MSCI Inc

Strong Q2 performance & momentum (core “engines” accelerating): Organic revenue >12%, adjusted EPS ~19%, adjusted EBITDA +14%. Run-rate growth +12% with Asset-Based Fees (ABF) run rate $948M (+25%) and subscription run-rate growth >8% (retention >95%, with hedge funds retention >97%). Management highlighted record ETF and non-ETF AUM tied to MSCI indices and ~$40B ETF-linked inflows in the quarter (ETF-linked AUM > $2.8T; + $1T over 15 months).

Pipeline strength, but quarter-to-quarter volatility risk is real: CEO said outlook for subscription sales remains bullish, but expect lumpiness/variability because many new products are high-ticket and institutional buying has long lead times (showcase, approvals, budgets). CFO also noted investment needs increased due to stronger-than-assumed AUM/product mix.

Private assets growth accelerating; sustainability is pressured while climate remains an opportunity: In private capital solutions, recurring net new sales grew +57%, and subscription run-rate accelerated to >16%; largest strategic catalyst is the UBS partnership to expand private asset access via the wealth channel (aiming to increase transparency/allocations). Sustainability & climate reporting: Q2 saw ~$6M new recurring sustainability sales and ~$3M recurring climate sales, but cancels (esp. Americas) were a “significant headwind.” For next two quarters, management expects combined sustainability + climate recurring net new sales roughly zero to slightly negative. Climate physical risk momentum: run rate growth ~12% and multiple physical risk wins (e.g., geospatial/asset location deal).