MSCI Inc. stock research
FY2025 Q3
MSCI (MSCI) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sequentially and was also higher than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sequentially and was also higher than the same quarter one year earlier.
- The strongest observable margin driver is the combination of higher revenue and lower cost of revenue relative to the prior quarter, which directly lifted gross margin. Compared to a year ago, revenue growth outpaced the increase in cost of revenue, supporting margin expansion.
- Compared to the immediately preceding quarter, gross margin improved as revenue rose and cost of revenue declined. Versus the same quarter one year earlier, gross margin was higher, with revenue growth exceeding the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.6%
Gross profit
$655.1M
Revenue
$793.4M
Cost of revenue
$138.3M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $743.5M | $607.6M | $135.9M | 81.7% |
| Mar 31, 2025 | $745.8M | $604.3M | $141.5M | 81.0% |
| Jun 30, 2025 | $772.7M | $629.6M | $143.1M | 81.5% |
| Sep 30, 2025 | $793.4M | $655.1M | $138.3M | 82.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.1 pts
Year-over-year change
Sep 30, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the combination of higher revenue and lower cost of revenue relative to the prior quarter, which directly lifted gross margin. Compared to a year ago, revenue growth outpaced the increase in cost of revenue, supporting margin expansion.
Compared to the immediately preceding quarter, gross margin improved as revenue rose and cost of revenue declined. Versus the same quarter one year earlier, gross margin was higher, with revenue growth exceeding the increase in cost of revenue.
Monitor the trend in cost of revenue, which declined from the prior quarter but increased year over year, as its movement relative to revenue will continue to influence gross margin.