MOODYS CORP /DE/MCO
MOODYS CORP /DE/ Revenue Disclosure
REVENUES
Amortization of costs to fulfill customer contracts is included within operating expenses in the consolidated statements of operations.
Revenue by Category
The following table presents the Company’s revenues disaggregated by LOB:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| MA: | |||||||||||||||||
| Decision Solutions (DS) | |||||||||||||||||
| Banking | $ | 569 | $ | 551 | $ | 521 | |||||||||||
| Insurance | 685 | 598 | 550 | ||||||||||||||
| KYC | 438 | 367 | 312 | ||||||||||||||
| Total DS | 1,692 | 1,516 | 1,383 | ||||||||||||||
| Research and Insights (R&I) | 995 | 926 | 884 | ||||||||||||||
| Data and Information (D&I) | 912 | 853 | 789 | ||||||||||||||
| Total external revenue | 3,599 | 3,295 | 3,056 | ||||||||||||||
| Intersegment revenue | 12 | 13 | 13 | ||||||||||||||
| Total MA | 3,611 | 3,308 | 3,069 | ||||||||||||||
| MIS: | |||||||||||||||||
| Corporate finance (CFG) | |||||||||||||||||
| Investment-grade | 573 | 488 | 335 | ||||||||||||||
| High-yield | 324 | 285 | 150 | ||||||||||||||
| Bank loans | 503 | 527 | 292 | ||||||||||||||
Other accounts (1) | 732 | 650 | 627 | ||||||||||||||
| Total CFG | 2,132 | 1,950 | 1,404 | ||||||||||||||
| Structured finance (SFG) | |||||||||||||||||
| Asset-backed securities | 142 | 130 | 121 | ||||||||||||||
| RMBS | 111 | 98 | 92 | ||||||||||||||
| CMBS | 99 | 94 | 60 | ||||||||||||||
| Structured credit | 202 | 193 | 129 | ||||||||||||||
| Other accounts (SFG) | 4 | 3 | 3 | ||||||||||||||
| Total SFG | 558 | 518 | 405 | ||||||||||||||
| Financial institutions (FIG) | |||||||||||||||||
| Banking | 500 | 450 | 378 | ||||||||||||||
| Insurance | 186 | 214 | 123 | ||||||||||||||
| Managed investments | 59 | 49 | 32 | ||||||||||||||
| Other accounts (FIG) | 14 | 14 | 12 | ||||||||||||||
| Total FIG | 759 | 727 | 545 | ||||||||||||||
| Public, project and infrastructure finance (PPIF) | |||||||||||||||||
| Public finance / sovereign | 275 | 240 | 205 | ||||||||||||||
| Project and infrastructure | 360 | 324 | 271 | ||||||||||||||
| Total PPIF | 635 | 564 | 476 | ||||||||||||||
| Total ratings revenue | 4,084 | 3,759 | 2,830 | ||||||||||||||
| MIS Other | 35 | 34 | 30 | ||||||||||||||
| Total external revenue | 4,119 | 3,793 | 2,860 | ||||||||||||||
| Intersegment royalty | 198 | 193 | 186 | ||||||||||||||
| Total MIS | 4,317 | 3,986 | 3,046 | ||||||||||||||
| Eliminations | (210) | (206) | (199) | ||||||||||||||
| Total MCO | $ | 7,718 | $ | 7,088 | $ | 5,916 | |||||||||||
(1)Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue.
The following table presents the Company’s revenues disaggregated by LOB and geographic area:
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||||||||||||||||||||||||||||
| MA: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Decision Solutions | $ | 674 | $ | 1,018 | $ | 1,692 | $ | 570 | $ | 946 | $ | 1,516 | $ | 550 | $ | 833 | $ | 1,383 | |||||||||||||||||||||||||||||||||||
| Research and Insights | 547 | 448 | 995 | 514 | 412 | 926 | 490 | 394 | 884 | ||||||||||||||||||||||||||||||||||||||||||||
| Data and Information | 327 | 585 | 912 | 306 | 547 | 853 | 281 | 508 | 789 | ||||||||||||||||||||||||||||||||||||||||||||
| Total MA | 1,548 | 2,051 | 3,599 | 1,390 | 1,905 | 3,295 | 1,321 | 1,735 | 3,056 | ||||||||||||||||||||||||||||||||||||||||||||
| MIS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate finance | 1,427 | 705 | 2,132 | 1,333 | 617 | 1,950 | 952 | 452 | 1,404 | ||||||||||||||||||||||||||||||||||||||||||||
| Structured finance | 396 | 162 | 558 | 368 | 150 | 518 | 252 | 153 | 405 | ||||||||||||||||||||||||||||||||||||||||||||
| Financial institutions | 384 | 375 | 759 | 386 | 341 | 727 | 253 | 292 | 545 | ||||||||||||||||||||||||||||||||||||||||||||
| Public, project and infrastructure finance | 416 | 219 | 635 | 359 | 205 | 564 | 292 | 184 | 476 | ||||||||||||||||||||||||||||||||||||||||||||
| Total ratings revenue | 2,623 | 1,461 | 4,084 | 2,446 | 1,313 | 3,759 | 1,749 | 1,081 | 2,830 | ||||||||||||||||||||||||||||||||||||||||||||
| MIS Other | — | 35 | 35 | — | 34 | 34 | 1 | 29 | 30 | ||||||||||||||||||||||||||||||||||||||||||||
| Total MIS | 2,623 | 1,496 | 4,119 | 2,446 | 1,347 | 3,793 | 1,750 | 1,110 | 2,860 | ||||||||||||||||||||||||||||||||||||||||||||
| Total MCO | $ | 4,171 | $ | 3,547 | $ | 7,718 | $ | 3,836 | $ | 3,252 | $ | 7,088 | $ | 3,071 | $ | 2,845 | $ | 5,916 | |||||||||||||||||||||||||||||||||||
The following table presents the Company's reportable segment revenues disaggregated by segment and geographic region:
| Year Ended December 31, | ||||||||||||||||||||
2025 | 2024 | 2023 | ||||||||||||||||||
| MA: | ||||||||||||||||||||
| U.S. | $ | 1,548 | $ | 1,390 | $ | 1,321 | ||||||||||||||
| Non-U.S.: | ||||||||||||||||||||
| EMEA | 1,406 | 1,306 | 1,207 | |||||||||||||||||
| Asia-Pacific | 374 | 345 | 299 | |||||||||||||||||
| Americas | 271 | 254 | 229 | |||||||||||||||||
| Total Non-U.S. | 2,051 | 1,905 | 1,735 | |||||||||||||||||
| Total MA | 3,599 | 3,295 | 3,056 | |||||||||||||||||
| MIS: | ||||||||||||||||||||
| U.S. | 2,623 | 2,446 | 1,750 | |||||||||||||||||
| Non-U.S.: | ||||||||||||||||||||
| EMEA | 970 | 868 | 679 | |||||||||||||||||
| Asia-Pacific | 325 | 284 | 271 | |||||||||||||||||
| Americas | 201 | 195 | 160 | |||||||||||||||||
| Total Non-U.S. | 1,496 | 1,347 | 1,110 | |||||||||||||||||
| Total MIS | 4,119 | 3,793 | 2,860 | |||||||||||||||||
| Total MCO | $ | 7,718 | $ | 7,088 | $ | 5,916 | ||||||||||||||
The following table summarizes the split between transaction and recurring revenue:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Transaction | Recurring | Total | Transaction | Recurring | Total | Transaction | Recurring | Total | |||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking | $ | 93 | $ | 476 | $ | 569 | $ | 113 | $ | 438 | $ | 551 | $ | 126 | $ | 395 | $ | 521 | |||||||||||||||||||||||||||||||||||
| 16 | % | 84 | % | 100 | % | 21 | % | 79 | % | 100 | % | 24 | % | 76 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
Insurance | $ | 21 | $ | 664 | $ | 685 | $ | 26 | $ | 572 | $ | 598 | $ | 47 | $ | 503 | $ | 550 | |||||||||||||||||||||||||||||||||||
| 3 | % | 97 | % | 100 | % | 4 | % | 96 | % | 100 | % | 9 | % | 91 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
KYC | $ | 3 | $ | 435 | $ | 438 | $ | 7 | $ | 360 | $ | 367 | $ | 5 | $ | 307 | $ | 312 | |||||||||||||||||||||||||||||||||||
| 1 | % | 99 | % | 100 | % | 2 | % | 98 | % | 100 | % | 2 | % | 98 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
Total Decision Solutions | $ | 117 | $ | 1,575 | $ | 1,692 | $ | 146 | $ | 1,370 | $ | 1,516 | $ | 178 | $ | 1,205 | $ | 1,383 | |||||||||||||||||||||||||||||||||||
| 7 | % | 93 | % | 100 | % | 10 | % | 90 | % | 100 | % | 13 | % | 87 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Research and Insights | $ | 12 | $ | 983 | $ | 995 | $ | 12 | $ | 914 | $ | 926 | $ | 14 | $ | 870 | $ | 884 | |||||||||||||||||||||||||||||||||||
| 1 | % | 99 | % | 100 | % | 1 | % | 99 | % | 100 | % | 2 | % | 98 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Data and Information | $ | 8 | $ | 904 | $ | 912 | $ | 12 | $ | 841 | $ | 853 | $ | 7 | $ | 782 | $ | 789 | |||||||||||||||||||||||||||||||||||
| 1 | % | 99 | % | 100 | % | 1 | % | 99 | % | 100 | % | 1 | % | 99 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
Total MA (1) | $ | 137 | $ | 3,462 | $ | 3,599 | $ | 170 | $ | 3,125 | $ | 3,295 | $ | 199 | $ | 2,857 | $ | 3,056 | |||||||||||||||||||||||||||||||||||
| 4 | % | 96 | % | 100 | % | 5 | % | 95 | % | 100 | % | 7 | % | 93 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Corporate Finance | $ | 1,559 | $ | 573 | $ | 2,132 | $ | 1,415 | $ | 535 | $ | 1,950 | $ | 887 | $ | 517 | $ | 1,404 | |||||||||||||||||||||||||||||||||||
| 73 | % | 27 | % | 100 | % | 73 | % | 27 | % | 100 | % | 63 | % | 37 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Structured Finance | $ | 315 | $ | 243 | $ | 558 | $ | 292 | $ | 226 | $ | 518 | $ | 190 | $ | 215 | $ | 405 | |||||||||||||||||||||||||||||||||||
| 56 | % | 44 | % | 100 | % | 56 | % | 44 | % | 100 | % | 47 | % | 53 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Financial Institutions | $ | 422 | $ | 337 | $ | 759 | $ | 418 | $ | 309 | $ | 727 | $ | 254 | $ | 291 | $ | 545 | |||||||||||||||||||||||||||||||||||
| 56 | % | 44 | % | 100 | % | 57 | % | 43 | % | 100 | % | 47 | % | 53 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Public, Project and Infrastructure Finance | $ | 438 | $ | 197 | $ | 635 | $ | 384 | $ | 180 | $ | 564 | $ | 301 | $ | 175 | $ | 476 | |||||||||||||||||||||||||||||||||||
| 69 | % | 31 | % | 100 | % | 68 | % | 32 | % | 100 | % | 63 | % | 37 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| MIS Other | $ | 7 | $ | 28 | $ | 35 | $ | 8 | $ | 26 | $ | 34 | $ | 6 | $ | 24 | $ | 30 | |||||||||||||||||||||||||||||||||||
| 20 | % | 80 | % | 100 | % | 24 | % | 76 | % | 100 | % | 20 | % | 80 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Total MIS | $ | 2,741 | $ | 1,378 | $ | 4,119 | $ | 2,517 | $ | 1,276 | $ | 3,793 | $ | 1,638 | $ | 1,222 | $ | 2,860 | |||||||||||||||||||||||||||||||||||
| 67 | % | 33 | % | 100 | % | 66 | % | 34 | % | 100 | % | 57 | % | 43 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Total Moody’s Corporation | $ | 2,878 | $ | 4,840 | $ | 7,718 | $ | 2,687 | $ | 4,401 | $ | 7,088 | $ | 1,837 | $ | 4,079 | $ | 5,916 | |||||||||||||||||||||||||||||||||||
| 37 | % | 63 | % | 100 | % | 38 | % | 62 | % | 100 | % | 31 | % | 69 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
(1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under GAAP.
The following table presents the timing of revenue recognition:
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MA | MIS | Total | MA | MIS | Total | MA | MIS | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue recognized at a point in time | $ | 100 | $ | 2,741 | $ | 2,841 | $ | 101 | $ | 2,517 | $ | 2,618 | $ | 102 | $ | 1,638 | $ | 1,740 | ||||||||||||||||||||||||||||||||||||||
| Revenue recognized over time | 3,499 | 1,378 | 4,877 | 3,194 | 1,276 | 4,470 | 2,954 | 1,222 | 4,176 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 3,599 | $ | 4,119 | $ | 7,718 | $ | 3,295 | $ | 3,793 | $ | 7,088 | $ | 3,056 | $ | 2,860 | $ | 5,916 | ||||||||||||||||||||||||||||||||||||||
Unbilled Receivables, Deferred Revenue and Remaining Performance Obligations
Unbilled receivables
For certain MA arrangements, the timing of when the Company has the unconditional right to consideration and recognizes revenue occurs prior to invoicing the customer. In addition, certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services, requiring revenue to be accrued as an unbilled receivable as such services are provided.
The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at December 31, 2025 and December 31, 2024:
As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||
| MA | MIS | MA | MIS | ||||||||||||||||||||
| Unbilled Receivables | $ | 106 | $ | 500 | $ | 122 | $ | 426 | |||||||||||||||
Deferred revenue
The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue related to that contract is recognized. This deferred revenue is relieved when the Company satisfies the related performance obligation and revenue is recognized.
Significant changes in the deferred revenue balances during the year ended December 31, 2025 are as follows:
| Year Ended December 31, 2025 | |||||||||||||||||
| MA | MIS | Total | |||||||||||||||
Balance at December 31, 2024 | $ | 1,243 | $ | 268 | $ | 1,511 | |||||||||||
| Changes in deferred revenue | |||||||||||||||||
| Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (1,152) | (220) | (1,372) | ||||||||||||||
| Increases due to amounts billable excluding amounts recognized as revenue during the period | 1,290 | 212 | 1,502 | ||||||||||||||
Reclassification to liabilities held-for-sale (1) | (36) | $ | — | (36) | |||||||||||||
| Increases due to acquisitions during the period | 15 | 15 | |||||||||||||||
Decreases due to divestiture during the period (2) | (26) | $ | — | (26) | |||||||||||||
| Effect of exchange rate changes | 34 | 10 | 44 | ||||||||||||||
| Total changes in deferred revenue | 125 | 2 | 127 | ||||||||||||||
Balance at December 31, 2025 | $ | 1,368 | $ | 270 | $ | 1,638 | |||||||||||
| Deferred revenue - current | $ | 1,366 | $ | 216 | $ | 1,582 | |||||||||||
| Deferred revenue - non-current | $ | 2 | $ | 54 | $ | 56 | |||||||||||
(1) The 2025 reclassification to liabilities held-for-sale for the MA segment in the table above relates to the planned divestiture of the MA Regulatory Solutions business, more fully discussed in Note 11.
(2) The 2025 divestiture of a business for the MA segment in the table above relates to the divestiture of the MA Learning Solutions Business, more fully discussed in Note 22.
Significant changes in the deferred revenue balances during the year ended December 31, 2024 are as follows:
| Year Ended December 31, 2024 | |||||||||||||||||
| MA | MIS | Total | |||||||||||||||
Balance at December 31, 2023 | $ | 1,111 | $ | 270 | $ | 1,381 | |||||||||||
| Changes in deferred revenue | |||||||||||||||||
| Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (1,044) | (209) | (1,253) | ||||||||||||||
| Increases due to amounts billable excluding amounts recognized as revenue during the period | 1,200 | 211 | 1,411 | ||||||||||||||
| Increases due to acquisitions during the period | 9 | — | 9 | ||||||||||||||
| Effect of exchange rate changes | (33) | (4) | (37) | ||||||||||||||
| Total changes in deferred revenue | 132 | (2) | 130 | ||||||||||||||
Balance at December 31, 2024 | $ | 1,243 | $ | 268 | $ | 1,511 | |||||||||||
Deferred revenue - current | $ | 1,243 | $ | 211 | $ | 1,454 | |||||||||||
Deferred revenue - non-current | $ | — | $ | 57 | $ | 57 | |||||||||||
Significant changes in the deferred revenue balances during the year ended December 31, 2023 are as follows:
| Year Ended December 31, 2023 | |||||||||||||||||
| MA | MIS | Total | |||||||||||||||
Balance at December 31, 2022 | $ | 1,055 | $ | 278 | $ | 1,333 | |||||||||||
| Changes in deferred revenue | |||||||||||||||||
| Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (980) | (211) | (1,191) | ||||||||||||||
| Increases due to amounts billable excluding amounts recognized as revenue during the period | 1,015 | 200 | 1,215 | ||||||||||||||
| Effect of exchange rate changes | 21 | 3 | 24 | ||||||||||||||
| Total changes in deferred revenue | 56 | (8) | 48 | ||||||||||||||
Balance at December 31, 2023 | $ | 1,111 | $ | 270 | $ | 1,381 | |||||||||||
| Deferred revenue—current | $ | 1,109 | $ | 207 | $ | 1,316 | |||||||||||
Deferred revenue—non-current | $ | 2 | $ | 63 | $ | 65 | |||||||||||
For the MA segment, for all periods presented, the increase in deferred revenue was primarily due to organic growth. For the MIS segment, the change in deferred revenue was not significant for all periods presented.
Remaining performance obligations
Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the consolidated balance sheet as of December 31, 2025 as well as amounts not yet invoiced to customers as of December 31, 2025, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.8 billion. The Company expects to recognize into revenue approximately 55% of this balance within one year, approximately 25% of this balance between to two years and the remaining amount thereafter.
Remaining performance obligations in the MIS segment largely reflect deferred revenue related to monitoring fees for certain structured finance products, primarily CMBS, where the issuers can elect to pay the monitoring fees for the life of the security in advance. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $85 million. The Company expects to recognize into revenue approximately 25% of this balance within one year, approximately 50% of this balance between one to five years and the remaining amount thereafter. With respect to the remaining performance obligations for the MIS segment, the Company has applied a practical expedient set forth in ASC Topic 606 permitting the omission of unsatisfied performance obligations relating to contracts with an original expected length of one year or less.
Costs to Obtain or Fulfill a Contract with a Customer
MA Costs to Obtain a Contract with a Customer
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Capitalized costs to obtain sales contracts | $ | 337 | $ | 294 | |||||||
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Amortization of capitalized costs to obtain sales contracts | $ | 117 | $ | 110 | $ | 102 | |||||||||||
Amortization of costs incurred to obtain customer contracts is included within SG&A expenses in the consolidated statements of operations. Costs incurred to obtain customer contracts are only in the MA segment.
MA and MIS Costs to Fulfill a Contract with a Customer
As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||
| MA | MIS | Total | MA | MIS | Total | ||||||||||||||||||||||||||||||
| Capitalized costs to fulfill sales contracts | $ | 44 | $ | 15 | $ | 59 | $ | 39 | $ | 12 | $ | 51 | |||||||||||||||||||||||
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| MA | MIS | Total | MA | MIS | Total | MA | MIS | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Amortization of capitalized costs to fulfill sales contracts | $ | 77 | $ | 51 | $ | 128 | $ | 77 | $ | 43 | $ | 120 | $ | 70 | $ | 44 | $ | 114 | |||||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 25, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.