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MORN

Morningstar, Inc.

MORN

Morningstar, Inc. • NASDAQ
$214.86 ▲ 0.53% (+1.14)
Market Cap $9.13 B
52w High $365.00
52w Low $202.89
Dividend Yield 1.82%
P/E 24.44
Volume 100.41K
Outstanding Shares 42.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $617.4M ▲ $247.9M ▼ $91.6M ▲ 14.836% ▲ $2.18 ▲ $179.5M ▲
Q2-2025 $605.1M ▲ $249.4M ▲ $89M ▲ 14.708% ▲ $2.11 ▲ $175.3M ▲
Q1-2025 $581.9M ▼ $236.4M ▲ $78.5M ▼ 13.49% ▼ $1.83 ▼ $164.7M ▼
Q4-2024 $591M ▲ $190.6M ▼ $116.9M ▼ 19.78% ▼ $2.72 ▼ $209.9M ▲
Q3-2024 $569.4M $231.2M $119.7M 21.022% $2.79 $209.7M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $514.5M ▼ $3.558B ▼ $2.044B ▲ $1.514B ▼
Q2-2025 $541.6M ▼ $3.631B ▲ $2.016B ▲ $1.615B ▲
Q1-2025 $559.2M ▲ $3.586B ▲ $1.977B ▲ $1.609B ▼
Q4-2024 $551M ▼ $3.549B ▼ $1.93B ▼ $1.619B ▲
Q3-2024 $601.7M $3.566B $2.001B $1.566B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $91.6M ▲ $195.7M ▲ $-33M ▼ $-188.1M ▼ $-29.3M ▼ $160.1M ▲
Q2-2025 $89M ▲ $99M ▲ $-23.9M ▲ $-108.5M ▼ $-8M ▼ $62.4M ▲
Q1-2025 $78.5M ▼ $91M ▼ $-70.7M ▼ $-24.1M ▲ $8.8M ▲ $58.8M ▼
Q4-2024 $116.9M ▼ $153.4M ▼ $24.1M ▲ $-199.1M ▼ $-50.2M ▼ $112.8M ▼
Q3-2024 $119.7M $191.9M $14.1M $-60.2M $161.7M $155.8M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
AssetBased
AssetBased
 $90.00M ▲$90.00M ▲$80.00M ▼$80.00M ▲
LicensedBased
LicensedBased
 $410.00M ▲$420.00M ▲$430.00M ▲$430.00M ▲
TransactionBased
TransactionBased
 $90.00M ▲$80.00M ▼$90.00M ▲$100.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Morningstar shows a clear pattern of steady revenue growth over the past several years, which suggests its core data and software offerings are in demand. Profitability, however, has been more of a roller coaster: margins were squeezed in the middle of the period, then bounced back strongly in the most recent year. That recovery indicates the business is scaling better again, likely as past investments and acquisitions begin to pay off. Overall, this is a company with healthy top-line momentum and improving bottom-line discipline, but with a history of earnings that can be choppy when spending or integration costs rise.

Balance Sheet

Balance Sheet The balance sheet reflects a data and software business that has grown through a mix of organic expansion and acquisitions. Debt increased meaningfully a few years ago but has since been nudged down as earnings and cash flow improved, which lowers financial risk compared with the peak. Cash levels are solid but not excessive, suggesting management prefers to keep money working in the business rather than sitting idle. Shareholders’ equity has trended upward, indicating value is being built over time, though the company still carries a noticeable, if manageable, debt load relative to its earlier, more conservative profile.

Cash Flow

Cash Flow Morningstar consistently generates positive cash from its operations, which is a strong sign of an underlying business that converts earnings into real cash. Free cash flow has remained positive throughout the period, even in weaker profit years, after funding ongoing investments in technology and infrastructure. Capital spending is modest for a firm of this type, reinforcing the idea of an asset-light, high-margin model where much of the value comes from people, data, and software rather than heavy physical assets. The recent upturn in cash generation gives the company more flexibility to reduce debt, fund acquisitions, return capital to shareholders, or continue investing in new products.

Competitive Edge

Competitive Edge Morningstar holds a powerful niche as an independent provider of investment data, ratings, and research, embedded deeply in the workflows of advisors, asset managers, and institutions. Its brand is closely associated with objectivity and investor advocacy, making its ratings and research highly influential in fund flows and product positioning. High switching costs and workflow integration mean clients are reluctant to rip out Morningstar tools once they are in place, reinforcing customer stickiness. Proprietary ratings, long-term historical databases, ESG capabilities, and private-markets coverage via PitchBook give it a differentiated toolkit. The main risks are intense competition from global data giants, the pace of technological change, and potential regulatory or reputational scrutiny of ratings and methodologies.

Innovation and R&D

Innovation and R&D Innovation is a core part of Morningstar’s strategy, and it shows up across software, data coverage, and analytics. The company has steadily evolved its flagship platforms for advisors and institutions, layered on private-market intelligence through PitchBook, and expanded into ESG with Sustainalytics and into credit with DBRS. It is leaning into artificial intelligence with tools like its “Mo” assistant and integrations with major technology partners to make its data more discoverable and actionable. New index offerings, private-market benchmarks, and credit and structured-finance tools broaden its reach into growing investment areas. The flip side is that this innovation push requires ongoing spending and careful execution, so the payoff can take time and may create periods of margin pressure.

Summary

Morningstar combines a structurally attractive business model—recurring data and software revenues, strong brand, and high switching costs—with a more variable profit profile driven by investment cycles and acquisition integration. Revenue has advanced steadily, and profitability has recently rebounded after a period of pressure, helped by scale and better cost control. The balance sheet is sound, with rising equity and gradually declining debt, while cash generation remains a key strength and supports continued investment and strategic flexibility. Competitively, Morningstar’s moats in brand, proprietary data, ratings, and embedded workflows appear durable, especially as it broadens into ESG, private markets, and credit. The main watch points are margin volatility, dependence on financial market activity and client budgets, integration of acquisitions, and the challenge of staying ahead in AI and analytics while maintaining the trusted, independent reputation that underpins its franchise.

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