Invesco Announces First Quarter Diluted EPS of $0.38; Adjusted Diluted EPS(1) of $0.44 (Form 8-K)

Invesco Announces First Quarter Diluted EPS of $0.38; Adjusted Diluted EPS(1) of $0.44

Atlanta, April 22, 2025 -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended March 31, 2025.

•$17.6 billion of net long-term inflows for the quarter, primarily driven by ETFs and Index, Fundamental Fixed Income, and China JV & India

•$1.8 trillion in ending AUM

•18.1% operating margin in Q1 2025; 31.5% adjusted operating margin(1)

•Announced an increase in the quarterly common stock dividend to $0.21 per share reflective of strong cash position and stable cash flows

•Repurchased 1.5 million common shares for $25 million during the quarter

•Announced today a $1 billion repurchase of Invesco's Series A Preferred Stock held by MassMutual. The repurchase is expected to occur in May

•In addition, Invesco and Barings (MassMutual's global asset management subsidiary) announced today a new strategic product and distribution partnership for U.S. Wealth channels, bringing together their unique private markets capabilities; MassMutual intends to support this initiative with a $650 million initial investment

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 operating income and positive operating leverage of over 500 basis points compared to the first quarter of last year, while improving our operating margin by over 330 basis points to nearly 32%. Balance sheet strength and enhanced return of capital to shareholders remains a priority, and we executed share buybacks during the quarter and announced an increase in the quarterly common stock dividend, reflective of our strong cash position and stable cash flows. Further, today we announced the $1 billion repurchase of our preferred stock held by MassMutual and an expanded strategic partnership wherein MassMutual will also provide seed capital investment to scale both firms' private wealth offerings. The hallmarks of the Invesco platform, including the breadth and scale of our products delivered through a diverse and global footprint, place us in a position of strength as we help our clients navigate this volatile and complex operating environment."

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(1) Represents non-GAAP financial measure. See the information on pages 7 through 10 for a reconciliation to the most directly comparable U.S. GAAP measure.

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Net Flows:

Net long-term inflows were $17.6 billion for the first quarter of 2025 as compared to $25.6 billion in the fourth quarter of 2024.

Retail and Institutional net long-term inflows were $11.9 billion and $5.7 billion, respectively. Net long-term flows by investment capability include net long-term inflows from ETFs and Index of $16.3 billion, Fundamental Fixed Income of $8.0 billion, and China JV & India of $2.2 billion, partially offset by net long-term outflows from Fundamental Equities of $7.0 billion, Multi-Asset/Other of $1.1 billion and Private Markets of $0.8 billion. On a geographic basis, the EMEA and Americas regions achieved net long-term inflows of $15.0 billion and $3.0 billion, respectively, and the Asia Pacific region experienced net long-term outflows of $0.4 billion.

Net market losses decreased AUM in the first quarter by $42.2 billion and foreign exchange rate movements increased AUM by $7.4 billion. We had inflows of $5.0 billion from non-management fee earning products during quarter and $10.0 billion from money market funds. Ending AUM was flat and average AUM increased 3.1% during the first quarter.

Summary of net flows (in billions)						Q1-25						Q4-24						Q1-24
Active						$	1.5					$	(10.0)					$	(7.1)
Passive						16.1						35.6						13.4
Net long-term flows						17.6						25.6						6.3
Non-management fee earning AUM						5.0						10.2						9.5
Money market						10.0						25.1						0.7
Total net flows						$	32.6					$	60.9					$	16.5
Annualized long-term organic growth rate (1)						5.3%						7.8%						2.2%

(1) Annualized long-term organic growth rate is calculated using net long-term flows (annualized) divided by average long-term AUM for the period. Long-term AUM excludes money market and non-management fee earning AUM.

First Quarter Highlights:

Financial Results			Q1-25						Q4-24						Q1-25 vs. Q4-24						Q1-24						Q1-25 vs. Q1-24
U.S. GAAP Financial Measures
Operating revenues			$1,529.2		m				$1,593.0		m				(4.0)		%				$1,475.3		m				3.7		%
Operating income			$277.3		m				$311.7		m				(11.0)		%				$213.1		m				30.1		%
Operating margin			18.1		%				19.6		%										14.4		%
Net income attributable to Invesco Ltd.			$171.1		m				$209.3		m				(18.3)		%				$141.5		m				20.9		%
Diluted EPS			$0.38						$0.46						(17.4)		%				$0.31						22.6		%
Adjusted Financial Measures (1)
Net revenues			$1,108.7		m				$1,157.2		m				(4.2)		%				$1,053.2		m				5.3		%
Adjusted operating income			$349.5		m				$390.1		m				(10.4)		%				$296.5		m				17.9		%
Adjusted operating margin			31.5		%				33.7		%										28.2		%
Adjusted net income attributable to Invesco Ltd.			$200.5		m				$237.3		m				(15.5)		%				$148.4		m				35.1		%
Adjusted diluted EPS			$0.44						$0.52						(15.4)		%				$0.33						33.3		%
Assets Under Management
Ending AUM			$1,844.8		bn				$1,846.0		bn				(0.1)		%				$1,662.7		bn				11.0		%
Average AUM			$1,880.8		bn				$1,824.4		bn				3.1		%				$1,613.0		bn				16.6		%
Headcount			8,495						8,508						(0.2)		%				8,527						(0.4)		%

(1) Represents non-GAAP financial measure. See the information on pages 7 through 10 for a reconciliation to the most directly comparable U.S. GAAP measure.

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U.S. GAAP Operating Results:

First Quarter 2025 compared to Fourth Quarter 2024

Operating revenues and expenses: Operating revenues decreased $63.8 million in the first quarter of 2025 compared to the fourth quarter of 2024. Investment management fees decreased $27.0 million primarily as a result of two fewer days in the quarter. Service and distribution fees decreased $9.9 million primarily due to two fewer days in the quarter and lower average AUM to which the fees apply. Performance fees decreased $30.6 million due to seasonality. Other revenues increased $3.7 million. Foreign exchange rate changes decreased operating revenues by $6.4 million.

Operating expenses decreased $29.4 million in the first quarter of 2025 compared to the fourth quarter of 2024. Third-party distribution, service and advisory costs decreased $17.6 million primarily due to a decrease in pass-through service and distribution costs. Employee compensation expense was flat compared to the fourth quarter of 2024 primarily due to seasonally higher payroll taxes offset by lower variable compensation costs. Marketing expenses decreased $6.7 million. Property, office and technology costs decreased $7.4 million. General and administrative expenses increased $2.3 million. Foreign exchange rate changes decreased operating expenses by $6.1 million.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was $19.6 million, earned primarily from our China joint venture. Interest and dividend income was $11.3 million earned primarily from cash and cash equivalents and seed capital investments. Other gains/(losses) were a net loss of $24.3 million, primarily driven by market value changes on deferred compensation and seed capital investments. Other income/(expense) of consolidated investment products (CIP) was a gain of $74.1 million, primarily driven by net interest income and market gains on the underlying investments held by the funds.

The effective tax rate was 22.5% in the first quarter of 2025 as compared to 24.8% in the fourth quarter of 2024. The decrease in the effective tax rate in the first quarter of 2025 was primarily due to the favorable impact of the increase in net income attributable to non-controlling interests in consolidated entities and the favorable resolution of a state income tax matter which was partially offset by the unfavorable impact of the change in the mix of income across tax jurisdictions.

Diluted earnings per common share: Diluted earnings per common share was $0.38 for the first quarter of 2025.

First Quarter 2025 compared to First Quarter 2024

Operating revenues and expenses: Operating revenues increased $53.9 million in the first quarter of 2025 compared to the first quarter of 2024. Investment management fees increased $51.6 million as a result of higher average AUM partially offset by the impacts of secular shifts in client demand which have altered our asset mix. Service and distribution fees decreased $6.1 million due to lower fund-related service fees partially offset by higher average AUM. Other revenues increased $5.7 million as a result of higher transaction fees. Foreign exchange rate changes decreased operating revenues by $9.7 million.

Operating expenses decreased $10.3 million in the first quarter of 2025 compared to the first quarter of 2024. Third-party distribution, service and advisory costs increased $5.0 million due to higher average AUM partially offset by a decrease in pass-through fund costs. Employee compensation expenses decreased $8.1 million primarily due to a decrease in expense related to common share-based awards and other long-term awards. Property, office and technology costs decreased $3.7 million. Foreign exchange rate changes decreased operating expenses by $8.9 million.

The effective tax rate was 22.5% in the first quarter of 2025 as compared to 24.3% in the first quarter of 2024. The decrease in the effective tax rate in the first quarter of 2025 was primarily due to the favorable impact of the increase in net income attributable to non-controlling interests in consolidated entities and the favorable resolution of certain tax matters which was partially offset by the unfavorable impact of the change in the mix of income across tax jurisdictions.

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Adjusted(1) Operating Results:

First Quarter 2025 compared to Fourth Quarter 2024

Net revenues and adjusted operating expenses: Net revenues in the first quarter of 2025 decreased $48.5 million compared to the fourth quarter of 2024 primarily due to lower seasonal performance fees and two fewer days in the quarter. Foreign exchange rate changes decreased net revenues by $5.4 million.

After allowing for foreign exchange rate changes, Adjusted operating expenses decreased $2.2 million compared to the fourth quarter of 2024.

Adjusted operating income decreased $40.6 million compared to the fourth quarter of 2024. Adjusted operating margin decreased to 31.5% from 33.7%.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was a gain of $16.5 million. Interest and dividend income was $13.5 million.

The effective tax rate on adjusted net income was 24.4% in the first quarter of 2025 as compared to 22.2% in the fourth quarter of 2024. The increase in the effective tax rate was primarily due to the unfavorable impact of the change in the mix of income across tax jurisdictions which was partially offset by the favorable resolution of a state income tax matter.

Adjusted diluted earnings per common share was $0.44 for the first quarter.

First Quarter 2025 compared to First Quarter 2024

Net revenues and adjusted operating expenses: Net revenues in the first quarter of 2025 increased $55.5 million compared to the first quarter of 2024, primarily driven by higher average AUM partially offset by the impacts of secular shifts in client demand which have altered our asset mix. Foreign exchange rate changes decreased net revenues by $6.9 million.

After allowing for foreign exchange rate changes, Adjusted operating expenses in the first quarter of 2025 increased $8.5 million compared to the first quarter of 2024. Employee compensation expenses increased primarily due to higher variable compensation costs partially offset by lower General and administrative and Property, office and technology costs.

Adjusted operating income increased $53.0 million compared to the first quarter of 2024. Adjusted operating margin increased to 31.5% from 28.2%.

The effective tax rate on adjusted net income decreased slightly to 24.4% in the first quarter of 2025 from 24.6% in the first quarter of 2024.

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(1) Represents non-GAAP financial measure. See the information on pages 7 through 10 for a reconciliation to the most directly comparable U.S. GAAP measure.

Capital Management:

Cash and cash equivalents: $821.7 million at March 31, 2025 ($986.5 million as of December 31, 2024).

Debt: $964.8 million at March 31, 2025 ($890.6 million at December 31, 2024).

Common share repurchases: During the first quarter of 2025, the company repurchased 1.5 million common shares for $25 million in the open market.

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Common shares outstanding (end of period): 447.6 million

Diluted common shares outstanding (end of period): 456.4 million

Dividends paid: $92.5 million (common); $59.2 million (preferred)

Common dividends declared: The company is announcing a first quarter cash dividend of $0.21 per share to holders of common shares. The dividend is payable on June 3, 2025, to common shareholders of record at the close of business on May 14, 2025, with an ex-dividend date of May 14, 2025.

Preferred dividends declared: The company is announcing a preferred cash dividend of $14.75 per share representing the period from March 1, 2025 through May 31, 2025. The preferred dividend is payable on June 2, 2025. The preferred dividend will be prorated for the period the $1 billion of repurchased preferred stock is outstanding.

About Invesco Ltd.

Invesco is a global independent investment management firm dedicated to delivering an investment

experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.8 trillion in assets on behalf of clients worldwide as of March 31, 2025. For more information, visit invesco.com/corporate.

Members of the investment community and general public are invited to listen to the conference call today, April 22, 2025, at 9:00 a.m. ET by dialing one of the following numbers: 1-866-803-2143 for U.S. and Canadian callers or 1-210-795-1098 for international callers, using the Passcode: Invesco. An audio replay of the conference call will be available until Thursday, May 8, 2025 by calling 1-866-360-7726 for U.S. and Canadian callers or 1-203-369-0178 for international callers. A presentation highlighting the company's performance will be available during a live Webcast and on Invesco's Website at invesco.com/corporate.

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This release, and comments made in the associated conference call today, may include "forward-looking statements." Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow, capital expenditures, and assets under management and could differ materially from events that actually occur in the future due to known and unknown risks and other important factors, including, but not limited to, industry or market conditions, geopolitical events including wars, global trade tensions, tariffs, natural disasters and pandemics or health crises and their respective potential impact on the company, acquisitions and divestitures, debt and our ability to obtain additional financing or make payments, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would" as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. None of this information should be considered in isolation from, or as a substitute for, historical financial statements.