Franklin Resources Inc.

Latest Results (23.09.2025):

Franklin Resources Inc. reported its financial results for the second quarter of 2025, showing a decrease in net income compared to the previous quarter and the same quarter last year. Despite the decline in net income, the company demonstrated resilience through strong asset management and continued growth in alternative investments.

Net Income Decline

For the quarter ended June 30, 2025, Franklin Resources Inc. reported a net income of $92.3 million or $0.15 per diluted share, down from $151.4 million or $0.26 per diluted share in the previous quarter and $174.0 million or $0.32 per diluted share in Q2 2024.

Adjusted Earnings Performance

Adjusted net income stood at $263.4 million with diluted earnings per share of $0.49 for Q2 2025, reflecting a 4% increase from the previous quarter but a significant decrease of 19% compared to Q2 2024. Adjusted operating income remained relatively stable at $377.8 million.

Asset Under Management Growth

Assets under management increased to $1,611.8 billion as of June 30, 2025, driven by a positive market change and net cash inflows. The company maintained strong AUM growth despite long-term net outflows of $9.3 billion.

Fundraising and Strategic Acquisitions

Franklin Resources successfully raised $6.2 billion in alternatives during the quarter, including $5.3 billion in private market assets. Additionally, the acquisition of a majority interest in Apera Asset Management expanded the company's private credit AUM to nearly $90 billion.

Strong Investment Vehicle Performance

The company's ETF platform achieved its 15th consecutive quarter of positive net flows, attracting $4.3 billion and reaching $44.1 billion in AUM. Retail SMAs and the Canvas® custom indexing platform also saw significant inflows, with Canvas’ AUM increasing by 20% to $13.7 billion.

Operational Efficiency and Shareholder Returns

Franklin Resources focused on expense discipline and operational efficiencies, maintaining a strong balance sheet. The company repurchased 7.3 million shares of common stock for $157.4 million during the quarter, demonstrating its commitment to returning capital to shareholders.