$MORN

Morningstar, Inc.

CIK:0001289419|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 663.2	$ 605.1	$ 1,308.0	$ 1,187.0
Operating expense:
Cost of revenue	239.3	230.6	478.2	462.0
Sales and marketing	118.1	119.7	233.3	232.3
General and administrative	98.5	82.0	182.5	158.5
Depreciation and amortization	53.5	48.5	105.2	95.8
Total operating expense	509.4	480.8	999.2	948.6
Other operating income	6.8	0.8	7.7	0.8
Operating income	160.6	125.1	316.5	239.2
Non-operating expense, net:
Interest expense, net	(17.1)	(7.4)	(30.8)	(12.8)
Other income (expense), net	3.5	(1.2)	3.1	(1.4)
Non-operating expense, net	(13.6)	(8.6)	(27.7)	(14.2)
Income before income taxes and equity in investments of unconsolidated entities	147.0	116.5	288.8	225.0
Equity in investments of unconsolidated entities	(0.9)	(1.2)	(1.0)	(3.8)
Income tax expense	38.3	26.3	72.9	53.7
Consolidated net income	$ 107.8	$ 89.0	$ 214.9	$ 167.5
Net income per share:
Basic (in dollars per share)	$ 2.85	$ 2.11	$ 5.59	$ 3.94
Diluted (in dollars per share)	2.83	2.09	5.55	3.91
Dividends declared (in dollars per share)	0.50	0.46	1.00	0.91
Dividends paid per common share (in dollars per share)	$ 0.50	$ 0.46	$ 1.00	$ 0.91
Weighted average shares outstanding:
Basic (in shares)	37.8	42.2	38.5	42.5
Diluted (in shares)	38.1	42.5	38.7	42.8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Consolidated net income	$ 214.9	$ 167.5
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization	105.2	95.8
Deferred income taxes	(16.5)	(13.8)
Stock-based compensation expense	38.1	27.5
Provision for credit losses	1.9	1.9
Equity in investments of unconsolidated entities	1.0	3.8
Other, net	(10.6)	(1.0)
Changes in operating assets and liabilities:
Accounts receivable	9.6	(17.4)
Accounts payable and accrued liabilities	3.3	(4.3)
Accrued compensation and deferred commissions	(98.1)	(78.0)
Income taxes	(4.8)	(26.1)
Deferred revenue	21.9	35.4
Other assets and liabilities	(18.7)	(1.3)
Cash provided by operating activities	247.2	190.0
Investing activities
Purchases of investment securities	(13.9)	(15.2)
Proceeds from maturities and sales of investment securities	34.3	26.1
Capital expenditures	(71.1)	(68.8)
Acquisitions, net of cash acquired	(359.6)	(39.1)
Purchases of investments in unconsolidated entities	(0.5)	(2.5)
Other, net	0.4	4.9
Cash used for investing activities	(410.4)	(94.6)
Financing activities
Common shares repurchased	(400.0)	(221.6)
Dividends paid	(38.9)	(38.8)
Proceeds from revolving credit facility	380.0	265.0
Repayment of revolving credit facility	(110.0)	(125.0)
Proceeds from term facility	375.0	0.0
Repayment of term facility	(4.7)	0.0
Employee taxes withheld for stock awards	(5.0)	(12.0)
Other, net	(10.1)	(0.2)
Cash provided by (used for) financing activities	186.3	(132.6)
Effect of exchange rate changes on cash and cash equivalents	(8.1)	38.0
Net increase in cash and cash equivalents	15.0	0.8
Cash and cash equivalents—beginning of period	474.5	502.7
Cash and cash equivalents—end of period	489.5	503.5
Supplemental disclosure of cash flow information
Cash paid for income taxes	94.1	93.7
Cash paid for interest	$ 29.6	$ 17.1

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 489.5	$ 474.5
Investments	34.3	54.2
Accounts receivable, less allowance for credit losses of $6.5 million and $7.1 million, respectively	382.9	390.4
Income tax receivable	12.7	16.2
Deferred commissions	33.9	35.4
Prepaid expenses	57.1	42.5
Other current assets	24.5	24.8
Total current assets	1,034.9	1,038.0
Goodwill	1,745.6	1,610.8
Intangible assets, net	569.2	379.3
Property, equipment, and capitalized software, less accumulated depreciation and amortization of $962.5 million and $899.9 million, respectively	239.6	231.9
Operating lease assets	164.7	159.0
Investments in unconsolidated entities	49.8	50.3
Deferred tax assets, net	90.8	78.7
Deferred commissions	28.7	30.1
Other assets	22.4	12.1
Total assets	3,945.7	3,590.2
Current liabilities:
Deferred revenue	628.4	586.1
Accrued compensation	181.3	294.2
Accounts payable and accrued liabilities	91.9	97.9
Current portion of long-term debt	18.2	0.0
Operating lease liabilities	41.8	41.8
Income tax payable	14.7	24.0
Other current liabilities	4.0	9.3
Total current liabilities	980.3	1,053.3
Operating lease liabilities	149.7	146.7
Accrued compensation	20.2	20.1
Deferred tax liabilities, net	22.1	27.2
Long-term debt	1,695.1	1,072.6
Deferred revenue	19.1	21.0
Income tax payable	14.4	13.1
Other long-term liabilities	21.0	14.3
Total liabilities	2,921.9	2,368.3
Morningstar, Inc. shareholders’ equity:
Common stock, no par value, 200,000,000 shares authorized, of which 37,513,530 and 39,740,881 shares were outstanding as of June 30, 2026 and December 31, 2025, respectively	0.0	0.0
Treasury stock at cost, 17,565,930 and 15,277,454 shares as of June 30, 2026 and December 31, 2025, respectively	(2,189.1)	(1,785.7)
Additional paid-in capital	915.1	869.5
Retained earnings	2,383.3	2,206.2
Accumulated other comprehensive loss:
Currency translation adjustment	(85.5)	(68.1)
Unrealized loss on available-for-sale investments	0.0	0.0
Total accumulated other comprehensive loss	(85.5)	(68.1)
Total equity	1,023.8	1,221.9
Total liabilities and equity	$ 3,945.7	$ 3,590.2