Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q3 2025 Earnings Presentation
23 slides from Franklin Resources's earnings presentation, Aug 1, 2025
Slide 1: Franklin Resources, Inc. Third Quarter 2025 Results
Franklin Resources, Inc. Third Quarter 2025 Results August 1, 2025 | Investor Presentation Jenny Johnson Matthew Nicholls Adam Spector President Executive Vice President Executive Vice President Chief Executive Officer Chief Financial Officer Head of Global Distribution Chief Operating Officer
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: Third Quarter 2025 Business Highlights
Third Quarter 2025 Business Highlights • Ending AUM of $1.61 trillion; average AUM of $1.57 trillion • Long-term net outflows of $9.3 billion compared to $26.2 billion in prior quarter AUM and Flow – Excluding Western Asset Management (“Western”), long-term net inflows were $7.8 billion (7th Trends
Slide 4: Third Quarter 2025 Financial Summary
Third Quarter 2025 Financial Summary1 Key metrics (in US$ millions, except AUM in billions and per share data) Q3 2025 Q2 2025 Q3 2024 2 Ending AUM $ 1,611.8 $ 1,540.6 $ 1,646.6 Average AUM2 1,565.2 1,570.5 1,632.6 Adj. revenue 1,593.2 1,610.2 1,654.1 Adj. operating income 377.8 377.2 424.9 Adj. net
Slide 5: Third Quarter 2025 AUM and Investment Performance
Third Quarter 2025 AUM and Investment Performance
Slide 6: Diversification by Asset Class, Client Type, Region, and Specialist Investment Manager
Diversification by Asset Class, Client Type, Region, and Specialist Investment Manager (“SIM”) AUM by asset class, client type, and region Q3 Adjusted Operating Revenue by SIM AUM of $1.61 trillion as of June 30, 2025 As of June 30, 2025 Cash 5% HNW 3% 11% Americas 7% Multi-Asset 20% 11% APAC 11% Al
Slide 7: Investment Performance Summary
Investment Performance Summary Percentage of AUM above peer median and benchmark1 As of June 30, 2025 63% 61% 57% 56% 53% 53% 44% 45% 1-year 3-year 5-year 10-year Mutual funds vs. peers Strategy composites vs. benchmark • Mutual Funds: Compared to the prior quarter, investment performance increased
Slide 8: AUM and Flows
AUM and Flows1 (in US$ billions, for the three months ended) Total AUM: $1.61 trillion 96.9 86.8 82.7 82.5 75.6 3.6 3.2 20.1 3.3 3.9 17.9 3.3 5.7 7.4 7.8 (3.2) (9.3) (31.3) (26.2) (50.0) (85.9) (84.9) (113.8) (113.0) (146.9) Jun-24 Sep-24 Dec-24 2 Mar-25 Jun-25 Long-term Long-term Long-term net Ex-W
Slide 9: AUM and Flows
AUM and Flows (in US$ billions, for the three months ended) Equity: $657 billion Fixed Income: $442 billion 55.9 36.8 38.9 32.0 37.4 33.0 32.0 26.4 26.5 28.2 12.5 2.8 0.8 1.7 1.4 0.3 3.5 (1.6) (5.4) (0.6) (4.8) (13.0) (33.6) (36.0) (32.6) (30.5) (43.4) (44.3) (42.2) (33.9) (41.2) (57.0) (66.9) (66.7
Slide 10: AUM and Flows
AUM and Flows (in US$ billions, for the three months ended) Alternative: $258 billion Multi-Asset: $183 billion 8.5 12.9 11.2 9.9 9.8 6.6 5.6 8.7 4.0 3.4 6.4 3.4 1.7 3.1 2.8 3.4 3.3 1.4 1.8 1.8 1.4 0.8 2.5 0.7 (2.0) (1.0) (2.1) (2.6) (3.1) (5.0) (5.9) (8.1) (7.8) (8.0) (9.6) 1 2 Jun-24 Sep-24 Dec-24
Slide 11: Third Quarter 2025 Financial Results
Third Quarter 2025 Financial Results
Slide 12: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) 2 2 US GAAP Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 US GAAP Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Operating 222.5 (150.7) 219.0 145.6 154.1 Net Income 174.0 (84.7) 163.6 151.4 92.3 Income Operating 10.5%
Slide 13: Financial Results
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted operating revenue and effective fee rate2 Adjusted operating expenses 37.5 37.4 37.2 38.3 37.5 1,654 1,717 1,683 1,610 1,593 1,229 1,265 1,270 1,233 1,215 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Adj Opera
Slide 14: 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 June 30, 2025) (In US$ millions, as of June 30, 2025) 6.8 360 274 276 221 220 3.3 682 850 656 671 677 686 0.4 3.1 550 4
Slide 15: Appendix
Appendix
Slide 16: AUM and Flows
AUM and Flows June 30, Mar 31, June 30, 1 (In US$ billions) 2025 2025 % Change 2024 % Change Beginning AUM $1,540.6 $1,575.7 (2.2%) $1,644.7 (6.3%) Long-term inflows 75.6 86.8 (12.9%) 82.7 (8.6%) Long-term outflows (84.9) (113.0) (24.9%) (85.9) (1.2%) Long-term net flows (9.3) (26.2) (64.5%) (3.2) N
Slide 17: Alternative AUM Roll Forward
Alternative AUM Roll Forward (in US$ billions) Three months ended June 30, 2025 Private Markets1 Liquid & Other Total Beginning Balance $231.1 $20.7 $251.8 Fundraising1 5.3 0.9 6.2 Outflows (1.9) (1.2) (3.2) Realizations & distributions2 (2.9) (0.1) (3.0) Net market change, FX, other 6.0 0.5 6.5 End
Slide 18: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Revenues1 Jun-25 Jun-25 Adjusted vs. Adjusted vs. Jun-25 Jun-25 Mar-25 Mar-25 Jun-24 Jun-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,580.2
Slide 19: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Jun-25 Jun-25 Expenses1 Adjusted vs. Adjusted vs. Jun-25 Jun-25 Mar-25 Mar-25 Jun-24 Jun-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 901.1 (91.2) 80
Slide 20: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Other Income (Expense), Net1 Jun-25 Jun-25 Adjusted vs. Adjusted vs. 2 Jun-25 Jun-25 Mar-25 Mar-25 Jun-24 Jun-24 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and oth
Slide 21: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended June 30, 2025 Sales, Consolidated Special Unrealized Deferred Tax Expense US GAAP distribution Acquisition- Non-GAAP (in US$ millions except per share data) Investment Termination investment Comp Plan of Basis and related Basis
Slide 22: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended March 31, 2025 Sales, Consolidated Special Unrealized Deferred Tax Expense US GAAP distribution Acquisition- Non-GAAP (in US$ millions except per share data) Investment Termination investment Comp Plan of Basis and related Basi
Slide 23: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended June 30, 2024 Consolidated Sales, Special Unrealized US GAAP Acquisition- Deferred Comp Tax Expense of Non-GAAP (in US$ millions except per share data) Investment distribution and Termination investment Basis related Plan and o