FactSet, a global financial digital platform and enterprise solutions provider, reported its second fiscal quarter of 2025 results on March 20, 2025. The company has experienced a stable condition as evidenced by a 4.1% year-over-year increase in organic Annual Subscription Value (ASV) to $2.276 billion, up from $2.185 billion the previous year, with a dollar growth of approximately $90.7 million. Revenue for the quarter reached $570.7 million, marking a 4.5% increase compared to $545.9 million in the same quarter last year.

The adjusted operating margin for the quarter was 37.3%, reflecting a decrease of 100 basis points from the prior year’s margin of 38.3%. GAAP operating margin also decreased by approximately 80 basis points to 32.5%, compared to 33.3% in the same period last year. Adjusted diluted earnings per share (EPS) were reported at $4.28, an increase of 1.4% from $4.22 in the previous year. GAAP diluted EPS rose by 3.0%, reaching $3.76.

FactSet’s adjusted operating income for the second quarter was $212.7 million, compared to $209.3 million in the same period last year, indicating a 1.6% increase. EBITDA for the quarter increased by 3.6% year-over-year to $224.6 million. Free cash flow in the second quarter grew to $150 million, representing a 23% increase over the prior year.

The company has updated its fiscal 2025 guidance to reflect a narrow range for expected organic ASV growth, now projected between $100 million and $130 million, which translates to an annual growth rate of approximately 4.4% to 5.8%. GAAP revenue guidance has also been revised to a range of $2.305 billion to $2.325 billion, marking an increase from previous estimates. The adjusted operating margin guidance remains unchanged at between 36% to 37%, while adjusted diluted EPS guidance stays at $16.80 to $17.40.

FactSet experienced client growth, with a client count reaching 8,645, up 396 clients in the last three months, mainly driven by holdings in the corporate sector. The user count increased to 219,141, indicating a net increase of 874 users, primarily due to a rise in wealth management users. The company maintained high levels of ASV retention, exceeding 95%, and client retention measured at 91%.

Operating expenses saw an increase to $385.2 million, up 5.8% year-over-year, largely due to higher acquisition-related expenses and investment in technology, contributing to a rise in technology costs, which now account for over 10% of revenues. The effective tax rate for the quarter was 15.9%, slightly down from 16.4% in the same period last year.

In summary, FactSet’s financial results for the second quarter of fiscal 2025 demonstrate steady growth in key metrics, including organic ASV, revenues, adjusted operating margins, and cash flow generation, while reaffirming guidance that reflects confidence in achieving its long-term objectives.