T. Rowe Price(US:TROW)2025-10-31 17:40Assets Under Management - Assets under management reached $1,767.2 billion as of September 30, 2025, an increase of $90.4 billion from June 30, 2025, primarily due to market appreciation and income of $89.1 billion, offset by net cash outflows of $7.9 billion[95]. - For the nine months ended September 30, 2025, assets under management increased by $182.8 billion, driven by market appreciation of $182.8 billion, despite net cash outflows of $31.4 billion[96]. - Target date retirement portfolios saw assets grow to $552.9 billion as of September 30, 2025, with net flows of $2.6 billion and $10.6 billion for the three- and nine-month periods, respectively[97]. - As of September 30, 2025, the company managed $315 billion in assets under administration, with $178 billion of those assets managed by the company[99]. Financial Performance - Net revenues for Q3 2025 reached $1,893.5 million, reflecting a 6.0% increase compared to $1,785.6 million in Q3 2024[106]. - Net income for Q3 2025 was $646.1 million, a 7.1% increase from $603.0 million in Q3 2024[106]. - Average Assets Under Management (AUM) for Q3 2025 were $1,723.0 billion, an increase of 8.4% from $1,589.5 billion in Q3 2024[106]. - Diluted earnings per share for Q3 2025 were $2.87, an increase of 8.7% from $2.64 in Q3 2024[106]. - Total net revenues for Q3 2025 were $1,893.5 million, a 6.0% increase from $1,785.6 million in Q3 2024, primarily driven by higher investment advisory fees[107][108]. - For the nine months ended September 30, 2025, total net revenues were $5,380.7 million, a 2.1% increase from $5,269.1 million in 2024, with a 2.8% rise in investment advisory fee revenue[114]. Operating Expenses - Operating expenses for Q3 2025 were $1,250.3 million, up 6.7% from $1,172.0 million in Q3 2024[106]. - Operating expenses on a U.S. GAAP basis were $1,250.3 million in Q3 2025, a 6.7% increase over the comparable 2024 period, influenced by restructuring charges and higher technology costs[110][111]. - Total operating expenses for Q3 2025 were $1,250.3 million, an increase of $78.3 million, or 6.7%, compared to $1,172.0 million in Q3 2024; for the nine months ended September 30, total operating expenses were $3,662.9 million, up $158.7 million, or 4.5%[127]. Investment Performance - Investment performance showed that 48% of U.S. funds outperformed the Morningstar median over the past year, with 61% of fixed income funds outperforming[101]. - The firm had 63 of 142 (44.4%) rated U.S. mutual funds receiving an overall rating of 4 or 5 stars as of September 30, 2025[104]. Cash Flow and Investments - Cash flow from operating activities for the nine months ended September 30, 2025, was $2,380.0 million, down from $2,339.4 million in 2024, indicating a decrease of about 1.7%[162]. - The company reported net cash used in financing activities of $1,315.7 million for the nine months ended September 30, 2025, compared to $1,089.4 million in 2024, representing an increase of approximately 21%[162]. - Total cash and discretionary investments reached $67.8 million for the three months ended September 30, 2025, up from $65.1 million in the same period of 2024, marking a 4.1% increase[139]. - Cash and cash equivalents increased to $3,634.8 million as of September 30, 2025, compared to $2,649.8 million at December 31, 2024[153]. Shareholder Returns - The company returned $4.2 billion to stockholders since the end of 2022 through stock repurchases and regular quarterly dividends[159]. - In the first nine months of 2025, T. Rowe Price repurchased 4.8 million shares at an average price of $100.59 per share, totaling $483.8 million[158]. - The quarterly recurring dividend per common share was increased by 2.4% to $1.27 in February 2025[158]. Strategic Initiatives - The company plans to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[149]. - The company has developed a broad plan to invest in existing and future capabilities while managing inflationary pressures on compensation and spending[86]. Market Conditions and Risks - The ability to attract and retain investor assets is dependent on market conditions, investment performance, and competitive factors in the financial services sector[172]. - Future revenues will fluctuate based on changes in the total value and composition of assets under management, influenced by client cash flows and market performance[171]. - The business is subject to substantial governmental regulation, which may impact operations and investor interest in investment products[174].