Cohen & Steers (CNS) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw net inflows for the third consecutive quarter, led by open-end funds and strong investment performance across most strategies.

• Assets under management (AUM) rose to $87.6 billion as of March 31, 2025, up from $85.8 billion at December 31, 2024, with market appreciation of $2.1 billion in Q1 2025.

• Net income for Q1 2025 was $38.4 million, down from $40.4 million in Q4 2024; diluted EPS was $0.75 versus $0.78 sequentially.

• Launched first active ETFs in February 2025, expanding product offerings and investor access.

• Macroeconomic uncertainty and market volatility influenced investor sentiment and asset flows during the quarter.

Financial highlights

• Q1 2025 revenue was $133.8 million, down from $139.9 million in Q4 2024.

• Operating margin was 34.7%, slightly lower than the prior quarter.

• Liquidity at quarter end was $295 million, down due to annual incentive compensation cycle.

• Adjusted net income was $38.4 million and adjusted diluted EPS was $0.75, reflecting non-recurring items.

• Revenue increased 9.6% year-over-year to $134.5 million for Q1 2025.

Outlook and guidance

• Compensation ratio expected to remain at 40.5% for the year.

• G&A expenses projected to rise 6%-7% year-over-year, reflecting infrastructure investments and ETF rollout costs.

• Effective tax rate guidance maintained at 25.3% as-adjusted.

• Focus remains on leveraging portfolio management expertise, disciplined risk management, and prudent cost control to navigate ongoing market volatility.

• Continued focus on innovation, new product launches, and potential inorganic growth opportunities.