Financial Data and Key Metrics Changes - The company achieved a record AUM of $2.1 trillion, with net long-term inflows of nearly $29 billion, representing an 8% annualized organic growth, the best flow quarter since 2021 [13][24] - Total AUM increased by $123 billion, or 6%, from the previous quarter, and by $329 billion, or 18%, year-over-year [24] - Adjusted diluted earnings per share for the third quarter was $0.61, with a significant improvement in operating margin to 34.2% [25][36] Business Line Data and Key Metrics Changes - The ETF platform reached a milestone of $1 trillion in AUM, with an annualized organic growth of 15% [14] - Fundamental fixed income garnered over $4 billion in net long-term inflows, with total fixed income inflows reaching nearly $13 billion when including ETFs [16] - The company recorded net outflows of $5 billion in fundamental equities, primarily due to a broader secular outflow trend in actively managed equities [21] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM is now from clients outside the U.S., with two-thirds of net inflows this quarter coming from EMEA and Asia-Pacific regions [13] - The China joint venture reached a record high AUM of $122 billion, reflecting a 16% increase over the last quarter, with $8.1 billion in net long-term inflows [17] - The company launched 12 new products in its China JV, including its first fixed income ETF, indicating strong demand for innovative products [19] Company Strategy and Development Direction - The company is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [5][26] - A hybrid investment platform is being implemented, expected to be completed by the end of 2026, aimed at simplifying operations and improving investment performance [7][32] - The company is pursuing growth through partnerships, such as the Barings private markets partnership, which has already launched its first joint product [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [12] - The company is optimistic about future growth, particularly in fixed income and private markets, despite some volatility in the credit space [56][57] - Management emphasized the importance of investment performance, with over half of funds performing in the top quartile of peers on a three-year basis [23] Other Important Information - The company is in the process of selling a majority interest in its Indian business, expecting cash proceeds of $140 million to $150 million [35] - A non-cash impairment charge of $36 million was recorded related to the sale of intelliflo, which is expected to close in the fourth quarter [33][34] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an effective rate of 11.2% [34] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management is pleased with the progress of the QQQ shareholder vote, noting overwhelming support for the fee change, but cannot disclose specific quorum details [40][41] - The reclassification of marketing expenses does not impact operating income or the proposal's approval likelihood [42] Question: Use of proxy voting firm and expense classification - The proxy solicitation firm's expenses are considered marketing expenses of the fund and are not expected to affect Invesco's operating expenses [45][46] Question: Fixed income flows and market outlook - Management reported strong fixed income performance and organic growth, with no material implications from recent market events [55][56] Question: Details on divestitures and capital return priorities - Proceeds from the India sale are expected to enhance balance sheet flexibility, while the intelliflo sale is anticipated to have negligible impact on overall results [61][63] Question: Expense growth and Alpha platform integration - Implementation costs for the Alpha platform are expected to remain high through 2026, with a focus on managing fixed expenses [67][68] Question: Variable expenses and operating leverage - Variable expenses are expected to fluctuate with revenue, while fixed expenses will be closely managed to drive operating leverage [75][76]

Financial Data and Key Metrics Changes - Invesco reported a record AUM of $2.1 trillion, which is $123 billion or 6% higher than the previous quarter and $329 billion or 18% higher year-over-year [24] - Average long-term AUM increased by 9% sequentially and 16% year-over-year to $1.46 trillion [24] - Net revenues for the third quarter were $1.2 billion, an increase of $82 million compared to the same quarter last year, primarily driven by higher investment management fees [30] Business Line Data and Key Metrics Changes - The ETF platform reached a milestone of $1 trillion in AUM, with an annualized organic growth of 15% [14] - Fundamental fixed income garnered over $4 billion in net long-term inflows, with total fixed income inflows reaching nearly $13 billion when including ETFs [16] - The China joint venture achieved a record AUM of $122 billion, reflecting a 16% increase over the last quarter, with net long-term inflows of $8.1 billion [17] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM is now from clients outside the U.S., with two-thirds of net inflows this quarter coming from AMEA and Asia-Pacific regions [13] - The U.S. wealth management SMA platform reached nearly $34 billion in AUM, with an annualized organic growth rate of 19% [17] - The company experienced strong demand for fixed income products, particularly in Asia, driving net inflows [16] Company Strategy and Development Direction - Invesco is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [5] - The company is implementing a hybrid investment platform to streamline operations and improve investment performance, expected to be completed by the end of 2026 [7][32] - A significant growth initiative is underway to modernize the QQQ ETF structure, with strong shareholder participation in the proposals [11] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [12] - The company is optimistic about future growth opportunities, particularly in private markets and the evolving demand for income-oriented solutions [9] - Management expressed confidence in the ongoing improvements in investment performance, which is crucial for maintaining market share [22] Other Important Information - The sale of IntelliFlow is expected to generate approximately $100 million in net cash, with potential future earnouts of up to $65 million [8] - The company anticipates closing the transaction for a majority interest in its Indian business, expecting cash proceeds of $140 million to $150 million [35] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an 11.2% rate [34] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management is pleased with the progress of the QQQ shareholder vote, noting overwhelming support for the fee change, and clarified that reclassifying marketing expenses does not impact operating income [41][42] Question: Use of proxy voting firm and expense classification - The proxy solicitation firm is considered a marketing expense of the fund, and management does not foresee it affecting Invesco's operating expenses [45][46] Question: Fixed income flows and market outlook - Management reported continued strength in fixed income flows, with over $30 billion in platform-wide fixed income flows, and noted some softening in bank loan flows [55][56] Question: Details on divestitures and capital return priorities - Proceeds from the sale of the Indian business and IntelliFlow will enhance balance sheet flexibility, with a focus on returning 60% of capital to shareholders [62][63] Question: Expense growth and Alpha platform integration - Management expects implementation costs for the Alpha platform to remain high through 2026, with a focus on managing fixed expenses effectively [68][70]

Financial Data and Key Metrics Changes - The company achieved a record AUM of $2.1 trillion, reflecting a $123 billion increase or 6% from the previous quarter and a $329 billion increase or 18% year-over-year [24] - Average long-term AUM rose to $1.46 trillion, a 9% increase from the last quarter and a 16% increase from the same quarter last year [24] - Net revenues for the third quarter reached $1.2 billion, an increase of $82 million compared to the same quarter last year, primarily driven by higher investment management fees [31] Business Line Data and Key Metrics Changes - The company reported strong net long-term inflows of nearly $29 billion, marking an 8% annualized organic growth, the best flow quarter since 2021 [12] - In the ETF and indexed offerings, the company reached $1 trillion in AUM, with an annualized organic growth of 15% [13] - Fundamental fixed income saw over $4 billion in net long-term inflows, while total fixed income inflows across all products reached nearly $13 billion [15] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM now comes from clients outside the U.S., with two-thirds of net inflows this quarter from AMEA and Asia-Pacific regions [12] - The China joint venture reached a record high AUM of $122 billion, reflecting a 16% increase over the last quarter, with $7.3 billion of net long-term inflows [16] - The company experienced a significant increase in demand for fixed income products, particularly in Asia, with strong institutional interest in investment-grade bonds [15] Company Strategy and Development Direction - The company is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [4] - A hybrid investment platform is being implemented, expected to be completed by the end of 2026, aimed at simplifying operations and improving investment performance [5][6] - The company is pursuing growth through partnerships, such as the Barings Private Markets partnership, and is in the final stages of selling a majority interest in its Indian business [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [11] - The company is optimistic about future growth opportunities, particularly in private markets and fixed income, as it continues to innovate and meet client demand [19][20] - Management expressed confidence in the ongoing initiatives to enhance investment performance and reduce redemption rates in fundamental equities [22] Other Important Information - The company recorded a non-cash impairment charge of $36 million related to the sale of IntelliFlow, which is expected to close in the fourth quarter [33] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an 11.2% effective tax rate [34] - The company plans to continue common share repurchases, with a total payout ratio expected to be near 60% this year [38] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management indicated strong participation and momentum in favor of the fee change proposals, but could not disclose specific quorum details [41][42] - The reclassification of marketing expenses does not impact operating income or the proposal's approval likelihood [43] Question: Clarification on proxy voting expenses - Proxy solicitation expenses are considered marketing expenses of the fund and are not expected to affect Invesco's operating expenses [45][46] Question: Insights on fixed income flows and future expectations - The company has seen strong fixed income performance and expects continued strength, despite some recent volatility [51][52] Question: Details on divestitures and capital return priorities - Proceeds from the sale of the Indian business are expected to be $140 to $150 million, with negligible impact on overall operating results [57][58] - The company remains focused on improving its balance sheet and returning capital to shareholders while investing in growth [59] Question: Future expense growth related to the Alpha platform - Implementation costs for the Alpha platform are expected to remain high through 2026, with a focus on managing fixed expenses [63][64] Question: Variable expenses outlook for 2026 and 2027 - Variable expenses are expected to fluctuate with revenue, while fixed expenses will be closely managed to drive operating leverage [70][71]

Invesco (IVZ) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +38.64%. A quarter ago, it was expected that this investment management company would post earnings of $0.41 per share when it actually produced earnings of $0.36, delivering a surprise of -12.2%.Over the last four quarters ...

Financial Performance - Net long-term inflows reached $28.9 billion, representing an annualized organic growth of 7.9%[17] - Ending AUM hit a record $2.1 trillion[17] - Net revenues increased by 7.4% to $1186.3 million, while adjusted operating expenses increased by 3.3% to $780.2 million year-over-year[16] - Adjusted diluted EPS increased by 38.6% year-over-year to $0.61[16] - The adjusted operating margin improved by 260 basis points year-over-year to 34.2%[16] Balance Sheet and Capital Management - $260 million of bank term loans were repaid in Q3'25[8] - Share buybacks of $25 million, representing 1.2 million shares, were executed[17] - Ending long-term AUM grew 16% over the third quarter of 2024[17] AUM and Flows by Investment Capability - ETFs and Index strategies saw net long-term inflows of $21.4 billion and an ending AUM of $605.7 billion[9] - Fundamental Fixed Income experienced net long-term inflows of $4.1 billion and an ending AUM of $308.8 billion[9] - Fundamental Equities had net outflows of $5.0 billion with an ending AUM of $299.6 billion[9] - China JV & India saw net long-term inflows of $8.1 billion and an ending AUM of $136.8 billion[9]

Financial Performance - Invesco reported third quarter diluted EPS of $0.66 and adjusted diluted EPS of $0.61, impacted by a non-cash impairment charge of $0.08[2][15][23] - Net income for Q3 2025 was $356.4 million, an 80.5% increase compared to $197.4 million in Q2 2025[41] - The diluted earnings per share (EPS) for Q3 2025 was $0.66, compared to a loss of $0.03 in Q2 2025[41] - Adjusted net income attributable to Invesco Ltd. for Q3 2025 was $275.4 million, up 66.8% from $165.2 million in Q2 2025 and 37.8% from $199.8 million in Q3 2024[47] - Adjusted operating income for Q3 2025 was $406.1 million, up from $344.4 million in Q2 2025[46] - Total operating expenses increased to $1,369.5 million in Q3 2025, a 5.2% rise from $1,301.3 million in Q2 2025[41] Assets Under Management (AUM) - Assets under management (AUM) reached a record $2.1 trillion, reflecting a 6.2% increase from the prior quarter and an 18.3% increase year-over-year[4][10] - Ending assets as of September 30, 2025, reached $2,124.8 billion, reflecting a 6.2% increase from the previous quarter[52] - Average long-term AUM for the three months ended September 30, 2025, was $1,462.0 billion, an 8.8% increase from the previous quarter[52] - Ending long-term AUM as of September 30, 2025, was $1,510.3 billion, a 6.7% increase from the previous quarter[52] Cash Flow and Capital Management - The company repaid $260 million of bank term loans and ended the quarter with a zero balance on its revolving credit agreement, indicating continued balance sheet strength[5][4] - The company repurchased 1.2 million common shares for $25 million during the quarter, reflecting its commitment to returning capital to shareholders[5][4] - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $1,069.5 million, up from $873.1 million in the same period of 2024, reflecting a growth of 22.5%[63] - The total cash and cash equivalents at the end of the period on September 30, 2025, were $1,523.8 million, compared to $1,639.4 million at the end of December 31, 2024, indicating a decrease of 7.0%[66] Market Performance and Inflows - The company achieved net long-term inflows of $28.9 billion for the quarter, a significant increase from $15.6 billion in the previous quarter, representing an annualized organic growth rate of 8%[5][6][9] - Total net flows for the three months ended September 30, 2025, increased by 71.7% to $26.1 billion compared to the previous quarter[52] - Long-term inflows for the same period rose by 16.6% to $138.4 billion, while long-term outflows increased by 6.2% to $109.5 billion[52] - The company reported a 68.8% increase in net flows in money market funds for the three months ended September 30, 2025, totaling $(5.4) billion[52] Tax and Regulatory Matters - The effective tax rate was (2.8%) for the quarter, a decrease from 28.1% in the previous quarter, primarily due to favorable tax resolutions[14][19] - The company removed a non-cash income tax benefit of $39.0 million in Q3 2025 related to deferred tax liabilities, aiding comparability of results[49] Debt and Equity - Total debt decreased to $1,624.6 million from $1,883.9 million, with $260.0 million of bank term loans repaid in Q2 2025[30] - The total equity attributable to Invesco Ltd. was $14,005.6 million as of September 30, 2025, compared to $14,559.9 million at the end of December 31, 2024, indicating a decrease of 3.8%[66]

Core Insights - Invesco reported a third quarter diluted EPS of $0.66 and an adjusted diluted EPS of $0.61, reflecting significant financial recovery compared to previous quarters [1][8][13]. Financial Performance - The company achieved operating revenues of $1,640.4 million, an increase of 8.2% from the previous quarter and the same percentage increase year-over-year [7][14]. - Operating income rose to $270.9 million, marking a 26.5% increase from the second quarter and a substantial 169.6% increase from the same quarter last year [7][14]. - The adjusted operating margin improved to 34.2%, up from 31.2% in the previous quarter and 31.6% year-over-year [7][25]. Assets Under Management (AUM) - Invesco's AUM reached a record $2.1 trillion, reflecting a 6.2% increase from the previous quarter and an 18.3% increase year-over-year [2][8][29]. - The company reported net long-term inflows of $28.9 billion for the quarter, significantly higher than $15.6 billion in the second quarter [3][4]. Net Flows - Retail and institutional net long-term inflows were $19.7 billion and $9.2 billion, respectively, with notable contributions from ETFs and Index funds, China JV & India, and Fundamental Fixed Income [4][8]. - The company experienced net long-term outflows from Fundamental Equities of $5.0 billion and Multi-Asset/Other of $0.3 billion [4]. Capital Management - Invesco reduced its debt by repaying $260 million of bank term loans, ending the quarter with a zero balance on its revolving credit agreement [8][29]. - The company repurchased 1.2 million common shares for $25 million during the quarter, demonstrating a commitment to returning capital to shareholders [8][30]. Tax and Non-Operating Income - The effective tax rate was reported at (2.8%), a significant decrease from 28.1% in the previous quarter, primarily due to favorable tax resolutions [12][17]. - Non-operating income included equity earnings of $34.8 million from unconsolidated affiliates, primarily from the China joint venture [11][16].

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, differing from other investment professionals within the firm [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, indicating a dynamic approach to investment management [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, highlighting the firm's extensive distribution network [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before investing [1] - The firm provides educational information but does not offer tax advice, highlighting the complexity and variability of federal and state tax laws [1] - Opinions expressed by Invesco's authors are based on current market conditions and may change without notice, indicating a dynamic investment environment [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - Invesco Advisers, Inc. and other affiliated investment advisers provide investment advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, including Invesco Distributors, Inc. [1]