Company Performance - The stock of T. Rowe Price has risen by 3.54% in the past month, outperforming the Finance sector's gain of 0.75% and the S&P 500's gain of 3.25% [1] - T. Rowe Price's most recent trading session ended at $115.07, reflecting a -0.42% shift from the previous trading day's closing, lagging behind the S&P 500's daily gain of 0.26% [7] - The company is predicted to post an EPS of $2.19, indicating an 8.42% growth compared to the equivalent quarter last year, with a revenue estimate of $1.78 billion, up 10.29% from the prior-year quarter [8] Earnings Estimates - For the full year, the Zacks Consensus Estimates project earnings of $8.80 per share and a revenue of $7.12 billion, demonstrating changes of +15.94% and +10.16%, respectively, from the preceding year [2] - The Zacks Consensus EPS estimate has moved 0.65% higher over the last 30 days, and T. Rowe Price currently boasts a Zacks Rank of 1 (Strong Buy) [10] Valuation Metrics - T. Rowe Price currently has a Forward P/E ratio of 13.13, which signifies a premium compared to the average Forward P/E of 10.25 for its industry [4] - The company trades at a PEG ratio of 1.98, while its industry had an average PEG ratio of 0.91 as of yesterday's close [11] Industry Context - The Financial - Investment Management industry is part of the Finance sector, with a current Zacks Industry Rank of 141, placing it in the bottom 45% of all industries [5] - The Zacks Industry Rank evaluates the power of distinct industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [12]

The Zacks Consensus Estimate for T. Rowe Price's 2024 and 2025 earnings has been revised to 13.5% and 10.3% upward in the past 90 days, respectively. This shows that analysts are optimistic regarding the company's earnings growth prospects. TROW currently flaunts a Zacks Rank #1 (Strong Buy). Image Source: Zacks Investment Research Revenue Strength: Organic growth remains a key strength at T. Rowe Price, as reflected by its revenue growth story. Net revenues registered a four-year (ended 2023) compound annu ...

Core Viewpoint - T. Rowe Price is a well-established investment management firm with a strong history of dividend growth and competitive performance, but it faces challenges in attracting net flows and maintaining growth in a fluctuating market environment [2][12][25]. Company Strengths - T. Rowe Price has a competitive advantage due to its long-standing reliability and successful capital allocation, evidenced by its ability to increase dividends for 37 consecutive years [2][18]. - The company has demonstrated strong profitability metrics, including a Net Income Margin of 29.09% and a Return on Common Equity of 20.09%, which are competitive within the industry [6][7]. Company Weaknesses - Recent years have seen a decline in net flows, with the company experiencing four consecutive years of negative net flows, which is concerning given the strong performance of the stock market in 2023 [15][16]. - The growth rate of dividends has slowed significantly, with a recent 1-year dividend growth rate of only 1.66%, indicating potential challenges in sustaining dividend increases [21][23]. Dividend Analysis - T. Rowe Price is classified as a dividend aristocrat with a current dividend yield of 4.25%, but the growth of dividends has flattened out in recent years [18][21]. - The company has a Dividend Payout Ratio of 58%, which is slightly above its historical average, suggesting room for future dividend growth if net flows improve [23]. Performance Metrics - T. Rowe Price funds have generally outperformed benchmarks over the long term, with 70% of all funds outperforming their respective benchmarks over a 10-year period [3][4]. - The company’s profitability ratios, such as a Gross Profit Margin of 50.20% and an EBITDA Margin of 38.12%, indicate strong operational efficiency compared to sector medians [5][6]. Market Position - T. Rowe Price's market capitalization is significantly lower than that of industry giant BlackRock, which may contribute to its undervaluation despite strong fundamentals [8][10]. - The company’s valuation multiples, such as a P/E (FWD) of 13.49x, suggest it is trading at a discount compared to its historical averages and peers [11][28]. Future Outlook - The potential for recovery in net flows and AUM growth is contingent on the performance of equity funds, which have shown positive relative performance recently [27][28]. - Long-term growth in U.S. equities is expected to support the company’s recovery, making it a viable option for dividend investors [23][28].

In the context of valuation, T. Rowe Price is at present trading with a Forward P/E ratio of 13.39. This represents a premium compared to its industry's average Forward P/E of 10.47. Also, we should mention that TROW has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Management industry had an average PEG ratio of 0.94 as trading concluded yesterday. Regarding the enti ...

T. Rowe Price Group, Inc. (TROW) has announced a partnership with Ascensus to support its 529 business. This collaboration aims to strengthen the company's commitment to enhancing the education savings journey for 529 account owners. 529 education savings accounts are designed to enable customers to contribute funds tax-efficiently for expenses related to public or private college, technical/vocational schools, apprenticeship programs, education loan repayment, and certain primary and secondary school costs ...

Investors seeking attractive dividend yields amid the current uncertain macroeconomic environment can consider T. Rowe Price Group, Inc. (TROW) , a fundamentally solid investment manager. T. Rowe Price is a global investment management organization that provides a broad array of mutual funds, sub-advisory services and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company has hiked quarterly dividends every year since its IPO in 19 ...

[FORM 10-Q General Information](index=1&type=section&id=FORM%2010-Q%20General%20Information) [Registrant Information](index=1&type=section&id=Registrant%20Information) Key identification details for T. Rowe Price Group, Inc., confirming its filing status and outstanding common stock - T. Rowe Price Group, Inc. filed its quarterly report (Form 10-Q) for the period ended **March 31, 2024**[2](index=2&type=chunk) **Registrant Details:** | Detail | Value | | :--- | :--- | | Exact Name | T. ROWE PRICE GROUP, INC. | | State of Incorporation | Maryland | | Commission File Number | 000-32191 | | Trading Symbol | TROW | | Exchange | The NASDAQ Stock Market LLC | | Filer Status | Large accelerated filer | | Common Stock Outstanding (as of April 23, 2024) | 223,299,903 shares | [PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements.](index=3&type=section&id=Item%201.%20Financial%20Statements.) Unaudited condensed consolidated financial statements and accompanying notes for the quarter ended March 31, 2024 [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) **Condensed Consolidated Balance Sheet Highlights (in millions):** | Metric | 3/31/2024 | 12/31/2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $12,854.0 | $12,278.8 | +$575.2 | | Total Liabilities | $2,187.8 | $1,987.6 | +$200.2 | | Total Stockholders' Equity | $9,989.5 | $9,697.1 | +$292.4 | | Cash and cash equivalents | $2,416.5 | $2,066.6 | +$349.9 | | Accounts receivable and accrued revenue | $883.0 | $807.9 | +$75.1 | | Assets of consolidated sponsored investment products | $2,117.2 | $1,959.3 | +$157.9 | [Unaudited Condensed Consolidated Statements of Income](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) **Condensed Consolidated Statements of Income Highlights (in millions, except per-share amounts):** | Metric | 3/31/2024 | 3/31/2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $1,750.2 | $1,537.6 | +$212.6 | +13.8% | | Net Operating Income | $586.6 | $484.2 | +$102.4 | +21.1% | | Total Non-Operating Income (Loss) | $188.9 | $135.4 | +$53.5 | n/m | | Net Income Attributable to T. Rowe Price Group | $573.8 | $421.5 | +$152.3 | +36.1% | | Diluted EPS | $2.49 | $1.83 | +$0.66 | +36.1% | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) **Condensed Consolidated Statements of Comprehensive Income Highlights (in millions):** | Metric | 3/31/2024 | 3/31/2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $593.4 | $441.7 | +$151.7 | | Total Other Comprehensive Income (Loss) | $(3.7) | $7.4 | -$11.1 | | Total Comprehensive Income Attributable to T. Rowe Price Group | $571.7 | $422.8 | +$148.9 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) **Condensed Consolidated Statements of Cash Flows Highlights (in millions):** | Metric | 3/31/2024 | 3/31/2023 | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $637.3 | $511.7 | +$125.6 | | Net Cash Used in Investing Activities | $(8.6) | $(57.5) | +$48.9 | | Net Cash Used in Financing Activities | $(267.8) | $(144.2) | -$123.6 | | Cash and Cash Equivalents at End of Period | $2,503.9 | $2,186.2 | +$317.7 | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY) **Condensed Consolidated Statements of Stockholders' Equity Highlights (in millions):** | Metric | 3/31/2024 | 12/31/2023 | Change | | :--- | :--- | :--- | :--- | | Total Stockholders' Equity Attributable to T. Rowe Price Group, Inc. | $9,784.1 | $9,505.1 | +$279.0 | | Redeemable Non-controlling Interests | $676.7 | $594.1 | +$82.6 | | Net Income Attributable to T. Rowe Price Group | $573.8 | N/A | N/A | | Dividends Declared | $(285.0) | N/A | N/A | | Common Shares Repurchased | $(80.1) | N/A | N/A | [NOTE 1 – The Company and Basis of Preparation](index=8&type=section&id=NOTE%201%20%E2%80%93%20THE%20COMPANY%20AND%20BASIS%20OF%20PREPARATION.) - Primary revenue source is investment advisory services for individual and institutional investors across various asset classes[16](index=16&type=chunk) - Investment solutions are provided through U.S. mutual funds, subadvised funds, separately managed accounts, and other products[17](index=17&type=chunk) - New accounting guidance on **Segment Reporting (ASU 2023-07)** and **Income Tax Disclosures (ASU 2023-09)** will be adopted in 2025[21](index=21&type=chunk)[22](index=22&type=chunk) [NOTE 2 – Information About Receivables, Revenues, and Services](index=8&type=section&id=NOTE%202%20%E2%80%93%20INFORMATION%20ABOUT%20RECEIVABLES%2C%20REVENUES%2C%20AND%20SERVICES.) **Net Revenues and Average AUM by Asset Class (in millions/billions):** | Metric | 3/31/2024 | 3/31/2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues:** | | | | | | Investment advisory fees | $1,554.0 | $1,391.8 | +$162.2 | +11.7% | | Equity advisory fees | $949.6 | $833.9 | +$115.7 | +13.9% | | Multi-asset advisory fees | $429.7 | $386.0 | +$43.7 | +11.3% | | Capital allocation-based income | $47.1 | $16.9 | +$30.2 | n/m | | Total net revenues | $1,750.2 | $1,537.6 | +$212.6 | +13.8% | | **Average AUM:** | | | | | | Average AUM | $1,484.4 | $1,322.9 | +$161.5 | +12.2% | | Equity AUM | $770.4 | $687.0 | +$83.4 | +12.1% | | Multi-asset AUM | $497.0 | $422.2 | +$74.8 | +17.7% | - Accounts receivable from sponsored products aggregated to **$582.2 million** at March 31, 2024, up from **$533.9 million** at December 31, 2023[25](index=25&type=chunk) - Investment advisory clients outside the U.S. account for **8.5% of assets under management** at March 31, 2024[26](index=26&type=chunk) [NOTE 3 – Investments](index=10&type=section&id=NOTE%203%20%E2%80%93%20INVESTMENTS.) **Investment Carrying Values (in millions):** | Category | 3/31/2024 | 12/31/2023 | Change | | :--- | :--- | :--- | :--- | | Total Investments | $2,588.7 | $2,554.7 | +$34.0 | | Investments held at fair value (T. Rowe Price investment products) | $1,402.9 | $1,372.5 | +$30.4 | | Equity method investments | $1,006.3 | $1,006.4 | -$0.1 | | Held to maturity | $115.3 | $118.4 | -$3.1 | - Net gains on investments included **$64.5 million of net unrealized gains** related to investments held at fair value for Q1 2024[29](index=29&type=chunk) - The company has debt associated with affiliated CLOs totaling **$84.3 million** at March 31, 2024[32](index=32&type=chunk) [NOTE 4 – Fair Value Measurements](index=11&type=section&id=NOTE%204%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS.) **Fair Value Measurements (in millions) at 3/31/2024:** | Category | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | | Cash equivalents held in money market funds | $1,997.4 | $— | $— | | T. Rowe Price investment products (Discretionary, Seed capital, Supplemental savings plan hedges) | $1,097.3 | $50.7 | $— | | Investments in affiliated CLOs | $— | $7.9 | $— | | Contingent consideration liability | $— | $— | $13.4 | - The contingent consideration liability related to the OHA acquisition was **$13.4 million** at March 31, 2024, with no unrealized gains recognized in Q1 2024[41](index=41&type=chunk) [NOTE 5 – Consolidated Sponsored Investment Products](index=13&type=section&id=NOTE%205%20%E2%80%93%20CONSOLIDATED%20SPONSORED%20INVESTMENT%20PRODUCTS.) **Consolidated Sponsored Investment Products Net Assets (in millions):** | Metric | 3/31/2024 | 12/31/2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $2,117.2 | $1,959.3 | +$157.9 | | Total Liabilities | $71.1 | $54.2 | +$16.9 | | Net Assets Attributable to T. Rowe Price Group | $1,369.4 | $1,311.0 | +$58.4 | | Net Assets Attributable to Redeemable Non-controlling Interests | $676.7 | $594.1 | +$82.6 | **Impact on Income Statement (in millions):** | Metric | 3/31/2024 | 3/31/2023 | Change | | :--- | :--- | :--- | :--- | | Impact on Income Before Taxes | $70.0 | $41.8 | +$28.2 | | Net Income Attributable to T. Rowe Price Group | $50.4 | $21.6 | +$28.8 | | Net Income Attributable to Redeemable Non-controlling Interests | $19.6 | $20.2 | -$0.6 | - The assets of these consolidated investment products are **not available to the company's general creditors**[46](index=46&type=chunk) [NOTE 6 – Goodwill and Intangible Assets](index=16&type=section&id=NOTE%206%20-%20GOODWILL%20AND%20INTANGIBLE%20ASSETS.) **Goodwill and Intangible Assets (in millions):** | Asset Type | 3/31/2024 | 12/31/2023 | Change | | :--- | :--- | :--- | :--- | | Goodwill | $2,642.8 | $2,642.8 | $0.0 | | Indefinite-lived intangible assets | $182.7 | $182.7 | $0.0 | | Definite-lived intangible assets | $299.1 | $324.6 | -$25.5 | | Total | $3,124.6 | $3,150.1 | -$25.5 | - Amortization and impairment expense for definite-lived intangible assets was **$25.5 million** for Q1 2024[55](index=55&type=chunk) **Estimated Amortization Expense for Definite-Lived Intangible Assets (in millions):** | Year | Amount | | :--- | :--- | | Remaining 2024 | $64.5 | | 2025 | $84.7 | | 2026 | $67.6 | | 2027 | $46.0 | | 2028 | $14.3 | [NOTE 7 – Stock-Based Compensation](index=16&type=section&id=NOTE%207%20%E2%80%93%20STOCK-BASED%20COMPENSATION.) **Stock Options Status (as of 3/31/2024):** | Metric | Options | Weighted average exercise price | | :--- | :--- | :--- | | Outstanding at 12/31/2023 | 1,476,104 | $75.39 | | Exercised | (348,728) | $76.47 | | Expired | (1,768) | $76.75 | | Outstanding at 3/31/2024 | 1,125,608 | $75.06 | **Nonvested Restricted Shares and Stock Units Status (as of 3/31/2024):** | Metric | Restricted shares | Restricted stock units | Weighted average fair value | | :--- | :--- | :--- | :--- | | Nonvested at 12/31/2023 | 56,740 | 6,485,253 | $127.74 | | Vested | — | (40,241) | $98.65 | | Forfeited | — | (30,035) | $127.15 | | Nonvested at 3/31/2024 | 56,740 | 6,429,086 | $127.89 | **Estimated Future Stock-Based Compensation Expense (in millions):** | Period | Amount | | :--- | :--- | | Second quarter 2024 | $58.2 | | Third quarter 2024 | $57.2 | | Fourth quarter 2024 | $50.2 | | 2025 | $118.8 | | 2026 through 2029 | $88.4 | | Total | $372.8 | [NOTE 8 – Earnings Per Share Calculations](index=17&type=section&id=NOTE%208%20%E2%80%93%20EARNINGS%20PER%20SHARE%20CALCULATIONS.) **Earnings Per Share Calculations (in millions, except per-share amounts):** | Metric | 3/31/2024 | 3/31/2023 | Change | | :--- | :--- | :--- | :--- | | Net income attributable to T. Rowe Price | $573.8 | $421.5 | +$152.3 | | Net income allocated to common stockholders | $558.0 | $411.0 | +$147.0 | | Basic EPS | $2.50 | $1.83 | +$0.67 | | Diluted EPS | $2.49 | $1.83 | +$0.66 | | Weighted-average common shares outstanding assuming dilution | 224.2 | 225.2 | -1.0 | [NOTE 9 – Other Comprehensive Income and Accumulated Other Comprehensive Loss](index=18&type=section&id=NOTE%209%20%E2%80%93%20OTHER%20COMPREHENSIVE%20INCOME%20AND%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS.) **Changes in Currency Translation Adjustments (in millions):** | Metric | 3/31/2024 | 3/31/2023 | Change | | :--- | :--- | :--- | :--- | | Balances at beginning of period | $(47.5) | $(53.0) | +$5.5 | | Other comprehensive income (loss) before reclassifications and income taxes | $(2.9) | $1.9 | -$4.8 | | Total other comprehensive income (loss) | $(2.1) | $1.3 | -$3.4 | | Balances at end of period | $(49.6) | $(51.7) | +$2.1 | [NOTE 10 – Commitments and Contingencies](index=18&type=section&id=NOTE%2010%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES.) - T. Rowe Price has committed **$397 million** to fund OHA products over the next three years[66](index=66&type=chunk) - Management assesses the likelihood of a material adverse effect from ordinary course business claims as **remote**[67](index=67&type=chunk) [Report of Independent Registered Public Accounting Firm](index=19&type=section&id=REPORT%20OF%20INDEPENDENT%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRM) KPMG LLP's review concludes no material modifications are needed for the interim financial statements to conform with U.S. GAAP - KPMG LLP reviewed the interim financial information and found **no material modifications needed** for conformity with U.S. GAAP[69](index=69&type=chunk) - The consolidated balance sheet as of December 31, 2023, is **fairly stated in all material respects**[70](index=70&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management's perspective on financial condition, operational results, market trends, AUM, and capital resources [Overview](index=20&type=section&id=OVERVIEW.) - Revenues and net income are primarily from investment advisory services across equity, fixed income, multi-asset, and alternatives[74](index=74&type=chunk) - Investment advisory revenues are largely dependent on the total value and composition of **assets under management (AUM)**[75](index=75&type=chunk) - The company is investing in key capabilities to address industry challenges like passive investment growth and fee pressure[77](index=77&type=chunk) [Market Trends](index=20&type=section&id=MARKET%20TRENDS.) - U.S. stocks achieved strong first-quarter gains, driven by optimism about AI and projected Federal Reserve interest rate cuts[78](index=78&type=chunk) **Major Equity Market Index Returns (3 months ended 3/31/2024):** | Index | Return | | :--- | :--- | | S&P 500 Index | 10.6% | | NASDAQ Composite Index | 9.1% | | MSCI EAFE Index | 5.9% | | MSCI Emerging Markets Index | 2.4% | **Major Bond Market Index Returns (3 months ended 3/31/2024):** | Index | Return | | :--- | :--- | | Bloomberg U.S. Aggregate Bond Index | (0.8)% | | JPMorgan Global High Yield Index | 2.2% | | Bloomberg Municipal Bond Index | (0.4)% | | Bloomberg Global Aggregate Ex-U.S. Dollar Bond Index | (3.2)% | | JPMorgan Emerging Markets Bond Index Plus | 2.3% | | ICE Bank of America U.S. High Yield Index | 1.5% | | Credit Suisse Leveraged Loan Index | 2.5% | [Assets Under Management](index=22&type=section&id=ASSETS%20UNDER%20MANAGEMENT.) **Assets Under Management (AUM) (in billions):** | Metric | 3/31/2024 | 12/31/2023 | Change | | :--- | :--- | :--- | :--- | | Ending AUM | $1,542.2 | $1,444.5 | +$97.7 | | Market appreciation and income (Q1 2024) | $105.7 | N/A | N/A | | Net cash outflows (Q1 2024) | $(8.0) | N/A | N/A | **AUM by Asset Class (in billions) at 3/31/2024:** | Asset Class | AUM | | :--- | :--- | | Equity | $802.9 | | Multi-asset | $520.6 | | Fixed income, including money market | $170.9 | | Alternatives | $47.8 | - Assets under management in target date retirement products reached **$443.0 billion**, with net inflows of **$6.8 billion** in Q1 2024[87](index=87&type=chunk) [Investment Performance](index=22&type=section&id=INVESTMENT%20PERFORMANCE.) **% of U.S. Mutual Funds Outperforming Morningstar Median (as of 3/31/2024):** | Category | 1 year | 3 years | 5 years | 10 years | | :--- | :--- | :--- | :--- | :--- | | Equity | 55% | 45% | 53% | 68% | | Fixed Income | 53% | 51% | 56% | 65% | | Multi-Asset | 84% | 50% | 72% | 78% | | All Funds | 65% | 48% | 60% | 70% | **% of Composites Outperforming Benchmarks (as of 3/31/2024):** | Category | 1 year | 3 years | 5 years | 10 years | | :--- | :--- | :--- | :--- | :--- | | Equity | 58% | 31% | 51% | 64% | | Fixed Income | 55% | 31% | 52% | 69% | | All Composites | 57% | 31% | 51% | 66% | - As of March 31, 2024, **65% of AUM** in the firm's rated U.S. mutual funds had a 4 or 5-star overall rating from Morningstar[95](index=95&type=chunk) [Results of Operations](index=25&type=section&id=RESULTS%20OF%20OPERATIONS.) **Key Financial Results (U.S. GAAP, in millions, except per-share data):** | Metric | 3/31/2024 | 3/31/2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $1,750.2 | $1,537.6 | +$212.6 | +13.8% | | Operating Expenses | $1,163.6 | $1,053.4 | +$110.2 | +10.5% | | Net Operating Income | $586.6 | $484.2 | +$102.4 | +21.1% | | Net Income Attributable to T. Rowe Price | $573.8 | $421.5 | +$152.3 | +36.1% | | Diluted EPS | $2.49 | $1.83 | +$0.66 | +36.1% | - The increase in net revenues was primarily driven by an **11.7% increase in investment advisory fee revenue** due to higher average AUM[99](index=99&type=chunk) - **Operating margin improved to 33.5%** in Q1 2024 from 31.5% in Q1 2023[104](index=104&type=chunk) **Operating Expenses Breakdown (in millions):** | Expense Category | 3/31/2024 | 3/31/2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Compensation, benefits and related costs | $629.3 | $593.3 | +$36.0 | +6.1% | | Distribution and servicing | $81.9 | $71.5 | +$10.4 | +14.5% | | Technology, occupancy, and facility costs | $149.9 | $146.6 | +$3.3 | +2.3% | | General, administrative, and other | $92.6 | $107.5 | -$14.9 | -13.9% | | Change in fair value of contingent consideration | $— | $(49.6) | +$49.6 | -100.0% | [Provision for Income Taxes](index=30&type=section&id=Provision%20for%20income%20taxes) **Effective Income Tax Rate Reconciliation:** | Metric | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Statutory U.S. federal income tax rate | 21.0 % | 21.0 % | | State income taxes, net of federal benefits | 2.5 % | 3.0 % | | Valuation allowance | 0.5 % | 4.3 % | | Effective income tax rate | 23.5 % | 28.7 % | - The decrease in the effective tax rate was due to **lower valuation allowances** and favorable changes in state income apportionment rules[127](index=127&type=chunk) - Estimated full-year 2024 U.S. GAAP effective tax rate is in the range of **23% to 27%**[128](index=128&type=chunk) [Non-GAAP Information and Reconciliation](index=30&type=section&id=NON-GAAP%20INFORMATION%20AND%20RECONCILIATION.) **Adjusted Non-GAAP Financial Results (in millions, except per-share data):** | Metric | 3/31/2024 | 3/31/2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating Expenses | $1,071.4 | $1,022.5 | +$48.9 | +4.8% | | Net Operating Income | $692.4 | $528.0 | +$164.4 | +31.1% | | Net Income Attributable to T. Rowe Price | $548.5 | $389.4 | +$159.1 | +40.9% | | Diluted EPS | $2.38 | $1.69 | +$0.69 | +40.8% | - Non-GAAP adjustments remove the impact of acquisition-related costs and consolidated investment products for a clearer view of core results[130](index=130&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - The **non-GAAP effective tax rate was 23.9%** in Q1 2024, down from 30.3% in Q1 2023[126](index=126&type=chunk) [Capital Resources and Liquidity](index=32&type=section&id=CAPITAL%20RESOURCES%20AND%20LIQUIDITY.) **Total Cash and Investments in T. Rowe Price Products (in millions):** | Metric | 3/31/2024 | 12/31/2023 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $2,416.5 | $2,066.6 | +$349.9 | | Discretionary investments | $477.5 | $463.7 | +$13.8 | | Redeemable seed capital investments | $1,418.7 | $1,370.9 | +$47.8 | | Investments used to hedge supplemental savings plan liability | $929.0 | $894.6 | +$34.4 | | Total | $5,241.7 | $4,795.8 | +$445.9 | - The company increased its quarterly recurring dividend by **1.6% to $1.24 per common share** in February 2024[140](index=140&type=chunk) - Repurchased **717 thousand shares** of common stock for **$80.1 million** in Q1 2024[140](index=140&type=chunk)[142](index=142&type=chunk) - Anticipated capital expenditures for full-year 2024 are about **$485 million**[142](index=142&type=chunk) [Cash Flows](index=34&type=section&id=Cash%20Flows) **Cash Flows Attributable to T. Rowe Price (in millions):** | Activity | 3/31/2024 | 3/31/2023 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $739.5 | $672.7 | +$66.8 | | Net cash used in investing activities | $(34.4) | $(52.0) | +$17.6 | | Net cash used in financing activities | $(355.2) | $(282.2) | -$73.0 | - The increase in operating cash flows was primarily driven by a **$152.3 million increase in net income**[146](index=146&type=chunk) - Net cash used in financing activities increased due to **$83.1 million in common stock repurchases**[149](index=149&type=chunk) [Critical Accounting Policies](index=36&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES.) - The preparation of financial statements requires significant estimates and judgments[150](index=150&type=chunk) - **No material changes** have occurred in the critical accounting policies since the 2023 Annual Report on Form 10-K[151](index=151&type=chunk) [Newly-Issued But Not Yet Adopted Accounting Guidance](index=36&type=section&id=NEWLY-ISSUED%20BUT%20NOT%20YET%20ADOPTED%20ACCOUNTING%20GUIDANCE.) - Refer to Note 1 for details on newly issued accounting guidance (ASU 2023-07 and ASU 2023-09), effective in 2025[152](index=152&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Forward-Looking Information](index=37&type=section&id=FORWARD-LOOKING%20INFORMATION.) - Forward-looking information is not a guarantee of future performance, and actual results may differ materially[153](index=153&type=chunk) - Future results are primarily influenced by changes in **assets under management**, client cash flows, and market movements[154](index=154&type=chunk) - Other factors include investor sentiment, investment performance, fee levels, competition, and regulation[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) - **No material changes** in market risks from those provided in the Form 10-K Annual Report for 2023[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures.) - Disclosure controls and procedures were **effective** at the reasonable assurance level as of March 31, 2024[159](index=159&type=chunk) - **No material changes** to internal control over financial reporting occurred during the first quarter of 2024[160](index=160&type=chunk) [PART II – OTHER INFORMATION](index=38&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings.) Information regarding legal proceedings is referenced in the Commitments and Contingencies footnote (Note 10) - Legal proceedings information is detailed in **Note 10 – Commitments and Contingencies**[162](index=162&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors.) There have been no material changes to the risk factors previously disclosed in the 2023 Form 10-K Annual Report - **No material changes** in risk factors from those provided in the Form 10-K Annual Report for 2023[163](index=163&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company repurchased 808,962 shares of common stock during Q1 2024 at an average price of $110.84 per share **Common Stock Repurchase Activity (Q1 2024):** | Month | Total Shares Purchased | Average Price Paid per Share | Shares Purchased Under Public Program | | :--- | :--- | :--- | :--- | | January | 320,712 | $108.26 | 274,914 | | February | 274,732 | $108.84 | 231,120 | | March | 213,518 | $117.28 | 210,600 | | Total | 808,962 | $110.84 | 716,634 | - As of March 31, 2024, **5,631,883 shares** may yet be purchased under the March 2020 board authorization program[166](index=166&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) This item is not applicable to the company for the reporting period - Not applicable[167](index=167&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company for the reporting period - Not applicable[168](index=168&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information.) This item is not applicable to the company for the reporting period - Not applicable[169](index=169&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits furnished with the Form 10-Q report - Exhibits include corporate charter and by-laws, KPMG LLP's report, certifications, and XBRL-formatted financial documents[170](index=170&type=chunk)[171](index=171&type=chunk) [Signatures](index=40&type=section&id=SIGNATURES) - Report signed by Jennifer B. Dardis, Vice President, Chief Financial Officer and Treasurer, on **April 26, 2024**[173](index=173&type=chunk)

Financial Data and Key Metrics Changes - Total assets under management increased to $1.54 trillion as of March 31, 2024, representing a 15% increase compared to Q1 2023 [8] - Adjusted earnings per share for Q1 2024 was $2.38, up 40% from Q1 2023, driven by higher average AUM and investment advisory revenue [13] - Q1 adjusted net revenues were $1.8 billion, a nearly 14% increase from Q1 of last year [22] - Adjusted operating income increased 31% from Q1 2023 to $692 million, resulting in a rolling 12-month adjusted operating margin of 36% [23] Business Line Data and Key Metrics Changes - The retirement business is critical, with over $1 trillion in identifiable retirement assets, of which $676 billion (65%) are in U.S. defined contribution plans [28] - The target date franchise saw inflows of $6.8 billion, offset by outflows from other multi-asset products [21] - U.S. equity experienced net outflows, particularly in large and mid-cap growth strategies, but these outflows were less than half the level of the previous year [20] Market Data and Key Metrics Changes - Investment performance was solid, with 65% of funds beating their peer group one-year medians [9] - The firm retained its number one position among over 330 asset managers in the Institutional Investors 2024 ranking of America's top asset management firms [12] Company Strategy and Development Direction - The company is focused on evolving its retirement income solutions, including launching a managed lifetime income solution and a personalized retirement manager [39][38] - There is an emphasis on maintaining a strong cash position to support dividends, buybacks, and potential M&A opportunities [25] - The firm is adapting its expertise in the U.S. retirement market to pursue opportunities in international markets [35] Management's Comments on Operating Environment and Future Outlook - Management expects net outflows in 2024 but anticipates substantial improvement compared to last year, although monthly flows may be impacted by client activity [9] - The outlook for flows remains positive, with improved performance leading to less AUM marked as at risk and more notified unfunded wins [56] - Management is optimistic about the capital raising pipeline and expects mid-teens growth in capital under management for OHA [78] Other Important Information - The firm returned $365 million to shareholders in Q1 2024 through share buybacks and dividends [24] - The company has seen significant year-over-year gross sales improvement with wealth and individual investor clients [18] Q&A Session Summary Question: Retirement channel alternatives - The company is actively researching alternatives for retirement plans, but there are complexities around adding them to 401(k) plans due to daily NAV requirements and fee sensitivity [45][48] Question: Decumulation opportunities - The company believes there will not be a one-size-fits-all solution for retirement income and is focusing on offering a variety of solutions to meet diverse participant needs [52][54] Question: Trends in gross sales and redemptions - Management noted that the outlook for flows has not changed, with higher conviction that outflows will be substantially lower than last year [55][59] Question: Economics of DCIO vs. full-service record-keeping - The company sees strong potential in both segments, with proprietary products making up a significant portion of the retirement services business [68][70] Question: Growth drivers for OHA - Management is optimistic about the growth potential for OHA, particularly in dedicated senior private lending products, despite recent slower growth in fee-based AUM [78][79]

NEWS RELEASE T. ROWE PRICE GROUP REPORTS FIRST QUARTER 2024 RESULTS Capital allocation-based income represents the change in accrued carried interest. (2) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. (3) 1 ▪ Quarter-end assets under management of $1.54 trillion ▪ Net client outflows of $8.0 billion ▪ Diluted earnings per common share (EPS) of $2.49; Adjusted diluted EPS of $2.38 ▪ Returned $365 million to stockholders from the recurring quarterly dividend ...

Table of Contents Commission file number 000-32191 T. ROWE PRICE GROUP, INC. (Exact name of registrant as specified in its charter) Maryland 52-2264646 State of incorporation IRS Employer Identification No. 100 East Pratt Street, Baltimore, Maryland 21202 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...