Group 1 - T. Rowe Price Group is an asset manager with an 88-year operating history, recognized for its ability to compound returns over time [1] - The company focuses on identifying high-quality companies with durable competitive advantages and strong balance sheets [1] - The investment strategy aims to purchase shares when they are available at irrational prices in the market [1]

Core Viewpoint - T. Rowe Price Group has experienced a decline of -7% since the previous analyses in July and September 2023, indicating a period of stagnation for the company [1]. Company Analysis - The company has been characterized as "dead money" over the recent months, reflecting a lack of significant movement in its stock price [1]. - The analyst has a beneficial long position in T. Rowe Price Group shares, indicating confidence in the company's future performance despite recent underperformance [2]. Market Context - The performance of T. Rowe Price Group is part of a broader market trend where past performance does not guarantee future results, highlighting the inherent risks in investment [3].

Core Viewpoint - T. Rowe Price Group, Inc. (TROW) reported a preliminary assets under management (AUM) of $1.56 trillion for April 2025, indicating a slight decrease from the previous month, alongside net outflows of $3.5 billion [1] AUM Performance Breakdown - As of the end of April, TROW's equity products amounted to $767 billion, showing a marginal decrease from the prior month [2] - Fixed income products, including money market, increased by 1% to $198 billion [2] - Multi-asset products totaled $545 billion, reflecting a slight increase from the previous month [2] - Alternative products remained stable at $53 billion compared to the prior month [2] - Target date retirement portfolios registered $485 billion, which saw a marginal rise from the previous month [3] Company Outlook - The company's diversified business model and ongoing efforts are expected to support top-line growth in the future, providing resilience amid market fluctuations [4] - However, the decline in AUM balance is viewed as discouraging, and there are concerns regarding the company's overdependence on investment advisory fees [4] Market Performance - Over the past six months, TROW shares have decreased by 17%, compared to a 9.4% decline in the industry [5] - T. Rowe Price currently holds a Zacks Rank of 4 (Sell) [7] Performance of Other Asset Managers - Franklin Resources, Inc. (BEN) reported a preliminary AUM of $1.53 trillion as of April 30, 2025, which decreased marginally due to long-term net outflows of $10 billion [8] - Virtus Investment Partners, Inc. (VRTS) announced a preliminary AUM of $163.7 billion as of April 30, 2025, down 2.2% from the previous month, primarily due to net outflows in various accounts [9]

Financial Data and Key Metrics Changes - The company closed 2024 with $1.61 trillion in assets under management and reported $43.2 billion in net client outflows, which were reduced by half year over year [32] Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided in the meeting Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed in the meeting Company Strategy and Development Direction and Industry Competition - The company emphasized the importance of its associates' dedication to clients and the firm, which drives confidence in the path ahead [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, attributing it to the dedication of associates and the firm's commitment to clients [32] Other Important Information - The company held a virtual annual meeting, which has become standard for many public companies, citing efficiency and accessibility for shareholders [25] Q&A Session All Questions and Answers Question: How does the compensation committee use the compensation actually paid total compensation figures in its calculation of the CEO target total compensation award for the upcoming year? - The compensation committee evaluates the CEO's performance independently each year and does not consider previous years' stock awards in determining the current year's award [21][22] Question: Why have in-person annual meetings not resumed after COVID? - The company finds virtual meetings to be efficient and has not received significant requests from shareholders to change the meeting format [25][26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-32191 ______________________________________ T. ROWE PRICE G ...

Core Insights - T. Rowe Price reported revenue of $1.76 billion for the quarter ended March 2025, reflecting a year-over-year increase of 0.8% but a slight miss against the Zacks Consensus Estimate of $1.77 billion, resulting in a revenue surprise of -0.39% [1] - The company's EPS for the quarter was $2.23, down from $2.38 in the same quarter last year, but it exceeded the consensus EPS estimate of $2.09, leading to an EPS surprise of +6.70% [1] Financial Performance Metrics - Assets Under Management (EOP) for Equity stood at $773.4 billion, below the average estimate of $806.24 billion [4] - Multi-asset Assets Under Management (EOP) were reported at $544.4 billion, compared to the average estimate of $553.12 billion [4] - Total Assets Under Management reached $1,566.3 billion, missing the average estimate of $1,607.56 billion [4] - Total net cash inflows were negative at $-8.6 billion, contrasting with the average estimate of $9.37 billion [4] - Net revenues from capital allocation-based income were reported at -$1.20 million, significantly lower than the estimated $6.07 million, marking a year-over-year decline of -102.6% [4] - Administrative, distribution, and servicing fees generated net revenues of $156.30 million, exceeding the average estimate of $142.50 million, representing a year-over-year increase of +4.8% [4] - Investment advisory fees totaled $1.60 billion, slightly below the estimated $1.61 billion, but reflecting a year-over-year increase of +2.9% [4] - Investment Advisory Fees from Alternatives were reported at $80.90 million, surpassing the estimated $72.05 million, with a year-over-year increase of +9.2% [4] - Multi-asset Investment Advisory Fees generated $454.70 million, slightly below the average estimate of $459.77 million, with a year-over-year increase of +5.8% [4] - Fixed income Investment Advisory Fees, including money market, were reported at $103.60 million, below the average estimate of $108.38 million, with a year-over-year increase of +3% [4] - Performance-based advisory fees were reported at $10.40 million, exceeding the estimated $10.09 million [4] - Equity Investment Advisory Fees totaled $959.20 million, slightly above the average estimate of $959.01 million, with a year-over-year increase of +1% [4] Stock Performance - T. Rowe Price shares returned +2.2% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - T. Rowe Price Group, Inc. reported better-than-expected adjusted earnings per share for Q1 2025, but experienced a year-over-year decline in net income and revenues, indicating mixed performance amidst rising expenses and market challenges [1][2][3]. Financial Performance - Adjusted earnings per share for Q1 2025 were $2.23, surpassing the Zacks Consensus Estimate of $2.09, but down 6.3% from the previous year [1]. - Net income on a GAAP basis was $490.5 million, a decline of 14.5% year-over-year, compared to an estimate of $439.8 million [2]. - Net revenues increased nearly 1% year-over-year to $1.76 billion, but fell short of the Zacks Consensus Estimate of $1.77 billion [3]. Revenue Sources - Investment advisory fees rose by 4% to $1.6 billion, exceeding the estimate of $1.63 billion [3]. - Capital allocation-based income significantly dropped to negative $1.2 million from $47.1 million in the prior-year quarter, primarily due to lower market returns [4]. Expenses and Costs - Total operating expenses increased slightly to $1.17 billion, below the estimate of $1.26 billion, while adjusted operating expenses were $1.14 billion, reflecting a 5.9% increase [4]. Assets Under Management (AUM) - As of March 31, 2025, total AUM grew 1.6% year-over-year to $1.57 trillion, although it was below the projected $1.69 trillion [5]. - The AUM was negatively impacted by net market depreciation and cash outflows totaling $8.6 billion [5]. Liquidity and Capital Distribution - The company maintained a strong liquidity position with cash and cash equivalents of $2.84 billion as of March 31, 2025, up from $2.65 billion at the end of 2024 [5]. - T. Rowe Price distributed $506 million to shareholders through dividends and share repurchases in the first quarter [6]. Strategic Outlook - The company’s solid AUM balance, expanding distribution reach, and diversification efforts through acquisitions are expected to support future growth [7]. - However, concerns remain regarding elevated expenses and reliance on investment advisory fees, alongside a challenging operating environment [7].

T. Rowe Price (TROW) came out with quarterly earnings of $2.23 per share, beating the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.70%. A quarter ago, it was expected that this financial services firm would post earnings of $2.23 per share when it actually produced earnings of $2.12, delivering a surprise of -4.93%.Over the last four quarters, ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2025 was $2.23, down from $2.38 in Q1 2024 but up from $2.12 in Q4 2024 [21] - Q1 2025 adjusted net revenue was $1.8 billion, a slight increase from Q1 2024 but down 3.6% from Q4 2024 [23] - Net outflows for the quarter were $8.6 billion, primarily driven by U.S. equities and rebalancing activity [21] Business Line Data and Key Metrics Changes - Target date franchise saw net inflows of $6.3 billion, led by blend products [22] - Fixed income had strong net inflows of $5.4 billion, mainly from institutional clients [22] - ETF business achieved net inflows of $3.26 billion, with eight ETFs each receiving over $100 million in inflows [22] Market Data and Key Metrics Changes - 99% of target date assets outperformed their peer group over three, five, and ten-year periods [10] - 60% of funds beat their peer groups across one, three, five, and ten-year timeframes [8] - Mixed results were observed in alternative portfolios, with private lending strategies generating the strongest gains [12] Company Strategy and Development Direction - The company is expanding its retirement solutions internationally, including partnerships in Japan and Korea [12][13] - Focus on enhancing ETF offerings and integrating strong equity research with hedging strategies [14] - Continued emphasis on managing expenses while investing in strategic initiatives [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged policy-driven market volatility affecting assets under management and revenues [7] - The outlook for 2025 remains largely unchanged, with expectations for improved flows relative to 2024 [58] - Management is optimistic about the growth potential in ETFs and private market alternatives [35][53] Other Important Information - The company maintains a strong balance sheet with $3.3 billion in cash and discretionary investments [19] - A quarterly dividend of $1.27 was announced, marking the 39th consecutive year of increases [19] - The company is recognized for its workplace culture and investment performance, receiving multiple accolades [16][17] Q&A Session Summary Question: ETF business growth and future opportunities - Management expressed excitement about the ETF business, highlighting strong performance and plans for future offerings [30][31] Question: Update on private lending and O Credit - Management noted $20 billion in private market alternatives, with O Credit seeing slower growth but potential for improvement [42][44] Question: Access to private market alternatives in retirement plans - Management indicated that private market alternatives will eventually gain access to defined contribution plans, but the timing is uncertain [48][53] Question: Flows and sales momentum outlook - Management reported that the flow outlook for the year is largely unchanged, with expectations for improvement in 2025 [58][61] Question: Fee rate dynamics - Management explained that the decrease in effective fee rate was driven by structural shifts towards lower-cost vehicles [65] Question: Expansion of retirement solutions outside the U.S. - Management detailed various international partnerships and the tailored approach to retirement solutions in different markets [72][75]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2025 was $2.23, down from $2.38 in Q1 2024 but up from $2.12 in Q4 2024 [18] - Q1 2025 net outflows were $8.6 billion, primarily driven by U.S. equities and rebalancing activity [18] - Adjusted net revenue for Q1 2025 was $1.8 billion, marginally increasing from Q1 2024 but down 3.6% from Q4 2024 [20] - Adjusted operating expenses for Q1 2025 totaled $1.1 billion, a 7.4% increase from Q1 2024 [22] Business Line Data and Key Metrics Changes - Target date franchise had net inflows of $6.3 billion, led by blend products [19] - Fixed income saw strong net inflows of $5.4 billion, primarily from institutional clients [19] - ETF business achieved net inflows of $3.26 billion, with eight ETFs each having inflows over $100 million [20] Market Data and Key Metrics Changes - The effective fee rate for Q1 2025 was 40 basis points, declining from the prior quarter and Q1 2024 due to a mix shift in assets [21] - Equity assets under management decreased from 52% to 49% of total AUM, while fixed income and multi-asset increased [63] Company Strategy and Development Direction - The company is expanding its retirement strategies beyond the U.S., including partnerships in Japan and Korea [10][11] - Focus on enhancing ETF offerings and building a robust pipeline of new products [12][36] - The company aims to leverage its capabilities in private market alternatives to meet growing client demand [49][85] Management's Comments on Operating Environment and Future Outlook - Management acknowledged policy-driven market volatility impacting assets under management and revenues [6] - The outlook for 2025 remains largely unchanged, with expectations for improved flows relative to 2024 [55] - Management is cautious about the competitive landscape in private lending and alternative investments [40][46] Other Important Information - The company maintains a strong balance sheet with $3.3 billion in cash and discretionary investments [16] - A quarterly dividend of $1.27 was announced, marking the 39th consecutive year of increases [16] - The company is being thoughtful about controllable expenses while investing in strategic initiatives [16] Q&A Session Summary Question: Steps to drive ETF success and future opportunities - Management highlighted strong performance, scaling products, and investment in sales capabilities as keys to ETF success [28][30] Question: Update on private lending and investor appetite - Private market alternatives total approximately $20 billion, with OHA seeing $54 million in flows for the quarter [40] Question: Potential for alternative investments in U.S. retirement channels - Management believes there will eventually be access to private market alternatives in defined contribution plans [45] Question: Flows and sales momentum outlook - The flow outlook for the year is largely unchanged, with expectations for improvement relative to 2024 [55] Question: Fee rate dynamics and future expectations - The decrease in effective fee rate was driven by structural shifts towards lower-cost vehicles [62] Question: Capital allocation and inorganic growth opportunities - The company is considering share buybacks and M&A opportunities, particularly in private market alternatives [81][85]