Invesco (NYSE:IVZ) Q4 2025 Earnings call January 27, 2026 09:00 AM ET Company ParticipantsAllison Dukes - CFOAndrew Schlossberg - CEOGreg Ketron - Head of Investor RelationsConference Call ParticipantsAlexander Blostein - AnalystBenjamin Budish - AnalystBrendan Hawkins - AnalystBrian Bedell - AnalystDaniel Fannon - AnalystGlenn Schorr - AnalystWilliam Katz - AnalystOperatorWelcome to Invesco's fourth quarter earnings conference call. All participants will be in listen-only mode until the question and answer ...

Financial Data and Key Metrics Changes - Invesco's net revenue grew by 6% in 2025, with record revenues from ETF and index investment capabilities increasing by 22% [10][11] - Operating margin improved by 230 basis points, with a 14% growth in operating income and a 19% increase in earnings per share compared to the previous year [11][12] - Total assets under management (AUM) reached $2.2 trillion, an increase of $45 billion or 2% from the previous quarter and $324 billion or 18% year-over-year [25][26] Business Line Data and Key Metrics Changes - ETF and index capabilities generated $630 billion in AUM, with net inflows of nearly $12 billion during the fourth quarter, reflecting an 8% annualized organic growth [14][15] - Fundamental equity revenue was flat compared to the prior year but increased by 4% from 2023, with $5.5 billion in net outflows overall in this segment [10][22] - Private markets platform saw $300 million in net inflows, driven by direct real estate strategies, with INCREF now totaling $4.7 billion in assets [19][21] Market Data and Key Metrics Changes - Revenue from Asian and EMEA regions combined increased by 13% for the year, contributing to overall growth [10] - The China joint venture reached a record-high AUM of $132 billion, with net long-term inflows of $8.9 billion, marking a 36% annualized organic growth rate [17][18] - The Canadian market is becoming increasingly concentrated, prompting a strategic partnership with CI Global Asset Management [5][6] Company Strategy and Development Direction - Invesco is focusing on a hybrid alpha investment platform to streamline operations and improve profitability, with completion expected by the end of 2026 [4][33] - The company aims to accelerate growth in its $130 billion private markets platform through strategic partnerships and innovative product offerings [6][9] - Invesco's strategy includes a commitment to enhancing shareholder returns, with a target payout ratio of around 60% for 2026 [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong net inflows and a diversified product offering as key strengths [12][42] - The company is focused on maintaining a disciplined expense management approach while investing in growth opportunities [11][30] - Management highlighted the importance of achieving first quartile investment performance as a priority for maintaining market share [24] Other Important Information - Invesco repurchased $1.5 billion in preferred stock in 2025, reducing outstanding preferred stock from $4 billion to $2.5 billion [27][40] - The company expects to see a $0.20 EPS benefit from the preferred stock repurchase once associated debt is repaid [27][39] - The effective tax rate for the quarter was 21%, with expectations to return to the 25%-26% range in the first quarter of 2026 [39] Q&A Session Summary Question: Capital return priorities and potential M&A considerations - Management discussed the focus on increasing share buybacks to $40 million and the potential for further preferred stock repurchases while prioritizing debt repayment [45][46] - M&A opportunities will be considered if they align with the company's growth strategy, but the focus remains on organic growth [48][49] Question: Implementation costs and future expense outlook - Management confirmed that implementation costs for the hybrid platform are expected to decrease over time, with further guidance to be provided as 2026 progresses [51][52] Question: Net revenue yield and its future impact - Management indicated that the addition of the QQQ ETF is expected to stabilize net revenue yield, with ongoing dynamics influencing future projections [55][56] Question: Private market strategy and branding considerations - The company aims to build a comprehensive product offering through partnerships while maintaining clear branding to avoid channel conflicts [66][68]

分组1 - Invesco reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and up from $0.52 per share a year ago, representing an earnings surprise of +8.03% [1] - The company posted revenues of $1.26 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.39%, compared to year-ago revenues of $1.16 billion [2] - Invesco shares have increased approximately 9% since the beginning of the year, outperforming the S&P 500's gain of 1.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $1.27 billion, and for the current fiscal year, it is $2.62 on revenues of $5.24 billion [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Fourth Quarter 2025 Results Andrew Schlossberg President and Chief Executive Officer Allison Dukes Chief Financial Officer January 27, 2026 Forward-Looking Statements and Important Information This presentation and comments made in the associated conference call today may include "forward-looking statements." Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow, capital expenditures and AUM and could differ materially from event ...

Financial Performance - Invesco reported a fourth quarter diluted EPS of $(2.61) and an adjusted diluted EPS of $0.62, impacted by a non-cash intangible impairment of $1.8 billion[2][17]. - The adjusted operating margin for Q4 2025 was 36.4%, showing improvement despite the intangible impairment, while the operating margin was reported at (86.2)%[5][11]. - The company reported operating revenues of $1.692 billion for Q4 2025, a 3.1% increase from Q3 2025 and a 6.2% increase from Q4 2024[11][18]. - Adjusted net income attributable to Invesco Ltd. for 2025 was $922 million, up 17.9% from 2024, with adjusted diluted EPS increasing to $2.03[12][12]. - The company reported an operating loss of $695.7 million for 2025, compared to an operating income of $832.1 million in 2024[44]. - Net income attributable to Invesco Ltd. was a loss of $726.3 million, contrasting with a profit of $538.0 million in the previous year[44]. - Basic and diluted earnings per share (EPS) for 2025 were both $(1.60), compared to $1.18 in 2024[44]. - Adjusted operating income for the year was $1,557.8 million, up from $1,370.7 million in 2024, indicating improved operational performance[50]. - Adjusted diluted EPS for the year was $2.03, compared to $1.71 in 2024, reflecting a positive trend in adjusted earnings[51]. Assets and Liabilities - The company ended the quarter with record assets under management (AUM) of $2.2 trillion, reflecting a 2.1% increase from the prior quarter and a 17.5% increase year-over-year[4][12]. - Total assets increased to $2,169.9 billion, a 2.1% increase from the previous quarter and a 17.5% increase year-over-year[56]. - Total liabilities increased to $14,089.1 million as of December 31, 2025, from $11,340.1 million in 2024, representing a rise of 24.4%[65]. - Total equity attributable to Invesco Ltd. decreased to $12,231.0 million in 2025 from $14,559.9 million in 2024, a decline of 16.0%[65]. Cash Flow and Investments - Cash and cash equivalents reached $1,037.5 million at December 31, 2025, up from $973.1 million at September 30, 2025[31]. - Cash flows from operating activities for the year ended December 31, 2025, totaled $1,525.3 million, compared to $1,190.0 million in 2024, a growth of 28.2%[62]. - Cash flows from investing activities for the year ended December 31, 2025, were $(974.4) million, compared to $(240.0) million in 2024, indicating a significant increase in investment outflows[62]. - Cash flows from financing activities for the year ended December 31, 2025, were $(149.5) million, a decrease from $(1,661.6) million in 2024, showing a reduction in financing outflows[62]. - The company’s investments increased to $1,381.1 million as of December 31, 2025, from $1,240.0 million in 2024, reflecting an increase of 11.4%[65]. Revenue and Inflows - Invesco achieved net long-term inflows of $19.1 billion in Q4 2025, down from $28.9 billion in Q3 2025, with full-year inflows totaling $81.2 billion[5][6]. - Retail and institutional net long-term inflows were $10.2 billion and $8.9 billion, respectively, with significant contributions from ETFs and Index products[7][8]. - Long-term inflows for the twelve months ended December 31, 2025, reached $515.0 billion, a 22.9% increase compared to $419.0 billion in the previous year[56]. - Total net flows for the last quarter were $30.5 billion, a 16.9% increase from $26.1 billion in the previous quarter[56]. - Net long-term flows decreased by 33.9% to $19.1 billion in the last quarter, down from $28.9 billion in the previous quarter[56]. Operating Expenses - Total operating expenses rose significantly by 35.1% to $7,072.8 million, primarily due to a substantial increase in amortization and impairment of intangible assets[44]. - Operating expenses for Q4-25 were $3,150.1 million, an increase from $1,281.3 million in Q4-24, resulting in a year-over-year increase of 146.3%[53]. - Adjusted operating expenses for Q4-25 were $801.1 million, compared to $767.1 million in Q4-24, reflecting a 4.4% increase[53]. Market Position and Strategy - Invesco QQQ Trust converted to an open-end fund ETF on December 20, 2025, which is expected to enhance its market position[5]. - The company emphasized the importance of non-GAAP measures for assessing ongoing operational performance and making budgetary decisions[46]. - The company aims to improve net revenue yield on AUM, which is calculated as net revenues divided by average AUM during the reporting period[54].

Core Insights - Invesco reported a fourth quarter diluted EPS of $(2.61), significantly impacted by a non-cash intangible impairment of $1.8 billion, which reduced EPS by $3.01 [1][15] - The company achieved record assets under management (AUM) of $2.2 trillion, with net long-term inflows of over $19 billion, reflecting a 5% annualized organic growth [2][7] - The adjusted diluted EPS for the fourth quarter was $0.62, showing a 1.6% increase from the previous quarter and a 19.2% increase year-over-year [10][24] Financial Performance - Operating revenues for Q4 2025 were $1,692.0 million, a 3.1% increase from Q3 2025 and a 6.2% increase from Q4 2024 [10][11] - The operating income for Q4 2025 was $(1,458.1) million, compared to $270.9 million in Q3 2025 and $311.7 million in Q4 2024 [10][11] - The adjusted operating income increased to $457.8 million in Q4 2025, a 12.7% increase from Q3 2025 and a 17.4% increase from Q4 2024 [10][22] Asset Management and Flows - Net long-term inflows for Q4 2025 were $19.1 billion, down from $28.9 billion in Q3 2025, with retail inflows of $10.2 billion and institutional inflows of $8.9 billion [3][4] - The company experienced net long-term outflows from Fundamental Equities of $5.5 billion, while ETFs and Index products saw inflows of $11.9 billion [4][7] - AUM increased by 2.1% in Q4 2025, with average AUM rising by 4.9% during the same period [5][10] Capital Management - Invesco repurchased $500 million of its Series A Preferred Stock in December 2025, totaling $1.5 billion in repurchases for the year [30] - The company reduced its debt to $1,825.1 million by repaying $240 million of a bank term loan during Q4 2025 [31] - Cash and cash equivalents increased to $1,037.5 million at year-end 2025, up from $973.1 million at the end of Q3 2025 [30] Market Position and Strategy - Invesco's strategic focus on unlocking value and accelerating profitable growth has positioned the firm well for the evolving global asset management market [2] - The conversion of Invesco QQQ Trust to an open-end fund ETF on December 20, 2025, is expected to enhance revenue generation [7][10] - The company continues to prioritize deleveraging its balance sheet while returning capital to shareholders through share repurchases [2][7]

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a ...

Core Viewpoint - Morgan Stanley has set a price target of $29 for Invesco, indicating a potential increase of about 2.11% from its current trading price of $28.40 [1][6] Group 1: Financial Performance - Invesco is expected to report its fourth-quarter and full-year 2025 results on January 27, with a projected 2.1% increase in assets under management (AUM), reaching $2.17 trillion [2][6] - Performance fees for Invesco are projected to rise significantly to $30.8 million, up from $6.5 million in the previous quarter, which is likely to positively impact the company's earnings [3][6] - Invesco's adjusted earnings surpassed the Zacks Consensus Estimate in the previous quarter, driven by higher adjusted net revenues and an increased AUM balance, despite facing challenges with higher adjusted operating expenses [4] Group 2: Market Activity - Invesco's stock is currently priced at $28.40, experiencing a 2.87% decrease today, with a trading range between $28.32 and $29.07 [5] - Over the past year, Invesco's stock has reached a high of $29.61 and a low of $11.60, with a market capitalization of approximately $12.64 billion and a trading volume of 4,410,950 shares [5]

Key Takeaways Invesco's Q4 AUM rose 2.1% sequentially to $2.17T, driven by market gains and net long-term inflows.Performance fees are estimated to surge to $30.8M, up from $6.5M in the prior quarter.IVZ reclassified QQQ into an open-end ETF and partnered with LGT to expand private market access.Invesco (IVZ) is scheduled to announce fourth-quarter and full-year 2025 results on Jan. 27, before market open. The company’s quarterly earnings and revenues are expected to have witnessed a rise on a year-over-yea ...

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco offers expert investment views through its US Blog, encouraging individuals to stay informed [1] - The firm emphasizes the importance of reading the prospectus and considering investment objectives, risks, charges, and expenses before investing [1] - Invesco does not provide tax advice and highlights the complexity and variability of federal and state tax laws [1] Group 2 - The opinions expressed by Invesco's authors are based on current market conditions and may change without notice [1] - Invesco's investment advisory services are provided by affiliated investment advisers, and they do not sell securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc., and other broker-dealers [1]