(19.9)	(19.5)
Proceeds from revolving credit facility	295.0	145.0
Repayment of revolving credit facility	(30.0)	(40.0)
Proceeds from term facility	375.0	—
Employee taxes withheld for stock awards	(0.8)	—
Other, net	(2.4)	—
Cash provided by (used for) financing activities	316.9	(24.1)
Effect of exchange rate changes on cash and cash equivalents	(5.7)	12.6
Net increase in cash and cash equivalents	18.3	8.8
Cash and cash equivalents—beginning of period	474.5	502.7
Cash and cash equivalents—end of period	$492.8	$511.5
Supplemental disclosure of cash flow information
Cash paid for income taxes	$26.8	$14.2
Cash paid for interest	$12.3	$6.4

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