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's preliminary assets under management (AUM) for May 2025 reached $1.94 trillion, reflecting a 5.6% increase from the previous month, driven by strong market performance and net inflows [1][7] Summary by Category AUM Performance - The month-end AUM of Invesco was $1.94 trillion, up 5.6% from April 2025 [1][7] - The preliminary average total AUM for the quarter ending May 31 was $1.86 trillion, with an average active AUM of $1.04 trillion [2] Inflows - Invesco reported net long-term inflows of $6.1 billion for May, alongside non-management fee-earning net inflows of $6.3 billion and money market net inflows of $19.4 billion [2][7] - Strong market returns contributed to a $70 billion increase in AUM, while foreign exchange effects added $0.9 billion [2] Asset Class Breakdown - AUM under ETFs & Index Strategies rose to $522.8 billion, a 6.2% increase from the previous month [3] - Fundamental Equities AUM increased to $275.1 billion, up 5.4% from April 2025 [3] - Global Liquidity AUM saw a significant increase of 10.2%, reaching $207.1 billion [3] - AUM for QQQs rose 11.5% to $333.6 billion, while Private Markets AUM increased by 1.3% to $129.1 billion [4] Challenges and Outlook - Despite macroeconomic challenges, Invesco's strong performance in May, characterized by robust market returns and increased net inflows, supports its financial stability [5] - The company's diverse product offerings and global presence are expected to bolster its financials in the near term [5]

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].