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Jun 30
T. Rowe Price Q2 2025 Earnings Report
T. Rowe Price reported growth in net income despite significant outflows from U.S. equities.
Key Takeaways
T. Rowe Price reported solid financial results in Q2 2025, with EPS increasing to $2.24 on revenues of $1.72 billion. Although total net outflows reached $14.9 billion, primarily from U.S. equities, fixed income and alternative strategies saw positive inflows. Operating expenses increased, impacting operating income margins slightly.
EPS rose to $2.24, driven by stable revenue performance.
Net revenues slightly decreased to $1.72 billion, influenced by lower advisory fees.
Significant net outflows of $14.9 billion, concentrated in U.S. equity assets.
Fixed income and alternatives attracted positive net inflows, offsetting some equity losses.
T. Rowe Price
T. Rowe Price
T. Rowe Price Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
The company expects continued challenges from equity outflows but anticipates growth opportunities in fixed income and alternatives.
Positive Outlook
- Growing assets in fixed income strategies.
- Strong performance attracting inflows to alternative investments.
- Robust cash position of over $3 billion providing financial flexibility.
- Increasing opportunities in retirement plan assets and target-date funds.
- Unfunded capital commitments increased, signaling future deployment opportunities.
Challenges Ahead
- Ongoing net outflows in U.S. equities expected to persist.
- Rising operating expenses pressuring profit margins.
- Continued market volatility potentially affecting investment advisory fees.
- Fee compression expected due to competition in advisory markets.
- Performance-based fees declining, impacting revenue growth.