Cohen & Steers Inc

Cohen & Steers delivered a mixed second quarter for 2025, posting adjusted diluted EPS of $0.73 against a consensus estimate of $0.76, a miss of 3.31%, even as revenue of $136.13 million edged past expectations by 0.47% and climbed 7.4% year-over-year. The earnings shortfall traced primarily to a surge in operating expenses, which rose 4.0% sequentially to $92.80 million, well ahead of the 1.2% quarter-over-quarter revenue gain, compressing adjusted operating margin by 180 basis points to 33.6%. Higher compensation costs, including accelerated restricted stock vesting tied to employee retirements, along with elevated talent acquisition and business development spending, were the key culprits. Assets under management climbed 10.2% from a year ago to $88.94 billion, supported by $2.25 billion in market appreciation, though net outflows of $131.00 million partially tempered the gain. Preferred securities strategies saw the sharpest redemption pressure, with $480.00 million in net outflows, while global listed infrastructure AUM grew 19.0% year-over-year to $10.05 billion, signaling continued investor appetite for that strategy.