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Mar 31

T. Rowe Price Q1 2025 Earnings Report

T. Rowe Price reported stable revenue and net income in Q1 2025 despite client outflows.

Key Takeaways

T. Rowe Price posted solid results with $1.76 billion in revenue and $490.5 million in net income. The firm experienced $8.6 billion in net client outflows but maintained strong EPS and ended the quarter with $1.57 trillion in AUM.

Revenue reached $1.76 billion, up slightly from the prior year.

Net income was $490.5 million, with EPS at $2.15 and adjusted EPS at $2.23.

Assets under management fell to $1.566 trillion due to $8.6 billion in net outflows and market depreciation.

The company returned $506 million to shareholders via dividends and buybacks.

Total Revenue
$1.76B
Previous year: $1.75B
+0.8%
EPS
$2.23
Previous year: $2.38
-6.3%
Equity AUM
$773B
Previous year: $830B
-6.8%
Fixed Income AUM
$196B
Previous year: $188B
+4.0%
Multi-Asset AUM
$544B
Previous year: $536B
+1.6%
Cash and Equivalents
$2.84B
Previous year: $2.42B
+17.4%
Free Cash Flow
$668M
Previous year: $535M
+24.9%
Total Assets
$14B
Previous year: $12.9B
+8.9%

T. Rowe Price

T. Rowe Price

Forward Guidance

T. Rowe Price expects continued progress amid uncertainty, with a focus on retirement leadership and investment capabilities.

Positive Outlook

  • Maintained $1.57 trillion in AUM despite market pressure
  • Strong balance sheet with nearly $2.84 billion in cash
  • Effective cost controls reducing operating expenses
  • Investment in technology and infrastructure continues
  • Positioned to navigate uncertain markets effectively

Challenges Ahead

  • Net client outflows of $8.6 billion in the quarter
  • Decline in performance-based advisory fees
  • Lower market returns impacting revenue
  • Decreased assets in equity strategies
  • Slight decrease in AUM from Q4 2024 levels