Summary
SS&C Technologies reported second quarter 2025 GAAP revenue of $1,536.8 million, up 5.9% from $1,451.5 million a year earlier. GAAP operating income rose 5.2% to $344.5 million from $327.6 million. Net income attributable to SS&C fell 5.0% to $180.8 million from $190.3 million, and diluted GAAP earnings per share slipped 4.0% to $0.72 from $0.75. Gross margin was 48.0%, down from 48.1%, and operating margin was 22.4%, down from 22.6%. For the first six months, GAAP revenue rose 5.7% to $3,050.7 million from $2,886.5 million, while net income attributable to SS&C rose 13.2% to $393.8 million from $347.9 million.
The non-GAAP picture was stronger. Record adjusted revenue was $1,537.8 million, up 5.9%, and adjusted diluted earnings per share was $1.45, up 9.8%. Adjusted consolidated EBITDA attributable to SS&C reached $600.4 million, up 7.4%, with an adjusted consolidated EBITDA margin of 39.0%. Adjusted organic revenue growth was 3.5%, and financial services recurring revenue growth was 3.9%. By business, SS&C GlobeOp organic growth was 7.3%, Wealth and Investment Technologies grew 4.0%, Intelligent Automation & Analytics grew 3.2%, and Healthcare grew 0.2%. Intralinks organic revenue fell 4.5%, which the presentation attributed to a decline in M&A deal count in the quarter.
Cash generation remained a focus. Operating cash flow for the six months ended June 30, 2025 was $645.1 million, up 14.1% from $565.4 million. For the second quarter alone, operating cash flow was $372.9 million, down from $384.9 million. Capital expenditures were $22.9 million in the quarter, up from $10.0 million a year earlier. The company repurchased 3.4 million shares for $269.0 million at an average price of $77.99 per share and paid $60.9 million in common stock dividends during the quarter. Net leverage stood at 2.72 times, and secured net leverage was 1.55 times. The company also said it paid down $35.0 million of debt in the quarter. The company said second quarter 2025 cash flow conversion was 101.9 percent. LTM consolidated EBITDA attributable to SS&C was $2,358.4 million.
Management announced a definitive agreement to acquire Calastone for approximately $1.03 billion, expected to close in the fourth quarter of 2025. Calastone is described as a global funds network with about 250 employees and roughly 4,500 network participants across 57 markets. The company expects the deal to add ETF servicing, digital asset and money market capabilities and to be EPS accretive within 12 months. Guidance for the third quarter of 2025 calls for adjusted revenue of $1,525.0 million to $1,565.0 million and adjusted diluted earnings per share attributable to SS&C of $1.44 to $1.50. For full year 2025, guidance calls for adjusted revenue of $6,143.0 million to $6,243.0 million and adjusted diluted earnings per share of $5.82 to $6.06. The guidance table also shows third quarter 2025 adjusted net income attributable to SS&C of $364.0 million to $380.0 million and full year 2025 adjusted net income of $1,462.0 million to $1,542.0 million. It lists third quarter 2025 diluted shares of 252.5 million to 253.5 million and full year 2025 diluted shares of 251.5 million to 254.5 million, along with third quarter and full year 2025 effective income tax rates of 23.0 percent to 25.0 percent. The company does not provide reconciliations of adjusted revenue and adjusted net income guidance to comparable GAAP measures.
Risks include ongoing macroeconomic conditions, changes in interest rates and inflation, capital markets volatility, global trade issues, geopolitical tensions, and foreign currency exchange rate fluctuations. The MD&A also points to customer consolidation, competition, cyber-attacks, IT system failures, evolving regulation, and substantial indebtedness. Integration and realization of benefits from acquisitions such as Calastone remain a risk. The effective tax rate can move with the mix of foreign and domestic income and with tax audit outcomes. The company also faces the possibility of covenant pressure if leverage rises, though it reported compliance with all financial and non-financial covenants as of June 30, 2025. Other named risks include the state of the financial services industry, client retention and attraction, competition, third-party providers, foreign operations, privacy concerns, intellectual property protection, product development delays, litigation, and changes in accounting standards.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.54B | $1.51B | +1.5% | $1.45B | +5.9% |
| Gross profit | $736.9M | $747.1M | -1.4% | $698.3M | +5.5% |
| Gross margin | 48.0% | 49.4% | -1.4 pp | 48.1% | -0.2 pp |
| Research & development | $128.1M | $129.1M | -0.8% | $128.7M | -0.5% |
| Sales & marketing | $152.4M | $152.3M | +0.1% | $142.6M | +6.9% |
| General & administrative | $111.9M | $107.8M | +3.8% | $99.4M | +12.6% |
| Total operating expenses | $392.4M | $389.2M | +0.8% | $370.7M | +5.9% |
| Operating income (loss) | $344.5M | $357.9M | -3.7% | $327.6M | +5.2% |
| Operating margin | 22.4% | 23.6% | -1.2 pp | 22.6% | -0.1 pp |
| Net income (loss) | $181.1M | $213.2M | -15.1% | $190.7M | -5.0% |
| Net margin | 11.8% | 14.1% | -2.3 pp | 13.1% | -1.4 pp |
| Diluted EPS | $0.72 | $0.84 | -$0.12 | $0.75 | -$0.03 |
Risks
MD&A discloses $6.855 billion of outstanding debt at June 30, 2025, including $3.32 billion Term B-8 Loans, $785.0 million Term A-9 Loans, $2.0 billion 5.5% Senior Notes, and $750.0 million 6.5% Senior Notes. A breach of the financial covenants, including the 5.25x consolidated net secured leverage ratio for the Term A-9 Loans, could result in an event of default and acceleration of amounts due, with a material adverse effect on results of operations, financial position and cash flows.
MD&A states ongoing macroeconomic conditions such as changes in interest rates and inflation, volatility in capital markets, global trade issues, geopolitical tensions, and foreign currency exchange rate fluctuations could have impacts that are uncertain and outside the company's control, and could ultimately result in material negative effects on the business and results of operations.
Net interest expense was $105.5 million and $210.7 million for the three and six months ended June 30, 2025, compared to $113.3 million and $229.3 million in the prior year periods, due primarily to lower average interest rates of 6.14% and 6.11% versus 6.80% and 6.83%. A reversal in rates would increase debt service costs given the substantial variable-rate borrowings.
MD&A states results include recent acquisitions, with Battea-Class Action Services, LLC acquired in September 2024 and FPS Trust Company acquired in February 2025. Acquisitions contributed $20.9 million of revenue in the quarter and $33.8 million year to date, and added $10.5 million and $19.9 million of cost of revenues, respectively, creating integration and purchase accounting execution risk.
The effective tax rate was 24.4% for the quarter and 21.3% year to date in 2025, compared to 6.7% and 18.8% in the prior year periods. The change was driven by prior-year releases of uncertain tax positions and current-year windfall benefits, and future changes in the composition of foreign and domestic income or OECD Pillar Two adoption could affect the periodic effective tax rate.
MD&A discloses $2,997.8 million of client funds obligations at June 30, 2025, including transfer agency client balances invested overnight, claims administration funds, and contractual obligations to remit funds for client pharmacy claims. Operational or regulatory failures in handling these client funds could create liability and liquidity risk.
MD&A states software-enabled services revenues, which were 82.5% of total revenues in the quarter and 83.2% year to date, fluctuate based on customer retention, total assets under management in client portfolios, and number of outsourced transactions. Loss of clients or lower asset values could reduce revenue.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Adjusted Consolidated EBITDA Margin
Adjusted Organic Revenue Growth
Financial Services Recurring Revenue Growth
Summary, forecast, risks and KPIs are extracted from SS&C Technologies Holdings Inc's SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.