Cohen & Steers (CNS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose to $136.1 million, up 11.8% year-over-year and 1.1% sequentially, driven by higher average AUM and favorable asset mix.

• Assets under management (AUM) reached $88.9 billion at June 30, 2025, up from $87.6 billion in Q1 and 10.2% higher year-over-year, with growth across open-end, institutional, and closed-end funds.

• Diluted EPS for Q2 2025 was $0.73 (adjusted), down from $0.75 in Q1 but up from $0.63 year-over-year; net income was $37.3 million (adjusted).

• Operating margin was 33.6% (adjusted) in Q2 2025, down from 34.7% in Q1 but up from 31.5% year-over-year.

• Investment performance remained strong, with 98% of AUM in outperforming strategies over one year and 94% of U.S. open-end fund AUM rated 4 or 5 stars by Morningstar.

Financial highlights

• Q2 2025 revenue was $136.1 million (+11.8% year-over-year); adjusted expenses were $89.9 million, up from $87.3 million in Q1.

• Net outflows totaled $131 million in Q2 2025, compared to net inflows of $222 million in Q1.

• Effective fee rate held steady at 59 basis points; annualized fee rates: open-end funds 67.3 bps, institutional 38.9 bps, closed-end 89.1 bps.

• Liquidity at quarter end was $323 million, up from $295 million in Q1; cash and equivalents totaled $95.4 million.

• Total expenses increased 2.9% sequentially, mainly due to higher compensation, benefits, and G&A.

Outlook and guidance

• Compensation ratio expected to remain at 40.5% for 2025; G&A projected to rise 7%-8% over 2024, driven by talent acquisition and business development.

• Effective tax rate expected to stay at 25.3% for 2025; actual Q2 2025 effective tax rate was 24.7%.

• G&A growth expected to moderate to mid-single digits after 2025.

• Management expects continued macroeconomic uncertainty and market volatility but remains confident in risk management and cost control.