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

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%

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 December31, 2024.

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Three Months Ended Twelve Months Ended December31, December31,(in millions, except per share data): 2024 2023 Change 2024 2023 ChangeGAAP ResultsRevenue $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 bpsDiluted earnings per share attributable to $0.98 $0.77 27.3% $3.00 $2.39 25.5%SS&CNet 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 581.9 545.2 6.7% 2,212.4 2,041.4 8.4%SS&CAdjusted operating income margin 38.0% 38.6% -60 bps 37.6% 37.1% 50 bpsAdjusted diluted earnings per share $1.58 $1.26 25.4% $5.41 $4.65 16.3%attributable to SS&C (1)Adjusted consolidated EBITDA attributable 599.1 562.5 6.5% 2,281.0 2,107.7 8.2%to SS&CAdjusted 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 December31, 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 December31, 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 December31, 2024. SS&C's net secured leverage ratio stood at 1.69 times consolidated EBITDA attributable to SS&C as of December31, 2024.

Guidance

Q1 2025 FY 2025Adjusted Revenue ($M) $1,474.0 – $1,514.0 $6,085.0 – $6,245.0Adjusted Net Income attributable to SS&C $348.0 – $364.0 $1,431.0 – $1,531.0($M)Interest Expense1 ($M) $104.0 – $106.0 $408.0 – $418.0Adjusted Diluted Earnings per Share $1.37 – $1.43 $5.64 – $5.96attributable to SS&CCash from Operating Activities ($M) – $1,448.0 – $1,548.0Capital Expenditures (% of revenue) – 4.1% – 4.5%Diluted Shares (M) 254.6 – 255.6 253.7 – 256.7Effective 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 SubsidiariesCondensed Consolidated Statements of Comprehensive Income(in millions, except per share data)(unaudited) Three Months Ended December31, Twelve Months Ended December31, 2024 2023 2024 2023Revenues:Software-enabled services $ 1,254.0 $ 1,145.5 $ 4,840.3 $ 4,488.3License, maintenance and related 275.7 266.1 1,041.7 1,014.5Total revenues 1,529.7 1,411.6 5,882.0 5,502.8Cost of revenues:Software-enabled services 669.1 594.6 2,618.8 2,472.0License, maintenance and related 106.7 97.7 399.6 379.0Total cost of revenues 775.8 692.3 3,018.4 2,851.0Gross profit 753.9 719.3 2,863.6 2,651.8Operating expenses:Selling and marketing 156.6 139.3 584.2 550.9Research and development 136.8 118.3 517.7 473.8General and administrative 102.6 127.5 418.2 418.2Total operating expenses 396.0 385.1 1,520.1 1,442.9Operating income 357.9 334.2 1,343.5 1,208.9Interest expense, net (113.0) (119.3) (451.9) (469.8)Other (expense) income, net (7.6) 5.4 8.9 20.7Equity in earnings of unconsolidated affiliates, net 3.7 57.4 24.4 100.0Loss 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) 81.8 132.0 249.1Net income 248.4 194.9 761.7 608.6Net 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 $ 607.1Basic earnings per share attributable to SS&C common stockholders $ 1.01 $ 0.79 $ 3.09 $ 2.45Diluted earnings per share attributable to SS&C common stockholders $ 0.98 $ 0.77 $ 3.00 $ 2.39Basic weighted-average number of common shares outstanding 246.0 246.7 246.4 248.3Diluted weighted-average number of common and common equivalent 254.5 252.1 253.8 254.5shares outstandingNet income $ 248.4 $ 194.9 $ 761.7 $ 608.6Other comprehensive (loss) income, net of tax:Foreign currency exchange translation adjustment (229.2) 129.3 (115.1) 124.5Change 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) 123.8Comprehensive income 19.3 323.5 646.8 732.4Comprehensive 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 SubsidiariesCondensed Consolidated Balance Sheets(in millions)(unaudited) December31, December31, 2024 2023AssetsCurrent assets:Cash and cash equivalents $ 567.1 $ 432.2Funds receivable and funds held on behalf of clients 3,162.2 2,615.6Accounts receivable, net 902.0 799.4Contract asset 47.6 36.1Prepaid expenses and other current assets 179.8 165.8Restricted cash 3.7 2.4Total current assets 4,862.4 4,051.5Property, plant and equipment, net 299.6 315.3Operating lease right-of-use assets 190.6 221.4Investments 177.4 184.7Unconsolidated affiliates 328.4 345.2Contract asset 110.2 99.7Goodwill 9,218.1 8,969.5Intangible and other assets, net 3,858.0 3,915.2Total assets $ 19,044.7 $ 18,102.5Liabilities and EquityCurrent liabilities:Current portion of long-term debt $ 20.0 $ 51.5Client funds obligations 3,162.2 2,615.6Accounts payable 70.2 80.3Income taxes payable 23.0 22.3Accrued employee compensation and benefits 311.5 270.2Interest payable 31.6 29.4Other accrued expenses 249.7 232.3Deferred revenue 486.1 470.3Total current liabilities 4,354.3 3,771.9Long-term debt, net of current portion 6,989.6 6,668.5Operating lease liabilities 175.1 199.1Other long-term liabilities 191.1 248.7Deferred income taxes 725.5 816.6Total liabilities 12,435.6 11,704.8SS&C stockholders' equity 6,534.8 6,339.6Noncontrolling interest 74.3 58.1Total equity 6,609.1 6,397.7Total liabilities and equity $ 19,044.7 $ 18,102.5

SS&C Technologies Holdings, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(in millions)(unaudited) Twelve Months Ended December31, 2024 2023Cash flow from operating activities:Net income $ 761.7 $ 608.6Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 680.1 670.4Equity in earnings of unconsolidated affiliates, net (24.4) (100.0)Distributions received from unconsolidated affiliates 13.1 21.2Stock-based compensation expense 203.3 159.5Net gains on investments (1.7) (2.2)Amortization and write-offs of loan origination costs and original issue discounts 8.4 13.5Loss on extinguishment of debt 31.2 2.1Loss on sale or disposition of property and equipment 1.6 11.7Deferred income taxes (115.4) (82.9)Provision for credit losses 15.4 11.4Changes 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) 22.5Accounts payable (10.7) 33.0Accrued expenses and other liabilities (16.5) (106.0)Income taxes prepaid and payable (13.8) (38.2)Deferred revenue 21.2 15.9Net cash provided by operating activities 1,388.6 1,215.1Cash 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 0.1Additions to capitalized software (194.3) (194.9)Investments in securities (0.1) (0.6)Proceeds from sales / maturities of investments 6.9 8.0Distributions received from (contributions to) unconsolidated affiliates 25.3 (0.3)Collection of other non-current receivables 10.2 10.0Net cash used in investing activities (855.7) (268.4)Cash flow from financing activities:Cash received from debt borrowings, net of original issue discount 5,545.0 375.0Repayments of debt (5,255.1) (749.7)Payment of deferred financing fees (39.4) -Net increase in client funds obligations 235.8 1,669.7Proceeds from exercise of stock options 355.1 115.4Withholding 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) 712.8Effect of exchange rate changes on cash, cash equivalents and restricted cash (8.7) 1.5Net increase in cash, cash equivalents and restricted cash 371.9 1,661.0Cash, cash equivalents and restricted cash, beginning of period 2,998.6 1,337.6Cash, cash equivalents and restricted cash and cash equivalents, end of period $ 3,370.5 $ 2,998.6Reconciliation of cash, cash equivalents and restricted cash and cash equivalents:Cash and cash equivalents $ 567.1 $ 432.2Restricted cash and cash equivalents 3.7 2.4Restricted cash and cash equivalents included in funds receivable and funds held on behalf of 2,799.7 2,564.0clients $ 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 Twelve Months Ended December31, December31,(in millions) 2024 2023 2024 2023Revenues $ 1,529.7 $ 1,411.6 $ 5,882.0 $ 5,502.8ASC 606 adoption impact – (0.9) (2.2) (3.4)Purchase accounting adjustments impact on revenue 1.0 1.6 5.9 6.4Adjusted 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 Twelve Months Ended December31, December31,(in millions) 2024 2023 2024 2023Software-enabled services $ 1,254.0 $ 1,145.5 $ 4,840.3 $ 4,488.3License, maintenance and related 275.7 266.1 1,041.7 1,014.5Total revenues $ 1,529.7 $ 1,411.6 $ 5,882.0 $ 5,502.8Software-enabled services $ 1,254.9 $ 1,146.2 $ 4,844.0 $ 4,491.6License, maintenance and related 275.8 266.1 1,041.7 1,014.2Total 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 Twelve Months Ended December31, December31,(in millions) 2024 2023 2024 2023Operating income $ 357.9 $ 334.2 $ 1,343.5 $ 1,208.9Amortization of intangible assets 157.5 151.3 606.6 596.6Stock-based compensation 55.4 41.9 203.3 159.4Purchase accounting adjustments (1) 2.1 3.8 11.6 15.8ASC 606 adoption impact 0.1 (0.8) (1.9) (3.1)Acquisition related (2) 0.5 1.2 3.2 9.0Facilities and workforce restructuring 8.0 14.3 41.6 56.8Other (3) 1.4 0.1 8.6 0.9Adjusted operating income $ 582.9 $ 546.0 $ 2,216.5 $ 2,044.3Adjusted operating income attributable to noncontrolling interest (4) (1.0) (0.8) (4.1) (2.9)Adjusted operating income attributable to SS&C common $ 581.9 $ 545.2 $ 2,212.4 $ 2,041.4stockholders

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 Twelve MonthsEnded December31, December31,(in millions) 2024 2023 2024 2023Net income $ 248.4 $ 194.9 $ 761.7 $ 608.6Interest expense, net 113.0 119.3 451.9 469.8Provision for income taxes (8.5) 81.8 132.0 249.1Depreciation and amortization 175.8 170.0 680.1 670.4EBITDA 528.7 566.0 2,025.7 1,997.9Stock-based compensation 55.4 41.9 203.3 159.4Acquired EBITDA and cost savings (1) – – 19.4 -Loss on extinguishment of debt 1.1 1.0 31.2 2.1Equity in earnings of unconsolidated affiliates, net (3.7) (57.4) (24.4) (100.0)Purchase accounting adjustments (2) 1.1 2.6 6.8 9.3ASC 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 56.8Acquisition related (4) 0.6 1.2 3.3 (0.1)Other (5) 4.7 3.7 11.1 7.5Consolidated EBITDA $ 600.1 $ 563.3 $ 2,304.5 $ 2,110.6Acquired EBITDA and cost savings (1) – – (19.4) -Adjusted Consolidated EBITDA $ 600.1 $ 563.3 $ 2,285.1 $ 2,110.6Adjusted Consolidated EBITDA attributable to noncontrolling interest (6) (1.0) (0.8) (4.1) (2.9)Adjusted Consolidated EBITDA attributable to SS&C common $ 599.1 $ 562.5 $ 2,281.0 $ 2,107.7stockholders

(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 namedDomaniRx, 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 EndedDecember31, Twelve Months Ended December31,(in millions, except per share data) 2024 2023 2024 2023GAAP – Net income $ 248.4 $ 194.9 $ 761.7 $ 608.6Amortization of intangible assets 157.5 151.3 606.6 596.6Amortization of deferred financing costs and original issue discount 1.7 3.3 8.4 13.5Stock-based compensation 55.4 41.9 203.3 159.4Loss on extinguishment of debt 1.1 1.0 31.2 2.1Purchase accounting adjustments (1) 2.1 3.8 11.6 15.8ASC 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 56.8Acquisition related (3) 0.6 1.2 3.3 (0.1)Other (4) 4.9 3.9 11.2 8.6Income tax effect (5) (80.2) (30.7) (281.9) (168.2)Adjusted net income $ 403.2 $ 319.7 $ 1,377.1 $ 1,187.6Adjusted 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 $ 1,184.1Adjusted diluted earnings per share attributable to SS&C common $ 1.58 $ 1.26 $ 5.41 $ 4.65stockholdersGAAP diluted earnings per share attributable to SS&C common $ 0.98 $ 0.77 $ 3.00 $ 2.39stockholdersDiluted 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 namedDomaniRx, 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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