Core Insights - Invesco's fourth-quarter 2025 adjusted earnings of 62 cents per share exceeded the Zacks Consensus Estimate of 57 cents, marking a 19.2% increase from the prior-year quarter [1][9] - The company's shares rose 4% in pre-market trading following the better-than-expected results [1] Financial Performance - Adjusted net revenues for the quarter were $1.26 billion, an 8.8% year-over-year increase, slightly surpassing the Zacks Consensus Estimate of $1.25 billion [5][9] - Full-year adjusted earnings reached $2.03 per share, exceeding the Zacks Consensus Estimate of $1.99, and reflecting an 18.7% increase from the previous year [4] - Quarterly adjusted operating expenses were $801.1 million, up 4.4% year over year, with an adjusted operating margin of 36.4%, up from 33.7% a year ago [6] Assets Under Management (AUM) - As of December 31, 2025, AUM reached a record $2.17 trillion, representing a 17.5% year-over-year increase, with average AUM at $2.16 trillion, up 18.5% [7][9] - The company experienced long-term net inflows of $19.1 billion during the reported quarter [7][9] Balance Sheet and Share Repurchases - As of December 31, 2025, cash and cash equivalents were $1.04 billion, an increase from $973.1 million as of September 30, 2025, with long-term debt at $1.83 billion [8] - In the reported quarter, Invesco repurchased 1 million shares for $25 million [10] Strategic Outlook - Invesco's strong AUM balance, diverse product offerings, and solid balance sheet are expected to support its financial performance [11] - The company is positioned to pursue sustainable capital distributions due to its decent balance sheet and liquidity [11]

Core Insights - Invesco has made significant strategic moves in 2025, including asset sales, joint ventures, and a focus on private markets, which have contributed to a record $2.2 trillion in assets under management (AUM) by year-end [5][6][12]. Strategic Partnerships and Transactions - Invesco announced a deal with CI Global Asset Management for CI GAM to acquire its Canadian mutual fund and ETF complex, which includes 100 funds with approximately $19 billion in AUM [1]. - The company completed the sale of Intelliflo to Carlyle and sold a majority interest in its Indian asset management business to the Hinduja Group, forming a local joint venture while retaining minority ownership [2]. Financial Performance - Invesco repurchased $1.5 billion of preferred stock in 2025, reducing outstanding preferred stock from $4.0 billion to $2.5 billion, which is expected to deliver a $0.20 run-rate EPS benefit [3][8]. - The company reported a net revenue of $1.3 billion for the fourth quarter, an increase of $102 million year-over-year, driven by higher average AUM and the QQQ reclassification [13]. Growth Strategy - Management emphasized the expansion into private markets through partnerships with Barings and LGT, aiming to simplify operations and pursue new distribution channels [6][9]. - The late-December conversion of the QQQ ETF lowered fees for shareholders and increased reported long-term AUM, contributing to a record total AUM of $2.2 trillion [10][7]. AUM and Inflows - Invesco achieved $19 billion in net long-term inflows during the fourth quarter, equating to a 5% annualized long-term organic growth rate [11]. - The firm reported record AUM of $2.2 trillion, up $324 billion from the fourth quarter of 2024, attributed to net long-term inflows and market gains [12]. Balance Sheet and Capital Management - The leverage ratio improved from 2.8x a year ago to 2.2x for the fourth quarter, with preferred stock leverage at 0.73x [19]. - Invesco plans to target a total payout ratio of approximately 60% for 2026, with common share repurchases expected to increase to $40 million in the first quarter [17]. Future Outlook - Looking ahead to 2026, Invesco anticipates continued costs associated with the hybrid platform and QQQ-related marketing, with annualized operating expenses projected at $3.2 billion [16]. - The company remains focused on using operating cash flow to reduce debt and has opportunities to repurchase additional preferred stock [18].

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Core Insights - The Invesco RAFI Developed Markets ex-U.S. ETF (PXF) has achieved a 22.4% return over the past year, with a maximum drawdown of only 8.3%, indicating strong demand for international value exposure as investors shift away from U.S. growth stocks [1][2] Performance Comparison - PXF outperformed the iShares MSCI EAFE ETF (EFA) which returned 18.7% and the SPDR S&P 500 ETF Trust (SPY) which returned 19.2% during the same period, highlighting a significant shift in market leadership away from U.S. mega-cap technology [2] Dollar Dynamics - A key factor in the strong performance of international equities is the weakness of the U.S. dollar, which enhances the value of foreign earnings when converted back to dollars for U.S. investors [3] - The dollar's decline is influenced by expectations of Federal Reserve rate cuts and a narrowing interest rate differential with other developed economies [3][4] Methodology and Value Rotation - PXF employs a fundamental weighting methodology that favors companies based on their business strength rather than market capitalization, effectively capturing the value rotation towards sectors like financials and energy [6][7] - The fund's top holdings consist of cash-generative businesses that align with the RAFI metrics of sales, cash flow, and dividends, positioning it well for the current market trend [7] Future Outlook - The combination of dollar weakness and value outperformance is expected to create a favorable environment for fundamentally-weighted international exposure, making it a critical dynamic to monitor in the coming year [8]

Invesco (NYSE:IVZ) Q4 2025 Earnings call January 27, 2026 09:00 AM ET Company ParticipantsAllison Dukes - CFOAndrew Schlossberg - CEOGreg Ketron - Head of Investor RelationsConference Call ParticipantsAlexander Blostein - AnalystBenjamin Budish - AnalystBrendan Hawkins - AnalystBrian Bedell - AnalystDaniel Fannon - AnalystGlenn Schorr - AnalystWilliam Katz - AnalystOperatorWelcome to Invesco's fourth quarter earnings conference call. All participants will be in listen-only mode until the question and answer ...

Invesco (NYSE:IVZ) Q4 2025 Earnings call January 27, 2026 09:00 AM ET Company ParticipantsAllison Dukes - CFOAndrew Schlossberg - CEOGreg Ketron - Head of Investor RelationsConference Call ParticipantsAlexander Blostein - AnalystBenjamin Budish - AnalystBrendan Hawkins - AnalystBrian Bedell - AnalystDaniel Fannon - AnalystGlenn Schorr - AnalystWilliam Katz - AnalystOperatorWelcome to Invesco's fourth quarter earnings conference call. All participants will be in listen-only mode until the question and answer ...

Financial Data and Key Metrics Changes - Invesco's net revenue grew by 6% in 2025, with record revenues from ETF and index investment capabilities increasing by 22% [10][11] - Operating margin improved by 230 basis points, with a 14% growth in operating income and a 19% increase in earnings per share compared to the previous year [11][12] - Total assets under management (AUM) reached $2.2 trillion, an increase of $45 billion or 2% from the previous quarter and $324 billion or 18% year-over-year [25][26] Business Line Data and Key Metrics Changes - ETF and index capabilities generated $630 billion in AUM, with net inflows of nearly $12 billion during the fourth quarter, reflecting an 8% annualized organic growth [14][15] - Fundamental equity revenue was flat compared to the prior year but increased by 4% from 2023, with $5.5 billion in net outflows overall in this segment [10][22] - Private markets platform saw $300 million in net inflows, driven by direct real estate strategies, with INCREF now totaling $4.7 billion in assets [19][21] Market Data and Key Metrics Changes - Revenue from Asian and EMEA regions combined increased by 13% for the year, contributing to overall growth [10] - The China joint venture reached a record-high AUM of $132 billion, with net long-term inflows of $8.9 billion, marking a 36% annualized organic growth rate [17][18] - The Canadian market is becoming increasingly concentrated, prompting a strategic partnership with CI Global Asset Management [5][6] Company Strategy and Development Direction - Invesco is focusing on a hybrid alpha investment platform to streamline operations and improve profitability, with completion expected by the end of 2026 [4][33] - The company aims to accelerate growth in its $130 billion private markets platform through strategic partnerships and innovative product offerings [6][9] - Invesco's strategy includes a commitment to enhancing shareholder returns, with a target payout ratio of around 60% for 2026 [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong net inflows and a diversified product offering as key strengths [12][42] - The company is focused on maintaining a disciplined expense management approach while investing in growth opportunities [11][30] - Management highlighted the importance of achieving first quartile investment performance as a priority for maintaining market share [24] Other Important Information - Invesco repurchased $1.5 billion in preferred stock in 2025, reducing outstanding preferred stock from $4 billion to $2.5 billion [27][40] - The company expects to see a $0.20 EPS benefit from the preferred stock repurchase once associated debt is repaid [27][39] - The effective tax rate for the quarter was 21%, with expectations to return to the 25%-26% range in the first quarter of 2026 [39] Q&A Session Summary Question: Capital return priorities and potential M&A considerations - Management discussed the focus on increasing share buybacks to $40 million and the potential for further preferred stock repurchases while prioritizing debt repayment [45][46] - M&A opportunities will be considered if they align with the company's growth strategy, but the focus remains on organic growth [48][49] Question: Implementation costs and future expense outlook - Management confirmed that implementation costs for the hybrid platform are expected to decrease over time, with further guidance to be provided as 2026 progresses [51][52] Question: Net revenue yield and its future impact - Management indicated that the addition of the QQQ ETF is expected to stabilize net revenue yield, with ongoing dynamics influencing future projections [55][56] Question: Private market strategy and branding considerations - The company aims to build a comprehensive product offering through partnerships while maintaining clear branding to avoid channel conflicts [66][68]

分组1 - Invesco reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and up from $0.52 per share a year ago, representing an earnings surprise of +8.03% [1] - The company posted revenues of $1.26 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.39%, compared to year-ago revenues of $1.16 billion [2] - Invesco shares have increased approximately 9% since the beginning of the year, outperforming the S&P 500's gain of 1.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $1.27 billion, and for the current fiscal year, it is $2.62 on revenues of $5.24 billion [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Fourth Quarter 2025 Results Andrew Schlossberg President and Chief Executive Officer Allison Dukes Chief Financial Officer January 27, 2026 Forward-Looking Statements and Important Information This presentation 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 AUM and could differ materially from event ...

Financial Performance - Invesco reported a fourth quarter diluted EPS of $(2.61) and an adjusted diluted EPS of $0.62, impacted by a non-cash intangible impairment of $1.8 billion[2][17]. - The adjusted operating margin for Q4 2025 was 36.4%, showing improvement despite the intangible impairment, while the operating margin was reported at (86.2)%[5][11]. - The company reported operating revenues of $1.692 billion for Q4 2025, a 3.1% increase from Q3 2025 and a 6.2% increase from Q4 2024[11][18]. - Adjusted net income attributable to Invesco Ltd. for 2025 was $922 million, up 17.9% from 2024, with adjusted diluted EPS increasing to $2.03[12][12]. - The company reported an operating loss of $695.7 million for 2025, compared to an operating income of $832.1 million in 2024[44]. - Net income attributable to Invesco Ltd. was a loss of $726.3 million, contrasting with a profit of $538.0 million in the previous year[44]. - Basic and diluted earnings per share (EPS) for 2025 were both $(1.60), compared to $1.18 in 2024[44]. - Adjusted operating income for the year was $1,557.8 million, up from $1,370.7 million in 2024, indicating improved operational performance[50]. - Adjusted diluted EPS for the year was $2.03, compared to $1.71 in 2024, reflecting a positive trend in adjusted earnings[51]. Assets and Liabilities - The company ended the quarter with record assets under management (AUM) of $2.2 trillion, reflecting a 2.1% increase from the prior quarter and a 17.5% increase year-over-year[4][12]. - Total assets increased to $2,169.9 billion, a 2.1% increase from the previous quarter and a 17.5% increase year-over-year[56]. - Total liabilities increased to $14,089.1 million as of December 31, 2025, from $11,340.1 million in 2024, representing a rise of 24.4%[65]. - Total equity attributable to Invesco Ltd. decreased to $12,231.0 million in 2025 from $14,559.9 million in 2024, a decline of 16.0%[65]. Cash Flow and Investments - Cash and cash equivalents reached $1,037.5 million at December 31, 2025, up from $973.1 million at September 30, 2025[31]. - Cash flows from operating activities for the year ended December 31, 2025, totaled $1,525.3 million, compared to $1,190.0 million in 2024, a growth of 28.2%[62]. - Cash flows from investing activities for the year ended December 31, 2025, were $(974.4) million, compared to $(240.0) million in 2024, indicating a significant increase in investment outflows[62]. - Cash flows from financing activities for the year ended December 31, 2025, were $(149.5) million, a decrease from $(1,661.6) million in 2024, showing a reduction in financing outflows[62]. - The company’s investments increased to $1,381.1 million as of December 31, 2025, from $1,240.0 million in 2024, reflecting an increase of 11.4%[65]. Revenue and Inflows - Invesco achieved net long-term inflows of $19.1 billion in Q4 2025, down from $28.9 billion in Q3 2025, with full-year inflows totaling $81.2 billion[5][6]. - Retail and institutional net long-term inflows were $10.2 billion and $8.9 billion, respectively, with significant contributions from ETFs and Index products[7][8]. - Long-term inflows for the twelve months ended December 31, 2025, reached $515.0 billion, a 22.9% increase compared to $419.0 billion in the previous year[56]. - Total net flows for the last quarter were $30.5 billion, a 16.9% increase from $26.1 billion in the previous quarter[56]. - Net long-term flows decreased by 33.9% to $19.1 billion in the last quarter, down from $28.9 billion in the previous quarter[56]. Operating Expenses - Total operating expenses rose significantly by 35.1% to $7,072.8 million, primarily due to a substantial increase in amortization and impairment of intangible assets[44]. - Operating expenses for Q4-25 were $3,150.1 million, an increase from $1,281.3 million in Q4-24, resulting in a year-over-year increase of 146.3%[53]. - Adjusted operating expenses for Q4-25 were $801.1 million, compared to $767.1 million in Q4-24, reflecting a 4.4% increase[53]. Market Position and Strategy - Invesco QQQ Trust converted to an open-end fund ETF on December 20, 2025, which is expected to enhance its market position[5]. - The company emphasized the importance of non-GAAP measures for assessing ongoing operational performance and making budgetary decisions[46]. - The company aims to improve net revenue yield on AUM, which is calculated as net revenues divided by average AUM during the reporting period[54].