Group 1 - T. Rowe Price Group, Inc. reported preliminary assets under management of $1.70 trillion as of July 31, 2025, with net flows for July remaining flat [1][3] - The breakdown of assets under management by asset class includes: - Equity: $859 billion (up from $839 billion in June 2025 and $830 billion in December 2024) - Fixed income, including money market: $202 billion (up from $200 billion in June 2025 and $188 billion in December 2024) - Multi-asset: $586 billion (up from $583 billion in June 2025 and $536 billion in December 2024) - Alternatives: $56 billion (up from $55 billion in June 2025 and $53 billion in December 2024) [2] - The firm's target date retirement portfolios accounted for $524 billion, an increase from $520 billion in June 2025 and $476 billion in December 2024 [2] Group 2 - T. Rowe Price has over 85 years of investment experience and is recognized for its leadership in retirement and independent proprietary research [3] - Approximately two-thirds of the firm's managed assets are related to retirement [3] - The company emphasizes a culture of integrity and prioritizes client interests, aiming to empower investors in changing market conditions [3]

Group 1 - T. Rowe Price Group (NASDAQ: TROW) primarily generates revenue from investment advisory fees associated with its equity funds [1] - The company's stock has experienced a significant decline, falling over 60% [1] Group 2 - The analyst has a beneficial long position in TROW shares through various financial instruments [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2]

Market Overview - The current market environment reflects the excesses of 2021, with volatility returning in early August, prompting considerations for more defensive positioning [2] - Job data indicates a shaky labor market, with only 73,000 jobs added in July and unemployment rising to 4.2% [3] - The Personal Consumption Expenditures (PCE) price index reached 2.6% in June, marking the highest reading since February [3] - Market indices have achieved new all-time highs, driven by strong earnings, particularly from AI hyperscalers [3][4] Company Performance - The market is increasingly concentrated, with the "Magnificent Seven" companies dominating the S&P 500, potentially overshadowing over 400 other companies [4] - Companies that reported less-than-stellar Q2 results faced significant declines in their stock prices, indicating high expectations and stretched valuations in the S&P 500 [4] Dividend Aristocrats - Dividend Aristocrats are companies in the S&P 500 with a minimum of 25 years of consecutive dividend increases, providing stability and predictable profits [6][7] - Johnson & Johnson (JNJ) has a dividend yield of 3.00%, an annual dividend of $5.20, and a 64-year track record of dividend increases, with a payout ratio of 55.61% [9][10] - Cincinnati Financial (CINF) offers a lower dividend yield of 2.32% but has a 65-year history of raising dividends and a payout ratio of 30.18%, indicating strong sustainability [12][13] - T. Rowe Price (TROW) boasts a dividend yield of 4.84% and a 39-year track record of increases, with a manageable payout ratio of 56.76% and a strong cash position [15][16]

Core Insights - T. Rowe Price released the "2025 Hong Kong Retirement Survey," indicating that over half of respondents believe they need more than HKD 5 million in savings for a comfortable retirement [1] - The survey reveals a shift in retirement perceptions, with 52% of respondents changing the traditional view of retiring at 65, favoring flexible retirement options like "micro-retirement" and "post-retirement employment" [1] Summary by Categories Retirement Savings Expectations - 36% of respondents believe they need HKD 5.01-10 million for retirement, while 16% think they need over HKD 10 million [1] - 38% of respondents feel that HKD 2-5 million is sufficient for retirement, and 10% believe HKD 2 million or less is adequate [1] Changing Retirement Trends - 52% of respondents are moving away from the traditional retirement age of 65 [1] - 47% are inclined towards innovative retirement models such as "micro-retirement" and "post-retirement employment" [1] Micro-Retirement Insights - 80% of respondents prefer "micro-retirement," which involves planned short-term breaks during their careers [1] - The ideal age for "micro-retirement" is perceived to be after 50, lasting over a year, with most indicating a need to accumulate over HKD 2 million in assets before considering it [1] High-Income Respondents - 70% of high-income individuals prefer flexible retirement options [1] - Only 51% of high-income respondents have set retirement savings goals, the lowest among all income groups [1] Investment Strategy Implications - The emergence of trends like "micro-retirement" and "post-retirement employment" suggests that investment strategies should evolve accordingly [1]

Technical Analysis - T. Rowe Price (TROW) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average is a useful tool for short-term traders as it smooths out price trends and provides more trend reversal signals compared to longer-term moving averages [2] Performance Metrics - TROW has moved 7.1% higher over the last four weeks, suggesting potential for further gains [4] - The company currently holds a Zacks Rank 1 (Strong Buy), indicating strong investor interest [4] Earnings Estimates - There have been positive earnings estimate revisions for TROW, with no estimates decreasing in the past two months and seven estimates increasing, leading to a higher consensus estimate [4][5] - The combination of positive technical factors and earnings estimate revisions suggests that TROW may continue to see gains in the near future [5]

Group 1 - T. Rowe Price (TROW) has reached a significant support level and is considered a good investment pick from a technical perspective, having recently broken through the 200-day moving average, indicating a long-term bullish trend [1] - Over the past four weeks, TROW has gained 7.1%, and it is currently ranked a Zacks Rank 1 (Strong Buy), suggesting potential for further upward movement [2] - Positive earnings estimate revisions bolster the bullish case for TROW, with no estimates decreasing in the past two months and seven estimates increasing, leading to a consensus estimate increase [3] Group 2 - The 200-day simple moving average is a useful tool for traders and analysts to determine long-term market trends, serving as a support or resistance level [2] - The combination of the technical indicator and positive earnings revisions makes TROW a candidate for investors' watchlists [3]

T. Rowe Price (NASDAQ: TROW ) just announced its Q2-2025 earnings on August 1st, and as always, the investor community kept their eyes fixed on whether this was the time outflows turned positive. Just to get it out there right off the bat; it Early 30s 'buy and hold' investor trying to achieve financial freedom to the greatest extent possible. Main focus within dividend growth investing & value. I've been investing for 10+ years and worked across several industries including finance, logistics, oil and phar ...

Core Insights - T. Rowe Price Group, Inc. (TROW) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.24, exceeding the Zacks Consensus Estimate of $2.15, but reflecting a year-over-year decline of approximately 1% [1][10] - The company's net income attributable on a GAAP basis was $505.2 million, representing a 4.5% increase from the prior-year quarter, surpassing the estimate of $431.9 million [2] - TROW's total assets under management (AUM) increased by 6.9% year over year to $1.68 trillion, driven by net market appreciation of $125.4 billion, although partially offset by net cash outflows of $14.9 billion [5][10] Financial Performance - Net revenues for TROW fell slightly year over year to $1.72 billion, missing the Zacks Consensus Estimate of $1.74 billion [3][10] - Investment advisory fees decreased marginally to $1.57 billion, which was above the estimate of $1.54 billion [3] - Total operating expenses rose by 6.5% to $1.25 billion, exceeding the estimate of $1.17 billion, while adjusted operating expenses were $1.15 billion, up 3.7% [4][10] Liquidity and Capital Distribution - As of June 30, 2025, TROW had cash and cash equivalents of $3.06 billion, an increase from $2.65 billion as of December 31, 2024, indicating a strong liquidity position [6] - The company distributed a total of $395 million to shareholders through common stock dividends and share repurchases in the second quarter [7] Strategic Outlook - TROW's solid AUM balance, expanding distribution reach, and diversification efforts through acquisitions are expected to support future top-line growth [8] - However, concerns remain regarding elevated expenses and reliance on investment advisory fees, alongside a challenging operating environment [8]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited consolidated financial statements for T. Rowe Price Group, Inc. for the quarter ended June 30, 2025 [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets grew to **$14.34 billion** by June 2025, with Q2 net income at **$505.2 million** Financial Metric (in millions) | Financial Metric | 6/30/2025 | 12/31/2024 | | :--- | :--- | :--- | | **Total Assets** | $14,342.2 M | $13,472.0 M | | **Total Liabilities** | $2,529.3 M | $2,021.9 M | | **Total Stockholders' Equity** | $10,560.5 M | $10,345.4 M | Income Statement (in millions) | Income Statement (in millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | $1,723.3 | $1,733.3 | $3,487.2 | $3,483.5 | | **Net Operating Income** | $478.3 | $564.7 | $1,074.6 | $1,151.3 | | **Net Income Attributable to T. Rowe** | $505.2 | $483.4 | $995.7 | $1,057.2 | | **Diluted EPS** | $2.24 | $2.11 | $4.38 | $4.60 | Cash Flows (YTD, in millions) | Cash Flows (YTD, in millions) | 6/30/2025 | 6/30/2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $1,162.8 | $1,315.0 | | **Net Cash used in Investing Activities** | $(56.8) | $(93.4) | | **Net Cash used in Financing Activities** | $(687.3) | $(575.5) | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue breakdowns, investment holdings, and significant commitments for future product launches Revenue & AUM (Six months ended 6/30/2025) | Revenue & AUM (Six months ended 6/30/2025) | Amount | | :--- | :--- | | **Total Investment Advisory Fees** | $3,166.0 M | | Equity Fees | $1,882.8 M | | Fixed Income Fees | $209.1 M | | Multi-Asset Fees | $910.6 M | | Alternatives Fees | $163.5 M | | **Average AUM** | $1,604.5 B | - The company's investment portfolio, excluding consolidated products, totaled **$3.36 billion** at June 30, 2025, up from **$3.00 billion** at year-end 2024, with key components including investments for deferred compensation hedges (**$1.05 billion**) and discretionary investments (**$719.0 million**)[33](index=33&type=chunk) - As of June 30, 2025, the company has **$261.0 million** of unrecognized compensation expense related to stock-based awards, expected to be recognized over remaining vesting periods through 2030[57](index=57&type=chunk)[58](index=58&type=chunk) - The company has committed **$330 million** for investment in future OHA product launches through 2026, with a contingent consideration of up to **$900 million** related to the OHA acquisition potentially payable in 2026-2027, though its fair value was zero as of June 30, 2025[72](index=72&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's performance amid a challenging industry environment, highlighting AUM growth, revenue changes, and operating margin compression [Market Trends and Assets Under Management (AUM)](index=22&type=section&id=Market%20Trends%20and%20AUM) Major U.S. and international stock markets rose in Q2 2025, driving AUM growth to **$1.677 trillion** despite net cash outflows - Major U.S. stock market indexes rose in Q2 2025, with the S&P 500 Index up **10.9%** and the NASDAQ Composite Index up **17.8%** for the quarter[84](index=84&type=chunk)[88](index=88&type=chunk) AUM Change Q2 2025 (in billions) | AUM Change Q2 2025 (in billions) | Equity | Fixed Income | Multi-asset | Alternatives | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **Beginning AUM** | $773.4 | $195.7 | $544.4 | $52.8 | $1,566.3 | | **Net Cash Flows** | $(18.1) | $1.2 | $0.9 | $1.1 | $(14.9) | | **Market Appreciation & Income** | $83.2 | $3.4 | $38.0 | $0.8 | $125.4 | | **Ending AUM** | $838.5 | $200.3 | $583.3 | $54.7 | $1,676.8 | [Investment Performance](index=25&type=section&id=Investment%20Performance) The company's long-term investment performance remains solid with **62%** of U.S. funds outperforming over 10 years, though short-term results are mixed % of U.S. Funds Outperforming Morningstar Median | % of U.S. Funds Outperforming Morningstar Median | 1 year | 3 years | 5 years | 10 years | | :--- | :--- | :--- | :--- | :--- | | **All Funds** | 35% | 54% | 50% | 62% | % of Composites Outperforming Benchmarks | % of Composites Outperforming Benchmarks | 1 year | 3 years | 5 years | 10 years | | :--- | :--- | :--- | :--- | :--- | | **All Composites** | 33% | 42% | 41% | 60% | - As of June 30, 2025, **47.2%** of the firm's rated U.S. mutual funds received an overall Morningstar rating of 4 or 5 stars, compared to **32.5%** for the broader Morningstar fund population[102](index=102&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2025 net revenues decreased **0.6%** to **$1.72 billion**, while operating expenses rose **6.5%**, compressing the GAAP operating margin to **27.8%** Financial Results (in millions, except EPS) | Financial Results (in millions, except EPS) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $1,723.3 | $1,733.3 | (0.6)% | | **Operating Expenses (GAAP)** | $1,245.0 | $1,168.6 | 6.5% | | **Net Operating Income (GAAP)** | $478.3 | $564.7 | (15.3)% | | **Diluted EPS (GAAP)** | $2.24 | $2.11 | 6.2% | - The average annualized effective fee rate (excluding performance fees) declined to **39.6 basis points** in Q2 2025 from **41.1 basis points** in Q2 2024, attributed to market movements and client flows shifting AUM toward lower-fee products[104](index=104&type=chunk)[118](index=118&type=chunk) - Technology, occupancy, and facility costs rose **11.5%** YoY to **$179.4 million** in Q2 2025, driven by higher technology costs and expenses related to the new corporate headquarters occupied in March 2025[124](index=124&type=chunk)[129](index=129&type=chunk) [Capital Resources and Liquidity](index=39&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains a strong liquidity position with **$3.8 billion** in cash and discretionary investments, returning **$901.0 million** to stockholders in H1 2025 Liquidity (in millions) | Liquidity (in millions) | 6/30/2025 | 12/31/2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $3,058.9 | $2,649.8 | | **Discretionary investments** | $749.6 | $457.1 | | **Total cash and discretionary investments** | $3,808.5 | $3,106.9 | - In the first half of 2025, the company repurchased **3.4 million** shares for **$326.1 million** and paid **$574.9 million** in dividends, totaling **$901.0 million** returned to stockholders[153](index=153&type=chunk)[154](index=154&type=chunk) - Anticipated capital expenditures for the full year 2025 are approximately **$282 million**, with over **80%** designated for technology initiatives[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) There have been no material changes in the company's market risks from those previously disclosed in its 2024 Form 10-K Annual Report - There has been no material change in the company's market risks from those provided in the Form 10-K Annual Report for 2024[170](index=170&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[171](index=171&type=chunk) - There were no changes in internal control over financial reporting during Q2 2025 that have materially affected or are likely to materially affect such controls[172](index=172&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings.) Information on legal proceedings is referenced in the Commitments and Contingencies footnote, with management assessing a remote likelihood of material adverse outcomes - Information on legal proceedings is located in the Commitments and Contingencies footnote (Note 11) of the financial statements[174](index=174&type=chunk)[74](index=74&type=chunk) - Management believes the likelihood of a material adverse effect from pending ordinary course of business claims is remote[74](index=74&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors.) There have been no material changes to the company's risk factors from those previously disclosed in its 2024 Form 10-K Annual Report - There have been no material changes in the risk factors from those provided in the Form 10-K Annual Report for 2024[175](index=175&type=chunk) [Share Repurchases](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company repurchased **1,230,409** shares at an average price of **$89.76** in Q2 2025, with **15.0 million** shares remaining under authorization Share Repurchase Activity (Q2 2025) | Month (2025) | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | April | 754,746 | $87.22 | | May | 261,218 | $93.63 | | June | 214,445 | $94.00 | | **Total Q2** | **1,230,409** | **$89.76** | - As of June 30, 2025, the maximum number of shares that may yet be purchased under the company's authorized programs is **15,025,865**[176](index=176&type=chunk)[178](index=178&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed as part of the Form 10-Q report, including required certifications by executive officers and XBRL financial statements - The filing includes required certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31(i).1 and 31(i).2) and Section 1350 Certifications (Exhibit 32)[182](index=182&type=chunk)

Company Performance - T. Rowe Price reported quarterly earnings of $2.24 per share, exceeding the Zacks Consensus Estimate of $2.15 per share, but down from $2.26 per share a year ago, representing an earnings surprise of +4.19% [1] - The company posted revenues of $1.72 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.72%, and down from $1.73 billion year-over-year [2] - T. Rowe has surpassed consensus EPS estimates three times over the last four quarters but has not beaten consensus revenue estimates during the same period [2] Stock Outlook - T. Rowe shares have declined approximately 10.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.30 for the coming quarter and $8.93 for the current fiscal year, with revenues expected to be $1.8 billion and $7.12 billion respectively [7] Industry Context - The Financial - Investment Management industry, to which T. Rowe belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]