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Jun 30
Franklin Resources Q3 2025 Earnings Report
Franklin Resources reported a drop in earnings with lower revenue and net income compared to the prior year.
Key Takeaways
Franklin Resources faced a challenging Q3 FY25 with declines in revenue and net income, although adjusted earnings remained relatively stable. The firm saw strong performance in alternative fundraising and ETF inflows, alongside improvements in institutional mandate activity.
Net income dropped to $92.3M, down from $174M a year ago.
Adjusted EPS was $0.49, while GAAP EPS fell to $0.15.
Total AUM reached $1.6118T, supported by $78B in market appreciation.
Long-term net outflows improved to $9.3B from $26.2B in the prior quarter.
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.comInternational Revenue
CapyFin.com Forward Guidance
Franklin expects continued strength in alternatives and institutional flows while remaining cautious about market and geopolitical volatility.
Positive Outlook
- Alternative fundraising reached $19B fiscal YTD.
- ETF platform had 15th consecutive quarter of positive net inflows.
- Institutional unfunded mandate pipeline hit a record $24.4B.
- Canvas® custom indexing AUM rose 20% QoQ to $13.7B.
- Strong balance sheet supports strategic investments and shareholder returns.
Challenges Ahead
- GAAP net income dropped significantly YoY.
- Revenue declined 3% from prior year.
- Long-term net outflows persisted at $9.3B.
- Fixed income AUM continued to decline.
- Operating margin fell to 7.5% from 10.5% a year ago.