Morningstar, Inc 10-K for FY2025

Morningstar, Inc. (MORN)

10-K 2026-02-13 For: 2025-12-31

Added on April 10, 2026

About this 10-K

Morningstar, Inc filed this 10-K on February 13, 2026, covering the fiscal year ended December 31, 2025 (FY2025).

Headline figures

Fiscal year ended December 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.45B; up 7.5% from $2.28B a year earlier
Net income: $374.2M; up 1.2% from net income of $369.9M a year earlier
Diluted EPS: $8.87; up 3.4% from $8.58 a year earlier

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Illinois						36-3297908
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification Number)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, no par value	MORN	The Nasdaq Stock Market LLC


Part I		3
	Item 1. Business	3
	Item 1A. Risk Factors	21
	Item 1B. Unresolved Staff Comments	34
	Item 1C. Cybersecurity	34
	Item 2. Properties	35
	Item 3. Legal Proceedings	36
	Item 4. Mine Safety Disclosures	36

Part II		37
	Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	37
	Item 6. [Reserved]	37
	Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations	37
	Item 7A. Quantitative and Qualitative Disclosures about Market Risk	60
	Item 8. Financial Statements and Supplementary Data	61
	Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	102
	Item 9A. Controls and Procedures	102
	Item 9B. Other Information	103
	Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	103
Part III		103
	Item 10. Directors, Executive Officers, and Corporate Governance	103
	Item 11. Executive Compensation	104
	Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	104
	Item 13. Certain Relationships and Related Transactions, and Director Independence	104
	Item 14. Principal Accountant Fees and Services	104

Part IV.		105
	Item 15. Exhibits and Financial Statement Schedules	105
	Item 16. Form 10-K Summary	107


Morningstar® Advisor WorkstationSM						Morningstar® Plan AdvantageSM
Morningstar Analyst RatingTM						Morningstar® Portfolio X-Ray®
Morningstar® ByAllAccounts®						Morningstar Rating™
Morningstar® Data						Morningstar® Retirement ManagerSM
Morningstar DirectSM						Morningstar Style Box™
Morningstar® Direct Web ServicesSM						Morningstar Sustainability Rating™
Morningstar® Indexes						Morningstar.com®
Morningstar® Managed PortfoliosSM						PitchBook®
Morningstar Market BarometerSM						DBRS®
Morningstar Office CloudSM						Sustainalytics®


Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced programs	Approximate dollar value of shares that may yet be purchased under the programs (a)
October 1, 2025 - October 31, 2025	424,282	$	224.57	424,282	$	990,017,520
November 1, 2025 - November 30, 2025	893,808	$	212.57	893,808	$	800,019,757
December 1, 2025 - December 31, 2025	462,169	$	216.38	462,169	$	700,017,506
Total	1,780,259	$	216.42	1,780,259


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Key metrics (in millions)	2025			2024			Change
Revenue	$	2,445.5		$	2,275.1		7.5	%
Operating income	526.6			484.8			8.6	%
Operating margin	21.5		%	21.3		%	0.2 pp

Cash provided by operating activities	$	589.7		$	591.6		(0.3)	%
Capital expenditures	(147.1)			(142.7)			3.1	%
Free cash flow	$	442.6		$	448.9		(1.4)	%

Cash used for investing activities	$	(139.3)		$	(21.3)		NMF
Cash used for financing activities	$	(514.7)		$	(384.4)		33.9	%


Revenue by type
(in millions)	2025		2024		Change
Morningstar Direct Platform
License-based	$	829.1	$	786.7	5.4	%
Asset-based	—		—		—	%
Transaction-based	1.5		1.4		7.1	%
Morningstar Direct Platform total	$	830.6	$	788.1	5.4	%

PitchBook
License-based	$	664.5	$	611.6	8.6	%
Asset-based	—		—		—	%
Transaction-based	7.3		6.8		7.4	%
PitchBook total	$	671.8	$	618.4	8.6	%

Morningstar Credit
License-based	$	20.7	$	16.4	26.2	%
Asset-based	—		—		—	%
Transaction-based	333.7		274.7		21.5	%
Morningstar Credit total	$	354.4	$	291.1	21.7	%

Morningstar Wealth
License-based	$	74.0	$	80.4	(8.0)	%
Asset-based	142.5		142.3		0.1	%
Transaction-based	34.9		25.7		35.8	%
Morningstar Wealth total	$	251.4	$	248.4	1.2	%

Morningstar Retirement
License-based	$	1.7	$	1.8	(5.6)	%
Asset-based	135.9		125.3		8.5	%
Transaction-based	—		—		—	%
Morningstar Retirement total	$	137.6	$	127.1	8.3	%

Corporate and All Other (1)
License-based	$	129.2	$	128.2	0.8	%
Asset-based	64.6		65.6		(1.5)	%
Transaction-based	5.9		8.2		(28.0)	%
Corporate and All Other total	$	199.7	$	202.0	(1.1)	%

License-based	$	1,719.2	$	1,625.1	5.8	%
Asset-based	343.0		333.2		2.9	%
Transaction-based	383.3		316.8		21.0	%
Consolidated revenue	$	2,445.5	$	2,275.1	7.5	%


	As of December 31,
(in billions)	2025		2024		Change







Morningstar Model Portfolios	$	51.8	$	43.8	18.3	%
Institutional Asset Management	5.9		7.0		(15.7)	%
Asset Allocation Services	15.1		11.5		31.3	%
Investment Management (total)	$	72.8	$	62.3	16.9	%



(in millions, except foreign currency rates)	Australian Dollar			British Pound			Canadian Dollar			Euro			Other Foreign Currencies
Foreign currency rate in US dollars as of December 31, 2025	0.6683			1.3457			0.7296			1.1741			n/a

Foreign denominated percentage of revenue	2.6		%	7.8		%	6.3		%	6.4		%	5.1		%
Foreign denominated percentage of operating income (loss)	3.6		%	(6.3)		%	4.6		%	3.9		%	(14.9)		%

Estimated effect of a 10% adverse currency fluctuation on revenue	$	(6.5)		$	(19.3)		$	(15.8)		$	(16.3)		$	(12.9)
Estimated effect of a 10% adverse currency fluctuation on operating income (loss)	$	(2.0)		$	3.4		$	(2.5)		$	(2.2)		$	7.5


Year ended December 31, (in millions except per share amounts)	2025		2024		2023
Revenue	$	2,445.5	$	2,275.1	$	2,038.6

Operating expense:
Cost of revenue	952.9		895.7		843.5
Sales and marketing	467.0		441.0		423.8
General and administrative	334.0		327.2		355.8
Depreciation and amortization	189.9		190.4		184.9

Total operating expense	1,943.8		1,854.3		1,808.0

Gain on sale of customer assets	22.7		64.0		—
Other operating income	2.2		—		—

Operating income	526.6		484.8		230.6

Non-operating income (expense), net:
Interest expense, net	(28.6)		(37.7)		(51.7)

Gain on sale of business	—		45.3		—


Expense from equity method transaction, net	—		—		(11.8)
Other income (expense), net	1.0		(1.1)		14.4
Non-operating income (expense), net	(27.6)		6.5		(49.1)

Income before income taxes and equity in investments of unconsolidated entities	499.0		491.3		181.5

Equity in investments of unconsolidated entities	(3.3)		(17.4)		(7.4)

Income tax expense	121.5		104.0		33.0





Consolidated net income	$	374.2	$	369.9	$	141.1





Net income per share:
Basic	$	8.93	$	8.64	$	3.31
Diluted	$	8.87	$	8.58	$	3.29

Dividends per common share:
Dividends declared per common share	$	1.87	$	1.67	$	1.53
Dividends paid per common share	$	1.82	$	1.62	$	1.50

Weighted average shares outstanding:
Basic	41.9		42.8		42.6
Diluted	42.2		43.1		42.9


Year ended December 31, (in millions)	2025		2024		2023
Consolidated net income	$	374.2	$	369.9	$	141.1

Other comprehensive income (loss), net
Foreign currency translation adjustment	51.2		(32.9)		12.6
Unrealized gains (losses) on securities, net of tax	0.1		—		(0.1)


Other comprehensive income (loss), net	51.3		(32.9)		12.5

Comprehensive income	$	425.5	$	337.0	$	153.6


As of December 31 (in millions except share amounts)	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	474.5	$	502.7
Investments	54.2		48.3
Accounts receivable, less allowance for credit losses of $7.1 million and $7.1 million, respectively	390.4		358.1

Income tax receivable	16.2		12.4
Deferred commissions	35.4		39.2
Prepaid expenses	42.5		42.1
Other current assets	24.8		11.3
Total current assets	1,038.0		1,014.1
Goodwill	1,610.8		1,562.0
Intangible assets, net	379.3		408.8
Property, equipment, and capitalized software, net	231.9		218.9
Operating lease assets	159.0		181.2

Investments in unconsolidated entities	50.3		85.3
Deferred tax assets, net	78.7		43.2
Deferred commissions	30.1		26.6
Other assets	12.1		8.8
Total assets	$	3,590.2	$	3,548.9

Liabilities and equity
Current liabilities:
Deferred revenue	$	586.1	$	540.8
Accrued compensation	294.2		272.2
Accounts payable and accrued liabilities	97.9		87.3

Operating lease liabilities	41.8		35.1

Income tax payable	24.0		30.5

Other current liabilities	9.3		1.4
Total current liabilities	1,053.3		967.3
Operating lease liabilities	146.7		170.3
Accrued compensation	20.1		21.0
Deferred tax liabilities, net	27.2		27.6
Long-term debt	1,072.6		698.6

Deferred revenue	21.0		22.4
Income tax payable	13.1		11.7
Other long-term liabilities	14.3		11.4
Total liabilities	$	2,368.3	$	1,930.3

Equity:
Morningstar, Inc. shareholders’ equity:
Common stock, no par value, 200,000,000 shares authorized, of which 39,740,881 and 42,869,380 shares were outstanding as of December 31, 2025 and December 31, 2024, respectively	—		—
Treasury stock at cost, 15,277,454 and 12,010,630 shares as of December 31, 2025 and December 31, 2024 respectively	(1,785.7)		(993.9)
Additional paid-in capital	869.5		822.7
Retained earnings	2,206.2		1,909.2
Accumulated other comprehensive loss:
Currency translation adjustment	(68.1)		(119.3)
Unrealized gain on available-for-sale investments, net of tax	—		(0.1)
Total accumulated other comprehensive loss	(68.1)		(119.4)


Total equity	1,221.9		1,618.6
Total liabilities and equity	$	3,590.2	$	3,548.9


	Morningstar, Inc. Shareholders’ Equity
										Accumulated Other Comprehensive Income (Loss)
	Common Stock					Additional Paid-in Capital
(in millions, except share amounts)	Shares Outstanding	Par Value		Treasury Stock				Retained Earnings				Total Equity
Balance as of December 31, 2022	42,480,051	$	—	$	(986.7)	$	757.8	$	1,535.0	$	(99.0)		$	1,207.1


Net income		—		—		—		141.1		—			141.1
Other comprehensive income (loss), net:
Unrealized gains (losses) on securities, net of tax		—		—		—		—		(0.1)			(0.1)
Foreign currency translation adjustment, net		—		—		—		—		12.6			12.6
Other comprehensive income, net		—		—		—		—		12.5			12.5

Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	256,615	—		2.6		(32.9)		—		—			(30.3)
Reclassification of awards previously liability-classified that were converted to equity		—		—		11.3		—		—			11.3
Stock-based compensation		—		—		52.8		—		—			52.8




Common shares repurchased	(8,484)	—		(1.4)		—		—		—			(1.4)
Dividends declared ($1.53 per share)		—		—		—		(65.3)		—			(65.3)



Balance as of December 31, 2023	42,728,182	—		(985.5)		789.0		1,610.8		(86.5)			1,327.8


Net income		—		—		—		369.9		—			369.9
Other comprehensive income (loss), net:

Foreign currency translation adjustment, net		—		—		—		—		(32.9)			(32.9)
Other comprehensive loss, net		—		—		—		—		(32.9)			(32.9)

Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	174,498	—		3.2		(32.3)		—		—			(29.1)
Reclassification of awards previously liability-classified that were converted to equity		—		—		11.3		—		—			11.3
Stock-based compensation		—		—		54.7		—		—			54.7


Common shares repurchased	(33,300)	—		(11.6)		—		—		—			(11.6)
Dividends declared ($1.67 per share)		—		—		—		(71.5)		—			(71.5)


Balance as of December 31, 2024	42,869,380	—		(993.9)		822.7		1,909.2		(119.4)			1,618.6


Net income		—		—		—		374.2		—			374.2
Other comprehensive income (loss), net:
Unrealized gains (losses) on securities, net of tax		—		—		—		—		0.1			0.1
Foreign currency translation adjustment, net		—		—		—		—		51.2			51.2
Other comprehensive income, net		—		—		—		—		51.3			51.3
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards	148,079	—		2.7		(25.5)		—		—			(22.8)
Reclassification of awards previously liability-classified that were converted to equity				—		15.9		—		—			15.9
Stock-based compensation		—		—		56.4		—		—			56.4




Common shares repurchased	(3,276,578)	—		(794.5)		—		—		—			(794.5)
Dividends declared ($1.87 per share)		—		—		—		(77.2)		—			(77.2)



Balance as of December 31, 2025	39,740,881	$	—	$	(1,785.7)	$	869.5	$	2,206.2	$	(68.1)		$	1,221.9



(in millions)	2025		2024		Change
United States	$	1,754.9	$	1,638.8	7.1	%

Asia	48.0		49.6		(3.2)	%
Australia	65.3		62.4		4.6	%
Canada	154.9		140.4		10.3	%
Continental Europe	219.6		203.8		7.8	%
United Kingdom	189.8		167.4		13.4	%
Other	13.0		12.7		2.4	%
Total International	690.6		636.3		8.5	%

Consolidated revenue	$	2,445.5	$	2,275.1	7.5	%


ASC			Accounting Standards Codification
ASU			Accounting Standards Update

FASB			Financial Accounting Standards Board
SEC			Securities and Exchange Commission


(in millions)	2025		2024		2023
Capitalized software depreciation expense	$	102.7	$	94.9	$	81.2


(in millions)	As of December 31, 2025		As of December 31, 2024
Term Facility, net of unamortized debt issuance costs of $1.5 million and $0.2 million, respectively	$	373.5	$	349.8
Revolving Credit Facility	350.0		—
2.32% Senior Notes due October 26, 2030, net of unamortized debt issuance costs of $0.9 million and $1.2 million, respectively	349.1		348.8

Total debt	$	1,072.6	$	698.6


(in millions)	As of December 31, 2025
2026	$	—
2027	—
2028	375.0
2029	—
2030	700.0
Thereafter	—
Total	$	1,075.0


(in millions, except per share amounts)	2025		2024		2023
Basic net income per share:
Consolidated net income	$	374.2	$	369.9	$	141.1

Weighted average common shares outstanding	41.9		42.8		42.6

Basic net income per share	$	8.93	$	8.64	$	3.31

Diluted net income per share:
Consolidated net income	$	374.2	$	369.9	$	141.1

Weighted average common shares outstanding	41.9		42.8		42.6
Net effect of dilutive stock awards	0.3		0.3		0.3
Weighted average common shares outstanding for computing diluted income per share	42.2		43.1		42.9

Diluted net income per share	$	8.87	$	8.58	$	3.29


	Year ended December 31,
(in millions)	2025		2024		2023

License-based	$	1,719.2	$	1,625.1	$	1,517.5
Asset-based	343.0		333.2		279.6
Transaction-based	383.3		316.8		241.5
Consolidated revenue	$	2,445.5	$	2,275.1	$	2,038.6


	Year ended December 31, 2025
(in millions)	Morningstar Direct Platform		PitchBook		Morningstar Credit		Morningstar Wealth		Morningstar Retirement		Total Reportable Segments
Revenue by type(1):
License-based	$	829.1	$	664.5	$	20.7	$	74.0	$	1.7	$	1,590.0
Asset-based	—		—		—		142.5		135.9		278.4
Transaction-based	1.5		7.3		333.7		34.9		—		377.4
Total segment revenue	830.6		671.8		354.4		251.4		137.6		2,245.8

Less:
Compensation expense(2)	236.0		309.4		181.2		112.5		45.7
Other segment items(3)	225.2		152.3		58.4		129.3		24.2
Adjusted operating income	$	369.4	$	210.1	$	114.8	$	9.6	$	67.7	$	771.6


	Year ended December 31, 2024
(in millions)	Morningstar Direct Platform		PitchBook		Morningstar Credit		Morningstar Wealth		Morningstar Retirement		Total Reportable Segments
Revenue by type(1):
License-based	$	786.7	$	611.6	$	16.4	$	80.4	$	1.8	$	1,496.9
Asset-based	—		—		—		142.3		125.3		267.6
Transaction-based	1.4		6.8		274.7		25.7		—		308.6
Total segment revenue	788.1		618.4		291.1		248.4		127.1		2,073.1

Less:
Compensation expense(2)	216.1		289.5		162.5		124.6		43.9
Other segment items(3)	216.6		142.5		53.0		133.1		17.6
Adjusted operating income (loss)	$	355.4	$	186.4	$	75.6	$	(9.3)	$	65.6	$	673.7


	Year ended December 31, 2023
(in millions)	Morningstar Direct Platform		PitchBook		Morningstar Credit		Morningstar Wealth		Morningstar Retirement		Total Reportable Segments
Revenue by type(1):
License-based	$	745.5	$	551.9	$	11.7	$	80.8	$	1.7	$	1,391.6
Asset-based	—		—		—		122.6		108.5		231.1
Transaction-based	1.7		—		203.7		26.5		0.3		232.2
Total segment revenue	747.2		551.9		215.4		229.9		110.5		1,854.9

Less:
Compensation expense(2)	173.8		281.0		128.2		151.5		41.0
Other segment items(3)	233.6		122.8		65.5		118.8		15.4
Adjusted operating income (loss)	$	339.8	$	148.1	$	21.7	$	(40.4)	$	54.1	$	523.3


Revenue by geographical area
	Year ended December 31,
(in millions)	2025		2024		2023
United States	$	1,754.9	$	1,638.8	$	1,470.6

Asia	48.0		49.6		49.3
Australia	65.3		62.4		58.4
Canada	154.9		140.4		116.3
Continental Europe	219.6		203.8		185.5
United Kingdom	189.8		167.4		148.0
Other	13.0		12.7		10.5
Total International	690.6		636.3		568.0

Consolidated revenue	$	2,445.5	$	2,275.1	$	2,038.6


Operating lease assets by geographical area
	As of December 31,
(in millions)	2025		2024
United States	$	74.9	$	92.9

Asia	48.7		44.2
Australia	1.5		2.4
Canada	7.8		7.7
Continental Europe	16.5		19.1
United Kingdom	9.0		14.7
Other	0.6		0.2
Total International	84.1		88.3

Consolidated operating lease assets	$	159.0	$	181.2



	Fair Value as of		Level within the Fair Value Hierarchy as of December 31, 2025
(in millions)	December 31, 2025		Level 1		Level 2		Level 3
Cash equivalents	$	40.1	$	40.1	$	—	$	—
Investments:





Marketable equity investments, exchange-traded funds, and mutual funds	50.0		50.0		—		—

Marketable debt securities	1.5		1.5		—		—



Total	$	91.6	$	91.6	$	—	$	—


	(in millions)		Weighted average useful life (years)
Customer-related assets	$	0.6	10
Technology-based assets	12.5		5

Total intangible assets	$	13.1


	As of December 31, 2025
Weighted-average remaining lease term (in years)	5.6

Weighted-average discount rate	4.6	%



(in millions)						As of December 31, 2025
Shares available for future grants						1.7


	Unrecognized stock-based compensation expense (in millions)		Weighted average expected amortization period (months)
Restricted stock units	$	49.0	30
Market stock units	23.4		26
Performance stock units	0.9		16
Total unrecognized stock-based compensation expense	$	73.3	29


Restricted Stock Units (RSUs)	Shares	Weighted Average Grant Date Fair Value
RSUs Outstanding - December 31, 2024	280,859	$	254.75
Granted	198,103	291.72

Vested	(197,591)	272.56

Forfeited	(22,146)	269.39
RSUs Outstanding - December 31, 2025	259,225	$	268.17


	Assumptions for Monte Carlo Valuation Model
Grant Date	Expected volatility		Dividend yield		Risk-free interest rate


May 15, 2023	31.7	%	0.79	%	3.65	%
November 15, 2023	31.9	%	0.56	%	4.56	%
May 15, 2024	31.1	%	0.54	%	4.62	%
November 15, 2024	31.1	%	0.47	%	4.30	%
May 15, 2025	29.6	%	0.59	%	4.05	%
November 15, 2025	27.3	%	0.86	%	3.61	%


Market Stock Units (MSUs)	Shares	Weighted Average Grant Date Fair Value
MSUs Outstanding - December 31, 2024	169,859	$	277.37
Granted	66,826	261.48
Vested	(31,409)	235.69
Forfeited	(35,823)	278.51
MSUs Outstanding - December 31, 2025	169,453	$	278.59


Performance Stock Units (PSUs)	Shares	Weighted Average Grant Date Fair Value
PSUs Outstanding - December 31, 2024	44,644	$	295.14
Granted(1)	42,022	306.41
Vested	(866)	242.95
Forfeited	(9,806)	302.03
PSUs Outstanding - December 31, 2025	75,994	$	301.08


	2025
(in millions, except percentages)	Amount		%
Income tax expense at US federal rate	$	104.1	21.0	%
State and local income tax, net of federal income tax effect(1)	20.0		4.0	%
Foreign tax effects
Canada
State and local	6.0		1.2	%
Other	(2.2)		(0.4)	%
Other foreign jurisdictions	5.1		1.0	%
Effects of changes in tax laws or rates enacted in the current period	—		—	%
Effect of cross-border tax laws
Foreign-derived intangible income deduction	(17.4)		(3.5)	%
US tax on foreign branches, net of foreign tax credits	(7.5)		(1.5)	%

Other	2.3		0.5	%
Tax credits	(4.1)		(0.8)	%
Changes in valuation allowances
Valuation allowance on foreign tax credits	8.1		1.6	%
Other	0.6		0.1	%
Nontaxable or nondeductible items	5.2		1.0	%
Changes in unrecognized tax benefits	1.3		0.3	%
Total income tax expense	$	121.5	24.5	%



(in millions)	2025
US federal income taxes	$	77.9
US state and local income taxes:
New York state	8.8
Other	25.4
Total state income taxes	34.2
Foreign income taxes:
Canada - Federal	16.0
Canada - Ontario	8.7
India	13.2
Other	21.8
Total foreign income taxes	59.7
Total cash paid for income taxes	$	171.8