Invesco third-quarter diluted EPS slips to $0.65 as operating income rises 61%

Invesco Ltd. (IVZ) reported third-quarter diluted earnings per share of $0.65 on Tuesday, down from $0.66 a year earlier. The results cover the three months ended Sept. 30.

The asset manager said in a filing that operating income rose 61.1% to $436.5 million from $270.9 million a year earlier.

Here's how the company did:

• Diluted EPS: $0.65 vs. $0.66 a year earlier
• Adjusted diluted EPS: $0.72 vs. $0.61 a year earlier
• Operating revenues: $1,873.2 million vs. $1,640.4 million a year earlier
• Net revenues: $1,381.7 million vs. $1,186.3 million a year earlier
• Net income attributable to Invesco Ltd.: $294.5 million vs. $301.3 million a year earlier

Operating revenues rose 14.2% from a year earlier. Investment management fees increased $327.5 million, primarily because of management fees for QQQ after its conversion to an open-end fund ETF, along with higher average AUM.

Service and distribution fees fell $87.5 million. The company said that decline was mainly due to the elimination of QQQ's pass-through service revenues after the conversion.

Net income attributable to Invesco Ltd. was $294.5 million, down 2.3% from $301.3 million a year earlier.

The effective tax rate was 23.3%, compared with a negative 2.8% a year earlier. The company said the increase was primarily due to a favorable resolution of a tax matter in the third quarter of 2025.

Non-GAAP figures are used by the company to show results without certain items. Net revenues exclude fees passed through to outside distributors. Adjusted measures exclude amortization of acquired intangible assets and market valuation changes in deferred compensation liabilities.

Flows and assets under management

Net long-term inflows were $35.1 billion, down from $45.1 billion in the second quarter but up from $28.9 billion a year earlier.

Retail net long-term inflows were $41.7 billion, while institutional net long-term outflows were $6.6 billion.

ETFs and Index products drew $28.5 billion of net long-term inflows, and QQQ drew $6.7 billion. Fundamental Fixed Income had outflows of $2.6 billion, and Fundamental Equities had outflows of $1.9 billion.

Ending AUM was $2,537.8 billion, up 19.4% from $2,124.8 billion a year earlier. Net market losses reduced AUM by $26.4 billion in the quarter, while foreign exchange added $4.5 billion.

Headcount was 7,416 at the end of the quarter, down 11.4% from 8,368 a year earlier.

Balance sheet and capital returns

Invesco repurchased $1.5 billion of its Series A Preferred Stock held by MassMutual on Oct. 26, funded through a $1.5 billion five-year floating-rate bank term loan.

“Strong operating performance is enhancing our financial flexibility and supporting continued progress in strengthening the balance sheet,” CEO Andrew Schlossberg said. The company said total preferred repurchases reached $3 billion over the past 18 months, leaving $1 billion outstanding.

Net debt fell $393 million during the quarter, to $315.8 million from $708.6 million at June 30. Debt was $1,281.3 million, down from $1,624.0 million, and cash and cash equivalents were $965.5 million.

The company repurchased 2.1 million common shares for $65 million in the open market during the quarter.

The company declared a third-quarter cash dividend of $0.215 per share, payable Dec. 2 to common shareholders of record at the close of business on Nov. 13. It also declared a preferred cash dividend of $14.75 per share for the period from Sept. 1 through Nov. 30, payable Dec. 1.

Other items

In the second quarter, Invesco sold the management agreements for its Canadian fund business to CI Global Asset Management. The filing said the sale, effective June 1, decreased AUM by $11.0 billion.

The release did not include financial guidance for future periods.