T. Rowe Price(US:TROW)2025-05-02 11:12Financial Performance - Diluted earnings per common share (EPS) were reported at $2.15, a decrease of 13.7% compared to $2.49 in Q1 2024[2]. - Adjusted diluted EPS was $2.23, down 6.3% from $2.38 in the same quarter last year[3]. - Net revenues for Q1 2025 were $1.76 billion, reflecting a 0.8% increase year-over-year but a 3.3% decrease from Q4 2024[8]. - Net income attributable to T. Rowe Price Group, Inc. for Q1 2025 was $490.5 million, down 14.5% from $573.8 million in Q1 2024[21]. - The adjusted net income for the same period was $509.3 million, with an adjusted diluted earnings per share of $2.23, compared to $548.5 million and $2.38 for the three months ended March 31, 2024[31]. Assets and Management - Total assets under management (AUM) decreased by $40.3 billion to $1.57 trillion as of March 31, 2025[4]. - The firm manages $1.57 trillion in assets under management as of March 31, 2025, with approximately two-thirds being retirement-related[17]. - The average AUM for the quarter was $1.62 trillion, up 9.2% from $1.48 trillion in Q1 2024[8]. - As of March 31, 2025, the firm's assets under administration were $280 billion, with $158 billion managed by the firm[6]. Client Activity - Net client outflows amounted to $8.6 billion during the quarter[3]. Operating Expenses - Total operating expenses for Q1 2025 were $1,167.6 million, an increase of 0.3% from Q1 2024 and a decrease of 7.0% from Q4 2024[10]. - Adjusted operating expenses for Q1 2025 were $1,135.1 million, reflecting a 5.9% increase from Q1 2024 and a 7.2% decrease from Q4 2024[10]. - Compensation, benefits, and related costs in Q1 2025 amounted to $657.9 million, up $28.6 million from Q1 2024, primarily due to higher salaries and employee benefits[10]. - Distribution and servicing costs in Q1 2025 were $93.6 million, an increase of 14.3% from Q1 2024, driven by higher average assets under management[10]. - Total operating income for the three months ended March 31, 2025, was $161.9 million, compared to $182.1 million for the same period in 2024[29]. Taxation - The effective income tax rate for Q1 2025 was 24.3%, compared to 23.5% in Q1 2024, primarily due to higher state taxes[13]. - The firm expects its effective tax rate for the full year 2025 to be in the range of 23.5% to 27.5% on a U.S. GAAP basis[14]. - The effective tax rate for the three months ended March 31, 2025, was 24.7%, slightly higher than 23.9% for the same period in 2024[30]. Non-Operating Income - Non-operating income for Q1 2025 was $70.7 million, a decrease of 62.6% from $188.9 million in Q1 2024[11]. - The total non-operating income (loss) for the three months ended March 31, 2025, was $70.7 million, compared to $188.9 million for the same period in 2024[29]. Cash and Investments - Cash and cash equivalents at the end of Q1 2025 were $2,836.7 million, an increase from $2,649.8 million at the end of 2024[23]. - Total assets as of March 31, 2025, were $13,993.7 million, up from $13,472.0 million at the end of 2024[23]. - The balance of investments in affiliated private investment funds decreased to $382.6 million in Q1 2025 from $514.3 million in Q1 2024[25]. - Non-controlling interests in consolidated entities decreased to $160.4 million in Q1 2025 from $205.4 million in Q1 2024[25]. Shareholder Returns - The firm returned $506 million to stockholders through dividends and stock repurchases during the quarter[3].