Cohen & Steers (CNS) Q4 2024 earnings summary

Executive summary

• Q4 2024 diluted EPS was $0.89 ($0.78 as adjusted); full-year diluted EPS was $2.97 ($2.93 as adjusted), both up from the prior year.

• Q4 2024 net income was $45.8M, up 15.5% sequentially; full-year net income reached $151.3M, a 17.2% increase year-over-year.

• Revenue for Q4 rose 4.9% sequentially to $139.9M; full-year revenue increased 5.9% to $518M.

• AUM ended Q4 2024 at $85.8B, down from $91.8B in Q3 due to market depreciation, but up from $83.1B at year-end 2023.

• Q4 2024 net inflows were $860M, primarily from open-end funds, marking the second consecutive quarter of positive flows.

Financial highlights

• Q4 2024 revenue (as adjusted) was $139.9M, up from $133.4M in Q3 2024 and $119.0M in Q4 2023.

• Q4 operating income was $49.7M, up from $47.6M sequentially; operating margin was 35.5%, consistent with the prior quarter.

• Q4 net income attributable to common stockholders was $45.8M, up 53.7% year-over-year.

• Cash, cash equivalents, Treasurys, and liquid seed investments totaled $360.9M at year-end, up from $348.4M in Q3.

• Performance fees of $1.4M were recognized in Q4, related to full-year results of certain institutional accounts.

Outlook and guidance

• Compensation ratio expected to remain at 40.5% for 2025.

• G&A expenses projected to increase 6%-7% in 2025 versus 2024, driven by business development, technology, and ETF launch costs.

• Effective tax rate guidance for 2025 is 25.3%.

• $800M in expected redemptions in the first half of 2025, with $200M already occurred before year-end.

• Management highlights forward-looking statements are subject to risks and uncertainties, with reference to the latest 10-K for detailed risk factors.