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Dec 31, 2024
Franklin Resources Q1 2025 Earnings Report
Franklin Resources reported mixed results in Q1 2025, with improved long-term inflows offset by significant net outflows driven by Western Asset Management.
Key Takeaways
Franklin Resources reported a net income of $163.6 million, or $0.29 per diluted share, for the quarter ended December 31, 2024. Long-term net outflows were $50 billion, but excluding Western Asset Management, long-term net inflows were $18 billion. The company's AUM ended the quarter at $1,575.7 billion.
Net income was $163.6 million, or $0.29 per diluted share.
Adjusted diluted earnings per share was $0.59.
Long-term net outflows were $50 billion, but positive in equity, multi-asset and alternatives.
Total assets under management were $1,575.7 billion.
Franklin Resources
Franklin Resources
Franklin Resources Revenue by Segment
Franklin Resources Revenue by Geographic Location
Revenue by Segment
Investment Mgmt Fees Revenue
CapyFin.comSales & Distribution Revenue
CapyFin.comShareholder Servicing Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
The company remains committed to strategically investing in the business to best serve clients while managing expenses and maintaining focus on enhancing shareholder value.
Positive Outlook
- The company will integrate select corporate functions at Western Asset Management, creating efficiencies and giving access to broader resources.
- The company's broad investment capabilities, extensive global distribution network and local asset management expertise continue to differentiate it in an increasingly competitive industry.
- Long-term inflows improved by 34% from the prior year quarter (excluding reinvested distributions).
- Alternatives fundraising generated $6 billion this quarter, of which $4.3 billion was in private market assets.
- Institutional pipeline of won-but-unfunded mandates increased by $2.3 billion to $18.1 billion.
Challenges Ahead
- This past year has presented significant challenges for Western Asset Management.
- Long-term net outflows were $50 billion, inclusive of $67.9 billion of long-term net outflows at Western Asset Management.
- Total assets under management (“AUM”) were $1,575.7 billion at December 31, 2024, down $102.9 billion during the quarter.
- Net market change, distributions and other had a negative impact of $52.9 billion.
- Adjusted operating income decreased by 1% year over year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income