Invesco(IVZ) - 2025 Q1 - Quarterly Results

Financial Performance - Invesco reported a diluted EPS of $0.38 and an adjusted diluted EPS of $0.44 for Q1 2025[2]. - Operating income increased by 18% year-over-year, with an operating margin of 18.1% and an adjusted operating margin of 31.5%[4][10]. - Total operating revenues for Q1 2025 were $1,529.2 million, a decrease of 4.0% from Q4 2024 and an increase of 3.7% from Q1 2024[37]. - Net income attributable to Invesco Ltd. for Q1 2025 was $171.1 million, down 18.3% from Q4 2024 but up 20.9% from Q1 2024[37]. - Adjusted operating income for Q1 2025 was $349.5 million, with an adjusted operating margin of 31.5%[42]. - Diluted earnings per share (EPS) for Q1 2025 was $0.38, a decrease of 17.4% from Q4 2024, but an increase of 22.6% from Q1 2024[44]. - The company reported a 12.0% increase in net income from Q4 2024 to Q1 2025, reaching $267.3 million[37]. - Adjusted net income attributable to Invesco Ltd. for Q1 2025 was $200.5 million, compared to $237.3 million in Q4 2024[44]. Assets Under Management (AUM) - The company achieved $17.6 billion in net long-term inflows for the quarter, with $1.8 trillion in ending AUM[5][6]. - Total Assets Under Management (AUM) at the end of Q1 2025 was $1,844.8 billion, a slight decrease of 0.1% from Q4 2024[48]. - Ending long-term AUM for Q1 2025 was $1,311.2 billion, a slight increase of 0.8% from $1,301.1 billion in Q4 2024[48]. - Average long-term AUM increased by 1.3% to $1,326.8 billion in Q1 2025 from $1,310.1 billion in Q4 2024[48]. - Average AUM increased by 3.1% during the first quarter, while ending AUM was flat compared to the previous quarter[8][10]. Cash and Dividends - A quarterly common stock dividend of $0.21 per share was announced, reflecting a strong cash position[5][29]. - Invesco repurchased 1.5 million common shares for $25 million during the quarter and announced a $1 billion repurchase of preferred stock held by MassMutual[5][27]. - Cash and cash equivalents at the end of the period were $1,873.4 million, an increase from $1,425.5 million at the end of the previous quarter[59]. - Total assets as of March 31, 2025, were $28,143.6 million, up from $27,008.9 million at the end of the previous quarter[62]. Market Performance and Flows - Long-term inflows for Q1 2025 were $122.0 billion, down 8.8% compared to $133.7 billion in Q4 2024[48]. - Net long-term flows decreased by 31.3% to $17.6 billion in Q1 2025 from $25.6 billion in Q4 2024[48]. - Total net flows in Q1 2025 were $32.6 billion, down 46.5% from $60.9 billion in Q4 2024[48]. - Total net flows for the three months ended March 31, 2025, were $11.5 billion, a decrease of 23.8% compared to $15.1 billion in the previous quarter[53]. - Long-term inflows increased to $60.6 billion, up 15.2% from $52.6 billion in the previous quarter[53]. - Long-term outflows decreased slightly to $59.1 billion, down 5.6% from $62.6 billion in the previous quarter[53]. - Net long-term flows for the Americas were negative at $(6.5) billion, while EMEA saw positive net flows of $7.8 billion[53]. Expenses and Tax Rate - Total operating expenses for Q1 2025 were $1,251.9 million, a decrease of 2.3% from Q4 2024[37]. - Adjusted operating expenses for Q1 2025 were $759.2 million, a decrease from $767.1 million in Q4 2024[45]. - Adjusted employee compensation for Q1 2025 was $490.3 million, up from $485.1 million in Q4 2024[45]. - The effective tax rate was 22.5% in Q1 2025, down from 24.8% in Q4 2024[14][18]. Strategic Initiatives - The company announced a new strategic partnership with MassMutual, including a $650 million initial investment to enhance private wealth offerings[5]. - The company emphasized the importance of non-GAAP measures for assessing ongoing operational performance and making comparisons to competitors[39]. Market Gains and Losses - Market gains and losses in Q1 2025 resulted in a loss of $42.2 billion, a significant increase compared to a loss of $2.5 billion in Q4 2024[48]. - Market gains and losses for the period resulted in a loss of $4.1 billion, a significant improvement from a loss of $17.0 billion in the previous quarter[53]. - The company reported a significant foreign currency translation gain of $7.4 billion in Q1 2025, compared to a loss of $20.5 billion in Q4 2024[48].