Invesco reported adjusted diluted EPS of $0.62 for Q4 2025, surpassing the consensus estimate of $0.57 and up 19.2% from $0.52 a year ago. Adjusted net revenues climbed 8.8% year-over-year to $1.259 billion, driven by higher management fees on increased average assets under management (AUM) and performance fees of $28.9 million. Adjusted operating margin expanded to 36.4%, up from 33.7% in Q4 2024, reflecting disciplined expense controls and positive operating leverage across its ETF and index businesses.

Total AUM reached a record $2.17 trillion at quarter end, marking a 17.5% year-over-year increase. Net long-term inflows were $19.1 billion in Q4 and $81.2 billion for full-year 2025, led by ETFs & index products ($11.9 billion in Q4) and the China joint venture ($8.9 billion). Net market gains added $10.7 billion to AUM, offset slightly by a $1.7 billion FX headwind. Average AUM for the quarter rose 4.9% sequentially to $2.162 trillion, underpinning fee growth and revenue visibility.

In Q4, Invesco repurchased $500 million of Series A preferred stock and fully repaid a $240 million bank term loan, strengthening its capital structure and reducing interest expense. The company maintains robust liquidity and redeployed free cash flow to common share repurchases while prioritizing deleveraging. Non-cash intangible impairments of $1.8 billion weighed on GAAP EPS but had no impact on adjusted results, underscoring management’s commitment to transparency in financial reporting.

During the quarter, Invesco completed the conversion of a flagship unit investment trust to an open-end ETF structure, enhancing product flexibility and distribution potential. Divestitures of IntelliFlo and a majority stake in its India asset management joint venture reflect a focus on core capabilities and margin expansion. Management reaffirmed its objective to accelerate profitable growth through continued innovation in ETF and index solutions, targeted M&A, and expansion in high-growth regions such as Asia Pacific.