FactSet Research Systems Inc. (FDS): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and understand exactly how FactSet Research Systems Inc. generates its substantial revenue, especially after a busy 2025 that included the LiquidityBook acquisition in February. Honestly, after two decades analyzing these giants, I can tell you their model isn't complex, but it is incredibly sticky; it's all about embedding their multi-asset data and workflow tools deep into the daily operations of the buy-side. With recurring subscription value (ASV) hitting $2.4056 billion by the end of fiscal 2025, it's clear their platform is mission-critical for their roughly 9,000 clients. I've mapped out the nine essential building blocks of the FactSet Research Systems Inc. business model below so you can see precisely what keeps that client retention so high.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Key Partnerships

FactSet Research Systems Inc. relies on a network of strategic partners and recent acquisitions to expand its data reach and workflow capabilities across the investment lifecycle.

The strategic alliance with Arcesium is designed to deliver a unified investment management offering, combining FactSet Research Systems Inc.'s front and middle-office analytics with Arcesium's back-office technology, including IBOR (Investment Book of Record), ABOR (Accounting Book of Record), and Reference Data solutions. This aims to bridge the gap between public and private assets for asset owners and managers.

Collaboration with Amazon Quick Research directly connects FactSet Research Systems Inc.'s market intelligence with clients' AWS cloud platforms, targeting organizations implementing enterprise-level AI strategy. FactSet Research Systems Inc. serves approximately 9,000 global clients and has roughly 240,000 users of its FactSet Workstation application, with operations in 20 countries.

The expansion into workflow capabilities was significantly bolstered by the acquisition of LiquidityBook, which closed on February 7, 2025, for a gross purchase price of $246.5 million in cash. LiquidityBook, which employs approximately 70 people worldwide, operates a proprietary FIX network enabling streamlined connectivity to over 200 brokers and order routing to more than 1,600 destinations across 80 markets globally.

FactSet Research Systems Inc. maintains deep relationships with third-party data suppliers, news sources, and global exchanges for content aggregation. The company streams data from over 300 global exchanges and OTCs natively in AWS through the Amazon Data Exchange.

Key data and integration partnerships include:

• FactSet leads an investment in BondCliQ to integrate its intra-day pricing data for corporate bonds.
• FactSet became the preferred data provider for BlueMatrix via an enhanced commercial agreement.
• The firm's model-ready datasets include fundamentals, consensus estimates, and ownership data.

The scale of FactSet Research Systems Inc.'s operations, which underpins these partnerships, is reflected in its fiscal 2025 results. GAAP revenues for fiscal 2025 reached $2,321.7 million, and Organic ASV (Annual Subscription Value) stood at $2,370.9 million as of August 31, 2025. Client count as of May 31, 2025, was 8,811.

The following table summarizes key metrics related to recent strategic moves and the overall client base supporting these partnerships as of late 2025:

Technology vendors for cloud services and infrastructure support are critical, evidenced by the direct integration with AWS via Amazon Quick Research, which allows for eliminating hours spent manually uploading data to cloud environments for AI applications.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Key Activities

You're looking at the core engine of FactSet Research Systems Inc. as of late 2025, the activities that turn data into dollars. It's all about the scale of the data operation and the stickiness of the client base.

The foundation is the sheer volume of data FactSet Research Systems Inc. handles. For the full fiscal year 2025, which ended August 31, 2025, the company reported GAAP revenues of $2,321.7 million. The forward-looking revenue metric, Organic Annual Subscription Value (ASV), stood at $2,370.9 million as of that date, showing a year-over-year increase of 5.7%. This activity supports a massive user base; as of August 31, 2025, FactSet Research Systems Inc. served 8,996 clients and 237,324 professionals. The buy-side segment alone accounted for 82% of the organic ASV.

This data processing and delivery is supported by a significant workforce. Employee headcount reached 12,800 as of August 31, 2025, with an increase of 3.2% over the last 12 months, primarily in the sales and technology groups. FactSet Research Systems Inc.'s centers of excellence account for approximately 68% of the Company's employees. The GAAP operating margin for fiscal 2025 was 32.2%.

Integrating Artificial Intelligence (AI) is a clear focus area for workflow enhancement. The company is actively embedding Generative AI (GenAI) solutions into its suite. You see the direct financial impact of these new capabilities.

• AI products contributed an estimated 30 to 50 basis points to the FY2025 ASV growth.
• The Pitch Creator tool, designed to automate pitch creation, has secured 10 signed deals.
• The pipeline for Pitch Creator includes over 45 opportunities.

Securing renewals and growing the user base is central to the business's stability, evidenced by strong retention figures. Client count grew by 9.5%, or 779 clients, during fiscal 2025. Annual ASV retention was reported as greater than 95% as of August 31, 2025. When measured by the number of clients, the annual retention rate was 91%. The company also increased its quarterly cash dividend in May 2025 by 6% to $1.10 per share.

Strategic moves, including M&A, are key to acquiring new data sets and workflow technology. FactSet Research Systems Inc. enhanced its investor relations platform through the acquisition of Irwin. The company also added an Order Management System via the acquisition of LiquidityBook. On the divestiture side, the company completed the sale of its RMS Partners business on August 29, 2025. More recently, on December 4, 2025, FactSet Research Systems Inc. announced its market intelligence is available via Amazon Quick Research, connecting data directly to AWS cloud platforms.

Finance: draft FY2026 cash flow forecast incorporating expected organic ASV growth of 4% - 6% by next Tuesday.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Key Resources

You're looking at the core assets FactSet Research Systems Inc. relies on to run its business as of late 2025. These aren't just line items on a balance sheet; they are the engine room for their financial intelligence delivery.

Proprietary connected data and technology platform

The platform itself is the central resource, designed to be open and flexible, integrating expansive data, sophisticated analytics, and AI-powered technologies. This connected ecosystem is what allows clients to power their critical investment workflows across the entire lifecycle, from research to reporting.

The platform's reach is quantified by its ability to normalize data from over 200+ global exchanges across more than 150+ data fields. This normalization is key to delivering consolidated real-time and delayed global exchange data effectively.

Highly skilled human capital, including 12,800 employees with a focus on tech and sales

FactSet Research Systems Inc. maintains a significant global workforce to support its platform and client base. As of August 31, 2025, the total employee headcount stood at 12,800, marking a 3.24% increase year-over-year. This growth was intentionally directed toward technology and sales functions to support ongoing development and client acquisition.

Here's a quick look at where those 12,800 professionals were located at the end of fiscal 2025:

To support this scale, FactSet Research Systems Inc. heavily relies on its Centers of Excellence (COEs), primarily in India and the Philippines, which accounted for approximately 68% of the total employee base as of August 31, 2025. This structure helps manage costs while scaling tech and support functions.

Extensive, high-quality financial data and content library

The depth and breadth of the data library are non-negotiable resources. FactSet Research Systems Inc. aggregates content from third-party suppliers, news sources, exchanges, brokers, and contributors into its managed databases. The platform offers access to over 20+ years of comprehensive estimates and statistics on financial statement items.

The sheer volume of coverage is substantial, supporting diverse client needs:

• Access to hard-to-find data for over 15 million+ companies.
• Global coverage for equity prices, returns, and volume referencing over 180,000+ active and inactive securities.
• Information on over 500,000+ announced mergers, acquisitions, divestitures, and spin-offs.

The quality of this data directly impacts the Annual Subscription Value (ASV), which totaled $2,405.6 million at August 31, 2025. Organic ASV growth for the year was 5.7%, reaching $2,370.9 million, showing the market values this content.

Intellectual property and patents, including the CUSIP Global Services business

Intellectual property is a foundational asset, though specific patent counts aren't always public. A concrete, revenue-generating piece of IP is the CUSIP Global Services (CGS) business. Organic ASV growth was driven by workstations, data solutions, and, to a lesser extent, CGS during fiscal 2025.

The overall health of the subscription business, which is underpinned by this IP, is strong. As of August 31, 2025, the client base stood at 8,996 firms, with an annual ASV retention rate greater than 95%. This sticky revenue stream validates the proprietary nature of the offerings.

Global data centers and cloud infrastructure for platform delivery

While specific data center counts or cloud spend figures are not detailed in the public summaries, the operational footprint confirms a global infrastructure requirement. FactSet Research Systems Inc. maintained 35 offices across 19 countries as of August 31, 2025, supporting its global client base. The platform delivery relies on this infrastructure to serve its 237,324 investment professionals worldwide.

The company's financial performance in fiscal 2025 reflects the scale of this operation:

Finance: draft 13-week cash view by Friday.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why firms stick with FactSet Research Systems Inc. year after year. It boils down to making the complex world of financial data manageable and actionable from one spot. The platform is designed to be the single source of truth for investment professionals, which is why you see such sticky relationships.

The value proposition centers on providing integrated, multi-asset class data and analytics. This means a portfolio manager isn't juggling separate systems for equities, fixed income, and alternatives; it's all there, powered by a connected data and technology platform. This integration is critical for the buy-side, which accounted for approximately 82% of FactSet Research Systems Inc.'s Organic Annual Subscription Value (ASV) as of August 31, 2025. The sell-side made up the remaining 18% of that Organic ASV.

FactSet Research Systems Inc. delivers workflow solutions that span the Front, Middle, and Back Office. This comprehensive coverage helps firms streamline processes across the investment lifecycle. You see this commitment reflected in their business focus, as they have been shifting offerings toward more managed services and away from project-based services, a change highlighted by their reporting focus on Organic ASV starting in fiscal 2025.

Honestly, the stickiness of the platform is the best proof of its value. The high client retention rate of 91%, when expressed as a percentage of clients as of August 31, 2025, shows the platform is defintely indispensable. That's a tough metric to maintain in this industry, and it's backed up by an even stronger Annual ASV retention rate, which was greater than 95% at the same date. Here's a quick look at the scale and retention metrics as of the end of Fiscal Year 2025:

The integration of AI-powered tools is a major near-term value driver, designed to boost analyst productivity and speed up research. FactSet Research Systems Inc. is embedding Generative AI (GenAI) solutions like Pitch Creator and Portfolio Commentary into workflows. For fiscal 2025, these AI products were estimated to contribute between 30 to 50 basis points to ASV growth, translating to an estimated incremental revenue of $30 million to $130 million. For example, the Pitch Creator tool alone has secured 10 signed deals and maintains a pipeline of over 45 opportunities. Junior bankers are saving countless hours leveraging this solution.

Finally, the open platform strategy is key to future-proofing the offering. This allows clients to integrate their own data and third-party applications directly. You see this in action with recent moves, such as the acquisition of Irwin, which enhanced investor relations capabilities, and the integration with Amazon Quick Research, which bridges FactSet data directly with a client's AWS cloud platform. This approach ensures FactSet Research Systems Inc. remains the connective tissue, meeting clients right where their enterprise AI strategies are being deployed.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Customer Relationships

You're managing client relationships in a world where data access is everything, so FactSet Research Systems Inc. focuses on making its platform indispensable. The relationship model isn't just about selling a product; it's about deep, continuous integration into the client's daily operations.

Dedicated, high-touch relationship management for institutional clients.

FactSet Research Systems Inc. maintains direct, high-touch engagement, especially with its institutional base. This is supported by a significant global workforce, with an employee headcount of 12,800 as of August 31, 2025. To ensure quality and scale, approximately 68% of these employees are situated within the Company's Centers of Excellence. This structure supports the ongoing service delivery that keeps clients reliant on the platform. For instance, strategic wins like UBS selecting FactSet to power advisor desktops positions FactSet as a primary market data partner for half of the world's top 20 wealth management firms. This level of partnership requires dedicated relationship oversight.

Embedded, mission-critical integration into client daily workflows.

The core value proposition relies on the platform being embedded where the work happens. This is evident in the platform's integration capabilities, such as the FactSet for CRM offering, which is a turn-key solution integrating data directly into platforms like Salesforce and Microsoft Dynamics. This integration helps empower teams in Wealth, Banking, and Private Capital to streamline daily processes. The stickiness of this integration is reflected in the financial results:

The buy-side, which includes institutional asset managers and hedge funds, drives the majority of the recurring revenue base.

Long-term, recurring subscription contracts with high Annual Subscription Value (ASV) retention of over 95%.

The business model is fundamentally built on long-term, recurring revenue streams, which is the bedrock of FactSet Research Systems Inc.'s stability. This is quantified by exceptional retention figures. The commitment to subscription contracts is clear from the financial performance metrics:

• Annual ASV retention was greater than 95% as of August 31, 2025.
• Annual client retention stood at 91% as of August 31, 2025.
• Total Annual Subscription Value (ASV) reached $2,405.6 million at August 31, 2025.
• Organic ASV grew by $127.3 million year over year to $2,370.9 million for fiscal 2025.

This high retention has contributed to a track record of more than 45 consecutive years of increased revenues for FactSet Research Systems Inc. Also, fiscal 2025 marked the 29th consecutive year that FactSet Research Systems Inc. increased its adjusted diluted Earnings Per Share (EPS).

Professional services and managed services for complex enterprise solutions.

To support complex enterprise needs, FactSet Research Systems Inc. offers solutions that go beyond the standard workstation. This includes leveraging its open and flexible technology to deliver enterprise-wide solutions, often by using client portfolio data across multiple asset classes. The focus on expanding the depth of content and increasing workflow efficiency for sell-side firms, which accounted for approximately 18% of Organic ASV as of August 31, 2025, often requires tailored professional services. Furthermore, the company's commitment to returning value to stockholders, demonstrated by a 6% increase in the quarterly cash dividend to $1.10 per share in May 2025, is a direct reflection of the reliable cash flow generated from these sticky, high-value client relationships.

Finance: draft 13-week cash view by Friday.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Channels

You're looking at how FactSet Research Systems Inc. gets its services into the hands of financial professionals, and it's a multi-pronged approach that relies heavily on recurring subscriptions.

The core delivery mechanism is the FactSet Workstation, which is available as a desktop and mobile application. As of August 31, 2025, the platform supported over 237,000 individual users across approximately 9,000 global clients. This user base grew by 9.7% or 20,943 users from the prior year. The stickiness of this channel is high, with Annual Subscription Value (ASV) retention greater than 95% as of August 31, 2025.

Direct engagement remains critical. FactSet Research Systems Inc. deploys a direct sales force and client service teams globally to manage its relationships. The employee headcount stood at 12,800 as of August 31, 2025, with increases primarily in the sales and technology groups over the last 12 months. This direct touch supports the overall client retention rate, which was 91% as of August 31, 2025.

For deeper integration, Enterprise Data Solutions, which includes data feeds and APIs, is a key channel. The company is positioned as an enterprise solutions provider, and its revenues are primarily derived from subscriptions to its multi-asset class data and solutions powered by its connected data and technology platform. The total Annual Subscription Value (ASV) at August 31, 2025, was $2,405.6 million, with Organic ASV at $2,370.9 million. Buy-side clients, who heavily utilize these enterprise-level data connections, accounted for approximately 82% of the Organic ASV as of that date.

FactSet Research Systems Inc. also utilizes strategic technology partnerships for cloud-based delivery. Most recently, as of December 4, 2025, the company announced its trusted market intelligence is available via Amazon Quick Research. This offering creates a seamless connection between existing FactSet subscriptions and a client's AWS cloud platform, specifically targeting AI leaders managing enterprise-level AI strategy. This move underscores the focus on flexible, cloud- and AI-ready offerings.

Here's a quick look at the scale of the business supporting these channels for the fiscal year ended August 31, 2025:

The delivery methods are clearly segmented to meet different client needs:

• FactSet Workstation for individual professional workflows.
• Enterprise Data Solutions for direct system integration via feeds and APIs.
• Direct sales and service teams for relationship management.
• Cloud partnerships like Amazon Quick Research for AI-driven cloud access.

The company's total GAAP revenue for the full fiscal year 2025 was $2.32 billion.

Finance: draft 13-week cash view by Friday.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Customer Segments

You're looking at who actually pays the bills for FactSet Research Systems Inc. as of the end of fiscal 2025. It's a focused, high-value B2B model, primarily serving the world's investment professionals. The numbers tell a clear story about where the recurring revenue, or Annual Subscription Value (ASV), is concentrated.

As of August 31, 2025, FactSet Research Systems Inc. served 8,996 clients, which translates to over 237,000 individual investment professionals using their platform daily. That user base grew by 9.7% or 20,943 users over the prior twelve months, showing solid adoption. Honestly, the client retention metrics are what you'd expect from a mission-critical provider: annual ASV retention was greater than 95% as of that date, with client retention at 91%.

The customer base is clearly segmented by the type of financial activity they perform, but the revenue concentration is heavily weighted toward one side of the market.

The Institutional Buy-Side is the bedrock of the revenue stream. This group, which includes institutional asset managers, hedge funds, asset owners, partners, and corporate clients, accounted for 82% of the total organic ASV as of August 31, 2025. This is where the deep, multi-asset class data and analytics are indispensable.

The remaining organic ASV, which is 18%, comes from the Sell-Side. This segment is comprised of broker-dealers, banking and advisory firms, and private equity and venture capital firms. They use FactSet Research Systems Inc.'s tools for research, trading support, and workflow efficiency.

You need to pay attention to the growth areas, too. Wealth Management professionals are definitely a key growth driver. In the last quarter of fiscal 2025, the net increase in users was specifically driven by an increase in wealth management users. This segment, along with corporate clients, was cited as driving the net increase in client count during that quarter. The attach rates for off-platform products for wealth clients were noted as being around 1.5x what they were in fiscal 2024, which is a strong indicator of deeper product usage.

Here's a quick look at the key segment metrics as of the end of fiscal 2025:

FactSet Research Systems Inc. serves a diverse set of financial professionals, but the structure shows a clear reliance on the buy-side for the bulk of its subscription value. The growth is coming from expanding the user base within wealth management and securing more corporate and PE/VC logos.

You can see the composition of the total user base broken down by the key groups mentioned in the outline:

• Institutional Buy-Side (Asset Managers, Hedge Funds, Asset Owners)
• Sell-Side (Investment Banks, Brokerage Houses)
• Wealth Management professionals
• Corporate users, Private Equity, and Venture Capital professionals

Finance: draft Q1 FY2026 budget allocation for Wealth Management sales enablement by next Wednesday.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Cost Structure

You're looking at the expense side of FactSet Research Systems Inc.'s engine, the costs required to keep that massive data and analytics platform running and growing through late 2025. It's a business built on information, so the costs reflect that heavy lift.

The overall cost base is substantial. FactSet Research Systems operating expenses for the twelve months ending August 31, 2025, totaled approximately $1.573B. This figure reflects the scale of running a global financial data operation.

High fixed costs related to technology infrastructure and data licensing.

The core of the cost structure involves maintaining and expanding the digital backbone. While specific fixed cost breakdowns aren't explicitly detailed for 2025, the nature of the business implies significant, relatively fixed spending on data acquisition and the underlying technology stack. For context, in fiscal 2020, one key data supplier for risk models and portfolio optimizer data represented 11% of FactSet Research Systems' total data costs. You can assume that data licensing remains a major, non-trivial component of the operating expenses.

Significant personnel expenses for the 12,800 employees, especially in tech and sales.

People are the next biggest line item. As of August 31, 2025, FactSet Research Systems had 12,800 employees. This headcount represented a 3.24% increase, or 402 people, compared to the prior year. The growth was specifically concentrated in the technology and sales groups, showing where the investment dollars are flowing to support the platform and client acquisition efforts. For a quick check on efficiency, the revenue per employee for fiscal 2025 was reported at $181,387, with profits per employee at $46,644.

Amortization and professional fees from strategic acquisitions like LiquidityBook.

Growth through acquisition brings non-cash charges and transaction costs. The acquisition of LiquidityBook closed on February 7, 2025. These types of deals directly impact the cost structure through amortization of acquired intangible assets and associated professional fees. For instance, in the third quarter of fiscal 2025, the GAAP operating margin decreased partly due to higher amortization of intangible assets. Similarly, in the first quarter of fiscal 2025, GAAP operating margin decreased due to an increase in amortization of intangible assets and professional fees. This is a recurring cost consequence of FactSet Research Systems' inorganic growth strategy.

Ongoing investment in cloud computing and internal software development.

The headcount growth in technology supports this. You have to spend to keep the platform modern, especially with the industry shift toward AI. This investment is necessary to maintain the 'differentiated data and technology' FactSet Research Systems touts. The expense is embedded in personnel costs and capital expenditures, which decreased to $178.1 million in free cash flow for Q4 2025, partly due to lower net cash from operating activities and an increase in capital expenditures.

Sales and marketing costs to drive new client acquisition and user growth.

Acquiring new clients and growing users requires a commercial spend. The headcount increase in the sales group directly reflects this push. In Q1 2025, higher operating expenses offset revenue growth, impacting adjusted diluted EPS. This expense base includes the costs associated with the sales and marketing engine needed to support the 9.5% increase in clients, reaching 8,996 firms as of August 31, 2025.

Here's a quick look at the key financial context for fiscal 2025:

Finance: draft 13-week cash view by Friday.

FactSet Research Systems Inc. (FDS) - Canvas Business Model: Revenue Streams

You're looking at the core engine of FactSet Research Systems Inc.'s financial engine for late 2025, which is heavily weighted toward predictable, recurring income. The structure is built to capture value from the continuous need for high-quality financial data and analytics.

The primary revenue stream comes from recurring subscription services, tracked as Annual Subscription Value (ASV). At year-end for fiscal year 2025 (August 31, 2025), the total ASV stood at $2.4056 billion. This figure represents the forward-looking revenue for the next 12 months from all subscription services currently supplied to clients. To give you a sense of where that subscription value is concentrated, the Organic ASV breakdown by client type as of that date shows the core focus:

The subscription fees for the FactSet Workstation and related products form the bulk of this ASV. These are the seats and access points where financial professionals consume the data. Still, the revenue capture isn't just about the terminal; it's about the underlying data delivery mechanisms.

Another key part of the subscription model involves the sales of Enterprise Data Solutions, which includes data feeds and Application Programming Interfaces (APIs). FactSet Research Systems Inc. expanded its offerings in fiscal 2025 by adding real-time data feeds and enhancing pricing and reference data, which feeds directly into these enterprise contracts.

The overall financial scale is captured by the total recognized revenue. Total GAAP revenues for fiscal year 2025 reached $2.32 billion. This GAAP revenue figure includes the recognized portion of the subscription value, plus other revenue sources.

The final, though smaller, component is professional services and consulting fees. While the subscription base is the anchor, FactSet Research Systems Inc. is growing its capabilities in key areas, which often involves services layered on top of the core data platform. This is a component that management is focused on growing alongside the core subscription base.

Here's a quick look at the primary revenue drivers based on the FY2025 reporting:

• Primary revenue from recurring subscription services (ASV) was $2.4056 billion at year-end FY2025.
• Total GAAP revenues for fiscal year 2025 reached $2.32 billion.
• Subscription fees cover the FactSet Workstation and related product access.
• Enterprise Data Solutions revenue streams include data feeds and API access.
• Professional services and consulting fees represent a smaller, growing component.

Finance: draft 13-week cash view by Friday.