FACTSET RESEARCH SYSTEMS INC 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements Page Management’s Statement of Responsibility for Financial Statements 50 Management’s Report on Internal Control Over Financial Reporting 50 Reports of Independent Registered Public Accounting Firm Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 52 Consolidated Financial Statements: Consolidated Statements of Income for the years ended August 31, 2025, 2024 and 2023 56 Consolidated Statements of Comprehensive Income for the years ended August 31, 2025, 2024 and 2023 57 Consolidated Balance Sheets at August 31, 2025 and 2024 58 Consolidated Statements of Cash Flows for the years ended August 3 1, 2025, 2024 and 2023 59 Consolidated Statements of Changes in Stockholders’ Equity for the years ended August 31, 2025, 2024 and 2023 61 Notes to the Consolidated Financial Statements 62 Financial Statement Schedule: Schedule II – Valuation and Qualifying Accounts 97 49 Table of Contents Management’s Statement of Responsibility for Financial Statements Our management prepares and is responsible for the fairness, integrity and objectivity of our Consolidated Financial Statements. The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and include amounts based on our management’s estimates and judgments. All financial information in this Report on Form 10-K has been presented on a basis consistent with the information included in the accompanying financial statements. Our policies and practices reflect corporate governance initiatives that are compliant with the listing requirements of the New York Stock Exchange, the NASDAQ Stock Market and the corporate governance requirements of the Sarbanes-Oxley Act of 2002. Our management, with oversight by our Board of Directors, has established and maintains a strong ethical climate so that our affairs are conducted to the highest standards of personal and corporate conduct. We maintain accounting systems, including internal accounting controls, designed to provide reasonable assurance of the reliability of financial records and the protection of assets. The concept of reasonable assurance is based on recognition that the cost of a system should not exceed the related benefits. The effectiveness of those systems depends primarily upon the careful selection of financial and other managers, clear delegation of authority and assignment of accountability, inculcation of high business ethics and conflict-of-interest standards, policies and procedures for coordinating the management of corporate resources, and the leadership and commitment of top management. In compliance with the Sarbanes-Oxley Act of 2002, we assessed our internal control over financial reporting as of August 31, 2025 and issued a report (see below). Management’s Report on Internal Control Over Financial Reporting As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2024, we had identified a material weakness in the design and operation of information technology (“IT”) general controls that support our revenues, accounts receivable, and deferred revenues processes which, in the aggregate, gave rise to a material weakness in internal control over financial reporting, which we are in the process of remediating. For fiscal 2025, our management (with the participation of the Chief Executive Officer and Chief Financial Officer) conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was not effective as of August 31, 2025, as a result of the material weakness in internal control over financial reporting described further below, which represents a continuation of a sub-set of the control deficiencies which gave rise to the initial material weakness previously identified. However, giving full consideration to the material weakness, the control deficiencies did not result in any identified misstatements, and the Company's management has concluded that our Consolidated Financial Statements present fairly, in all material respects, our financial position, results of operations and cash flows for the periods disclosed in conformity with GAAP. In accordance with the guidance issued by the Securities and Exchange Commission, companies are permitted to exclude acquisitions from their first assessment of internal control over financial reporting following the date of acquisition. Based on those guidelines, our management's assessment of the effectiveness of our internal control over financial reporting excluded Platform Group Limited ("Irwin") and Liquid Holdings, LLC ("LiquidityBook"), which we acquired in the first quarter and second quarter of fiscal 2025, respectively. Excluding goodwill and intangible assets, these acquisitions represented a combined 2% of our Total assets as of August 31, 2025 and 1% of our consolidated Revenues for fiscal year 2025. Refer to Note 5, Acquisitions , for additional information on these acquisitions. Inherent Limitations of Internal Controls over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting for FactSet. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements. 50 Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Management’s Report on Internal Control Over Financial Reporting While we have made significant progress remediating the control deficiencies identified during our year ended August 31, 2024, we continue to have certain deficiencies related to the IT general controls that support our revenues, accounts receivable, and deferred revenues processes which, in the aggregate, rise to a material weakness in internal control over financial reporting. The deficiencies related to program change management and user access in connection with segregation of duties and restriction to appropriate users. As a result, the automated controls and IT dependent manual business process controls that rely upon information from the affected financial applications were also deemed not effective. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis. While we have concluded that these control deficiencies did not result in any material misstatements in our Consolidated Financial Statements or disclosures in any of the fiscal years ended August 31, 2025, 2024 or 2023, they were not remediated as of August 31, 2025, and thus created a reasonable possibility that they could result in a material misstatement to the Consolidated Financial Statements that would not be prevented or detected on a timely basis. Accordingly, we determined that these control deficiencies constituted a material weakness. As a result of the identification of the material weakness, we performed further analysis and completed additional procedures intended to ensure our consolidated financial statements for the years ended August 31, 2025, 2024, and 2023 fairly present in all material respects the financial condition, results of operations and cash flows of the Company and have been prepared in accordance with GAAP. Based on these procedures and analysis, and notwithstanding the material weakness in our internal control over financial reporting, our management has concluded that our Consolidated Financial Statements present fairly, in all material respects, our financial position, results of operations and cash flows for the periods disclosed in conformity with GAAP. Ernst & Young LLP (PCAOB ID: 42), an independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting and has issued an adverse opinion on the effectiveness of our internal control over financial reporting as stated in their report on the subsequent page. 51 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of FactSet Research Systems Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of FactSet Research Systems Inc. (the Company) as of August 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended August 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at August 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended August 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of August 31, 2025 based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated October 22, 2025 expressed an adverse opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Measurement of income tax provision Description of the Matter As discussed in Note 2, Summary of Significant Accounting Policies, and Note 9, Income Taxes, of the Consolidated Financial Statements, the Company serves international markets and is subject to income taxes in the U.S. and various foreign jurisdictions, which affect the Company’s provision for income taxes. The income tax provision is an estimate based on management’s understanding of current enacted tax laws and tax rates of each tax jurisdiction and the use of subjective allocation methodologies to allocate taxable income to tax jurisdictions based upon the structure of the Company’s operations and customer arrangements. For the year-ended August 31, 2025 the Company recognized a consolidated provision for income taxes of $123.9 million with $45.6 million related to its U.S. operations and $78.3 million related to its Non-U.S. operations. Auditing management’s calculation of the provision for income taxes required complex audit judgement as the Company’s calculation of the provision for income taxes involved subjective estimation and evaluation of the application of tax laws, including the methods used to allocate taxable income and judgments used in determining uncertain tax positions. 52 Table of Contents How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over management’s calculation of its provision for income taxes. For example, we tested controls over management’s evaluation of the allocation methodologies and management’s review of the assumptions and data utilized in determining the allocation of income to applicable tax jurisdictions. Among other audit procedures performed, we evaluated the reasonableness of management’s allocation methodologies based on the Company’s structure, operations and current tax laws, recalculated income tax expense using management’s methodologies and agreed the data used in the calculations to the Company’s underlying books and records. We involved our tax professionals to evaluate the application of tax laws to management’s allocation methodologies and tax position, including the evaluation of third-party reports and advice obtained by the Company. We also performed a sensitivity analysis to assess the effect of changes in management’s allocation methodologies and assumptions. We have evaluated the Company’s income tax disclosures included in Note 9, Income Taxes , of the Consolidated Financial Statements in relation to these matters. Valuation of Acquired Software Technology Description of the Matter As disclosed in Note 5, Acquisitions , of the Consolidated Financial Statements, the Company completed its acquisition of Liquid Holdings, LLC for total consideration of $243.2 million and Platform Group Limited for total consideration of $120.2 million in 2025. The transactions were accounted for as business combinations. The considerations paid in the acquisitions were allocated to the acquired assets and liabilities assumed generally based on their fair values, with the excess of the purchase prices over those fair values allocated to goodwill. The acquired software technologies totaled $101.7 million combined. Auditing the valuation of the Company’s business combinations was especially challenging and complex due to the significant assumptions and measurement uncertainty involved in determining the fair value of the acquired assets and liabilities assumed, specifically related to the Company’s determination of the fair values of acquired software technologies. In particular, the fair value estimates were sensitive to changes in significant underlying assumptions such as the projected revenue growth rate. This significant assumption included forward-looking considerations and was based on expectations of future economic and market conditions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company’s accounting for acquisitions and the related fair value estimation process. Specifically, we tested controls over management’s review of the valuation of the acquired software technologies, including management’s review of the valuation models applied and the significant assumptions described above. We also tested management’s internal controls to develop the projected financial information used in the valuation models and validated that the data used in the valuation models was complete and accurate. To test the estimated fair value of the acquired software technologies, we performed audit procedures that included, among others, evaluating the Company’s valuation methodology and significant assumptions used by management, testing the completeness and accuracy of the underlying data supporting the significant assumptions described above, and performing sensitivity analyses of significant assumptions to evaluate the changes in the fair values of the acquired software technologies. We involved our valuation specialists to assist with our evaluation of the Company’s valuation methodology and significant assumptions used in the fair value estimates. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2013. Stamford, Connecticut October 22, 2025 53 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of FactSet Research Systems Inc. Opinion on Internal Control Over Financial Reporting We have audited FactSet Research Systems Inc.’s internal control over financial reporting as of August 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, FactSet Research Systems Inc. (the Company) has not maintained effective internal control over financial reporting as of August 31, 2025, based on the COSO criteria. As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Liquid Holdings, LLC and Platform Group Limited, which are included in the 2025 consolidated financial statements of the Company and which in aggregate, when excluding goodwill and intangible assets, constituted 2% of total assets as of August 31, 2025 and 1% of total revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of Liquid Holdings, LLC and Platform Group Limited. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management’s assessment. Management has identified a material weakness related to the design and operation of information technology (“IT”) general controls for certain financial applications that support the revenue, accounts receivable, and deferred revenue processes. Consequently, automated controls and IT dependent manual business process controls that rely upon information from the affected financial applications were also deemed ineffective. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of August 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended August 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a). This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2025 consolidated financial statements, and this report does not affect our report dated October 22, 2025, which expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 54 Table of Contents Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Stamford, Connecticut October 22, 2025 55 Table of Contents FactSet Research Systems Inc. Consolidated Statements of Income (in thousands, except per share data) For the years ended August 31, 2025 2024 2023 Revenues $ 2,321,748 $ 2,203,056 $ 2,085,508 Operating expenses Cost of services 1,097,782 1,011,945 973,225 Selling, general and administrative 475,663 489,812 483,076 Total operating expenses 1,573,445 1,501,757 1,456,301 Operating income 748,303 701,299 629,207 Other income (expense), net Interest income 6,533 14,447 12,809 Interest expense ( 56,324 ) ( 65,778 ) ( 66,319 ) Other income (expense), net 22,446 1,535 8,257 Total other income (expense), net ( 27,345 ) ( 49,796 ) ( 45,253 ) Income before income taxes 720,958 651,503 583,954 Provision for income taxes 123,918 114,377 115,781 Net income $ 597,040 $ 537,126 $ 468,173 Basic earnings per common share $ 15.74 $ 14.11 $ 12.26 Diluted earnings per common share $ 15.55 $ 13.91 $ 12.04 Basic weighted average common shares 37,924 38,059 38,194 Diluted weighted average common shares 38,385 38,618 38,898 The accompanying notes are an integral part of these Consolidated Financial Statements. 56 Table of Contents FactSet Research Systems Inc. Consolidated Statements of Comprehensive Income (in thousands) For the years ended August 31, 2025 2024 2023 Net income $ 597,040 $ 537,126 $ 468,173 Other comprehensive income (loss), net of tax Net unrealized gain (loss) on cash flow hedges (1) 300 ( 1,037 ) ( 269 ) Foreign currency translation adjustment gains (losses) 15,565 8,565 21,511 Other comprehensive income (loss) 15,865 7,528 21,242 Comprehensive income $ 612,905 $ 544,654 $ 489,415 (1) Presented net of a tax expense of $ 119 thousand, tax benefit of $ 369 thousand, and a tax benefit of $ 61 thousand for the years ended August 31, 2025, 2024 and 2023, respectively. The accompanying notes are an integral part of these Consolidated Financial Statements. 57 Table of Contents FactSet Research Systems Inc. Consolidated Balance Sheets (in thousands, except share data) August 31, 2025 2024 ASSETS Cash and cash equivalents $ 337,651 $ 422,979 Investments 17,445 69,619 Accounts receivable, net of reserves of $ 13,789 at August 31, 2025 and $ 14,581 at August 31, 2024 270,684 228,054 Prepaid taxes 33,600 55,103 Prepaid expenses and other current assets 70,379 60,093 Total current assets 729,759 835,848 Property, equipment and leasehold improvements, net 85,203 82,513 Goodwill 1,284,708 1,011,129 Intangible assets, net 1,916,102 1,844,141 Deferred tax assets 61,226 61,337 Lease right-of-use assets, net 121,776 130,494 Other assets 105,498 89,578 TOTAL ASSETS $ 4,304,272 $ 4,055,040 LIABILITIES Accounts payable and accrued expenses $ 135,262 $ 178,250 Current debt — 124,842 Current lease liabilities 33,145 31,073 Accrued compensation 130,596 93,279 Deferred revenues 167,852 159,761 Current taxes payable 13,041 40,391 Dividends payable 41,410 39,470 Total current liabilities 521,306 667,066 Long-term debt 1,368,260 1,241,131 Deferred tax liabilities 14,902 8,452 Deferred revenues, non-current 624 1,344 Taxes payable 45,095 40,452 Long-term lease liabilities 157,104 177,521 Other liabilities 10,568 6,614 TOTAL LIABILITIES $ 2,117,859 $ 2,142,580 Commitments and contingencies (see Note 12) STOCKHOLDERS’ EQUITY Preferred stock, $ 0.01 par value, 10,000,000 shares authorized, none issued $ — $ — Common stock, $ 0.01 par value, 150,000,000 shares authorized, 43,013,266 and 42,598,915 shares issued, 37,645,870 and 37,952,270 shares outstanding at August 31, 2025 and 2024, respectively 430 426 Additional paid-in capital 1,621,753 1,478,839 Treasury stock, at cost: 5,367,396 and 4,646,645 shares at August 31, 2025 and 2024, respectively ( 1,695,429 ) ( 1,375,696 ) Retained earnings 2,323,407 1,888,504 Accumulated other comprehensive loss ( 63,748 ) ( 79,613 ) TOTAL STOCKHOLDERS’ EQUITY $ 2,186,413 $ 1,912,460 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 4,304,272 $ 4,055,040 The accompanying notes are an integral part of these Consolidated Financial Statements. 58 Table of Contents FactSet Research Systems Inc. Consolidated Statements of Cash Flows (in thousands) Years ended August 31, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 597,040 $ 537,126 $ 468,173 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 157,691 125,187 105,384 Amortization of lease right-of-use assets 30,982 30,407 32,344 Stock-based compensation expense 61,229 63,501 62,038 Deferred income taxes ( 3,545 ) ( 32,020 ) ( 31,119 ) Gain on divestiture of a business ( 23,238 ) — — Other, net 11,867 14,511 38,010 Changes in assets and liabilities, net of effects of acquisitions Accounts receivable ( 42,540 ) 2,195 ( 40,103 ) Prepaid expenses and other assets 65 ( 29,874 ) 7,579 Accounts payable and accrued expenses ( 59,400 ) 55,347 8,393 Accrued compensation 35,666 ( 20,213 ) ( 3,431 ) Deferred revenues 2,249 4,939 ( 3,387 ) Taxes payable, net of prepaid taxes ( 1,161 ) ( 11,448 ) 41,396 Lease liabilities, net ( 40,645 ) ( 39,320 ) ( 39,704 ) Net cash provided by operating activities 726,260 700,338 645,573 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, equipment, leasehold improvements and capitalized internal-use software ( 108,806 ) ( 85,681 ) ( 60,786 ) Acquisition of businesses, net of cash and cash equivalents acquired ( 348,255 ) — ( 23,593 ) Purchases of investments ( 18,867 ) ( 58,636 ) ( 11,014 ) Proceeds from maturity or sale of investments 58,155 — — Proceeds from divestiture 25,000 — — Net cash provided by (used in) investing activities ( 392,773 ) ( 144,317 ) ( 95,393 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from debt 803,410 — — Repayments of debt ( 805,000 ) ( 250,000 ) ( 375,000 ) Dividend payments ( 159,973 ) ( 150,667 ) ( 138,601 ) Proceeds from employee stock plans 81,688 91,711 72,006 Repurchases of common stock ( 300,457 ) ( 235,235 ) ( 176,720 ) Other financing activities ( 27,489 ) ( 16,659 ) ( 13,709 ) Net cash provided by (used in) financing activities ( 407,821 ) ( 560,850 ) ( 632,024 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 3,050 2,364 4,015 Net increase (decrease) in cash, cash equivalents and restricted cash ( 71,284 ) ( 2,465 ) ( 77,829 ) Cash and cash equivalents at beginning of period 422,979 425,444 503,273 Cash, cash equivalents and restricted cash at end of period $ 351,695 $ 422,979 $ 425,444 Reconciliation of total cash, cash equivalents and restricted cash: Cash and cash equivalents $ 337,651 $ 422,979 $ 425,444 Restricted cash included in Prepaid expenses and other current assets 6,522 — — Restricted cash included in Other assets 7,522 — — Total cash, cash equivalents and restricted cash $ 351,695 $ 422,979 $ 425,444 59 Table of Contents Supplemental Disclosure of Cash Flow Information Cash paid during the year for interest $ 54,813 $ 65,920 $ 76,524 Cash paid during the year for income taxes, net of refunds $ 103,167 $ 157,015 $ 91,170 Supplemental Disclosure of Non-Cash Transactions Dividends declared, not paid $ 41,410 $ 39,470 $ 37,265 The accompanying notes are an integral part of these Consolidated Financial Statements. 60 Table of Contents FactSet Research Systems Inc. Consolidated Statements of Changes in Stockholders’ Equity (in thousands, except share data) Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity Shares Par Value Shares Amount Balance as of August 31, 2022 41,653,218 $ 417 $ 1,190,350 3,608,462 $ ( 930,715 ) $ 1,179,739 $ ( 108,383 ) $ 1,331,408 Net income — — — — — 468,173 — 468,173 Other comprehensive income (loss) — — — — — — 21,242 21,242 Common stock issued for employee stock plans 360,375 3 72,003 410 ( 166 ) — — 71,840 Vesting of restricted stock 83,035 1 ( 1 ) 32,034 ( 13,544 ) — — ( 13,544 ) Excise tax on share repurchases — — — — ( 932 ) — — ( 932 ) Repurchases of common stock — — — 430,350 ( 176,720 ) — — ( 176,720 ) Stock-based compensation expense — — 62,038 — — — — 62,038 Dividends declared — — — — — ( 142,816 ) — ( 142,816 ) Other — — ( 759 ) — — — — ( 759 ) Balance as of August 31, 2023 42,096,628 $ 421 $ 1,323,631 4,071,256 $ ( 1,122,077 ) $ 1,505,096 $ ( 87,141 ) $ 1,619,930 Net income — — — — — 537,126 — 537,126 Other comprehensive income (loss) — — — — — — 7,528 7,528 Common stock issued for employee stock plans 407,542 4 91,708 831 ( 376 ) — — 91,336 Vesting of restricted stock 94,745 1 ( 1 ) 36,758 ( 16,283 ) — — ( 16,283 ) Excise tax on share repurchases — — — — ( 1,725 ) — — ( 1,725 ) Repurchases of common stock — — — 537,800 ( 235,235 ) — — ( 235,235 ) Stock-based compensation expense — — 63,501 — — — — 63,501 Dividends declared — — — — — ( 153,718 ) — ( 153,718 ) Balance as of August 31, 2024 42,598,915 $ 426 $ 1,478,839 4,646,645 $ ( 1,375,696 ) $ 1,888,504 $ ( 79,613 ) $ 1,912,460 Net income — — — — — 597,040 — 597,040 Other comprehensive income (loss) — — — — — — 15,865 15,865 Common stock issued for employee stock plans 325,030 3 81,686 370 ( 170 ) — — 81,519 Vesting of restricted stock 89,321 1 ( 1 ) 35,421 ( 16,072 ) — — ( 16,072 ) Excise tax on share repurchases — — — — ( 3,034 ) — — ( 3,034 ) Repurchases of common stock — — — 684,960 ( 300,457 ) — — ( 300,457 ) Stock-based compensation expense — — 61,229 — — — — 61,229 Dividends declared — — — — — ( 162,137 ) — ( 162,137 ) Balance as of August 31, 2025 43,013,266 $ 430 $ 1,621,753 5,367,396 $ ( 1,695,429 ) $ 2,323,407 $ ( 63,748 ) $ 2,186,413 The accompanying notes are an integral part of these Consolidated Financial Statements. 61 Table of Contents NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FactSet Research Systems Inc. August 31, 2025 Page Note 1 Description of Business 62 Note 2 Summary of Significant Accounting Policies 63 Note 3 Revenue Recognition 70 Note 4 Fair Value Measures 71 Note 5 Acquisitions 73 Note 6 Property, Equipment and Leasehold Improvements 75 Note 7 Goodwill 75 Note 8 Intangible Assets 76 Note 9 Income Taxes 77 Note 1 0 Leases 80 Note 1 1 Debt 82 Note 1 2 Commitments and Contingencies 84 Note 1 3 Stockholders' Equity 86 Note 1 4 Earnings Per Share 87 Note 1 5 Stock-Based Compensation 88 Note 1 6 Employee Benefit Plans 91 Note 1 7 Segment Information 91 1. DESCRIPTION OF BUSINESS FactSet Research Systems Inc. and its wholly-owned subsidiaries ("we," "our," "us," the "Company" or "FactSet") is a global financial digital platform and enterprise solutions provider with open and flexible technologies that deliver financial intelligence to investment professionals worldwide. Our platform delivers expansive data, sophisticated analytics, and flexible, artificial intelligence ("AI")-powered technology used by global financial professionals to power their critical investment workflows. As of August 31, 2025, we had approximately 9,000 clients comprised of over 237,000 investment professionals, including institutional asset managers, bankers, wealth managers, asset owners, partners, hedge funds, corporate users, and private equity and venture capital professionals. Our revenues are primarily derived from subscriptions to our multi-asset class data and solutions powered by our connected data and technology platform. Our products and services include workstations, portfolio analytics and enterprise data solutions. We also offer managed services that operate as an extension of our clients' internal teams to support data, performance, risk and reporting workflows. We drive our business based on a detailed understanding of our clients’ workflows, which helps us to solve their most complex challenges. We provide financial data and market intelligence on securities, companies, industries and people to enable our clients to research investment ideas and analyze, monitor and manage their portfolios. Our solutions span the investment lifecycle of investment research, portfolio construction and analysis, trade execution, performance measurement, risk management and reporting. We provide open and flexible technology offerings, including a configurable desktop and mobile platform, comprehensive data feeds, cloud-based digital solutions, and application programming interfaces ("APIs"). AI is embedded across these offerings to enhance data discovery, automate routine workflows and improve the speed and accuracy of client insights. The CUSIP Global Services ("CGS") business supports security master files relied on by the investment industry for critical front, middle and back-office functions. All of our platforms and solutions are supported by our dedicated client service team. We operate our business through three reportable segments ("segments"): the Americas, EMEA and Asia Pacific. Within each segment, we offer data, products and analytical applications by firm type: Institutional Buyside, Dealmakers, Wealth, and Partnerships and CGS. Refer to Note 17, Segment Information for further discussion on our segments. 62 Table of Contents 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation We conduct business globally and manage our business on a geographic basis. The accompanying Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for annual financial information and the instructions to Form 10-K and Article 10 of Regulation S-X. The accompanying Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries; all intercompany activity and balances have been eliminated. Reclassifications For the year ended August 31, 2025, asset impairments were included within Selling, general and administrative ("SG&A") in the Consolidated Statements of Income and within Other, net in the Consolidated Statements of Cash Flows. We conformed the comparative prior year figures to the current year presentation. For the year ended August 31, 2025, Prepaid expenses and other assets, previously included within Other, net, were presented as a separate component of Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows. We conformed the comparative prior year figures to the current year presentation. Use of Estimates The preparation of our Consolidated Financial Statements and related disclosures in conformity with GAAP required management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimation may be involved in the accounting for income taxes, stock-based compensation, goodwill, business combinations, property, equipment and leasehold improvements ("PPE"), intangible assets and contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. Actual results could differ materially from those estimates. Refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, Critical Accounting Estimates , of this Annual Report on Form 10-K for further discussion on our use of estimates. Revenue Recognition The majority of our revenues are derived from client access to our multi-asset solutions powered by our platform of connected data and technology that is available over the contractual term (referred to as the "Hosted Platform"). The Hosted Platform is a subscription-based service that provides client access to various combinations of products and services including workstations, portfolio analytics and enterprise solutions. In addition, through the CGS platform, we provide subscription access to a database of universally recognized security identifiers reflecting differentiating characteristics for issuers and their financial instruments (referred to as the "Identifier Platform"). Revenues from our products and services are recognized as we transfer control to our clients, in an amount that reflects the consideration we expect to receive in exchange for satisfying our performance obligations. We record revenues net of sales taxes which are subsequently remitted to taxing authorities and are excluded from the transaction price. We determined the majority of our contracts with clients, whether for our Hosted Platform or Identifier Platform service, each represent a single performance obligation covering a series of distinct products and services that are substantially the same and that have the same pattern of transfer to the client. The primary nature of our promise to the client is to provide daily access to each of these data and analytics platforms, with revenue recognized over-time as performance is satisfied on an output time-based measure of progress, as the client is simultaneously receiving and consuming the benefits of the platform. We record deferred revenues when payments are received in advance of performance under the client contract. 63 Table of Contents Stock-Based Compensation Our stock-based compensation expense consists of: • Stock options, restricted stock units ("RSUs") and performance share units ("PSUs") issued to eligible employees under the FactSet Research Systems Inc. Stock Option and Award Plan, as Amended and Restated (the "LTIP"). • Stock options and RSUs issued to non-employee members of the Board of Directors ("non-employee directors") under the FactSet Research Systems Inc. Non-Employee Directors’ Stock Option and Award Plan as Amended and Restated (the "Director Plan"). • Common stock purchased by eligible employees under the FactSet Research Systems Inc. Employee Stock Purchase Plan as Amended and Restated (the "ESPP"). We measure and recognize stock-based compensation expense for all stock-based awards and purchases of common stock under the ESPP based on their estimated grant date fair value. We utilize a lattice-binomial option-pricing model ("binomial model") to estimate the grant date fair value for our employee stock options and the Black-Scholes model to estimate the grant date fair value for non-employee director stock options and common stock purchased by eligible employees under our ESPP. Both the binomial model and Black-Scholes model involve certain estimates and assumptions such as: • Risk-free interest rate - based on the United States ("U.S.") Treasury yield curve in effect at the time of grant with maturities equal to the expected terms of the stock-based awards granted. • Expected life - the weighted average period the stock-based awards are expected to remain outstanding. • Expected volatility - based on a blend of historical volatility of the stock-based award's useful life and the weighted average implied volatility for call option contracts traded in the 90 days preceding the stock-based award's valuation date. • Dividend yield - the expectation of dividend payouts based on our history. The binomial model also incorporates market conditions, vesting restrictions and exercise patterns. For RSUs and PSUs (collectively, "Restricted Stock Awards"), the grant date fair value is measured by reducing the grant date price of our common stock by the present value of expected future dividend payments on the underlying stock during the requisite service period, discounted at the appropriate risk-free interest rate. The number of PSUs granted assumes target-level achievement of the specified performance levels within the payout range. The ultimate number of common shares that may be earned pursuant to our PSU awards depends on the level of our achievement of stated financial performance objectives. Stock-based compensation expense for stock option and RSU awards is recognized over the requisite service period using the straight-line method. For these awards, the amount of stock-based compensation expense recognized on any date is at least equal to the vested portion of the award on that date. Our PSUs require us to make assumptions regarding the probability of achieving specified performance levels established at the time of grant. We recognize stock-based compensation expense for PSUs using the straight-line method over the requisite service period. The probability of achieving the specified performance levels is reviewed on a quarterly basis to ensure the amount of stock-based compensation expense appropriately reflects the expected achievement. For our ESPP, stock-based compensation expense is recognized on a straight-line basis over the offering period. Our stock-based awards are generally subject to the continued employment for employees, or continued service for non-employee directors, through the applicable vesting date. Compensation expense for stock-based awards is recorded net of estimated forfeitures, which are based on historical forfeiture rates and are revised if actual forfeitures differ from those estimates. Research and Product Development Costs We do not have a separate research and product development department, but rather we rely on collaboration across departments, with costs primarily consisting of employee compensation costs, such as salaries and related benefits for our product development, software engineering and technical support departments, as well as certain third party costs. These teams collaborate with our strategists, product and content managers, technologists, sales and other team members to develop new products and process innovations and enhance existing products. Our research and product development costs are expensed as 64 Table of Contents incurred and are primarily recorded in employee compensation costs, which are included in our Cost of services and Selling, general and administrative ("SG&A") expenses in the Consolidated Statements of Income, dependent on the nature of the team. We incurred research and product development costs of $ 300.7 million, $ 265.2 million and $ 267.4 million during fiscal 2025, 2024 and 2023, respectively. Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recorded for the temporary differences between the financial statement and the tax basis of assets and liabilities. In addition, deferred tax assets and liabilities are recorded for net operating loss carryforwards ("NOLs") and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which they are expected to be realized or settled. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the amount that is more likely than not (defined as a likelihood of more than 50%) to be realized. Applicable accounting guidance prescribes a comprehensive model for financial statement recognition, measurement, classification and disclosure of uncertain tax positions that a company has taken or expects to take on a tax return. We follow a two-step approach in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not (defined as a likelihood of more than 50%) that a tax position will be sustained based on its technical merits as of the reporting date. The second step, for those positions that meet the recognition criteria, is to measure and recognize the largest amount of benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority. We classify the liability for unrecognized tax benefits as Taxes Payable (non-current) and to the extent we anticipate payment of cash within one year, the benefit is classified as Current taxes payable in the Consolidated Balance Sheets. The determination of liabilities related to uncertain tax positions and associated interest and penalties requires significant estimates and assumptions; as such, there can be no assurance that we will accurately predict the outcome. For this reason and due to ongoing audits by multiple tax authorities, we regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. We accrue interest on all income tax exposures for which reserves have been established consistent with jurisdictional tax laws, and recognize this interest in the Provision for income taxes in the Consolidated Statements of Income and in Current taxes payable or Taxes payable (non-current), based on the expected timing of the payment, within the Consolidated Balance Sheets. Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments including demand deposits and money market funds available for withdrawal without restriction or with original maturities of 90 days or less. The carrying value of our cash and cash equivalents approximates fair value. Accounts Receivable Accounts receivable includes both invoiced and unbilled receivables, net of allowance for any potential uncollectible amounts. Unbilled receivables reflect revenues earned for which we have the unconditional right to payment, even though we have not yet issued an invoice. Amounts included in accounts receivable are expected to be collected within one year. Our allowance for expected credit losses is based on a variety of factors, including collectability trends, our historical write-off activity, current economic environment, client-specific information and expectations of future economic conditions. Our allowance is recorded to SG&A in the Consolidated Statements of Income and we assess the adequacy of the allowance on a quarterly basis. Recoveries of accounts previously reserved are recognized as a reversal to SG&A when payment is received. We write-off accounts receivable balances when we have exhausted our collection efforts. Property, Equipment and Leasehold Improvements PPE are stated at cost, less accumulated depreciation and amortization. Property and equipment are depreciated based on the straight-line method over the estimated useful lives of the assets, ranging from three to five years for computers and related equipment and seven years for furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the 65 Table of Contents shorter of their respective useful lives or the related lease term. Repairs and maintenance expenditures, which are not considered leasehold improvements and do not extend the useful life of the property and equipment, are expensed as incurred. We review our PPE to determine if any indicators of impairment are present on a quarterly basis or whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If indicators of impairment are present, the asset group is tested for impairment by comparing its carrying value to its undiscounted cash flows and if impaired, written down to fair value based on its discounted cash flows. In addition, we periodically evaluate the estimated remaining useful lives of our PPE to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization. Goodwill We recognize the excess of the purchase price over the fair value of identifiable net assets acquired at the acquisition date as goodwill. Goodwill is not amortized as it is estimated to have an indefinite life and is teste d for impairment at the reporting unit level annually, or more frequently if impairment indicators occur. Goodwill is deemed to be impaired and written-down in the period in which the carrying value of the reporting unit exceeds its fair value. We have three reporting units, Americas, EMEA and Asia Pacific, which are consistent with our operating segments. When assessing goodwill for impairment, we may first elect to perform a qualitative analysis for the reporting units to determine whether it is more likely than not (a likelihood of more than 50 percent) that the fair value of the reporting unit is less than its carrying value. If the qualitative analysis indicates that it is more likely than not the fair value of a reporting unit is less than its carrying value or if we elect not to perform a qualitative analysis, a quantitative analysis is performed to determine whether a goodwill impairment exists. The quantitative goodwill impairment analysis is used to identify potential impairment by comparing the carrying value of a reporting unit with its fair value. To perform this analysis, we apply the income approach which utilizes discounted cash flows, along with other relevant market information. The annual review of the carrying value of goodwill requires us to develop estimates of expected cash flows by reporting unit, based on future business performance, discounted by their respective weighted average cost of capital. Changes in our estimates can impact the present value of expected cash flows used in determining fair value of a reporting unit. If the carrying value of the reporting unit exceeds the fair value, then the goodwill is considered impaired and written down to the reporting unit’s fair value. The impairment loss for the reporting unit cannot exceed the carrying value of the goodwill allocated to that reporting unit. Intangible Assets We amortize intangible assets over their estimated useful lives, assuming no residual value. We evaluate the useful lives annually to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of the remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over that revised remaining useful life. Intangible assets are tested for impairment qualitatively on a quarterly basis or whenever events or changes in circumstances indicate that the carrying amount of an asset group is not recoverable. If indicators of impairment are present, the asset group is tested for impairment by comparing its carrying value to undiscounted cash flows and, if impaired, written down to fair value based on discounted cash flows. Internal-use Software and Implementation Costs of Hosting Arrangements Our developed technology intangible assets (“Developed technology”) consist of capitalized internal-use software costs, such as employee compensation and external expenses incurred during the application development phase, as well as costs related to upgrades and enhancements that add functionality, and software acquired for internal use. These costs are recorded in Intangible assets, net on the Consolidated Balance Sheets. We also capitalize qualifying implementation costs for hosting arrangements that meet the capitalization criteria per the internal-use software guidance within Other assets on the Consolidated Balance Sheets. Our Developed technology and implementation assets are typically amortized over three to five years using the straight-line method. Leases Our operating lease arrangements relate to our office space and data centers . We determine if an arrangement qualifies as a lease at inception by evaluating if there is an identified asset and whether we obtain substantially all the economic benefits of and have the right to control the use of an asset. For operating leases with a term greater than one year, we recognize lease right-of-use ("ROU") assets and lease liabilities as the present value of future minimum lease payments over the reasonably 66 Table of Contents certain lease term beginning at the commencement or modification date. The future minimum lease payments include fixed lease payments and certain qualifying index-based variable payments. Our lease ROU assets may further be impacted by prepayments, lease incentives received and initial direct costs incurred. Our operating leases are classified within Lease right-of-use assets, net, Current lease liabilities and Long-term lease liabilities on our Consolidated Balance Sheets. Our leases generally do not have a readily determinable implicit rate; therefore, we use our incremental borrowing rate ("IBR") at the lease commencement, or on the date of lease modification, if applicable, in determining the present value of future payments. Our IBR is derived by selecting U.S. corporate yield curves observed for public companies that are reflective of our credit rating, adjusted to approximate a secured rate of borrowing. We also consider revisions to the rate to reflect the geographic location where the leased asset is located. Certain of our lease agreements include options to extend and/or terminate the lease, which we do not include in our minimum lease terms unless we are reasonably certain to exercise these options. We account for the lease and non-lease components as a single lease component, which we recognize over the expected term on a straight-line expense basis in occupancy costs (a component of SG&A expense in the Consolidated Statements of Income). Variable lease payments that are not included in the calculation of lease ROU assets and lease liabilities are expensed as incurred within occupancy costs. We review our lease ROU assets for impairment when there are indicators that an asset may no longer be recoverable. The impairment assessment requires significant judgments and estimates, including estimating subtenant rental income, calculating an appropriate discount rate and assessing other applicable future cash flows associated with the leased location. These estimates are based on our experience and knowledge of the market in which the property is located, previous efforts to dispose of similar assets and the assessment of existing market conditions. Impairments are recognized as a reduction to the carrying value of the Lease right-of-use assets, net with a corresponding increase to SG&A on our Consolidated Balance Sheets and Consolidated Statements of Income, respectively. Treasury Stock We account for treasury stock under the cost method and present it within Treasury stock as a component of Stockholders' equity on the Consolidated Balance Sheets. We may repurchase shares of our common stock under our share repurchase program in the open market or via privately negotiated transactions, subject to market conditions. Repurchased shares of our common stock are recorded at the market price on the trade date and are held as treasury shares until they are reissued or retired. When treasury shares are reissued, if the issuance price is higher than the average price paid to acquire the shares ("the cost"), the excess of the issuance price over the cost is credited to additional paid-in capital ("APIC"). If the issuance is lower than the cost, the difference is first charged against any credit balance in APIC from Treasury stock, with the remaining balance charged to Retained earnings on the Consolidated Balance Sheets. We account for the formal retirement of treasury shares by deducting its par value from Common stock, reflecting any excess over par value as a reduction to APIC (to the extent created by previous issuances of the shares) and then Retained earnings on the Consolidated Balance Sheets. The Inflation Reduction Act of 2022 ("IRA"), which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. We record the applicable excise tax in Treasury stock, as part of the cost basis of the stock repurchased, and a corresponding liability for the excise taxes payable in Accounts payable and accrued expenses on the Consolidated Balance Sheets. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches is permissible. The inputs to these methodologies consider market comparable information, taking into account the principal or most advantageous market in which we would transact. The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value based on the reliability of inputs. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Foreign Currency Translation and Remeasurement Certain wholly-owned subsidiaries operate under a functional currency different from the U.S. dollar. Our primary currency exposures include th e British Pound Sterling, Euro, Indian Rupee and Philippine Peso. 67 Table of Contents The financial statements of our foreign subsidiaries that are local currency functional are translated into U.S. dollars using period-end rates of exchange for assets and liabilities and average monthly rates for revenues and expenses. The resulting translation gains and losses that arise from translating these assets, liabilities, revenues and expenses of our foreign operations are recorded in Accumulated other comprehensive loss ("AOCL") in the Consolidated Balance Sheets. For the financial statements of our foreign subsidiaries that are U.S. dollar functional but maintain their books of record in their respective local currency, we remeasure our revenues and expenses into U.S. dollars at the average rates of exchange for the period, monetary assets and liabilities using period-end rates and non-monetary assets and liabilities at their historical rates. The resulting remeasurement gains and losses are recorded to SG&A in the Consolidated Statements of Income. Concentrations of Credit Risk Credit risk arises from the potential nonperformance by counterparties to fulfill their financial obligations. Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of our cash, cash equivalents, restricted cash, investments in mutual funds, accounts receivable and derivative instruments. The maximum credit exposure of our cash, cash equivalents, restricted cash, investments in mutual funds and accounts receivable is their carrying values as of the balance sheet date. The maximum credit exposure related to our derivative instruments is based upon their respective gross fair values as of the balance sheet date. Cash, Cash Equivalents, Restricted Cash and Investments We are exposed to credit risk on our cash, cash equivalents, restricted cash and investments in mutual funds in the event of default by the financial and governmental institutions with which we transact. We invest in a manner that aligns with our restrictive cash investment practices, preserves capital and provides liquidity, while minimizing our exposure to credit risk. We limit our exposure to credit loss by investing with multiple financial and governmental institutions that we believe are high-quality and credit-worthy. We have not experienced any credit losses relating to our cash, cash equivalents, restricted cash and investments in mutual funds. Accounts Receivable Our accounts receivable credit risk is dependent upon the financial stability of our individual clients. As of August 31, 2025 and August 31, 2024, our accounts receivable reserve was $ 13.8 million and $ 14.6 million, respectively. We do not require collateral from our clients; however, no single client represented more than 3.5% of our total annual revenues for fiscal 2023 through fiscal 2025. Due to our large and geographically dispersed client base, our concentration of credit risk related to our accounts receivable is generally limited. Derivative Instruments Our use of derivative instruments exposes us to credit risk to the extent counterparties may be unable to meet the terms of their agreements. To mitigate credit risk, we limit counterparties to financial institutions we believe are credit-worthy and use several institutions to reduce concentration risk. We do not expect any losses as a result of default by our counterparties. Concentrations of Data Providers We integrate data from various third-party sources into our hosted proprietary data and analytics platform. As certain data sources have a limited number of suppliers, we make every effort to assure that, where reasonable, alternative sources are available. We are not dependent on any individual third-party data supplier to meet the needs of our clients, with two data suppliers each representing more than 10 % of our total data costs for the year ended August 31, 2025. 68 Table of Contents Concentrations of Cloud Providers Our clients rely on us for the delivery of time-sensitive, up-to-date data and applications. Our business is dependent on our ability to process substantial volumes of data and transactions rapidly and efficiently. We currently use multiple providers of cloud services; however, one supplier provided the majority of our cloud computing support for fiscal 2025. We maintain back-up facilities and other redundancies at our data centers, take security measures and have emergency planning procedures to minimize the risk that an event will disrupt our operations. Recently Adopted Accounting Pronouncements Segment Reporting - Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures . This ASU enhances segment disclosures primarily related to significant segment expenses for both interim and annual periods. We adopted this ASU on a retrospective basis for our annual financial statements starting in fiscal 2025. The adoption of this ASU resulted in additional disclosures with no impact to our Consolidated Financial Statements. Refer to Note 17, Segment Information , for further information. Codification Improvements - Amendments to Remove References to the Concepts Statements In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements . This ASU amends the FASB Accounting Standards Codification ("the Codification") to remove references to various FASB Concepts Statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. We early adopted this ASU on a prospective basis as of March 1, 2025. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements or related disclosures. Accounting Pronouncements Not Yet Adopted Income Statement - Disaggregation of Income Statement Expenses In November 2024, the FASB issued Accounting Standards Update ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses . This ASU requires disaggregation of certain income statement expense captions into specified categories to be disclosed within the footnotes to the financial statements. This ASU does not change the expense captions on the income statement. The amendments in this ASU are to be applied prospectively, although retrospective application is permitted, and are effective for our annual financial statements starting in fiscal 2028 and interim periods starting in fiscal 2029. Early adoption is permitted. This ASU is not expected to have a material impact on our Consolidated Financial Statements. We are currently assessing the impact of the new requirements on our disclosures. U.S. Securities and Exchange Commission ("SEC") Disclosures - The Enhancement and Standardization of Climate-Related Disclosures for Investors In March 2024, the SEC adopted a final rule under SEC Release Nos. 33-11275 and 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors , which would require disclosure of certain climate-related information in various filings with the SEC. In April 2024, the SEC stayed implementation of the final rule pending completion of judicial review. In March 2025, the SEC stated that it has ended its defense of the rule. We are currently monitoring the legal challenges and assessing the potential impact of the rule on our disclosures. Income Taxes - Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures . This ASU enhances annual income tax disclosures primarily related to our effective tax rate reconciliation and income taxes paid. The amendments in this ASU are to be applied prospectively, although retrospective application is permitted, and are effective for our annual financial statements starting in fiscal 2026. Early adoption is permitted. This ASU is not expected to have a material impact on our Consolidated Financial Statements. We are currently assessing the impact of the new requirements on our disclosures. 69 Table of Contents Disclosure Improvements - Codification Amendment in Response to the SEC's Disclosure Update and Simplification Initiative In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative . The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As we are currently subject to these SEC requirements, this ASU is not expected to have a material impact on our Consolidated Financial Statements or related disclosures. No other new accounting pronouncements issued or effective during fiscal 2025 have had, or are expected to have, a material impact on our Consolidated Financial Statements. 3. REVENUE RECOGNITION We derive most of our revenues by delivering client access to our multi-asset class solutions powered by our platform of connected data and technology that is available over the contractual term (referred to as the "Hosted Platform"). The Hosted Platform is a subscription-based service that provides client access to various combinations of products and services including workstations, portfolio analytics and enterprise solutions. We also derive revenues through the CGS platform, a subscription-based service that provides access to a database of universally recognized security identifiers and related descriptive data for issuers and their financial instruments (referred to as the "Identifier Platform"). The majority of each of our contracts with clients, whether for Hosted Platform or Identifier Platform services, represents a single performance obligation covering a series of distinct products and services that are substantially the same and that have the same pattern of transfer to the client. The primary nature of the promise to the client is to provide daily access to each of these data and analytics platforms over the associated contractual term. These platforms provide integrated financial information, analytical applications and industry-leading service for the investment community. Based on the nature of the products and services offered by these platforms, we apply an output time-based measure of progress as the client is simultaneously receiving and consuming the benefits of the respective platform. We recognize revenue for the majority of these platforms in accordance with the 'as invoiced' practical expedient, because the consideration that we have the right to invoice corresponds directly with the value of our performance to date. There are no significant judgments that would impact the timing of revenue recognition. The majority of client contracts have a duration of one year, or the amount we are entitled to receive corresponds directly with the value of our performance obligations completed to date. Therefore, we do not disclose the value of the remaining unsatisfied performance obligations. Disaggregated Revenues We disaggregate revenues from our client contracts by segment based on the geographic region where the sale originated. Our business segmentation by geography is aligned with the operational and economic characteristics of our business. Refer to Note 17, Segment Information , for further information. The following table presents revenues disaggregated by segment: Years ended August 31, (in thousands) 2025 2024 2023 Americas $ 1,506,108 $ 1,419,901 $ 1,335,484 EMEA 580,284 563,128 539,843 Asia Pacific 235,356 220,027 210,181 Total Revenues $ 2,321,748 $ 2,203,056 $ 2,085,508 We have not disclosed revenues from external clients by product and service, as it is impracticable for us to do so. 70 Table of Contents 4. FAIR VALUE MEASURES Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches are permissible. When pricing an asset or liability, the inputs to these valuation methodologies consider market comparable information, taking into account the principal or most advantageous market in which we would transact. Fair Value Hierarchy The accounting guidance for fair value measurements establishes a three-level fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy ranks the reliability of the inputs, based upon the lowest level of input that is significant to the fair value measurement, used to determine fair value. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. We have categorized our assets and liabilities within the fair value hierarchy as follows: Level 1 – applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 – applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 – applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The assumptions used in determining fair value represent our best estimates, but these estimates involve inherent uncertainties and the application of our judgment. As a result, if factors change, our fair value estimates could be materially different in the future and may adversely affect our business and financial results. (a) Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables show, by level within the fair value hierarchy, our assets and liabilities that are measured at fair value on a recurring basis as of August 31, 2025 and August 31, 2024. We did not have any transfers between levels of fair value measurements during fiscal 2025 and 2024. (in thousands) Fair Value Measurements as of August 31, 2025 Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 8,649 $ — $ — $ 8,649 Mutual funds (2) — 17,445 — 17,445 Derivative instruments (3) — 3,590 — 3,590 Total assets measured at fair value $ 8,649 $ 21,035 $ — $ 29,684 Liabilities Derivative instruments (3) $ — $ 808 $ — $ 808 Contingent liabilities (4) — — 24,126 24,126 Total liabilities measured at fair value $ — $ 808 $ 24,126 $ 24,934 71 Table of Contents (in thousands) Fair Value Measurements as of August 31, 2024 Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 129,635 $ — $ — $ 129,635 Mutual funds (2) — 69,619 — 69,619 Derivative instruments (3) — 2,619 — 2,619 Total assets measured at fair value $ 129,635 $ 72,238 $ — $ 201,873 Liabilities Derivative instruments (3) $ — $ 250 $ — $ 250 Contingent liability (4) — — 4,193 4,193 Total liabilities measured at fair value $ — $ 250 $ 4,193 $ 4,443 (1) Our money market funds are readily convertible into cash. The net asset value of each fund on the last day of the reporting period is used to determine its fair value. Our money market funds are included in Cash and cash equivalents within the Consolidated Balance Sheets. (2) Our mutual funds' fair value is based on the fair value of the underlying investments held by the mutual funds, allocated to each share of the mutual fund using a net asset value approach. The fair value of each underlying investment is based on observable inputs. Our mutual funds are included in Investments within the Consolidated Balance Sheets. (3) Our derivative instruments included foreign exchange forward contracts and interest rate swap agreements. We utilized the income approach to measure fair value for our foreign exchange forward contracts. The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads. To estimate fair value for our interest rate swap agreements, we utilized a present value of future cash flows, leveraging a model-derived valuation that uses observable inputs such as interest rate yield curves. Our derivative instruments in an asset position are included in Prepaid expenses and other current assets and those in a liability position are included in Accounts payable and accrued expenses within the Consolidated Balance Sheets. (4) Our contingent liabilities resulted from the acquisitions of various businesses. These liabilities reflect the present value of potential future payments that are contingent upon the achievement of certain specified milestones and are valued using a scenario-based method. This method incorporates unobservable inputs and assumptions made by management, including the probability of achieving specified milestones, expected time until payment and the discount rate. Refer to Note 5, Acquisitions, for more information on the contingent liabilities associated with the Liquid Holdings LLC ("LiquidityBook") and Platform Group Limited ("Irwin") acquisitions. 72 Table of Contents (b) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Assets that are measured at fair value on a non-recurring basis primarily include our PPE, lease ROU assets, goodwill and intangible assets. These assets are assessed for impairment whenever events or circumstances indicate their carrying value may not be fully recoverable, and at least annually for goodwill. The fair values of these non-financial assets are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparable information and discounted cash flow projections. (c) Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only We elected not to carry our debt at fair value on the Consolidated Balance Sheets. Our Senior Notes are publicly traded; therefore, the fair value of our Senior Notes is estimated based on quoted prices in active markets as of the last business day of the fiscal year, which are considered Level 1 inputs. The fair value of our 2022 and 2025 Credit Facilities, for their respective outstanding periods, was estimated based on quoted market prices for similar instruments, adjusted for unobservable inputs to ensure comparability to our investment rating, maturity terms and principal outstanding, which are considered Level 3 inputs. Refer to Note 11, Debt for definitions of, and more information on, our Senior Notes, 2025 Credit Facilities and 2022 Credit Facilities. The following table summarizes information on our outstanding debt as of August 31, 2025 and August 31, 2024: August 31, 2025 August 31, 2024 (in thousands) Fair Value Hierarchy Principal Amount Estimated Fair Value Principal Amount Estimated Fair Value 2027 Notes Level 1 $ 500,000 $ 490,565 $ 500,000 $ 479,760 2032 Notes Level 1 500,000 460,440 500,000 449,380 2025 Term Facility Level 3 375,000 374,866 — — 2022 Revolving Facility Level 3 — — 250,000 246,578 2022 Term Facility Level 3 — — 125,000 125,242 Total principal amount $ 1,375,000 $ 1,325,871 $ 1,375,000 $ 1,300,960 Total unamortized discounts and debt issuance costs (1) ( 6,740 ) ( 9,027 ) Total net carrying value of debt $ 1,368,260 $ 1,365,973 (1) Amount excludes the debt issuance costs related to the 2025 Revolving Facility which are presented within Other assets on the Consolidated Balance Sheets. 5. ACQUISITIONS Our acquisitions with the most significant cash flows during fiscal 2023 through fiscal 2025 included: Liquid Holdings, LLC ("LiquidityBook") On February 7, 2025, we completed the acquisition of LiquidityBook for a purchase price of $ 243.2 million, net of cash acquired, and inclusive of preliminary working capital adjustments. The purchase price includes contingent consideration of $ 11.9 million, which reflects the acquisition date fair value of potential future payments that are contingent upon the achievement of certain specified milestones. Refer to Note 4, Fair Value Measures, for information regarding the contingent consideration. LiquidityBook provides cloud-native trading solutions to hedge fund, asset and wealth management, outsourced trading, and sell-side middle office clients. LiquidityBook operates a proprietary FIX network that enables streamlined connectivity to over 200 brokers and order routing to more than 1,600 destinations across 80 markets globally. This acquisition adds technology-forward order management and investment book of record capabilities and enhances FactSet’s ability to serve the integrated workflow needs of clients across the portfolio life cycle. The results of LiquidityBook's operations have been included within the Americas, EMEA and Asia Pacific segments in our Consolidated Financial Statements. Pro forma information has not been presented because the effect of the LiquidityBook acquisition was not material to our Consolidated Financial Statements. 73 Table of Contents The preliminary purchase price allocation is subject to change pending a final valuation of the assets and liabilities acquired and the finalization of working capital adjustments. We expect to finalize the allocation of the purchase price for LiquidityBook as soon as possible, but in any event, no later than one year from the acquisition date. The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows: Acquisition Date Fair Value Acquisition Date Useful Life Amortization Method (in thousands) (in years) Current assets $ 3,893 Amortizable intangible assets Software technology 65,600 12 years Straight-line Client relationships 8,800 17 years Straight-line Trade names 3,400 10 years Straight-line Goodwill 164,787 Other assets 487 Current liabilities Deferred revenues ( 799 ) Other current liabilities ( 2,386 ) Other liabilities ( 600 ) Total purchase price $ 243,182 Goodwill totaling $ 164.8 million represents the excess of the LiquidityBook purchase price over the fair value of net assets acquired and considers future economic benefits that we expect to achieve as a result of the acquisition. The goodwill is included in the Americas, EMEA and Asia Pacific segments and is deductible for income tax purposes. Platform Group Limited ("Irwin") On November 5, 2024, we completed the acquisition of Irwin for a purchase price of $ 120.2 million, net of cash acquired, and inclusive of working capital adjustments. The purchase price includes contingent consideration of $ 9.6 million which reflects the acquisition date fair value of potential future payments that are contingent upon the achievement of certain specified milestones. Refer to Note 4, Fair Value Measures, for information regarding the contingent consideration. Irwin is a leading investor relations and capital markets platform for public companies and their advisors. This acquisition builds on a recent successful partnership between FactSet and Irwin, and expands our ability to address the holistic workflow needs of investor relations professionals with an integrated, modern solution. The results of Irwin's operations have been included within the Americas, EMEA and Asia Pacific segments in our Consolidated Financial Statements. Pro forma information has not been presented because the effect of the Irwin acquisition was not material to our Consolidated Financial Statements. 74 Table of Contents We finalized the purchase accounting for the Irwin acquisition during the third quarter of fiscal 2025 and did not record any material changes to the preliminary purchase price allocation. The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows: Acquisition Date Fair Value Acquisition Date Useful Life Amortization Method (in thousands) (in years) Current assets $ 2,393 Amortizable intangible assets Software technology 36,100 12 years Straight-line Client relationships 1,700 11 years Straight-line Trade names 1,400 10 years Straight-line Goodwill 91,376 Current liabilities Deferred revenues ( 4,218 ) Other current liabilities ( 524 ) Other liabilities ( 8,041 ) Total purchase price $ 120,186 Goodwill totaling $ 91.4 million represents the excess of the Irwin purchase price over the fair value of net assets acquired and considers future economic benefits that we expect to achieve as a result of the acquisition. The goodwill is included in the Americas and EMEA segments and is not deductible for income tax purposes. 6. PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Property, equipment and leasehold improvements consist of the following: (in thousands) August 31, 2025 2024 Leasehold improvements $ 101,425 $ 95,840 Computers and related equipment 97,947 84,447 Furniture and fixtures 30,764 28,747 Subtotal $ 230,136 $ 209,034 Less accumulated depreciation and amortization ( 144,933 ) ( 126,521 ) Property, equipment and leasehold improvements, net $ 85,203 $ 82,513 PPE depreciation and amortization expense was $ 24.1 million, $ 20.2 million and $ 18.1 million for fiscal 2025, 2024 and 2023, respectively. 7. GOODWILL Changes in the carrying value of goodwill by segment for the years ended August 31, 2025 and 2024 are as follows: (in thousands) Americas EMEA Asia Pacific Total Balance at August 31, 2023 $ 704,759 $ 297,734 $ 2,243 $ 1,004,736 Acquisitions ( 305 ) — — ( 305 ) Foreign currency translations — 6,708 ( 10 ) 6,698 Balance at August 31, 2024 $ 704,454 $ 304,442 $ 2,233 $ 1,011,129 Acquisitions 219,107 32,680 9,034 260,821 Divestiture ( 269 ) ( 1,291 ) ( 43 ) ( 1,603 ) Foreign currency translations 2,460 8,605 3,296 14,361 Balance at August 31, 2025 $ 925,752 $ 344,436 $ 14,520 $ 1,284,708 75 Table of Contents We performed our annual goodwill impairment test during the fourth quarter of fiscal 2025 and 2024. During fiscal 2025 and 2024, we utilized a qualitative analysis and concluded there was no impairment as it was more likely than not that the fair value of each of our reporting units was not less than its respective carrying value. 8. INTANGIBLE ASSETS We amortize intangible assets on a straight-line basis over their estimated useful lives. The following table presents the estimated useful life, gross carrying amounts and accumulated amortization related to our identifiable intangible assets as of August 31, 2025 and August 31, 2024: August 31, 2025 August 31, 2024 (in thousands, except useful lives) Estimated Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount ABA business process 36 $ 1,583,000 $ 153,903 $ 1,429,097 $ 1,583,000 $ 109,930 $ 1,473,070 Client relationships 11 to 26 280,065 94,365 185,700 266,419 80,904 185,515 Developed technology 3 to 5 260,154 127,669 132,485 181,492 68,286 113,206 Software technology 3 to 12 253,899 131,731 122,168 143,685 117,189 26,496 Data content 7 to 20 86,416 44,490 41,926 84,374 38,725 45,649 Trade names 5 to 10 4,919 326 4,593 — — — Non-compete agreements 4 290 157 133 290 85 205 Total $ 2,468,743 $ 552,641 $ 1,916,102 $ 2,259,260 $ 415,119 $ 1,844,141 The weighted average useful life of our intangible assets as of August 31, 2025 was 30.5 years. We did not identify a material change to the estimated remaining useful lives of our intangible assets during fiscal 2025 and 2024. The intangible assets have no assigned residual values. The following table presents the amortization expense for our intangible assets which is included in Cost of services in our Consolidated Statements of Income: Years ended August 31, (in thousands) 2025 2024 2023 Amortization expense $ 133,573 $ 104,950 $ 87,304 As of August 31, 2025, estimated intangible asset amortization expense for each of the next five years and thereafter is as follows: (in thousands) Estimated Amortization Expense Fiscal Years Ended August 31, 2026 $ 143,686 2027 118,672 2028 89,985 2029 72,983 2030 70,546 Thereafter 1,420,230 Total $ 1,916,102 76 Table of Contents 9. INCOME TAXES We are subject to taxation in the U.S. and various state, local and foreign jurisdictions in which we conduct our business. Income tax expense is based on taxable income determined in accordance with current enacted laws and tax rates. Deferred income taxes are recorded for the temporary differences between the financial statement carrying amounts and the tax basis of our assets and liabilities using currently enacted tax rates. Provision for Income Taxes and Effective Tax Rate The provision for income taxes and the effective tax rate are as follows: (in thousands) Years ended August 31, 2025 2024 2023 U.S. operations $ 479,288 $ 416,093 $ 382,702 Non-U.S. operations 241,670 235,410 201,252 Income before income taxes $ 720,958 $ 651,503 $ 583,954 U.S. operations $ 45,591 $ 55,219 $ 54,337 Non-U.S. operations 78,327 59,158 61,444 Provision for income taxes $ 123,918 $ 114,377 $ 115,781 Effective tax rate 17.2 % 17.6 % 19.8 % The components of the provision for income taxes consist of the following: (in thousands) Years ended August 31, 2025 2024 2023 Current U.S. federal $ 16,255 $ 46,903 $ 38,625 U.S. state and local 27,594 40,926 38,600 Non-U.S. 83,614 58,568 69,675 Total current taxes $ 127,463 $ 146,397 $ 146,900 Deferred U.S. federal $ ( 1,132 ) $ ( 26,962 ) $ ( 17,235 ) U.S. state and local 2,875 ( 5,648 ) ( 5,652 ) Non-U.S. ( 5,288 ) 590 ( 8,232 ) Total deferred taxes $ ( 3,545 ) $ ( 32,020 ) $ ( 31,119 ) Provision for income taxes $ 123,918 $ 114,377 $ 115,781 Our effective tax rate will vary based on, among other factors, changes in levels of foreign income, as well as other non-recurring events. 77 Table of Contents The following table presents a reconciliation between the U.S. corporate income tax rate and our effective tax rate: Years ended August 31, (expressed as a percentage of income before income taxes) 2025 2024 2023 Tax at U.S. Federal statutory tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in taxes resulting from: State and local taxes, net of U.S. federal income tax benefit 3.1 2.2 3.1 Foreign income at other than U.S. rates 1.7 1.5 ( 0.1 ) Foreign derived intangible income ("FDII") tax deduction ( 2.0 ) ( 2.3 ) ( 1.6 ) Income tax benefits from research and development ("R&D") tax credits ( 3.1 ) ( 2.8 ) ( 3.8 ) Stock-based payments ( 1.4 ) ( 2.1 ) ( 2.2 ) U.S. impact of foreign income ( 3.1 ) ( 2.5 ) ( 0.6 ) Uncertain tax positions 1.4 2.3 0.5 One-time adjustment (1) — — 3.8 Other, net ( 0.4 ) 0.3 ( 0.3 ) Effective tax rate 17.2 % 17.6 % 19.8 % (1) During fiscal 2023, we recorded an out-of-period adjustment related to a review and analysis of certain tax positions, resulting in a one-time net charge. The adjustment related to the accounting of tax balance sheet accounts. All local, federal and foreign taxes payable have been paid in a timely manner, subject to normal audits of open years. Deferred Tax Assets and Liabilities We recognize deferred income taxes to reflect the temporary differences between the financial statement carrying amounts of assets and liabilities and their corresponding tax basis. The tax effects of these differences are as follows: (in thousands) As of August 31, 2025 2024 Deferred tax assets: Lease liabilities $ 35,352 $ 41,373 Stock-based compensation 36,675 35,615 Capitalization of R&D costs 143,829 109,664 Sales Tax Dispute — 14,058 Other 39,793 28,154 Total deferred tax assets $ 255,649 $ 228,864 Deferred tax liabilities: Depreciation on PPE $ ( 41,432 ) $ ( 35,666 ) Purchased intangible assets, including acquired technology ( 141,566 ) ( 106,131 ) Lease ROU assets ( 18,184 ) ( 24,429 ) Other ( 5,393 ) ( 9,753 ) Total deferred tax liabilities $ ( 206,575 ) $ ( 175,979 ) Deferred tax assets (liabilities), net $ 49,074 $ 52,885 Valuation allowance ( 2,750 ) — Total deferred tax assets (liabilities), net $ 46,324 $ 52,885 78 Table of Contents Total deferred tax assets and liabilities recorded within the Consolidated Balance Sheets were as follows: (in thousands) As of August 31, 2025 2024 Deferred tax assets $ 61,226 $ 61,337 Deferred tax liabilities ( 14,902 ) ( 8,452 ) Total deferred tax assets (liabilities), net $ 46,324 $ 52,885 As of August 31, 2025, our pre-tax foreign, federal and state NOLs were approximately $ 12.8 million, $ 18.9 million and $ 11.1 million, respectively. These carryforwards may be used to offset future taxable income. Our foreign NOLs expire on August 31, 2045, while our federal NOLs have various expiration dates, beginning August 31, 2036, with some federal NOLs having an unlimited carryforward. Our state NOLs have various expiration dates, beginning August 31, 2026. Utilization of the NOLs may be subject to an annual limitation due to the ownership limitations provided by the Internal Revenue Code of 1986, as amended (the "Code"), and similar state provisions. Any annual limitation may result in the expiration of NOLs before utilization. Unrecognized Tax Benefits The determination of liabilities related to uncertain tax positions, and associated interest and penalties, requires significant estimates and assumptions; as such, there can be no assurance that we will accurately predict the outcomes of these audits. We have no reason to believe that such audits will result in the payment of additional taxes and/or penalties that would have a material adverse effect on our results of operations or financial position, beyond current estimates. The following table summarizes the changes in the balance of gross unrecognized tax benefits: (in thousands) Unrecognized tax benefits as of August 31, 2022 $ 20,171 Additions based on tax positions related to the current year 4,372 Release for tax positions of prior years ( 3,490 ) Unrecognized tax benefits as of August 31, 2023 $ 21,053 Additions based on tax positions related to the current year 6,068 Additions for tax positions related to prior years (1) 11,726 Release for tax positions of prior years ( 3,557 ) Unrecognized tax benefits as of August 31, 2024 $ 35,290 Additions based on tax positions related to the current year 5,344 Additions for tax positions related to prior years (1) 2,368 Release for tax positions of prior years ( 3,568 ) Unrecognized tax benefits as of August 31, 2025 $ 39,434 (1) Additions for tax positions related to prior years was presented separately in fiscal 2025. Comparative figures for fiscal 2024 have been conformed. There were no such amounts in fiscal 2023. We do not currently anticipate that the total amount of unrecognized tax benefits will significantly change within the next 12 months. We recognize accrued interest related to unrecognized tax benefits in our Provision for income taxes in the Consolidated Statements of Income. Our accrued interest related to unrecognized tax benefits was $ 5.7 million, $ 3.9 million and $ 1.6 million as of August 31, 2025, 2024 and 2023, respectively. As of fiscal 2025, 2024 and 2023, there were $ 38.5 million, $ 29.1 million and $ 19.1 million of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. 79 Table of Contents In the normal course of business, our tax filings are subject to audit by federal, state and foreign tax authorities. As of August 31, 2025, we remained subject to examination in the following significant tax jurisdictions for the fiscal years as indicated below: Significant Tax Jurisdiction Open Tax Fiscal Years U.S. Federal 2019 through 2024 State (various) 2019 through 2024 Non-U.S. United Kingdom 2021 through 2024 India 2022 through 2024 Undistributed Foreign Earnings As of August 31, 2025 , we had $ 486.9 million of undistributed foreign earnings of which $ 69.1 million are permanently reinvested. It is our intent to permanently reinvest all foreign undistributed earnings, except in jurisdictions where earnings can be repatriated substantially free of tax. It is not practicable to determine the deferred tax liability that would be payable if these permanently reinvested earnings were repatriated to the U.S. With respect to outside basis differences other than unremitted earnings, we continue to be permanently reinvested and have no plans to liquidate or sell any foreign subsidiaries. In addition, we have not provided for deferred taxes on any outside basis differences of our domestic subsidiaries as we have the ability and intent to recover these basis differences in a tax-free manner. It is not practicable to determine the amount of unrecognized deferred tax related to these basis differences. Base Erosion and Profit Shifting Pillar Two The Organization for Economic Co-operation and Development released Base Erosion and Profit Shifting Pillar Two rules (“Pillar Two”) to introduce a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds. Certain aspects of Pillar Two are effective for tax years beginning on or after January 1, 2024. Although the U.S. has not yet enacted legislation to adopt Pillar Two, certain countries in which we operate have already adopted, or are in the process of adopting, legislation to implement Pillar Two. We have determined that Pillar Two would not have a material impact to our Consolidated Financial Statements, related disclosures, or effective tax rate. However, the Pillar Two rules continue to evolve and their application may alter our tax obligations in certain countries in which we operate for fiscal 2026, and beyond, as we continue to assess the impact of tax legislation in these jurisdictions. One Big Beautiful Bill Act On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. The legislation includes a broad range of tax reform provisions affecting businesses including, but not limited to, the expansion of bonus depreciation, immediate expensing of domestic R&D costs, and revisions to the U.S. taxation of profits derived from international operations. The legislation has multiple effective dates, with certain provisions effective in fiscal year 2025 and others implemented through fiscal year 2027. The Act did not have a material impact on the Company financial position and results of operations as of and for the fiscal year ended August 31, 2025 . 10. LEASES Our operating lease arrangements relate to our office space and data centers. We review new arrangements at inception to evaluate whether we obtain substantially all the economic benefits of and have the right to control the use of an asset. Our lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments at lease commencement or modification date (which includes fixed lease payments and certain qualifying index-based variable payments) over the reasonably certain lease term, leveraging an estimated IBR. Certain adjustments to calculate our lease ROU assets may be required due to prepayments, lease incentives received and initial direct costs incurred. We account for lease and non-lease components as a single lease component, which we recognize over the expected lease term on a straight-line expense basis in occupancy costs (a component of SG&A expense) in our Consolidated Statements of Income. 80 Table of Contents As of August 31, 2025 , we recognized $ 121.8 million of Lease ROU assets, net and $ 190.2 million of combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets. Our leases have a remaining lease term ranging from less than one year to just over 10 years. Our lease agreements may include options to extend or terminate the lease, which would be included in the measurement of our lease term if it is reasonably certain that we will exercise the option. The following table presents our future minimum lease payments and a reconciliation to the combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets as of August 31, 2025: (in thousands) Minimum Lease Payments Fiscal Years Ended August 31, 2026 $ 41,550 2027 40,968 2028 36,685 2029 31,068 2030 25,891 Thereafter 41,039 Total minimum lease payments $ 217,201 Less: Imputed interest 26,952 Total lease liabilities $ 190,249 The following table includes components of our occupancy costs: Years ended August 31, (in thousands) 2025 2024 2023 Operating lease costs (1) $ 30,982 $ 30,407 $ 32,330 Variable lease costs (2) $ 18,110 $ 17,280 $ 17,940 (1) Operating lease costs include costs associated with fixed lease payments and index-based variable payments that qualified for lease accounting under ASC 842, Leases and complied with the practical expedients and exceptions we elected. (2) Variable lease costs include costs that are not fixed and are not dependent on an index or rate. These costs were not included in the measurement of lease liabilities and primarily include variable non-lease costs, such as utilities, real estate taxes, insurance and maintenance, as well as lease costs for those leases that qualified for the short-term lease exception. The following table summarizes our weighted average remaining lease term and weighted average discount rate related to our operating leases recorded on the Consolidated Balance Sheets: As of August 31, 2025 2024 Weighted average remaining lease term (in years) 6.1 6.9 Weighted average discount rate (IBR) 4.7 % 4.6 % The following table summarizes supplemental cash flow information related to our operating leases: Years ended August 31, (in thousands) 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities $ 40,613 $ 39,386 $ 39,392 Lease ROU assets obtained in exchange for lease liabilities (1) $ 7,439 $ 10,268 $ 16,934 Reductions to ROU assets resulting from reductions to lease liabilities (2) $ ( 5,529 ) $ ( 281 ) $ ( 1,376 ) (1) Primarily includes new lease arrangements entered into during the respective period and contract modifications that extend our lease terms and/or provide additional rights. (2) Primarily relates to lease term reassessments based on contractual options to early terminate, resulting in a reduction to the lease liability and the corresponding lease ROU asset. 81 Table of Contents 11. DEBT We have not elected the fair value option and report our debt at amortized cost. Our debt obligations as of August 31, 2025 and August 31, 2024 consisted of the following: (in thousands) Issuance Date Contractual Maturity Date August 31, 2025 August 31, 2024 Current debt 2022 Term Facility (1) 3/1/2022 3/1/2025 $ — $ 125,000 Unamortized debt issuance costs — ( 158 ) Total Current debt $ — $ 124,842 Long-term debt 2022 Revolving Facility (2) 3/1/2022 3/1/2027 $ — $ 250,000 2025 Term Facility 4/8/2025 4/8/2028 375,000 — 2027 Notes 3/1/2022 3/1/2027 500,000 500,000 2032 Notes 3/1/2022 3/1/2032 500,000 500,000 Unamortized discounts and debt issuance costs (3) ( 6,740 ) ( 8,869 ) Total Long-term debt $ 1,368,260 $ 1,241,131 Total debt $ 1,368,260 $ 1,365,973 (1) The 2022 Term Facility was repaid in full on February 28, 2025. (2) The 2022 Revolving Facility was repaid in full and terminated on April 8, 2025. (3) Amount excludes the debt issuance costs related to the 2025 Revolving Facility which are presented within Other assets on the Consolidated Balance Sheets. As of August 31, 2025, annual maturities on our debt obligations, based on contractual maturity dates, were as follows: (in thousands) Maturities Fiscal Years Ended August 31, 2026 $ — 2027 500,000 2028 375,000 2029 — 2030 — Thereafter 500,000 Total $ 1,375,000 2025 Credit Agreement On April 8, 2025, we entered into a credit agreement (the "2025 Credit Agreement") and borrowed $ 500.0 million under a senior unsecured term loan credit facility (the "2025 Term Facility"). We used the proceeds from the 2025 Term Facility borrowing to repay the outstanding balance under the 2022 Revolving Facility (as defined below). The 2025 Credit Agreement also provides for a $ 1.0 billion senior unsecured revolving credit facility (the "2025 Revolving Facility"). The 2025 Revolving Facility, together with the 2025 Term Facility, are referred to as the "2025 Credit Facilities". The 2025 Term Facility matures on April 8, 2028, and the 2025 Revolving Facility matures on April 8, 2030. The 2025 Revolving Facility provides for up to $ 100.0 million in the form of letters of credit and up to $ 100.0 million in the form of swingline loans. We may seek additional commitments of up to $ 1.0 billion under the 2025 Revolving Facility from lenders or other financial institutions. 82 Table of Contents The 2025 Term Facility is subject to scheduled quarterly principal payments, commencing on August 31, 2025, with each quarterly principal payment equal to 1.25 % of the original principal amount of the 2025 Term Facility. The 2025 Credit Facilities are not otherwise subject to any other mandatory repayments. We may voluntarily prepay loans under the 2025 Credit Facilities at any time without premium or penalty. Prepayments of the 2025 Term Facility shall be applied to reduce the subsequent scheduled quarterly principal payments in direct order of maturity. During fiscal 2025, we repaid $ 125.0 million under the 2025 Term Facility. This included $ 68.8 million to satisfy all scheduled quarterly principal payments from loan inception through maturity, eliminating any future mandatory quarterly principal payment requirements. The remaining $ 56.2 million was made as a voluntary prepayment. From the effective date of the 2025 Revolving Facility through August 31, 2025, we have had no borrowings under the 2025 Revolving Facility. From the borrowing date through August 31, 2025, the outstanding borrowings under the 2025 Credit Facilities bore interest at a rate equal to the applicable one-month Term Secured Overnight Financing Rate ("SOFR") plus a 0.975 % spread (comprised of a 0.875 % interest rate margin, based on a pricing grid determined by reference to our senior unsecured non-credit enhanced long-term debt rating and our total leverage ratio, plus a 0.1 % credit spread adjustment). We pay a commitment fee on the daily unused amount of the 2025 Revolving Facility using a pricing grid based on our senior unsecured non-credit enhanced long-term debt rating and our total leverage ratio. The commitment fee remained consistent at 0.1 % through August 31, 2025. Debt issuance costs related to the 2025 Credit Facilities were $ 3.4 million. These debt issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the debt liability for the 2025 Term Facility and within Other assets for the 2025 Revolving Facility. Debt issuance costs are amortized to Interest expense in the Consolidated Statements of Income on a straight-line basis over the contractual term of the debt (which approximates the effective interest method for the 2025 Term Facility). The 2025 Credit Agreement contains usual and customary event of default provisions for facilities of this type, which are subject to usual and customary grace periods and materiality thresholds. If an event of default occurs under the 2025 Credit Agreement, the lenders may, among other things, terminate their commitments and declare all outstanding borrowings immediately due and payable. The 2025 Credit Agreement contains usual and customary affirmative and negative covenants for facilities of this type, including a financial covenant requiring maintenance of a total leverage ratio of no greater than 3.75 to 1.00 as of the last day of each fiscal quarter (subject to an increase to 4.25 to 1.00 for five consecutive fiscal quarters in connection with certain material acquisitions). We were in compliance with all covenants and requirements of the 2025 Credit Agreement as of August 31, 2025. 2022 Credit Agreement On March 1, 2022, we entered into a credit agreement (the "2022 Credit Agreement") and borrowed $ 1.0 billion under a senior unsecured term loan credit facility (the "2022 Term Facility") and $ 250.0 million of the available $ 500.0 million under a senior unsecured revolving credit facility (the "2022 Revolving Facility"). The 2022 Revolving Facility, together with the 2022 Term Facility, are referred to as the "2022 Credit Facilities". On January 31, 2025, we entered into a joinder agreement to our 2022 Credit Agreement pursuant to which commitments under the 2022 Revolving Facility were increased by $ 100.0 million, to a total of $ 600.0 million. All other terms of the 2022 Credit Agreement remained unchanged. The 2022 Term Facility, originally due to mature on March 1, 2025, was repaid in full following $ 125.0 million of repayments made during the six months ended February 28, 2025. During fiscal 2025, we borrowed $ 305.0 million and repaid $ 555.0 million under the 2022 Revolving Facility. The 2022 Credit Agreement was terminated on April 8, 2025, concurrent with entering into the 2025 Credit Agreement. Borrowings previously outstanding under the 2022 Credit Facilities bore interest at a rate equal to the applicable one-month Term SOFR plus a spread, using a debt leverage pricing grid and a credit spread adjustment (with total spread ranging from 0.975 % to 1.1 % over the term of the debt). Interest Rate Swap Agreements We leverage interest rate swap agreements to manage our floating interest rate exposure with a fixed interest rate. Our interest rate swap agreements are designated as cash flow hedges at inception. 83 Table of Contents 2025 Swap Agreement On April 24, 2025, we entered into an interest rate swap agreement ("2025 Swap Agreement") with a notional amount of $ 200.0 million to hedge a portion of our outstanding floating SOFR debt with a fixed interest rate of 4.086 %. The notional amount of the 2025 Swap Agreement declines by $ 50.0 million on a quarterly basis beginning May 31, 2025 and matures on February 28, 2026. As of August 31, 2025, the notional amount of the 2025 Swap Agreement was $ 100.0 million. 2024 Swap Agreement On March 1, 2024, we entered into an interest rate swap agreement ("2024 Swap Agreement") with a notional amount of $ 200.0 million to hedge a portion of our outstanding floating SOFR debt with a fixed interest rate of 5.145 %. The notional amount of the 2024 Swap Agreement declined by $ 50.0 million on a quarterly basis beginning May 31, 2024. The 2024 Swap Agreement matured on February 28, 2025. 2022 Swap Agreement On March 1, 2022, we entered into an interest rate swap agreement ("2022 Swap Agreement") with a notional amount of $ 800.0 million to hedge a portion of our outstanding floating SOFR debt with a fixed interest rate of 1.162 %. The notional amount of the 2022 Swap Agreement declined by $ 100.0 million on a quarterly basis beginning May 31, 2022. The 2022 Swap Agreement matured on February 28, 2024. Refer to Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk , in this Annual Report on Form 10-K, for further discussion of our exposure to interest rate risk on our outstanding floating rate debt. Senior Notes On March 1, 2022, we completed a public offering issuing $ 500.0 million of 2.900 % Senior Notes due March 1, 2027 (the "2027 Notes") and $ 500.0 million of 3.450 % Senior Notes due March 1, 2032 (the "2032 Notes" and, together with the 2027 Notes, the "Senior Notes"). The Senior Notes were issued pursuant to an indenture, dated as of March 1, 2022, by and between us and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"), as supplemented by the supplemental indenture, dated as of March 1, 2022, between us and the Trustee (the "Supplemental Indenture"). The Senior Notes were issued at an aggregate discount of $ 2.8 million and we incurred approximately $ 9.1 million in debt issuance costs during fiscal 2022. Debt discounts and debt issuance costs are presented in the Consolidated Balance Sheets as a net direct deduction from the carrying amount of the debt liability. The debt discounts and debt issuance costs are amortized to Interest expense in the Consolidated Statements of Income over the contractual term of the debt, leveraging the effective interest method. Interest on the Senior Notes is payable semiannually in arrears on March 1 and September 1 of each year. We may redeem the Senior Notes, in whole or in part, at any time at specified redemption prices, plus any accrued and unpaid interest. Upon the occurrence of a change of control triggering event (as defined in the Supplemental Indenture), we must offer to repurchase the Senior Notes at 101 % of their principal amount, plus any accrued and unpaid interest. Interest Expense The following table presents the interest expense on our outstanding debt which is a component of Interest expense in our Consolidated Statements of Income: Years Ended August 31, (in thousands) 2025 2024 2023 Interest expense on outstanding debt (1) $ 57,749 $ 65,412 $ 66,283 (1) Interest expense on our outstanding debt includes the related amortization of debt issuance costs and debt discounts. Interest expense is net of the effects of our interest rate swap agreements. 12. COMMITMENTS AND CONTINGENCIES Commitments represent obligations, such as those for future purchases of goods or services that are not yet recorded on the balance sheet as liabilities. We record liabilities for commitments when incurred (i.e., when the goods or services are received). 84 Table of Contents Except for income tax contingencies, we accrue for contingencies when we believe that a loss is probable and the amount can be reasonably estimated. Judgment is required to determine both the probability and the estimated amount of loss. If the reasonable estimate of a probable loss is a range, we record an accrual for the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. We review these accruals on a quarterly basis and adjust, as necessary, to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other current information. Contingent gains are recognized only when realized. Income tax contingencies related to uncertain tax positions are accounted for in accordance with applicable accounting guidance. Refer to Note 2, Summary of Significant Accounting Policies - Income Taxes for further details. Purchase Commitments with Suppliers and Vendors Purchase obligations represent our legally-binding agreements to purchase fixed or minimum quantities at determinable prices. As of August 31, 2025 and 2024, we had total purchase obligations with suppliers and vendors of approximately $ 352 million and $ 383 million, respectively. Our total purchase obligations as of August 31, 2025 and 2024 primarily related to hosting services, acquisition of data and, to a lesser extent, third-party software providers. We also have contractual obligations related to our lease liabilities and outstanding debt. Refer to Note 10, Leases and Note 11, Debt, for information regarding our lease commitments and outstanding debt obligations, respectively. Letters of Credit From time to time, we are required to obtain letters of credit in the ordinary course of business. Our 2025 Revolving Facility allows for the availability of up to $ 100.0 million in the form of letters of credit. We have not obtained any letters of credit under the 2025 Revolving Facility since its inception. As of August 31, 2025 and 2024, we had $ 0.7 million and $ 0.4 million of standby letters of credit outstanding, respectively. No liabilities related to these arrangements are reflected in the Consolidated Balance Sheets. Refer to Note 11, Debt, for information regarding the 2025 Revolving Facility. Contingencies Legal Matters In the normal course of our business, we are, or may be, engaged in various legal proceedings, claims, litigation and regulatory proceedings. In view of the uncertainty inherent in litigation and regulatory matters, we cannot predict the eventual outcome of such matters or the timing of their resolution, or in most cases reasonably estimate what the eventual judgments, damages, fines, penalties or impact of activity (if any) restrictions may be. While we cannot predict the outcome of these matters, based on information available at August 31, 2025, our management believes that the ultimate outcome of these unresolved matters against us, individually or in the aggregate, will not have a material adverse effect on our consolidated financial position, our results of operations or our cash flows. Income Taxes As a multinational company operating in many states and countries, we are routinely audited by various taxing authorities and have reserved for potential adjustments to our provision for income taxes that may result from examinations by, or any negotiated settlements with, these tax authorities. We believe that the final outcome of these examinations or settlements will not have a material effect on our consolidated financial position, results of operations or our cash flows. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of tax benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state and foreign income tax liabilities are less than the ultimate assessment, additional expense would result. Sales Tax Matters During August 2019 through February 2024, we received various assessment and audit notices from the Commonwealth of Massachusetts Department of Revenue (the "Commonwealth") with respect to sales taxes, interest and underpayment penalties relating to the tax periods from January 1, 2006 through December 31, 2023 ("Sales Tax Dispute"). We entered into an agreement with the Commonwealth on November 26, 2024 which fully resolved all matters relating to the Sales Tax Dispute. 85 Table of Contents During the first quarter of fiscal 2025 and the fourth quarter of fiscal 2024, we took charges of approximately $ 2.4 million and $ 54.0 million, respectively, related to this dispute and made corresponding payments of $ 56.4 million to the Commonwealth during the first quarter of fiscal 2025. In addition to reserves taken in prior fiscal years, this brought our total charge and cash payments with respect to this matter to approximately $ 66.2 million. 13. STOCKHOLDERS' EQUITY The following table presents the shares of common stock repurchased under our share repurchase program and acquired from holders of our stock-based awards upon vesting to satisfy tax withholding requirements: Share Repurchases (in thousands, except share data) Years Ended August 31, 2025 2024 2023 Repurchases of common stock under the share repurchase program 684,960 537,800 430,350 Total cost of common stock repurchased under the share repurchase program (1) $ 300,457 $ 235,235 $ 176,720 Repurchases of common stock to satisfy tax withholding requirements due upon vesting of stock-based awards 35,791 37,589 32,444 Total cost of repurchases of common stock to satisfy withholding requirements due upon vesting of stock-based awards $ 16,242 $ 16,659 $ 13,710 (1) For fiscal 2025, 2024, and 2023, amount excludes a 1% excise tax of $ 3.0 million, $ 1.7 million and $ 0.9 million, respectively, on corporate stock repurchases required under the Inflation Reduction Act of 2022. We may repurchase shares of our common stock under our share repurchase program from time-to-time in the open market or via privately negotiated transactions, subject to market conditions. We suspended our share repurchase program beginning in the second quarter of fiscal 2022, with the exception of potential minor repurchases to offset dilution from grants of equity awards or repurchases to satisfy withholding tax obligations due upon the vesting of stock-based awards, to prioritize the repayment of debt under the 2022 Credit Facilities. We resumed our share repurchase program in the third quarter of fiscal 2023. There is no defined number of shares to be repurchased over a specified timeframe through the life of our share repurchase program. On September 17, 2024, our Board of Directors authorized up to $ 300 million for share repurchases during fiscal 2025. This authorization expired upon the conclusion of fiscal 2025 and was not available for share repurchases after that date. On June 17, 2025, our Board of Directors authorized up to $ 400 million for share repurchases on or after September 1, 2025 through September 30, 2026. In addition to our share repurchase program, we also acquire shares of our common stock from holders of our stock-based awards to satisfy withholding tax requirements due at vesting. Shares acquired from these holders do not reduce the amount authorized for repurchase under the share repurchase program. Refer to Part II, Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities , of this Annual Report on Form 10-K for further discussion on our share repurchase program. Equity-based Awards Refer to Note 15, Stock-Based Compensation, for more information on equity awards issued during fiscal 2023 through fiscal 2025. 86 Table of Contents Dividends Our Board of Directors approved the following dividends: Year Ended Dividends per Share of Common Stock Record Date Total Amount (in thousands) Payment Date Fiscal 2025 First Quarter $ 1.04 November 29, 2024 $ 39,572 December 19, 2024 Second Quarter $ 1.04 February 28, 2025 39,511 March 20, 2025 Third Quarter $ 1.10 May 30, 2025 41,644 June 18, 2025 Fourth Quarter $ 1.10 August 29, 2025 41,410 September 18, 2025 Total Dividends $ 162,137 Fiscal 2024 First Quarter $ 0.98 November 30, 2023 $ 37,299 December 21, 2023 Second Quarter $ 0.98 February 29, 2024 37,360 March 21, 2024 Third Quarter $ 1.04 May 31, 2024 39,589 June 20, 2024 Fourth Quarter $ 1.04 August 30, 2024 39,470 September 19, 2024 Total Dividends $ 153,718 Fiscal 2023 First Quarter $ 0.89 November 30, 2022 $ 34,010 December 15, 2022 Second Quarter $ 0.89 February 28, 2023 34,099 March 16, 2023 Third Quarter $ 0.98 May 31, 2023 37,442 June 15, 2023 Fourth Quarter $ 0.98 August 31, 2023 37,265 September 21, 2023 Total Dividends $ 142,816 In the third quarter of fiscal 2025, our Board of Directors approved a 6 % increase in the regular quarterly dividend from $ 1.04 to $ 1.10 per share. Future cash dividend payments are subject to final determination by our Board of Directors and will depend on our earnings, capital requirements, financial condition and other relevant factors. Accumulated Other Comprehensive Loss The components of AOCL as of August 31, 2025 and August 31, 2024 were as follows: (in thousands) August 31, 2025 August 31, 2024 Accumulated unrealized gains (losses) on cash flow hedges, net of tax $ 2,143 $ 1,843 Accumulated foreign currency translation adjustments ( 65,891 ) ( 81,456 ) Total AOCL $ ( 63,748 ) $ ( 79,613 ) 14. EARNINGS PER SHARE Basic earnings per common share ("Basic EPS") is computed by dividing net income by the number of weighted average common shares outstanding during the fiscal year. Diluted earnings per common share ("Diluted EPS") is calculated by using the treasury stock method which assumes the issuance of common stock for all potentially dilutive stock-based awards. 87 Table of Contents The following is a reconciliation of our Basic and Diluted EPS computations: Years Ended August 31, (in thousands, except per share data) 2025 2024 2023 Numerator Net income used for calculating Basic EPS and Diluted EPS $ 597,040 $ 537,126 $ 468,173 Denominator Weighted average common shares used in the calculation of Basic EPS 37,924 38,059 38,194 Common stock equivalents associated with stock-based compensation plans 461 559 704 Shares used in the calculation of Diluted EPS 38,385 38,618 38,898 Basic EPS $ 15.74 $ 14.11 $ 12.26 Diluted EPS $ 15.55 $ 13.91 $ 12.04 The following table presents the potential common shares that were excluded from Diluted EPS as they relate to stock-based awards that were antidilutive or subject to performance conditions which have not been satisfied by the end of each fiscal year: Years Ended August 31, (in thousands) 2025 2024 2023 Stock options 791 381 566 Restricted Stock Awards 87 88 59 15. STOCK-BASED COMPENSATION Our stock-based compensation expense consists of stock options, RSUs, PSUs and purchases of common stock under the ESPP. Stock-based Compensation Expense The following table presents the stock-based compensation expense for the fiscal years presented: Years Ended August 31, (in thousands) 2025 2024 2023 Stock-based compensation expense $ 61,229 $ 63,501 $ 62,038 There were no stock-based compensation costs capitalized during fiscal 2023 through fiscal 2025. As of August 31, 2025, $ 119.3 million of total unrecognized stock-based compensation expense related to non-vested stock-based awards is expected to be recognized over the remaining weighted average vesting period of 2.9 years. 88 Table of Contents Stock Option Awards A summary of stock option activity is as follows: Number Outstanding (thousands) Weighted Average Exercise Price Per Share Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (millions) (1) Weighted Average Remaining Contractual Life (years) Outstanding as of August 31, 2022 2,089 $ 253.85 Granted – employees 268 $ 426.22 $ 125.57 Granted – non-employee directors 5 $ 428.70 $ 128.84 Exercised (2) ( 318 ) $ 181.67 Forfeited ( 56 ) $ 373.04 Outstanding as of August 31, 2023 1,988 $ 285.95 Granted – employees 243 $ 436.61 $ 132.59 Granted – non-employee directors 6 $ 462.23 $ 132.78 Exercised (2) ( 376 ) $ 213.62 Forfeited ( 38 ) $ 404.47 Outstanding as of August 31, 2024 1,823 $ 319.07 Granted – employees 203 $ 459.17 $ 133.21 Granted – non-employee directors 6 $ 453.98 $ 144.90 Exercised (2) ( 300 ) $ 239.69 Forfeited ( 47 ) $ 427.76 Outstanding as of August 31, 2025 1,685 (3) $ 347.50 $ 101.1 5.6 Options vested and exercisable as of August 31, 2025 1,018 $ 293.48 $ 97.7 4.2 Options expected to vest as of August 31, 2025 615 $ 428.64 $ 3.4 7.6 (1) The aggregate intrinsic value represents the difference between our closing stock price as of August 29, 2025 of $ 373.32 and the exercise price, multiplied by the number of options exercisable as of that date. (2) The total pre-tax intrinsic value of stock options exercised during fiscal 2025, 2024 and 2023 was $ 66.5 million, $ 89.5 million and $ 77.5 million, respectively. (3) As of August 31, 2025, 1,685,011 shares underlying the stock option awards were unvested and outstanding, resulting in unamortized stock-based compensation expense of $ 48.4 million that is expected to be recognized over the remaining weighted average vesting period of 2.9 years. During fiscal 2025, 2024 and 2023, the total fair value of stock options vested was $ 23.2 million, $ 20.5 million and $ 18.9 million, respectively. Employee Stock Option Awards Our annual grant of employee stock options during the first quarter of each fiscal year makes up the majority of our employee stock options granted under the LTIP in each fiscal year. The following table presents the weighted average inputs used in the binomial model to estimate the grant-date fair value of the employee stock options granted: 2025 2024 2023 Stock options granted (1) 203,114 243,379 268,185 Risk-free interest rate 4.31 % - 4.87 % 3.78 % - 5.53 % 3.37 % - 5.05 % Expected life (years) 6.6 6.6 6.6 Expected volatility 23 % - 25 % 19 % - 25 % 24 % - 25 % Dividend yield 0.95 % 0.90 % 0.83 % (1) Includes the annual employee grant on November 1, 2024, November 1, 2023 and November 1, 2022 of 200,693 , 242,371 and 266,051 stock options, respectively. The majority of the stock options granted, including the annual employee grants, vest 20 % annually on the anniversary date of the grant and are fully vested after five years , expiring ten years from the date of grant. 89 Table of Contents Restricted Stock Awards A summary of Restricted Stock Award activity is as follows: (in thousands, except per award data) Number Outstanding Weighted Average Grant Date Fair Value Per Award Balance at August 31, 2022 233 $ 338.87 Granted – employee Restricted Stock Awards (1) 97 $ 416.58 Performance adjustment – employee PSUs (2) 9 $ 245.67 Granted – non-employee directors RSUs 2 $ 425.06 Vested (4) ( 83 ) $ 291.80 Forfeited ( 14 ) $ 369.71 Balance at August 31, 2023 244 $ 381.15 Granted – employee Restricted Stock Awards (1) 111 $ 423.57 Performance adjustment – employee PSUs (2) 14 $ 306.33 Granted – non-employee directors RSUs 2 $ 458.23 Vested (4) ( 95 ) $ 330.00 Forfeited ( 14 ) $ 405.37 Balance at August 31, 2024 262 $ 412.47 Granted – employee Restricted Stock Awards (1) 127 $ 444.30 Performance adjustment – employee PSUs (2) 7 $ 424.01 Granted – non-employee directors RSUs 3 $ 449.72 Vested (4) ( 89 ) $ 403.43 Forfeited ( 17 ) $ 420.83 Outstanding as of August 31, 2025 293 (3) $ 429.19 (1) During fiscal 2025, 2024 and 2023, we granted 92,840 RSUs and 34,479 PSUs; 74,456 RSUs and 37,008 PSUs; and 63,009 RSUs and 34,482 PSUs, respectively. (2) Additional PSUs were granted during fiscal 2025, 2024 and 2023 based on performance above the specified target level of achievement for PSUs granted on November 1, 2021, November 9, 2020 and November 1, 2019, respectively. (3) As of August 31, 2025, 292,716 shares underlying the Restricted Stock Awards were unvested and outstanding, which resulted in unamortized stock-based compensation expense of $ 70.9 million that is expected to be recognized over the remaining weighted average vesting period of 2.9 years. (4) During fiscal 2025, 2024 and 2023, the total fair value of RSUs vested was $ 21.7 million, $ 17.7 million and $ 14.5 million, respectively, and for PSUs vested was $ 14.4 million, $ 13.6 million and $ 9.8 million, respectively. Employee Restricted Stock Awards Our annual grant of employee Restricted Stock Awards during the first quarter of each fiscal year makes up the majority of our employee Restricted Stock Awards granted under the LTIP in each fiscal year. These awards entitle the holders to shares of common stock as the Restricted Stock Awards vest. For unvested Restricted Stock Awards, holders are not entitled to dividends declared on the underlying shares. The majority of the RSUs granted vest 20 % annually on the anniversary date of the grant and are fully vested after five years . The majority of the PSUs granted cliff vest on the third anniversary of the grant date. The ultimate number of common shares that may be earned pursuant to our PSU awards depends on the level of our achievement of stated financial performance objectives. The achievement range was 0 % to 200 % for the November 1, 2024 and November 1, 2023 annual grants and 0 % to 150 % for the November 1, 2022 annual grant. Stock-based Awards Available for Grant As of August 31, 2025, we had 3.3 million employee stock-based awards available for grant under the LTIP and 0.2 million non-employee director stock-based awards available for grant under the Director Plan. In accordance with the LTIP and Director Plan, each Restricted Stock Award granted or canceled/forfeited is equivalent to 2.5 shares deducted from or added back to, respectively, the aggregate number of stock-based awards available for grant. 90 Table of Contents 16. EMPLOYEE BENEFIT PLANS Defined Contribution Plan Our 401(k) Plan is a defined contribution plan covering all full-time, U.S. employees of FactSet and is subject to the provisions of the Employee Retirement Income Security Act of 1974 and the Code. Each year, participants may contribute up to 60 % of their eligible annual compensation, subject to annual limitations established by the Code. We match up to 4 % of employees’ earnings, capped at the Internal Revenue Service annual maximum. Company matching contributions are subject to a five-year graduated vesting schedule. All full-time, U.S. employees are eligible for the matching contribution by FactSet. We contributed $ 14.8 million, $ 14.2 million and $ 16.6 million in matching contributions to employee 401(k) accounts during fiscal 2025, 2024 and 2023, respectively. 17. SEGMENT INFORMATION Operating segments are defined as components of an enterprise that have the following characteristics: (i) they engage in business activities from which they may earn revenue and incur expense, (ii) their operating results are regularly reviewed by the chief operating decision maker ("CODM") for resource allocation decisions and performance assessment, and (iii) their discrete financial information is available. Our Chief Executive Officer functions as our CODM. We have three operating segments: Americas, EMEA and Asia Pacific. This is how our CODM manages our business and the geographic markets in which we operate. These operating segments are consistent with our reportable segments. Our CODM uses segment operating income to assess performance and allocate resources to each segment. The CODM compares the actual results of each segment with one another, as well as, to prior periods. The Americas segment primarily sells to clients throughout North, Central, and South America. The EMEA segment primarily sells to clients in Europe, the Middle East, and Africa. The Asia Pacific segment primarily sells to clients in Asia and Australasia. Segment revenues reflect sales to our clients based on the geographic region where the sale originated. Each segment records expenses related to its individual operations with the exception of expenditures associated with our data centers, third-party data costs and corporate headquarters charges, which are recorded by the Americas segment and are not allocated to the other segments. The expenses incurred at our global centers of excellence ("COEs"), primarily located in India and the Philippines, are allocated to each segment based on their respective percentage of revenues as this reflects the benefits provided by each segment. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. 91 Table of Contents The following tables reflect the results of operations of our segments: (in thousands) Year Ended August 31, 2025 Americas EMEA Asia Pacific Total Revenues $ 1,506,108 $ 580,284 $ 235,356 $ 2,321,748 Operating expenses (1) 1,200,145 306,282 67,018 1,573,445 Operating income $ 305,963 $ 274,002 $ 168,338 $ 748,303 Total other income (expense), net ( 27,345 ) Income before income taxes $ 720,958 Other segment disclosures Depreciation and amortization $ 141,961 $ 7,857 $ 7,873 $ 157,691 Stock-based compensation $ 47,441 $ 9,182 $ 4,606 $ 61,229 Capital expenditures (2) $ 95,581 $ 5,924 $ 7,301 $ 108,806 Year Ended August 31, 2024 Americas EMEA Asia Pacific Total Revenues $ 1,419,901 $ 563,128 $ 220,027 $ 2,203,056 Operating expenses (1) 1,158,111 280,165 63,481 1,501,757 Operating income $ 261,790 $ 282,963 $ 156,546 $ 701,299 Total other income (expense), net ( 49,796 ) Income before income taxes $ 651,503 Other segment disclosures Depreciation and amortization $ 110,147 $ 7,171 $ 7,869 $ 125,187 Stock-based compensation $ 51,601 $ 8,007 $ 3,893 $ 63,501 Capital expenditures (2) $ 77,417 $ 3,835 $ 4,429 $ 85,681 Year Ended August 31, 2023 Americas EMEA Asia Pacific Total Revenues $ 1,335,484 $ 539,843 $ 210,181 $ 2,085,508 Operating expenses (1) 1,096,046 296,815 63,440 1,456,301 Operating income $ 239,438 $ 243,028 $ 146,741 $ 629,207 Total other income (expense), net ( 45,253 ) Income before income taxes $ 583,954 Other segment disclosures Depreciation and amortization $ 89,602 $ 7,305 $ 8,477 $ 105,384 Stock-based compensation $ 51,574 $ 7,280 $ 3,184 $ 62,038 Capital expenditures (2) $ 54,609 $ 2,317 $ 3,860 $ 60,786 (1) Operating expenses consist of Cost of services and SG&A costs. (2) Capital expenditures include purchases of PPE and capitalized internal-use software. 92 Table of Contents Segment Total Assets The following table reflects the total assets for our segments: As of August 31, (in thousands) 2025 2024 2023 Segment Assets Americas $ 3,523,467 $ 3,178,800 $ 3,148,192 EMEA 610,364 600,206 558,393 Asia Pacific 170,441 276,034 256,337 Total assets $ 4,304,272 $ 4,055,040 $ 3,962,922 Geographic Information The following tables reflect our revenues and long-lived assets, split geographically by our country of domicile (the United States) and other countries where major subsidiaries are domiciled. Geographic Revenues The following table sets forth revenues by geography, attributed to countries based on the location of the client: (in thousands) Years ended August 31, 2025 2024 2023 Revenues United States $ 1,415,864 $ 1,340,350 $ 1,265,002 United Kingdom 231,009 221,850 223,809 Other European Countries 349,275 341,278 316,034 All Other Countries 325,600 299,578 280,663 Total revenues $ 2,321,748 $ 2,203,056 $ 2,085,508 Geographic Long-Lived Assets The following table sets forth long-lived assets by geographic area. Long-lived assets consist of PPE, net and Lease ROU assets, net and excludes goodwill, intangible assets, deferred taxes and other assets. (in thousands) August 31, 2025 2024 Long-lived Assets United States $ 103,545 $ 108,208 Philippines 38,572 46,191 India 19,482 22,159 United Kingdom 16,869 10,243 All Other Countries 28,511 26,206 Total long-lived assets $ 206,979 $ 213,007 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.