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Morningstar, Inc.

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Business Summary

Morningstar, Inc. is a leading global provider of independent investment insights, operating in the financial information and services industry. The company's core competencies are data, research, design, and technology, and it serves a wide range of market participants including individual and institutional investors, financial advisors, asset managers, retirement plan providers, and issuers of fixed-income securities. The economic and financial information industry includes a few large firms as well as numerous smaller companies, and the most important competitive factors are brand and reputation, data accuracy and quality, technology, breadth of data coverage, quality of investment and credit research and analytics, design, product reliability, and value of the products and services provided.

Morningstar competes with a variety of companies across its segments. Key competitors for Morningstar Data include FE fundinfo, LSEG (Refinitiv), Bloomberg, FactSet, and S&P Global. Morningstar Direct competes with Bloomberg, eVestment Alliance, FactSet Research System's Cognity and SPAR, and LSEG's (Refinitiv) Eikon. Morningstar Advisor Workstation competitors include CapIntel, FactSet, Kwanti, Nitrogen, and YCharts. PitchBook competes with Beauhurst, FactSet, MSCI, Preqin (a division of BlackRock), Refinitiv, and S&P Global Market Intelligence. Morningstar Credit's competitors include Fitch Ratings, Kroll Bond Rating, Moody's Ratings, and S&P Global Ratings. Morningstar Wealth's model portfolio competitors include BlackRock, Capital Group, and Clark Capital in the US, and Brooks Macdonald, LGT Wealth Management, and Tatton in EMEA. Morningstar Retirement competitors include Edelman Financial Engines, Fidelity, and SMART for managed accounts. Morningstar Sustainalytics competitors include ISS STOXX, MSCI, and S&P Global. Morningstar Indexes competitors include Bloomberg Indices, FTSE Russell, MSCI, and S&P Dow Jones Indices. The company believes it is one of the few companies that can deliver research, ratings, data, software products, indexes, and investment management services in alignment with its mission.

Morningstar generates revenue in three primary ways: license-based, asset-based, and transaction-based. License-based revenue, which represented 70.3% of 2025 consolidated revenue, is generated through subscription services that grant access on either a per user or enterprise-basis for a specified period of time. Asset-based revenue, representing 14.0% of 2025 consolidated revenue, is generated by charging basis points and other fees for assets under management and advisement (AUMA). Transaction-based revenue, representing 15.7% of 2025 consolidated revenue, is revenue that is one time in nature and related Morningstar Credit recurring revenue primarily derived from surveillance and research. The company's largest customer accounted for less than 3% of consolidated revenue in 2025.

Morningstar operates through five reportable segments: Morningstar Direct Platform, PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. Morningstar Direct Platform provides comprehensive data, research and insights, and investment analysis, and includes Morningstar Data, Morningstar Direct, and Morningstar Advisor Workstation. Morningstar Data licenses and delivers Morningstar's data, research, and analytics to asset managers, redistributors, and wealth managers, and its largest products include managed investment data, Morningstar Essentials, exchange market data, equity data, Direct Web Services, and research distribution. The estimated annual revenue renewal rate for Morningstar Data was 101% in 2025. Morningstar Direct is an investment analysis and reporting application, and its estimated annual revenue renewal rate was approximately 104% in 2025. Morningstar Advisor Workstation includes Advisor Workstation and Direct Advisory Suite, reaching more than 225 firms and 170,000 advisors in the US and Canada.

PitchBook provides investors with access to private market data and insights, delivered primarily through the PitchBook platform. As of December 31, 2025, PitchBook served approximately 10,200 client accounts and 113,451 licensed users. The estimated annual revenue renewal rate for PitchBook platform and direct data product combined was approximately 103% in 2025. Morningstar Credit provides credit ratings, research, data, and credit analytics solutions through Morningstar DBRS and Morningstar Credit Analytics (MCA). Morningstar DBRS is one of the top four rating agencies worldwide, and as of December 2025, it rated more than 4,000 issuers and 60,000 securities worldwide. Morningstar Wealth brings together Investment Management, which includes Morningstar Model Portfolios and the International Wealth Platform, and the individual investor platform and media site, Morningstar Investor/Morningstar.com. As of December 31, 2025, Investment Management AUMA totaled $72.8 billion . Morningstar Retirement's primary offerings include managed retirement accounts (MRA), fiduciary services, and custom models. As of December 31, 2025, Morningstar Retirement AUMA totaled $305.2 billion , and the company served a total of 95 retirement service providers, broker dealers, asset managers, plan sponsors and RIAs, representing approximately 298,000 plans and 2.3 million managed accounts participants. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes. Morningstar Sustainalytics provides environmental, social, and governance data, research, and ratings, and its estimated annual revenue renewal rate for license-based products was approximately 93% in both 2024 and 2025. Morningstar Indexes offers a broad range of market indexes.

In 2025, Morningstar completed two acquisitions and no significant divestitures. In March 2025, Morningstar Credit Analytics completed its acquisition of Dealview Technologies Limited (DealX), a provider of standardized US CMBS and global CLO data. PitchBook expanded its private credit capabilities through the acquisition of Lumonic Inc., a portfolio monitoring and management solution. In October 2025, Morningstar DBRS entered the APAC market with the opening of an office in Sydney, Australia. In February 2025, Morningstar announced plans to retire Morningstar Office, its practice and portfolio management software for RIAs, with the transition expected to be completed in early 2026. In 2025, Morningstar also completed the retirement of its US Morningstar Wealth Turnkey Asset Management Platform (TAMP) following the sale of customer assets to AssetMark in 2024. On February 2, 2026, Morningstar completed its acquisition of the Center for Research in Security Prices (CRSP) from the University of Chicago for a closing cash payment of approximately $365.0 million . During 2025, the company repurchased a total of 1,873,729 shares for $487.0 million under the prior share repurchase program and 1,402,849 shares for $300.0 million under the new share repurchase program. The board of directors approved a new share repurchase program authorizing up to $1.0 billion in shares, effective October 31, 2025, and set to expire on October 30, 2028. In the fourth quarter of 2025, the company announced an increase of its quarterly cash dividend from 45.5 cents per share to 50.0 cents per share .

Consolidated revenue for 2025 was $2,445.5 million , an increase of 7.5% compared to $2,275.1 million in 2024. Operating income was $526.6 million in 2025, compared to $484.8 million in 2024, with operating margin of 21.5% versus 21.3% in the prior year. Consolidated net income was $374.2 million in 2025, compared to $369.9 million in 2024. Diluted earnings per share were $8.87 in 2025, compared to $8.58 in 2024. Cash provided by operating activities was $589.7 million in 2025, compared to $591.6 million in 2024. Free cash flow was $442.6 million in 2025, compared to $448.9 million in 2024. Organic revenue increased 8.0% in 2025.

Business Outlook

A key growth vector is the expansion of AI capabilities across the company's products and internal processes. The company is focused on making Morningstar AI-native, rethinking capabilities and processes to improve the speed and quality of insights. In 2025, Morningstar Data launched the Morningstar MCP server, providing turnkey AI-connectivity of Morningstar data, research, and functionality, and completed integrations into Anthropic's Claude for Financial Services, Microsoft Foundry and Copilot Studio, and OpenAI's ChatGPT. PitchBook is embedding AI into tools such as PitchBook Navigator, Profile and Investor Summaries, and the VC Exit Predictor, and introduced collaborations with AI platforms including Hebbia and Rogo. The company is also expanding delivery of data and intellectual property through integrations with leading enterprise AI applications and large language model providers.

Another growth vector is the expansion into private markets and credit. PitchBook expanded its private credit capabilities through the acquisition of Lumonic Inc., a portfolio monitoring and management solution, which is expected to strengthen end-to-end workflows for credit-focused investors. Morningstar Credit Analytics completed its acquisition of Dealview Technologies Limited (DealX), a provider of standardized US CMBS and global CLO data, which is expected to enhance MCA's analytics in the structured finance sector and expand its reach in the private credit and leveraged loan markets. In October 2025, Morningstar DBRS entered the APAC market with the opening of an office in Sydney, Australia, bringing its full range of services closer to clients and investors in the area. On February 2, 2026, Morningstar completed its acquisition of CRSP from the University of Chicago, which is expected to significantly enhance its index and data capabilities.

The company reported adjusted operating margin of 23.8% in 2025, compared to 21.7% in 2024, an increase of 2.1 percentage points. The company's strategy includes driving operational excellence and scalability to support profitable growth. The company is focused on scaling its operations and increasing productivity to implement its business plans and strategies, including managing costs related thereto.

The company expects to continue making capital expenditures in 2026, primarily for computer hardware, software, and leasehold improvements for new and existing office locations. The company also expects to use a portion of its cash and investments balances in the first quarter of 2026 to make annual bonus payments of approximately $165.6 million related to the 2025 bonus program. As of December 31, 2025, the company had 10,973 permanent, full-time employees around the world. The company's global turnover remained flat at 17% in 2025, with involuntary turnover increasing to 5% from 4% in 2024, and voluntary turnover decreasing from 13% in 2024 to 12% in 2025.

Capital expenditures were $147.1 million in 2025, compared to $142.7 million in 2024. The company's board of directors approved a new share repurchase program authorizing up to $1.0 billion in shares, effective October 31, 2025, and set to expire on October 30, 2028. As of December 31, 2025, the company had $700.0 million available for future repurchases under the new share repurchase program. The company expects to pay a regular quarterly dividend of 50.0 cents per share in 2026. Stock-based compensation expense was $56.4 million in 2025.

The company faces headwinds from 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. The company's asset-based revenue depends on the value of assets under its advisory services, which fluctuates with market performance. The credit ratings business depends on the volume and value of debt securities issued, making it vulnerable to market volatility, rising interest rates, widening credit spreads, and economic slowdowns. The PitchBook business is subject to cyclical trends specific to the private capital markets, and during downturns, clients often seek to reduce spending on third-party services and the number of employees. The company also faces headwinds from industry consolidation, which has the potential to reduce its client base.

The company faces constraints from the increasingly complex and evolving regulatory environment across its businesses. Morningstar DBRS operates in highly regulated environments in Canada, the US, the UK, Australia, and the EU, with substantial ongoing compliance obligations. Morningstar Investment Management LLC is a registered investment adviser under the Investment Advisers Act of 1940 and is subject to SEC requirements. Morningstar Indexes is subject to the EU Benchmarks Regulation. Morningstar Sustainalytics faces increased regulation of its research, ratings, and data activities, including the EU ESG Rating Provider Regulation which becomes effective in 2026. The company also faces constraints from data privacy regulations such as the GDPR, which impose obligations on the storage, transfer, and use of personal information, and from emerging laws and regulations governing AI, such as the EU Artificial Intelligence Act.

Risk Factors

The company faces significant risks from failing to maintain and protect its brand, independence, and reputation, which are built on trust in its commitment to independence, transparency, and a long-term focus. Real or perceived conflicts of interest, such as providing ratings on clients' investment products while charging licensing fees, or the issuer-pay model in its credit ratings business, could harm its reputation. The company also faces material risks from cybersecurity threats and the protection of confidential information, including personal information. Improper access or release of data could occur due to employee or vendor error, system issues, or cyberattacks, and the company may be subject to increasingly frequent and sophisticated cyberattacks. The company's asset-based revenue depends on the value of assets under management, which fluctuates with market performance, and a 100 basis-point change in the SOFR would have a $7.3 million impact on interest expense based on the outstanding principal balance and SOFR at December 31, 2025. The company's long-term debt was $1,072.6 million on December 31, 2025, and its variable rate indebtedness could subject it to interest rate risk. The concentrated ownership position of Joe Mansueto, who owned approximately 37.5% of outstanding common stock as of December 31, 2025, gives him substantial influence over matters submitted to shareholders and could adversely affect other shareholders.

Management Priorities

Management's message emphasizes the company's mission to empower investor success and its strategy to deliver insights and experiences that make it essential to the investor workflow. The company is focused on five strategic priorities: win for investors by delivering differentiated insights and solutions; lead in AI to empower investor success by making Morningstar AI-native; own the language of markets by becoming the trusted universal language for public and private markets; scale for impact by driving operational excellence and scalability to support profitable growth; and build an exceptional culture.The company evaluates its business using measures such as revenue, operating income, operating margin, and operating cash flow, and uses non-GAAP measures including organic revenue, adjusted operating income, adjusted operating margin, and free cash flow to help investors assess how intrinsic value has changed over time.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Consolidated Results
  2. [2] Item 7, MD&A — Consolidated Results
  3. [3] Item 7, MD&A — Consolidated Results
  4. [4] Item 1, Business — Major Customer Groups
  5. [5] Item 1, Business — Morningstar Direct Platform, Morningstar Data
  6. [6] Item 1, Business — Morningstar Direct Platform, Morningstar Direct
  7. [7] Item 1, Business — Morningstar Direct Platform, Morningstar Advisor Workstation
  8. [8] Item 1, Business — Morningstar Direct Platform, Morningstar Advisor Workstation
  9. [9] Item 1, Business — PitchBook
  10. [10] Item 1, Business — PitchBook
  11. [11] Item 1, Business — PitchBook, Revenue Model and Renewal Rates
  12. [12] Item 1, Business — Morningstar Credit
  13. [13] Item 1, Business — Morningstar Credit
  14. [14] Item 1, Business — Morningstar Wealth
  15. [15] Item 1, Business — Morningstar Retirement
  16. [16] Item 1, Business — Morningstar Retirement
  17. [17] Item 1, Business — Morningstar Retirement
  18. [18] Item 1, Business — Morningstar Retirement
  19. [19] Item 1, Business — Corporate and All Other, Morningstar Sustainalytics
  20. [20] Item 7, MD&A — Liquidity and Capital Resources
  21. [21] Item 7, MD&A — Liquidity and Capital Resources, Share Repurchases
  22. [22] Item 7, MD&A — Liquidity and Capital Resources, Share Repurchases
  23. [23] Item 7, MD&A — Liquidity and Capital Resources, Share Repurchases
  24. [24] Item 7, MD&A — Liquidity and Capital Resources, Share Repurchases
  25. [25] Item 7, MD&A — Liquidity and Capital Resources, Share Repurchases
  26. [26] Item 5, Market for Registrant's Common Equity
  27. [27] Item 8, Consolidated Statements of Income
  28. [28] Item 7, MD&A — Consolidated Results
  29. [29] Item 8, Consolidated Statements of Income
  30. [30] Item 8, Consolidated Statements of Income
  31. [31] Item 8, Consolidated Statements of Income
  32. [32] Item 7, MD&A — Consolidated Results
  33. [33] Item 7, MD&A — Consolidated Results
  34. [34] Item 8, Consolidated Statements of Income
  35. [35] Item 8, Consolidated Statements of Income
  36. [36] Item 8, Consolidated Statements of Income
  37. [37] Item 8, Consolidated Statements of Income
  38. [38] Item 8, Consolidated Statements of Cash Flows
  39. [39] Item 8, Consolidated Statements of Cash Flows
  40. [40] Item 7, MD&A — Consolidated Free Cash Flow
  41. [41] Item 7, MD&A — Consolidated Free Cash Flow
  42. [42] Item 7, MD&A — Consolidated Results, Organic Revenue
  43. [43] Item 7, MD&A — Adjusted Operating Income and Adjusted Operating Margin
  44. [44] Item 7, MD&A — Adjusted Operating Income and Adjusted Operating Margin
  45. [45] Item 7, MD&A — Liquidity and Capital Resources
  46. [46] Item 1, Business — Our People
  47. [47] Item 1, Business — Employee Data
  48. [48] Item 1, Business — Employee Data
  49. [49] Item 1, Business — Employee Data
  50. [50] Item 1, Business — Employee Data
  51. [51] Item 1, Business — Employee Data
  52. [52] Item 8, Consolidated Statements of Cash Flows
  53. [53] Item 8, Consolidated Statements of Cash Flows
  54. [54] Item 7, MD&A — Liquidity and Capital Resources, Share Repurchases
  55. [55] Item 7, MD&A — Liquidity and Capital Resources, Share Repurchases
  56. [56] Item 5, Market for Registrant's Common Equity
  57. [57] Item 8, Consolidated Statements of Equity
  58. [58] Item 7A, Quantitative and Qualitative Disclosures about Market Risk
  59. [59] Item 8, Consolidated Balance Sheets
  60. [60] Item 1A, Risk Factors — Risks Related to Ownership of Our Common Stock
  61. [61] Item 8, Consolidated Statements of Income
  62. [62] Item 8, Consolidated Statements of Income
  63. [63] Item 8, Consolidated Statements of Income
  64. [64] Item 8, Consolidated Statements of Income
  65. [65] Item 8, Consolidated Statements of Income
  66. [66] Item 8, Consolidated Statements of Income
  67. [67] Item 8, Consolidated Statements of Income
  68. [68] Item 8, Consolidated Statements of Income
  69. [69] Item 7, MD&A — Consolidated Results
  70. [70] Item 7, MD&A — Consolidated Results
  71. [71] Item 7, MD&A — Consolidated Free Cash Flow
  72. [72] Item 7, MD&A — Consolidated Free Cash Flow
  73. [73] Item 7, MD&A — Liquidity and Capital Resources
  74. [74] Item 7, MD&A — Liquidity and Capital Resources
  75. [75] Item 8, Consolidated Balance Sheets
  76. [76] Item 8, Consolidated Balance Sheets
  77. [77] Item 7, MD&A — Consolidated Operating Results
  78. [78] Item 7, MD&A — Consolidated Operating Results
  79. [79] Item 7, MD&A — Non-operating income (expense), net
  80. [80] Item 7, MD&A — Adjusted Operating Income and Adjusted Operating Margin
  81. [81] Item 7, MD&A — Adjusted Operating Income and Adjusted Operating Margin
  82. [82] Item 7, MD&A — Adjusted Operating Income and Adjusted Operating Margin
  83. [83] Item 7, MD&A — Adjusted Operating Income and Adjusted Operating Margin
  84. [84] Item 7, MD&A — Segment Results, Morningstar Direct Platform
  85. [85] Item 7, MD&A — Segment Results, PitchBook
  86. [86] Item 7, MD&A — Segment Results, Morningstar Credit
  87. [87] Item 7, MD&A — Segment Results, Morningstar Wealth
  88. [88] Item 7, MD&A — Segment Results, Morningstar Retirement

Analysis on 6/9/2026