Morningstar provided responses to selected investor questions primarily received through July 31, 2025, regarding non-GAAP financial measures and product categories within the Direct Platform segment.
The company discussed the reallocation of product categories and historical organic growth rates, emphasizing Morningstar Data and Morningstar Direct segments.
Key drivers behind sequential and YoY growth in Morningstar Data product were highlighted, including managed products data and revenue from exchange market data and Morningstar Essentials.
Use of Non-GAAP Measures
Morningstar references non-GAAP financial measures, emphasizing adjusted operating income and free cash flow. Reconciliation of these measures is available on shareholders.morningstar.com.
Morningstar Direct Platform
The Q1 25 supplemental quarterly presentation provides insights into Direct Platform segment updates and historical growth rates, with a focus on Direct Web Services and research distribution impact.
Morningstar Data Sequential Growth
In Q2 25, Morningstar Data revenue increased to $106.2 million (+12.6% YoY), driven by managed products data, exchange market data, and Morningstar Essentials revenue.
- The signing of a large data contract and updated client usage reporting significantly influenced Morningstar Data revenue in Q2 25, highlighting the potential for lumpy growth due to specific deals and reporting changes.
- Morningstar Credit's financial composition, particularly the 19% contribution from global CMBS new issuance and recurring revenue in 2024, indicates a significant portion of the company's total revenue.
Morningstar's responses to investor questions provide insights into its financial performance, product segments, and growth drivers. The company's strategic focus on non-GAAP measures and key product areas underscores its commitment to transparency and shareholder communication.