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Jun 30, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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