Janus Henderson Reports $621.4 Million Revenue in Q1 2025, 13% Increase Year-Over-Year

Janus Henderson Group PLC reported a total revenue of $621.4 million for the first quarter of 2025, marking a 13% increase from $551.7 million in the same period last year. The growth was primarily driven by a $53.6 million rise in management fees, attributed to improved average assets under management (AUM), which reached $373.2 billion, a 6% increase year-over-year. However, net income attributable to Janus Henderson Group decreased by 7% to $120.7 million, down from $130.1 million in the prior year, largely due to a decline in other non-operating income and unfavorable movements in investment gains.

Operating expenses for the quarter totaled $467.8 million, an 8% increase from $432.5 million in the first quarter of 2024. This rise was influenced by higher employee compensation and benefits, which increased by $15.7 million, and distribution expenses, which rose by $9.7 million, both reflecting the growth in AUM. Operating income improved by 29% to $153.6 million, resulting in an operating margin of 24.7%, up from 21.6% in the previous year.

Strategically, Janus Henderson announced a partnership with Guardian Life Insurance Company, which will see the firm manage Guardian's $45 billion investment-grade public fixed income asset portfolio. Additionally, the company completed the acquisition of Victory Park Capital Advisors in late 2024, enhancing its capabilities in private markets. The firm also reported a new share buyback program, authorizing the repurchase of up to $200 million of its common stock.

In terms of operational metrics, Janus Henderson experienced net inflows of $2.0 billion during the first quarter, with significant contributions from intermediary and institutional clients. The firm’s investment performance remained strong, with 77% of AUM outperforming relevant benchmarks over three years. The company also reported a 3% increase in its quarterly cash dividend, declaring $0.40 per share for the first quarter of 2025.

Looking ahead, Janus Henderson anticipates continued growth in AUM and revenue, supported by its strategic initiatives and market conditions. The company expects to maintain a compensation-to-revenue ratio between 43% and 44% for the year, while also planning for mid- to high-single-digit growth in non-compensation operating expenses. The firm remains focused on leveraging its acquisitions and partnerships to enhance its market position and drive future profitability.