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SS&C Technologies Holdings Inc (SSNC)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered steady growth and margin expansion: GAAP revenue rose 5.5% to $1.514B, GAAP EPS grew 35.5% to $0.84; adjusted revenue rose 5.5% to $1.515B and adjusted EPS increased 8.3% to $1.44 . Cash from operations increased 50.8% to $272.2M with 74% conversion, and net leverage declined to 2.74x as SS&C repurchased 2.4M shares ($206.9M) and repaid $155M of debt .
  • Results exceeded S&P Global consensus: revenue beat by ~$8.9M (+0.6%) and EPS beat by ~$0.04 (+2.6%) versus Q1 2025 consensus; 8 revenue ests, 9 EPS ests. Values retrieved from S&P Global.*
  • FY 2025 guidance nudged higher at the midpoint (revenue +$13M; EPS +$0.04) and Q2 2025 outlook introduced (revenue $1.489–$1.529B; EPS $1.35–$1.41), reflecting measured macro conservatism but confidence in a 2H ramp (Insignia lift-out, signed deals) .
  • Execution pillars: GlobeOp organic growth of 10.3% (private markets/retail alts), financial services recurring revenue +5.9%, and ongoing AI/automation leverage via Blue Prism (3,300 cumulative FTE benefit) underpin margins and operating discipline .

What Went Well and What Went Wrong

  • What Went Well

    • GlobeOp strength continued: 10.3% adjusted organic growth with positive trends in private markets and retail alternatives; management highlighted international momentum and large-scale alternative asset clients .
    • Strong cash generation and capital returns: $272.2M operating cash flow (+50.8% YoY), 74% cash conversion; $206.9M buybacks (2.4M shares) and $155M debt repayment, reducing net leverage to 2.74x .
    • AI/automation traction: “We are leveraging our investments… As we begin to embed AI and Quantum technologies… SS&C is well positioned,” CEO Bill Stone; cumulative 3,300 FTE benefit from automation since early 2023 and “20 new AI agents” for unstructured content .

  • What Went Wrong

    • Macro conservatism and deal timing: Q2 organic growth guide set at 2.5% (midpoint) reflecting caution around decision-making and geopolitical uncertainty, with acknowledgement that tariffs could slow deals even if financial impact is limited .
    • FX headwind in the quarter: CFO cited an unfavorable ~$7M FX impact embedded in the revenue bridge for Q1 2025 .
    • Lumpy/non-linear contributions: Battea revenue cadence remains subject to case timing; management reiterated lumpiness and limited quarter-level visibility even with multi-year aggregates identified .

Financial Results

Actual vs. S&P Global consensus (Q1 2025)

MetricConsensusActualSurprise
Revenue ($USD Millions)1,505.1*1,513.9 +8.8 (+0.6%)*
EPS (Adjusted/Primary) ($)1.404*1.44 +0.036 (+2.6%)*

Values retrieved from S&P Global.*

Quarterly performance vs prior quarter and prior year

MetricQ1 2024Q4 2024Q1 2025
GAAP Revenue ($USD Millions)1,435.0 1,529.7 1,513.9
Adjusted Revenue ($USD Millions)1,435.8 1,530.7 1,514.8
GAAP Diluted EPS ($)0.62 0.98 0.84
Adjusted Diluted EPS ($)1.33 1.58 1.44
GAAP Operating Margin (%)23.2 23.4 23.6
Adjusted EBITDA ($USD Millions)556.8 599.1 591.9
Adjusted EBITDA Margin (%)38.8 39.1 39.1
Cash from Operations ($USD Millions)180.5 486.6 272.2

Revenue mix (YoY)

Revenue Type ($USD Millions)Q1 2024Q1 2025
Software-enabled services1,187.7 1,269.9
License, maintenance & related247.3 244.0
Total GAAP Revenue1,435.0 1,513.9
Adjusted Software-enabled services1,188.5 1,270.8
Adjusted License, maint. & related247.3 244.0
Total Adjusted Revenue1,435.8 1,514.8

Key operating/KPI highlights

KPIQ1 2025Prior References
Adjusted organic revenue growth (%)5.1 Q4 2024: 7.0
Financial services recurring rev. growth (%)5.9 Q4 2024: 7.4
Operating cash flow ($M)272.2 Q1 2024: 180.5
Cash conversion (%)74.3 —
Share repurchases2.4M shares; $206.9M Q4 2024: 4.9M; $365.7M
Net leverage (LTM basis)2.74x Q4 2024: 2.89x
Cash & equivalents ($M)515.0 12/31/24: 567.1
Gross debt ($M)6,892.8 12/31/24: 7,048.7

Guidance Changes

MetricPeriodPrevious Guidance (Feb 6, 2025)Current Guidance (Apr 24, 2025)Change
Adjusted Revenue ($M)FY 20256,085 – 6,245 6,118 – 6,238 Raised at midpoint (+$13M)
Adjusted Diluted EPS ($)FY 20255.64 – 5.96 5.68 – 6.00 Raised at midpoint (+$0.04)
Adjusted Net Income ($M)FY 20251,431 – 1,531 1,441 – 1,541 Raised
Interest Expense ($M)FY 2025408 – 418 406 – 416 Lowered
Cash from Ops ($M)FY 20251,448 – 1,548 1,458 – 1,558 Raised
CapEx (% revenue)FY 20254.1% – 4.5% 4.0% – 4.4% Slightly lowered
Diluted Shares (M)FY 2025253.7 – 256.7 253.7 – 256.7 Maintained
Effective Tax Rate (%)FY 202523 – 25 23 – 25 Maintained
Adjusted Revenue ($M)Q2 2025—1,489 – 1,529 New
Adjusted Diluted EPS ($)Q2 2025—1.35 – 1.41 New
Adjusted Net Income ($M)Q2 2025—343.4 – 359.4 New
Interest Expense ($M)Q2 2025—102 – 104 New
Diluted Shares (M)Q2 2025—254.0 – 255.0 New
Effective Tax Rate (%)Q2 2025—23 – 25 New

Management noted guidance embeds conservatism on FX/interest, tax ~24% (adjusted), 4.0–4.4% capex, and a stronger tilt to buybacks over debt reduction .

Earnings Call Themes & Trends

TopicQ3 2024 (Oct)Q4 2024 (Feb)Q1 2025 (Apr)Trend
AI/AutomationBlue Prism driving lower headcount; internal automation benefits; increased R&D and agentic AI ambitions Continued cost savings; tax rate reset aids adjusted EPS Launch of governance-first AI platform with trust layer; 20 new AI agents; 3,300 cumulative FTE benefit Expanding deployment and external positioning
Demand/MacroHealthy pipeline; cautious Q4 guide on tough comp Strong close rates; multiple businesses outperformed Q2 guide conservative (2.5% organic); macro/geopolitical caution incl. tariffs impact on deal timing Cautious near-term; confident 2H ramp
Alternatives/GlobeOpStrong alt AUM; broad platform exposure GlobeOp wins; private markets/credit strength GlobeOp +10.3% organic; international expansion (Middle East) Accelerating growth vector
Wealth & Investment TechBlack Diamond enhancements; license deals boosted growth WIT +6.8%; Genesis milestones WIT strength; Morningstar alliance expanding opportunity set Product breadth deepening
HealthcarePositioning DomaniRx; large deals pushed to Q4 Q4 healthcare above expectations; 2 large licenses Health “approximately flat” in Q1; long-term opportunity remains Stabilizing after strong Q4
RegionalGlobal lift-outs; Australia superannuation focus forming Insignia lift-out expected early 2H25 Insignia re-badge of ~1,400 in July; $35–$70M 2H25 rev contribution Australia momentum building
JV/Restructuring——IFDS EU JV restructure with State Street; SS&C to operate rebranded TA entities; minimal rev impact expected Simplification; low P&L impact

Management Commentary

  • “SS&C reported adjusted revenues of $1,514.8 million and adjusted consolidated EBITDA of $591.9 million, both of which are first quarter record results… As we begin to embed AI and Quantum technologies… SS&C is well positioned” – Bill Stone, CEO .
  • “Demand for AI-driven automation remains high… we introduced a unified trust layer… designed to help regulated customers adopt advanced technologies with confidence” – Rahul Kanwar, President & COO .
  • “We are modestly raising our top line guidance by $13 million at the midpoint… We now expect 4.4% organic revenue growth at the midpoint [FY25]” – Brian Schell, CFO .

Q&A Highlights

  • Conservative near-term guide: Management inserted a “measure of conservatism” given macro/geopolitics; tariffs unlikely to hurt finances but could slow deal timing; pipeline remains healthy .
  • Insignia lift-out cadence: Re-badging ~1,400 staff July 1; 2H25 revenue contribution estimated at $35–$70M; primarily in GIDS .
  • IFDS EU JV restructure: Operational simplification with minimal revenue impact expected; potential modest cost reduction .
  • Intralinks outlook: Mid-single-digit growth assumed amid market turmoil; AI-enabled advances support resilience with upside if deal markets improve in 2H .
  • Battea revenue timing: Multi-year settlement visibility exists, but quarter timing remains uncertain; accounting prudence reflected near term .
  • FX sensitivity: ~21% of revenue non-USD; FX can add/subtract ~20 bps to growth per 1% move .

Estimates Context

  • Q1 2025 actuals versus S&P Global consensus: revenue $1,513.9M vs $1,505.1M*; EPS (adjusted/primary) $1.44 vs $1.404*; 8 revenue estimates, 9 EPS estimates. Values retrieved from S&P Global.*
  • Implications: modest top-line and EPS beats support FY midpoint raises; estimate revisions likely to track higher EPS midpoint ($+0.04) and slightly lower interest expense midpoint .

What Went Well and What Went Wrong – Supporting Data

  • Operating expense management aided margin expansion: GAAP operating margin +40 bps YoY to 23.6%; adjusted EBITDA margin +30 bps YoY to 39.1% .
  • Cash returns: dividend of $0.25/share in Q1 (paid March 17, 2025), complementing buybacks ; buybacks $206.9M in Q1 .
  • Revenue headwinds: license/maintenance modestly lower YoY ($244.0M vs $247.3M) ; FX headwind ~-$7M .

Financially Relevant Press Releases in/around Q1 2025

  • Acquisition: SS&C acquired FPS Trust (tuck-in to Innovest) to enhance benefit payment solutions (Feb 3) .
  • LPL Financial expanded relationship, adopting SS&C ALTSERVE to grow retail alts (Feb 24) .
  • State Street-SS&C to restructure EU IFDS JV, rebranding SS&C TA entities; completion expected 2H25 (Feb 25) .
  • Quarterly dividend maintained at $0.25 per share (Feb 14) .

Key Takeaways for Investors

  • Durable growth with improving quality: Recurring engine (FS recurring +5.9%) and GlobeOp momentum (10.3% organic) offset license variability and FX headwinds, underpinning sustained high-30s adjusted EBITDA margins .
  • Conservative near-term stance, constructive 2H setup: Q2 organic guide at 2.5% reflects caution, but Insignia ramp and signed deal conversions support a back-half acceleration .
  • AI advantage compounding: Blue Prism-led automation and governance-first AI platform enhance productivity and client adoption, supporting margins and cross-sell .
  • Capital deployment supportive: OCF strength, reduced leverage (2.74x), ongoing buybacks, and steady dividend provide flexibility for EPS compounding .
  • Modeling notes: Use adjusted EPS as primary profitability lens (non-GAAP tax 24% in Q1), monitor FX drift (21% non-USD revenue), and interest expense midpoint lowered for FY25 .
  • Catalysts: 2H25 Insignia revenue capture, private markets/globally driven GlobeOp wins, Intralinks demand recovery with M&A activity, and potential Battea settlement recognition .

Footnote: Values retrieved from S&P Global.*