Franklin Resources Reports Q2 Financial Results with $2.11 Billion in Revenues

Franklin Resources, Inc. reported its financial results for the second fiscal quarter ending March 31, 2025, revealing total operating revenues of $2.11 billion, a decrease of 2% from $2.15 billion in the same period last year. For the six months ended March 31, 2025, revenues increased by 5% to $4.36 billion compared to $4.14 billion in the prior year. The company’s operating income rose to $145.6 million, up 13% from $129.3 million year-over-year, while net income attributable to Franklin Resources was $151.4 million, a 22% increase from $124.2 million in the previous year. However, diluted earnings per share for the quarter increased to $0.26, a 13% rise, while for the six months, it decreased by 23% to $0.55.

The company experienced significant changes in its asset management fees, which fell by 2% to $1.67 billion for the quarter, primarily due to a 1% decrease in average assets under management (AUM). In contrast, sales and distribution fees increased by 2% to $364.9 million, and shareholder servicing fees decreased by 9% to $61.9 million. The increase in revenues for the six-month period was attributed to the acquisition of Putnam Investments, which contributed additional revenue, although performance fees decreased due to lower earnings from certain alternative investment managers.

Operationally, Franklin Resources reported a total AUM of $1.54 trillion as of March 31, 2025, reflecting an 8% decline from $1.68 trillion at the end of September 2024. The decrease was driven by long-term net outflows of $76.2 billion, including significant outflows from fixed income vehicles managed by Western Asset Management (WAM). The company’s workforce slightly decreased to approximately 10,000 employees from 10,100 a year earlier, indicating ongoing efforts to streamline operations.

In terms of strategic developments, Franklin Resources entered into an Amended and Restated Revolving Credit Agreement on April 30, 2025, providing a five-year term with $1.1 billion in available borrowings. This agreement replaces a previous $800 million credit facility and is intended to support general corporate purposes. The company also reported a significant impairment charge of $24.4 million related to certain intangible assets during the quarter, reflecting ongoing challenges in the investment landscape.

Looking ahead, Franklin Resources remains focused on managing expenses while seeking to enhance its investment performance and client service. The company acknowledges the complexities of the current economic and regulatory environment and plans to continue investing in technology and personnel to support its growth objectives. Despite the challenges, Franklin aims to maintain its brand recognition and strengthen its relationships with clients and brokers.