Strong Financial Performance: MSCI Inc. reported revenue growth of over 9% and adjusted EBITDA growth of over 10% in Q2 2025. Adjusted earnings per share grew nearly 15%, and the company generated over $300 million in free cash flow. Year-to-date, the company has repurchased $286 million worth of shares at an average price of $557, indicating strong confidence in its value.

Asset-Based Fees (ABF) Growth: ABF run rate surged by 17%, primarily driven by record assets under management (AUM) in ETFs linked to MSCI indices. Equity index ETF AUM surpassed $2 trillion for the first time, showcasing the company¡¯s strong performance in non-US markets and the increasing importance of indices in global investing.

Challenges with Active Asset Managers: The subscription run rate for active asset managers grew only by 6%, indicating ongoing struggles in that sector. Market pressures, budget constraints, and a slow recovery in flows for these asset managers impact potential revenue growth, and MSCI does not foresee rapid improvement in this area over the near term.