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SS&C Technologies Releases Q4 and Full Year 2024 Earnings Results

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Q4 2024 GAAP revenue $1,529.7 million, up 8.4%, Fully Diluted GAAP Earnings Per Share $0.98, up 27.3%

Record Adjusted revenue $1,530.7 million, up 8.4%, Adjusted Diluted Earnings Per Share $1.58, up 25.4%

WINDSOR, Conn., Feb. 6, 2025 /PRNewswire/ — SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial and healthcare software and software-enabled services, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions, except per share data):

2024

2023

Change

2024

2023

Change

GAAP Results

Revenue

$1,529.7

$1,411.6

8.4 %

$5,882.0

$5,502.8

6.9 %

Operating income

357.9

334.2

7.1 %

1,343.5

1,208.9

11.1 %

Operating income margin

23.4 %

23.7 %

-30 bps

22.8 %

22.0 %

80 bps

Diluted earnings per share attributable to
SS&C

$0.98

$0.77

27.3 %

$3.00

$2.39

25.5 %

Net income attributable to SS&C

248.2

194.4

27.7 %

760.5

607.1

25.3 %

Adjusted Non-GAAP Results (defined in Notes 1 – 4 below)

Adjusted revenue

$1,530.7

$1,412.3

8.4 %

$5,885.7

$5,505.8

6.9 %

Adjusted operating income attributable to
SS&C

581.9

545.2

6.7 %

2,212.4

2,041.4

8.4 %

Adjusted operating income margin

38.0 %

38.6 %

-60 bps

37.6 %

37.1 %

50 bps

Adjusted diluted earnings per share
attributable to SS&C (1)

$1.58

$1.26

25.4 %

$5.41

$4.65

16.3 %

Adjusted consolidated EBITDA attributable
to SS&C

599.1

562.5

6.5 %

2,281.0

2,107.7

8.2 %

Adjusted consolidated EBITDA margin

39.1 %

39.8 %

-70 bps

38.8 %

38.3 %

50 bps

(1) Reflects non-GAAP tax rates of 15.1% and 23.1% for the three and twelve months ended December 31, 2024, respectively. See Note 4 for more information.

Fourth Quarter and Full Year 2024 Highlights:

Q4 2024 GAAP Revenue growth and Adjusted Revenue growth were 8.4 percent.Q4 Adjusted Organic Revenue Growth was 7.0 percent, Financial Services Recurring Revenue Growth was 7.4 percent.SS&C generated net cash from operating activities of $1,388.6 million for the twelve months ended December 31, 2024, up 14.3 percent compared to the same period in 2023.Q4 2024 we bought back 4.9 million shares for $365.7 million, at an average price of $74.46 per share.We paid down $195.0 million in debt in Q4 2024, bringing our net leverage ratio to 2.89 times consolidated EBITDA attributable to SS&C.SS&C reported GAAP net income attributable to SS&C of $248.2 million for Q4 2024, up 27.7 percent and adjusted consolidated EBITDA attributable to SS&C of $599.1 million for Q4 2024, up 6.5 percent.GAAP operating income margin for Q4 2024 was 23.4 percent. Adjusted consolidated EBITDA margin for Q4 2024 was 39.1 percent.

“SS&C ended 2024 with 7.0% Q4 organic revenue growth and record adjusted consolidated EBITDA of $599 million,” says Bill Stone, Chairman and Chief Executive Officer. “We continue to add to our capabilities, integrate our offerings, and unlock cross-sell benefits. Our wins—including lift-outs, geographic expansion, the Battea and FPS Trust acquisitions—span across the world and excite us about 2025.”

Operating Cash Flow

SS&C generated net cash from operating activities of $1,388.6 million for the twelve months ended December 31, 2024, compared to $1,215.1 million for the same period in 2023, a 14.3% increase.  SS&C ended the fourth quarter with $567.1 million in cash and cash equivalents and $7,048.7 million in gross debt.  SS&C’s net debt balance as defined in our credit agreement, which excludes cash and cash equivalents of $155.2 million held at DomaniRx, LLC was $6,636.8 million as of December 31, 2024.  SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 2.89 times consolidated EBITDA attributable to SS&C as of December 31, 2024. SS&C’s net secured leverage ratio stood at 1.69 times consolidated EBITDA attributable to SS&C as of December 31, 2024.

Guidance

Q1 2025

FY 2025

Adjusted Revenue ($M)

$1,474.0 – $1,514.0

$6,085.0 – $6,245.0

Adjusted Net Income attributable to SS&C
($M)

$348.0 – $364.0

$1,431.0 – $1,531.0

Interest Expense1 ($M)

$104.0 – $106.0

$408.0 – $418.0

Adjusted Diluted Earnings per Share
attributable to SS&C

$1.37 – $1.43

$5.64 – $5.96

Cash from Operating Activities ($M)

–

$1,448.0 – $1,548.0

Capital Expenditures (% of revenue)

–

4.1% – 4.5%

Diluted Shares (M)

254.6 – 255.6

253.7 – 256.7

Effective Income Tax Rate (%)

23.0% – 25.0%

23.0% – 25.0%

1Interest expense is net of deferred financing cost amortization and original issue discount

SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.  SS&C is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures.  These items include acquisition transactions and integration, foreign exchange rate changes, as well as other non-cash and other adjustments as defined under the Company’s Credit agreement, that are difficult to predict in advance in order to include in a GAAP estimate.  The unavailable information could have a significant impact on Q1 2025 and FY 2025 GAAP financial results.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures.  See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C’s fourth quarter and full year 2024 earnings call will take place at 5:00 p.m. eastern time today, February 6, 2025.  The call will discuss fourth quarter and full year 2024 results and 2025 guidance.  Interested parties may dial 888-210-4650 (US and Canada) or 646-960-0327 (International), and request the “SS&C Technologies Fourth Quarter and Full Year 2024 Earnings Conference Call”; conference ID #4673675.  In connection with the earnings call, a presentation will be available on SS&C’s website at www.ssctech.com.  The call will be available for replay via the webcast on SS&C’s website; access: https://investor.ssctech.com/financials/quarterly-results/default.aspx

Certain information contained in this press release relating to, among other things, the Company’s financial guidance for the first quarter and full year of 2025 constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “may”, “assume”, “intend”, “will”, “continue”, “opportunity”, “predict”, “potential”, “future”, “guarantee”, “likely”, “target”, “indicate”, “would”, “could” and “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company’s clients operate, the Company’s ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc., the effect of customer consolidation on demand for the Company’s products and services, the increasing focus of the Company’s business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company’s products and services, the intensity of competition with respect to the Company’s products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company’s software-enabled services, risks associated with the Company’s foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators, the Company’s ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company’s joint ventures, changes in accounting standards, risks related to the Company’s substantial indebtedness, the market price of the Company’s stock prevailing from time to time, and the risks discussed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. More than 22,000 financial services and healthcare organizations, from the world’s largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

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SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(in millions, except per share data)

(unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2024

2023

2024

2023

Revenues:

Software-enabled services

$

1,254.0

$

1,145.5

$

4,840.3

$

4,488.3

License, maintenance and related

275.7

266.1

1,041.7

1,014.5

Total revenues

1,529.7

1,411.6

5,882.0

5,502.8

Cost of revenues:

Software-enabled services

669.1

594.6

2,618.8

2,472.0

License, maintenance and related

106.7

97.7

399.6

379.0

Total cost of revenues

775.8

692.3

3,018.4

2,851.0

Gross profit

753.9

719.3

2,863.6

2,651.8

Operating expenses:

Selling and marketing

156.6

139.3

584.2

550.9

Research and development

136.8

118.3

517.7

473.8

General and administrative

102.6

127.5

418.2

418.2

Total operating expenses

396.0

385.1

1,520.1

1,442.9

Operating income

357.9

334.2

1,343.5

1,208.9

Interest expense, net

(113.0)

(119.3)

(451.9)

(469.8)

Other (expense) income, net

(7.6)

5.4

8.9

20.7

Equity in earnings of unconsolidated affiliates, net

3.7

57.4

24.4

100.0

Loss on extinguishment of debt

(1.1)

(1.0)

(31.2)

(2.1)

Income before income taxes

239.9

276.7

893.7

857.7

(Benefit) provision for income taxes

(8.5)

81.8

132.0

249.1

Net income

248.4

194.9

761.7

608.6

Net income attributable to noncontrolling interest

(0.2)

(0.5)

(1.2)

(1.5)

Net income attributable to SS&C common stockholders

$

248.2

$

194.4

$

760.5

$

607.1

Basic earnings per share attributable to SS&C common stockholders

$

1.01

$

0.79

$

3.09

$

2.45

Diluted earnings per share attributable to SS&C common stockholders

$

0.98

$

0.77

$

3.00

$

2.39

Basic weighted-average number of common shares outstanding

246.0

246.7

246.4

248.3

Diluted weighted-average number of common and common equivalent
shares outstanding

254.5

252.1

253.8

254.5

Net income

$

248.4

$

194.9

$

761.7

$

608.6

Other comprehensive (loss) income, net of tax:

Foreign currency exchange translation adjustment

(229.2)

129.3

(115.1)

124.5

Change in defined benefit pension obligation

0.1

(0.7)

0.2

(0.7)

Total other comprehensive (loss) income, net of tax

(229.1)

128.6

(114.9)

123.8

Comprehensive income

19.3

323.5

646.8

732.4

Comprehensive income attributable to noncontrolling interest

(0.2)

(0.5)

(1.2)

(1.5)

Comprehensive income attributable to SS&C common stockholders

$

19.1

$

323.0

$

645.6

$

730.9

 

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

December 31,

December 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

$

567.1

$

432.2

Funds receivable and funds held on behalf of clients

3,162.2

2,615.6

Accounts receivable, net

902.0

799.4

Contract asset

47.6

36.1

Prepaid expenses and other current assets

179.8

165.8

Restricted cash

3.7

2.4

Total current assets

4,862.4

4,051.5

Property, plant and equipment, net

299.6

315.3

Operating lease right-of-use assets

190.6

221.4

Investments

177.4

184.7

Unconsolidated affiliates

328.4

345.2

Contract asset

110.2

99.7

Goodwill

9,218.1

8,969.5

Intangible and other assets, net

3,858.0

3,915.2

Total assets

$

19,044.7

$

18,102.5

Liabilities and Equity

Current liabilities:

Current portion of long-term debt

$

20.0

$

51.5

Client funds obligations

3,162.2

2,615.6

Accounts payable

70.2

80.3

Income taxes payable

23.0

22.3

Accrued employee compensation and benefits

311.5

270.2

Interest payable

31.6

29.4

Other accrued expenses

249.7

232.3

Deferred revenue

486.1

470.3

Total current liabilities

4,354.3

3,771.9

Long-term debt, net of current portion

6,989.6

6,668.5

Operating lease liabilities

175.1

199.1

Other long-term liabilities

191.1

248.7

Deferred income taxes

725.5

816.6

Total liabilities

12,435.6

11,704.8

SS&C stockholders’ equity

6,534.8

6,339.6

Noncontrolling interest

74.3

58.1

Total equity

6,609.1

6,397.7

Total liabilities and equity

$

19,044.7

$

18,102.5

 

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Twelve Months Ended December 31,

2024

2023

Cash flow from operating activities:

Net income

$

761.7

$

608.6

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

680.1

670.4

Equity in earnings of unconsolidated affiliates, net

(24.4)

(100.0)

Distributions received from unconsolidated affiliates

13.1

21.2

Stock-based compensation expense

203.3

159.5

Net gains on investments

(1.7)

(2.2)

Amortization and write-offs of loan origination costs and original issue discounts

8.4

13.5

Loss on extinguishment of debt

31.2

2.1

Loss on sale or disposition of property and equipment

1.6

11.7

Deferred income taxes

(115.4)

(82.9)

Provision for credit losses

15.4

11.4

Changes in operating assets and liabilities, excluding effects from acquisitions:

Accounts receivable

(119.1)

(23.1)

Prepaid expenses and other assets

(20.7)

(2.3)

Contract assets

(25.1)

22.5

Accounts payable

(10.7)

33.0

Accrued expenses and other liabilities

(16.5)

(106.0)

Income taxes prepaid and payable

(13.8)

(38.2)

Deferred revenue

21.2

15.9

Net cash provided by operating activities

1,388.6

1,215.1

Cash flow from investing activities:

Cash paid for business acquisitions, net of cash acquired and asset acquisitions

(647.1)

(34.1)

Additions to property and equipment

(61.4)

(56.6)

Proceeds from sale of property and equipment

4.8

0.1

Additions to capitalized software

(194.3)

(194.9)

Investments in securities

(0.1)

(0.6)

Proceeds from sales / maturities of investments

6.9

8.0

Distributions received from (contributions to) unconsolidated affiliates

25.3

(0.3)

Collection of other non-current receivables

10.2

10.0

Net cash used in investing activities

(855.7)

(268.4)

Cash flow from financing activities:

Cash received from debt borrowings, net of original issue discount

5,545.0

375.0

Repayments of debt

(5,255.1)

(749.7)

Payment of deferred financing fees

(39.4)

—

Net increase in client funds obligations

235.8

1,669.7

Proceeds from exercise of stock options

355.1

115.4

Withholding taxes paid related to equity award net share settlement

(26.2)

(5.1)

Purchases of common stock for treasury

(737.5)

(471.6)

Dividends paid on common stock

(244.9)

(220.9)

Proceeds from noncontrolling interests

14.9

—

Net cash (used in) provided by financing activities

(152.3)

712.8

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(8.7)

1.5

Net increase in cash, cash equivalents and restricted cash

371.9

1,661.0

Cash, cash equivalents and restricted cash, beginning of period

2,998.6

1,337.6

Cash, cash equivalents and restricted cash and cash equivalents, end of period

$

3,370.5

$

2,998.6

Reconciliation of cash, cash equivalents and restricted cash and cash equivalents:

Cash and cash equivalents

$

567.1

$

432.2

Restricted cash and cash equivalents

3.7

2.4

Restricted cash and cash equivalents included in funds receivable and funds held on behalf of
clients

2,799.7

2,564.0

$

3,370.5

$

2,998.6

SS&C Technologies Holdings, Inc. and Subsidiaries
Disclosures Relating to Non-GAAP Financial Measures

Note 1. Reconciliation of Revenues to Adjusted Revenues

Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to deferred revenue and retained earnings related to the adoption of ASC 606.  Adjusted revenues is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of our business.  Adjusted revenues is not a recognized term under generally accepted accounting principles (“GAAP”).  Adjusted revenues does not represent revenues, as that term is defined under GAAP, and should not be considered as an alternative to revenues as an indicator of our operating performance.  Adjusted revenues as presented herein is not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted revenues to revenues, the GAAP measure we believe to be most directly comparable to adjusted revenues.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Revenues

$

1,529.7

$

1,411.6

$

5,882.0

$

5,502.8

ASC 606 adoption impact

—

(0.9)

(2.2)

(3.4)

Purchase accounting adjustments impact on revenue

1.0

1.6

5.9

6.4

Adjusted revenues

$

1,530.7

$

1,412.3

$

5,885.7

$

5,505.8

The following is a breakdown of software-enabled services and license, maintenance and related revenues and adjusted software-enabled services and license, maintenance and related revenues.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Software-enabled services

$

1,254.0

$

1,145.5

$

4,840.3

$

4,488.3

License, maintenance and related

275.7

266.1

1,041.7

1,014.5

Total revenues

$

1,529.7

$

1,411.6

$

5,882.0

$

5,502.8

Software-enabled services

$

1,254.9

$

1,146.2

$

4,844.0

$

4,491.6

License, maintenance and related

275.8

266.1

1,041.7

1,014.2

Total adjusted revenues

$

1,530.7

$

1,412.3

$

5,885.7

$

5,505.8

Note 2. Reconciliation of Operating Income to Adjusted Operating Income

Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other expenses.  Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of our underlying performance.  Adjusted operating income is not a recognized term under GAAP.  Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance.  Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Operating income

$

357.9

$

334.2

$

1,343.5

$

1,208.9

Amortization of intangible assets

157.5

151.3

606.6

596.6

Stock-based compensation

55.4

41.9

203.3

159.4

Purchase accounting adjustments (1)

2.1

3.8

11.6

15.8

ASC 606 adoption impact

0.1

(0.8)

(1.9)

(3.1)

Acquisition related (2)

0.5

1.2

3.2

9.0

Facilities and workforce restructuring

8.0

14.3

41.6

56.8

Other (3)

1.4

0.1

8.6

0.9

Adjusted operating income

$

582.9

$

546.0

$

2,216.5

$

2,044.3

Adjusted operating income attributable to noncontrolling interest (4)

(1.0)

(0.8)

(4.1)

(2.9)

Adjusted operating income attributable to SS&C common
stockholders

$

581.9

$

545.2

$

2,212.4

$

2,041.4

(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(3)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance.

(4)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted operating income attributable to noncontrolling interest represents adjusted operating income based on the ownership interest retained by the respective noncontrolling parties.

Note 3. Reconciliation of Net Income to EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA

EBITDA represents net income before interest expense, income taxes, depreciation and amortization.  Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in calculating covenant compliance, and is EBITDA adjusted for certain items.  Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below.  Adjusted Consolidated EBITDA is calculated by subtracting acquired EBITDA (as defined below) from Consolidated EBITDA. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity’s debt capacity and its ability to service debt.  EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities as indicators of our operating performance.  These measures are not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation of EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA to net income.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Net income

$

248.4

$

194.9

$

761.7

$

608.6

Interest expense, net

113.0

119.3

451.9

469.8

Provision for income taxes

(8.5)

81.8

132.0

249.1

Depreciation and amortization

175.8

170.0

680.1

670.4

EBITDA

528.7

566.0

2,025.7

1,997.9

Stock-based compensation

55.4

41.9

203.3

159.4

Acquired EBITDA and cost savings (1)

—

—

19.4

—

Loss on extinguishment of debt

1.1

1.0

31.2

2.1

Equity in earnings of unconsolidated affiliates, net

(3.7)

(57.4)

(24.4)

(100.0)

Purchase accounting adjustments (2)

1.1

2.6

6.8

9.3

ASC 606 adoption impact

0.1

(0.8)

(1.9)

(3.1)

Foreign currency translation losses (gains)

6.6

(3.9)

8.2

(0.2)

Investment gains (3)

(2.3)

(5.3)

(19.6)

(19.0)

Facilities and workforce restructuring

7.8

14.3

41.4

56.8

Acquisition related (4)

0.6

1.2

3.3

(0.1)

Other (5)

4.7

3.7

11.1

7.5

Consolidated EBITDA

$

600.1

$

563.3

$

2,304.5

$

2,110.6

Acquired EBITDA and cost savings (1)

—

—

(19.4)

—

Adjusted Consolidated EBITDA

$

600.1

$

563.3

$

2,285.1

$

2,110.6

Adjusted Consolidated EBITDA attributable to noncontrolling interest (6)

(1.0)

(0.8)

(4.1)

(2.9)

Adjusted Consolidated EBITDA attributable to SS&C common
stockholders

$

599.1

$

562.5

$

2,281.0

$

2,107.7

(1)

Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in connection with acquisitions.

(2)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisitions (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to increase or decrease rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of acquisitions.

(3)

Investment gains includes unrealized fair value adjustments of investments and dividend income received on investments.

(4)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(5)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(6)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted Consolidated EBITDA attributable to noncontrolling interest represents adjusted Consolidated EBITDA based on the ownership interest retained by the respective noncontrolling parties.

Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share Attributable to SS&C to Adjusted Diluted Earnings Per Share Attributable to SS&C

Adjusted net income and adjusted diluted earnings per share attributable to SS&C represent net income and earnings per share attributable to SS&C before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items.  We consider adjusted net income and adjusted diluted earnings per share attributable to SS&C to be important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments, loss on extinguishment of debt and other items, that are not operational in nature or comparable to those of our competitors.  Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP.  Adjusted net income and adjusted diluted earnings per share do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance.  Adjusted net income and adjusted diluted earnings per share attributable to SS&C as presented herein are not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted net income and adjusted diluted earnings per share attributable to SS&C to net income and diluted earnings per share attributable to SS&C, the GAAP measures we believe to be most directly comparable to adjusted net income and adjusted diluted earnings per share.

Three Months Ended December 31,

Twelve Months Ended
December 31,

(in millions, except per share data)

2024

2023

2024

2023

GAAP – Net income

$

248.4

$

194.9

$

761.7

$

608.6

Amortization of intangible assets

157.5

151.3

606.6

596.6

Amortization of deferred financing costs and original issue discount

1.7

3.3

8.4

13.5

Stock-based compensation

55.4

41.9

203.3

159.4

Loss on extinguishment of debt

1.1

1.0

31.2

2.1

Purchase accounting adjustments (1)

2.1

3.8

11.6

15.8

ASC 606 adoption impact

0.1

(0.8)

(1.9)

(3.1)

Equity in earnings of unconsolidated affiliates, net

(3.7)

(57.4)

(24.4)

(100.0)

Foreign currency translation losses (gains)

6.6

(3.9)

8.2

(0.2)

Investment losses (gains) (2)

0.9

(3.1)

(1.6)

(2.2)

Facilities and workforce restructuring

7.8

14.3

41.4

56.8

Acquisition related (3)

0.6

1.2

3.3

(0.1)

Other (4)

4.9

3.9

11.2

8.6

Income tax effect (5)

(80.2)

(30.7)

(281.9)

(168.2)

Adjusted net income

$

403.2

$

319.7

$

1,377.1

$

1,187.6

Adjusted net income attributable to noncontrolling interest (6)

(1.4)

(1.2)

(5.0)

(3.5)

Adjusted net income attributable to SS&C common stockholders

$

401.8

$

318.5

$

1,372.1

$

1,184.1

Adjusted diluted earnings per share attributable to SS&C common
stockholders

$

1.58

$

1.26

$

5.41

$

4.65

GAAP diluted earnings per share attributable to SS&C common
stockholders

$

0.98

$

0.77

$

3.00

$

2.39

Diluted weighted-average shares outstanding

254.5

252.1

253.8

254.5

(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Investment gains includes unrealized fair value adjustments of investments.  In prior periods, investment gains also included dividend income received on investments.  Prior period amounts have been revised for consistent presentation.

(3)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(4)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(5)

For the twelve-month period ending December 31, 2024, we revised the effective tax rate used to adjust the provision for income taxes for the purpose of computing adjusted net income to 23.1%.  The change in this effective tax rate is attributable to increased deductions related to equity awards, implementation of prudent tax planning strategies, and the mix of earnings in our business jurisdictions.  As a result, an effective tax rate of 15.1% for the three months ended December 31, 2024 has been used to adjust the provision for income taxes for the purpose of computing adjusted net income. An effective tax rate of approximately 26% has been used to adjust the provision for income taxes for the purpose of computing adjusted net income for the three and twelve months ended December 31, 2023.

(6)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted net income attributable to noncontrolling interest represents adjusted net income based on the ownership interest retained by the respective noncontrolling parties.

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Teradata Introduces New Privacy, Security, and Resiliency Capabilities as AI Forces Change in Enterprise Data Protection

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New capabilities protect the sensitive data and intelligence behind enterprise AI while keeping mission-critical operations available and recoverable

SAN DIEGO, Oct. 20, 2026 /PRNewswire/ — Teradata (NYSE: TDC) today announced new privacy, security, and resiliency capabilities designed to address one of the defining challenges of enterprise AI: how sensitive data is protected, who and what can access it, and whether it remains available and recoverable when something goes wrong. Teradata addresses all three through an integrated approach that reduces raw identity exposure, enforces protection closer to the data, and keeps the intelligence powering AI available and recoverable. In practice, that means protecting the intelligence behind AI without diminishing what makes it valuable.

Key Capabilities

Poly-Anonymization®: reduces raw identity exposure while preserving the relationships and utility AI and analytics requireFormat-preserving encryption: protects sensitive values without changing their format or breaking downstream systemsPost-quantum security and readiness: strengthens protection against emerging quantum-era threats through Anonomatic PII Vault® and TLS 1.3 hybrid-key exchange for data in transitImmutable backup protection: prevents recovery points from being modified or deleted, strengthening cyber-recovery readinessDatabase-level high availability: an additional availability layer for mission-critical workloads, distinct from disaster recovery

Why It Matters Now
As AI becomes mission-critical, it expands both the value and the vulnerability of enterprise data. Sensitive information now moves among users, applications, models, and agents, making it harder to secure at the boundary alone. AI is designed to combine disparate information to find patterns and make decisions, which means data that isn’t individually identifiable can become so when AI brings it together.

Executive Quote
“Privacy, security, and resiliency have historically been treated as separate problems with separate solutions. That approach doesn’t hold up when AI is moving sensitive data across users, applications, models, and agents simultaneously. This announcement reflects how we think those capabilities need to work together, and it’s the foundation for how we intend to extend that protection as AI environments grow more complex and the actors operating within them multiply.”
          -Sumeet Arora, Chief Product Officer, Teradata

Privacy Protection
Access control determines who can see sensitive data. Identity reduction changes how much identifying information needs to be present in the analytical environment in the first place. Teradata combines both, through an OEM partnership with Anonomatic, whose privacy capabilities are natively available to Teradata customers.

Poly-Anonymization replaces PII fields with a stable identifier while holding underlying identity separately within Anonomatic PII Vault, a post-quantum-secure environment built with multiple layers of overlapping security controls designed to protect sensitive identity information. Authorized users can restore identity when a legitimate use case requires it, but everyone else works with data that retains its analytical structure, its relationships, and its utility. The result is an analytical environment where sensitive data can be used for AI, analytics, testing, and approved collaboration without broadly exposing who the data is about.

Unlike approaches that rely solely on mathematically reversible encryption, PII Vault combines identity separation, Poly-Anonymization, access controls, and additional layered protections to reduce identity exposure while retaining the utility required for AI and analytics. Format-preserving encryption extends that protection to situations where a value’s structure matters to downstream systems, protecting sensitive data without breaking the applications and workflows built around it.

Testing at large scale demonstrated that Teradata’s Anonomatic-powered privacy-preserving controls can support enterprise analytical workloads without the performance tradeoffs organizations typically associate with data privacy. Multi-table join queries on protected data used fewer Teradata resources than equivalent queries on unprotected data, though results will vary by workload and configuration.

Partner Quote
“Enterprise AI creates a fundamentally different privacy challenge. Organizations need to use sensitive, individual-level data to build effective AI, but the traditional tools for protecting that data weren’t designed to preserve what AI needs to work. Our partnership with Teradata makes it possible to reduce identity exposure at enterprise scale without forcing organizations to choose between protection and utility.”
          -Matt Fleck, Founder and CEO at Anonomatic, a data security software company focused on making PII data privacy secure, simple and cost effective

Native Data Security
Protection that follows the data requires controls enforced at the data layer, not just at the systems surrounding it. Teradata applies classification, policy enforcement, and access controls closer to the data itself. Together, these capabilities provide a governance-led foundation for protecting data and intelligence across users, applications, and workloads.

For data in transit, Teradata introduces post-quantum protection via TLS 1.3 hybrid-key exchange, which combines classical and post-quantum cryptographic algorithms in a single handshake. As quantum computing advances make current encryption standards increasingly vulnerable, organizations that establish cryptographic readiness now will be better positioned for what’s ahead.

New native capabilities including dynamic data masking, data classification and tagging, column-level encryption, and global identity extend that protection across the data layer. Through a partnership with Immuta, a data authorization platform between identity and enterprise data, dynamic ABAC brings identity-aware, attribute-driven access control that enforces policy consistently across users and AI workloads without duplicating data or rewriting governance rules.

Teradata’s security architecture is designed to extend as AI environments evolve, with ongoing investment in controls that govern how AI agents access and act on enterprise data within policy boundaries.

Enterprise Data Protection
For enterprises running AI at scale, a cyberattack is a threat to the data, context, and operational knowledge that AI depends on to function. Teradata Enterprise Data Protection addresses that reality through a workload-aligned approach that lets organizations match protection levels to business criticality rather than applying the same resiliency architecture to every workload. The objective is not simply to restore data, but to restore the trusted context AI needs to resume mission-critical operations.

Database-level high availability via real-time replication introduces an additional availability layer designed for continuous synchronization and low recovery objectives.

Immutable backup protection strengthens cyber-recovery readiness by ensuring recovery points cannot be modified, encrypted, or deleted, even by privileged administrators. As ransomware increasingly targets backup data specifically, protected recovery points have become as critical as the protection strategies built around them. Teradata’s resiliency architecture is designed to extend as cyber threats and recovery requirements evolve.

Additional capabilities including backup and recovery, scheduled data synchronization, and disaster recovery round out a more consistent Enterprise Data Protection experience.

Availability

Privacy capabilities, powered by Anonomatic and delivered by Teradata, are available now for Teradata Cloud on AWS, Azure, and Google Cloud.Native data security capabilities including dynamic data masking, data classification and tagging, and column-level encryption are available on Teradata Cloud across AWS, Azure, and Google Cloud. Dynamic data masking, data classification and tagging are available for Teradata Factory and on-premises deployment options.Teradata Enterprise Data Protection including immutable backup protection is available now on Teradata Cloud across AWS, Azure, and Google Cloud with availability on Teradata Customer Cloud planned in the coming months. 

About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.

Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s privacy, security, and resiliency capabilities. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

Poly-Anonymization and PII Vault are registered trademarks of Anonomatic, Inc.

MEDIA CONTACT
Jennifer Donahue
Jennifer.Donahue@Teradata.com

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Teradata Expands Sovereign AI Across On-Premises and Air-Gapped Cloud Environments

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New Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud capabilities give enterprises greater control over where their most sensitive data and AI operate

SAN DIEGO, Oct. 20, 2026 /PRNewswire/ — Teradata (NYSE: TDC) today announced a portfolio of deployment and platform capabilities designed to give governments and enterprises greater control over the data, AI, and technology that power their most critical operations. This includes expanded capabilities for Teradata Factory with AI Studio and the availability of Teradata Sovereign Cloud on Google Distributed Cloud air-gapped environment.

What’s New
Teradata’s portfolio spans two complementary deployment models designed to address different sovereignty requirements.

The expanded capabilities for Teradata Factory with AI Studio bring a unified AI environment to operate on data, vectors, models, and agents directly into customer-controlled on-premises infrastructure. These capabilities include:

Tera, the agentic coworker for enterprise data work, including Tera Harness and Tera Context EngineAgentStack, the complete AI agent development capabilities to build, manage, observe and operate agents through natural language, pro-code, low-code, and Model Context Protocol (MCP) interfacesModel services, which provide machine learning operations and AI model management with pre-integrated model and bring-your-own-model supportData pipelines for ingesting multimodal unstructured data, vector embeddings, vector storage and hybrid search for RAGAnalytics, native notebooks backed by in-database analytics and Teradata’s Elastic Python Compute, built on Ray and Arrow, bring AI to where data lives

Teradata Sovereign Cloud on Google Distributed Cloud air-gapped brings Teradata’s high-performance enterprise-scale analytics into fully isolated environments. Key benefits of running Teradata Sovereign Cloud on Google Distributed Cloud air-gapped include:

Full isolation: Deploy Teradata in an air-gapped environment with no external connectivity— keeping classified and regulated data fully containedSecurity and compliance: Meet stringent regulatory requirements while maintaining complete audit trails and governanceHigh-performance analytics and AI at scale: Run complex queries across billions of rows and petabytes of data with predictable performance

Why it Matters
Research points to growing urgency. According to a 2026 BARC global study of 320 business and IT decision-makers, 62 percent of organizations cite data and AI in core business processes as a key driver of sovereignty requirements. A separate IBM study found that 91 percent of executives say they do not fully understand their organization’s dependencies across AI vendors, models and infrastructure. And Gartner predicts that by 2030, more than 75 percent of enterprises outside the United States will have a digital sovereignty strategy, supported by a sovereign cloud strategy.

As AI moves into mission-critical operations, sovereignty is no longer only about where data resides. Organizations must also consider where AI runs, which models are used, how enterprise information is accessed, who operates the environment, and which external technologies their AI depends on.

This is particularly relevant for governments, defense organizations, regulated industries and critical infrastructure, where data residency, privacy, jurisdiction, operational continuity or national-security requirements can limit the use of traditional public-cloud AI services.

Teradata frames sovereignty across three dimensions: data sovereignty (where data lives and who can access it), operational sovereignty (who controls the environment and whether it can operate independently), and digital sovereignty (which technologies and AI models the organization depends on). An organization can satisfy data residency requirements and still lack full sovereignty if AI processing occurs externally, external administrators can access the environment, or operations stop when public connectivity is unavailable.

Teradata’s sovereign portfolio is designed to address these requirements, bringing enterprise analytics and AI inside the boundaries that organizations control.

The Deployment Portfolio
Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped address different sovereignty requirements.

Teradata Factory is an integrated hardware and software rack that brings a private enterprise data and AI environment into customer-controlled on-premises infrastructure. It is designed for organizations that require direct physical control over their infrastructure and AI execution.

Teradata Sovereign Cloud on Google Distributed Cloud air-gapped provides a cloud operating model inside a sovereign boundary. The environment has no connection to the public internet and is operated by the customer. It is designed for organizations that need the operational model of cloud within a fully isolated, sovereign environment. Teradata provides the enterprise analytics layer within the air-gapped boundary, enabling organizations to support use cases such as operational reporting, mission analysis, intelligence fusion, training and simulation analytics, and defense logistics and sustainment inside the sovereign boundary.

Together, Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped support a hybrid approach to sovereign deployment, giving organizations the flexibility to run enterprise analytics and AI inside whichever boundary their requirements demand.

Executive Perspectives
“As AI becomes embedded in mission-critical decisions, organizations can no longer treat sovereignty as a data-location requirement. They need control over where AI runs, which models are used, who can operate the environment, and whether critical workloads can continue if external connectivity disappears. And increasingly, sovereignty is not a single location. It is an architecture that spans public cloud, sovereign cloud, and on-premises infrastructure. Teradata is uniquely built for that reality. We can run in all of those environments, connect them through Teradata Fabric without requiring data to move, and give organizations the freedom to choose the AI models and infrastructure that work for them.”

— Sumeet Arora, Chief Product Officer, Teradata

“Google Distributed Cloud is purpose-built, air-gapped infrastructure that delivers complete technical, operational and software sovereignty. By combining Google Distributed Cloud’s sovereign infrastructure with Teradata’s AI and knowledge capabilities, we are giving enterprise customers in regulated industries the ability to innovate without sacrificing control over their data.”

— Muninder Singh Sambi, VP of Product Management, Google Distributed Cloud

Availability
The expanded Teradata sovereign capabilities for Teradata Factory with AI Studio will be available in Q1 2027. Teradata Sovereign Cloud on Google Distributed Cloud air-gapped is available in Private Preview.

About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.

Teradata Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s sovereign portfolio. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

MEDIA CONTACT
January Machold
January.Machold@Teradata.com

 

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State Farm® and MIT AgeLab Collaborate to Study What’s Driving Distraction Behind the Wheel

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Drivefulness™ research explores the human side of a nearly $100 billion roadway risk

BLOOMINGTON, Ill., Oct. 20, 2026 /PRNewswire/ — As vehicles become more connected and technology-enabled, the challenge of distracted driving is becoming more complex across the country. The question is no longer simply what distracts drivers, but understanding why people make certain choices behind the wheel and how technology may influence those decisions.

State Farm® and the MIT AgeLab are exploring those questions through a research initiative examining driver attention, distraction, and the behaviors that influence decision-making behind the wheel. Researchers have coined the term “drivefulness” to describe a state in which a driver is safe, aware, appropriately engaged, and ready to respond to the road, while being supported in having the best possible driving experience for them.

The study brings together State Farm’s decades of experience understanding crash risk, driver behavior, and the real-world consequences of distraction with MIT AWARE initiative’s multidisciplinary research expertise in transportation safety, human factors, behavioral science, and how people interact with technology.

Distracted driving carries significant human and economic consequences. According to U.S. Department of Transportation research, distraction was involved in 29% of motor vehicle crashes studied, contributing to more than 10,000 deaths, 1.3 million injuries, and an estimated $98.2 billion in economic costs.

Understanding the relationship among driver attention, distraction, and behaviors could help inform how automakers, organizations, regulators, and insurers approach roadway safety, risk prevention, and the design of future driving experiences.

“Distracted driving is not simply about whether a driver knows what is safe or unsafe. It reflects a much more complex interaction between the driver’s state, the demands of the driving environment, and the technologies that compete for or support their attention,” said Dr. Pnina Gershon of the MIT AgeLab. “With this research, we are looking beyond individual moments of distraction to understand what drivers need to be prepared, attentive, and appropriately engaged during the driving task. That allows us to think differently about safety and about how technology, information, and interventions can support drivers before, during, and after the drive.”

Dr. Gershon is the director of the MIT AWARE initiative and a co-director of the MIT Advanced Vehicle Technology Consortium. With more than two decades of research experience, she leads work at the intersection of driving safety, human behavior, health, and human-centered AI. Her research uses sensing, real-world data, and behavioral analytics to understand human states and to develop technologies and interventions that support safer, more effective interactions between people and increasingly automated systems.

Understanding the behavior behind the risk

Drivers may know distraction is dangerous, but State Farm research shows that knowledge doesn’t always change what happens behind the wheel. Sixty-eight percent of drivers admit to engaging in distracting behaviors while driving, and 44% say they have crashed or experienced a near-crash while doing so.

Perception may be part of the challenge. Sixty-two percent of drivers believe taking their eyes off the road for two or more seconds is safe, even though a two-second glance away doubles crash risk.

“Technology is changing the driving experience, creating new opportunities to better understand and support drivers,” said Jeff Legner, technology executive at State Farm. “The more we learn about how people interact with technology behind the wheel, the better positioned we are to anticipate evolving risks, improve driver experiences and explore new approaches to accident prevention. This research can help turn those insights into meaningful ways to support drivers before, during and after every drive.”

Combining real-world risk with behavioral science

State Farm has worked to address distracted driving from multiple angles, including advocating for stronger hands-free laws, supporting cross-industry safety research and advancing technology that can help drivers better understand their behavior. That work includes telematics-based tools for customers and collaboration with companies such as Cambridge Mobile Telematics to explore how technology and data can help reduce roadway risk. The MIT AgeLab brings deep expertise in understanding the human side of a rapidly changing driving environment.

The collaboration builds on an established research relationship between State Farm and MIT, including State Farm’s participation in the MIT Advanced Vehicle Technology Consortium, which studies how drivers interact with increasingly automated and technology-enabled vehicles.

First findings expected in October
The first phase of the research is focused on establishing a deeper understanding of how people perceive and manage attention behind the wheel.

Findings from the first phase of the drivefulness study are expected later in October 2026, providing an early look at what the research is uncovering about driver attention, distraction and behavior through consumer survey findings.

The findings will help inform the next phase of drivefulness research, beginning in January 2027, on how people, technology and the driving environment can work together to support safer driving.

About State Farm®
For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. State Farm Mutual Automobile Insurance Company and its affiliates are the largest providers of auto and home insurance combined in the United States. Its more than 19,200 agent offices and over 62,000 employees serve over 96 million policies and accounts – including auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the 2025 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.

About the AWARE initiative at the MIT AgeLab
AWARE is an MIT research initiative focused on developing intelligent vehicle systems that can better understand drivers and support them in real-world conditions. Based at the MIT AgeLab and Center for Transportation & Logistics, AWARE brings together naturalistic driving research, advanced simulation, behavioral science, and artificial intelligence to study how driver state, behavior, and context interact across the driving journey. Its research examines areas such as distraction, fatigue, impairment, workload, automation use, driver monitoring, and human-machine interaction, with the goal of moving beyond simply detecting driver behavior toward systems that can sense, interpret, respond, and promote safer and more appropriate driver engagement. Through this work, AWARE is building the evidence and methods needed to support the next generation of adaptive, human-centered mobility technologies. For more information about AWARE, visit https://ctl.mit.edu/aware-initiative, and about the AgeLab, visit https://agelab.mit.edu/.

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