Invesco Announces Third Quarter Diluted EPS of $0.66; Adjusted Diluted EPS(1) of $0.61 (Form 8-K)

Invesco Announces Third Quarter Diluted EPS of $0.66; Adjusted Diluted EPS(1) of $0.61

Atlanta, October 28, 2025 -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended September 30, 2025.

•$28.9 billion of net long-term inflows for the quarter, primarily driven by ETFs and Index, China JV & India, Fundamental Fixed Income, and Private Markets

•Ending AUM grew to $2.1 trillion; an increase of 6.2% from the prior quarter

•16.5% operating margin in Q3 2025; 34.2% adjusted operating margin(1) - an increase of 240 basis points and 300 basis points, respectively, from the prior quarter

•Continued balance sheet strength - repaid $260.0 million of bank term loans and ended the quarter with a zero balance on our revolving credit agreement

•Repurchased 1.2 million common shares for $25 million during the quarter

•Third quarter Diluted and Adjusted diluted EPS was negatively impacted by $0.08 due to the non-cash impairment charge of $35.9 million related to the previously announced divestiture of intelliflo which is expected to close in the fourth quarter

Update from Andrew Schlossberg, President and CEO

"We continue to perform well against our strategic priorities, leveraging Invesco's unique position to drive growth in the highest opportunity regions, channels and asset classes. We reached record assets under management of $2.1 trillion with strong net long-term inflows of nearly $29 billion, or 8% annualized organic growth. Even more encouraging was the breadth of inflows, reflecting our diversified and scaled global platform. We continued to generate significant positive operating leverage and operating margin improvement as long-term assets under management grew 16% over last year, driving revenue growth, while expenses were well managed. We reduced debt during the quarter while making ongoing common share repurchases as we remain focused on strengthening the balance sheet and returning capital to shareholders."

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(1) Represents non-GAAP financial measure. See the information on pages 8 through 11 for a reconciliation to the most directly comparable U.S. GAAP measure.

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Net Flows:

Net long-term inflows were $28.9 billion for the third quarter of 2025 as compared to $15.6 billion in the second quarter.

Retail and Institutional net long-term inflows were $19.7 billion and $9.2 billion, respectively. Net long-term flows by investment capability include net long-term inflows from ETFs and Index of $21.4 billion, China JV & India of $8.1 billion, Fundamental Fixed Income of $4.1 billion, and Private Markets of $0.6 billion, partially offset by net long-term outflows from Fundamental Equities of $5.0 billion and Multi-Asset/Other of $0.3 billion. On a geographic basis, the Asia Pacific, Americas and EMEA regions achieved net long-term inflows of $11.4 billion, $9.6 billion, and $7.9 billion, respectively.

Net market gains increased AUM in the third quarter by $99.0 billion while foreign exchange rate movements decreased AUM by $2.7 billion. We had inflows of $2.6 billion from non-management fee earning products and outflows of $5.4 billion from money market funds during the quarter. Ending AUM increased 6.2% and average AUM increased 8.6% during the third quarter.

Summary of net flows (in billions)						Q3-25						Q2-25						Q3-24
Active						$	6.9					$	3.8					$	(0.6)
Passive						22.0						11.8						17.1
Net long-term flows						28.9						15.6						16.5
Non-management fee earning AUM						2.6						2.8						3.5
Money market						(5.4)						(3.2)						(7.3)
Total net flows						$	26.1					$	15.2					$	12.7
Annualized long-term organic growth rate (1)						7.9%						4.7%						5.2%

(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.

Third Quarter Highlights:

Financial Results			Q3-25						Q2-25						Q3-25 vs. Q2-25						Q3-24						Q3-25 vs. Q3-24
U.S. GAAP Financial Measures
Operating revenues			$1,640.4		m				$1,515.5		m				8.2		%				$1,515.4		m				8.2		%
Operating income			$270.9		m				$214.2		m				26.5		%				$100.5		m				169.6		%
Operating margin			16.5		%				14.1		%										6.6		%
Net income/(loss) attributable to Invesco Ltd.			$301.3		m				($12.5		m)				N/A						$55.0		m				447.8		%
Diluted EPS			$0.66						($0.03)						N/A						$0.12						450.0		%
Adjusted Financial Measures (1)
Net revenues			$1,186.3		m				$1,104.6		m				7.4		%				$1,104.3		m				7.4		%
Adjusted operating income			$406.1		m				$344.4		m				17.9		%				$348.8		m				16.4		%
Adjusted operating margin			34.2		%				31.2		%										31.6		%
Adjusted net income attributable to Invesco Ltd.			$275.4		m				$165.2		m				66.7		%				$199.8		m				37.8		%
Adjusted diluted EPS			$0.61						$0.36						69.4		%				$0.44						38.6		%
Assets Under Management
Ending AUM			$2,124.8		bn				$2,001.4		bn				6.2		%				$1,795.6		bn				18.3		%
Average AUM			$2,060.4		bn				$1,897.4		bn				8.6		%				$1,742.0		bn				18.3		%
Headcount			8,368						8,407						(0.5)		%				8,524						(1.8)		%

(1) Represents non-GAAP financial measure. See the information on pages 8 through 11 for a reconciliation to the most directly comparable U.S. GAAP measure.

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U.S. GAAP Operating Results:

Third Quarter 2025 compared to Second Quarter 2025

Operating revenues and expenses: Operating revenues increased $124.9 million in the third quarter of 2025 compared to the second quarter. Investment management fees and Service and distribution fees increased $83.8 million and $36.9 million, respectively, primarily driven by higher average AUM. Performance fees were $6.5 million for the quarter and were earned primarily from private markets products. Foreign exchange rate changes increased operating revenues by $5.9 million.

Operating expenses increased $68.2 million in the third quarter of 2025 compared to the second quarter. Third-party distribution, service and advisory costs increased $57.6 million primarily due to higher average AUM. Employee compensation expense increased $11.2 million primarily due to higher variable compensation and staff costs of $28.1 million, partially offset by $16.9 million of severance expense recorded in the second quarter related to the reorganization of the fundamental equities investment teams. Marketing expenses decreased $3.0 million. Property, office and technology costs decreased $9.0 million primarily due to an $8.0 million software impairment recorded in the second quarter related to a strategic change to the company's fixed income investment platform. General and administrative expenses increased $12.1 million primarily due to expenses related to newly launched consolidated investment products (CIP). Foreign exchange rate changes increased operating expenses by $5.4 million.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was $34.8 million, earned primarily from our China joint venture. Interest and dividend income was $10.5 million earned primarily from cash and cash equivalents and seed capital investments. Interest expense was $25.7 million which includes interest from the bank term loans we entered into in the second quarter of 2025. Other gains/(losses) were a net loss of $0.8 million, primarily driven by a $35.9 million non-cash impairment charge related to the previously announced divestiture of intelliflo which is expected to close in the fourth quarter. This was partially offset by market value changes in deferred compensation and seed capital investments. Other income/(expense) of CIP was a gain of $57.0 million, primarily driven by net interest income earned by CIP as well as market gains on the underlying investments held by the funds.

The effective tax rate was (2.8)% in the third quarter of 2025 as compared to 28.1% in the second quarter. The decrease in the effective tax rate in the third quarter of 2025 was primarily due to the favorable resolution of a tax matter, including the impact of a decrease in the deferred income tax rate and the reversal of a reserve for uncertain tax positions.

Diluted earnings per common share: Diluted earnings per common share was $0.66 for the third quarter of 2025. The impairment charge related to the divestiture of intelliflo negatively impacted third quarter diluted EPS by $0.08.

Third Quarter 2025 compared to Third Quarter 2024

Operating revenues and expenses: Operating revenues increased $125.0 million in the third quarter of 2025 compared to the third quarter of 2024. Investment management fees increased $84.2 million driven by higher average AUM, partially offset by the impacts of secular shifts in client demand which have altered our asset mix. Service and distribution fees increased $40.4 million primarily due to higher average AUM. Foreign exchange rate changes increased operating revenues by $15.6 million.

Operating expenses decreased $45.4 million in the third quarter of 2025 compared to the third quarter of 2024. Third-party distribution, service and advisory costs increased $58.7 million primarily due to higher average AUM. Employee compensation expenses decreased $103.8 million primarily due to a one-time acceleration of $147.6 million in expense in the third quarter of 2024 resulting from changes to the retirement criteria for vesting of outstanding long-term awards, partially offset by higher variable compensation and staff costs. Property, office and technology costs decreased $9.8 million. General and administrative expenses increased $10.5 million primarily due to expenses related to newly launched CIP, partially offset by lower professional fees. Foreign exchange rate changes increased operating expenses by $13.3 million.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates increased $32.7 million in the third quarter of 2025 compared to the third quarter of 2024 primarily driven by higher earnings from our private markets investments and our China joint venture investment. Other gains/(losses) decreased $29.1 million primarily due to the above noted $35.9 million non-cash impairment charge related to the divestiture of intelliflo. Other income/(expense) of CIP increased $40.3 million primarily due to higher market gains on the underlying investments held by the funds and higher net interest income earned by CIP.

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The effective tax rate was (2.8)% in the third quarter of 2025 as compared to 28.6% in the third quarter of 2024. The decrease in the effective tax rate in the third quarter of 2025 was primarily due to the favorable resolution of a tax matter, including the impact of a decrease in the deferred income tax rate and the reversal of a reserve for uncertain tax positions.

Adjusted(1) Operating Results:

Third Quarter 2025 compared to Second Quarter 2025

Net revenues and adjusted operating expenses: Net revenues in the third quarter of 2025 increased $81.7 million compared to the second quarter primarily due to higher average AUM.

Adjusted operating expenses increased $20.0 million compared to the second quarter primarily due to higher Employee compensation expenses related to variable compensation costs primarily driven by higher revenues.

Adjusted operating income increased $61.7 million compared to the second quarter. Adjusted operating margin increased to 34.2% from 31.2%.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was a gain of $21.4 million. Other gains/(losses) were a net loss of $20.2 million, primarily driven by a $35.9 million non-cash impairment charge related to the previously announced divestiture of intelliflo which is expected to close in the fourth quarter. This was partially offset by market value changes in seed capital investments. Interest and dividend income was $12.4 million.

The effective tax rate on adjusted net income was 11.2% in the third quarter of 2025 as compared to 26.5% in the second quarter. The decrease in the effective tax rate was primarily due to the favorable resolution of a tax matter, including the reversal of a reserve for uncertain tax positions.

Adjusted diluted earnings per common share was $0.61 for the third quarter. The impairment charge related to the divestiture of intelliflo negatively impacted third quarter Adjusted diluted EPS by $0.08.

Third Quarter 2025 compared to Third Quarter 2024

Net revenues and adjusted operating expenses: Net revenues in the third quarter of 2025 increased $82.0 million compared to the third quarter of 2024 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 increased net revenues by $10.4 million.

Adjusted operating expenses in the third quarter of 2025 increased $24.7 million compared to the third quarter of 2024. Employee compensation expenses increased primarily due to higher variable compensation and staff costs partially offset by lower Property, office and technology costs. Foreign exchange rate changes increased adjusted operating expenses by $7.7 million.

Adjusted operating income increased $57.3 million compared to the third quarter of 2024. Adjusted operating margin increased to 34.2% from 31.6%.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates in the third quarter of 2025 increased $27.4 million compared to the third quarter of 2024 primarily driven by higher gains on our private markets investments. Other gains/(losses) decreased $27.9 million primarily due to the above noted $35.9 million non-cash impairment charge related to the divestiture of intelliflo.

The effective tax rate on adjusted net income was 11.2% in the third quarter of 2025 as compared to 21.8% in the third quarter of 2024. The decrease in the effective tax rate was primarily due to the favorable resolution of a tax matter, including the reversal of a reserve for uncertain tax positions partially offset by the unfavorable impact of the change in the mix of income across tax jurisdictions.

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(1) Represents non-GAAP financial measure. See the information on pages 8 through 11 for a reconciliation to the most directly comparable U.S. GAAP measure.

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Capital Management:

Cash and cash equivalents: $973.1 million at September 30, 2025 ($922.7 million as of June 30, 2025).

Debt: $1,624.6 million at September 30, 2025 ($1,883.9 million at June 30, 2025). The company repaid $260.0 million of the bank term loans entered into in the second quarter of 2025. The balance on the revolving credit agreement was zero as of September 30, 2025.

Common share repurchases: During the third quarter of 2025, the company repurchased 1.2 million common shares for $25 million in the open market.

Common shares outstanding (end of period): 445.1 million

Diluted common shares outstanding (end of period): 453.9 million

Dividends paid: $95.0 million (common); $44.4 million (preferred). Preferred share dividends decreased $12.2 million compared to the second quarter due to the $1.0 billion repurchase of the company's outstanding Series A Preferred Stock held by MassMutual in the second quarter.

Common dividends declared: The company is announcing a third quarter cash dividend of $0.21 per share to holders of common shares. The dividend is payable on December 2, 2025, to common shareholders of record at the close of business on November 14, 2025, with an ex-dividend date of November 14, 2025.

Preferred dividends declared: The company is announcing a preferred cash dividend of $14.75 per share representing the period from September 1, 2025 through November 30, 2025. The preferred dividend is payable on December 1, 2025.

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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 $2.1 trillion in assets on behalf of clients worldwide as of September 30, 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, October 28, 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, Nov 13, 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.