SS&C Technologies Holdings, Inc. (SSNC) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The company reported strong financial performance, with record high revenue and EPS growth. The optimistic guidance for Q4 and 2025, coupled with strategic investments and a robust shareholder return plan, indicate positive sentiment. The Q&A session highlighted potential growth areas, although some management responses were vague. Overall, the positive aspects outweigh the concerns, and the strong financials and guidance are likely to boost the stock price in the short term.
Key Financial Performance
Adjusted Revenue (Q4 2025) $1.655 billion, up 8% year-over-year. The increase was driven by incremental revenue contributions from GIDS ($49 million), GlobeOp ($40 million), and acquisitions ($27 million), offset by a favorable impact from foreign exchange ($16 million).
Adjusted Diluted Earnings Per Share (Q4 2025) $1.69, an 18% increase year-over-year. This growth was attributed to higher revenues and operational efficiencies.
Adjusted Consolidated EBITDA (Q4 2025) $651 million, up 9% year-over-year. The margin was 39.3%, reflecting a 20 basis point expansion. Growth was driven by increased revenues and controlled expenses.
Adjusted Organic Revenue Growth (Q4 2025) 5.3%, driven by strong performance in GIDS (13.2% revenue growth) and GlobeOp (9.6% revenue growth).
Cash from Operating Activities (Full Year 2025) $1.745 billion, up 26% year-over-year. Growth was driven by increased earnings, improved working capital utilization, and lower cash taxes paid.
Operating Cash Flow Per Share (Full Year 2025) $6.89, up $1.42 from 2024. This reflects strong cash flow conversion above 100% for the past three years.
Share Repurchases (Full Year 2025) $1 billion allocated, with 12.3 million shares repurchased at an average price of $84.12. This reflects the company's strong cash flow and commitment to returning capital to shareholders.
Net Debt (End of Q4 2025) $7 billion, with a net leverage ratio of 2.8x. This reflects the company's financial position and debt management.
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Operating Highlights
AI-driven automation tools: SS&C is leveraging AI-driven automation tools across legal, sales, marketing, and accounting functions. The company believes AI will be a tailwind and is deploying these solutions rapidly to enhance efficiency, accuracy, and scalability.
Calastone acquisition: The company is seeing early progress with the Calastone acquisition, including strong engagement, collaboration opportunities, and strategic project launches with clients.
International growth: SS&C is focusing on international growth opportunities, particularly in Australia, leveraging recent superannuation mandates. This includes prospects with both local and global firms.
Revenue and earnings growth: Record adjusted revenue of $1.655 billion in Q4 2025, up 8%, and adjusted diluted EPS of $1.69, an 18% increase. Adjusted consolidated EBITDA reached $651 million, up 9%, with a margin of 39.3%.
Cash flow and shareholder returns: Cash from operating activities was $1.745 billion for 2025, up 26% year-over-year. The company returned $384 million to shareholders in Q4, including $319 million in share repurchases and $66 million in dividends.
AI and automation investments: SS&C is investing in AI and automation to strengthen its competitive position and support sustainable organic growth. The company is leveraging its large data sets, processing technology, and expertise in regulated environments.
Share repurchase strategy: The company allocated over $1 billion to share repurchases in 2025 and plans to prioritize repurchases absent high-quality accretive acquisitions.
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Risk or Challenges
Competitive Pressures: The release of AI-driven automation tools across various functions has led to a sell-off in software company shares. While SS&C believes it has a strong competitive position, the emergence of AI tools poses a potential risk to its market share and competitive edge.
Economic Uncertainties: The company assumes short-term interest rates will remain at current levels, but any unexpected changes in economic conditions or interest rates could impact financial performance.
Regulatory Challenges: The company operates in regulated environments, and its ability to deploy AI solutions at scale depends on compliance with global regulations. Any changes in regulatory requirements could pose challenges.
Supply Chain and Operational Risks: The company’s growth strategy includes international expansion and acquisitions, such as the Calastone acquisition. Integration risks and operational challenges in new markets could impact performance.
Strategic Execution Risks: The company’s reliance on long-term client partnerships and lift-outs for growth requires disciplined execution. Any failure in execution could affect recurring revenue and growth projections.
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Guidance & Outlook
Revenue Projections for Q1 2026: Revenue is expected to be in the range of $1.608 billion to $1.648 billion, with 5% organic growth at the midpoint.
Revenue Projections for Full Year 2026: Revenue is expected to be in the range of $6.654 billion to $6.14 billion, with 5.1% organic revenue growth at the midpoint.
Adjusted Net Income and EPS for Q1 2026: Adjusted net income is projected to be in the range of $404 million to $420 million, with adjusted diluted EPS in the range of $1.62 to $1.68.
Adjusted Net Income and EPS for Full Year 2026: Adjusted net income is projected to be in the range of $1.662 billion to $1.762 billion, with adjusted diluted EPS in the range of $6.70 to $7.02, reflecting approximately 12% growth at the midpoint.
EBITDA Margin Expansion: Targeted annual EBITDA expansion of 50 basis points, with a goal of achieving a 40% margin in Q4 2026.
Cash Flow Projections for 2026: Cash from operating activities is expected to be in the range of $1.713 billion to $1.813 billion, translating to over 100% cash conversion.
Capital Expenditures: Capital expenditures are projected to be 4.4% to 4.8% of revenues for 2026.
Interest Rates and Tax Rate Assumptions: Short-term interest rates are assumed to remain at current levels, with an effective tax rate of approximately 22.5% on an adjusted basis.
Share Buybacks and Debt Reduction: Share buybacks and debt reduction levels are expected to remain similar to 2025, subject to changes based on market conditions.
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Shareholder Return Plan
Dividend payout in Q4 2025: $66 million in common stock dividends
Dividend payout in 2025: Included in the total shareholder return plan
Share repurchase in Q4 2025: 3.7 million shares repurchased for $319 million at an average price of $85.81
Share repurchase in 2025: Over $1 billion allocated for share repurchases, purchasing 12.3 million shares at an average price of $84.12
Share repurchase priority: Repurchases will be prioritized absent high-quality accretive acquisitions
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Key Q&A
Q:What drove the weakness in the health care business during its seasonally strongest quarter?
A:The health care business is a long-term play, and quarter-to-quarter comparisons can be tough. Last year's fourth quarter had large license sales, while this year a notable multimillion-dollar license closed in early January 2026. The business faces headwinds but remains a $260-$270 million market with healthy EBITDA margins and cash flow contributions. New technology like AMISYS and OneHealth is being introduced, offering optimism for the future.
Q:What is the status of the Elevance relationship and their potential onboarding to DomaniRx?
A:DomaniRx is ready, but Elevance's long-standing relationships with other organizations and the departure of the original sponsor make it challenging. However, Elevance has made a significant investment, and there is still optimism for future collaboration.
Q:What drove the exceptional growth in assets under administration in the alternative fund administration business in Q4?
A:The growth was driven by strong organic growth and the acquisition of Curo Fund Services. Approximately $92 billion of the change was organic, with the remainder from the acquisition.
Q:How is the intelligent automation business, including Blue Prism, expected to perform in 2026?
A:The business is expected to approximate the overall corporate organic growth rate. It had a large license sale in Q4 of the previous year, which impacted comparisons. The business is central to AI innovation, including AI agents, large language models, orchestration platforms, and governance, and is expected to grow in 2026.
Q:What is the cadence of organic growth throughout 2026?
A:The business is becoming stronger and more predictable, with recurring revenue allowing for consistent growth throughout the year. There is potential for even better performance in Q3 and Q4.
Q:How is the company maintaining its competitive advantage against emerging AI fintechs?
A:The company emphasizes its scale, regulatory compliance, and financial strength. It has invested hundreds of millions in development while maintaining high margins. Its clients are conservative and regulated, which aligns with the company's controlled approach to AI and innovation.
Q:What are the medium-term growth prospects for the Wealth and Investment Management business?
A:The company is optimistic about its wealth management business, particularly the Black Diamond platform, which administers $3.5 trillion for 4,000 RIAs. Integration with Morningstar's wealth management platform has added 500-600 clients. The business is considered a crown jewel with significant expertise and capability.
Q:What is the current M&A environment, and how is the company positioned?
A:The company is constantly looking for opportunities and believes it is well-positioned for large acquisitions due to its strong earnings, cash flow, and leverage. It operates its own data centers and private cloud, providing security and scalability.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer regarding the Elevance relationship and their potential onboarding to DomaniRx. The response was vague, citing challenges like long-standing relationships and the departure of the original sponsor, without providing concrete details or timelines.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI boom
AI set
AI team
AI way
Australia superannuation
CEO sell
Colby conference
Full Instructions
GIDS acquisition
GIDS health
GIDS opportunity
GlobeOp opportunity
Hi Investor
Humana process
Insignia Humana
Instructions Head
Intralinks display
Lift out
Mandates Insignia
Prospects firm
Reconciliation measure
SSC strength
Technologies Full
ability solution
accounting function
activity cash
adoption
client relationship
conviction
engagement
expertise
mission
momentum
opportunity client
platform
record increase
share repurchase
software
SSNC Transcript
SS&C Technologies Holdings, Inc. (SSNC) Q4 2025 Earnings Call Transcript
Positive2-5
The company reported strong financial performance, with record high revenue and EPS growth. The optimistic guidance for Q4 and 2025, coupled with strategic investments and a robust shareholder return plan, indicate positive sentiment. The Q&A session highlighted potential growth areas, although some management responses were vague. Overall, the positive aspects outweigh the concerns, and the strong financials and guidance are likely to boost the stock price in the short term.
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SSNC Slides
SSNC Report
Frequently Asked Questions
Where does this earnings call transcript come from?
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Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
