Invesco Reports Results for the Three Months and Year Ended December 31, 2025

Core Insights - Invesco reported a fourth quarter diluted EPS of $(2.61), significantly impacted by a non-cash intangible impairment of $1.8 billion, which reduced EPS by $3.01 [1][15] - The company achieved record assets under management (AUM) of $2.2 trillion, with net long-term inflows of over $19 billion, reflecting a 5% annualized organic growth [2][7] - The adjusted diluted EPS for the fourth quarter was $0.62, showing a 1.6% increase from the previous quarter and a 19.2% increase year-over-year [10][24] Financial Performance - Operating revenues for Q4 2025 were $1,692.0 million, a 3.1% increase from Q3 2025 and a 6.2% increase from Q4 2024 [10][11] - The operating income for Q4 2025 was $(1,458.1) million, compared to $270.9 million in Q3 2025 and $311.7 million in Q4 2024 [10][11] - The adjusted operating income increased to $457.8 million in Q4 2025, a 12.7% increase from Q3 2025 and a 17.4% increase from Q4 2024 [10][22] Asset Management and Flows - Net long-term inflows for Q4 2025 were $19.1 billion, down from $28.9 billion in Q3 2025, with retail inflows of $10.2 billion and institutional inflows of $8.9 billion [3][4] - The company experienced net long-term outflows from Fundamental Equities of $5.5 billion, while ETFs and Index products saw inflows of $11.9 billion [4][7] - AUM increased by 2.1% in Q4 2025, with average AUM rising by 4.9% during the same period [5][10] Capital Management - Invesco repurchased $500 million of its Series A Preferred Stock in December 2025, totaling $1.5 billion in repurchases for the year [30] - The company reduced its debt to $1,825.1 million by repaying $240 million of a bank term loan during Q4 2025 [31] - Cash and cash equivalents increased to $1,037.5 million at year-end 2025, up from $973.1 million at the end of Q3 2025 [30] Market Position and Strategy - Invesco's strategic focus on unlocking value and accelerating profitable growth has positioned the firm well for the evolving global asset management market [2] - The conversion of Invesco QQQ Trust to an open-end fund ETF on December 20, 2025, is expected to enhance revenue generation [7][10] - The company continues to prioritize deleveraging its balance sheet while returning capital to shareholders through share repurchases [2][7]