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Franklin Resources(BEN) - 2025 Q2 - Quarterly Results
BENFranklin Resources(BEN)2025-05-02 12:42

Financial Performance - Net income for Q2 2025 was 151.4million,or151.4 million, or 0.26 per diluted share, down 7% from the previous quarter and up 22% year-over-year[3]. - Adjusted net income decreased by 21% to 254.4million,withadjusteddilutedearningspershareat254.4 million, with adjusted diluted earnings per share at 0.47, a 20% decline from the previous quarter[3]. - Operating revenues for the quarter were 2,111.4million,a62,111.4 million, a 6% decrease from the previous quarter[8]. - Total operating revenues for the three months ended March 31, 2025, were 2,111.4 million, a decrease of 2% compared to 2,152.8millioninthesameperiodof2024[14].−Investmentmanagementfeesdecreasedby22,152.8 million in the same period of 2024[14]. - Investment management fees decreased by 2% to 1,673.6 million for the three months ended March 31, 2025, compared to 1,713.9millioninthesameperiodof2024[14].−NetincomeattributabletoFranklinResources,Inc.was1,713.9 million in the same period of 2024[14]. - Net income attributable to Franklin Resources, Inc. was 151.4 million for the three months ended March 31, 2025, representing a 22% increase from 124.2millioninthesameperiodof2024[14].−Earningspershare(EPS)forthethreemonthsendedMarch31,2025,were124.2 million in the same period of 2024[14]. - Earnings per share (EPS) for the three months ended March 31, 2025, were 0.26, up 13% from 0.23inthesameperiodof2024[14].−Operatingincomeincreasedby130.23 in the same period of 2024[14]. - Operating income increased by 13% to 145.6 million for the three months ended March 31, 2025, compared to 129.3millioninthesameperiodof2024[14].−Totaloperatingexpensesdecreasedby3129.3 million in the same period of 2024[14]. - Total operating expenses decreased by 3% to 1,965.8 million for the three months ended March 31, 2025, compared to 2,023.5millioninthesameperiodof2024[14].−Compensationandbenefitsexpensesdecreasedby112,023.5 million in the same period of 2024[14]. - Compensation and benefits expenses decreased by 11% to 920.0 million for the three months ended March 31, 2025, compared to 1,028.2millioninthesameperiodof2024[14].−Theoperatingmarginimprovedto6.91,028.2 million in the same period of 2024[14]. - The operating margin improved to 6.9% for the three months ended March 31, 2025, compared to 6.0% in the same period of 2024[14]. - Dividends declared per share increased by 3% to 0.32 for the three months ended March 31, 2025, compared to 0.31inthesameperiodof2024[14].−AdjustedoperatingincomeforthethreemonthsendedMarch31,2025,was0.31 in the same period of 2024[14]. - Adjusted operating income for the three months ended March 31, 2025, was 377.2 million, compared to 412.8millionforthepreviousquarterand412.8 million for the previous quarter and 419.6 million for the same period last year[26]. - Total operating revenues for the three months ended March 31, 2025, were 2,111.4million,downfrom2,111.4 million, down from 2,251.6 million in the previous quarter and 2,152.8millioninthesameperiodlastyear[26].−AdjustednetincomeforthethreemonthsendedMarch31,2025,was2,152.8 million in the same period last year[26]. - Adjusted net income for the three months ended March 31, 2025, was 254.4 million, compared to 320.5millioninthepreviousquarterand320.5 million in the previous quarter and 306.6 million in the same period last year[27]. - Diluted earnings per share for the three months ended March 31, 2025, were 0.26,downfrom0.26, down from 0.29 in the previous quarter and 0.23inthesameperiodlastyear[27].−AdjusteddilutedearningspershareforthethreemonthsendedMarch31,2025,were0.23 in the same period last year[27]. - Adjusted diluted earnings per share for the three months ended March 31, 2025, were 0.47, compared to 0.59inthepreviousquarterand0.59 in the previous quarter and 0.56 in the same period last year[27]. - The company reported an operating margin of 6.9% for the three months ended March 31, 2025, compared to 9.7% in the previous quarter and 6.0% in the same period last year[26]. - The adjusted operating margin for the three months ended March 31, 2025, was 23.4%, down from 24.5% in the previous quarter and 25.2% in the same period last year[26]. Assets Under Management (AUM) - Total Assets Under Management (AUM) was 1,540.6billion,adecreaseof1,540.6 billion, a decrease of 35.1 billion during the quarter, primarily due to 26.2billioninlong−termnetoutflows[8].−Thecompany′sbeginningAUMforthethreemonthsendedMarch31,2025,was26.2 billion in long-term net outflows[8]. - The company's beginning AUM for the three months ended March 31, 2025, was 1,575.7 billion, compared to 1,455.5billionforthesameperiodin2024,reflectingayear−over−yearincreaseof8.21,455.5 billion for the same period in 2024, reflecting a year-over-year increase of 8.2%[16]. - Long-term inflows for the three months ended March 31, 2025, were 86.8 billion, up from 84.9billioninthesameperiodof2024,indicatingagrowthof2.284.9 billion in the same period of 2024, indicating a growth of 2.2%[16]. - Long-term outflows increased significantly to 113.0 billion for the three months ended March 31, 2025, compared to 78.0billioninthesameperiodof2024,representingariseof44.978.0 billion in the same period of 2024, representing a rise of 44.9%[16]. - The total net flows for the three months ended March 31, 2025, were negative at (23.5) billion, contrasting with positive net flows of 2.1billioninthesameperiodof2024[16].−TheendingAUMasofMarch31,2025,was2.1 billion in the same period of 2024[16]. - The ending AUM as of March 31, 2025, was 1,540.6 billion, down 2.2% from 1,575.7billionattheendofDecember2024[17].−TheaverageAUMforthethreemonthsendedMarch31,2025,was1,575.7 billion at the end of December 2024[17]. - The average AUM for the three months ended March 31, 2025, was 1,570.5 billion, a decrease of 4% from 1,634.5billioninthepreviousquarter[17].−TheAUMbyassetclassshowedadeclineinequityAUMto1,634.5 billion in the previous quarter[17]. - The AUM by asset class showed a decline in equity AUM to 598.1 billion, down 4% from 620.0billionattheendofDecember2024[17].−TheAUMinfixedincomealsodecreasedby5620.0 billion at the end of December 2024[17]. - The AUM in fixed income also decreased by 5% to 446.0 billion from 469.5billionattheendofDecember2024[17].−CashmanagementAUMincreasedby9469.5 billion at the end of December 2024[17]. - Cash management AUM increased by 9% to 68.9 billion, up from 63.4billionattheendofDecember2024[17].−ThetotalAUMintheUnitedStateswas63.4 billion at the end of December 2024[17]. - The total AUM in the United States was 1,071.3 billion, a decrease of 3% from 1,102.5billionattheendofDecember2024[18].−AsofMarch31,2025,thecompanyhad1,102.5 billion at the end of December 2024[18]. - As of March 31, 2025, the company had 1.54 trillion in assets under management (AUM)[29]. Business Operations - Long-term inflows increased by 9% quarter-over-quarter, with multi-asset and alternatives generating 9.7billioninpositivenetflows[3].−TheETFbusinessachieved9.7 billion in positive net flows[3]. - The ETF business achieved 4.1 billion in positive net flows, marking the 14th consecutive quarter of growth[3]. - Fundraising in alternatives generated 6.8billion,withprivatemarketassetstotaling6.8 billion, with private market assets totaling 6.1 billion, including the launch of the Franklin Lexington Private Markets Fund[4]. - The institutional pipeline of won-but-unfunded mandates rose by 2.3billionto2.3 billion to 20.4 billion, the highest level since 2022[3]. - Cash and cash equivalents were 5.0billion,withtotalstockholders′equityat5.0 billion, with total stockholders' equity at 13.2 billion[9]. - The company repurchased 0.5 million shares for a total cost of $10.0 million during the quarter[9]. - The company serves clients in over 150 countries, leveraging its expertise in equity, fixed income, alternatives, and multi-asset solutions[29]. - The company has over 1,500 investment professionals and more than 75 years of investment experience[29].