FRANKLIN RESOURCES INC SEC 10-Q Report

Franklin Resources Inc., a global investment management organization, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report highlights the company's financial performance and operational activities amidst a challenging economic environment. The following sections provide a detailed summary of the key financial and business highlights from the report.

Financial Highlights

Total Operating Revenues: $2,064.0 million, a decrease of 3% compared to the same period last year, primarily due to a decrease in average assets under management (AUM).

Operating Income: $154.1 million, a decrease of 31% from the prior year period, reflecting lower revenues and increased operating expenses.

Net Income Attributable to Franklin Resources, Inc.: $92.3 million, a decrease of 47% compared to the same period last year, impacted by lower operating income and other income.

Diluted EPS: $0.15, a decrease of 53% from the prior year period, reflecting the decline in net income.

Business Highlights

Revenue Segments

Investment management fees decreased by 3% for the three months ended June 30, 2025, primarily due to a 4% decrease in average AUM, with a slight increase in performance fees. Sales and distribution fees decreased by 2% for the same period, driven by a decrease in commissionable sales. Shareholder servicing fees also saw a 3% decline due to lower levels of related AUM.

Geographical Performance

Operating revenues by geographic area for the three months ended June 30, 2025, showed the United States contributing $1,553.9 million, Luxembourg $308.8 million, Asia-Pacific $82.4 million, Americas excluding the United States $58.9 million, and Europe, Middle East, and Africa excluding Luxembourg $60.0 million. For the nine months ended June 30, 2025, the United States contributed $4,846.7 million, Luxembourg $947.3 million, Asia-Pacific $242.2 million, Americas excluding the United States $181.4 million, and Europe, Middle East, and Africa excluding Luxembourg $209.4 million.

Sales Units

Long-term inflows for the three months ended June 30, 2025, were $75.6 billion, with long-term outflows at $84.9 billion, resulting in long-term net outflows of $9.3 billion. For the nine months ended June 30, 2025, long-term inflows were $259.3 billion, with outflows at $344.8 billion, leading to net outflows of $85.5 billion.

Future Outlook

The company remains focused on investment performance and high-quality client service amidst complex and uncertain global business and regulatory environments. The company plans to continue strategic investments in systems and technology to provide a secure and stable environment, while also focusing on brand recognition and client relationships.

SEC Filing: FRANKLIN RESOURCES INC [ BEN ] - 10-Q - Aug. 01, 2025