Janus Henderson Group (NYSE:JHG) FY Conference September 08, 2025 03:30 PM ET Company ParticipantsAli Dibadj - Director & CEOBen Budish - DirectorBen BudishGood afternoon, everyone. Welcome to, I think, not quite our final session, but one of our final sessions of the day in here. I'm Ben Budish. I cover the U.S. brokers, asset managers, and exchanges. With us for this chat is Ali Dibadj, CEO of Janus Henderson Group plc.Ali DibadjHey, everybody.Ben BudishAli, thanks so much for being here. Welcome.Ali Diba ...

Company Overview - Janus Henderson Group plc (JHG) is headquartered in London and operates in the Finance sector, specifically in Investment Management [3] - The company has experienced a price change of 0.16% so far this year [3] Dividend Information - JHG currently pays a dividend of $0.40 per share, resulting in a dividend yield of 3.76%, which is higher than the Financial - Investment Management industry's yield of 2.72% and the S&P 500's yield of 1.49% [3] - The annualized dividend of $1.60 represents a 2.6% increase from the previous year [4] - Over the past 5 years, JHG has increased its dividend 3 times, averaging an annual increase of 1.70% [4] - The current payout ratio for JHG is 44%, indicating that the company pays out 44% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - JHG is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.62 per share, reflecting a 2.55% increase from the previous year [5] Investment Appeal - JHG is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [6] - The company is positioned well for income investors, especially in the context of improving stock investing profits and reducing overall portfolio risk [5][6]

Core Viewpoint - Janus Henderson Group plc (JHG) shows potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend from a technical perspective [1][4]. Technical Indicators - A "golden cross" occurs when a stock's short-term moving average (50-day) crosses above its long-term moving average (200-day), signaling a bullish breakout [2]. - The formation of a golden cross involves three stages: a downtrend that bottoms out, the crossover of moving averages, and a subsequent upward price movement [3]. Recent Performance - JHG shares have increased by 8.3% over the past four weeks, indicating positive momentum [4]. - The company holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting strong potential for further price appreciation [4]. Earnings Outlook - JHG has experienced five upward earnings revisions in the last 60 days, with no downward revisions, leading to an improved Zacks Consensus Estimate for the current quarter [4]. - The positive earnings outlook further strengthens the bullish case for JHG [4]. Investment Consideration - Given the technical indicators and positive earnings estimates, JHG is recommended for investors' watchlists [5].

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities for growth at a discount, especially when combined with strong fundamentals and positive business momentum [3][10] - Companies such as Janus Henderson Group plc (JHG), The Greenbrier Companies, Inc. (GBX), Precision Drilling (PDS), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Janus Henderson Group plc (JHG)**: A global asset management firm with a strong balance sheet and positive net inflows, positioned for long-term value creation [13] - **The Greenbrier Companies, Inc. (GBX)**: A leading supplier in freight transportation markets, benefiting from strong market demand and a profitable leasing business [15] - **Precision Drilling (PDS)**: An oilfield services company with a positive outlook supported by U.S. drilling activity and strategic expansions [17] - **The Mosaic Company (MOS)**: A major producer of phosphate and potash, experiencing strong demand and improving cost structures [20] - **PagSeguro Digital (PAGS)**: A financial services provider in Brazil, enhancing its digital banking platform and focusing on sustainable growth [22]

Financial Data and Key Metrics Changes - The company reported adjusted diluted EPS of $0.90, a 6% increase compared to the same period a year ago [30] - Adjusted revenue increased by 2% compared to the prior quarter and 9% compared to the prior year, primarily due to higher management fees on increased average AUM [25][30] - The adjusted operating margin for the second quarter was 33.5% [30] Business Line Data and Key Metrics Changes - The company achieved net inflows of $46.7 billion for the quarter, marking the fifth consecutive quarter of positive net flows [14][53] - Fixed income net inflows were $49.7 billion, significantly up from $5.6 billion in the prior quarter [21] - Equity flows were negative $2.6 billion, an improvement from $4.2 billion of net outflows in the prior quarter [21] Market Data and Key Metrics Changes - The U.S. market saw positive net flows for the eighth consecutive quarter, while EMEA, LatAm, and Asia Pacific experienced net outflows [17] - Institutional net inflows were $49 billion, compared to $800 million in the prior quarter, marking the third consecutive quarter of positive flows [19] - The company’s AUM increased by 23% to $457.3 billion, the highest quarterly AUM ever [8] Company Strategy and Development Direction - The company is focused on three strategic pillars: protect and grow core businesses, amplify strengths, and diversify where clients give the right to win [34] - The partnership with Guardian is expected to amplify the company’s insurance, institutional, and fixed income businesses [38] - The company aims to enhance client relationships by evolving from transactional to partnership-based interactions [40] Management's Comments on Operating Environment and Future Outlook - Management noted that business trends have stabilized despite market volatility, with strong alpha generation from investment teams [5] - The company is optimistic about its growth trajectory, particularly in the institutional channel, and is focused on broadening its reach [58] - Management emphasized the importance of delivering consistent investment performance to attract and retain clients [62] Other Important Information - The company completed a strategic partnership with Guardian, which includes a commitment of up to $400 million in seed capital for product innovation [7] - The company has reduced shares outstanding by over 22% since 2018 and continues to return capital to shareholders through dividends and share buybacks [32] Q&A Session Summary Question: What are the next priorities on the institutional side? - Management expressed satisfaction with the positive net flows in the institutional channel and indicated that they are broadening their reach among institutional players [56][58] Question: How does the company plan to address persistent outflows in retail equities? - Management remains confident in their equities franchise and is focused on delivering outstanding investment performance to regain market share [62] Question: Can you discuss the addressable market for the new product, JABS? - Management highlighted JABS as a client-led innovation aimed at meeting the demand for short-duration, high-quality fixed-rate securitized assets [71][73] Question: What is driving the strong improvement in investment performance? - Management noted that the improvement is largely due to US and global equity products that have rebounded above benchmarks [75][76] Question: What are the plans for the multi-asset segment? - Management indicated that there is growing interest in balanced funds and solutions, particularly in the U.S., Europe, and Asia [80][82]

Financial Data and Key Metrics Changes - The company reported adjusted diluted EPS of $0.90, representing a 6% increase compared to the same period a year ago [28] - Assets under management (AUM) increased by 23% to $457.3 billion, marking the highest quarterly AUM ever [8][50] - Adjusted revenue increased by 2% compared to the prior quarter and 9% compared to the prior year, primarily due to higher management fees on increased average AUM [23] Business Line Data and Key Metrics Changes - The company saw net inflows of $46.7 billion for the quarter, including $46.5 billion from Guardian's general account [14] - Fixed income net inflows were $49.7 billion, significantly up from $5.6 billion in the prior quarter [20] - Active fixed income ETFs delivered net inflows of $1 billion, with four ETFs each having at least $100 million of net inflows [21] Market Data and Key Metrics Changes - Net flows were positive in the U.S. for the eighth consecutive quarter, while EMEA, LatAm, and Asia Pacific experienced net outflows [16] - Institutional net inflows were $49 billion, marking the third consecutive quarter of positive flows [18] - The U.S. intermediary channel saw positive net flows despite a challenging flow environment [17] Company Strategy and Development Direction - The company is focused on three strategic pillars: protect and grow core businesses, amplify strengths, and diversify where clients give the right to win [32] - The partnership with Guardian is expected to amplify the company's insurance, institutional, and fixed income businesses [36] - The company aims to enhance client relationships by evolving from transactional to peer-to-peer partnerships [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of business trends despite recent market volatility [5] - The company is committed to delivering superior financial outcomes for clients and maintaining a strong balance sheet for future investments [50] - Management acknowledged the challenges in the retail equity business but remains confident in the equities franchise [60] Other Important Information - The company completed a strategic partnership with Guardian, which includes a commitment of up to $400 million in seed capital for product innovation [7] - The company has maintained a healthy quarterly dividend and has reduced shares outstanding by over 22% since 2018 [30] - The adjusted operating margin for the second quarter was 33.5% [28] Q&A Session Summary Question: What are the next priorities on the institutional side? - Management is pleased with the three consecutive quarters of institutional net flows and sees potential for continued growth, particularly with the Guardian partnership [54] Question: How do you see the solution to persistent outflows in retail equity business? - Management believes in the equities franchise and is focused on protecting and growing core businesses, emphasizing the importance of delivering outstanding investment performance [60] Question: Can you speak on the addressable market for the JAAD ECL product? - Management highlighted the successful launch of the JABS ETF, which addresses client needs for short-duration, high-quality fixed-rate securitized assets [70] Question: What is driving the strong improvement in investment performance? - The improvement is attributed to strong performance in U.S. and global equity products, with at least 72% of AUM ahead of benchmarks across all time periods [72] Question: What are the opportunities in the multi-asset space? - Management sees potential in the balanced fund and is optimistic about growing interest in multi-asset solutions, particularly in the U.S., Europe, and Asia [80]

Financial Performance - Janus Henderson Group reported quarterly earnings of $0.9 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of +7.14% [1] - The company posted revenues of $633.2 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.12%, and up from $588.4 million year-over-year [2] Stock Performance and Outlook - Janus Henderson Group shares have increased approximately 1.5% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for Janus Henderson Group was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $679.69 million, and for the current fiscal year, it is $3.53 on revenues of $2.63 billion [7] Industry Context - The Financial - Investment Management industry, to which Janus Henderson Group belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer Q2 2025 RESULTS Key metrics – Q2 2025 vs Q1 2025 | | Q2 2025 | Q1 2025 | | --- | --- | --- | | Investment outperformance3 3-/5-/10-year | 76/67/72% | 77/65/73% | | Total AUM1 | $457.3bn | $373.2bn | | Net flows2 | $46.7bn | $2.0bn | | U.S. GAAP diluted EPS | $0.95 | $0.77 | | Adjusted diluted EPS4 | $0.90 | $0.79 | | Dividend per share | $0.40 | $0.40 | Q2 2025 RESULTS Thursday, July 31, 2025 1 AUM and net flows include assets for whi ...

Part I. Financial Information [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) The unaudited financial statements for H1 2025 report total assets of $7.45 billion, Q2 revenue of $633.2 million, and net income attributable to JHG of $149.9 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $7.45 billion by June 30, 2025, driven by investments and intangible assets, while total liabilities decreased and equity grew Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $882.6 | $1,217.2 | | Investments (Current) | $380.7 | $337.1 | | Investments (Consolidated VIEs) | $1,059.4 | $502.1 | | Intangible assets, net | $2,540.5 | $2,473.3 | | Goodwill | $1,633.8 | $1,550.4 | | **Total Assets** | **$7,451.5** | **$6,963.1** | | **Liabilities & Equity** | | | | Long-term debt | $395.2 | $395.0 | | Total liabilities | $1,806.9 | $1,880.0 | | Total shareholders' equity | $4,768.6 | $4,591.5 | | **Total Liabilities & Equity** | **$7,451.5** | **$6,963.1** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2025 total revenue increased to $633.2 million, with net income attributable to JHG rising to $149.9 million, or $0.95 per diluted share Q2 2025 vs Q2 2024 Performance (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $633.2 | $588.4 | | Operating Income | $163.8 | $164.3 | | Net Income Attributable to JHG | $149.9 | $129.7 | | Diluted EPS | $0.95 | $0.81 | H1 2025 vs H1 2024 Performance (in millions, except EPS) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Revenue | $1,254.6 | $1,140.1 | | Operating Income | $317.4 | $283.5 | | Net Income Attributable to JHG | $270.6 | $259.8 | | Diluted EPS | $1.72 | $1.62 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow decreased to $138.0 million, while investing activities used $518.1 million and financing activities provided $11.9 million Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Operating Activities | $138.0 | $218.8 | | Net Investing Activities | $(518.1) | $(114.7) | | Net Financing Activities | $11.9 | $(230.1) | | **Net Change in Cash** | **$(323.0)** | **$(133.3)** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) The notes detail accounting policies, a new strategic partnership with Guardian Life Insurance, the acquisition of Victory Park Capital, and ongoing litigation - On June 30, 2025, JHG entered a strategic partnership with Guardian Life Insurance, recognizing a **$41.1 million** definite-lived intangible asset for managing Guardian's public fixed income portfolio[26](index=26&type=chunk)[28](index=28&type=chunk) - The acquisition of a **55% interest** in Victory Park Capital Advisors (VPC) was completed, with total consideration including **$114.0 million** in cash, JHG common stock, and contingent consideration valued at **$18.7 million** as of June 30, 2025[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - The company is involved in a class action lawsuit, Schissler v. Janus Henderson, alleging breaches of fiduciary duties related to the company's 401(k) plan. The company intends to vigorously defend against these claims[104](index=104&type=chunk) Dividends Declared and Paid (H1 2025) | Declaration Date | Dividend per Share | Total Paid (millions) | Payment Date | | :--- | :--- | :--- | :--- | | Jan 30, 2025 | $0.39 | $61.5 | Feb 27, 2025 | | Apr 30, 2025 | $0.40 | $63.8 | May 29, 2025 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports Q2 2025 AUM increased 27% to $457.3 billion, driven by the Guardian partnership, with revenue growing 8% to $633.2 million and net income attributable to JHG up 16% to $149.9 million [Second Quarter 2025 Summary](index=33&type=section&id=Second%20Quarter%202025%20Summary) Q2 2025 saw AUM grow 27% to $457.3 billion, driven by $46.7 billion in net inflows, with diluted EPS at $0.95 and $113.3 million returned to shareholders - AUM increased to **$457.3 billion**, up **27%** from June 30, 2024[115](index=115&type=chunk) - Q2 2025 net inflows were **$46.7 billion**, including **$46.5 billion** from the strategic partnership with Guardian[115](index=115&type=chunk) - **$113.3 million** was returned to shareholders through dividends and share buybacks during the second quarter[115](index=115&type=chunk) Investment Performance (% of AUM outperforming benchmark as of June 30, 2025) | Period | Equities | Fixed Income | Multi-Asset | Alternatives | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | 1-Year | 59% | 96% | 93% | 77% | 72% | | 3-Year | 67% | 88% | 94% | 86% | 76% | | 5-Year | 54% | 87% | 97% | 100% | 67% | | 10-Year | 61% | 93% | 97% | 100% | 72% | [Assets Under Management](index=35&type=section&id=Assets%20Under%20Management) Total AUM reached **$457.3 billion** by Q2 2025, a 21% increase from year-end 2024, driven by **$48.7 billion** in net inflows and positive market performance AUM Roll-Forward for Six Months Ended June 30, 2025 (in billions) | Capability | AUM Dec 31, 2024 | Net Sales | Markets | FX | AUM June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Equities | $229.4 | $(6.8) | $15.6 | $5.4 | $243.6 | | Fixed Income | $82.7 | $55.3 | $1.9 | $2.3 | $142.2 | | Multi-Asset | $53.1 | $(1.7) | $3.7 | $0.5 | $55.6 | | Alternatives | $13.5 | $1.9 | $(0.1) | $0.6 | $15.9 | | **Total** | **$378.7** | **$48.7** | **$21.1** | **$8.8** | **$457.3** | Closing AUM by Client Location (in billions) | Region | June 30, 2025 | June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | North America | $303.2 | $221.3 | 37% | | EMEA and Latin America | $115.4 | $104.2 | 11% | | Asia Pacific | $38.7 | $35.9 | 8% | | **Total** | **$457.3** | **$361.4** | **27%** | [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased 8% to $633.2 million, driven by management and performance fees, while operating expenses rose 11% to $469.4 million Revenue Breakdown (in millions) | Revenue Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Management fees | $507.0 | $472.8 | 7% | | Performance fees | $14.8 | $7.4 | 100% | | Shareowner servicing fees | $60.0 | $58.5 | 3% | | Other revenue | $51.4 | $49.7 | 3% | | **Total revenue** | **$633.2** | **$588.4** | **8%** | Operating Expenses Breakdown (in millions) | Expense Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Employee compensation & benefits | $179.0 | $166.3 | 8% | | Long-term incentive plans | $39.7 | $36.4 | 9% | | Distribution expenses | $132.9 | $126.6 | 5% | | General, administrative & occupancy | $80.4 | $66.9 | 20% | | Depreciation and amortization | $8.5 | $5.3 | 60% | | **Total operating expenses** | **$469.4** | **$421.1** | **11%** | - The increase in employee compensation was primarily due to higher average headcount following acquisitions completed in 2024[144](index=144&type=chunk) - The increase in depreciation and amortization was primarily driven by intangible assets from the acquisition of VPC in Q4 2024[155](index=155&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$870.4 million** in cash and an undrawn **$200 million** credit facility, while meeting regulatory capital requirements with a **$413.8 million** surplus - The company has a **$200 million** unsecured revolving credit facility maturing in June 2030, with no borrowings outstanding as of June 30, 2025[185](index=185&type=chunk)[186](index=186&type=chunk) - On April 30, 2025, the Board approved a new **$200 million** corporate share buyback program. As of June 30, 2025, **$49.5 million** had been repurchased under this program[178](index=178&type=chunk) - The FCA-supervised regulatory group held capital of **$413.8 million** above its requirement of **$218.2 million** as of June 30, 2025[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure were reported compared to the 2024 Annual Report on Form 10-K - There were no material changes in the company's market risk exposure compared to the 2024 Form 10-K[195](index=195&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[196](index=196&type=chunk) - No material changes were made to internal controls over financial reporting during the second quarter of 2025[197](index=197&type=chunk) Part II. Other Information [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 16 of the financial statements for details on the ongoing class action lawsuit regarding the company's 401(k) plan - For information on legal proceedings, the report refers to Note 16 of the Financial Statements[198](index=198&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K - No material changes to risk factors were reported since the Annual Report on Form 10-K for the year ended December 31, 2024[199](index=199&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details Q2 2025 share repurchase activities, including a new **$200 million** corporate buyback program and repurchases for employee share plans - A new **$200 million** share repurchase program (2025 Corporate Buyback Program) was approved on April 30, 2025[201](index=201&type=chunk) Common Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid | Value Remaining (millions) | | :--- | :--- | :--- | :--- | | April 2025 | — | $— | $200 | | May 2025 | 2,744,804 | $37.08 | $173 | | June 2025 | 1,099,700 | $36.51 | $150 | | **Total Q2** | **3,844,504** | **$36.92** | **$150** | [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) The report lists all filed exhibits, including employment agreements, CEO/CFO certifications, and XBRL data files - Key exhibits filed include an employment agreement with CEO Ali Dibadj, CEO/CFO certifications (Sections 302 and 906), and XBRL interactive data files[209](index=209&type=chunk)

[Janus Henderson Group plc Reports Second Quarter 2025 Results](index=1&type=section&id=Janus%20Henderson%20Group%20plc%20Reports%20Second%20Quarter%202025%20Results) [Overview of Q2 2025 Performance](index=1&type=section&id=Overview%20of%20Q2%202025%20Performance) Janus Henderson reported solid Q2 2025 results, achieving its fifth consecutive quarter of positive net flows, significant AUM growth, and increased capital returns Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Operating Income (GAAP)** | US$163.8M | US$153.6M | US$164.3M | | **Adjusted Operating Income** | US$167.0M | US$156.6M | US$164.7M | | **Diluted EPS (GAAP)** | US$0.95 | US$0.77 | US$0.81 | | **Adjusted Diluted EPS** | US$0.90 | US$0.79 | US$0.85 | - CEO Ali Dibadj highlighted the fifth consecutive quarter of positive net flows, totaling **US$46.7 billion**, as a key differentiator for the firm in the active management industry[4](index=4&type=chunk) - The strategic partnership with Guardian contributed **US$46.5 billion** in general account assets and **US$100 million** in seed funding for the new JABS ETF[5](index=5&type=chunk) - Total Assets Under Management (AUM) reached **US$457 billion** as of June 30, 2025, a **27% increase** year-over-year[6](index=6&type=chunk) - The company returned **US$113 million** to shareholders in Q2 2025 through dividends and share buybacks[6](index=6&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Summary of Financial Results](index=2&type=section&id=Summary%20of%20Financial%20Results) Q2 2025 financial results indicate GAAP revenue of **US$633.2 million** and **25.9%** operating margin, with adjusted figures showing **US$497.9 million** revenue and **33.5%** operating margin Q2 2025 Financial Summary (GAAP vs. Adjusted) | Metric (US$ millions) | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | Q2 2024 (GAAP) | Q2 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 633.2 | 497.9 | 588.4 | 458.3 | | **Operating Income** | 163.8 | 167.0 | 164.3 | 164.7 | | **Operating Margin** | 25.9% | 33.5% | 27.9% | 35.9% | | **Net Income (to JHG)** | 149.9 | 142.6 | 129.7 | 135.2 | | **Diluted EPS** | $0.95 | $0.90 | $0.81 | $0.85 | [Capital Return Program](index=2&type=section&id=Capital%20Return%20Program) The company declared a quarterly dividend of **US$0.40 per share** and repurchased **1.3 million shares** for approximately **US$50 million** in Q2 2025 - A quarterly dividend of **US$0.40 per share** was declared on July 30, 2025, payable on August 28, 2025[9](index=9&type=chunk) - As part of a **US$200 million program**, JHG repurchased **1.3 million shares** for approximately **US$50 million** in Q2 2025[10](index=10&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) Detailed Q2 2025 financial statements reveal **US$633.2 million** in total revenues, **US$149.9 million** net income, **US$7.45 billion** total assets, and **US$135.2 million** from operating activities Condensed Consolidated Statements of Comprehensive Income (Q2 2025) | Line Item (US$ millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Total Revenue** | 633.2 | 621.4 | 588.4 | | **Total Operating Expenses** | 469.4 | 467.8 | 424.1 | | **Operating Income** | 163.8 | 153.6 | 164.3 | | **Net Income Attributable to JHG** | 149.9 | 120.7 | 129.7 | | **Diluted EPS (US$)** | 0.95 | 0.77 | 0.81 | Condensed Consolidated Balance Sheet Highlights | Line Item (US$ millions) | 30 Jun 2025 | 31 Dec 2024 | | :--- | :--- | :--- | | **Total Assets** | 7,451.5 | 6,963.1 | | **Long-term Debt** | 395.2 | 395.0 | | **Total Equity** | 4,899.9 | 4,718.1 | Condensed Consolidated Statements of Cash Flows (Q2 2025) | Activity (US$ millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Operating Activities** | 135.2 | 2.8 | 223.8 | | **Investing Activities** | (290.8) | (227.3) | (60.4) | | **Financing Activities** | (67.7) | 79.6 | (50.9) | [Reconciliation of Non-GAAP Financial Information](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Information) This section details the reconciliation of GAAP to non-GAAP financial measures, adjusting revenue for pass-through fees and operating expenses for acquisition-related costs and non-cash amortization - Adjustments are made to GAAP figures to exclude items management believes are not representative of ongoing operations, such as acquisition-related expenses, certain non-cash costs, and pass-through distribution fees[26](index=26&type=chunk)[30](index=30&type=chunk) Q2 2025 Reconciliation of Net Income to Adjusted Net Income | Line Item (US$ millions) | Q2 2025 | | :--- | :--- | | **Net Income Attributable to JHG (GAAP)** | 149.9 | | Total Adjustments | (7.3) | | **Adjusted Net Income Attributable to JHG** | 142.6 | [Assets Under Management (AUM) & Flows](index=3&type=section&id=Assets%20Under%20Management%20(AUM)%20%26%20Flows) [AUM and Flow Summary](index=3&type=section&id=AUM%20and%20Flow%20Summary) Total AUM increased to **US$457.3 billion** in Q2 2025, driven by **US$46.7 billion** in net inflows and **US$37.4 billion** in market/FX movements, primarily from Fixed Income Total AUM and Flows (US$ billions) | Period | Opening AUM | Net Sales | Market / FX | Closing AUM | | :--- | :--- | :--- | :--- | :--- | | **Q2 2025** | 373.2 | 46.7 | 37.4 | 457.3 | | **Q1 2025** | 378.7 | 2.0 | (7.5) | 373.2 | | **Q2 2024** | 352.6 | 1.7 | 7.1 | 361.4 | Q2 2025 Net Flows by Capability (US$ billions) | Capability | Net Sales / (Redemptions) | | :--- | :--- | | Equities | (2.6) | | Fixed Income | 49.7 | | Multi-Asset | (1.1) | | Alternatives | 0.7 | | **Total** | **46.7** | Closing AUM by Capability (US$ billions) | Capability | 30 Jun 2025 | 31 Mar 2025 | | :--- | :--- | :--- | | Equities | 243.6 | 217.4 | | Fixed Income | 142.2 | 89.5 | | Multi-Asset | 55.6 | 51.6 | | Alternatives | 15.9 | 14.7 | | **Total** | **457.3** | **373.2** | [Investment Performance](index=4&type=section&id=Investment%20Performance) [Performance vs. Benchmark and Morningstar Rankings](index=4&type=section&id=Performance%20vs.%20Benchmark%20and%20Morningstar%20Rankings) As of June 30, 2025, Janus Henderson showed strong investment performance, with **72%** of AUM outperforming benchmarks over one year and **75%** of mutual fund AUM in the top two Morningstar quartiles % of AUM Outperforming Benchmark (as of June 30, 2025) | Capability | 1-year | 3-year | 5-year | 10-year | | :--- | :--- | :--- | :--- | :--- | | Equities | 59% | 67% | 54% | 61% | | Fixed Income | 96% | 88% | 87% | 93% | | Multi-Asset | 93% | 94% | 97% | 97% | | Alternatives | 77% | 86% | 100% | 100% | | **Total** | **72%** | **76%** | **67%** | **72%** | % of Mutual Fund AUM in Top 2 Morningstar Quartiles (as of June 30, 2025) | Capability | 1-year | 3-year | 5-year | 10-year | | :--- | :--- | :--- | :--- | :--- | | Equities | 65% | 68% | 68% | 88% | | Fixed Income | 87% | 79% | 63% | 70% | | Multi-Asset | 95% | 95% | 95% | 95% | | Alternatives | 90% | 41% | 90% | 94% | | **Total** | **75%** | **74%** | **72%** | **88%** | [Appendix](index=5&type=section&id=Appendix) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) A conference call and webcast for Q2 2025 results, hosted by CEO Ali Dibadj and CFO Roger Thompson, is scheduled for July 31, 2025, at 9:00 a.m. ET - The earnings conference call is scheduled for July 31, 2025, at 9:00 a.m. ET[21](index=21&type=chunk) - Webcast and slides will be available on the investor relations section of the company's website[21](index=21&type=chunk) [About Janus Henderson](index=5&type=section&id=About%20Janus%20Henderson) Janus Henderson is a global active asset manager with approximately **US$457 billion** in AUM, over **2,000 employees** across **25 cities**, headquartered in London and listed on the NYSE - As of June 30, 2025, the company managed approximately **US$457 billion** in assets[22](index=22&type=chunk) - The firm has a global presence with over **2,000 employees** and offices in **25 cities**[22](index=22&type=chunk) [Disclaimers and Forward-Looking Statements](index=9&type=section&id=Disclaimers%20and%20Forward-Looking%20Statements) This section provides standard legal disclaimers, cautioning that forward-looking statements are not guarantees of future performance and actual results may differ due to various risks - The report contains forward-looking statements that are not guarantees of future performance and involve known and unknown risks[38](index=38&type=chunk) - Key risks that could affect future results include changes in interest rates, inflation, market volatility, and investment performance[39](index=39&type=chunk)