Franklin Resources (BEN) Q1 2025

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Earnings

Franklin Resources delivered a mixed fiscal first quarter, beating on earnings while falling short on revenue, as the ongoing crisis at Western Asset Management continued to cast a long shadow over the firm's results. Adjusted diluted EPS of $0.59 cl… Read more Franklin Resources delivered a mixed fiscal first quarter, beating on earnings while falling short on revenue, as the ongoing crisis at Western Asset Management continued to cast a long shadow over the firm's results. Adjusted diluted EPS of $0.59 cleared the $0.53 consensus estimate by 11.49%, yet revenue of $2.25 billion trailed expectations by 9.59%, even as the top line grew 13.1% year over year on higher average AUM levels. The dominant pressure point was Western Asset, whose severe client redemptions drove $67.90 trillion in long-term net outflows from that unit alone, pushing total firm long-term net outflows to $50.00 billion for the quarter and pulling total AUM down to $1.58 trillion; reports indicate WAMCO has shed roughly $120 billion since August, with $17 billion leaving in January alone. CEO Jenny Johnson acknowledged the challenge and outlined plans to integrate select Western Asset corporate functions while preserving investment team independence. The firm's institutional pipeline of won-but-unfunded mandates grew to $18.10 billion, offering some basis for optimism heading into the next quarter.