MSCI Inc. stock research
FY2025 Q4
MSCI (MSCI) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased both sequentially and year-over-year, driving a corresponding rise in gross profit. Cost of revenue also grew, resulting in a gross margin that was stable compared to the same quarter last year but slightly lower than the prior quarter.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased both sequentially and year-over-year, driving a corresponding rise in gross profit. Cost of revenue also grew, resulting in a gross margin that was stable compared to the same quarter last year but slightly lower than the prior quarter.
- The primary observable driver of the gross margin change is the relationship between cost of revenue and revenue growth. In the current quarter, cost of revenue increased at a faster rate than revenue, leading to a slight compression in gross margin relative to the preceding quarter.
- Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue rose more sharply, causing gross margin to weaken. Versus the same quarter a year ago, revenue and gross profit were higher, and gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.7%
Gross profit
$671.7M
Revenue
$822.5M
Cost of revenue
$150.9M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $822.5M | $671.7M | $150.9M | 81.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.9 pts
Year-over-year change
Dec 31, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change is the relationship between cost of revenue and revenue growth. In the current quarter, cost of revenue increased at a faster rate than revenue, leading to a slight compression in gross margin relative to the preceding quarter.
Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue rose more sharply, causing gross margin to weaken. Versus the same quarter a year ago, revenue and gross profit were higher, and gross margin was unchanged.
Monitor the trajectory of cost of revenue relative to revenue to assess potential future margin pressure.