Fri, May 2, 12:46 PM (14 days ago)
**Franklin Resources, Inc. (BEN) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total operating revenues were $2,111.4 million for Q1 2025, a 2% decrease from Q1 2024. For the six months ended March 31, 2025, revenues were $4,363.0 million, a 5% increase from the same period in 2024. - **Profit Margins:** Operating income was $145.6 million for Q1 2025, a 13% increase from Q1 2024. For the six months ended March 31, 2025, operating income was $364.6 million, a 9% increase from the same period in 2024. - **Net Income:** Net income attributable to Franklin Resources, Inc. was $151.4 million for Q1 2025, a 22% increase from Q1 2024. For the six months ended March 31, 2025, net income was $315.0 million, a 16% decrease from the same period in 2024. - **Earnings per Share (EPS):** Diluted EPS was $0.26 for Q1 2025, a 13% increase from Q1 2024. For the six months ended March 31, 2025, diluted EPS was $0.55, a 23% decrease from the same period in 2024. **Cash Flow:** - **Operating Cash Flow:** Net cash used in operating activities was $195.3 million for the six months ended March 31, 2025, an increase from $115.3 million in the same period in 2024. - **Investing Cash Flow:** Net cash used in investing activities was $1,020.6 million for the six months ended March 31, 2025, an increase from $410.8 million in the same period in 2024. - **Financing Cash Flow:** Net cash provided by financing activities was $380.3 million for the six months ended March 31, 2025, an increase from $232.1 million in the same period in 2024. **Assets Under Management (AUM):** - **AUM:** Total AUM was $1,540.6 billion as of March 31, 2025, an 8% decrease from September 30, 2024, and a 6% decrease from March 31, 2024. - **AUM by Asset Class:** Equity AUM was $598.1 billion, fixed income AUM was $446.0 billion, alternative AUM was $251.8 billion, multi-asset AUM was $175.8 billion, and cash management AUM was $68.9 billion. **Operational Trends & Uncertainties:** - **Market Performance:** Global equity markets provided mixed results, with U.S. markets declining due to trade tariffs and economic policy uncertainties. European and emerging markets produced gains. - **Investment Performance:** The company's investment products showed varied performance, with a focus on long-term investment performance. - **Legal & Regulatory:** The company is involved in several legal proceedings, including investigations into trade allocations of treasury derivatives and blockchain litigation. - **Future Operations:** The company plans to invest in business growth, pay dividends, enhance technology infrastructure, and repurchase shares. They also expect to continue paying regular dividends and repurchasing shares opportunistically. **Financial Ratios & Metrics:** - **Operating Margin:** 6.9% for Q1 2025, compared to 6.0% for Q1 2024. For the six months ended March 31, 2025, the operating margin was 8.4%, compared to 8.1% for the same period in 2024. - **Effective Tax Rate:** 72.8% for Q1 2025, compared to 26.4% for Q1 2024. For the six months ended March 31, 2025, the effective tax rate was 31.5%, compared to 24.2% for the same period in 2024.