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The accompanying unaudited consolidated financial statements of Morningstar, Inc. and subsidiaries (Morningstar, we, our, the company) have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues, and expenses. Actual results could differ from those estimates. In the opinion of management, the statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position, results of operations, equity, and cash flows. These financial statements and notes are unaudited and should be read in conjunction with our Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 13, 2026 (our Annual Report).

The acronyms that appear in the Notes to our Unaudited Consolidated Financial Statements refer to the following:

APB: Accounting Principles Board

ASC: Accounting Standards Codification

ASU: Accounting Standards Update

FASB: Financial Accounting Standards Board

Our significant accounting policies are included in Note 2 of the Notes to our Audited Consolidated Financial Statements included in our Annual Report.

Recently Issued Accounting Pronouncements Not Yet Adopted

Income Statement: In November 2024, the FASB issued ASU No. 2024-03: Disaggregation of Income Statement Expenses (DISE) (ASU No. 2024-03), which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. This standard is effective for our fiscal year beginning on January 1, 2027 and interim periods beginning on January 1, 2028. Early adoption is permitted. Entities should apply the guidance prospectively although retrospective application is permitted. We are evaluating the effect that ASU No. 2024-03 will have on our disclosures.

Capitalized Software: In September 2025, the FASB issued ASU No. 2025-06: Targeted Improvements to the Accounting for Internal-Use Software (ASU No. 2025-06) to clarify and modernize the recognition and disclosure framework for internal-use software costs. This standard removes all references to software development project stages and requires capitalization to begin once (1) management commits funding and (2) completion and intended use are probable, considering whether significant development uncertainties have been resolved. This standard is effective for our fiscal year beginning on January 1, 2028 and interim reporting periods within that fiscal year. Early adoption is permitted. Entities may apply the guidance using a prospective, retrospective, or modified transition approach. We have not made a decision regarding early adoption and are evaluating the effect that ASU No. 2025-06 will have on our consolidated financial statements.

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Debt

The following table summarizes our debt as of June 30, 2026 and December 31, 2025:

(in millions)						As of June 30, 2026						As of December 31, 2025
2025 Term Facility, net of unamortized debt issuance costs of $1.2 million and $1.5 million, respectively						$	744.1					$	373.5
2025 Revolving Credit Facility						620.0						350.0
2.32% Senior Notes due October 26, 2030, net of unamortized debt issuance costs of $0.8 million and $0.9 million, respectively						349.2						349.1
Total debt						$	1,713.3					$	1,072.6

Credit Agreement

On October 31, 2025, the company entered into a senior credit agreement (the 2025 Credit Agreement).The 2025 Credit Agreement provides the company with a multi-currency credit facility with a borrowing capacity of up to $1.5 billion, including a five-year $750.0 million revolving credit facility (the 2025 Revolving Credit Facility), a five-year delayed draw term facility of up to $375.0 million (the 2025 A-1 Facility), and a three-year term facility of up to $375.0 million (the 2025 A-2 Facility and, together with the 2025 A-1 Facility, the 2025 Term Facility; and, together with the 2025 Revolving Credit Facility, the 2025 Facility). The 2025 Credit Agreement also provides for the issuance of up to $50.0 million of letters of credit and a $100.0 million sublimit for a swingline facility under the 2025 Revolving Credit Facility.

As of June 30, 2026, the total outstanding debt under the 2025 Credit Agreement was $1.4 billion, net of debt issuance costs, including $370.3 million drawn under the 2025 A-1 Facility, $375.0 million drawn under the 2025 A-2 Facility, and $620.0 million drawn under the 2025 Revolving Credit Facility. The company's borrowing availability includes $130.0 million under the 2025 Revolving Credit Facility.

The proceeds borrowed under the 2025 Facility were used to refinance existing indebtedness under the company's prior credit agreement, pay fees and expenses in connection with the 2025 Facility, finance the acquisition of the Center for Research in Security Prices, LLC (CRSP), and for general corporate purposes.

The interest rate applicable to loans under the 2025 Credit Agreement is based on the SOFR, SONIA, EURIBOR, Term CORRA, or BBSY depending on the currency of the loan and will include an applicable margin for such loans, which ranges between 1.05% and 1.425%, based on Morningstar’s consolidated net leverage ratio and other applicable adjustments as further described in the 2025 Credit Agreement.

The portions of deferred debt issuance costs related to the 2025 Revolving Credit Facility are included in other current and non-current assets, and the portion of deferred debt issuance costs related to the 2025 Term Facility is reported as a reduction to the carrying amount of the 2025 Term Facility. Debt issuance costs related to the 2025 Revolving Credit Facility are amortized on a straight-line basis to interest expense over the term of the 2025 Credit Agreement. Debt issuance costs related to the 2025 Term Facility are amortized to interest expense using the effective interest method over the term of the 2025 Credit Agreement.

Private Placement Debt Offering

On October 26, 2020, we issued and sold $350.0 million aggregate principal amount of 2.32% senior notes due October 26, 2030 (the 2030 Notes), in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. Proceeds were primarily used to pay off a portion of the company's outstanding debt under a prior credit agreement. Interest on the 2030 Notes will be paid semi-annually on each October 30 and April 30 during the term of the 2030 Notes and at maturity, with the first interest payment date having occurred on April 30, 2021. As of June 30, 2026, our total outstanding debt, net of issuance costs, under the 2030 Notes was $349.2 million.

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Compliance with Covenants

Each of the 2025 Credit Agreement and the 2030 Notes include customary representations, warranties, and covenants, including financial covenants, that require us to maintain specified ratios of consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) to consolidated interest charges and consolidated net funded indebtedness (in the case of the 2025 Credit Agreement) or consolidated funded indebtedness (in the case of the 2030 Notes) to consolidated EBITDA, which are evaluated on a quarterly basis. We were in compliance with these financial covenants as of June 30, 2026.

2026 Acquisitions

Acquisition of CRSP

On February 2, 2026, we acquired 100% of the equity interests in CRSP, a provider of historical stock market data and indexes, from the University of Chicago. The closing consideration of $363.0 million was paid in cash and reflects adjustments for estimated available cash, indebtedness, and working capital. We began consolidating the financial results of CRSP in our consolidated financial statements as of February 2, 2026. CRSP is included in the Morningstar Indexes operating segment.

The acquisition was accounted for as a business combination under the acquisition method of accounting pursuant to FASB ASC 805, Business Combinations (FASB ASC 805), which requires that assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. As of March 31, 2026, we completed our initial determination of the fair values of the acquired identifiable assets and liabilities based on the financial data available. Based on the timing of the closing of this transaction, certain valuation calculations are considered preliminary due to information that may subsequently become available, and values assigned to various assets and liabilities could change.

The acquisition date fair value of certain assets and liabilities, including intangible assets acquired and related weighted average expected life calculations, are provisional and subject to revision within one year of the acquisition date. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. During the second quarter of 2026, we did not record significant adjustments to the purchase price allocation compared with the preliminary estimates recorded in the first quarter of 2026.

The following table summarizes our preliminary allocation of the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

						(in millions)
Fair value of consideration transferred						$	363.0
Cash and cash equivalents						$	3.4
Accounts receivable						6.0
Other current and non-current assets						15.3
Intangible assets, net						233.0
Deferred revenue						(22.9)
Other current and non-current liabilities						(11.7)
Total fair value of net assets acquired						$	223.1
Goodwill						$	139.9

Acquired accounts receivable were recorded at fair value and reflect the best estimate at the acquisition date of the contractual cash flows expected to be collected.

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The preliminary allocation of the estimated fair values of the assets acquired and liabilities assumed includes $233.0 million of acquired intangible assets, as follows:

						(in millions)						Weighted average useful life (years)
Customer-related assets						$	113.0					13
Technology-based assets						115.0						8
Intellectual property						5.0						7
Total intangible assets						$	233.0

Goodwill of $139.9 million represents the excess over the fair value of the net tangible and intangible assets acquired. We paid this premium for several reasons, including the opportunity to strengthen our market position and expand our presence among index providers of US equity index funds.

The value assigned to goodwill and intangible assets are deductible for income tax purposes over a period of approximately 15 years from the acquisition date.

2025 Acquisitions

Morningstar Credit Analytics (formerly Dealview Technologies Limited (DealX))

On March 1, 2025, we acquired the remaining 65% of the equity interests in DealX, a provider of standardized US commercial mortgage-backed security (CMBS) and global collateralized loan obligation (CLO) data. We began consolidating the financial results of DealX in our consolidated financial statements as of March 1, 2025. DealX is included in the Morningstar Credit segment and has been renamed Morningstar Credit Analytics.

The acquisition was accounted for as a business combination under the acquisition method of accounting pursuant to FASB ASC 805, Business Combinations (FASB ASC 805), which requires that assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. We finalized the purchase price allocation during the fourth quarter of 2025 and did not record any significant adjustments compared to the preliminary estimates.

The allocation of the fair values of the assets acquired and liabilities assumed includes $9.7 million of goodwill, which is not deductible for income tax purposes, and $13.1 million of acquired intangible assets, as follows:

						(in millions)						Weighted average useful life (years)
Customer-related assets						$	0.6					10
Technology-based assets						12.5						5
Total intangible assets						$	13.1

Lumonic Inc. (Lumonic)

On March 3, 2025, we acquired 100% of the equity interests in Lumonic, a private credit portfolio monitoring and management platform. We began consolidating the financial results of Lumonic in our consolidated financial statements as of March 3, 2025. Lumonic is included in the PitchBook segment.

The acquisition was accounted for as a business combination under the acquisition method of accounting pursuant to FASB ASC 805, which requires that assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. We finalized the purchase price allocation during the fourth quarter of 2025 and did not record any significant adjustments compared to the preliminary estimates.

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The allocation of the fair values of the assets acquired and liabilities assumed includes $21.3 million of goodwill, which is not deductible for income tax purposes, and $10.6 million of acquired intangible assets, as follows:

						(in millions)						Weighted average useful life (years)
Customer-related assets						$	1.4					15
Technology-based assets						9.1						8
Intellectual property						0.1						3
Total intangible assets						$	10.6

Goodwill

The following table shows the changes in our goodwill balances from December 31, 2025 to June 30, 2026:

(in millions)						Morningstar Direct Platform						PitchBook						Morningstar Credit						Morningstar Wealth						Morningstar Retirement						Total Reportable Segments						Corporate and All Other						Total
Balance as of December 31, 2025						$	608.6					$	628.7					$	119.6					$	90.3					$	93.5					$	1,540.7					$	70.1					$	1,610.8
Acquisition of CRSP						—						—						—						—						—						—						139.9						139.9
Foreign currency translation and other						(4.4)						—						(1.6)						1.2						—						(4.8)						(0.3)						(5.1)
Balance as of June 30, 2026						$	604.2					$	628.7					$	118.0					$	91.5					$	93.5					$	1,535.9					$	209.7					$	1,745.6

Refer to Note 7 for detailed segment information.

Intangible Assets

The following table summarizes our intangible assets:

						As of June 30, 2026																					As of December 31, 2025
(in millions)						Gross						Accumulated Amortization						Net												Gross						Accumulated Amortization						Net
Customer-related assets						$	689.8					$	(341.0)					$	348.8											$	583.9					$	(324.1)					$	259.8
Technology-based assets						439.1						(237.9)						201.2												328.0						(225.5)						102.5
Intellectual property & other						95.0						(75.8)						19.2												91.2						(74.2)						17.0
Total intangible assets						$	1,223.9					$	(654.7)					$	569.2											$	1,003.1					$	(623.8)					$	379.3

 

The following table summarizes our amortization expense related to intangible assets:

						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
Amortization expense						$	20.9					$	15.3					$	39.9					$	29.7

 

We amortize intangible assets using the straight-line method over their estimated useful lives.

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Based on acquisitions completed through June 30, 2026, we expect intangible amortization expense for each of the next five years and thereafter as follows:

(in millions)						As of June 30, 2026
Remainder of 2026 (July 1 through December 31)						$	37.8
2027						73.1
2028						69.1
2029						66.0
2030						60.2
Thereafter						263.0
Total						$	569.2

Our estimates of future amortization expense for intangible assets may be affected by future acquisitions, divestitures, changes in the estimated useful lives, impairments, and foreign currency translation.

The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted net income per share:

						Three months ended June 30,												Six months ended June 30,
(in millions, except per share amounts)						2026						2025						2026						2025
Basic net income per share:
Consolidated net income						$	107.8					$	89.0					$	214.9					$	167.5
Weighted average common shares outstanding						37.8						42.2						38.5						42.5
Basic net income per share						$	2.85					$	2.11					$	5.59					$	3.94
Diluted net income per share:
Consolidated net income						$	107.8					$	89.0					$	214.9					$	167.5
Weighted average common shares outstanding						37.8						42.2						38.5						42.5
Net effect of dilutive stock awards						0.3						0.3						0.2						0.3
Weighted average common shares outstanding for computing diluted income per share						38.1						42.5						38.7						42.8
Diluted net income per share						$	2.83					$	2.09					$	5.55					$	3.91

During the periods presented, we have outstanding restricted stock units (RSUs), market stock units (MSUs), and performance stock units (PSUs) that are excluded from our calculation of diluted earnings per share as their effect is antidilutive. The amount of these potential antidilutive shares was immaterial.

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Disaggregation of Revenue

The following table presents our revenue disaggregated by revenue type:

						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
License-based						$	455.1					$	428.4					$	900.0					$	846.4
Asset-based						96.8						82.4						191.9						168.1
Transaction-based						111.3						94.3						216.1						172.5
Consolidated revenue						$	663.2					$	605.1					$	1,308.0					$	1,187.0

Contract Liabilities

Our contract liabilities represent deferred revenue. We record deferred revenue when a contract requires a customer to be billed in advance. The following table summarizes our contract liabilities balance:

(in millions)						As of June 30, 2026						As of December 31, 2025
Deferred revenue (current)						$	628.4					$	586.1
Deferred revenue (non-current)						19.1						21.0
Total contract liabilities						$	647.5					$	607.1

The following table presents revenue recognized that was included in the deferred revenue balance at the beginning of the period:

						Six months ended June 30,
(in millions)						2026						2025
Revenue recognized that was included in opening deferred revenue						$	440.2					$	395.5

Remaining Performance Obligations

Remaining performance obligations include both amounts recorded as deferred revenue in our Consolidated Balance Sheets as of June 30, 2026 as well as amounts not yet invoiced to customers as of June 30, 2026, largely reflecting future revenue related to signed multi-year arrangements. As of June 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.6 billion. We expect to recognize into revenue 45% of this balance during the remainder of 2026, 35% of this balance in 2027, 13% of this balance in 2028, and the remaining amount thereafter.

The percentages in the prior paragraph exclude variable consideration for unsatisfied performance obligations related to certain of our license-based, asset-based, and transaction-based contracts as we apply the optional exemption available under FASB ASC Topic 606. These performance obligations are expected to be satisfied over the next one to three years. Variable consideration for these contracts cannot be reasonably estimated because it depends on factors such as future user licenses, changes in the underlying asset values, or the number of internet advertising impressions in any given period, which are only known as services are performed.

The percentages above also exclude unsatisfied performance obligations for certain license-based contracts with durations of one year or less as we apply the optional exemption under FASB ASC Topic 606. For certain license-based contracts, the remaining performance obligations are expected to be less than one year based on the subscription terms or the existence of cancellation terms that may be exercised causing the contract term to be less than one year from June 30, 2026.

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Contract Assets

Our contract assets represent accounts receivable, less allowance for credit losses, and deferred commissions.

The following table summarizes our contract assets balance:

(in millions)						As of June 30, 2026						As of December 31, 2025
Accounts receivable, less allowance for credit losses						$	382.9					$	390.4
Deferred commissions						62.6						65.5
Total contract assets						$	445.5					$	455.9

 

Segment Information

Our segments are generally organized around the company's products offerings. The company has concluded that it has seven operating segments, which are presented as the following five reportable segments:

•Morningstar Direct Platform

•PitchBook

•Morningstar Credit

•Morningstar Wealth

•Morningstar Retirement

The operating segments of Morningstar Sustainalytics and Morningstar Indexes do not individually meet the quantitative segment reporting thresholds and have been combined and presented as part of Corporate and All Other, which is not a reportable segment. Corporate and All Other provides a reconciliation between revenue from our total reportable segments and consolidated revenue amounts.

Morningstar Direct Platform provides investors comprehensive data, research and insights, and investment analysis to empower investment decision-making. Morningstar Direct Platform includes product areas such as Morningstar Data, Morningstar Direct, and Morningstar Advisor Workstation.

PitchBook provides investors with access to data, proprietary research, analytics, and AI-enabled software across private capital markets, including venture capital, private equity, private credit, bank loans, and M&A. The platform offers access to Morningstar’s public-equity data and research.

Morningstar Credit provides investors with credit ratings, research, data, and credit analytics solutions. Morningstar Credit includes the Morningstar DBRS product area and the Morningstar Credit data and credit analytics product areas.

Morningstar Wealth provides investment products, investor tools, and an advisor platform powered by our research and data. Morningstar Wealth serves financial advisors through model portfolios, separately managed accounts, and an advisor platform powered by our research and data, and individuals through Morningstar Investor.

Morningstar Retirement offers products designed to help individuals reach their retirement goals. Its offerings include managed retirement accounts, fiduciary services, and custom models.

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FASB ASC 280 Segment Reporting (FASB ASC 280) establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and assess performance. The company's chief executive officer, who is considered to be its CODM, reviews segment revenue and Segment Adjusted Operating Income presented on an operating segment basis for purposes of making operating decisions and assessing financial performance. For each segment, the CODM uses segment revenue and Segment Adjusted Operating Income in the annual budget and forecasting process. The CODM considers budget-to-actual variance when making decisions about allocating capital and personnel.

We define Segment Adjusted Operating Income as operating income (loss) excluding intangible amortization expense, the impact of merger, acquisition, and divestiture-related activity which, when applicable, may include certain non-recurring expenses such as pre-deal due diligence, transaction costs, contingent consideration, severance, and post-close integration costs (M&A-related expenses), and certain other one-time, non-recurring items which management does not consider when evaluating ongoing performance (other non-recurring items).

Although these adjustments are excluded from Segment Adjusted Operating Income, they are included in reported consolidated operating income and are included in the reconciliation to consolidated results. The CODM does not consider these adjustments for the purposes of making decisions to allocate resources among segments or to assess segment performance.

Expenses presented as part of the company's segments include allocations of shared costs. Shared costs include technology, investment research, sales, facilities, and marketing. These allocations are based on expected utilization of shared resources. Adjusted Operating Income is the reported measure that the company believes is most consistent with those used in measuring the corresponding amount in the consolidated financial statements.

The CODM does not review any information regarding total assets on a segment basis. Operating segments do not record intersegment revenues; therefore, there is none to be reported.

The following tables present information about the company’s reportable segments for the three and six months ended June 30, 2026 and 2025, 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, 2026
(in millions)						Morningstar Direct Platform						PitchBook						Morningstar Credit						Morningstar Wealth						Morningstar Retirement						Total Reportable Segments
Revenue by type:
License-based						$	220.6					$	172.7					$	6.4					$	13.5					$	0.4					$	413.6
Asset-based						—						—						—						37.6						37.5						75.1
Transaction-based						1.5						2.0						98.5						9.2						—						111.2
Total segment revenue						222.1						174.7						104.9						60.3						37.9						599.9
Less:
Compensation expense(1)						64.6						79.3						49.9						24.8						12.4
Other segment items(2)						57.2						42.4						16.5						27.6						6.1
Adjusted operating income						$	100.3					$	53.0					$	38.5					$	7.9					$	19.4					$	219.1

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						Three months ended June 30, 2025
(in millions)						Morningstar Direct Platform						PitchBook						Morningstar Credit						Morningstar Wealth						Morningstar Retirement						Total 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-based						1.5						1.8						80.0						9.4						—						92.7
Total segment revenue						209.2						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						$	96.3					$	52.8					$	30.5					$	3.0					$	15.4					$	198.0

						Six months ended June 30, 2026
(in millions)						Morningstar Direct Platform						PitchBook						Morningstar Credit						Morningstar Wealth						Morningstar Retirement						Total Reportable Segments
Revenue by type:
License-based						$	435.8					$	343.2					$	12.2					$	27.7					$	0.8					$	819.7
Asset-based						—						—						—						74.1						75.9						150.0
Transaction-based						1.5						3.9						193.7						16.5						—						215.6
Total segment revenue						437.3						347.1						205.9						118.3						76.7						1,185.3
Less:
Compensation expense(1)						133.2						158.7						94.3						49.7						24.4
Other segment items(2)						112.8						83.8						31.9						55.1						13.1
Adjusted operating income						$	191.3					$	104.6					$	79.7					$	13.5					$	39.2					$	428.3

						Six months ended June 30, 2025
(in millions)						Morningstar Direct Platform						PitchBook						Morningstar Credit						Morningstar Wealth						Morningstar Retirement						Total 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-based						1.5						3.7						148.4						15.5						—						169.1
Total segment revenue						408.4						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						$	183.4					$	105.1					$	51.9					$	2.2					$	30.0					$	372.6

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(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.

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						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
Reconciliation of reportable segment revenue to consolidated revenue:
Total reportable segment revenue						$	599.9					$	557.4					$	1,185.3					$	1,087.5
Corporate and All Other (3)						63.3						47.7						122.7						99.5
Total consolidated revenue						$	663.2					$	605.1					$	1,308.0					$	1,187.0
Reconciliation of reportable segment adjusted operating income to income before income taxes:
Total reportable segment adjusted operating income						$	219.1					$	198.0					$	428.3					$	372.6
Corporate and All Other (4)						(43.2)						(54.6)						(73.8)						(93.8)
Intangible amortization expense						(20.9)						(15.3)						(39.9)						(29.7)
M&A-related expenses						(1.2)						(3.8)						(5.8)						(10.7)
Other non-recurring items						6.8						0.8						7.7						0.8
Operating Income						160.6						125.1						316.5						239.2
Non-operating expense, net						(13.6)						(8.6)						(27.7)						(14.2)
Equity in investments of unconsolidated entities						(0.9)						(1.2)						(1.0)						(3.8)
Income before income taxes						$	146.1					$	115.3					$	287.8					$	221.2

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(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 $25.5 million and $27.3 million for the three months ended June 30, 2026 and 2025, respectively, and $52.1 million and $56.1 million for the six months ended June 30, 2026, and 2025, respectively. Revenue from Morningstar Indexes was $37.8 million and $20.4 million for the three months ended June 30, 2026 and 2025, respectively, and $70.6 million and $43.4 million for the six months ended June 30, 2026, and 2025, 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 three months ended June 30, 2026 and 2025, unallocated corporate expenses were $55.6 million and $50.1 million, respectively. For the six months ended June 30, 2026 and 2025, unallocated corporate expenses were $97.4 million and $91.9 million, respectively. Unallocated corporate expenses include finance, human resources, legal, and other management-related costs that are not considered when segment performance is evaluated.

The following table presents depreciation expense by reportable segment:

						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
Morningstar Direct Platform						$	9.2					$	11.2					$	18.7					$	22.0
PitchBook						8.8						8.1						16.7						15.9
Morningstar Credit						1.4						2.0						2.8						4.0
Morningstar Wealth						1.2						4.4						2.8						8.9
Morningstar Retirement						2.2						2.7						4.5						5.3
Total Reportable Segments						22.8						28.4						45.5						56.1
Corporate and All Other (5)						9.9						4.8						19.8						9.9
Total						$	32.7					$	33.2					$	65.3					$	66.0

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(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.

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Geographical Area Information

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 area						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
United States						$	479.1					$	431.6					$	941.1					$	856.1
Asia						12.1						12.2						23.9						24.1
Australia						19.4						16.2						37.5						31.3
Canada						46.6						38.6						89.3						71.7
Continental Europe						55.0						55.0						112.0						105.6
United Kingdom						47.3						48.2						96.5						91.9
Other						3.7						3.3						7.7						6.3
Total International						184.1						173.5						366.9						330.9
Consolidated revenue						$	663.2					$	605.1					$	1,308.0					$	1,187.0

Property, equipment, and capitalized software, net by geographical area
(in millions)						As of June 30, 2026						As of December 31, 2025
United States						$	178.2					$	178.6
Asia						32.0						22.8
Australia						0.9						1.1
Canada						18.4						17.9
Continental Europe						5.3						6.3
United Kingdom						4.7						4.9
Other						0.1						0.3
Total International						61.4						53.3
Consolidated property, equipment, and capitalized software, net						$	239.6					$	231.9

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Operating lease assets by geographical area
(in millions)						As of June 30, 2026						As of December 31, 2025
United States						$	71.0					$	74.9
Asia						62.1						48.7
Australia						1.1						1.5
Canada						8.2						7.8
Continental Europe						15.8						16.5
United Kingdom						6.0						9.0
Other						0.5						0.6
Total International						93.7						84.1
Consolidated operating lease assets						$	164.7					$	159.0

The tables below present information about items that are measured at fair value:

						Fair Value as of						Level within the Fair Value Hierarchy as of June 30, 2026
(in millions)						June 30, 2026						Level 1						Level 2						Level 3
Cash equivalents						$	37.1					$	37.1					$	—					$	—
Investments:
Marketable equity investments, exchange-traded funds, and mutual funds						30.0						30.0						—						—
Marketable debt securities						1.5						1.5						—						—
Total						$	68.6					$	68.6					$	—					$	—

						Fair Value as of						Level within the Fair Value Hierarchy as of December 31, 2025
(in millions)						December 31, 2025						Level 1						Level 2						Level 3
Cash equivalents						$	40.1					$	40.1					$	—					$	—
Investments:
Marketable equity investments, exchange-traded funds, and mutual funds						50.0						50.0						—						—
Marketable debt securities						1.5						1.5						—						—
Total						$	91.6					$	91.6					$	—					$	—

As of June 30, 2026 and December 31, 2025, our investment in unconsolidated entities balance totaled $49.8 million and $50.3 million, respectively. We have investments in both equity method investments and investments in equity securities with and without a readily determinable fair value.

The carrying amount of investments in equity securities without a readily determinable fair value, including our investment in SmartX Advisory Solutions, was $44.2 million and $44.0 million as of June 30, 2026 and December 31, 2025, respectively. We did not record any material adjustments or impairment losses in the first six months of 2026 or 2025.

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We lease office space and certain equipment under various operating leases, with most of our lease portfolio consisting of operating leases for office space. Our leases have remaining lease terms of approximately 1 year to 10 years, which may include the option to extend the lease when it is reasonably certain we will exercise that option. We do not have lease agreements with residual value guarantees, sale leaseback terms, or material restrictive covenants.

The following table presents the components of lease cost:

						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
Operating lease cost						$	13.0					$	11.2					$	25.1					$	22.2
Variable lease cost						$	4.9					$	5.0					$	8.8					$	7.8

The following table presents other information related to operating leases:

						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
Cash paid for amounts included in the measurement for operating lease liabilities						$	12.7					$	11.4					$	25.0					$	20.8
Right of use assets obtained in exchange for operating lease liability						$	8.3					$	0.8					$	26.9					$	0.8

The following table shows our minimum future lease commitments due in the remainder of 2026, each of the next four subsequent years, and thereafter, for operating leases:

(in millions)						As of June 30, 2026
Remainder of 2026 (July 1 through December 31)						$	25.5
2027						45.8
2028						38.9
2029						27.7
2030						21.2
Thereafter						63.6
Total minimum lease commitments						222.7
Adjustment for discount to present value						31.2
Present value of lease liabilities						$	191.5

The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates for our operating leases:

						As of June 30, 2026
Weighted-average remaining lease term (in years)						5.8
Weighted-average discount rate						4.8		%

 

Stock-Based Compensation Plans

 

Our employees and our non-employee directors are eligible for awards under the Morningstar Amended and Restated 2011 Stock Incentive Plan, which provides for a variety of equity-based awards, including stock options, RSUs, MSUs, PSUs, and restricted stock.

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The following table summarizes the stock-based compensation expense included in each of our operating expense categories:

						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
Cost of revenue						$	8.6					$	8.2					$	12.9					$	11.7
Sales and marketing						2.9						3.1						4.2						5.0
General and administrative						15.8						7.1						21.0						10.8
Total stock-based compensation expense						$	27.3					$	18.4					$	38.1					$	27.5

As of June 30, 2026, the total unrecognized stock-based compensation cost related to outstanding RSUs, MSUs, and PSUs expected to vest was $101.5 million, which we expect to recognize over a weighted average period of 29 months.

The following table shows our effective tax rate for the three and six months ended June 30, 2026 and June 30, 2025:

						Three months ended June 30,												Six months ended June 30,
(in millions)						2026						2025						2026						2025
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 before income taxes						$	146.1					$	115.3					$	287.8					$	221.2
Income tax expense						$	38.3					$	26.3					$	72.9					$	53.7
Effective tax rate						26.2		%				22.8		%				25.3		%				24.3		%

Our effective tax rate in the second quarter and first six months of 2026 was 26.2% and 25.3%, respectively, reflecting an increase of 3.4 and 1.0 percentage points, respectively, compared with the same prior year periods. Our effective tax rate increased in 2026 due to deferred taxes recorded in the second quarter of 2026 with respect to unremitted foreign earnings from some of our non-US subsidiaries as well as from a negative tax impact due to the vesting of employee stock-based compensation compared with the excess tax benefits that were recognized in 2025. When stock-based compensation vests at a lower share price than the original grant price, a negative tax impact results. This reduces our tax deduction for stock-based compensation and resulted in an increase to our effective tax rate in the second quarter of 2026.

The Organization for Economic Co-operation and Development (OECD) has proposed a global minimum tax of 15% of reported profits (Pillar Two) that has been agreed upon in principle by over 140 countries. Since the proposal, many countries have incorporated Pillar Two model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar Two differently than the model rules and on different timelines. On January 5, 2026, the OECD announced changes to the model rules to include the “side by side” arrangement, which contains simplification measures as well as an exemption for US parented companies from certain aspects of the Pillar Two regime. The updated model rules will need to be enacted into local legislation to become effective. Pillar Two did not have a material impact on our consolidated financial statements as of June 30, 2026. We are continuing to monitor developments and administrative guidance in addition to evaluating the potential impact of Pillar Two on our consolidated financial statements for future periods.

On July 4, 2025, the One Big Beautiful Bill Act (OBBB) was enacted in the United States (US). The OBBB contains several changes impacting corporate taxpayers, including modifications to the capitalization of research and development expenses, changes to calculations for the limitation on deductions for interest expense, and the reestablishment of accelerated depreciation (full expensing) on fixed assets. The OBBB also includes adjustments to the calculation of certain international tax framework provisions, which were initially established by the Tax Cuts and Jobs Act of 2017. The OBBB has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBB did not have a material impact on our consolidated financial statements as of June 30, 2026.

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Unrecognized Tax Benefits

The table below provides information concerning our gross unrecognized tax benefits as of June 30, 2026 and December 31, 2025, as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.

(in millions)						As of June 30, 2026						As of December 31, 2025
Gross unrecognized tax benefits						$	13.4					$	12.3
Gross unrecognized tax benefits that would affect income tax expense						$	13.4					$	12.3
Decrease in income tax expense upon recognition of gross unrecognized tax benefits						$	13.0					$	11.9

As of June 30, 2026, our Unaudited Consolidated Balance Sheet included a liability of $14.5 million for unrecognized tax benefits. As of December 31, 2025, our Consolidated Balance Sheet included a liability of $13.1 million for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits.

We conduct business globally, and, as a result, we file income tax returns in US federal, state, local, and foreign jurisdictions. In the normal course of business, we are subject to examination by tax authorities throughout the world. The open tax years for our US federal tax returns and most state tax returns include the years 2020 to the present.

We are currently under audit by state and local tax authorities in the US as well as tax authorities in certain non-US jurisdictions. It is likely that the examination phase of some of these state, local, and non-US audits will conclude in 2026. It is not possible to estimate the effect current audits may have on previously recorded unrecognized tax benefits.

Approximately 85% of our cash, cash equivalents, and investments balance as of June 30, 2026 was held by our operations outside of the US, an increase from 81% as of December 31, 2025. We generally consider the accumulated undistributed earnings of most of our foreign subsidiaries to be indefinitely reinvested, and it is not practicable to determine the amount of the unrecognized deferred tax liability related to these earnings. During the second quarter of 2026, we reassessed our assertion on approximately $84.0 million of accumulated undistributed earnings of certain of our foreign subsidiaries. We anticipate a distribution of these earnings to the US later in 2026 or early 2027. We have recorded a deferred tax liability of $1.0 million on these earnings, mostly for non-US withholding taxes, which will be due at the time of future remittance. For the remaining foreign subsidiaries, the amount of earnings that we consider indefinitely reinvested is based on our estimates and assumptions. This amount is subject to change in the normal course of business as we evaluate operational cash flows, working capital needs, regulatory requirements, investment needs, and among other factors. Accordingly, we may regularly update our earnings and profits analysis to reflect any of these developments.

Certain of our non-US operations have incurred net operating losses (NOLs), which may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-US operations record a loss, we do not recognize a corresponding tax benefit, which increases our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in that period.

We record accrued liabilities for litigation, regulatory, and other business matters when those matters represent loss contingencies that are both probable and estimable. In these cases, there may be an exposure to loss in excess of any amounts accrued. Unless a loss contingency is both probable and estimable, we do not establish an accrued liability. As litigation, regulatory, or other business matters develop, we evaluate on an ongoing basis whether such matters present a loss contingency that is probable and estimable.

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Data Audits and Reviews

In our global data business, we include in our products, or directly redistribute to our customers, data and information licensed from third-party vendors. Our compliance with the terms of these licenses is reviewed internally and is also subject to audit by the third-party vendors. At any given time, we may be undergoing several such internal reviews and third-party vendor audits, and the results and findings may indicate that we may be required to make a payment for prior data usage. Due to a lack of available information and data, as well as potential variations of any audit or internal review findings, we generally are not able to reasonably estimate a possible loss, or range of losses, for these matters. In situations where more information or specific areas subject to audit are available, we may be able to estimate a potential range of losses. While we cannot predict the outcome of these processes, we do not anticipate they will have a material adverse effect on our business, operating results, or financial position.

Ratings and Regulatory Matters

Our ratings and related research activities, including credit ratings, environmental, social, and governance ratings, managed investment, and equity ratings, are or may in the future become subject to regulation or increased scrutiny from executive, legislative, regulatory, and private parties. As a result, those activities may be subject to governmental, regulatory, and legislative investigations, regulatory examinations in the ordinary course of business, subpoenas, and other forms of legal process, which may lead to claims and litigation that are based on these ratings and related research activities. Our regulated businesses are generally subject to periodic reviews, inspections, examinations, and investigations by regulators in the jurisdictions in which they operate, any of which may result in claims, legal proceedings, assessments, fines, penalties, disgorgement, or restrictions on business activities. While it is difficult to predict the outcome of any particular investigation or proceeding, we do not believe the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.

Other Matters

We are involved from time to time in commercial disputes and legal proceedings that arise in the normal course of our business. While it is difficult to predict the outcome of any particular dispute or proceeding, we do not believe the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.

 

On October 29, 2025, the board of directors approved a three-year share repurchase program that authorizes the company to repurchase up to $1.0 billion in shares of the company's outstanding common stock, effective October 31, 2025 and set to expire on October 30, 2028 (the Share Repurchase Program). Under this authorization, we may repurchase shares from time to time at prevailing market prices on the open market or in private transactions in amounts that we deem appropriate.

For the three months ended June 30, 2026, we repurchased a total of 567,844 shares for $100.0 million. For the six months ended June 30, 2026, we repurchased a total of 2,291,256 shares for $400.0 million. As of June 30, 2026, we have repurchased a total of 3,694,105 shares for $700.0 million under the Share Repurchase Program, leaving $300.0 million available for future repurchases.

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