Invesco (IVZ) investor relations material

Executive summary

• Record ending AUM of $2,537.8B; Q3 net long-term inflows were $35.1B, equal to 6.3% annualized organic growth and the 13th consecutive quarter of inflows.

• Adjusted operating income rose 12.8% QoQ to $562.3M; adjusted operating margin reached 40.7% and adjusted diluted EPS was $0.72, up 18.0% YoY.

• Nine-month net long-term inflows totaled $102.0B; more than half of inflows came from outside the U.S.

Financial highlights

• Adjusted net revenue was $1,381.7M, up 4.0% QoQ and 16.5% YoY; average AUM rose 6.0% QoQ to $2,510.2B.

• Adjusted operating expenses declined 1.3% QoQ to $819.4M and increased 5.0% YoY; operating leverage was 530 bps QoQ.

• GAAP operating revenue was $1,873.2M, up 2.6% QoQ and 14.2% YoY; GAAP operating income was $436.5M, up 19.9% QoQ.

• GAAP net income attributable to shareholders was $294.5M; diluted EPS was $0.65 versus $0.76 QoQ and $0.66 YoY.

• Nine-month adjusted net income was $909.5M versus $641.1M; adjusted diluted EPS was $2.01 versus $1.41.

Outlook and guidance

• Q4 adjusted operating expenses are expected at $830M-$840M assuming flat markets; property, office and technology expense is expected at $120M-$125M.

• Q4 non-GAAP effective tax rate is expected at 25%-26%, excluding discrete items; FY 2026 compensation ratio is expected at 39%-40%.

• Management aims to sustain operating margin in the high 30s through varied markets while remaining open to margins above 40% and continuing growth investment.

• Hybrid platform implementation costs are expected near $15M in Q4 and to become immaterial in Q1; platform-related AUM expense is expected to reach $10M in Q4.

• Capital priorities include growth reinvestment, balance-sheet strength and shareholder returns; preferred-stock repurchases are forecast to add $0.41 of total run-rate EPS improvement.