Invesco Q2 2025 slides: AUM tops $2 trillion despite EPS decline

Introduction & Market Context

Invesco Ltd (NYSE:IVZ) released its second quarter 2025 results on July 22, 2025, revealing that assets under management (AUM) surpassed the $2 trillion milestone for the first time in company history. Despite this achievement, the asset manager reported a decline in adjusted earnings per share compared to both the previous quarter and the same period last year.

In premarket trading, Invesco shares were down 0.5% at $20.10, following a 1.41% gain in the previous session. The stock has been trading near its 52-week high of $20.63, reflecting investor optimism about the company’s growth trajectory despite the mixed quarterly results.

Quarterly Performance Highlights

Invesco’s total AUM reached $2,001.4 billion at the end of Q2 2025, representing a significant increase from $1,844.8 billion in Q1 2025 and $1,715.8 billion in Q2 2024. This growth was supported by positive net long-term flows of $15.6 billion during the quarter, translating to an annualized organic growth rate of 4.7%.

As shown in the following breakdown of investment capabilities and flows:

ETFs and index strategies continued to be a major growth driver, contributing $12.6 billion in net long-term flows with ending AUM of $546.9 billion. The company highlighted strength across geographies, record net inflows for QQQM and Momentum/Quality ETFs, and the launch of four new active ETFs.

Fundamental fixed income also performed well with $2.8 billion in net inflows, while the China joint venture and India operations generated $5.6 billion in net long-term flows. However, fundamental equities experienced $3.6 billion in outflows, though this represented an improvement from previous quarters. Private markets also faced challenges with $2.3 billion in outflows.

The company’s diversification across geographies, investment approaches, and distribution channels is illustrated in this comprehensive breakdown:

Detailed Financial Analysis

Despite the growth in AUM, Invesco’s financial results showed some pressure points. Net revenues for Q2 2025 were $1,104.6 million, slightly down from $1,108.7 million in Q1 2025 but up from $1,085.8 million in Q2 2024. Adjusted operating expenses increased marginally to $760.2 million from $759.2 million in the previous quarter.

The following financial highlights illustrate the company’s performance trends:

Adjusted operating income came in at $344.4 million, down from $349.5 million in Q1 2025 but up from $335.3 million in Q2 2024. The adjusted operating margin was 31.2%, slightly lower than the 31.5% achieved in the previous quarter.

Most notably, adjusted diluted EPS fell to $0.36, down from $0.44 in Q1 2025 and $0.43 in Q2 2024. This decline occurred despite the growth in AUM and relatively stable operating income, suggesting pressure on net income attributable to common shareholders.

The changes in revenues and expenses between quarters are broken down in the following waterfall charts:

Strategic Initiatives

Invesco’s strategic framework focuses on leveraging its global position as a diversified asset manager to drive enhanced operating performance. The company highlighted its advantageous market position, strategic focus areas, and key performance drivers:

Investment performance remains a critical metric for Invesco’s long-term success. The company reported that 63% of AUM was above benchmark for the 1-year period, 67% for the 3-year period, and 68% for the 5-year period. Performance varied across asset classes, with multi-asset strategies showing the strongest results:

On the capital management front, Invesco continued to strengthen its financial flexibility. The leverage ratio improved to 2.70x, continuing a downward trend from 3.01x in Q2 2024. This deleveraging effort represents a key element of the company’s strategy to enhance shareholder returns.

The following capital management metrics illustrate the company’s progress:

Forward-Looking Statements

Looking ahead, Invesco is focused on capitalizing on its diversified business model while addressing challenges in certain segments. The company’s ability to generate strong flows in ETFs and fixed income products provides a solid foundation, but improving performance in fundamental equities and private markets remains a priority.

The firm’s geographic diversification, with 70% of AUM in the Americas, 15% in Asia Pacific, and 15% in EMEA, positions it to capture growth opportunities across global markets. Particularly noteworthy is the momentum in China and India, where the company continues to expand its product offerings and client base.

Invesco’s revenue yield trends across different asset classes will be an important factor to monitor, as shown in this analysis of AUM growth and net revenue yield:

While the company has achieved significant AUM growth, the decline in adjusted EPS suggests challenges in translating that growth into improved bottom-line results. Management will need to focus on expense discipline and operational efficiency to improve profitability metrics in coming quarters.

The asset management industry continues to face secular pressures on fees and shifts in investor preferences toward passive strategies. Invesco’s balanced approach, with 54% of AUM in active strategies and 46% in passive, provides some insulation from these trends, but ongoing adaptation to changing market dynamics will be essential for sustained success.

Full presentation:

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