Ss&C Technologies Holdings ((SSNC)) has held its Q3 earnings call. Read on for the main highlights of the call.
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SS&C Technologies Holdings’ recent earnings call painted a picture of robust financial health and strategic growth. The company reported record revenue and EBITDA for Q3 2025, driven by significant expansions in its GlobeOp and GIDS sectors. Despite minor setbacks such as business loss at State Street and underperformance in Intralinks, the overall sentiment was positive, underscoring a solid performance and promising growth outlook.
Record Adjusted Revenue and Growth
SS&C Technologies achieved record adjusted revenue of $1.569 billion, marking a 7% increase. The adjusted diluted earnings per share also saw a notable rise of 17.2% to $1.57. The company’s adjusted consolidated EBITDA reached a new high of $619 million, up 9.3%, with a margin of 39.5%, showcasing the company’s strong financial footing.
Strong Performance in GlobeOp and GIDS
The GlobeOp division reported a 9.6% revenue growth, while the GIDS business experienced a 9% increase. Notably, the GIDS business completed a significant lift out in Australia and announced another in the U.S., contributing to a 6.7% growth in financial services recurring revenue.
Increased Cash Flow and Shareholder Returns
SS&C Technologies reported a 22% increase in cash from operating activities, amounting to $1.101 billion for the first nine months. The company returned $305 million to shareholders through $240 million in share repurchases and $65.8 million in dividends. Additionally, the common stock dividend was increased by 8% to $1.08.
Strategic Acquisitions
The company announced the acquisition of Curo Fund Services in South Africa and completed the acquisition of Calastone. These strategic moves are set to enhance SS&C’s capabilities in money markets, ETFs, and digital assets, strengthening its global market position.
Impact of Lost Business at State Street
SS&C faced some revenue impact due to the loss of business at State Street, attributed to the in-sourcing of SPDR. While this presents a challenge, the overall impact on the company’s revenue is expected to be minimal.
Intralinks Performance
Despite early signs of improvement in the M&A pipeline, Intralinks has not yet realized significant revenue growth from this trend. This remains an area for potential development as market conditions evolve.
Forward-Looking Guidance
SS&C Technologies provided an optimistic outlook for the future, projecting Q4 2025 revenue between $1.59 billion and $1.63 billion, with an expected organic revenue growth of 4.5% at the midpoint. For the full year 2025, the company raised its revenue guidance to a range of $6.21 billion to $6.25 billion, reflecting a 4.6% growth at the midpoint. The adjusted diluted EPS guidance was also increased to between $6.02 and $6.08. The company remains focused on client service, cost management, and strategic investments, including its recent acquisitions.
In conclusion, SS&C Technologies Holdings’ Q3 2025 earnings call highlighted a period of strong financial performance and strategic growth initiatives. The company’s record revenue and EBITDA, coupled with strategic acquisitions and increased shareholder returns, underscore a positive outlook. Despite minor challenges, SS&C’s forward-looking guidance suggests continued growth and expansion in the coming quarters.