MSCI Inc. stock research
FY2025 Q1
MSCI (MSCI) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but higher year over year. Cost of revenue rose relative to both periods, resulting in a gross margin that weakened from the prior quarter but improved from the same quarter a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but higher year over year. Cost of revenue rose relative to both periods, resulting in a gross margin that weakened from the prior quarter but improved from the same quarter a year ago.
- The gross margin declined from the prior quarter, driven by a larger increase in cost of revenue relative to the change in revenue. Compared to the same quarter last year, the margin improved as revenue growth outpaced the increase in cost of revenue.
- Versus the prior quarter, revenue was slightly higher but gross profit was lower, and cost of revenue increased, leading to a weaker gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.0%
Gross profit
$604.3M
Revenue
$745.8M
Cost of revenue
$141.5M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $707.9M | $575.6M | $132.3M | 81.3% |
| Sep 30, 2024 | $724.7M | $594.2M | $130.5M | 82.0% |
| Dec 31, 2024 | $743.5M | $607.6M | $135.9M | 81.7% |
| Mar 31, 2025 | $745.8M | $604.3M | $141.5M | 81.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.7 pts
Year-over-year change
Mar 31, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined from the prior quarter, driven by a larger increase in cost of revenue relative to the change in revenue. Compared to the same quarter last year, the margin improved as revenue growth outpaced the increase in cost of revenue.
Versus the prior quarter, revenue was slightly higher but gross profit was lower, and cost of revenue increased, leading to a weaker gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth in the current quarter contributed to the sequential margin decline.