Invesco(US:IVZ)2026-01-27 11:59Financial Performance - Invesco reported a fourth quarter diluted EPS of $(2.61) and an adjusted diluted EPS of $0.62, impacted by a non-cash intangible impairment of $1.8 billion[2][17]. - The adjusted operating margin for Q4 2025 was 36.4%, showing improvement despite the intangible impairment, while the operating margin was reported at (86.2)%[5][11]. - The company reported operating revenues of $1.692 billion for Q4 2025, a 3.1% increase from Q3 2025 and a 6.2% increase from Q4 2024[11][18]. - Adjusted net income attributable to Invesco Ltd. for 2025 was $922 million, up 17.9% from 2024, with adjusted diluted EPS increasing to $2.03[12][12]. - The company reported an operating loss of $695.7 million for 2025, compared to an operating income of $832.1 million in 2024[44]. - Net income attributable to Invesco Ltd. was a loss of $726.3 million, contrasting with a profit of $538.0 million in the previous year[44]. - Basic and diluted earnings per share (EPS) for 2025 were both $(1.60), compared to $1.18 in 2024[44]. - Adjusted operating income for the year was $1,557.8 million, up from $1,370.7 million in 2024, indicating improved operational performance[50]. - Adjusted diluted EPS for the year was $2.03, compared to $1.71 in 2024, reflecting a positive trend in adjusted earnings[51]. Assets and Liabilities - The company ended the quarter with record assets under management (AUM) of $2.2 trillion, reflecting a 2.1% increase from the prior quarter and a 17.5% increase year-over-year[4][12]. - Total assets increased to $2,169.9 billion, a 2.1% increase from the previous quarter and a 17.5% increase year-over-year[56]. - Total liabilities increased to $14,089.1 million as of December 31, 2025, from $11,340.1 million in 2024, representing a rise of 24.4%[65]. - Total equity attributable to Invesco Ltd. decreased to $12,231.0 million in 2025 from $14,559.9 million in 2024, a decline of 16.0%[65]. Cash Flow and Investments - Cash and cash equivalents reached $1,037.5 million at December 31, 2025, up from $973.1 million at September 30, 2025[31]. - Cash flows from operating activities for the year ended December 31, 2025, totaled $1,525.3 million, compared to $1,190.0 million in 2024, a growth of 28.2%[62]. - Cash flows from investing activities for the year ended December 31, 2025, were $(974.4) million, compared to $(240.0) million in 2024, indicating a significant increase in investment outflows[62]. - Cash flows from financing activities for the year ended December 31, 2025, were $(149.5) million, a decrease from $(1,661.6) million in 2024, showing a reduction in financing outflows[62]. - The company’s investments increased to $1,381.1 million as of December 31, 2025, from $1,240.0 million in 2024, reflecting an increase of 11.4%[65]. Revenue and Inflows - Invesco achieved net long-term inflows of $19.1 billion in Q4 2025, down from $28.9 billion in Q3 2025, with full-year inflows totaling $81.2 billion[5][6]. - Retail and institutional net long-term inflows were $10.2 billion and $8.9 billion, respectively, with significant contributions from ETFs and Index products[7][8]. - Long-term inflows for the twelve months ended December 31, 2025, reached $515.0 billion, a 22.9% increase compared to $419.0 billion in the previous year[56]. - Total net flows for the last quarter were $30.5 billion, a 16.9% increase from $26.1 billion in the previous quarter[56]. - Net long-term flows decreased by 33.9% to $19.1 billion in the last quarter, down from $28.9 billion in the previous quarter[56]. Operating Expenses - Total operating expenses rose significantly by 35.1% to $7,072.8 million, primarily due to a substantial increase in amortization and impairment of intangible assets[44]. - Operating expenses for Q4-25 were $3,150.1 million, an increase from $1,281.3 million in Q4-24, resulting in a year-over-year increase of 146.3%[53]. - Adjusted operating expenses for Q4-25 were $801.1 million, compared to $767.1 million in Q4-24, reflecting a 4.4% increase[53]. Market Position and Strategy - Invesco QQQ Trust converted to an open-end fund ETF on December 20, 2025, which is expected to enhance its market position[5]. - The company emphasized the importance of non-GAAP measures for assessing ongoing operational performance and making budgetary decisions[46]. - The company aims to improve net revenue yield on AUM, which is calculated as net revenues divided by average AUM during the reporting period[54].