T. Rowe Price Group, Inc. reported a solid financial performance for the fiscal year ending December 31, 2025, with net revenues reaching $7.31 billion, a 3.1% increase from $7.09 billion in 2024. The company's investment advisory fees, which constitute the majority of its revenue, rose to $6.60 billion, up from $6.40 billion the previous year. However, net income attributable to T. Rowe Price Group slightly decreased to $2.09 billion, down from $2.10 billion in 2024, reflecting a net operating income decline of 6.2% due to increased operating expenses, which rose by 7.7% to $5.13 billion.
The company's assets under management (AUM) increased significantly, totaling $1.78 trillion at the end of 2025, up by $169 billion from the previous year. This growth was primarily driven by market appreciation of $216.7 billion, despite experiencing net cash outflows of $56.9 billion. Notably, T. Rowe Price's target date retirement products saw net cash inflows of $5.2 billion, with AUM in these products reaching $561.4 billion, representing 31.6% of total managed assets, an increase from 29.6% in 2024.
Strategically, T. Rowe Price has undertaken several initiatives to enhance its operational efficiency and market position. In 2025, the firm executed a restructuring plan that included targeted role eliminations and the decision to exit certain owned properties, which resulted in a restructuring charge of $177.3 million. The company also focused on expanding its technology capabilities and enhancing its distribution channels to better serve clients. As of December 31, 2025, T. Rowe Price employed 7,773 associates, a decrease of 4.7% from the previous year, reflecting the impact of its restructuring efforts.
Looking ahead, T. Rowe Price anticipates continued growth in AUM and revenues, driven by strategic investments in technology and product offerings. The firm expects its non-GAAP operating expenses to grow between 3% and 6% in 2026, aligning with its revenue growth projections. The company remains committed to delivering strong financial results while navigating the evolving investment management landscape, characterized by increasing competition from passive investment strategies and ongoing regulatory changes.
About PRICE T ROWE GROUP INC
T. Rowe Price Group is a global investment management firm offering active equity, fixed income, multi-asset, and alternative strategies. Serving individual, institutional, and retirement clients worldwide, it provides mutual funds, ETFs, managed accounts, and private investments. Its core value lies in active, independent investing, delivering long-term performance, client service, and leveraging diverse distribution channels and a strong corporate culture.
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