It has been about a month since the last earnings report for Invesco (IVZ). Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Invesco due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Invesco's Q2 Earnings Lag as Expenses Rise, Higher AUM Boosts Revenues
Invesco’s 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 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.
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.
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.
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.
Share Repurchases
During the reported quarter, Invesco repurchased 1.7 million shares for $25 million.
Outlook
Management expects one-time implementation costs of Alpha to be $15-$20 million in the third quarter and $10-$15 million in the fourth quarter of 2025.
Non-GAAP effective tax rate is expected to be closer to 26% in the third quarter of 2025.
Management expects its total payout ratio to be near 60% in 2025.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Invesco has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Invesco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Invesco Ltd. (IVZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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