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MCO

Moody's Corporation

MCO

Moody's Corporation • NYSE
$490.78 ▲ 0.75% (+3.65)
Market Cap $88.23 B
52w High $531.93
52w Low $378.71
Dividend Yield 3.76%
P/E 39.52
Volume 278.64K
Outstanding Shares 179.78M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $2.007B ▲ $475M ▲ $646M ▲ 32.187% ▲ $3.61 ▲ $1.062B ▲
Q2-2025 $1.898B ▼ $441M ▲ $578M ▼ 30.453% ▼ $3.22 ▼ $939M ▼
Q1-2025 $1.924B ▲ $440M ▼ $625M ▲ 32.484% ▲ $3.47 ▲ $971M ▲
Q4-2024 $1.672B ▼ $441M ▲ $395M ▼ 23.624% ▼ $2.18 ▼ $665M ▼
Q3-2024 $1.813B $433M $534M 29.454% $2.94 $865M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $2.259B ▼ $15.415B ▼ $11.303B ▼ $3.957B ▲
Q2-2025 $2.29B ▲ $15.487B ▲ $11.379B ▲ $3.949B ▲
Q1-2025 $2.201B ▼ $15.096B ▼ $11.238B ▼ $3.7B ▲
Q4-2024 $2.974B ▼ $15.505B ▼ $11.778B ▲ $3.565B ▼
Q3-2024 $3.215B $15.769B $11.701B $3.905B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $648M ▲ $743M ▲ $-54M ▲ $-674M ▼ $7M ▼ $903M ▲
Q2-2025 $578M ▼ $543M ▼ $-126M ▼ $-482M ▲ $35M ▲ $468M ▼
Q1-2025 $625M ▲ $757M ▲ $224M ▲ $-1.298B ▼ $-269M ▼ $672M ▲
Q4-2024 $395M ▼ $674M ▼ $-181M ▲ $-634M ▼ $-234M ▼ $600M ▼
Q3-2024 $534M $703M $-684M $-81M $7M $631M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Moodys Analytics
Moodys Analytics
 $1.41Bn ▲$1.16Bn ▼$1.20Bn ▲$1.22Bn ▲
Moodys Investors Service
Moodys Investors Service
 $260.00M ▲$770.00M ▲$700.00M ▼$790.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Moody’s income statement shows a solid, mostly upward trajectory with a temporary soft patch in the middle of the period. Revenue has grown meaningfully over the five years, with a noticeable slowdown and dip around 2022, then a strong rebound and new highs more recently. That pattern lines up with the credit cycle: when debt issuance slows, ratings revenue softens, and when markets reopen, growth returns. Profitability remains a key strength. Gross profits and operating profits are both high relative to sales, indicating strong pricing power and efficient operations. Margins compressed somewhat during the weaker issuance period but have recovered well, though not quite to the peak levels seen a few years ago. Earnings per share follow the same story: down from earlier highs during the 2022 softness, then a robust recovery. Overall, the income statement reflects a highly profitable, cyclical business that has come through a recent downturn in good shape and is back on a growth path, while still exposed to future swings in capital markets activity.

Balance Sheet

Balance Sheet The balance sheet tells the story of a mature, asset-light, highly cash-generative business that uses leverage as part of its model. Total assets have grown steadily, suggesting ongoing investment in data, software, and acquisitions rather than heavy physical assets. Cash balances have moved around but remain healthy, giving the company flexibility to manage cycles, invest, and service debt. Debt is sizable and clearly larger than the equity base, which means the company runs with meaningful financial leverage. Equity has been rising over time, indicating retained earnings are building, though buybacks and dividends likely limit how fast equity grows. In simple terms: Moody’s balance sheet is not conservative in leverage terms, but it is typical for a stable, high-margin, recurring-revenue business. The main watchpoint is that higher debt increases sensitivity to interest costs and to any prolonged downturn in issuance or profitability.

Cash Flow

Cash Flow Cash flow is a clear strong point. Operating cash flow closely tracks the earnings pattern: a dip during the weaker period and then a strong rebound. Even in the softest year, the company still generated solid cash from operations. Free cash flow remains robust after relatively modest capital spending, which highlights the asset-light, software-and-data nature of the business. The company does not need heavy investment in plant or equipment to grow, so a large portion of operating cash can support acquisitions, dividends, buybacks, or debt reduction. Overall, Moody’s converts a high share of its accounting profits into actual cash, which underpins financial flexibility. The main risk is less about the cash conversion itself and more about the inherent cyclicality of ratings-driven cash flows over a full credit cycle.

Competitive Edge

Competitive Edge Moody’s competitive position is one of its defining strengths. In credit ratings, it is part of a small global oligopoly alongside S&P Global (and to a lesser extent Fitch). The brand is deeply entrenched, widely trusted, and embedded in regulations, bond covenants, and institutional processes. That creates strong network effects and high switching costs: issuers and investors generally cannot easily move away from Moody’s without consequences. On top of the core ratings franchise, Moody’s has built a broad analytics business offering risk, compliance, KYC, ESG, climate, and private credit tools. This diversification reduces dependence on the pure ratings cycle and helps deepen client relationships. Key structural advantages include brand reputation, regulatory barriers, integrated data and models, and long client relationships. Key structural risks include regulatory scrutiny, reputational exposure if ratings are questioned, and direct competition from S&P in both ratings and analytics, as well as from niche data providers in specific risk domains.

Innovation and R&D

Innovation and R&D Moody’s is leaning heavily into technology and AI to reinforce and extend its moat rather than resting on its legacy ratings franchise. The company is rolling out generative AI tools, such as its Research Assistant, to help clients digest Moody’s proprietary research and data more quickly and effectively. This can deepen client dependence on its content and increase the value of its existing data assets. Strategic acquisitions, like Numerated for loan origination and RMS for climate and catastrophe risk, are being woven into an “integrated risk assessment” strategy—bringing together credit, climate, ESG, and other risk domains into unified platforms. Behind the scenes, a modernized tech stack and agile development practices are meant to speed up product launches and integration of new technologies. A restructuring and efficiency program aims to direct more resources toward these growth and innovation areas. The opportunity is a richer, more embedded set of tools across the financial system; the execution risks lie in integrating acquisitions, managing AI-related regulatory and reputational issues, and staying ahead of fast-moving competitors in data and analytics.

Summary

Moody’s is a highly profitable, cash-rich business with a powerful competitive position built over decades, anchored in its core ratings franchise and extended through a diversified analytics platform. The financials show: strong revenue growth over the full period despite a mid-cycle dip, resilient and recovering margins, and very strong cash generation relative to its modest capital spending needs. The balance sheet carries significant debt, but this is supported by recurring and high-margin operations and rising equity. Strategically, Moody’s sits at the intersection of credit markets, regulation, and data. Its brand, regulatory role, and network effects create a wide moat that is difficult for new entrants to challenge. At the same time, it is actively investing in AI, integrated risk platforms, ESG, climate, KYC, and private credit—areas that could be important growth engines over the next decade. Key things to monitor include: the impact of credit cycle swings on ratings revenue, how well the company manages its leverage, the pace and success of AI and analytics innovation, regulatory and reputational developments, and execution on integration and restructuring. Overall, the picture is of a dominant, cyclical but resilient franchise working to future‑proof itself through technology and broader risk solutions.

NEWS

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November 11, 2025 · 7:00 AM UTC

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October 22, 2025 · 7:00 AM UTC

Moody's Corporation Reports Results for Third Quarter 2025

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