IVZ's Q2 Earnings Lag as Expenses Rise, Higher AUM Boosts Revenues

Invesco’s IVZ second-quarter 2025 adjusted earnings of 36 cents per share lagged the Zacks Consensus Estimate of 40 cents. Moreover, the bottom line declined 16.3% from the prior-year quarter.

The results were adversely impacted by higher adjusted operating expenses. However, a rise in adjusted net revenues was a tailwind. An increase in the assets under management (AUM) balance due to solid inflows was positive too. 

Results in the reported quarter included certain notable items, which negatively impacted the quarterly performance. After considering those, net loss attributable to common shareholders was $12.5 million or 3 cents per share against net income of $132.2 million or 29 cents per share in the year-ago quarter.

Invesco’s Adjusted Revenues & Adjusted Expenses Rise

Adjusted net revenues in the quarter were $1.10 billion, up 1.7% year over year. The top line missed the Zacks Consensus Estimate of $1.11 billion.

Adjusted operating expenses were $760.2 million, up 1.3%.

The adjusted operating margin was 31.2%, up from 30.9% a year ago.

IVZ’s AUM Balance Increases

As of June 30, 2025, AUM was $2 trillion, up 16.6% year over year. The average AUM at the end of the second quarter totaled $1.9 trillion, up 13.7%.

The company witnessed long-term net inflows of $15.6 billion in the reported quarter. This was largely driven by ETFs and Index, China JV & India, Fundamental Fixed Income and Multi-Asset/Other.

Invesco’s Decent Balance Sheet

As of June 30, 2025, cash and cash equivalents were $922.7 million compared with $878.5 million as of June 30, 2024.

The long-term debt was $1.88 billion.

Invesco’s Share Repurchases

During the reported quarter, Invesco repurchased 1.7 million shares for $25 million.

Our View on IVZ

A tough macroeconomic backdrop will likely keep Invesco’s net flows volatile. However, strategic expansion initiatives, a partnership with Barings and efforts to improve AUM balance will likely support its financials.

Currently, IVZ sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance & Earnings Date of Invesco’s Peers

BlackRock’s BLK second-quarter 2025 adjusted earnings of $12.05 per share handily surpassed the Zacks Consensus Estimate of $10.66. The figure reflects a rise of 16% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed robust growth, reaching a record high of $12.52 trillion, driven by net inflows, market appreciation, and a favorable foreign exchange impact. However, higher expenses acted as a headwind.

Blackstone Inc. BX is slated to report second-quarter 2025 results on July 24.

Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has remained unchanged at $1.09. The figure implies an increase of 13.5% from the prior-year quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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