SS&C Technologies Holdings, Inc. Q3 FY2025 earnings call

• Third quarter saw record adjusted revenue of $1.569 billion, up 7%, and adjusted diluted earnings per share of $1.57, a 17.2% increase. • Adjusted consolidated EBITDA was $619 million, up 9.3%, with a margin of 39.5%. • Adjusted organic revenue growth was 5.2%, with GlobeOp at 9.6% and GIDS at 9% growth. • Q3 Financial Services recurring revenue growth was 6.7%. • Returned $305 million to shareholders in Q3, including share repurchases and increased common stock dividend to $1.08. • Announced acquisition of Curo Fund Services in September, deepening relationship with clients and gaining local presence in Africa. • Calastone acquisition closed on October 14, adding 250 employees to GIDS business. • Tokenization gaining traction, with SS&C offering solutions for digital asset strategies. • Focus on intelligent automation and AI as revenue opportunity and way to reduce repetitive tasks.

SS&C Technologies' third quarter results included record adjusted revenue of $1.569 billion, up 7%. Adjusted diluted earnings per share was $1.57, a 17.2% increase. Adjusted consolidated EBITDA was $619 million, up 9.3%, with a margin of 39.5%. Adjusted organic revenue growth was 5.2%, driven by GlobeOp with 9.6% revenue growth and GIDS business with 9% revenue growth. Q3 Financial Services recurring revenue growth was 6.7%. For the 9 months ended September 30, '25, cash from operating activities was $1.101 million, up 22% over the prior year.

• Fourth quarter 2025 revenue expected to be in range of $1.59 billion to $1.63 billion, with 4.5% organic revenue growth at midpoint. • Adjusted net income range of $394 million to $410 million. • Interest expense range of $106 million to $108 million. • Diluted shares range of 251.5 million to 252.5 million. • Adjusted diluted EPS range of $1.56 to $1.62. • Full year 2025 revenue guidance raised to $6.21 billion to $6.25 billion, 4.6% growth at midpoint. • Adjusted net income range of $1.522 billion to $1.538 billion, adjusted diluted EPS range of $6.02 to $6.08. • Cash from operating activities range of $1.515 billion to $1.575 billion.

Actual results may differ materially from forward-looking statements due to various factors, including those discussed in the Risk Factors section of the most recent annual report on Form 10-K.

Q: Dan Perlin from RBC Capital Markets asked about 4Q organic guide and Battea's contribution.

A: Rahul Kanwar said Q4 of the prior year was strongest, Battea's contribution expected to be about $25 million in Q4 2025.

Q: Jeff Schmitt from William Blair asked about Curo Fund Services deal.

A: Bill Stone said African market was behind, Curo was acquired for its 2 large clients and went into GIDS, generating negligible revenue.

Q: Alexei Gogolev from JPMorgan asked about margin impact from revenue mix.

A: Brian Schell said GlobeOp had strong margins, GIDS working on margin, projecting greater than 50 basis point margin improvement.

Q: Peter Heckmann from D.A. Davidson asked about Calastone's complement to U.K. operations and seasonality.

A: Bill Stone said Calastone had synergies with U.K. operations and no significant seasonality.

Q: Patrick O'Shaughnessy from Raymond James asked about Intralinks pipeline and health care business.

A: Rahul Kanwar said Intralinks pipeline showing positive signs, Bill Stone talked about health care business with strong clients and opportunities.

Q: Kevin McVeigh from UBS asked about EPS upside.

A: Bill Stone said upside from Australia lift out and strong performance of GlobeOp.

Q: James Faucette from Morgan Stanley asked about private credit flows and go-to-market.

A: Bill Stone said private credit flows still strong, go-to-market focused on scale and speed.