Invesco Reports Q2 2025 Revenue Growth but Declines in Net Income

Invesco Ltd. reported its financial results for the second quarter of 2025, revealing a total operating revenue of $1.515 billion, a 2.2% increase from $1.483 billion in the same period last year. For the first half of 2025, the company generated $3.045 billion in operating revenue, up 2.9% from $2.959 billion in the first half of 2024. The increase in revenue was primarily driven by a rise in investment management fees, which reached $1.101 billion for the quarter, reflecting a 3.3% increase year-over-year. However, performance fees saw a significant decline, dropping 70.1% to $2.6 million for the quarter compared to $8.7 million in the prior year.

Invesco's net income attributable to the company showed a notable decline, reporting a loss of $12.5 million for the second quarter, compared to a profit of $132.2 million in the same quarter of 2024. For the first half of 2025, net income was $158.6 million, down from $273.7 million in the previous year. The decrease in profitability was attributed to increased employee compensation expenses, which rose by 12.8% to $510.4 million in the second quarter, and a significant severance expense related to organizational changes within the investment teams.

The company also announced strategic developments, including the repurchase of $1 billion of its Series A Preferred Stock from MassMutual, funded through new bank term loans. This repurchase was part of a broader capital management strategy aimed at enhancing shareholder value. Additionally, Invesco is expanding its private markets business by proposing to add Barings as a sub-advisor to an existing private credit fund, with MassMutual planning to invest $150 million into the fund.

In terms of operational metrics, Invesco's assets under management (AUM) reached a record $2 trillion, marking a significant increase from $1.716 trillion a year earlier. The company reported net long-term inflows of $15.6 billion for the second quarter, driven by strong demand across various investment products. The geographic distribution of AUM showed growth in the Asia-Pacific region, which contributed $71.7 million in revenue, up from $62.1 million in the previous year.

Looking ahead, Invesco remains focused on maintaining a strong balance sheet while pursuing growth opportunities. The company anticipates that its diversified investment capabilities will continue to attract client interest, despite the challenges posed by market volatility and changing client preferences. Invesco's management emphasized their commitment to prudent capital management, including returning excess cash to shareholders through dividends and share repurchases, while also investing in strategic initiatives to enhance long-term growth.