Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q1 2026 Earnings Presentation
25 slides from Franklin Resources's earnings presentation, Jan 30, 2026
Slide 1: Franklin Resources, Inc. First Quarter 2026 Results
Franklin Resources, Inc. First Quarter 2026 Results January 30, 2026 | Investor Presentation
Slide 2: Forward-looking statements and non-GAAP financial information
Forward-looking statements and non-GAAP financial information This commentary contains forward-looking statements that involve a number of known and unknown risks, uncertainties and other important factors. This commentary also contains non-GAAP financial measures. For the reconciliations from US GA
Slide 3: First Quarter 2026 Business Highlights
First Quarter 2026 Business Highlights • AUM of $1.68 trillion comprised of investment capabilities across public and private markets • Long-term inflows were $118.6 billion, an increase of 40.3% from prior quarter and 22.5% from prior year quarter • Long-term net inflows were $28.0 billion, includi
Slide 4: First Quarter 2026 Financial Summary
First Quarter 2026 Financial Summary1 Key metrics (in US$ millions, except AUM in billions and per share data) Q1 2026 Q4 2025 Q1 2025 2 Ending AUM $1,684.0 $1,661.2 $1,575.7 Average AUM2 1,676.1 1,633.7 1,634.5 Adj. revenue 1,747.2 1,815.0 1,682.7 Investment management revenues 1,580.1 1,543.9 1,53
Slide 5: First Quarter 2026 AUM and Investment Performance
First Quarter 2026 AUM and Investment Performance
Slide 6: AUM and Adjusted Revenue Diversification
AUM and Adjusted Revenue Diversification Diversified by asset class, client type, and Q1 Adjusted Operating Revenue by region specialist investment manager (“SIM”) AUM of $1.68 trillion as of December 31, 2025 As of December 31, 2025 Cash 5% HNW 3% 11% Americas 6% 18% Multi-Asset APAC 10% All other
Slide 7: Investment Performance
Investment Performance Percentage of AUM above peer median and benchmark1 As of December 31, 2025 65% 64% 57% 55% 54% 49% 48% 51% 1-year 3-year 5-year 10-year Mutual funds vs. peers Strategy composites vs. benchmark • Mutual Funds: Over half of mutual fund/ETF AUM outperformed peers in 3-, 5-, and 1
Slide 8: AUM and Flows
AUM and Flows1 (In US$ billions, for the three months ended) Total AUM: $1.68 trillion 118.6 96.9 28.9 86.8 84.6 20.1 3.3 75.6 3.0 3.9 34.6 17.9 7.8 7.4 11.4 28.0 (9.3) (11.9) (26.2) (50.0) (84.9) (90.6) (96.5) (113.0) (146.9) Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Long-term Long-term Long-term net Ex-W
Slide 9: AUM and Flows: Equity and Fixed Income
AUM and Flows (In US$ billions, for the three months ended) Equity: $697 billion Fixed Income: $438 billion 61.1 55.9 38.9 32.0 32.9 26.4 26.5 33.6 33.5 28.2 12.5 19.8 10.6 0.3 2.8 3.5 2.6 (5.4) (0.6) (2.4) (6.9) (13.0) (12.6) (43.4) (44.3) (32.6) (39.8) (41.3) (30.5) (41.2) (35.9) (46.2) (57.0) (66
Slide 10: AUM and Flows: Alternative and Multi-Asset
AUM and Flows (In US$ billions, for the three months ended) Alternative: $274 billion Multi-Asset: $199 billion 12.9 13.2 11.2 12.4 10.8 9.8 8.5 8.1 6.6 5.6 5.7 4.4 3.4 3.4 3.3 4.0 6.4 3.1 6.6 1.8 0.8 3.2 1.7 2.5 3.2 (2.6) (2.1) (2.5) (3.1) (4.2) (7.8) (8.0) (8.0) (9.6) (9.2) 1 2 Dec-24 Mar-25 Jun-2
Slide 11: First Quarter 2026 Financial Results
First Quarter 2026 Financial Results
Slide 12: Financial Results
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted operating revenue and effective fee rate2 Adjusted operating expenses 37.2 38.3 37.5 37.5 37.4 $1,270 $1,343 $1,310 $1,233 $1,215 $1,815 $1,747 $1,683 $1,610 $1,593 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
Slide 13: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) 2 2 US GAAP Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 US GAAP Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Operating 219.0 145.6 154.1 85.4 281.0 Net Income 163.6 151.4 92.3 117.6 255.5 Income Operating 9.7% 6.9%
Slide 14: Illustrative 2026 Adjusted Operating Expense Bridge
Illustrative 2026 Adjusted Operating Expense Bridge1 (Non-GAAP in US$ billions) $4.85 $0.06 $0.08 ~$4.85 $4.82 $4.65 $0.03 $0.04 $0.20 2 FY24 FY25 Cost Savings Expenses Apera Fundraising Strategic Incentive Comp FY26 Actual Actual with Savings Investments Guidance • Continued expense discipline, com
Slide 15: Capital Management
Capital Management Dividends and share repurchases Allocation of cash and investments1 Senior notes3 (In US$ millions, for the trailing twelve months ended) (In US$ billions, as of December 31, 2025) (In US$ millions, as of December 31, 2025) 6.2 276 240 276 221 220 690 3.5 850 677 682 686 694 0.5 5
Slide 16: Appendix
Appendix
Slide 17: AUM and Flows
AUM and Flows (In US$ billions1) Dec 31, Sep 30, Dec 31, 2025 2025 % Change 2024 % Change Beginning AUM $1,661.2 $1,611.8 3.1% $1,678.6 (1.0%) Long-term inflows 118.6 84.6 40.2% 96.9 22.4% Long-term outflows (90.6) (96.5) (6.1%) (146.9) (38.3%) Long-term net flows 28.0 (11.9) NM (50.0) NM Cash manag
Slide 18: Alternative AUM Roll Forward
Alternative AUM Roll Forward (In US$ billions) Three months ended December 31, 2025 Private Markets1 Liquid & Other Total Beginning Balance $244.4 $19.5 $263.9 Fundraising2 9.5 1.3 10.8 Outflows (2.3) (1.9) (4.2) Acquisitions 6.1 - 6.1 Realizations & distributions3 (4.8) (0.0) (4.8) Net market chang
Slide 19: Financial Results: Revenues
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Revenues1 Dec-25 Dec-25 Adjusted vs. Adjusted vs. Dec-25 Dec-25 Sep-25 Sep-25 Dec-24 Dec-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,716.3
Slide 20: Financial Results: Expenses
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Expenses1 Dec-25 Dec-25 Adjusted vs. Adjusted vs. Dec-25 Dec-25 Sep-25 Sep-25 Dec-24 Dec-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 1,030.7 (131.2)
Slide 21: Financial Results: Other Income (Expense), Net
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Other Income (Expense), Net1 Dec-25 Dec-25 Adjusted vs. Adjusted vs. Dec-25 Dec-25 Sep-25 Sep-25 Dec-24 Dec-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other
Slide 22: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended December 31, 2025 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gains
Slide 23: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended September 30, 2025 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gain
Slide 24: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended December 31, 2024 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and other Basis
Slide 25: Illustrative 2026 Adjusted Operating Expense Bridge Assumptions
Illustrative 2026 Adjusted Operating Expense Bridge Assumptions • Assumes all expenses not specifically identified in the graph remain unchanged in aggregate. All estimates assume no market changes after December 31, 2025. Excludes performance fee incentive compensation and performance fee related t