v3.25.2
Segment and Geographical Area Information (Tables)
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following tables present information about the company’s reportable segments for the three and six months ended June 30, 2025 and 2024, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Prior period segment information is presented on a comparable basis to the basis on which current period segment information is presented and reviewed by the CODM.
Three months ended June 30, 2025
(in millions)Morningstar Direct PlatformPitchBookMorningstar CreditMorningstar WealthMorningstar RetirementTotal Reportable Segments
Revenue by type:
License-based$207.7 $164.7 $5.0 $19.7 $0.4 $397.5 
Asset-based— — — 35.2 32.0 67.2 
Transaction-based1.5 1.8 80.0 9.4 — 92.7 
Total segment revenue209.2 166.5 85.0 64.3 32.4 557.4 
Less:
Compensation expense(1)
58.2 76.3 41.1 28.7 11.3 
Other segment items(2)
54.7 37.4 13.4 32.6 5.7 
Adjusted operating income (loss)$96.3 $52.8 $30.5 $3.0 $15.4 $198.0 
Six months ended June 30, 2025
(in millions)Morningstar Direct PlatformPitchBookMorningstar CreditMorningstar WealthMorningstar RetirementTotal Reportable Segments
Revenue by type:
License-based$406.9 $326.5 $9.6 $38.8 $0.9 $782.7 
Asset-based— — — 71.3 64.4 135.7 
Transaction-based1.5 3.7 148.4 15.5 — 169.1 
Total segment revenue408.4 330.2 158.0 125.6 65.3 1,087.5 
Less:
Compensation expense(1)
115.9 152.4 79.6 58.9 22.9 
Other segment items(2)
109.1 72.7 26.5 64.5 12.4 
Adjusted operating income (loss)$183.4 $105.1 $51.9 $2.2 $30.0 $372.6 
Three months ended June 30, 2024
(in millions)Morningstar Direct PlatformPitchBookMorningstar CreditMorningstar WealthMorningstar RetirementTotal Reportable Segments
Revenue by type:
License-based$195.7 $150.1 $3.7 $19.9 $0.5 $369.9 
Asset-based— — — 35.8 32.8 68.6 
Transaction-based1.2 1.6 73.9 6.9 — 83.6 
Total segment revenue196.9 151.7 77.6 62.6 33.3 522.1 
Less:
Compensation expense(1)
54.0 70.2 37.7 31.2 10.8 
Other segment items(2)
55.6 34.2 12.0 33.6 5.2 
Adjusted operating income (loss)$87.3 $47.3 $27.9 $(2.2)$17.3 $177.6 

Six months ended June 30, 2024
(in millions)Morningstar Direct PlatformPitchBookMorningstar CreditMorningstar WealthMorningstar RetirementTotal Reportable Segments
Revenue by type:
License-based$392.4 $295.7 $7.9 $40.4 $1.0 $737.4 
Asset-based— — — 69.4 60.7 130.1 
Transaction-based1.2 3.6 130.0 11.8 — 146.6 
Total segment revenue393.6 299.3 137.9 121.6 61.7 1,014.1 
Less:
Compensation expense(1)
107.6 146.3 73.1 63.6 21.3 
Other segment items(2)
107.5 65.7 24.6 65.8 8.9 
Adjusted operating income (loss)$178.5 $87.3 $40.2 $(7.8)$31.5 $329.7 
________________________________________________________________________________________
(1) Compensation expense includes salaries, bonus, commissions, severance, employee benefits, payroll taxes, and stock-based compensation incurred for employees directly associated with each reportable segment. Allocated compensation expense related to corporate and centralized functions is reported within Other segment items.

(2) Other segment items for each reportable segment includes:
Morningstar Direct Platform - allocated expenses, infrastructure costs, and other overhead costs.
PitchBook - allocated expenses, infrastructure costs, professional fees, and other overhead costs.
Morningstar Credit - allocated expenses, infrastructure costs, professional fees, and other overhead costs.
Morningstar Wealth - allocated expenses, infrastructure costs, and other overhead costs.
Morningstar Retirement - allocated expenses, infrastructure costs, and other overhead costs.
Reconciliation of Select Segment Information to Consolidated [Table Text Block]
Three months ended June 30,Six months ended June 30,
(in millions)2025202420252024
Reconciliation of reportable segment revenue to consolidated revenue:
Total reportable segment revenue$557.4 $522.1 $1,087.5 $1,014.1 
Corporate and All Other (3)
47.7 49.8 99.5 100.6 
Total consolidated revenue$605.1 $571.9 $1,187.0 $1,114.7 
Reconciliation of reportable segment adjusted operating income to income before income taxes:
Total reportable segment adjusted operating income$198.0 $177.6 $372.6 $329.7 
Corporate and All Other (4)
(54.6)(46.6)(93.8)(87.9)
Intangible amortization expense (15.3)(17.5)(29.7)(35.2)
M&A-related expenses(3.8)(5.0)(10.7)(5.5)
Other non-recurring items0.8 — 0.8 — 
Operating Income125.1 108.5 239.2 201.1 
Non-operating expense, net(8.6)(19.0)(14.2)(24.6)
Equity in investments of unconsolidated entities(1.2)(1.2)(3.8)(2.7)
Income before income taxes$115.3 $88.3 $221.2 $173.8 
___________________________________________________________________________________________
(3) Corporate and All Other provides a reconciliation between revenue from our Total Reportable Segments and consolidated revenue amounts. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes as sources of revenues. Revenue from Morningstar Sustainalytics was $27.3 million and $29.2 million for the three months ended June 30, 2025 and 2024, respectively, and $56.1 million and $60.0 million for the six months ended June 30, 2025 and 2024, respectively. Revenue from Morningstar Indexes was $20.4 million and $20.6 million for the three months ended June 30, 2025 and 2024, respectively, and $43.4 million and $40.6 million for the six months ended June 30, 2025 and 2024, respectively.

(4) Corporate and All Other includes unallocated corporate expenses as well as adjusted operating income (loss) from Morningstar Sustainalytics and Morningstar Indexes. For the second quarters of 2025 and 2024, unallocated corporate expenses were $50.1 million and $46.1 million, respectively. For the first six months of 2025 and 2024, unallocated corporate expenses were $91.9 million and $87.0 million, respectively. Unallocated corporate expenses include finance, human resources, legal, and other management-related costs that are not considered when segment performance is evaluated.
Segment, Reconciliation of Other Items from Segments to Consolidated
The following table presents depreciation expense by reportable segment:
Three months ended June 30,Six months ended June 30,
(in millions)2025202420252024
Morningstar Direct Platform$11.2 $9.5 $22.0 $17.7 
PitchBook8.1 8.3 15.9 15.7 
Morningstar Credit2.0 1.7 4.0 3.6 
Morningstar Wealth4.4 5.0 8.9 9.7 
Morningstar Retirement2.7 2.6 5.3 5.4 
Total Reportable Segments28.4 27.1 56.1 52.1 
Corporate and All Other (5)
4.8 4.4 9.9 8.6 
Total$33.2 $31.5 $66.0 $60.7 
___________________________________________________________________________________________
(5) Corporate and All Other provides a reconciliation between depreciation expense from our Total Reportable Segments and consolidated depreciation expense. Corporate and All Other includes unallocated corporate expenses of depreciation expense related to finance, human resources, legal, and other management-related costs that are not considered when segment performance is evaluated as well as depreciation expense from Morningstar Sustainalytics and Morningstar Indexes.
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
The tables below summarize our revenue, long-lived assets, which includes property, equipment, and capitalized software, net, and operating lease assets by geographical area. Revenue is attributed to geographical area based on country in which the sale was contracted.
Revenue by geographical areaThree months ended June 30,Six months ended June 30,
(in millions)2025202420252024
United States$431.6 $410.3 $856.1 $801.2 
Asia12.2 13.0 24.1 25.7 
Australia16.2 15.7 31.3 30.7 
Canada38.6 37.8 71.7 70.4 
Continental Europe55.0 50.1 105.6 99.8 
United Kingdom48.2 42.0 91.9 80.9 
Other3.3 3.0 6.3 6.0 
Total International173.5 161.6 330.9 313.5 
Consolidated revenue$605.1 $571.9 $1,187.0 $1,114.7 
Property, equipment, and capitalized software, net by geographical area
(in millions)As of June 30, 2025As of December 31, 2024
United States$184.3 $189.5 
Asia9.8 9.6 
Australia1.5 1.6 
Canada17.6 6.6 
Continental Europe6.5 5.3 
United Kingdom5.7 6.1 
Other0.2 0.2 
Total International41.3 29.4 
Consolidated property, equipment, and capitalized software, net$225.6 $218.9 

Operating lease assets by geographical area
(in millions)As of June 30, 2025As of December 31, 2024
United States$84.9 $92.9 
Asia41.7 44.2 
Australia2.0 2.4 
Canada6.8 7.7 
Continental Europe17.1 19.1 
United Kingdom11.9 14.7 
Other0.1 0.2 
Total International79.6 88.3 
Consolidated operating lease assets$164.5 $181.2