Core Viewpoint - Invesco's Q3 2025 earnings report shows strong performance with adjusted earnings surpassing estimates and record AUM, despite some challenges from increased operating expenses and a non-cash impairment charge [2][3]. Financial Performance - Adjusted earnings for Q3 2025 were 61 cents per share, exceeding the Zacks Consensus Estimate of 45 cents, marking a 38.6% increase year-over-year [2]. - Net income attributable to common shareholders was $301.3 million or 66 cents per share, up from $55 million or 12 cents per share in the same quarter last year [3]. - Adjusted net revenues reached $1.19 billion, a 7.4% increase year-over-year, meeting the Zacks Consensus Estimate [4]. Assets Under Management (AUM) - AUM as of September 30, 2025, was a record $2.12 trillion, reflecting an 18.3% year-over-year increase [5]. - The average AUM for the third quarter was $2.06 trillion, also up 18.3% [5]. - Long-term net inflows for the quarter totaled $28.9 billion, driven by ETFs, Index, China JV, India, Fundamental Fixed Income, and Private Markets [5]. Expenses and Margins - Adjusted operating expenses were $780.2 million, a 3.3% increase year-over-year [4]. - The adjusted operating margin improved to 34.2%, up from 31.6% a year ago [4]. Balance Sheet and Share Repurchases - Cash and cash equivalents as of September 30, 2025, were $973.1 million, up from $922.7 million as of June 30, 2025 [6]. - Long-term debt stood at $1.62 billion [6]. - In the reported quarter, Invesco repurchased 1.2 million shares for $25 million [7]. Future Outlook - Management anticipates one-time implementation costs of Alpha to be between $10 million and $15 million in Q4 2025 [8]. - The expected non-GAAP effective tax rate for Q4 2025 is projected to be in the range of 25-26% [8]. - The total payout ratio is expected to be near 60% in 2025 and 2026 [9]. Market Sentiment - There has been an upward trend in estimates for Invesco, indicating positive market sentiment [10]. - Invesco currently holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [12]. Investment Scores - Invesco has a subpar Growth Score of D and a Momentum Score of F, but a grade of B on the value side, placing it in the top 40% for this investment strategy [11]. - The aggregate VGM Score for Invesco is C, which is relevant for investors not focused on a single strategy [11].

Core Insights - Invesco's third-quarter 2025 adjusted earnings per share (EPS) reached 61 cents, significantly exceeding the Zacks Consensus Estimate of 45 cents, marking a 38.6% increase from the previous year [1][9] - The company's shares rose by 2.3% in pre-market trading following the announcement of these results [1] Financial Performance - Adjusted net revenues for the quarter were $1.19 billion, reflecting a year-over-year increase of 7.4%, meeting the Zacks Consensus Estimate [4] - Adjusted operating expenses rose to $780.2 million, up 3.3% year over year, while the adjusted operating margin improved to 34.2%, compared to 31.6% in the prior year [4][9] Assets Under Management (AUM) - As of September 30, 2025, AUM reached a record $2.12 trillion, representing an 18.3% increase year over year [5] - The average AUM at the end of the third quarter was $2.06 trillion, also up 18.3% [5] - The company experienced long-term net inflows of $28.9 billion during the quarter, driven by various segments including ETFs, Index, and Private Markets [5] Balance Sheet and Share Repurchases - As of September 30, 2025, cash and cash equivalents stood at $973.1 million, an increase from $922.7 million as of June 30, 2025 [6] - Long-term debt was reported at $1.62 billion [6] - In the reported quarter, Invesco repurchased 1.2 million shares for $25 million [7] Strategic Outlook - Invesco's strong AUM balance, diverse product offerings, and solid balance sheet are expected to support its financial performance [10] - The company is positioned to benefit from synergies arising from acquisitions, which will aid profitability [10]

Core Insights - Invesco reported a third quarter diluted EPS of $0.66 and an adjusted diluted EPS of $0.61, reflecting significant financial recovery compared to previous quarters [1][8][13]. Financial Performance - The company achieved operating revenues of $1,640.4 million, an increase of 8.2% from the previous quarter and the same percentage increase year-over-year [7][14]. - Operating income rose to $270.9 million, marking a 26.5% increase from the second quarter and a substantial 169.6% increase from the same quarter last year [7][14]. - The adjusted operating margin improved to 34.2%, up from 31.2% in the previous quarter and 31.6% year-over-year [7][25]. Assets Under Management (AUM) - Invesco's AUM reached a record $2.1 trillion, reflecting a 6.2% increase from the previous quarter and an 18.3% increase year-over-year [2][8][29]. - The company reported net long-term inflows of $28.9 billion for the quarter, significantly higher than $15.6 billion in the second quarter [3][4]. Net Flows - Retail and institutional net long-term inflows were $19.7 billion and $9.2 billion, respectively, with notable contributions from ETFs and Index funds, China JV & India, and Fundamental Fixed Income [4][8]. - The company experienced net long-term outflows from Fundamental Equities of $5.0 billion and Multi-Asset/Other of $0.3 billion [4]. Capital Management - Invesco reduced its debt by repaying $260 million of bank term loans, ending the quarter with a zero balance on its revolving credit agreement [8][29]. - The company repurchased 1.2 million common shares for $25 million during the quarter, demonstrating a commitment to returning capital to shareholders [8][30]. Tax and Non-Operating Income - The effective tax rate was reported at (2.8%), a significant decrease from 28.1% in the previous quarter, primarily due to favorable tax resolutions [12][17]. - Non-operating income included equity earnings of $34.8 million from unconsolidated affiliates, primarily from the China joint venture [11][16].

Core Insights - Invesco reported $1.1 billion in revenue for Q2 2025, a year-over-year increase of 1.7%, but the EPS decreased to $0.36 from $0.43 a year ago, indicating a decline in profitability [1] - The revenue fell short of the Zacks Consensus Estimate by -0.54%, and the EPS was -12.2% below the consensus estimate [1] Financial Performance Metrics - Invesco's shares have returned +35.3% over the past month, significantly outperforming the Zacks S&P 500 composite's +5.9% change, and the stock holds a Zacks Rank 1 (Strong Buy) [3] - Assets Under Management (AUM) for ETFs and Index reached $546.90 billion, exceeding the average estimate of $512.82 billion [4] - Total average AUM was reported at $1,897.40 billion, higher than the estimated $1,855.71 billion [4] - AUM for Fundamental Fixed Income was $301.60 billion, surpassing the estimate of $297.02 billion [4] - AUM for Private Markets was $131.20 billion, above the average estimate of $129.82 billion [4] - AUM for China JV & India was $120.20 billion, compared to the estimate of $114.48 billion [4] - AUM for Multi-Asset/Other was $64.10 billion, exceeding the estimate of $60.48 billion [4] - AUM for Global Liquidity was $196.40 billion, slightly below the estimate of $197.85 billion [4] - AUM for QQQs was $352.70 billion, significantly higher than the estimate of $314.54 billion [4] - Average AUM for ETFs & Index was $509.70 billion, above the estimate of $501.91 billion [4] Revenue Breakdown - Operating revenues from Other revenues were $48.2 million, below the estimate of $53.25 million, but showed a +2.1% year-over-year change [4] - Service and distribution fees generated $363.8 million, lower than the estimated $375.77 million, with a year-over-year change of +0.6% [4] - Performance fees were reported at $2.6 million, significantly below the average estimate of $8.99 million, reflecting a -70.1% year-over-year decline [4]

Financial Performance - Ending AUM reached a record $2 trillion[9], with long-term AUM growing by 16% year-over-year[22] - Net long-term inflows were $156 billion, representing an annualized organic growth of 47%[9, 22] - Net revenues increased by 17% year-over-year, while expenses increased by 13%[22] - Adjusted operating margin improved by 30 basis points compared to the second quarter of 2024[22] - Share buybacks of $25 million, representing 17 million shares, were executed[22] Asset Flows and AUM Composition - ETFs and Index strategies saw net inflows of $126 billion[9] - Fundamental Fixed Income experienced net inflows of $28 billion, including over $4 billion from The Peoples Pension fund in the UK[9] - Fundamental Equities had net outflows of $36 billion, with positive flows from Global/Regional equities offset by outflows in emerging markets ($23 billion) and global equities ($22 billion)[9] - Private Markets experienced net outflows of $23 billion, offset by positive flows in real estate and CLOs[9] Geographic and Channel Performance - Americas accounted for 70% of total firm AUM[11] - Asia Pacific accounted for 15% of total firm AUM[11] - EMEA accounted for 15% of total firm AUM[11] - Retail channel represented 68% of total firm AUM, while the Institutional channel represented 32%[11]

Core Viewpoint - Invesco Ltd. reported a second quarter diluted EPS of $(0.03) and an adjusted diluted EPS of $0.36, impacted by costs related to the repurchase of preferred stock [1][14]. Financial Performance - The company generated $16 billion in net long-term inflows during the quarter, achieving a record $2 trillion in assets under management (AUM), which represents a 16% increase year-over-year [2][8]. - Operating revenues for Q2 2025 were $1,515.5 million, a decrease of 0.9% from Q1 2025 but an increase of 2.2% compared to Q2 2024 [7][15]. - The operating income was $214.2 million, down 22.8% from Q1 2025 but up 3.6% from Q2 2024 [7][15]. - The adjusted operating income was $344.4 million, with an adjusted operating margin of 31.2% [7][22]. Net Flows - Net long-term inflows were $15.6 billion in Q2 2025, down from $17.6 billion in Q1 2025 [3][6]. - Retail and institutional net long-term inflows were $9.1 billion and $6.5 billion, respectively, with significant contributions from ETFs and Index, China JV & India, and Fundamental Fixed Income [4][8]. Assets Under Management - Ending AUM increased by 8.5% to $2,001.4 billion from $1,844.8 billion in Q1 2025, and by 16.6% from $1,715.8 billion in Q2 2024 [9][8]. - Average AUM rose by 0.9% during the quarter [9]. Capital Management - The company repurchased $1 billion of its preferred stock and continued to repurchase common shares, totaling 1.7 million shares for $25 million during the quarter [2][27]. - Cash and cash equivalents stood at $922.7 million as of June 30, 2025, up from $821.7 million at the end of Q1 2025 [25]. - Total debt increased to $1,883.9 million, which includes $1 billion in new bank term loans for the preferred stock repurchase [26]. Tax and Earnings - The effective tax rate for Q2 2025 was 28.1%, up from 22.5% in Q1 2025 [13][17]. - Adjusted net income attributable to Invesco Ltd. was $165.2 million, down 17.6% from Q1 2025 [9][41].

Core Insights - Invesco Ltd. reported a diluted EPS of $0.38 and an adjusted diluted EPS of $0.44 for Q1 2025, reflecting a decrease from the previous quarter but an increase compared to the same quarter last year [1][19][13]. Financial Performance - The company achieved operating revenues of $1,529.2 million, a decrease of 4.0% from Q4 2024 but an increase of 3.7% from Q1 2024 [6][9]. - Operating income was $277.3 million, down 11.0% from Q4 2024 but up 30.1% from Q1 2024 [6][9]. - The operating margin for Q1 2025 was 18.1%, while the adjusted operating margin was 31.5% [6][8]. - Net income attributable to Invesco Ltd. was $171.1 million, down 18.3% from Q4 2024 but up 20.9% from Q1 2024 [6][9]. Asset Management - Invesco's ending assets under management (AUM) were flat at $1,844.8 billion, with average AUM increasing by 3.1% during the quarter [5][8]. - The company experienced net long-term inflows of $17.6 billion in Q1 2025, a decrease from $25.6 billion in Q4 2024 [3][4]. - The breakdown of net long-term inflows included $16.3 billion from ETFs and Index, $8.0 billion from Fundamental Fixed Income, and $2.2 billion from China JV & India, offset by outflows from Fundamental Equities and Multi-Asset/Other [4][7]. Capital Management - Invesco announced a $1 billion repurchase of its preferred stock held by MassMutual and executed share buybacks during the quarter [2][7]. - The company increased its quarterly common stock dividend to $0.21 per share, reflecting a strong cash position and stable cash flows [2][7]. - Cash and cash equivalents stood at $821.7 million as of March 31, 2025, compared to $986.5 million at the end of 2024 [23]. Market Dynamics - The company faced net market losses that decreased AUM by $42.2 billion, while foreign exchange rate movements increased AUM by $7.4 billion [5][44]. - The effective tax rate for Q1 2025 was 22.5%, down from 24.8% in Q4 2024, primarily due to favorable tax resolutions [12][16]. Strategic Initiatives - Invesco's strategic clarity has driven organic growth of over 5% in the long term, with a focus on enhancing returns to shareholders [2][7]. - The partnership with MassMutual aims to scale both firms' private wealth offerings, supported by a $650 million initial investment from MassMutual [2][7].