T. Rowe Price Reports Slight Decline in Net Revenues and Income for Q2 2025

T. Rowe Price Group, Inc. reported its financial results for the second quarter and first half of 2025, revealing a slight decline in net revenues and net income compared to the previous year. For the three months ended June 30, 2025, the company generated net revenues of $1,723.3 million, a decrease of 0.6% from $1,733.3 million in the same period of 2024. The decline was primarily attributed to a significant drop in performance-based advisory fees, which fell by 61.9% to $6.4 million from $16.8 million a year earlier. However, investment advisory fees remained relatively stable, totaling $1,567.6 million, down just 0.1% from the prior year.

In terms of profitability, T. Rowe Price reported a net income of $505.2 million for the second quarter, up 4.5% from $483.4 million in the same quarter of 2024. This increase was driven by higher non-operating income, which surged to $235.5 million from $80.3 million, largely due to increased investment gains. Diluted earnings per share rose to $2.24, compared to $2.11 in the previous year. For the first half of 2025, net income was $995.7 million, a decrease of 5.8% from $1,057.2 million in the first half of 2024.

The company’s assets under management (AUM) reached $1,676.8 billion as of June 30, 2025, marking a 6.9% increase from $1,569.1 billion a year earlier. This growth was driven by market appreciation and income, which contributed $125.4 billion, despite net cash outflows of $14.9 billion during the quarter. The average AUM for the second quarter was $1,588.8 billion, reflecting a 3.6% increase from the previous year. T. Rowe Price's investment advisory clients outside the U.S. accounted for 8.7% of AUM, consistent with previous quarters.

Operationally, T. Rowe Price's employee headcount decreased slightly to 8,063 as of June 30, 2025, down from 8,084 at the end of the first quarter. The company continues to invest in technology and infrastructure, with capital expenditures expected to reach approximately $282 million for the full year, primarily focused on technology initiatives. Looking ahead, T. Rowe Price anticipates that its effective tax rate for the full year 2025 will range between 23.5% and 27.5%, and it remains committed to aligning expense growth with anticipated revenue growth while navigating a competitive investment management landscape.