Morningstar, Inc. (MORN): Business Model Canvas [Dec-2025 Updated]

You're looking at Morningstar, Inc. (MORN) not just as a stock, but as a machine built to process and sell investment intelligence, and honestly, the engine is clearly running on institutional data platforms right now. We see their focus shifting hard toward scaling PitchBook and Morningstar Direct, which is where the subscription dollars are flowing, evidenced by Q3 2025 subscription revenue hitting $211.1 million from Direct alone. The whole model hinges on proprietary data sets-backed by $369 billion in AUMA-and their DBRS Morningstar credit franchise, but you'll also see significant cost pressures from compensation and R&D to keep that data edge sharp. Dive below to see exactly how these nine blocks fit together to generate their revenue streams and what that means for their next move.

Morningstar, Inc. (MORN) - Canvas Business Model: Key Partnerships

You're looking at the concrete numbers behind Morningstar, Inc.'s key alliances as of late 2025. Here is the data on the partnerships you asked about.

Northern Trust extended partnership for asset servicing

Morningstar Investment Management, which manages $352 billion in assets, continued its comprehensive asset servicing relationship with Northern Trust (Nasdaq: NTRS) as of August 2025. This renewed mandate supports nine multi-managed registered mutual funds. These funds hold approximately $5 billion in assets under management. As of June 30, 2025, Northern Trust reported assets under custody/administration of $18.1 trillion and assets under management of $1.7 trillion.

Strategic alliance with SS&C's Black Diamond Wealth Platform

The strategic alliance, announced February 13, 2025, positions SS&C's Black Diamond® Wealth Platform as the first to integrate Morningstar's new Direct Advisory Suite. This suite is the next phase of the Advisor Workstation, which serves over 175,000 advisors. The Black Diamond Wealth Platform supports approximately 2,700 wealth management firms. By August 2025, over 400 of those firms chose to transition from the retiring Morningstar Office platform to Black Diamond. Of those, nearly 100 firms completed implementation, with an additional 250 nearing completion. The transition pricing offers a fixed rate for five years.

Here are the transition metrics:

Collaborations to integrate data with leading Generative AI platforms

Morningstar, Inc. launched integrations allowing licensed users and firms entitlement-based access to its AI-ready data and research within Microsoft's AI tools. The initiative brings Morningstar's library covering open-end funds, ETFs, and stocks, alongside portfolio analytics, ratings, and proprietary methodologies, into Microsoft platforms. A connection to Microsoft 365 Copilot is expected soon. These integrations use the Morningstar Agent and the Morningstar Model Context Protocol (MCP) Server.

Planned acquisition of Center for Research in Security Prices (CRSP)

Morningstar, Inc. entered an agreement to acquire the Center for Research in Security Prices (CRSP) from the University of Chicago for $375 million. The transaction is slated to close in the fourth quarter of 2025. Upon closing, Morningstar will obtain the CRSP Market Indexes, which benchmark more than $3 trillion in U.S. equities. CRSP generates approximately $55 million in annual revenue. For context, Morningstar had approximately $352 billion in assets under management as of June 30, 2025.

The acquisition details are stark:

• Acquisition Price: $375 million
• CRSP Annual Revenue: Approximately $55 million
• CRSP Market Indexes Benchmark Value: More than $3 trillion
• Expected Closing: Q4 2025

Zoe Financial integrates Morningstar Indexes into its wealth platform

Zoe Financial is integrating Morningstar Indexes into the Zoe Wealth Platform, starting with Morningstar's Core US equity indexes. Zoe Financial completed a Series B funding round this year, bringing its total funding to $45 million. In a separate context, Zoe Financial leveraged a partnership with AdvizorPro to achieve 3x pipeline growth.

Morningstar, Inc. (MORN) - Canvas Business Model: Key Activities

You're looking at the core engine of Morningstar, Inc. as of late 2025. The key activities are all about generating, processing, and distributing high-quality investment intelligence. It's a data and research-heavy operation, which is why the numbers around those activities are so telling.

Proprietary investment research and ratings (Medalist, DBRS)

This is where the firm's intellectual capital is converted into tangible value. The Morningstar analysts publish research using proprietary methodology to assign ratings and risk scores, a process they've been refining since 1986. The Morningstar Medalist Rating is a key output here, especially as the firm focuses on complex areas like private markets, where CEO Kunal Kapoor introduced new ratings and coverage at the 2025 Morningstar Investment Conference to bring clarity to complexity. The Morningstar Credit segment, which includes DBRS, is showing significant financial traction.

Here's a look at the revenue performance for the segment that houses much of this credit rating activity:

For the broader DBRS entity, recurring revenue, which comes from surveillance, research, and transaction services, represented 46.6% of total DBRS revenue as of Q1 2024, showing a strong subscription component to this activity.

Developing and enhancing software platforms (PitchBook, Direct)

The software platforms are massive revenue drivers, built on the data collected and the research performed. Morningstar Direct Platform remains responsible for the biggest slice of revenue among the platforms.

• Morningstar Direct Platform Q3 2025 Revenue: $211.1 million.
• Morningstar Direct Platform Q3 2025 Growth: 6.3% year-over-year.
• Morningstar Direct Licenses (Q1 2025 end): 18,680.
• PitchBook Platform Q3 2025 Revenue: $166.5 million.
• PitchBook Licensed Users (Q3 2025 end): 113,453.

The PitchBook user count saw a sequential decline of 2.5% from Q2 2025 to Q3 2025, which management attributed to license rationalization with certain large customers. Still, the platform posted a reported revenue increase of 9.8% in Q3 2025.

Global data collection, validation, and maintenance

This is the foundational work that feeds the ratings and the platforms. Without clean, comprehensive data, the value proposition collapses. Higher revenue in Q2 2025 was primarily driven by Morningstar Data, supported by higher managed investment (fund) data revenue. This activity underpins the entire enterprise, ensuring the data flowing into Direct and PitchBook is current and accurate across global markets.

Leveraging AI to automate repetitive data tasks

Morningstar is actively integrating AI, as evidenced by CEO Kunal Kapoor noting execution on themes like using AI to transform client workflows in the Full-Year 2024 review. The firm's focus on AI is also reflected in the performance of its proprietary indexes; the Morningstar Global Artificial Intelligence Select Index rose nearly 18% in 2025 as of July 29, significantly outpacing the Morningstar US Market Index return of 8.9% for the same period. This suggests that the internal application of AI to research and data handling is part of a broader, high-growth strategic focus.

Investment management and model portfolio construction

Morningstar Investment Management LLC's assets under management (AUM) stood at $76.6 B as of March 28, 2025. Across all investment advisory subsidiaries, the total assets under management and advisement reached approximately US$369 billion as of September 30, 2025, spanning North America, Europe, Australia, and Asia. This activity relies heavily on the firm's global investment management team applying a disciplined process integrating proprietary research and leading investment techniques for asset allocation and portfolio construction. The Morningstar Retirement segment also saw AUMA increase by 12.6% to $297.8 billion in Q3 2025, primarily due to market gains.

For context on the overall scale of the business supporting these activities, Trailing Twelve Month (TTM) revenue as of September 30, 2025, was $2.4B.

Morningstar, Inc. (MORN) - Canvas Business Model: Key Resources

The Key Resources for Morningstar, Inc. are the assets that make its value propositions possible. These are primarily intangible assets built over decades, supported by a significant global workforce.

Proprietary Data Sets and AUMA Scale

The foundation of Morningstar, Inc. is its vast, proprietary data sets, which cover a broad spectrum of investment vehicles. This data fuels everything from retail research to institutional platforms. The scale of the assets analyzed through their investment management subsidiaries is a key indicator of the trust placed in their insights.

The firm operates through wholly-owned subsidiaries in 32 countries, expanding its global reach for data collection and service delivery.

Technology Platforms

Morningstar, Inc. relies heavily on its sophisticated technology platforms to deliver its data and analytics to professional clients. These platforms represent significant intellectual capital investment.

• PitchBook technology platform.
• Morningstar Direct technology platform, used by professional investment managers for data and analytics.

Credit Rating Franchise

The DBRS Morningstar credit rating agency franchise is a critical, specialized resource, providing a necessary diversity of opinion in the ratings space. It is recognized as one of the top four global credit rating agencies.

• DBRS Morningstar is the world's fourth-largest credit ratings agency.
• Global market share is between 2% and 3%.
• Rates more than 4,000 issuers and 60,000 securities worldwide.
• The agency is recognized by the European Central Bank (ECB) as an external credit assessment institution.

The acquisition of DBRS in 2019 for approximately $700 million solidified this key resource.

Intellectual Property

The methodologies underpinning the ratings and indexes are proprietary assets that create barriers to entry. These are constantly refined, as evidenced by the recent updates to the Medalist Rating methodology, which will go live globally in April 2026.

• Proprietary ratings methodologies, such as the Medalist Rating structure.
• Proprietary indexes used across various asset classes.

Human Capital

The intellectual effort required to maintain data quality, develop platforms, and conduct independent research is embodied by the global workforce. You need these people to keep the data fresh and the analysis relevant.

The global headcount stands at 11,064 employees as of June 2025, though the latest reported figure is 11,500 in December 2025.

Finance: draft 13-week cash view by Friday.

Morningstar, Inc. (MORN) - Canvas Business Model: Value Propositions

You're looking to understand the concrete value Morningstar, Inc. delivers to its customers; it's not just about the star rating you see on a fund, but the deep, recurring utility of its data platforms. The value propositions are grounded in providing essential, independent data and analytical frameworks across the entire investment lifecycle.

Independent, unbiased investment insights and research

This core value is what Morningstar, Inc. was founded on, aiming to give every investor the same quality of information as institutions. This commitment underpins the research used across all segments. For instance, in the US equity market analysis as of late 2025, Morningstar equity analysts cover over 700 stocks trading on US exchanges, using intrinsic valuations derived from discounted cash flow models to determine if the market is overvalued or undervalued. The firm operates across 32 countries, providing global reach to its independent perspective.

Comprehensive data on public and private markets (PitchBook)

Morningstar, Inc. provides deep coverage of the private markets through PitchBook, which tracks venture capital, private equity, and M&A. This platform is a high-margin revenue driver, with an estimated annual subscription cost of around ~$20K per year. While the platform saw some headwinds due to reduced deal activity, its core investor and advisor client segments remain strong. As of Q3 2025, the PitchBook Platform had 113,453 licensed users, though this saw a sequential decline of 2.5% from Q2 2025 due to license rationalization by large customers. PitchBook's adjusted operating margin was 30.0% in the fourth quarter of 2024.

Global credit ratings and analytics for debt securities

The Morningstar Credit segment, which includes Morningstar DBRS, provides opinions on credit risk for various obligations. This segment showed significant growth, reporting revenue of $91.1 million in Q3 2025, an 84.9% year-over-year jump in operating income to $28.1 million. The operating margin for this segment reached 30.8% in Q3 2025. For private credit, the growth in newly assigned credit ratings remained positive year-over-year as of Q3 2025, although the pace was slowing since mid-2025. Morningstar DBRS utilizes several rating scales, including the Long-Term Obligations Rating Scale and the Commercial Paper and Short-Term Debt Rating Scale.

ESG data and research via Sustainalytics

Morningstar Sustainalytics is a leading ESG data, research, and ratings firm that supports responsible investment strategies. The firm works with hundreds of the world's leading asset managers and pension funds who integrate ESG information into their processes. A global survey conducted by Morningstar Indexes and Morningstar Sustainalytics included over 500 asset owners across 11 countries, representing combined assets of approximately $19 trillion. The ESG Risk Ratings assess exposure and management of material ESG risks, offering an absolute measure of risk categorized into five severity levels.

Workflow efficiency tools for asset and wealth managers

The flagship Morningstar Direct Platform is a critical tool for institutional clients, generating $211.1 million in revenue in Q3 2025, representing 6.2% year-over-year growth. The platform's annual subscription is estimated to be around ~$15K per year. Furthermore, the company is enhancing its advisory offerings; for example, the Direct Advisory Suite was recently improved with data on 1,000 private funds. The overall Assets Under Management and Advisement (AUMA) across the firm was approximately $369 billion as of September 30, 2025.

Here is a snapshot of the key platform and segment performance as of late 2025 reporting periods:

The value delivered is also seen in the overall financial health supporting future product development. For example, the company generated $112.8 million in free cash flow in the fourth quarter of 2024. Also, management is focused on creating a common language to help investors navigate the convergence of public and private markets.

Finance: draft 13-week cash view by Friday.

Morningstar, Inc. (MORN) - Canvas Business Model: Customer Relationships

You're looking at how Morningstar, Inc. keeps its diverse client base engaged, from the biggest institutions to the individual investor reading articles online. The relationships are segmented by the level of service required, which is key to understanding their recurring revenue base.

Dedicated sales and high-touch service for institutional clients

For institutional clients, the relationship is built on high-touch service and dedicated sales efforts, especially for the private markets data products. These clients are generally looking for deep, specialized data sets and ongoing support. Morningstar, Inc. offers investment management services through its advisory subsidiaries, which managed approximately $369 billion in AUMA (Assets Under Management and Administration) as of September 30, 2025. The company employs 11,975 total employees as of late 2025, supporting this complex client service structure. The company operates through wholly-owned subsidiaries in 32 countries, indicating a broad global reach for these high-touch relationships.

• The firm's institutional client base includes asset managers, wealth managers, and institutional investors in public and private capital markets.
• Morningstar largely created its now-retiring Institutional Categories to serve its fund company board-consulting business, a use case that is no longer actively served as of October 31, 2025.
• The company is actively evaluating opportunities with AI start-ups and large language models, suggesting a focus on embedding data where institutional users are already working.

Subscription-based access for core platforms (Direct, PitchBook)

The backbone of Morningstar, Inc.'s institutional revenue comes from subscriptions to its core platforms, which are sold through license agreements. These platforms are designed to be essential to the investor workflow. The PitchBook platform, for instance, saw its licensed users increase by 7.6% compared to the prior-year period in Q2 2025. The Morningstar Direct Platform is a significant revenue driver, bringing in $211.1 million in revenue in Q3 2025, marking a 6.3% year-over-year growth. The annual revenue renewal rate for Morningstar Direct was approximately 101% in both 2024 and 2023, showing strong retention in that segment. The company's overall trailing twelve-month revenue as of September 30, 2025, was $2.4 billion.

Here's a quick look at the subscription platform performance for the second and third quarters of 2025:

The sequential decline in PitchBook users in Q3/25 to 113,453 was attributed by management to license rationalization for certain large customers, not necessarily a broad loss of engagement. Still, you have to watch that trend. The Direct Advisory Suite, a refreshed advisor solution, is expected to see revenue recognized in the second half of 2025 and 2026 as accounts upgrade, following a period where its predecessor was flat or slightly declining in H1 2025.

Self-service and freemium model for individual investors (Morningstar.com)

For individual investors, the relationship is often initiated through the self-service model on Morningstar.com, which is supported by advertising sales. Revenue from Morningstar.com (total wealth revenue less investment management revenue) increased 9% in Q2 2025 compared to the prior-year period. This increase was specifically driven by higher advertising sales for Morningstar.com. The company also offers investment products and tools powered by its research, which serve this segment, though the primary revenue driver here seems to be advertising.

• The company's overall Q3 2025 reported revenue was $617.4 million, an 8.4% year-over-year increase.
• The Medalist Rating system is being simplified globally in April 2026 to increase usability and transparency for individual investors.
• The new Medalist Rating will include a Price Score ranging from -2.5 to 2.5 to explicitly reflect fee impact.

Community and thought leadership via the Morningstar Investment Conference

The Morningstar Investment Conference (MIC) serves as a major touchpoint for community building and thought leadership, primarily targeting financial professionals. The 37th annual MIC took place on June 25-26, 2025, at Navy Pier in Chicago. Attendance is complimentary for financial advisers or professionals who make investment recommendations in a research or advisory capacity; product issuer representatives and fund managers must sponsor or purchase a ticket, and individual investors are not permitted to attend. The conference featured discussions with industry leaders, such as Apollo Global Management CEO Marc Rowan and BlackRock CIO Rick Rieder. The Morningstar Investment Conference India 2025 also featured high-profile speakers, including the Deputy Governor of the Reserve Bank of India and the Chairman of SEBI. Sponsorship packages are offered in four different pricing tiers, which is how Morningstar, Inc. monetizes this community engagement.

Finance: draft 13-week cash view by Friday.

Morningstar, Inc. (MORN) - Canvas Business Model: Channels

You're looking at how Morningstar, Inc. gets its essential data, research, and software into the hands of its diverse customer base. This is all about delivery, and for Morningstar, it's a mix of proprietary platforms, direct web access, and strategic partnerships. The channels are the arteries of the business, moving high-value data subscriptions and services to institutional and individual users.

The core institutional delivery mechanism is the subscription-based software suite. For example, the Morningstar Direct Platform is still the flagship, bringing in significant recurring revenue. In the third quarter of 2025, this platform alone contributed $211.1 million to consolidated revenue, showing a 6.3% year-over-year increase. This platform is designed to centralize tasks for portfolio managers, product developers, and researchers.

The private markets data platform, PitchBook Data, Inc., is another massive channel, contributing $166.5 million to consolidated revenue in the second quarter of 2025. By the third quarter of 2025, PitchBook's adjusted operating income reached $52.9 million, representing an adjusted operating margin of 31.3%, though licensed user counts saw sequential rationalization.

For broader reach and direct-to-consumer/advisor access, the web and mobile presence is key. The Morningstar.com website and its associated mobile apps serve individual investors and professionals. This consumer-facing research arm, while not the bulk of the revenue, is vital for brand presence; the site's annual revenue is noted as being >$1 billion. The global ranking for morningstar.com improved to 4,261 as of October 2025.

The Morningstar Advisor Workstation is a critical channel serving financial advisors, often bundled within the Data and Analytics segment alongside Morningstar Direct. While specific standalone revenue isn't always broken out, its importance is underscored by the company's focus on elevating advisor tools, including the transition away from Morningstar Office to the Direct Advisory Suite integrated with other platforms.

Finally, Morningstar relies heavily on indirect distribution through its network of partners. The customer group labeled Alliances and redistributors is essential for expanding reach by distributing Morningstar's data, research, and software through strategic agreements. This channel is responsible for little less than 30% of the Data revenue, as per your required data point.

Here's a quick look at the revenue contribution from some of the major platform channels based on the latest available quarterly data:

The delivery strategy is clearly weighted toward high-value institutional subscriptions, but the public-facing website remains a significant channel for brand visibility and direct investor engagement. You should watch the organic growth rates for Morningstar Direct, as they were reported at 6.2% in Q3 2025, which is a deceleration from prior periods, though still positive.

The distribution network also includes specific customer groups that rely on Morningstar's data feeds and research:

• Institutional investors in public and private capital markets.
• Financial advisors (via platforms like Morningstar Advisor Workstation).
• Asset managers and owners.
• Retirement plan providers and sponsors.
• Alliances and redistributors (accounting for little less than 30% of Data revenue).

The company is actively integrating its data across these channels, for instance, by launching new collaborations to integrate its data with generative AI platforms. Finance: draft the Q4 2025 channel performance forecast by next Tuesday.

Morningstar, Inc. (MORN) - Canvas Business Model: Customer Segments

You're looking at the core groups Morningstar, Inc. serves with its data, research, and technology solutions as of late 2025. The company explicitly structures its business around several distinct client types.

Asset Managers and Asset Owners

This segment heavily utilizes the Morningstar Direct Platform for market research, product positioning, and competitive analysis. Asset Managers are a core user base for Morningstar Data and Analytics, which was renamed Morningstar Direct Platform beginning with Q1 2025 reporting.

• Morningstar Direct Platform generated $211.1 million in revenue in Q3 2025.
• Morningstar Direct Platform revenue increased 6.2% year-over-year in Q3 2025.
• Morningstar Direct licenses totaled 18,761 as of the end of Q4 2024.

Financial Advisors and Wealth Managers

Financial Advisors and Wealth Managers use Morningstar's tools for manager research, model portfolio construction, and distribution. The PitchBook platform also reflects strength in its advisor client segments.

• PitchBook platform growth drivers reflected strength in its core investor and advisor client segments.
• Morningstar Wealth reported revenue of $64.3 million in Q2 2025.
• Morningstar Wealth reported an adjusted operating margin of 4.7% in Q2 2025.
• Reported assets under management and advisement (AUMA) for Morningstar Wealth increased to $66.8 billion as of Q2 2025.

Institutional Investors (debt and private capital markets)

Institutional clients, including those in private capital markets, rely on specialized offerings like Morningstar Credit and PitchBook. Morningstar Credit has shown significant growth.

PitchBook provides data covering venture capital, private equity, private credit, and bank loans.

Individual Investors (retail)

The retail segment accesses Morningstar's insights primarily through its media site and premium subscription products.

• The largest product based on engagement for individual investors is the investing media site Morningstar.com.
• Morningstar Investor (Morningstar Premium outside the US and Australia) is another key product for individuals.

Corporate Clients (M&A, business development)

Corporate clients, particularly those involved in M&A activity, utilize PitchBook data. However, softness was noted in this segment with smaller firms.

• PitchBook growth drivers reflected strength in core investor and advisor segments, which was partially offset by continued softness in the corporate client segment.
• The softness in the corporate client segment was especially noted with smaller firms with more limited use cases.

Morningstar, Inc. (MORN) - Canvas Business Model: Cost Structure

You're looking at the core expenses Morningstar, Inc. is managing as it pushes forward with its data and AI strategy. Honestly, the biggest, most consistent line item you'll see is the people cost; it's where the intelligence in their products comes from, but it's also the primary driver of expense growth.

High compensation costs are definitely the most significant factor impacting the cost structure. For the third quarter of 2025, operating expense was largely driven by an increase of $29.3 million in compensation costs compared to the prior-year period. This jump reflected higher salaries, benefits, and notably, higher bonus and stock-based compensation tied to strong results against targets. To be fair, this also included $4.4 million in commissions and retention payments that were excluded from adjusted operating income, specifically tied to the ongoing wind-down of Morningstar Office and the sunsetting of Morningstar Wealth's US Turnkey Asset Management Platform (US TAMP). This trend wasn't new; in the second quarter of 2025, compensation costs were up $16.7 million year-over-year, driven by the 2025 annual merit increase and higher stock-based compensation. You see the investment in talent directly impacting the bottom line.

The cost structure is also heavily weighted toward the digital backbone supporting Morningstar Direct Platform and PitchBook. While specific, isolated technology infrastructure and data center expenses for Q3 2025 aren't broken out in the same way as compensation, we see related impacts. For instance, in Q3 2025, Morningstar Direct Platform's adjusted margin fell partly due to increased depreciation from prior capitalized software costs for product enhancements. Back in Q3 2024, technology infrastructure costs, covering SaaS subscriptions and cloud computing, had already increased by $4.0 million year-over-year, showing this is a persistent, growing cost area.

Morningstar, Inc. is making significant investment in R&D for new AI-powered tools, which feeds into compensation and technology. The strategy explicitly focuses on leveraging advances in artificial intelligence across internal and external products. This is evidenced by the increased headcount in product development and technology within the PitchBook segment, which contributed to higher compensation costs there. The planned acquisition of the Center for Research in Security Prices (CRSP) is also a strategic investment intended to enhance data and index offerings, which will carry integration and ongoing operational costs.

You have to account for acquisition and divestiture-related expenses when analyzing the reported figures. The Q3 2025 operating expense report specifically notes that the reported figure excluded the impact of intangible amortization and M&A-related expenses, meaning the underlying operational costs are higher than what the reported expense might suggest. On the divestiture side, organic revenue growth metrics for segments like Morningstar Credit exclude revenue from DealX, which was acquired in the first quarter of 2025. Looking back to provide context, the prior year's Q3 operating expense included $6.0 million related to the DBRS, Inc. SEC settlement and $1.1 million in severance costs from reorganizations.

Finally, Sales and marketing (S&M) is a key cost to drive platform adoption, especially for PitchBook and Morningstar Direct. For the third quarter of 2025, S&M expenses totaled $115.5 million, an increase of 7.0% from the $107.9 million reported in Q3 2024. Also, higher marketing expenses, including costs for campaign tracking and data management, were cited as a factor in the adjusted operating margin decline for Morningstar Retirement in Q2 2025.

Here's a quick math summary of the key quantifiable cost drivers we see in the recent reports:

• Compensation Cost Increase (Q3 2025 vs. prior year): $29.3 million
• Q3 2025 S&M Expense: $115.5 million
• Q3 2024 S&M Expense: $107.9 million
• Q3 2024 Tech Infrastructure Cost Increase (Y/Y): $4.0 million
• Q3 2024 SEC Settlement Expense: $6.0 million
• Q3 2024 Severance Expense: $1.1 million
• Q3 2025 Wind-down/Retention Payments (Excluded from Adj. OI): $4.4 million

To map these costs against the revenue drivers, consider this breakdown of Q3 2025 operating expenses and related items:

What this estimate hides is the ongoing capital expenditure required for product development, which is capitalized and then amortized, showing up later as depreciation, like the noted increase in Q3 2025 for Morningstar Direct Platform. Finance: draft 13-week cash view by Friday.

Morningstar, Inc. (MORN) - Canvas Business Model: Revenue Streams

You're looking at how Morningstar, Inc. actually brings in the cash, and it's heavily weighted toward recurring, high-margin subscriptions. Honestly, this is the engine of the whole operation, providing that steady stream of revenue that analysts like me really focus on for valuation stability.

The core of the revenue comes from those institutional platforms. For instance, the Morningstar Direct platform pulled in $211.1 million in revenue for the third quarter of 2025. That was a 6.3% increase year-over-year for that segment. Also contributing significantly is PitchBook, which is a key player in the private capital markets data space. In the second quarter of 2025, PitchBook subscription revenue hit $166.5 million, showing a reported revenue increase of 9.8% over the prior year period.

Here's a quick look at how those major subscription streams stack up based on the latest reported figures:

The credit ratings business, operating under DBRS Morningstar, is another distinct revenue source. While the prompt specifies credit ratings fees, the closest available segment data is the total revenue for Morningstar Credit, which was $85.0 million in Q2 2025. By Q3 2025, that segment showed standout performance, with revenue jumping to $91.1 million, a 28.5% reported increase year-over-year, driven by a robust issuance market.

Then you have the Asset Management side, which is monetized through asset-based fees. As of the second quarter of 2025, the Assets Under Management and Advisement (AUMA) across the relevant advisory subsidiaries was reported at approximately $352 billion. For the purpose of this canvas, we'll use the figure of $369 billion for the Investment Management AUMA, which is consistent with the sum of the Morningstar Wealth ($70.8 billion in Q3 2025) and Morningstar Retirement ($297.8 billion in Q3 2025) AUMAs found in the Q3 results.

Finally, there are the more variable streams, which you need to keep an eye on for cyclical shifts. These include advertising and data licensing revenue, which aren't always broken out as a single line item in the same way as the major platforms.

• Advertising sales for Morningstar.com showed higher activity in Q3 2025.
• Investment data within Morningstar Data is monetized through customer subscriptions, though the exact split isn't always public.
• PitchBook is increasingly selling data feeds, separate from its core platform licenses.

If onboarding for new enterprise clients takes 14+ days, churn risk rises, especially when deal activity slows, which directly impacts the PitchBook subscription growth rate.