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 Viewpoint - Invesco reported a decline in assets under management (AUM) for April 2025, influenced by net outflows and weak market returns, despite some positive contributions from foreign exchange [1][2][6]. AUM Performance - Invesco's month-end AUM for April 2025 was $1.84 trillion, a decrease of 0.3% from the previous month [1]. - The preliminary average total AUM for the quarter through April 30 was $1.82 trillion, with average active AUM at $1.03 trillion [3]. Net Inflows and Outflows - The company experienced net long-term inflows of $1.3 billion in April, but faced non-management fee-earning net outflows of $2 billion and money market net outflows of $12.1 billion [2]. - Weak market returns led to a $1 billion decline in AUM, while foreign exchange positively impacted AUM by $9.2 billion [2]. Breakdown by Asset Class - AUM under ETFs & Index Strategies was $492.4 billion, showing a slight increase from the previous month [4]. - Fundamental Fixed Income AUM grew by 2.4% to $298.9 billion, while China JV & India AUM rose by 1% to $112.1 billion [4]. - Multi-Asset/Other AUM increased by 2.9% to $61.1 billion, and QQQs AUM rose by 0.6% to $299.1 billion [4]. - Conversely, Private Markets AUM declined by 3% to $127.4 billion, Fundamental Equities AUM decreased by 0.6% to $261.1 billion, and Global Liquidity AUM fell by 6.1% to $187.9 billion [5]. Market Context - The company faces macroeconomic headwinds leading to volatility in asset flows, which may impact its top line in the near term [6]. - In the past three months, Invesco's shares have decreased by 15.4%, compared to a 7.4% decline in the industry [6]. Peer Comparison - Franklin Resources reported a preliminary AUM of $1.53 trillion, showing a slight decrease, attributed to long-term net outflows of $10 billion [9][10]. - T. Rowe Price announced a preliminary AUM of $1.56 trillion, reflecting a marginal decrease with net outflows of $3.5 billion [10].

Invesco Announces First Quarter Diluted EPS of $0.38; Adjusted Diluted EPS(1) of $0.44 ATLANTA, April 22, 2025 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended March 31, 2025. Update from Andrew Schlossberg, President and CEO "Our strategic clarity has helped us drive organic growth through various operating environments and continued to prove effective in the first quarter in which we delivered over 5% long-term organic growth. We drove an 18% increase in ...