Factset Research Systems FDS · USD

SEGMENT INFORMATIONOperating 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.

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.

COMMITMENTS AND CONTINGENCIESCommitments 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). 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 VendorsPurchase 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 CreditFrom 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.

DEBTWe 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 DateContractual Maturity DateAugust 31, 2025August 31, 2024Current debt2022 Term Facility(1)3/1/20223/1/2025$— $125,000 Unamortized debt issuance costs— (158)Total Current debt$— $124,842 Long-term debt2022 Revolving Facility(2)3/1/20223/1/2027$— $250,000 2025 Term Facility4/8/20254/8/2028375,000 — 2027 Notes3/1/20223/1/2027500,000 500,000 2032 Notes3/1/20223/1/2032500,000 500,000 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 $1,365,973 (1) The 2022 Term Facility was repaid in full on February 28, 2025.(2) The 2022 Revolving Facility was repaid in full and terminated on April 8, 2025.(3) Amount excludes the debt issuance costs related to the 2025 Revolving Facility which are presented within Other assets on the Consolidated Balance Sheets.As of August 31, 2025, annual maturities on our debt obligations, based on contractual maturity dates, were as follows:(in thousands) MaturitiesFiscal Years Ended August 31,2026$— 2027500,000 2028375,000 2029— 2030— Thereafter500,000 Total$1,375,000 2025 Credit AgreementOn 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.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.

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 RateThe provision for income taxes and the effective tax rate are as follows:(in thousands)Years ended August 31,202520242023U.S. operations$479,288 $416,093 $382,702 Non-U.S. operations241,670 235,410 201,252 Income before income taxes$720,958 $651,503 $583,954 U.S. operations$45,591 $55,219 $54,337 Non-U.S. operations78,327 59,158 61,444 Provision for income taxes$123,918 $114,377 $115,781 Effective tax rate17.2 %17.6 %19.8 %The components of the provision for income taxes consist of the following:(in thousands)Years ended August 31,202520242023CurrentU.S. federal$16,255 $46,903 $38,625 U.S. state and local27,594 40,926 38,600 Non-U.S.83,614 58,568 69,675 Total current taxes$127,463 $146,397 $146,900 DeferredU.S. federal$(1,132)$(26,962)$(17,235)U.S. state and local2,875 (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. 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)202520242023Tax at U.S. Federal statutory tax rate21.0 %21.0 %21.0 %Increase (decrease) in taxes resulting from:State and local taxes, net of U.S. federal income tax benefit3.1 2.2 3.1 Foreign income at other than U.S. rates1.7 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 positions1.4 2.3 0.5 One-time adjustment(1)— — 3.8 Other, net(0.4)0.3 (0.3)Effective tax rate17.2 %17.6 %19.

STOCK-BASED COMPENSATIONOur stock-based compensation expense consists of stock options, RSUs, PSUs and purchases of common stock under the ESPP.Stock-based Compensation ExpenseThe following table presents the stock-based compensation expense for the fiscal years presented:Years Ended August 31,(in thousands) 202520242023Stock-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.Stock Option AwardsA summary of stock option activity is as follows:Number Outstanding (thousands)Weighted AverageExercise Price Per ShareWeighted Average Grant Date Fair ValueAggregate Intrinsic Value (millions)(1)Weighted Average Remaining Contractual Life (years)Outstanding as of August 31, 20222,089 $253.85 Granted – employees268 $426.22 $125.57 Granted – non-employee directors5 $428.70 $128.84 Exercised(2)(318)$181.67 Forfeited(56)$373.04 Outstanding as of August 31, 20231,988 $285.95 Granted – employees243 $436.61 $132.59 Granted – non-employee directors6 $462.23 $132.78 Exercised(2)(376)$213.62 Forfeited(38)$404.47 Outstanding as of August 31, 20241,823 $319.07 Granted – employees203 $459.17 $133.21 Granted – non-employee directors6 $453.98 $144.90 Exercised(2)(300)$239.69 Forfeited(47)$427.76 Outstanding as of August 31, 20251,685 (3)$347.50 $101.1 5.6Options vested and exercisable as of August 31, 20251,018 $293.48 $97.7 4.2Options expected to vest as of August 31, 2025615 $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.

LEASESOur 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. 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 LeasePaymentsFiscal Years Ended August 31,2026$41,550 202740,968 202836,685 202931,068 203025,891 Thereafter41,039 Total minimum lease payments$217,201 Less: Imputed interest26,952 Total lease liabilities$190,249 The following table includes components of our occupancy costs:Years ended August 31,(in thousands) 202520242023Operating 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.

ACQUISITIONSOur 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. 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 ValueAcquisition Date Useful LifeAmortization Method(in thousands)(in years)Current assets$3,893 Amortizable intangible assets Software technology65,600 12 yearsStraight-line Client relationships8,800 17 yearsStraight-line Trade names3,400 10 yearsStraight-lineGoodwill164,787 Other assets487 Current liabilities Deferred revenues(799) Other current liabilities(2,386)Other liabilities(600)Total purchase price$243,182 Goodwill totaling $164.