Invesco (IVZ) investor relations material

Executive summary

• Achieved record AUM of $2.1 trillion, up 18.3% year-over-year and 6.2% sequentially, driven by net long-term inflows of $28.9 billion (7.9% annualized organic growth) and strong market gains.

• Broad-based inflows across active and passive products, with notable strength in ETFs, index products, U.S. private wealth, and China/India, and positive flows in all major regions.

• Strategic initiatives included recapitalization, hybrid investment platform rollout, sale of intelliflo, private markets partnership with Barings, and sale of a majority interest in India.

• Ongoing transformation of the QQQ ETF structure, with strong shareholder support and expected conversion post-December 5th meeting.

• Net income attributable to shareholders rose to $301.3 million, with diluted EPS at $0.66 and adjusted diluted EPS at $0.61, both impacted by a $35.9 million non-cash impairment charge related to the intelliflo divestiture.

Financial highlights

• Operating revenues increased 8.2% year-over-year to $1,640.4 million, with net revenues (non-GAAP) at $1,186.3 million, up 7.4% year-over-year.

• Adjusted operating income was $406.1 million, with adjusted operating margin improving to 34.2% (up 300 bps sequentially and 260 bps year-over-year).

• Net income attributable to shareholders was $301.3 million, up from $55.0 million a year earlier.

• Effective tax rate for Q3 2025 was (2.8)% due to favorable tax resolution.

• Net revenue yield stabilized at 22.9 bps, with gross revenue yield on AUM at 33.7 bps, reflecting asset mix shifts.

Outlook and guidance

• Management expects continued strong operating cash flow, enabling further debt repayment and capital return, with incremental EPS benefits from early term loan repayments by end of 2026.

• Hybrid platform implementation costs to remain elevated through 2026, peaking that year, with cost savings expected post-completion in 2027.

• Non-GAAP effective tax rate expected at 25%-26% in Q4, barring discrete items.

• Expense base to remain well managed, with focus on fixed costs and ongoing simplification.

• The intelliflo divestiture is expected to close in Q4 2025, and the sale of 60% of the India business was completed in October.