T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Q2 2025 Earnings Presentation
21 slides from T. Rowe Price's earnings presentation, Aug 1, 2025
Slide 1: Q2 2025 Earnings Release Supplement
Q2 2025 Earnings Release Supplement T. Rowe Price Group, Inc. August 1, 2025 A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of June 30, 2025, unless otherwise noted. All figures are USD, unless otherwise noted.
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation, and other statements that T. Rowe Price may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to T. Rowe Price’s future financial or business performance, strategies, or expectati
Slide 3: Financial Highlights
Financial Highlights Key Metrics Q2 2024 Q1 2025 Q2 2025 AUM, Flows, & Investment Advisory Effective Fee Rate (EFR) Net Flows ($3.7B) ($8.6B) ($14.9B) Assets Under Management (AUM)1 $1.57T $1.57T $1.68T Average AUM $1.53T $1.62T $1.59T EFR without Performance-Based Fees 41.1 bps 40.0 bps 39.6 bps EF
Slide 4: Investment Performance Overview
Investment Performance Overview As of June 30, 2025 % of Funds/ U.S. Funds Outperforming Morningstar U.S. Funds Outperforming Morningstar Passive Composites Outperforming Composites Median1,2 Peer Median1,3 Benchmarks4 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years 1 year 3 years 5
Slide 5: Assets Under Management
Assets Under Management U.S. $ billions $1,688 $1,677 $1,607 $1,471 $1,445 $1,275 $1,207 Ending AUM $991 $962 $811 $747 $763 $692 $577 $482 $489 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Jun 2025 Market Change +60.4 -6.6 +70.1 +127.6 +50.7 +14.7 +50.5 +166.3 -42.0 +2
Slide 6: Assets Under Management and Net Flows
Assets Under Management and Net Flows U.S. $ billions Assets Under Management Asset Class Client Type Geography As of June 30, 2025 Assets Under Management Assets Under Management Assets Under Management ▪ Retirement assets are 66% of AUM1 $52 $53 $55 $50 $53 $141 $145 $135 $142 $137 ▪ U.S. defined
Slide 7: Quarterly Net Revenues
Quarterly Net Revenues U.S. $ millions Q2 2025 compared to Q2 2024 ▪ Investment advisory fees $(10.0) / (0.6)% represent over 90% of $1,733.3 $9.5 $2.1 $1,723.3 ($1.2) ($10.4) net revenue in the ($10.0) periods presented ▪ Q2 2025 investment advisory revenue was Q2 2024 Investment Performance- CABI
Slide 8: Quarterly Adjusted Operating Expenses
Quarterly Adjusted Operating Expenses U.S. $ millions Q2 2025 compared to Q2 2024 Basis for Operating $41.4 / 3.7% Expense Guidance $1,105.8 $13.0 $4.8 $4.8 $1.8 $18.5 $1.9 $1,147.2 U.S. $ millions ($3.4) Six months ended Change 6/30/2025 6/30/2024 (%) Adjusted Operating $2,282.3 $2,177.2 4.8% Expen
Slide 9: Quarterly Operating Income and Net Income
Quarterly Operating Income and Net Income U.S. $ millions, (except EPS) Operating Income Net Income U.S. Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 U.S. Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 GAAP GAAP Operating Income $564.7 $613.6 $568.4 $596.3 $478.3 Net Income $483.4 $603.0 $439.9 $490.5 $505.2 Op
Slide 10: Capital Management
Capital Management U.S. $ millions Capital Returned to Stockholders Cash and Investments1 Data through June 30, 2025 $4,635 Q2 2024 Q4 2024 Q2 2025 — Cash and Cash Equivalents $2,714.9 $2,649.8 $3,058.9 1,251 Share Repurchases Discretionary Investments $469.7 $457.1 $749.6 Cash and Discretionary Inv
Slide 11: Quarterly Capital Allocation-Based Income
Quarterly Capital Allocation-Based Income (carried interest) U.S. $ millions, unless otherwise noted Investments in affiliated private investment funds—carried interest ▪ As of June 30, 2025, $20B of alternatives fee-basis assets CABI ($0.4) under management are eligible $36.5 $382.6 $371.3 to earn
Slide 12: Appendix
Appendix
Slide 13: Assets Under Management by Account Type
Assets Under Management – by Account Type U.S. $ billions 2022 2023 2024 Jun-25 Full-service recordkeeping and plan administration U.S. Defined Contribution – services provided to: $410.2 $486.2 $565.2 $598.0 Investment only U.S. Retirement Plan Sponsors - ▪ $302 billion in assets 132.4 141.2 154.2
Slide 14: ETFs and Assets under Advisement
ETFs and Assets under Advisement (AUA) In billions ETF AUM and Flows Assets Under Advisement $16.2 Managed Accounts – $33.5 AUM model delivery Multi-Asset Solutions $8.7 $16.4 $11.6 $8.2 $8.0 $2.5 $0.6 $0.8 2021 2022 2023 2024 Jun-25 2021 2022 2023 2024 Jun-25 Net $0.4 $0.4 $1.4 $5.4 $6.7 Flows ETF
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 16: Reconciliation of U.S. GAAP Results to Non-GAAP Results
Non-GAAP Net Revenues and Operating Income Reconciliation U.S. $ millions Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net Revenues, GAAP Basis $1,733.3 $1,785.6 $1,824.5 $1,763.9 $1,723.3 Non-GAAP Adjustments1: Consolidated Investment Products 0.5 1.3 0.6 1.4 1.4 Investment Amortization and Impairments
Slide 17: Reconciliation of U.S. GAAP Results to Non-GAAP Results
Reconciliation of U.S. GAAP Results to Non-GAAP Results Three months ended June 30, 2025 Deferred Acquistion-Related Compensation Consolidated Other Non-Operating (in US$ millions, except per share numbers) U.S. GAAP Costs Liabitilies Investment Products Income Non-GAAP Revenues Investment advisory
Slide 18: Reconciliation of U.S. GAAP Results to Non-GAAP Results
Reconciliation of U.S. GAAP Results to Non-GAAP Results Three months ended March 31, 2025 Deferred Acquistion-Related Compensation Consolidated Other Non-Operating (in US$ millions, except per share numbers) U.S. GAAP Costs Liabitilies Investment Products Income Non-GAAP Revenues Investment advisory
Slide 19: Reconciliation of U.S. GAAP Results to Non-GAAP Results
Reconciliation of U.S. GAAP Results to Non-GAAP Results Three months ended June 30, 2024 Deferred Acquistion-Related Compensation Consolidated Other Non-Operating (in US$ millions, except per share numbers) U.S. GAAP Costs Liabitilies Investment Products Income Non-GAAP Revenues Investment advisory
Slide 20: Additional Information
Additional Information Figures may not total due to rounding. Investment performance overview (slide 4) 1 Source: © 2025 Morningstar, Inc. All rights reserved. The information contained herein: 1) is proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; and 3)
Slide 21: Important Information
Important Information Referenced in the earnings call: Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. The Fund Manager of the Year award wi