Morningstar, Inc.
For the period ended Jun 30, 2026. Filed Jul 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.
Jun 30, 2026 · Filed Jul 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 2026-03-31; filed 2026-04-29.
0001289419-26-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001289419-26-000041
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 159 previous paragraphs and 176 current paragraphs.
98 unchanged; 55 reworded; 21 added; 5 removed; 1 previous and 2 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 (21)
Current report
License-based revenue increased 6.3%, or 2.8% on an organic basis, during the first six months of 2026, primarily driven by demand for Morningstar Direct Platform and PitchBook products.
Current report
Asset-based revenue increased 14.2%, or 12.4% on an organic basis, during the first six months of 2026. The increase in reported and organic asset-based revenue was primarily driven by an increase in sales of Morningstar Retirement and Morningstar Wealth products.
Current report
Transaction-based revenue increased 25.3%, or 23.6% on an organic basis, during the first six months of 2026, primarily driven by Morningstar Credit revenue.
Current report
Cost of revenue increased $8.7 million in the second quarter and $16.2 million in the first six months of 2026. An increase in certain technology infrastructure costs of $6.1 million and $9.0 million in the second quarter and first six months of 2026, respectively, was the largest contributor to the increase, which included higher cloud spending primarily related to the migration from on-premise data centers and computer and software costs associated with AI initiatives. Professional fees also contributed to the increase in both periods.
Current report
Sales and marketing expense decreased $1.6 million in the second quarter and increased $1.0 million in the first six months of 2026. The quarterly decrease was primarily driven by lower compensation expense and professional fees of $1.6 million and $1.4 million, respectively, partially offset by a $0.9 million increase in advertising and marketing costs. The decrease in compensation expense was primarily due to lower salary and severance costs, while higher paid advertising drove the increase in advertising and marketing costs. For the first six months of 2026, advertising and marketing costs increased $2.8 million and were partially offset by a $1.7 million decrease in compensation expense, primarily due to the same factors noted above.
Current report
Consolidated operating income increased $77.3 million in thefirst six months of 2026, reflecting increases in revenue of $121.0 million and other operating income of $6.9 million, partially offset by an increase in operating expense of $50.6 million. Operating margin was 24.2% in the first six months of 2026, an increase of 4.0 percentage points compared with the prior year period.
Current report
Morningstar Direct Platform total revenue increased $28.9 million, or 7.1%, for the six months ended June 30, 2026. Revenue grew 4.9% on an organic basis, primarily driven by growth in Morningstar Data and Morningstar Direct.
Current report
Morningstar Direct Platform adjusted operating income increased $7.9 million, or 4.3%, and adjusted operating margin decreased 1.2 percentage points for the six months ended June 30, 2026. The decline in adjusted operating margin was driven by the same factors noted above
Current report
PitchBook total revenue increased $8.2 million, or 4.9%on both a reported and organic basis for the three months ended June 30, 2026.
Current report
PitchBook total revenue increased $16.9 million, or 5.1% for the six months ended June 30, 2026. Revenue grew 4.9% on an organic basis.
Current report
PitchBook adjusted operating income decreased $0.5 million, or 0.5%, and adjusted operating margin decreased 1.7 percentage points for the six months ended June 30, 2026. The decline in adjusted operating margin was driven by the same factors noted above, as well as higher advertising expenses.
Current report
PitchBook depreciation expense was$8.8 million and $8.1 million for thethree months ended June 30, 2026 and 2025, respecti vely, and $16.7 million and$15.9 million for the six months ended June 30, 2026 and 2025, respectively.
Current report
Morningstar Credit total revenue increased $47.9 million, or 30.3%, for the six months ended June 30, 2026. Revenue grew 28.3% on an organic basis. Revenue grew across geographies and most asset classes, with particular strength in US structured finance ratings and global corporates.
Current report
Morningstar Credit adjusted operating income increased $27.8 million, or 53.6%, and adjusted operating margin increased 5.9 percentage points for the six months ended June 30, 2026.
Current report
Morningstar Wealth adjusted operating income increased $11.3 million and adjusted operating margin increased 9.6 percentage points for the six months ended June 30, 2026.
Current report
Morningstar Retirement total revenue increased $11.4 million, or 17.5% on a reported and organic basis for the six months ended June 30, 2026. Growth was driven by market gains and positive net flows, supported by growth in traditional and Advisor Managed Accounts.
Current report
Morningstar Retirement adjusted operating income increased $9.2 million and adjusted operating margin increased 5.2 percentage points for the six months ended June 30, 2026.
Current report
Morningstar Sustainalytics revenue decreased $4.0 million, or 7.1%, for the six months ended June 30, 2026. Organic revenue decreased 11.0%, primarily due to the retirement of the second party opinions product as well as a decline in revenue from the corporate licensed-rating product.
Current report
Morningstar Indexes revenue increased $17.4 million, or 85.3%, for the three months ended June 30, 2026. Organic revenue increased 13.0%. Organic revenue growth excludes revenue associated with the CRSP acquisition and foreign currency impact.
Current report
Our effective tax rate in the second quarter and first six months of 2026 was 26.2% and 25.3%, respectively, reflecting an increase of 3.4 and 1.0 percentage points compared with the same prior year periods. Our effective tax rate increased in 2026 due to deferred taxes recorded in the second quarter of 2026 with respect to unremitted foreign earnings from some of our non-US subsidiaries as well as from a negative tax impact dueto the vesting of employee stock-based compensation compared with the excess tax benefits that were recognized in 2025. When stock-based compensation vests at a lower share price than the original grant price, a negative tax impact results. This reduces our tax deduction for stock-based compensation and resulted in an increase to our effective tax rate in the second quarter of 2026.
Current report
We generated free cash flow of $122.5 million in the second quarter of 2026 compared with $62.4 million in the second quarter of 2025. The change reflects a $56.7 million increase in cash provided by operating activities and a $3.4 million decrease in capital expenditures compared to the prior-year period. The increase in operating cash flow and free cash flowin the second quarter of 2026 was mainly due to higher cash earnings.
Removed paragraphs (5)
Previous 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.
Previous 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.
Previous 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.
Previous report
PitchBook depreciation expense was$7.9 million and $7.8 million for thethree months ended March 31, 2026.
Previous 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.
Reworded paragraphs (55)
Previous wording
•failing to achieve the anticipated benefits of the Center for Research in Security Prices, LLC (CRSP) acquisition;
Current wording
•failing to achieve the anticipated benefits of the CRSP acquisition;
Previous wording
•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;
Current wording
•the impact of artificial intelligence (AI) technologies and related costs on our business and reputation, as well as legal and reputational risks as they are incorporated into our products and tools;
Previous wording
•impact on our stock price due to market conditions, any future sales of our common stock, and fluctuations in our operating results; and
Current wording
•volatility in our stock price due to market conditions, any future sales of our common stock, and fluctuations in our operating results; and
Previous 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.
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), and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, 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
Three Months Ended March 31, 2026 vs. Three Months Ended March 31, 2025
Current wording
Three and Six Months Ended June 30, 2026 vs. Three and Six Months Ended June 30, 2025
Previous wording
To supplement our consolidated financial statements presented in accordance with US Generally Accepted Accounting Principles (GAAP), we use the following non-GAAP measures:
Current wording
To supplement our interim consolidated financial statements presented in accordance with US Generally Accepted Accounting Principles (GAAP), we use the following non-GAAP measures:
Previous 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.
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 $25.5 million and $27.3 million for the three months ended June 30, 2026 and 2025, respectively, and $52.1 million and $56.1 million for the six months ended June 30, 2026 and 2025, respectively. Revenue from Morningstar Indexes was $37.8 million and $20.4 million for the three months ended June 30, 2026 and 2025, respectively, and $70.6 million and $43.4 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
In the first quarter of 2026, consolidated revenue increased 10.8% to $644.8 million. Foreign currency movements increased revenue by $13.5 million.
Current wording
In the second quarter of 2026, consolidated revenue increased 9.6% to $663.2 million. Foreign currency movements increased revenue by $3.5 million.
Previous wording
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.
Current wording
License-based revenue increased 6.2%, or 3.1% on an organic basis, during the second quarter of 2026, primarily driven by demand for Morningstar Direct Platform and PitchBook products.
Previous 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.
Current wording
Asset-based revenue increased 17.5%, or 13.8% on an organic basis, during the second quarter of 2026. The increase in reported and organic asset-based revenue was primarily driven by an increase in sales of Morningstar Retirement and Morningstar Wealth products.
Previous wording
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.
Current wording
Transaction-based revenue increased 18.0%, or 17.8% on an organic basis, during the second quarter of 2026, primarily driven by Morningstar Credit revenue.
Previous wording
Organic revenue increased 7.6% in the first quarter of 2026, driven by organic growth in Morningstar Credit, Morningstar Direct Platform, and PitchBook.
Current wording
Organic revenue increased 6.8% in the second quarter of 2026 and 7.2% in the first six months of 2026, driven by organic revenue growth in Morningstar Credit, Morningstar Direct Platform, and PitchBook.
Previous 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.
Current wording
International revenue comprised 28% of our consolidated revenue in both the second quarter and first six months of 2026, comparable to the same periods in 2025. Approxima tely 56% of international revenue was generated in Continental Europe and the United Kingdom during both the second quarter and first six months of 2026, which was down slightly compared to the same periods in 2025. Revenue from international operations increased 6.1% and 10.9% during the second quarter and first six months of 2026, respectively, driven by strong demand for Morningstar Credit and Morningstar Wealth products as well as Morningstar Direct Platform during the first six months of 2026.
Previous 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.
Current wording
General and administ rative expense increased $16.5 million in the second quarter and $24.0 million in the first six months of 2026. Higher compensation expense of $12.6 million and $15.7 million in the second quarter and first six months of 2026, respectively, was the largest contributor to the increase, driven primarily by stock-based compensation, attributable to strong performance compared to targets, and salary costs. Facilities-related expenses also contributed to the increase in both periods.
Previous wording
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 wording
Depreciation expense decreased slightly in the second quarter and firstsix months of 2026, while intangible amortization expense increased $5.6 million in the second quarter and $10.2 million in the first six months of 2026, primarily from additional amortization related to intangibles from the acquisition of CRSP.
Previous 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.
Current wording
Consolidated operating income increased $35.5 million in the second quarter of 2026, reflecting increases in revenue of $58.1 million and other operating income of $6.0 million, partially offset by an increase in operating expense of $28.6 million. Operating margin was 24.2%, an increase of 3.5 percentage points compared with the prior year period.
Previous 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.
Current wording
We reported adjusted operating income of $175.9 million and $354.5 million in the second quarterand first six months of 2026, 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. 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.
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 three months ended June 30, 2026 and 2025, unallocated corporate expenses were $55.6 million and $50.1 million, respectively. For the six months ended June 30, 2026 and 2025, unallocated corporate expenses were $97.4 million and $91.9 million, respectively. Unallocated corporate expenses include finance, human resources, legal, and other management-related costs that are not considered when segment performance is evaluated.
Previous 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.
Current wording
We reported adjusted operating margin of 26.5% in the second quarter and 27.1% in the firstsix months 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$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.
Current wording
Morningstar Direct Platform total revenue increased$12.9 million, or 6.2%, for the three months ended June 30, 2026. Revenue grew 4.8% on an organic basis, primarily driven by growth in Morningstar Data and Morningstar Direct.
Previous wording
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 wording
Morningstar Data contributed $6.8 million to revenue growth, with revenue increasing 6.4% or 4.2%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, partially offset by softness in exchange market data.
Previous wording
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 wording
Morningstar Direct contributed $6.1 million to revenue growth, with revenue increasing 8.2% or 7.1% on an organic basis, reflecting increased revenue per license and expansion with existing clients in reporting solutions. Direct licenses were relatively flat compared with the prior-year period.
Previous wording
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 wording
Morningstar Direct Platform adjusted operating income increased $4.0 million, or 4.2%, and adjusted operating margin decreased 0.8 percentage points for the three months ended June 30, 2026. The decline in adjusted operating margin was due in part to higher compensation costs largely driven by 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. Increased technology infrastructure costs primarily driven by the cloud migration also contributed.
Previous 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.
Current wording
Morningstar Direct Platform depreciation expense was $9.2 million and $11.2 million for the three months ended June 30, 2026 and 2025, respectively, and $18.7 million and $22.0 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
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 wording
Growth reflected contributions from most core investor and advisor client segments, partially offset by softness in venture capital and elevated churn in the corporate client segment. Increased revenue was primarily driven by the PitchBook platform and strength in the direct data business, which continued to expand from a smaller revenue base. Licensed user counts were relatively flat compared to the prior-year period.
Previous wording
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 wording
PitchBook adjusted operating income increased $0.2 million, or 0.4%, and adjusted operating margin decreased 1.4 percentage points for the three months ended June 30, 2026. The decline in adjusted operating margin was largely driven by an increase in compensation costs, which included the impact of additional headcount to support new growth initiatives. Increased technology infrastructure costs primarily related to AI initiatives also contributed.
Previous 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.
Current wording
Morningstar Credit total revenue increased $19.9 million, or 23.4%, for the three months ended June 30, 2026. Revenue grew 23.3% on an organic basis, supported by a robust issuance. Revenue grew across geographies and most asset classes, with particular strength in US structured finance ratings and Canadian and US corporates.
Previous 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.
Current wording
Morningstar Credit adjusted operating income increased $8.0 million, or 26.2%, and adjusted operating margin increased 0.8 percentage points for thethree months ended June 30, 2026. The increase in adjusted operating income and margin reflected revenue growth, partially offset by higher compensation costs. The increase in compensation was driven by higher salaries and benefits due to added headcount to support growth and higher bonus expense reflecting strong performance against targets.
Previous wording
Morningstar Credit depreciation expense was $1.4 million and $2.0 million for the three months ended March 31, 2026 and 2025.
Current wording
Morningstar Credit depreciation expense was $1.4 million and $2.0 million for the three months ended June 30, 2026 and 2025, respectively, and $2.8 million and $4.0 million for the six months ended June 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Morningstar Wealth total revenue decreased$4.0 million, or 6.2%, for the three months ended June 30, 2026. Revenue decreased 4.6% 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. Excluding the impact from the sunsetting of Morningstar Office, organic revenue would have increased 5.3%, supported by growth in Investment Management.
Previous wording
Asset-based revenue is based on quarter-end, prior quarter-end, or average asset levels during each quarter, which are often reported on a one-quarter lag for certain Investment Management products including Morningstar Managed Portfolios. The timing of client asset reporting and the structure of our contracts often results in a lag between market movements and the impact on revenue. The following table summarizes our approximate Morningstar Wealth AUMA:
Current wording
Asset-based revenue is based on quarter-end, prior quarter-end, or average asset levels during each quarter, which are often reported on a one-quarter lag for certain Investment Management products including Morningstar Model Portfolios. The timing of client asset reporting and the structure of our contracts often results in a lag between market movements and the impact on revenue. The following table summarizes our approximate Morningstar Wealth AUMA:
Previous 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.
Current wording
Investment Management total revenue increased $2.5 million, or 7.1% on a reported basis for the three months ended June 30, 2026. Revenue increased 11.9% on an organic basis. Reported AUMA decreased 4.5% to $63.8 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 would have increased compared to the prior-year period. Combined Morningstar Model Portfolio and International Wealth Platform AUMA increased 16.2% to $55.3 million, supported by market appreciation and positive net flows outside the US.
Previous 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.
Current wording
Morningstar Wealth adjusted operating income increased $4.9 million and adjusted operating margin increased 8.4 percentage points for the three months ended June 30, 2026.
Previous wording
Morningstar Wealth depreciation expense was $1.6 million and $4.5 million for the three months ended March 31, 2026 and 2025.
Current wording
Morningstar Wealth depreciation expense was $1.2 million and $4.4 million for the three months ended June 30, 2026 and 2025, respectively, and $2.8 million and $8.9 million for the six months ended June 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Morningstar Retirement total revenue increased $5.5 million, or 17.0% on both a reported and organic basis for the three months ended June 30, 2026. AUMA, calculated using the most recently available average quarterly or monthly data, increased 9.0% to $311.0 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 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 wording
Morningstar Retirement adjusted operating income increased $4.0 million and adjusted operating margin increased 3.7 percentage points for the three months ended June 30, 2026.
Previous wording
Morningstar Retirement depreciation expense was $2.3 million and $2.6 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Morningstar Retirement depreciation expense was $2.2 million and $2.7 million for the three months ended June 30, 2026 and 2025, respectively, and $4.5 million and $5.3 million for the six months ended June 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Corporate and All Other revenue increased $15.6 million, or 32.7% on a reported basis, and increased $23.2 million, or 23.3% on a reported basis, for the three and six months ended June 30, 2026, respectively.
Previous 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.
Current wording
Morningstar Sustainalytics revenue decreased $1.8 million, or 6.6%, for the three months ended June 30, 2026. Organic revenue decreased 7.7%, primarily due to the retirement of the second party opinions product.
Previous wording
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 wording
Morningstar Indexes revenue increased $27.2 million or 62.7% for the six months ended June 30, 2026. Organic revenue increased 5.7%. Asset value linked to Morningstar Indexes increased to $3.6 trillion from $221.0 billion in the prior-year period, driven by the inclusion of $3.3 trillion of assets linked to CRSP indexes, along with market performance and net inflows over the trailing 12 months.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
In the first six months of 2026, consolidated revenue increased 10.2% to$1,308.0 million. Foreign currency movements increased revenue by $17.0 million.
Current report — wording carried from elsewhere
Morningstar Wealth total revenue decreased $7.3 million, or 5.8%, for the six months ended June 30, 2026. Revenue declined 3.2% 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. Excluding the impact of the sunsetting of Morningstar Office, organic revenue would have increased 7.0%, supported by growth in Investment Management.
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Previous report — wording carried elsewhere
We intend to use our cash, cash equivalents, and investments for general corporate purposes, including working capital and funding future growth.