Invesco(US:IVZ)2025-11-04 18:24Financial Performance - Invesco reported operating revenues of $1,640.4 million for Q3 2025, up from $1,515.4 million in Q3 2024, representing an increase of 8.3%[96] - The company achieved net long-term inflows of $28.9 billion in Q3 2025, resulting in total Assets Under Management (AUM) of $2.1 trillion, with an annualized organic growth rate of 7.9%[87] - Invesco's operating income for Q3 2025 was $270.9 million, significantly higher than $100.5 million in Q3 2024, reflecting a 169.5% increase[96] - The adjusted operating margin improved to 34.2% in Q3 2025, compared to 31.6% in Q3 2024[96] - The company reported a net income attributable to Invesco Ltd. of $301.3 million in Q3 2025, compared to $55.0 million in Q3 2024, marking a 447.0% increase[96] - The average AUM for the nine months ended September 30, 2025, was $1,946.2 billion, up from $1,674.8 billion in the same period of 2024[96] - Invesco's adjusted diluted EPS rose to $0.61 in Q3 2025, compared to $0.44 in Q3 2024, reflecting a 38.6% increase[96] - Total operating revenues for Q3 2025 were $1,640.4 million, an increase of $125.0 million or 8.2% compared to Q3 2024[136] - Net revenues for the nine months ended September 30, 2025, were $3,399.6 million, up from $3,243.3 million in 2024, reflecting a growth of 4.8%[183] - Adjusted operating income for the three months ended September 30, 2025, was $406.1 million, compared to $348.8 million in 2024, indicating a year-over-year increase of 16.4%[184] Assets Under Management (AUM) - Total AUM increased to $2,124.8 billion as of September 30, 2025, up from $1,795.6 billion a year earlier, reflecting a growth of approximately 18.3%[105] - Long-term inflows for the three months ended September 30, 2025, were $138.4 billion, compared to $107.2 billion in the same period of 2024, representing a year-over-year increase of 29.1%[105] - Net long-term flows for the three months ended September 30, 2025, were $28.9 billion, a significant increase from $16.5 billion in the prior year, marking a growth of 74.5%[105] - Market gains for the three months ended September 30, 2025, contributed $99.0 billion to AUM, compared to $49.8 billion in the same period of 2024, indicating an increase of 99.6%[105] - Average long-term AUM for the three months ended September 30, 2025, was $1,462.0 billion, up from $1,257.2 billion in 2024, reflecting a growth of 16.2%[106] - Total net flows for the nine months ended September 30, 2025, were $73.9 billion, compared to $57.4 billion in the same period of 2024, representing a year-over-year increase of 28.8%[106] - Total Assets Under Management (AUM) increased to $2,124.8 billion as of September 30, 2025, up from $1,715.8 billion a year earlier, representing a growth of 23.9%[112] - Long-term inflows for the three months ended September 30, 2025, were $138.4 billion, compared to $107.2 billion for the same period in 2024, reflecting a year-over-year increase of 29.1%[116] - Net long-term flows for the three months ended September 30, 2025, were $26.1 billion, a significant increase from $12.7 billion in the same period of 2024, marking a growth of 105.5%[116] Expenses and Cost Management - Total operating expenses for Q3 2025 were $1,369.5 million, a decrease of $45.4 million or 3.2% from Q3 2024[153] - Employee compensation expenses for Q3 2025 were $521.6 million, a decrease of $103.8 million or 16.6% compared to Q3 2024[153] - Third-party distribution, service, and advisory expenses increased to $558.3 million for the three months ended September 30, 2025, from $499.6 million in the same period of 2024, driven by higher average AUM[1] - General and administrative expenses rose to $151.3 million for the three months ended September 30, 2025, compared to $140.8 million in the same period of 2024, mainly due to costs related to a newly launched CIP[1] - Total operating expenses for the three months ended September 30, 2025, decreased by $45.4 million to $1,369.5 million compared to $1,414.9 million for the same period in 2024[1] Shareholder Returns and Capital Management - The company repurchased 1.2 million common shares for $25 million during Q3 2025 and paid a dividend of $0.21 per common share[88] - The company repurchased $1.0 billion of its outstanding Series A Preferred Stock in the second quarter of 2025[199] - The company declared a cash dividend of $0.21 per common share for Q3 2025, payable on December 2, 2025[227] - The preferred dividend declared was $14.75 per preferred share for the period from September 1, 2025, to November 30, 2025, payable on December 1, 2025[228] - The company repurchased 4.4 million common shares for $75 million during the nine months ended September 30, 2025[230] Market Performance and Gains - The company experienced a market gain of $29.4 billion during the quarter, contributing positively to the overall AUM[121] - The total market gains and losses for the nine months ended September 30, 2025, amounted to $58.7 billion, highlighting strong performance in the market[123] - Market gains contributed $69.6 billion to the total AUM during the same period, indicating strong market performance[126] - The company reported a total of $124.5 billion in market gains for the nine months ended September 30, 2025, highlighting robust investment performance[129] Foreign Exchange and Other Impacts - The company experienced a foreign exchange impact of $2.7 billion decrease in AUM for the three months ended September 30, 2025, compared to an increase of $16.3 billion in the same period of 2024[111] - The company experienced a foreign currency translation impact of $18.7 billion for the nine months ended September 30, 2025, compared to $4.2 billion in the same period of 2024, indicating a substantial increase in currency effects[119] - The company reported a foreign currency translation impact of $(2.8) billion for the quarter, which affected the overall AUM[121] Tax and Regulatory Matters - The effective tax rate decreased to 15.0% for the nine months ended September 30, 2025, down from 25.3% for the same period in 2024, primarily due to favorable tax resolutions[180] - The company believes that non-GAAP measures provide valuable insight into ongoing operational performance and assist in comparisons to competitors[181] - No changes to critical accounting policies disclosed in the most recent Form 10-K for the year ended December 31, 2024[242] - Critical accounting policies require management's most difficult, subjective, or complex judgments, critical for understanding results of operations and financial condition[242]