MOODYS CORP /DE/ (MCO)

CIK: 0001059556. SIC: 7320 Services-Consumer Credit Reporting, Collection Agencies. Latest 10-K as of: 2026-02-18.

SIC breadcrumb: Services > Business Services > SIC 7320 Services-Consumer Credit Reporting, Collection Agencies

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1059556. Latest filing source: 0001628280-26-009136.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001059556.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-18. Report date: 2025-12-31.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion and analysis of financial condition and results of operations should be read in conjunction with the Moody’s Corporation consolidated financial statements and notes thereto included elsewhere in this annual report on Form 10-K.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains Forward-Looking Statements. See “Forward-Looking Statements” commencing on page 64 and Item 1A. “Risk Factors” commencing on page 20 for a discussion of uncertainties, risks and other factors associated with these statements.

The Company

Moody’s is a global integrated risk assessment firm that empowers organizations to anticipate, adapt and thrive in a new era of exponential risk. Moody’s reports in two segments: MA and MIS.

MA is a global provider of: i) research and insights; ii) data and information; and iii) decision solutions, which help companies make better and faster decisions. MA leverages its proprietary data and analytics and deep industry knowledge across multiple risks such as credit, market, financial crime, supply chain, catastrophe and climate to deliver integrated risk assessment solutions that enable business leaders to identify, measure and manage the implications of interrelated risks and opportunities.

MIS publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities.

Critical Accounting Estimates

Moody’s discussion and analysis of its financial condition and results of operations are based on the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires Moody’s to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the dates of the financial statements and revenue and expenses during the reporting periods. These estimates are based on historical experience and on other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, Moody’s evaluates its critical accounting estimates. Actual results may differ from these estimates under different assumptions or conditions. The following accounting estimates are considered critical because they are particularly dependent on management’s judgment about matters that are uncertain at the time the accounting estimates are made and changes to those estimates could have a material impact on the Company’s consolidated results of operations or financial condition.

Goodwill and Other Acquired Intangible Assets

At July 31st of each year, Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment (i.e., MA and MIS), or one level below an operating segment (i.e., a component of an operating segment).

The Company evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made based on the qualitative factors that an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be quantitatively determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired, and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company will record a goodwill impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. The Company evaluates its reporting units on an annual basis, or more frequently if there are changes in the reporting structure of the Company due to acquisitions, realignments or if there are indicators of potential impairment. For the reporting units where the Company is consistently able to conclude that no impairment exists using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years.

The Company last performed quantitative assessments on all reporting units at July 31, 2024. The quantitative assessments performed at July 31, 2024 resulted in fair values that significantly exceeded carrying values for all reporting units.

Determining the fair value of a reporting unit involves the use of significant estimates and assumptions, which are more fully described below. In addition, the Company also makes certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of its reporting units.

Other assets and liabilities, including applicable corporate assets, are allocated to the extent they are related to the operation of respective reporting units.

Prior to 2025, MA's reporting unit structure consisted of two reporting units comprised of businesses that offer: i) data and data-driven analytical solutions; and ii) risk-management software, workflow and CRE solutions. During the first quarter of 2025, MA reorganized its management and reporting structure, which affected the composition of the reporting units within the MA reportable segment. As a result, MA's reporting unit structure now consists of one reporting unit, which is consistent with the segment's current management structure and operating model. This reorganization did not result in a change to the Company's reportable segments. The Company performed assessments of the reporting units impacted by the reorganization immediately before and

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after the reorganization became effective and determined that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount.

Subsequent to the aforementioned reorganization of the MA reporting unit structure, the Company now has three reporting units: two within the Company’s ratings business (one for the ICRA business and one that encompasses all of Moody’s other ratings operations) and one reporting unit within MA.

At July 31, 2025, the Company performed qualitative assessments for each reporting unit. These qualitative assessments resulted in the Company determining that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount.

Methodologies and significant estimates utilized in determining the fair value of reporting units:

The following is a discussion regarding the Company’s methodology for determining the fair value of its reporting units, excluding ICRA, as of July 31, 2024 (the date of the last quantitative assessment). As ICRA is a publicly traded company in India, the Company was able to observe its fair value based on its market capitalization.

The fair value of each reporting unit, excluding ICRA, was estimated using a discounted cash flow methodology and comparable public company and precedent transaction multiples. The discounted cash flow analysis requires significant estimates, including projections of future operating results and cash flows of each reporting unit that are based on internal budgets and strategic plans, expected long-term growth rates, terminal values, weighted average cost of capital and the effects of external factors and market conditions. Changes in these estimates and assumptions could materially affect the estimated fair value of each reporting unit that could result in an impairment charge to reduce the carrying value of goodwill, which could be material to the Company’s financial position and results of operations. Moody’s allocates newly acquired goodwill to reporting units based on the reporting unit expected to benefit from the acquisition.

The sensitivity analyses on the future cash flows and WACC assumptions are described below. These key assumptions utilized in the discounted cash flow valuation methodology require significant management judgment:

–Future cash flow assumptions - The projections for future cash flows utilized in the models are derived from historical experience and assumptions regarding future growth and profitability of each reporting unit. These projections are consistent with the Company’s operating budget and strategic plan. Cash flows for the five years subsequent to the date of the quantitative goodwill impairment test were utilized in the determination of the fair value of each reporting unit. Beyond five years, a terminal value was determined using a perpetuity growth rate based on inflation and real GDP growth rates. A sensitivity analysis of the revenue growth rates was performed on all reporting units. For each reporting unit analyzed, a 10% reduction in the revenue growth rates used would still result in fair values that significantly exceeded carrying values.

–WACC - The WACC is the rate used to discount each reporting unit’s estimated future cash flows. The WACC is calculated based on the proportionate weighting of the cost of debt and equity. The cost of equity is based on a risk-free interest rate and an equity risk factor, which is derived from public companies similar to the reporting unit and which captures the perceived risks and uncertainties associated with the reporting unit’s cash flows. The cost of debt component is calculated as the weighted average cost associated with all of the Company’s outstanding borrowings as of the date of the impairment test and was immaterial to the computation of the WACC. The cost of debt and equity is weighted based on the debt to market capitalization ratio of publicly traded companies with similarities to the reporting unit being tested. The WACC for all reporting units ranged from 10.0% to 10.5% as of July 31, 2024. Differences in the WACC used between reporting units is primarily due to distinct risks and uncertainties regarding the cash flows of the different reporting units. A sensitivity analysis of the WACC was performed on all reporting units as of July 31, 2024 for each reporting unit. For all reporting units, an increase in the WACC of one percentage point would still result in fair values that significantly exceeded carrying values.

Impairment of Long-lived assets

Long-lived assets, which consist primarily of amortizable intangible assets, internal-use computer software, lease ROU Assets and property and equipment, are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Under the first step of the recoverability assessment, Moody's compares the estimated undiscounted future cash flows attributable to the asset or asset group to its carrying value. If the undiscounted future cash flows are greater than the carrying value, no further assessment is required. If the undiscounted future cash flows are less than the carrying value, Moody's proceeds with step two of the assessment. Under step two of this assessment, Moody's is required to determine the fair value of the asset or asset group and recognize an impairment loss if the carrying amount exceeds its fair value. In performing this assessment, Moody's must include assumptions that market participants would use in their estimates of fair value, including the estimated future cash flows and discount rate. Moody's must apply judgment in developing estimated future cash flows and in the determination of market participant assumptions.

Income Taxes

The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The Company’s tax assets and liabilities are affected by the amounts charged for services provided and expenses incurred as well as other tax matters such as intercompany transactions. The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes, and deferred income taxes reflect the effect of

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temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes.

The Company is subject to tax audits in the U.S. and various foreign jurisdictions. The Company regularly assesses the likely outcomes of such audits in order to determine the appropriateness of liabilities for UTPs. The Company classifies interest related to income taxes as a component of interest expense in the Company’s consolidated statements of operations and associated penalties, if any, as part of other non-operating expenses.

For UTPs, ASC Topic 740 requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. As the determination of liabilities related to UTPs and associated interest and penalties requires significant estimates to be made by the Company, there can be no assurance that the Company will accurately predict the outcomes of these audits, and thus the eventual outcomes could have a material impact on the Company’s operating results or financial condition.

Contingencies

Accounting for contingencies, including those matters described in Note 19 to the consolidated financial statements, is highly subjective and requires the use of judgments and estimates in assessing their magnitude and likely outcome. In many cases, the outcomes of such matters will be determined by third parties, including governmental or judicial bodies. The provisions made in the consolidated financial statements, as well as the related disclosures, represent management’s best estimates of the current status of such matters and their potential outcome based on a review of the facts and in consultation with outside legal counsel where deemed appropriate. The Company regularly reviews contingencies and as new information becomes available may, in the future, adjust its associated liabilities.

For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates.

Pension and Other Retirement Benefits

The expenses, assets and liabilities that Moody’s reports for its Retirement Plans are dependent on many assumptions concerning the outcome of future events and circumstances. These significant assumptions include the following:

–future compensation increases based on the Company’s long-term actual experience and future outlook;

–long-term expected return on pension plan assets based on historical portfolio results and the expected future average annual return for each major asset class within the plan’s portfolio (which is principally comprised of equity and fixed-income investments); and

–discount rates based on current yields on high-grade corporate long-term bonds.

The discount rates used to measure the present value of the Company’s benefit obligation for its Retirement Plans as of December 31, 2025 were derived using a cash flow matching method whereby the Company compares each plan’s projected payment obligations by year with the corresponding yield on the FTSE pension discount curve. The cash flows by plan are then discounted back to present value to determine the discount rate applicable to each plan.

Moody’s major assumptions vary by plan and assumptions used are set forth in Note 13 to the consolidated financial statements. In determining these assumptions, the Company consults with third-party actuaries and other advisors as deemed appropriate. While the Company believes that the assumptions used in its calculations are reasonable, differences in actual experience or changes in assumptions could have a significant effect on the expenses, assets and liabilities related to the Company’s Retirement Plans.

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When actual plan experience differs from the assumptions used, actuarial gains or losses arise. Excluding differences between the expected long-term rate of return assumption and actual returns on plan assets, the Company amortizes, as a component of annual pension expense, total outstanding actuarial gains or losses over the estimated average future working lifetime of active plan participants to the extent that the gain/loss exceeds 10% of the greater of the beginning-of-year projected benefit obligation or the market-related value of plan assets. For Moody’s Retirement Plans, the total actuarial losses as of December 31, 2025 that have not been recognized in annual expense are $41 million, and Moody’s expects the net periodic expense related to the amortization of net actuarial (losses)/gains will be immaterial in 2026.

For Moody’s funded U.S. pension plan, the differences between the expected long-term rate of return assumption and actual returns could also affect the net periodic pension expense. As permitted under ASC Topic 715, the Company amortizes the impact of asset returns over a five-year period for purposes of calculating the market-related value of assets that is used in determining the expected return on assets’ component of annual expense and in calculating the total unrecognized gain or loss subject to amortization. As of December 31, 2025, the Company has an unrecognized loss of $27 million, of which $20 million will be recognized in the market-related value of assets that is used to calculate the expected return on assets component of 2026 expense.

The table below shows the estimated effect that a one percentage-point decrease in each of these assumptions will have on Moody’s 2026 income before provision for income taxes. These effects have been calculated using the Company’s current projections of 2026 expenses, assets and liabilities related to Moody’s Retirement Plans, which could change as updated data becomes available.

(dollars in millions)

Assumptions Used for 2026

Estimated Impact on 2026 Income before Provision for Income Taxes (Decrease) Increase

Weighted Average Discount Rates (1)

5.24%/5.30%

$

(6)

Weighted Average Assumed Compensation Growth Rate

3.10%

$

1 

Assumed Long-Term Rate of Return on Pension Assets

6.95%

$

(5)

(1)Weighted average discount rates of 5.24% and 5.30% for pension plans and Other Retirement Plans, respectively.

Based on current projections, the Company estimates that net periodic expense related to Retirement Plans will be immaterial in 2026.

Investments in Non-consolidated Affiliates

Equity method investments are reviewed for indicators of other-than-temporary impairment on a quarterly basis. These investments are written down to fair value if there is evidence of a loss in value that is other-than-temporary.

For equity investments without a readily determinable fair value for which the Company does not have significant influence, Moody's generally elects to measure these investments at cost, less impairment, adjusted for subsequent observable price changes as of the date that an observable transaction takes place.

The Company performs an assessment on a quarterly basis to determine if there are indicators of impairment for its investments in non-consolidated affiliates. If there are indicators of impairment, the Company estimates the investment’s fair value and records an impairment if the carrying value of the investment exceeds its fair value.

In situations where estimation of fair value is required for investments in non-consolidated affiliates, the Company considers various factors, including: recent observable investee equity transactions, comparable public company/precedent transaction multiples and discounted cash flow models. The estimation of fair value for these investments may involve significant judgment.

Other Estimates

In addition to the critical accounting estimates described above, there are other accounting estimates within Moody’s consolidated financial statements. Management believes the current assumptions and other considerations used to estimate amounts reflected in Moody’s consolidated financial statements are appropriate. However, if actual experience differs from the assumptions and other considerations used in estimating amounts reflected in Moody’s consolidated financial statements, the resulting changes could have a material adverse effect on Moody’s consolidated results of operations or financial condition.

See Note 2 to the consolidated financial statements for further information on significant accounting policies that impact Moody’s.

Reportable Segments

The Company is organized into two reportable segments at December 31, 2025: MA and MIS, which are more fully described in the section entitled “The Company” above and in Note 20 to the consolidated financial statements.

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Results of Operations

This section of this Form 10-K generally discusses the year ended December 31, 2025 and 2024 financial results and year-to-year comparisons between these years. Discussions related to the year ended December 31, 2024 financial results and year-to-year comparisons between the years ended December 31, 2024 and 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

The following footnotes are applicable throughout the discussion of the Company's results of operations:

(1)Refer to the section entitled "Non-GAAP Financial Measures" of this MD&A for the definition and methodology that the Company utilizes to calculate this metric.

(2)Refer to the section entitled "Key Performance Metrics" of this MD&A for the definition and methodology that the Company utilizes to calculate this metric.

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Year ended December 31, 2025 compared with year ended December 31, 2024

Executive Summary

The following table provides an executive summary of key operating results for the year ended December 31, 2025. Following this executive summary is a more detailed discussion of the Company’s operating results as well as a discussion of the operating results of the Company’s reportable segments.

Year Ended December 31,

Financial measure:

2025

2024

% Change Favorable (Unfavorable)

Insight and Key Drivers of Change Compared to Prior Year

Moody's total revenue

$

7,718 

$

7,088 

9

%

— reflects strong revenue growth in both segments

MA external revenue

$

3,599 

$

3,295 

9

%

— sustained demand for insurance and KYC offerings; and

— continued demand for credit research and ratings data feed product offerings

— Organic constant currency revenue(1) growth was 7%, and ARR(2) grew 8%

MIS external revenue

$

4,119 

$

3,793 

9

%

— strong investor demand and tight credit spreads supported revenue growth in all ratings LOBs

Total operating and SG&A expenses

$

3,776 

$

3,680 

(3

%)

— higher salaries and benefits reflecting an increase in headcount, including from acquisitions, and annual salary increases; and

— increases in technology infrastructure costs within the MA segment attributable to operational growth; partially offset by

— a decrease in incentive compensation which aligns with financial and operational performance relative to targets

Depreciation and amortization

$

480 

$

431 

(11

%)

— higher amortization of internally developed software, primarily related to the development of MA cloud-based solutions; and

— amortization of recently acquired intangible assets

Restructuring

$

108 

$

59 

(83

%)

— relates to the Company's restructuring programs, more fully discussed in Note 9 to the consolidated financial statements

Charges related to asset abandonment

$

3 

$

43 

93

%

— costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which are more fully discussed in Note 22 to the consolidated financial statements

Total non-operating (expense) income, net

$

(221)

$

(176)

(26

%)

— a net expense reflecting the release of an indemnification asset and tax-related interest accruals associated with the resolution of tax exposures assumed in a prior-year M&A transaction. These amounts offset the tax benefit described in the ETR section below, and accordingly, have no impact on diluted or Adjusted Diluted EPS(1); partially offset by

— a gain on the divestiture of the MA Learning Solutions business as more fully discussed in Note 22 to the consolidated financial statements.

Operating Margin

43.4 

%

40.6 

%

280BPS

— Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth coupled with disciplined cost management

Adjusted Operating Margin(1)

51.1 

%

48.1 

%

300BPS

ETR

21.3 

%

23.7 

%

240BPS

— Primarily reflects tax benefits recognized in 2025 pursuant to the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction, as more fully discussed in Note 15 to the consolidated financial statements. These amounts offset the net expense described in the non-operating (expense) income, net section above, and accordingly, have no impact on diluted or Adjusted Diluted EPS(1)

Diluted EPS

$

13.67 

$

11.26 

21

%

— increase reflects the aforementioned revenue growth and margin expansion

Adjusted Diluted EPS(1)

$

14.94 

$

12.47 

20

%

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Moody’s Corporation

Year Ended December 31,

% Change Favorable

(Unfavorable)

2025

2024

Revenue:

United States

$

4,171 

$

3,836 

9

%

Non-U.S.:

EMEA

2,376 

2,174 

9

%

Asia-Pacific

699 

629 

11

%

Americas

472 

449 

5

%

Total Non-U.S.

3,547 

3,252 

9

%

Total

7,718 

7,088 

9

%

Expenses:

Operating

1,973 

1,945 

(1

%)

SG&A

1,803 

1,735 

(4

%)

Depreciation and amortization

480 

431 

(11

%)

Restructuring

108 

59 

(83

%)

Charges related to asset abandonment

3 

43 

93

%

Total

4,367 

4,213 

(4

%)

Operating income

3,351 

2,875 

17

%

Adjusted Operating Income (1)

3,942 

3,408 

16

%

Interest expense, net

(213)

(237)

10

%

Other non-operating income, net

(31)

61 

(151

%)

Gain on divestiture of business

23 

— 

NM

Non-operating (expense) income, net

(221)

(176)

(26

%)

Net income attributable to Moody’s

$

2,459 

$

2,058 

19

%

Diluted weighted average shares outstanding

179.9 

182.7 

2

%

Diluted EPS attributable to Moody’s common shareholders

$

13.67 

$

11.26 

21

%

Adjusted Diluted EPS (1)

$

14.94 

$

12.47 

20

%

Operating margin

43.4 

%

40.6 

%

Adjusted Operating Margin (1)

51.1 

%

48.1 

%

ETR

21.3 

%

23.7 

%

GLOBAL REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

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Global Revenue ⇑ $630 million

U.S. Revenue ⇑ $335 million

Non-U.S. Revenue ⇑ $295 million

Growth in global revenue reflected increases in both MA and MIS, both in the U.S. and internationally. Refer to the section entitled “Segment Results” of this MD&A for a more fulsome discussion of the Company’s segment revenue.

Operating Expense ⇑ $28 million

Compensation expenses of $1,467 million decreased $2 million, with the most notable drivers reflecting:

Non-compensation expenses of $506 million increased $30 million, with the most notable drivers reflecting:

— a decrease in incentive compensation, which aligns with actual financial and operational performance relative to targets; mostly offset by

— costs associated with recent acquisitions; and

— increases in increases in technology infrastructure costs correlated with operating growth

— growth in salaries and benefits attributable to hiring and salary increases to support continued growth in the business as well as recent acquisitions

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SG&A Expense ⇑ $68 million

Compensation expenses of $1,107 million increased $37 million, reflecting:

Non-compensation expenses of $696 million increased $31 million, with the most notable driver reflecting:

— growth in salaries and benefits attributable to hiring and salary increases to support continued business growth, coupled with costs from recent acquisitions; partially offset by

— costs to support business growth, including from recent acquisitions

— a decrease in incentive compensation, which aligns with actual financial and operational performance relative to targets

Depreciation and amortization

The increase is driven by the amortization of internally developed software, which is primarily related to the development of MA cloud-based solutions as well as the amortization of recently acquired intangible assets.

Restructuring

The amounts reflect charges and adjustments related to the Company's restructuring programs as more fully discussed in Note 9 to the consolidated financial statements.

Charges related to asset abandonment

Reflects costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which are more fully discussed in Note 22 to the consolidated financial statements.

Operating margin 43.4%, up 280 BPS

Adjusted Operating Margin 51.1%, up 300 BPS

Operating margin and Adjusted Operating Margin(1) expansion reflects the 9% increase in revenue, partially offset by growth of 3% in operating and SG&A expenses.

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Interest Expense ⇓ $24 million

Other non-operating income ⇓ $92 million

The decrease in expense is primarily due to:

The most notable driver of the decrease in income is:

— lower interest expense on borrowings of $49 million, which is primarily attributable to favorable impacts from fixed-to-floating interest rate swaps reflecting a lower interest rate environment compared to the prior year; and

— the release of an indemnification asset of $79 million associated with the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction(3), as more fully discussed in Note 15 to the consolidated financial statements.

— a $16 million reduction in tax-related interest expense primarily reflecting the lapse in the statute of limitations related to tax exposures assumed in a prior-year M&A transaction(3), as more fully discussed in Note 15 to the consolidated financial statements; partially offset by

— lower interest income of $37 million reflecting lower cash and short-term investment balances and lower interest rates

(3) These amounts offset the tax benefit described in the ETR section below, and accordingly, have no impact on diluted or Adjusted Diluted EPS(1)

Gain on divestiture of business ⇑ 23 million

Reflects the gain on divestiture of the MA Learning Solutions business.

ETR ⇓ 240 BPS

Decrease primarily reflects tax benefits recognized in 2025 pursuant to the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction(3) as more fully discussed in Note 15 to the consolidated financial statements. These tax benefits had no impact on Diluted EPS/Adjusted Diluted EPS(1) as they were offset by the net impact of the reversal of indemnification assets and tax-related interest accruals as further described above.

Diluted EPS ⇑ $2.41

Adjusted Diluted EPS ⇑ $2.47

Both diluted EPS and Adjusted Diluted EPS(1) growth is mostly attributable to the aforementioned growth in operating income/adjusted operating income(2).

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Segment Results

Moody’s Analytics

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

Year Ended December 31,

% Change Favorable

(Unfavorable)

2025

2024

Revenue:

Decision Solutions (DS)

$

1,692 

$

1,516 

12

%

Research and Insights (R&I)

995 

926 

7

%

Data and Information (D&I)

912 

853 

7

%

Total external revenue

3,599 

3,295 

9

%

Intersegment revenue

12 

13 

(8

%)

Total MA Revenue

3,611 

3,308 

9

%

Expenses:

Operating and SG&A (external):

Compensation expense

1,438 

1,370 

(5

%)

Non-compensation expense

779 

731 

(7

%)

Total Operating and SG&A (external)

2,217 

2,101 

(6

%)

Operating and SG&A (intersegment)

198 

193 

(3

%)

Total operating and SG&A expense

2,415 

2,294 

(5

%)

Adjusted Operating Income

$

1,196 

$

1,014 

18

%

Adjusted Operating Margin

33.1 

%

30.7 

%

Depreciation and amortization

393 

353 

(11

%)

Restructuring

77 

42 

(83

%)

Charges related to asset abandonment

3 

43 

93

%

MOODY'S ANALYTICS REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

MA: Global Revenue ⇑ $304 million

U.S. Revenue ⇑ $158 million

Non-U.S. Revenue ⇑ $146 million

The 9% increase in global MA revenue reflects growth both in the U.S. (11%) and internationally (8%).

–Organic constant currency revenue(1) growth was 7%.

–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 11% and 8%, respectively.

–ARR(2) increased 8%.

These increases are reflective of growth across all LOBs, as discussed in further detail below.

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DECISION SOLUTIONS REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

DS: Global Revenue ⇑ $176 million

U.S. Revenue ⇑ $104 million

Non-U.S. Revenue ⇑ $72 million

Global DS revenue for the years ended December 31, 2025 and 2024 was comprised as follows:

Global DS revenue increased 12% driven by growth in both the U.S. (18%) and internationally (8%). DS recurring revenue grew 15%. Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for DS was 8% and 11%, respectively, and ARR(2) grew 10%.

The most notable drivers of the growth in Decision Solutions are as follows:

–Insurance revenue grew 15%

–recurring revenue growth of 16% in Insurance was attributable to:

–continued demand resulting in new sales for subscription-based revenue for catastrophe modeling tools; and

–revenue from Praedicat and CAPE Analytics, which the Company acquired in the third quarter of 2024 and first quarter of 2025, respectively

–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth was 8% and 9%, respectively

–ARR(2) grew 7%, reflecting the aforementioned continued demand for subscription-based catastrophe modeling tools

–KYC revenue grew 19%

–recurring revenue growth of 21% in KYC reflects strong demand and customer retention for KYC and compliance solutions, driven by increased customer and supplier risk data usage

–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for KYC was 17% and 18%, respectively

–ARR(2) grew 15%, reflecting the aforementioned strong demand for KYC solutions, however trailed organic constant currency recurring revenue(1) growth mainly due to certain isolated customer attrition events in 2025

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–Banking revenue grew 3%

–recurring revenue growth of 9% within Banking reflected:

–expansion of existing customer relationships into cloud-hosted subscription-based banking offerings, which enable customers' lending, risk management and finance workflows; and

–revenue from Numerated, which the Company acquired in the fourth quarter of 2024;

partially offset by:

–a decline in transaction revenue of 18%, reflecting MA's continued strategic shift to cloud-hosted subscription-based solutions

–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for Banking was 2% and 6%, respectively

–ARR(2) grew 8% reflecting the aforementioned expansion of existing customer relationships into cloud-hosted subscription-based offerings.

RESEARCH AND INSIGHTS REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

R&I: Global Revenue ⇑ $69 million

U.S. Revenue ⇑ $33 million

Non-U.S. Revenue ⇑ $36 million

Global R&I revenue increased 7% compared to 2024 and reflects growth in both the U.S. (6%) and internationally (9%).

The revenue increase was attributable to sales growth for credit research product offerings, which contributed to ARR(2) growth of 8%.

DATA AND INFORMATION REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

D&I: Global Revenue ⇑ $59 million

U.S. Revenue ⇑ $21 million

Non-U.S. Revenue ⇑ $38 million

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Global D&I revenue increased 7% compared to 2024 and reflects growth in both the U.S. (7%) and internationally (7%). Organic constant currency revenue(1) growth for D&I was 5%.

This growth was mainly driven by continued strong demand for ratings data feeds and company data applications, which contributed to ARR(2) growth of 7% for D&I.

MA: Operating and SG&A Expense ⇑ $116 million

Compensation expenses of $1,438 million increased $68 million, reflecting:

Non-compensation expenses of $779 million increased $48 million, reflecting:

— growth in salaries and benefits driven by recent acquisitions and annual salary increases

— increases in technology infrastructure costs correlated with operating growth; and

— costs associated with recent acquisitions

MA: Adjusted Operating Margin 33.1% ⇑ 240BPS

Adjusted Operating Margin expansion reflects the aforementioned 9% increase in global MA revenue outpacing growth of 6% in operating and SG&A expenses, which was supported by operational efficiency/disciplined cost management and cost savings from the Strategic and Operational Efficiency Restructuring Program.

Depreciation and amortization

The increase in depreciation and amortization expense primarily reflects higher amortization of internally developed software relating to the development of cloud-based solutions as well as the amortization of recently acquired intangible assets.

Restructuring

The restructuring charges relate to the Company's restructuring programs as more fully discussed in Note 9 to the consolidated financial statements.

Charges related to asset abandonment

Reflects costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which are more fully discussed in Note 22 to the consolidated financial statements.

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Moody’s Investors Service

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

Year Ended December 31,

% Change Favorable

(Unfavorable)

2025

2024

Revenue:

Corporate finance (CFG)

$

2,132 

$

1,950 

9

%

Structured finance (SFG)

558 

518 

8

%

Financial institutions (FIG)

759 

727 

4

%

Public, project and infrastructure finance (PPIF)

635 

564 

13

%

Total ratings revenue

4,084 

3,759 

9

%

MIS Other

35 

34 

3

%

Total external revenue

4,119 

3,793 

9

%

Intersegment royalty

198 

193 

3

%

Total

4,317 

3,986 

8

%

Expenses:

Operating and SG&A (external):

Compensation expense

1,136 

1,169 

3

%

Non-compensation expense

423 

410 

(3

%)

Total Operating and SG&A (external)

1,559 

1,579 

1

%

Operating and SG&A (intersegment)

12 

13 

8

%

Total operating and SG&A expense

1,571 

1,592 

1

%

Adjusted Operating Income

$

2,746 

$

2,394 

15

%

Adjusted Operating Margin

63.6 

%

60.1 

%

Depreciation and amortization

87 

78 

(12

%)

Restructuring

31 

17 

(82

%)

The following chart presents changes in rated issuance volumes compared to 2024. To the extent that changes in rated issuance volumes had a material impact to MIS's revenue compared to the prior year, those impacts are discussed below.

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MOODY'S INVESTORS SERVICE REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

MIS: Global Revenue ⇑ $326 million

U.S. Revenue ⇑ $177 million

Non-U.S. Revenue ⇑ $149 million

The increase in global MIS revenue reflects growth across all ratings LOBs.

CFG REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

CFG: Global Revenue ⇑ $182 million

U.S. Revenue ⇑ $94 million

Non-U.S. Revenue ⇑ $88 million

Global CFG revenue for the years ended December 31, 2025 and 2024 was comprised as follows:

* Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue.

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The increase in CFG revenue of 9% reflects increases in both the U.S (7%) and internationally (14%).

Transaction revenue increased $144 million compared to the prior year, which primarily reflected:

–higher issuance activity for investment-grade bonds, which reflected continued tight credit spreads and investor demand for higher quality credits, and includes the impact of several jumbo transactions in the technology sector; and

–higher issuance activity for high-yield bonds as issuers took advantage of favorable conditions, including tight spreads and lower interest rates, primarily to refinance debt.

Recurring revenue increased $38 million, primarily reflecting the impact of annual price increases and higher monitored credits.

SFG REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

SFG: Global Revenue ⇑ $40 million

U.S. Revenue ⇑ $28 million

Non-U.S. Revenue ⇑ $12 million

Global SFG revenue for the years ended December 31, 2025 and 2024 was comprised as follows:

The increase in SFG revenue of 8% reflects growth in the U.S. (8%) and internationally (8%).

The increase in revenue reflected growth across all asset classes, supported by tight credit spreads and strong investor demand.

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FIG REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

FIG: Global Revenue ⇑ $32 million

U.S. Revenue ⇓ $2 million

Non-U.S. Revenue ⇑ $34 million

Global FIG revenue for the years ended December 31, 2025 and 2024 was comprised as follows:

** Other includes: monitoring, commercial paper, medium term notes, and ICRA revenue.

The increase in FIG revenue of 4% reflects growth internationally (10%), partially offset by a decline in the U.S. (1%).

Revenue increased $32 million compared to the same period in the prior year, primarily due to:

–strong issuance volumes from infrequent issuers in the banking sector;

partially offset by:

–lower volumes from infrequent issuers in the insurance sector, compared to strong activity in the prior year.

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PPIF REVENUE

2025---------------------------------------------------------------------------------------2024

________________________________________________________________________________________________________

PPIF: Global Revenue ⇑ $71 million

U.S. Revenue ⇑ $57 million

Non-U.S. Revenue ⇑ $14 million

Global PPIF revenue for the years ended December 31, 2025 and 2024 was comprised as follows:

The 13% increase in PPIF revenue reflects increases in both the U.S. (16%) and internationally (7%), reflecting:

–higher issuance in U.S. Public Finance, particularly within the state, regional, and healthcare sectors; and

–higher investment‑grade issuance within U.S. Infrastructure Finance, most notably from the utilities sector, coupled with a favorable issuance mix

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MIS: Operating and SG&A Expense ⇓ $20 million

Compensation expenses of $1,136 million decreased $33 million, reflecting:

Non-compensation expenses of $423 million increased $13 million, primarily reflecting:

— a decrease in incentive compensation aligned with actual financial and operating performance relative to targets; partially offset by:

— an increase in costs to support operating growth

— growth in salaries and benefits reflecting higher headcount and annual salary increases

MIS: Adjusted Operating Margin of 63.6% ⇑ 350BPS

The MIS Adjusted Operating Margin expansion primarily reflected the aforementioned 9% increase in revenue, supported by the operating leverage of the business, benefits from technology investments and a disciplined approach to expense management.

Restructuring Charges

The restructuring charges relate to the Company's restructuring programs as more fully discussed in Note 9 to the consolidated financial statements.

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Market Risk

FX risk:

Moody’s maintains a presence in more than 40 countries. In 2025, approximately 39% of the Company’s revenue and approximately 38% of the Company's expenses were denominated in functional currencies other than the U.S. dollar, principally in the British pound and the euro. As such, the Company is exposed to market risk from changes in FX rates. As of December 31, 2025, approximately 52% of Moody’s assets were located outside the U.S., making the Company susceptible to fluctuations in FX rates. The effects of translating assets and liabilities of non-U.S. operations with non-U.S. functional currencies to the U.S. dollar are charged or credited to OCI.

The effects of revaluing assets and liabilities that are denominated in currencies other than a subsidiary’s functional currency are charged to other non-operating income, net in the Company’s consolidated statements of operations. Accordingly, the Company enters into foreign exchange forward contracts to partially mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. The following table shows the impact to the fair value of the forward contracts if currencies being purchased were to weaken by 10%:

Foreign Currency Forwards (1)

Impact on fair value of contract

Sell

Buy

U.S. dollar

British pound

$64 million unfavorable impact

U.S. dollar

Euro

$10 million unfavorable impact

U.S. dollar

Singapore dollar

$4 million unfavorable impact

U.S. dollar

Canadian dollar

$4 million unfavorable impact

U.S. dollar

Japanese yen

$2 million unfavorable impact

U.S. dollar

Indian rupee

$2 million unfavorable impact

Euro

U.S. dollar

$2 million unfavorable impact

$88 million unfavorable impact

(1)Refer to Note 6 to the consolidated financial statements in Item 8 of this Form 10-K for further detail on the forward contracts.

The change in fair value of the foreign exchange forward contracts would be offset by FX revaluation gains or losses on underlying assets and liabilities denominated in currencies other than a subsidiary’s functional currency.

Derivatives and non-derivatives designated as net investment hedges:

The Company designates derivative instruments and foreign currency-denominated debt as hedges of foreign currency risk of net investments in certain foreign subsidiaries (net investment hedges) under ASC Topic 815, Derivatives and Hedging.

Cross-currency swaps

As of December 31, 2025, the Company had cross-currency swaps designated as net investment hedges to mitigate FX exposure related to a portion of the Company's net investment in certain foreign subsidiaries against changes in exchange rates. The notional values and corresponding interest rates are disclosed in Note 6 to the consolidated financial statements located in Item 8 of this Form 10-K.

•If the euro were to strengthen 10% relative to the U.S. dollar, there would be an approximate $430 million unfavorable impact to the fair value of the cross-currency swaps recognized in OCI.

•If the Hong Kong dollar were to strengthen 10% relative to the U.S. dollar, there would be an approximate $50 million unfavorable impact to the fair value of the cross-currency swaps recognized in OCI.

•If the Singapore dollar were to strengthen 10% relative to the Hong Kong dollar, there would be an approximate $30 million unfavorable impact to the fair value of the cross-currency swaps recognized in OCI.

The aforementioned unfavorable impacts recognized within OCI would be offset by favorable currency translation gains on the Company’s hedged net investments in those foreign subsidiaries.

Euro-denominated debt

As of December 31, 2025, the Company has designated €500 million of the 2015 Senior Notes and €750 million of the 2019 Senior Notes as net investment hedges to mitigate FX exposure relating to euro denominated net investments in subsidiaries. If the euro were to strengthen 10% relative to the U.S. dollar, there would be an approximate $150 million unfavorable adjustment to OCI related to these net investment hedges. This adjustment would be offset by favorable currency translation adjustments on the Company’s euro net investment in subsidiaries.

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Interest rate and credit risk:

Interest rate swaps designated as a fair value hedge:

The Company’s interest rate risk management objectives are to reduce the funding cost and volatility to the Company and to alter the interest rate exposure to a desired risk profile. Moody’s uses interest rate swaps as deemed necessary to assist in accomplishing these objectives. The Company is exposed to interest rate risk on its various outstanding fixed-rate debt for which the fair value of the outstanding fixed rate debt fluctuates based on changes in interest rates. The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the SOFR. These swaps are adjusted to fair market value based on prevailing interest rates at the end of each reporting period and fluctuations are recorded as a reduction or addition to the carrying value of the borrowing, while net interest payments are recorded as interest expense/income in the Company’s consolidated statements of operations. A hypothetical change of 100 BPS in the SOFR-based swap rate would result in an approximate $130 million change to the fair value of the swaps, which would be offset by the change in fair value of the hedged item.

Additional information on these interest rate swaps is disclosed in Note 6 to the consolidated financial statements located in Item 8 of this Form 10-K.

Moody’s cash equivalents primarily consist of certificates of deposit within and outside the U.S. with maturities of three months or less when purchased. The Company manages its credit risk exposure by allocating its cash equivalents among various money market deposit accounts and certificates of deposit and by limiting the amount it can invest with any single issuer. Short-term investments primarily consist of certificates of deposit.

Liquidity and Capital Resources

Moody's remains committed to using its strong cash flow to create value for shareholders by both investing in the Company's employees and growing the business through targeted organic initiatives and inorganic acquisitions aligned with strategic priorities. Additional excess capital is returned to the Company’s shareholders via a combination of dividends and share repurchases.

Cash Flow

The following is a summary of the changes in the Company’s cash flows followed by a brief discussion of these changes:

Year Ended December 31,

$ Change

Favorable/ (unfavorable)

2025

2024

Net cash provided by operating activities

$

2,901 

$

2,838 

$

63 

Net cash provided by (used in) investing activities

$

2 

$

(1,056)

$

1,058 

Net cash used in financing activities

$

(3,063)

$

(1,446)

$

(1,617)

Free Cash Flow (1)

$

2,575 

$

2,521 

$

54 

(1)Free Cash Flow is a non-GAAP measure and is defined by the Company as net cash provided by operating activities minus cash paid for capital additions. Refer to the section entitled “Non-GAAP Financial Measures” of this MD&A for further information on this financial measure.

Net cash provided by operating activities

Net cash flows from operating activities increased by $63 million compared to the prior year, with the most notable drivers reflecting:

–growth in operating income of $476 million, partially offset by various changes in working capital;

partially offset by:

–$212 million in higher income tax payments in the current year; and

–approximately $100 million in higher annual incentive compensation payments in 2025 (based on full-year 2024 financial and operating results) compared to payments made in the prior year (based on full-year 2023 financial and operating results)

Net cash provided by (used in) investing activities

The $1,058 million increase in cash provided by investing activities compared to 2024 primarily reflects:

–a $463 million decrease in purchases of investments, primarily due to the purchase of certificates of deposit in the prior year; and

–a $555 million increase in sales and maturities of investments primarily due to the maturity of certificates of deposit in the first quarter of 2025.

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Net cash used in financing activities

The $1,617 million increase in cash used in financing activities was primarily attributed to:

–a $700 million repayment of notes payable in 2025;

–a $496 million issuance of notes in the third quarter of 2024; and

– higher cash paid for treasury share repurchases in 2025 of $315 million compared to the prior year.

Cash and cash equivalents and short-term investments

The Company’s aggregate cash and cash equivalents and short-term investments of $2.4 billion at December 31, 2025 included approximately $1.8 billion located outside of the U.S. Approximately 38% of the Company’s aggregate cash and cash equivalents and short-term investments is denominated in EUR and GBP. The Company manages both its U.S. and non-U.S. cash flow to maintain sufficient liquidity in all regions to effectively meet its operating needs.

The Company regularly evaluates which entities it will indefinitely reinvest earnings outside the U.S. The Company has provided deferred taxes for those entities whose earnings are not considered indefinitely reinvested. Accordingly, the Company continues to repatriate a portion of its non-U.S. cash in these subsidiaries and will continue to repatriate certain of its offshore cash in a manner that addresses compliance with local statutory requirements, sufficient offshore working capital and any other factors that may be relevant in certain jurisdictions. Notwithstanding the Tax Act, which generally eliminated federal income tax on future cash repatriation to the U.S., cash repatriation may be subject to state and local taxes or withholding or similar taxes.

Material Cash Requirements

The Company's material cash requirements consist of the following contractual and other obligations:

Financing Arrangements

Indebtedness

At December 31, 2025, Moody’s had $7.2 billion of outstanding debt and approximately $1 billion of additional capacity available under the Company’s CP program, which is backstopped by the $1.25 billion 2024 Credit Facility.

The repayment schedule for the Company’s borrowings outstanding at December 31, 2025 is as follows:

Future interest payments and fees associated with the Company's debt and credit facility are expected to be $3.7 billion. Of this amount, approximately $300 million is expected to be paid in each of the next two years, approximately $200 million in each of the subsequent three years, with the remaining balance expected to be paid thereafter. For additional information on the Company's outstanding debt, CP program and 2024 Credit Facility, refer to Note 16 to the consolidated financial statements.

Management may consider pursuing additional long-term financing when it is appropriate in light of cash requirements for operations, share repurchases and other strategic opportunities, which could result in higher financing costs.

Purchase Obligations

Purchase obligations generally include multi-year agreements with vendors to purchase goods or services and mainly include data center/cloud hosting fees and fees for information technology licensing and maintenance. As of December 31, 2025, these purchase obligations totaled approximately $650 million, of which approximately 60% is expected to be paid in the next twelve months and another approximate 40% expected to be paid over the next two subsequent years, with the remainder to be paid thereafter.

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Leases

The Company has remaining payments related to its operating leases of $1,031 million at December 31, 2025, primarily related to real estate leases, of which $100 million in payments are expected over the next twelve months. For more information on the expected cash flows relating to the Company's operating leases, refer to Note 18 to the consolidated financial statements.

Pension and Other Retirement Plan Obligations

The Company does not anticipate making significant contributions to its funded pension plan in the next twelve months. This plan is overfunded at December 31, 2025, and accordingly holds sufficient investments to fund future benefit obligations. Payments for the Company's unfunded plans are not expected to be material in either the short or long-term. For further information on the Company's pension and other retirement plan obligations, refer to Note 13 to the consolidated financial statements.

Dividends and share repurchases

On February 10, 2026, the Board approved the declaration of a quarterly dividend of $1.03 per share for Moody’s common stock, payable March 13, 2026 to shareholders of record at the close of business on March 2, 2026. The continued payment of dividends at this rate, or at all, is subject to the discretion of the Board.

On October 21, 2025 the Board authorized $4.0 billion in share repurchase authority. At December 31, 2025, the Company had approximately $4.0 billion of remaining authority under this authorization. There is no established expiration date for the remaining authorization.

Restructuring

As more fully discussed in Note 9 to the consolidated financial statements, the Company is currently in the process of executing the Strategic and Operational Efficiency Restructuring Program. Future cash outlays associated with this program are expected to be between $110 million and $130 million, which are expected to be paid out through 2027.

Sources of Funding to Satisfy Material Cash Requirements

The Company believes that it has the financial resources needed to meet its cash requirements and expects to have positive operating cash flow in 2026. Cash requirements for periods beyond the next twelve months will depend, among other things, on the Company’s profitability and its ability to manage working capital requirements. The Company may also borrow from various sources as described above.

Non-GAAP Financial Measures:

In addition to its reported results, Moody’s has included in this MD&A certain adjusted results that the SEC defines as “Non-GAAP financial measures.” Management believes that such adjusted financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s performance, facilitate comparisons to competitors’ operating results and can provide greater transparency to investors of supplemental information used by management in its financial and operational decision-making. These adjusted measures, as defined by the Company, are not necessarily comparable to similarly defined measures of other companies. Furthermore, these adjusted measures should not be viewed in isolation or used as a substitute for other GAAP measures in assessing the operating performance or cash flows of the Company. Below are brief descriptions of the Company’s adjusted financial measures accompanied by a reconciliation of the adjusted measure to its most directly comparable GAAP measure.

Adjusted Operating Income and Adjusted Operating Margin:

The Company presents Adjusted Operating Income and Adjusted Operating Margin because management deems these metrics to be useful measures to provide additional perspective on Moody's operating performance. Adjusted Operating Income excludes the impact of: i) depreciation and amortization; ii) restructuring charges/adjustments; and iii) charges related to asset abandonment. Depreciation and amortization are excluded because companies utilize productive assets of different useful lives and use different methods of acquiring and depreciating productive assets. Restructuring charges/adjustments and charges related to asset abandonment, which the Company believes are not reflective of its ongoing operating cost structure, are excluded as the frequency and magnitude of these charges may vary widely across periods and companies. Refer to Notes 9 and 22 to the consolidated financial statements for further information regarding the nature of the Company’s restructuring programs and asset abandonment, respectively.

Management believes that the exclusion of the aforementioned items, as detailed in the reconciliation below, allows for an additional perspective on the Company’s operating results from period to period and across companies. The Company defines Adjusted Operating Margin as Adjusted Operating Income divided by revenue.

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Year ended December 31,

2025

2024

Operating income

$

3,351 

$

2,875 

Adjustments:

Depreciation and amortization

480 

431 

Restructuring

108 

59 

Charges related to asset abandonment

3 

43 

Adjusted Operating Income

$

3,942 

$

3,408 

Operating margin

43.4 

%

40.6 

%

Adjusted Operating Margin

51.1 

%

48.1 

%

Adjusted Net Income and Adjusted Diluted EPS attributable to Moody’s common shareholders:

The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide additional perspective on Moody's operating performance. Adjusted Net Income and Adjusted Diluted EPS exclude the impact of: i) amortization of acquired intangible assets; ii) restructuring charges/adjustments; iii) charges related to asset abandonment; iv) gains on previously held equity method investments and v) gain on the divestiture of a business and certain direct costs to transact the divestiture.

The Company excludes the impact of amortization of acquired intangible assets as companies utilize intangible assets with different estimated useful lives and have different methods of acquiring and amortizing intangible assets. These intangible assets were recorded as part of acquisition accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. Furthermore, the timing and magnitude of business combination transactions are not predictable and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition and can vary significantly from period to period. The impact of restructuring charges/adjustments and charges related to asset abandonment, which the Company believes are not reflective of its ongoing operating cost structure are also excluded. Similarly, gains on previously held equity method investments and the gain pursuant to the divestiture of the MA Learning Solutions business along with certain related direct costs to transact the divestiture are excluded due to their infrequent nature and because they do not reflect the Company's ongoing operations. The frequency and magnitude of all of the aforementioned items may vary widely across periods and companies.

The Company excludes the aforementioned items to provide additional perspective when comparing net income and diluted EPS from period to period and across companies as the frequency and magnitude of similar transactions may vary widely across periods.

Year ended December 31,

Amounts in millions

2025

2024

Net income attributable to Moody’s common shareholders

$

2,459 

$

2,058 

Pre-tax Acquisition-Related Intangible Amortization Expenses

$

215 

$

198 

Tax on Acquisition-Related Intangible Amortization Expenses

(52)

(48)

Net Acquisition-Related Intangible Amortization Expenses

163 

150 

Pre-tax restructuring

$

108 

$

59 

Tax on restructuring

(27)

(15)

Net restructuring

81 

44 

Pre-tax charges related to asset abandonment

$

3 

$

43 

Tax on charges related to asset abandonment

(1)

(11)

Net charges related to asset abandonment

2 

32 

Pre-tax gain on previously held equity method investments

$

— 

$

(7)

Tax on gain on previously held equity method investments

— 

2 

Net gain on previously held equity method investments

— 

(5)

Pre-tax gain on divestiture of business

$

(23)

$

— 

Pre-tax costs to transact divestiture

2 

— 

Tax on gain on divestiture and related costs

3 

— 

Net gain on divestiture of business and related costs

(18)

— 

Adjusted Net Income

$

2,687 

$

2,279 

60     MOODY'S 2025 10-K

Table of Contents

Year ended December 31,

2025

2024

Diluted earnings per share attributable to Moody’s common shareholders

$

13.67 

$

11.26 

Pre-tax Acquisition-Related Intangible Amortization Expenses

$

1.20 

$

1.08 

Tax on Acquisition-Related Intangible Amortization Expenses

(0.29)

(0.26)

Net Acquisition-Related Intangible Amortization Expenses

0.91 

0.82 

Pre-tax restructuring

$

0.60 

$

0.32 

Tax on restructuring

(0.15)

(0.08)

Net restructuring

0.45 

0.24 

Pre-tax charges related to asset abandonment

$

0.02 

$

0.24 

Tax on charges related to asset abandonment

(0.01)

(0.06)

Net charges related to asset abandonment

0.01 

0.18 

Pre-tax gain on previously held equity method investments

$

— 

$

(0.04)

Tax on gain on previously held equity method investments

— 

0.01 

Net gain on previously held equity method investments

— 

(0.03)

Pre-tax gain on divestiture of business

$

(0.13)

$

— 

Pre-tax costs to transact divestiture

0.01 

— 

Tax on gain on divestiture and related costs

0.02 

— 

Net gain on divestiture of business and related costs

(0.10)

— 

Adjusted Diluted EPS

$

14.94 

$

12.47 

Note: the tax impacts in the table above were calculated using tax rates in effect in the jurisdiction for which the item relates.

Free Cash Flow:

The Company defines Free Cash Flow as net cash provided by operating activities minus cash paid for capital additions. Management believes that Free Cash Flow is a useful metric in assessing the Company’s cash flows to service debt, pay dividends and to fund acquisitions and share repurchases. Management deems capital expenditures essential to the Company’s product and service innovations and maintenance of Moody’s operational capabilities. Accordingly, capital expenditures are deemed to be a recurring use of Moody’s cash flow. Below is a reconciliation of the Company’s net cash flows from operating activities to Free Cash Flow:

Year ended December 31,

2025

2024

Net cash provided by operating activities

$

2,901 

$

2,838 

Capital additions

(326)

(317)

Free Cash Flow

$

2,575 

$

2,521 

Net cash provided by (used in) investing activities

$

2 

$

(1,056)

Net cash used in financing activities

$

(3,063)

$

(1,446)

Organic Constant Currency Revenue Growth:

The Company presents organic constant currency revenue growth as its non-GAAP measure of revenue growth. Management deems this measure to be useful in providing additional perspective in assessing the Company's revenue growth excluding both the inorganic revenue impacts from certain acquisition and divestiture activity completed within the last 12 months and the impacts of changes in foreign exchange rates. The Company calculates the dollar impact of foreign exchange as the difference between the translation of its current period non-USD functional currency results using comparative prior period weighted average foreign exchange translation rates and current year reported results.

Below is a reconciliation of the Company's reported revenue and growth rates to its organic constant currency revenue growth measures:

MOODY'S 2025 10-K     61

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Year ended December 31,

Amounts in millions

2025

2024

Change

Growth

MCO revenue

$

7,718 

$

7,088 

$

630 

9%

FX impact

(68)

— 

(68)

Inorganic revenue from acquisitions

(57)

— 

(57)

Divestitures

— 

(5)

5 

Organic constant currency MCO revenue

$

7,593 

$

7,083 

$

510 

7%

MA revenue

$

3,599 

$

3,295 

$

304 

9%

FX impact

(39)

— 

(39)

Inorganic revenue from acquisitions

(49)

— 

(49)

Divestitures

— 

(5)

5 

Organic constant currency MA revenue

$

3,511 

$

3,290 

$

221 

7%

Decision Solutions revenue

$

1,692 

$

1,516 

$

176 

12%

FX impact

(13)

— 

(13)

Inorganic revenue from acquisitions

(49)

— 

(49)

Divestitures

— 

(5)

5 

Organic constant currency Decision Solutions revenue

$

1,630 

$

1,511 

$

119 

8%

Banking revenue

$

569 

$

551 

$

18 

3%

FX impact

(2)

— 

(2)

Inorganic revenue from acquisitions

(9)

— 

(9)

Divestitures

— 

(5)

5 

Organic constant currency Banking revenue

$

558 

$

546 

$

12 

2%

Insurance revenue

$

685 

$

598 

$

87 

15%

FX impact

(2)

— 

(2)

Inorganic revenue from acquisitions

(40)

— 

(40)

Organic constant currency Insurance revenue

$

643 

$

598 

$

45 

8%

KYC revenue

$

438 

$

367 

$

71 

19%

FX impact

(9)

— 

(9)

Organic constant currency KYC revenue

$

429 

$

367 

$

62 

17%

Data and Information revenue

$

912 

$

853 

$

59 

7%

FX impact

(17)

— 

(17)

Constant currency Data and Information revenue

$

895 

$

853 

$

42 

5%

MA recurring revenue

$

3,462 

$

3,125 

$

337 

11%

FX impact

(40)

— 

(40)

Inorganic revenue from acquisitions

(47)

— 

(47)

Organic constant currency MA recurring revenue

$

3,375 

$

3,125 

$

250 

8%

Decision Solutions recurring revenue

$

1,575 

$

1,370 

$

205 

15%

FX impact

(14)

— 

(14)

Inorganic revenue from acquisitions

(47)

— 

(47)

Organic constant currency Decision Solutions recurring revenue

$

1,514 

$

1,370 

$

144 

0

11%

62     MOODY'S 2025 10-K

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Year ended December 31,

2025

2024

Change

Growth

Banking recurring revenue

$

476 

$

438 

$

38 

9%

FX impact

(3)

— 

(3)

Inorganic revenue from acquisitions

(8)

— 

(8)

Organic constant currency Banking recurring revenue

$

465 

$

438 

$

27 

6%

Insurance recurring revenue

$

664 

$

572 

$

92 

16%

FX impact

(2)

— 

(2)

Inorganic revenue from acquisitions

(39)

— 

(39)

Organic constant currency Insurance recurring revenue

$

623 

$

572 

$

51 

9%

KYC recurring revenue

$

435 

$

360 

$

75 

21%

FX impact

$

(9)

— 

(9)

Organic constant currency KYC recurring revenue

$

426 

$

360 

$

66 

18%

Key Performance Metrics:

The Company presents ARR on an organic constant currency basis for its MA business as a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time. The Company uses ARR to manage and monitor performance of its MA operating segment and believes that this metric is a key indicator of the trajectory of MA's recurring revenue base.

The Company calculates ARR by taking the total recurring contract value for each active renewable contract as of the reporting date, divided by the number of days in the contract and multiplied by 365 days to create an annualized value. The Company defines renewable contracts as subscriptions, term licenses, maintenance and renewable services. ARR excludes transaction sales including one-time training, services and perpetual licenses. In order to compare period-over-period ARR excluding the effects of foreign currency translation, the Company bases the calculation on currency rates utilized in its current year operating budget and holds these FX rates constant for the duration of all current and prior periods being reported. Additionally, to provide better perspective in assessing growth, the Company excludes from ARR contracts associated with acquisitions and divestitures completed within the last 12 months.

The Company’s definition of ARR may differ from definitions utilized by other companies reporting similarly named measures, and this metric should be viewed in addition to, and not as a substitute for, financial measures presented in accordance with GAAP.

Amounts in millions

December 31, 2025

December 31, 2024

Change

Growth

MA ARR

Banking

$

494 

$

458 

$

36 

8%

Insurance

649 

604 

45 

7%

KYC

436 

380 

56 

15%

Total Decision Solutions

$

1,579 

$

1,442 

$

137 

10%

Research and Insights

1,002 

932 

70 

8%

Data and Information

917 

859 

58 

7%

Total MA ARR

$

3,498 

$

3,233 

$

265 

8%

Recently Issued Accounting Pronouncements

Refer to Note 2 to the consolidated financial statements located in Part II, Item 8 on this Form 10-K for a discussion on the impact to the Company relating to recently issued accounting pronouncements.

Contingencies

Legal proceedings in which the Company is involved also may impact Moody’s liquidity or operating results. No assurance can be provided as to the outcome of such proceedings. In addition, litigation inherently involves significant costs. For information regarding legal proceedings, see Part II, Item 8 – “Financial Statements,” Note 19 “Contingencies” in this Form 10-K.

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Table of Contents

Forward-Looking Statements

Certain statements contained in this annual report on Form 10-K are forward-looking statements and are based on future expectations, plans and prospects for the Company's business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Those statements appear at various places throughout this annual report on Form 10-K, including in the sections entitled “Contingencies” under Item 7, “MD&A”, commencing on page 36 of this annual report on Form 10-K, under “Legal Proceedings” in Part I, Item 3, of this Form 10-K, and elsewhere in the context of statements containing the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “will,” “predict,” “potential,” “continue,” “strategy,” “aspire,” “target,” “forecast,” “project,” “estimate,” “should,” “could,” “may,” and similar expressions or words and variations thereof relating to the Company’s views on future events, trends and contingencies or otherwise convey the prospective nature of events or outcomes generally indicative of forward-looking statements. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements and other information in this document are made as of the date of this annual report on Form 10-K, and the Company undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying certain factors that could cause actual results to differ, perhaps materially, from those indicated by these forward-looking statements.

Those factors, risks and uncertainties include, but are not limited to:

–the uncertain effects of U.S. and foreign government actions affecting international trade and economic policy, including changes and volatility in tariffs and trade policies and retaliatory actions, on credit markets, customers, and customer retention, and demand for our products and services;

–the impact of general economic conditions (including significant government debt and deficit levels and inflation or recessions and related monetary policy actions by governments in response thereto) on worldwide credit markets and on economic activity, including on the level of merger and acquisition activity, and their effects on the volume of debt and other securities issued in domestic and/or global capital markets;

–the uncertain effects of U.S. and foreign government initiatives and monetary policy to respond to the current economic climate, including instability of financial institutions, credit quality concerns, and other potential impacts of volatility in financial and credit markets;

–the impacts of geopolitical events and actions, such as the Russia-Ukraine military conflict, military conflicts in the Middle East, and tensions between India and Pakistan, and of tensions and disputes in political and global relations, on volatility in world financial markets, on general economic conditions and GDP in the U.S. and worldwide and on the Company's own operations and personnel;

–other matters that could affect the volume of debt and other securities issued in domestic and/or global capital markets, including regulation, increased utilization of technologies that have the potential to intensify competition and accelerate disruption and disintermediation in the financial services industry, as well as the number of issuances of securities without ratings or securities which are rated or evaluated by non-traditional parties;

–the level of merger and acquisition activity in the U.S. and abroad;

–the impact of MIS’s withdrawal of its credit ratings on countries or entities within countries and of Moody’s no longer conducting commercial operations in countries where political instability warrants such actions;

–concerns in the marketplace affecting our credibility or otherwise affecting market perceptions of the integrity or utility of independent credit agency ratings;

–the introduction or development of competing and/or emerging technologies and products;

–pricing pressure from competitors and/or customers;

–the level of success of new product development and global expansion;

–the impact of regulation as an NRSRO, the potential for new U.S., state and local legislation and regulations;

–the potential for increased competition and regulation in the jurisdictions in which we operate, including the EU;

–exposure to litigation related to our rating opinions, as well as any other litigation, government and regulatory proceedings, investigations and inquiries to which Moody’s may be subject from time to time;

–provisions in U.S. legislation modifying the pleading standards and EU regulations modifying the liability standards, applicable to CRAs in a manner adverse to CRAs;

–provisions of EU regulations imposing additional procedural and substantive requirements on the pricing of services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes;

–uncertainty regarding the future relationship between the U.S. and China;

64     MOODY'S 2025 10-K

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–the possible loss of key employees and the impact of the global labor environment;

–failures or malfunctions of our operations and infrastructure;

–any vulnerabilities to cyber threats or other cybersecurity concerns;

–the timing and effectiveness of our restructuring programs;

–currency and foreign exchange volatility;

–the outcome of any review by tax authorities of Moody’s global tax planning initiatives;

–exposure to potential criminal sanctions or civil remedies if Moody’s fails to comply with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which Moody’s operates, including data protection and privacy laws, sanctions laws, anti-corruption laws, and local laws prohibiting corrupt payments to government officials;

–the impact of mergers, acquisitions, or other business combinations and the ability of Moody’s to successfully integrate acquired businesses;

–the level of future cash flows;

–the levels of capital investments; and

–a decline in the demand for credit risk management tools by financial institutions, corporate or government entities.

These factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of this annual report on Form 10-K, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition. New factors may emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess the potential effect of any new factors on it. Forward-looking and other statements in this document may also address our corporate responsibility progress, plans, and goals (including sustainability and environmental matters), and the inclusion of such statements is not an indication that these contents are necessarily material to investors or required to be disclosed in the Company’s filings with the Securities and Exchange Commission. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.