Franklin Resources

Franklin Resources (BEN) Q3 2025 Earnings

Reported Aug 1, 2025 at 8:43 AM ET · SEC Source

Q3 25 EPS

$0.49

MISS 2.39%

Est. $0.50

Q3 25 Revenue

$2.06B

MISS 1.10%

Est. $2.09B

vs S&P Since Q3 25

+24.7%

BEATING MARKET

BEN +44.8% vs S&P +20.1%

Market Reaction

Did BEN Beat Earnings? Q3 2025 Results

Franklin Resources delivered a mixed fiscal third quarter, falling short on both top and bottom lines as softening revenues and rising costs weighed on results. The asset management giant posted adjusted earnings of $0.49 per diluted share, missing t… Read more Franklin Resources delivered a mixed fiscal third quarter, falling short on both top and bottom lines as softening revenues and rising costs weighed on results. The asset management giant posted adjusted earnings of $0.49 per diluted share, missing the $0.50 consensus estimate by 2.39%, while revenue of $2.06 billion trailed expectations by 1.10% and slipped 2.8% from a year ago. The headline disappointment masked some underlying momentum: GAAP net income tumbled 47% year-over-year to $92.30 million, pressured by a 34% surge in intangible asset amortization to $112.20 million and sharply lower investment income, compressing the GAAP operating margin to 7.5% from 10.5%. Yet total AUM climbed 5% during the quarter to $1.61 trillion, buoyed by $78.00 billion in positive net market change, and long-term net outflows narrowed dramatically to $9.30 billion from $26.20 billion last quarter. Management pointed to a record institutional pipeline of $24.40 billion in won-but-unfunded mandates and the pending acquisition of European private credit firm Apera Asset Management as evidence the firm's diversified platform is gaining traction with clients navigating volatile markets.

Key Takeaways

  • Long-term net outflows improved significantly to $9.3 billion from $26.2 billion last quarter
  • Excluding Western Asset Management, long-term net inflows of $7.8 billion for seventh consecutive quarter
  • Positive net market change, distributions, and other of $78.0 billion drove AUM increase
  • ETF platform attracted $4.3 billion in net flows, 15th consecutive quarter of positive net flows
  • Canvas custom indexing AUM grew 20% sequentially to $13.7 billion
  • Alternatives fundraising of $6.2 billion in the quarter, $5.3 billion in private markets
  • Institutional pipeline of won-but-unfunded mandates rose to record $24.4 billion
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BEN YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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BEN Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q2 26
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BEN Revenue by Geography

Regional revenue distribution

“As investors navigate today's complex market and geopolitical landscape, we remain committed to being a trusted partner to our clients, offering solutions across public and private markets. This quarter, we saw progress across asset classes, investment vehicles and geographies, highlighting the strength of our diversified global platform. Long-term net outflows were $9.3 billion, a significant improvement from last quarter, and excluding Western Asset Management, long-term net inflows were $7.8 billion, the seventh consecutive quarter of positive net flows. Our institutional pipeline of won-but-unfunded mandates rose by net $4 billion to a record $24.4 billion, reflecting strong client demand across all asset classes.”

— Jenny Johnson, Q3 2025 Earnings Press Release