FactSet Research Systems, Inc.

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FDS

US3030751057

Professional Information Services

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FactSet Research : Third Quarter 2025 Webcast Presentation

Published on 06/23/2025 at 06:03 pm IST

Publicnow

FACTSET RESEARCH SYSTEMS, INC.

+1.90%

Monday, June 23, 2025

FactSet Earnings Call

Third Quarter Fiscal 2025

Agenda

Welcome
Business Update
Financial Overview
Questions and Answers
Appendix

Business Update

Key Metrics - Third Quarter 2025

4.5%

ORGANIC ASV GROWTH

Driven by the strength of our recurring sales model and disciplined execution by our sales team

36.8%

ADJUSTED OPERATING MARGIN

Decreased 270 bps mainly due to lapping of both a lower bonus accrual and one-time payroll tax adjustment that occurred in the prior year, partially offset by growth in revenues

$4.27

ADJUSTED DILUTED EPS

Decreased 2.3% year over year mainly due to higher operating expenses, partially offset by growth in revenues

1 LTM organic growth rate based on May 31, 2025. Annual Subscription Value (ASV) at any given point in time represents the forward-looking revenues for the next twelve months from all subscription services currently supplied to clients. Organic ASV excludes the effects of acquisitions and dispositions completed within the last twelve months and foreign currency movements. Beginning in fiscal 2025, FactSet is reporting Organic ASV, rather than Organic ASV plus Professional Services, to focus on the recurring nature of its revenues. This underscores the shift of FactSet's offerings toward providing more managed services and less project-based services.

2 Please see Appendix for a reconciliation of these non-GAAP metrics to GAAP metrics.

Key Operational Metrics

>95%

ASV RETENTION

ASV retained from clients over the last twelve months.

220,496

USER COUNT

Number of individuals accessing FactSet's solutions.1

No change versus 2024 | Q3

91%

CLIENT RETENTION

Percentage of clients retained over the last twelve months.

6% change since 2024 | Q3

8,811

CLIENT COUNT

Companies subscribing to FactSet services with an ASV greater than $10,000.2

Up ~90 bps versus 2024 | Q3

10% change since 2024 | Q3

1 User count does not reflect the fiscal 2025 acquisitions.

2 Client count includes clients from the LiquidityBook acquisition.

ASV Growth Rates by Global Segments *

$2,297M

Organic ASV

+ 4.5%

$1,486M

AMERICAS

+5%

$236M

ASIAPAC

+7%

$575M

EMEA

+2%

* LTM Organic ASV Growth Rate based on last twelve months as of May 31, 2025

Now, we are on a mission to supercharge financial intelligence

Maximize the value of our data and technology ecosystem

Innovate across workflows to maintain and build leadership

Deliver value to our clients as their enterprise partner of choice

Financial Overview

Third Quarter 2025 Financial Results*

(in thousands, except per share data)

5.9%

Revenues

5/31/25 $585,520

5/31/24 $552,708

(6.1)%

Net Income

5/31/25 $148,542

5/31/24 $158,135

4.4%

Organic Revenues

5/31/25 $577,200

5/31/24 $552,708

(2.9)%

Adjusted Net Income

5/31/25 $163,921

5/31/24 $168,796

(4.1)%

Operating Income

5/31/25 $194,155

5/31/24 $202,459

(5.4)%

Diluted EPS

5/31/25 $3.87

5/31/24 $4.09

(1.2)%

Adjusted Operating Income

5/31/25 $215,313

5/31/24 $217,960

(2.3)%

Adjusted Diluted EPS

5/31/25 $4.27

5/31/24 $4.37

(350)bps

Operating Margin

5/31/25 33.2%

5/31/24 36.6%

(1.7)%

EBITDA

5/31/25 $235,915

5/31/24 $239,930

(270)bps

Adjusted Operating Margin

5/31/25 36.8%

5/31/24 39.4%

5.4%

Free Cash Flow

5/31/25 $228,603

5/31/24 $216,896

* Please see Appendix for a reconciliation of non-GAAP metrics to GAAP metrics.

Returning Capital to Shareholders

FactSet has steadily increased annual dividends and continued share repurchases in the third quarter 2025

(in millions, except per share data)

$403.44

$410.64

$330.26

$270.10

$19

$81

$100

$89

$118

$110

$126

$118

$139

$151

$194

$177

$201

$220

$241.08

$261

$162.62

$235

$265

$304

$197.06

$437.40 $455.83

'17* '18 '19 '20 '21 '22 '23 '24 'YTD Q3 FY25

Cash Dividends

Share Repurchases

Average Share Repurchase Price

* Includes shares repurchased from employee stock options for 2017

We Reaffirm our Fiscal 2025 Guidance

FISCAL 2025 OUTLOOK As of June 23, 2025
Organic ASV Growth1	$100 - $130 million (~4.4% to ~5.8%)
Revenues	$2,305 - $2,325 million
GAAP Operating Margin	32.0% - 33.0%
Adjusted Operating Margin	36.0% - 37.0%
GAAP Effective Tax Rate	17.0% - 18.0%
GAAP Diluted EPS	$14.80 - $15.40
Adjusted Diluted EPS	$16.80 - $17.40

1 Expected Organic ASV growth for fiscal 2025 relative to fiscal 2024

The Fiscal 2025 Outlook shown here is a forward-looking statement. Given the risks, uncertainties and assumptions related to FactSet's business and operations, FactSet's actual future results may differ materially from these expectations. Investors should review the Company's cautionary statements and risk factors referred to in this presentation.

Questions & Answers

Appendix

Third Quarter 2025 Adjusted Operating Income Walk

(in millions)

$586 $230

$28

$64

$16

$33

$215

Revenue	People	Third Party	Technology	Real Estate	Other	Adjusted Operating
		Content				Income

Figures as of May 31, 2025

Non-GAAP Reconciliations

Organic Revenues

(in thousands)

FOR THE THREE MONTHS ENDED

(Unaudited) May 31, 2025		May 31, 2024	% Change
GAAP Revenues	$ 585,520	$ 552,708	5.9%
Acquired Revenues	(7,781)	-
Currency Impact	(539)	-
Organic Revenues	$ 577,200	$ 552,708	4.4%

Note: Columns may not foot due to rounding

Non-GAAP Reconciliations

Adjusted Operating Income, Margin, Net Income

(in thousands, except per share data)

FOR THE THREE MONTHS ENDED

(Unaudited) May 31, 2025		May 31, 2024	% Change
GAAP operating income	$194,155	$202,459	(4.1)%
Intangible asset amortization	19,182	16,674
Business acquisitions and related costs	1,976	423
Restructuring/severance	-	(1,596)
Adjusted operating income	$215,313	$217,960	(1.2)%
Operating margin	33.2%	36.6%
Adjusted operating margin(1)	36.8%	39.4%
GAAP net income	$148,542	$158,135	(6.1)%
Intangible asset amortization	13,943	11,466
Business acquisitions and related costs	1,436	291
Restructuring/severance	-	(1,096)
Adjusted net income(2)	$163,921	$168,796	(2.9)%

Note: Columns may not foot due to rounding

1 Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.

2 For purposes of calculating Adjusted net income, all adjustments for the three months ended May 31, 2025 and May 31, 2024 were taxed at an adjusted tax rate of 27.3% and 31.2%, respectively.

Non-GAAP Reconciliations

EBITDA

(in thousands)

FOR THE THREE MONTHS ENDED

(Unaudited)	May 31, 2025	May 31, 2024	% Change
Net income	$ 148,542	$ 158,135	(6.1)%
Interest expense	15,122	16,894
Income taxes	31,406	32,397
Depreciation and amortization expense	40,845	32,504
EBITDA	$ 235,915	$ 239,930	(1.7)%

Note: Columns may not foot due to rounding

Non-GAAP Reconciliations

Adjusted Diluted EPS

(in thousands, except per share data)

FOR THE THREE MONTHS ENDED

(Unaudited)	May 31, 2025	May 31, 2024	% Change
GAAP diluted earnings per common share	$ 3.87	$ 4.09	(5.4)%
Intangible asset amortization	0.36	0.30
Business acquisitions and related costs	0.04	0.01
Restructuring/severance	-	(0.03)
Adjusted diluted earnings per common share(1)	$ 4.27	$ 4.37	(2.3)%
Weighted average common shares (diluted)	38,344	38,640

Note: Columns may not foot due to rounding

1 For purposes of calculating Adjusted diluted earnings per common share, all adjustments for the three months ended May 31, 2025 and May 31, 2024 were taxed at an adjusted tax rate of 27.3% and 31.2%, respectively.

Non-GAAP Reconciliations

Free Cash Flow

(in thousands)

FOR THE THREE MONTHS ENDED

(Unaudited)	May 31, 2025	May 31, 2024	% Change
Net Cash Provided by Operating Activities	$ 253,833	$ 238,235	6.5 %
Capital Expenditures	(25,230)	(21,339)
Free Cash Flow	$ 228,603	$ 216,896	5.4 %

Note: Columns may not foot due to rounding

Non-GAAP Reconciliations

Business Outlook Operating Margin, Net Income and Diluted EPS

(in millions, except per share data)

Fiscal 2025 (Forward Looking)	Low End of Range	High End of Range
Revenues	$2,305	$2,325
Operating Income	$761	$744
Operating Margin	33.0 %	32.0 %
Intangible Asset Amortization	80	81
Other Adjustments (net)	12	12
Adjusted Operating Income	$853	$837
Adjusted Operating Margin	37.0 %	36.0 %
Net Income	$588	$567
Intangible Asset Amortization	66	66
Other Adjustments (net)	10	10
Discrete Tax Items	(4)	(4)
Adjusted Net Income	$660	$640

Diluted Earnings per Common Share	$15.40	$14.80
Intangible Asset Amortization	1.73	1.73
Other Adjustments (net)	0.30	0.30
Discrete Tax Items	(0.03)	(0.03)
Adjusted Diluted Earnings per Common Share	$17.40	$16.80

Note: Columns may not foot due to rounding

Investors should review the Company's cautionary statements and risk factors referred to in this presentation. 21

Thank you

Attention: This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

Disclaimer

FactSet Research Systems Inc. published this content on June 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 23, 2025 at 12:32 UTC.

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Company Profile

FactSet Research Systems, Inc. specializes in the development and operation of a financial data management and analysis platform for investors, asset managers, private equity companies and finance professionals. Through the FactSet platform, the group provides financial data and market information on securities markets, companies and industries to enable its clients to identify and find investment opportunities, while providing them with the necessary tools to analyze, monitor and manage their investment portfolios. At the end of August 2025, FactSet Research Systems, Inc. had over 237,324 users. Net sales are distributed geographically as follows: Americas (64.9%), Europe/Middle East/Africa (25%) and Asia/Pacific (10.1%).

Employees

12,886

Sector

Professional Information Services

Calendar

27/02 -

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