SS&C delivered a stronger than expected Q3, with management attributing performance to recurring growth in both its GlobeOp and Global Investor and Distribution Services businesses. CEO Bill Stone highlighted "strength across all alternative markets" and cited international wins and successful client lift-outs as key contributors. The company also saw increased operating cash flow and improved margins, supported by ongoing investment in automation and product depth, helping to offset softer results in some legacy segments. Notably, GlobeOp's growth with hedge fund clients and GIDS's expansion in Australia were singled out as drivers.
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SS&C (SSNC) Q3 CY2025 Highlights:
- Revenue: $1.57 billion vs analyst estimates of $1.55 billion (6.9% year-on-year growth, 1.3% beat)
- Adjusted EPS: $1.57 vs analyst estimates of $1.47 (6.5% beat)
- Adjusted EBITDA: $619.5 million vs analyst estimates of $610.5 million (39.5% margin, 1.5% beat)
- Revenue Guidance for Q4 CY2025 is $1.61 billion at the midpoint, roughly in line with what analysts were expecting
- Management raised its full-year Adjusted EPS guidance to $6.05 at the midpoint, a 1.9% increase
- Operating Margin: 23.3%, up from 22.2% in the same quarter last year
- Billings: $1.54 billion at quarter end, up 6.3% year on year
- Market Capitalization: $20.34 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From SS&C’s Q3 Earnings Call
- Daniel Perlin (RBC Capital Markets) asked about the organic growth contribution from Battea in Q4. President Rahul Kanwar clarified that Battea is expected to contribute more meaningfully next quarter and that the Q4 guide reflects a strong prior-year comparison.
- Jeffrey Schmitt (William Blair) questioned the rationale behind the Curo Fund Services acquisition and its inclusion in the GIDS segment. CEO Bill Stone explained that Curo’s focus on large insurers in Africa and its relatively small revenue fit well within GIDS’s strategy.
- Alexei Gogolev (JPMorgan) inquired about the impact of lost State Street SPDR business. Stone downplayed the revenue impact, noting that it was ancillary and that resources would be redeployed to higher-growth opportunities.
- Peter Heckmann (D.A. Davidson) probed the strategic fit and seasonality of Calastone. Stone emphasized the complementary nature of Calastone’s fund network and minimal seasonality impact on SS&C’s results.
- Patrick O'Shaughnessy (Raymond James) asked about the Intralinks pipeline and sustainability of healthcare segment growth. Kanwar noted early signs of pipeline improvement, while Stone described healthcare as lumpy but supported by marquee clients and a robust margin profile.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace and impact of Calastone and Curo Fund Services integration on cross-selling and international growth, (2) evidence of further margin expansion from automation and AI-powered solutions, and (3) momentum in organic growth from core segments like GlobeOp and GIDS. Execution on cost control and capturing value from recent acquisitions will be key signs of progress.
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