Franklin Resources Q1 Earnings Show Slight Revenue Dip

TL;DR

FRANKLIN RESOURCES Q1 REVENUE DOWN SLIGHTLY, ADVISORY FEES $590M VS $593M YOY.

AI Summary

Franklin Resources Inc. reported its Q1 2025 results for the period ending December 31, 2024. The company's revenue from Investment Advisory, Management and Administrative Services for Q1 2025 was $590 million, a slight decrease from $593 million in Q1 2024. Sales and Distribution Fees also saw a decrease from $101 million in Q1 2024 to $98 million in Q1 2025.

Why It Matters

This filing provides insight into the financial performance of Franklin Resources, a major investment management company, impacting investor confidence and market perception.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediately apparent significant negative events.

Key Numbers

• $590M — Q1 2025 Investment Advisory Revenue (Represents the primary revenue stream for the company.)
• $98M — Q1 2025 Sales and Distribution Fees (Indicates revenue generated from selling investment products.)
• $593M — Q1 2024 Investment Advisory Revenue (Provides a year-over-year comparison point for advisory fees.)
• $101M — Q1 2024 Sales and Distribution Fees (Provides a year-over-year comparison point for sales fees.)

Key Players & Entities

• FRANKLIN RESOURCES INC (company) — Filer
• 2024-12-31 (date) — Period End Date
• $590 million (dollar_amount) — Q1 2025 Investment Advisory, Management and Administrative Services Revenue
• $593 million (dollar_amount) — Q1 2024 Investment Advisory, Management and Administrative Services Revenue
• $98 million (dollar_amount) — Q1 2025 Sales and Distribution Fees
• $101 million (dollar_amount) — Q1 2024 Sales and Distribution Fees

FAQ

Key Financial Figures

• $0.10 — ich registered Common Stock, par value $0.10 per share BEN New York Stock Exchange

Filing Documents

• ben-20241231.htm (10-Q) — 1540KB
• exhibit311q1fy25.htm (EX-31) — 11KB
• exhibit312q1fy25.htm (EX-31) — 11KB
• exhibit321q1fy25.htm (EX-32) — 6KB
• exhibit322q1fy25.htm (EX-32) — 7KB
• 0000038777-25-000017.txt ( ) — 7370KB
• ben-20241231.xsd (EX-101.SCH) — 40KB
• ben-20241231_cal.xml (EX-101.CAL) — 51KB
• ben-20241231_def.xml (EX-101.DEF) — 256KB
• ben-20241231_lab.xml (EX-101.LAB) — 513KB
• ben-20241231_pre.xml (EX-101.PRE) — 423KB
• ben-20241231_htm.xml (XML) — 1229KB

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Consolidated Statements of Income 3 Consolidated Statements of Comprehensive Income 4 Consolidated Balance Sheets 5 Consolidated Statements of Stockholders' Equity 6 Consolidated Statements of Cash Flows 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 37 PART II Other Information

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 38 Exhibit Index 39

Signatures

Signatures 40 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF INCOME Unaudited Three Months Ended December 31, (in millions, except per share data) 2024 2023 Operating Revenues Investment management fees $ 1,799.3 $ 1,652.2 Sales and distribution fees 375.5 296.4 Shareholder servicing fees 63.5 32.5 Other 13.3 10.0 Total operating revenues 2,251.6 1,991.1 Operating Expenses Compensation and benefits 991.4 968.3 Sales, distribution and marketing 512.3 400.8 Information systems and technology 156.0 131.0 Occupancy 75.1 66.7 Amortization of intangible assets 112.6 85.8 General, administrative and other 185.2 132.0 Total operating expenses 2,032.6 1,784.6 Operating Income 219.0 206.5 Other Income (Expenses) Investment and other income, net 10.5 173.2 Interest expense ( 23.1 ) ( 18.8 ) Investment and other income (losses) of consolidated investment products, net 114.1 ( 23.8 ) Expenses of consolidated investment products ( 7.3 ) ( 5.9 ) Other income, net 94.2 124.7 Income before taxes 313.2 331.2 Taxes on income 81.1 74.9 Net income 232.1 256.3 Less: net income (loss) attributable to Redeemable noncontrolling interests 49.6 9.5 Nonredeemable noncontrolling interests 18.9 ( 4.5 ) Net Income Attributable to Franklin Resources, Inc. $ 163.6 $ 251.3 Earnings per Share Basic $ 0.29 $ 0.50 Diluted 0.29 0.50 See Notes to Consolidated Financial Statements. 3 Table of Contents FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited (in millions) Three Months Ended December 31, 2024 2023 Net Income $ 232.1 $ 256.3 Other Comprehensive Income (Loss) Currency translation adjustments, net of tax ( 105.1 ) 59.1 Net unrealized gains (losses) on defined benefit plans, net of tax 0.3 ( 0.1 ) Total other comprehensive income (loss) ( 104.8 ) 59.0 Total comprehensive income 127.3 315.3 Less: comprehensive income (loss) attributable to Redeemable noncontrolling interests 49.6 9.5 N

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 (Unaudited) Note 1 – Basis of Presentation The unaudited interim financial statements of Franklin Resources, Inc. ("Franklin") and its consolidated subsidiaries (collectively, the "Company") included herein have been prepared in accordance with the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Under these rules and regulations, some information and footnote disclosures normally included in financial statements prepared under accounting principles generally accepted in the United States of America have been shortened or omitted. Management believes that all adjustments necessary for a fair statement of the financial position and the results of operations for the periods shown have been made. All adjustments are normal and recurring. Management also believes that the accounting estimates are appropriate, and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual amounts may differ from these estimates. These financial statements should be read together with the Company's audited financial statements included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2024 ("fiscal year 2024"). Note 2 – New Accounting Guidance Accounting Guidance Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued an amendment to the existing segment reporting guidance. The amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision makerby reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance. The Company will adopt the annual disclosures in its Annual Report on Form 10-K for the fiscal year ending September 30, 2025 and interim disclosure in its Quarterly report on Form 10-Q

View Full Filing

View this 10-Q filing on SEC EDGAR