T Rowe Price : Earning Release Supplement Q1 2025 FINAL

Published: 2025-05-02 08:39:55 ET TROW

Published on 05/02/2025 at 08:39

Q1 2025

T. Rowe Price Group, Inc. May 2, 2025

A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of March 31, 2025, unless otherwise noted.

All figures are USD, unless otherwise noted.

Financial Highlights

Key Metric

Q1 2024

Q4 2024

Q1 2025

AUM, Flows, & Investment Advisory Effective Fee Rate (EFR)

Net Flows

($8.0B)

($19.3B)

($8.6B)

Assets Under Management (AUM)1

$1.54T

$1.61T

$1.57T

Average AUM

$1.48T

$1.64T

$1.62T

EFR without Performance-Based Fees

41.6 bps

40.5 bps

40.0 bps

EFR with Performance-Based Fees

42.1 bps

40.9 bps

40.3 bps

GAAP Basis

Net Revenues

$1,750.2M

$1,824.5M

$1,763.9M

Operating Expenses

$1,163.6M

$1,256.1M

$1,167.6M

Diluted Earnings per Share (EPS)

$2.49

$1.92

$2.15

Non-GAAP Basis

Adjusted Operating Expenses2

$1,071.4M

$1,222.6M

$1,135.1M

Adjusted EPS2

$2.38

$2.12

$2.23

Dividends

Dividend per share

$1.24

$1.27

The financial results presented in this earnings release supplement are unaudited.

1Firmwide AUM includes assets managed by T. Rowe Price Associates, Inc., and its investment advisory affiliates.

2For the reconciliation between GAAP and adjusted (non-GAAP) expenses and EPS, see the current earnings release.

As of March 31, 2025

% of Funds/ Composites

U.S. Funds Outperforming Morningstar Median1,2

U.S. Funds Outperforming Morningstar Passive Peer Median1,3

Composites Outperforming Benchmarks4

1 year

3 years

5 years

10 years

1 year

3 years

5 years

10 years

1 year

3 years

5 years

10 years

Equity

56%

57%

58%

67%

37%

53%

55%

50%

22%

40%

34%

58%

Fixed Income

64%

50%

65%

62%

55%

52%

77%

62%

59%

39%

68%

75%

Multi-Asset

62%

75%

72%

76%

16%

63%

71%

55%

All

61%

65%

68%

34%

56%

66%

55%

38%

39%

48%

64%

% of AUM

U.S. Funds Outperforming Morningstar Median1,2

U.S. Funds Outperforming Morningstar Passive Peer Median1,3

Composites Outperforming Benchmarks4

1 year

3 years

5 years

10 years

1 year

3 years

5 years

10 years

1 year

3 years

5 years

10 years

Equity

69%

60%

86%

41%

50%

39%

49%

24%

41%

35%

48%

Fixed Income

74%

62%

72%

79%

53%

57%

92%

73%

72%

35%

71%

54%

Multi-Asset

34%

91%

92%

94%

91%

95%

94%

All

61%

73%

68%

87%

34%

60%

57%

61%

33%

40%

41%

49%

Past performance is not a guarantee nor a reliable indicator of future results.

The investment performance reflects that of the T. Rowe Price-sponsored mutual funds, ETFs, and composites.

2Primary share class only. Excludes T. Rowe Price passive funds, funds that are clones of other funds, and fund categories not ranked by Morningstar.

3Primary share class only. Excludes T. Rowe Price passive funds and funds that are clones of other funds. Funds are measured against the most appropriate strategy benchmark used for portfolio manager evaluation, which may not always be the regulatory benchmark.

4Net returns for composites are calculated using the highest applicable separate account fee schedule and compared to official GIPS composite primary benchmark. Excludes money market composites.

U.S. $ billions

$1,607

$1,566

$1,471

$1,445

$1,207

$1,275

$991

$962

$692

$747

$763

$811

$577

$482

$489

Ending AUM

$1,688

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Mar 2025

+60.4

-6.6

+70.1

+127.6

+50.7

+14.7

+50.5

+166.3

-42.0

+231.3

+256.9

+198.9

-351.4

+251.6

+205.3

-31.7

+30.3

+14.1

+17.2

-12.0

+3.7

+1.6

-2.8

+14.0

+13.2

+5.6

-28.5

-61.7

-81.8

-43.2

-8.6

Market Change

($B)

Net Flows

($B)

Firmwide AUM includes assets managed by T. Rowe Price Associates, Inc., and its investment advisory affiliates.

OHA's fee-basis AUM of $46.9B acquired on December 29, 2021, is reflected in 2021 ending AUM. All periods after 2021 reflect the related activity. Other acquisition of AUM is detailed in our quarterly releases and 10Qs. Distributions, net of reinvestments, are included in the market change figure. Manager-driven distributions related to our alternative products by year: 2022: $2.6B, 2023: $2.6B, 2024: $3.7B, YTD 2025: $0.7B

U.S. $ billions

Asset Class Client Type Geography

Assets Under Management Assets Under Management Assets Under Management

Assets Under Management

As of March 31, 2025

Retirement assets are 66% of AUM1

Alts Multi-Asset

Fixed Income

Equity

$48 $50

$52

$53

Inst.

Retail

APAC, EMEA,

Canada

U.S.

U.S. defined contribution AUM of

$713B

Target date AUM of $484B

Alternative AUM includes private markets ($20B), CLOs ($20B), and liquid strategies ($13B)

$17.1B in unfunded capital

$666 $640

$926

$941

$695

$936

$675

$866 $894

$676

$1,429

$137

$1,465

$142

$1,490

$141

$1,412 $1,434

$131 $135

$773

$196

$830

$188

$832

$186

$810

$171 $180

$803

$544

$536

$561

$521 $529

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Q1'24

Q1'25

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

commitments compared to $16.2B at December 31, 2024

Q4'24

Q2'24 Q3'24

Net Flows Net Flows

Net Flows

Q1 2025

Outflows largely concentrated in U.S. equities

Target date inflows of $6.3B in Q1 2025

Alternatives flows are net of $0.7B in

$ (12.8)

$ (14.9)

$ (16.1)

$ (8.2)

$ (19.2)

0.2

7.8

1.1

3.5

5.4

5.5

1.6

1.9

(15.5)

5.5

(0.9)

1.8

0.9

(0.3)

$ (5.9)

$ (5.2)

$ (13.1)

$ (20.2)

$ (8.0)

(2.1)

1.5

0.9

(0.6)

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

manager-driven distributions

Equity FI

Alts

Inst. Retail

U.S.

$ (0.5)

$ 7.6

$ (2.2)

$ 4.9

$ (1.7)

(7.5)

(11.3)

(10.0)

(24.2)

(6.9)

APAC, EMEA,

Canada

Firmwide flows by quarter ($B)

Q1'24

Q2'24

Q3'24

Q4'24

Q1'25

(8.0)

(3.7)

(12.2)

(19.3)

(8.6)

Firmwide AUM includes assets managed by T. Rowe Price Associates, Inc., and its investment advisory affiliates.

Institutional includes defined contribution assets, including assets sourced from intermediaries and the firm's full-service recordkeeping business. Retail includes our direct-marketed business and financial intermediaries

Unfunded capital commitments will transition to fee basis assets under management or assets under advisement as capital is called and deployed.

1See page 15 for further details on retirement assets.

U.S. $ millions

Q1 2025 compared to Q1 2024

$62.0

$13.7 / 0.8%

Investment advisory fees represent about 90% of

$1,750.2

($7.2)

($50.3)

$2.0 $7.2

$1,763.9

net revenue in the periods presented

Q1 2025 investment advisory revenue was

Q1 2024 Investment Advisory Fees

Performance-Based Advisory Fees

CABI

(Change in Accrued Carried Interest)

CABI

(Amortization & Impairment)

Administrative, Distribution, Services & Other

Q1 2025

$1,598.4M

CABI (change in accrued

Q1 2025 compared to Q4 2024

$1,824.5

($60.6) / (3.3)%

$7.3 $13.1

$1,763.9

carried interest) was $9M

in Q1 2025 compared to

$60M in Q1 2024 and

$13M in Q4 2024

($68.8) ($8.9) ($3.3)

Q4 2024 Investment Advisory Fees

Capital allocation-based income (CABI)

Performance-Based Advisory Fees

CABI

(Change in Accrued Carried Interest)

CABI

(Amortization & Impairment)

Administrative, Distribution, Services & Other

Q1 2025

U.S. $ millions

Q1 2025 compared to Q1 2024

$63.7 / 5.9%

Basis for Operating Expense Guidance

$1,071.4

$28.6

($14.6)

$11.7

$0.8 $8.8 $17.7 $10.7

$1,135.1

U.S. $ millions

Adjusted Operating Expenses

Three months ended 3/31/2025 3/31/2024 Change

(%)

$1,135.1 $1,071.4 5.9%

Q1 2024 Compensation

CABI

Distribution

Ad/Promo Product &

Tech, Occ, &

G&A&Other Q1 2025

Adjusted CABI Compensation

(3.9) (18.5) n/m

& Related Compensation & Servicing

Q1 2025 compared to Q4 2024

Recordkeeping

($87.5) / (7.2)%

Facility

Adjusted Operating Expenses, ex CABI

Compensation

$1,131.2 $1,052.9 7.4%

$1,222.6

($47.5)

$- $0.7

($24.1)

$9.3

($1.7) ($24.2)

$1,135.1

Q4 2024 Compensation

CABI

Distribution

Ad/Promo Product &

Tech, Occ, &

G&A&Other Q1 2025

& Related

Compensation

& Servicing

Recordkeeping

Facility

For the reconciliation between GAAP and adjusted (non-GAAP) expenses, see the current earnings release.

Capital allocation-based income (CABI) compensation represents the portion of CABI (carried interest) that is passed through to certain associates as compensation.

U.S. $ millions, (except EPS)

U.S. Q1 2024

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Operating $586.6

$564.7

$613.6

$568.4

$596.3

Operating 33.5%

32.6%

34.4%

31.2%

33.8%

GAAP

Income Margin1

U.S. Q1 2024

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Net Income $573.8

$483.4

$603.0

$439.9

$490.5

Diluted $2.49

$2.11

$2.64

$1.92

$2.15

GAAP

EPS

Adjusted Operating Margin1

39.3%

39.5%

Adjusted EPS

$2.38 $2.26

$2.57

$548.5

$519.7

$484.8

$509.3

$586.5

$2.12 $2.23

Adjusted Operating Income

Adjusted Net Income

37.2%

36.1%

$692.4

$718.4

$654.9

33.7%

$620.2

$640.6

Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025

1Operating margin is equal to operating income divided by net revenues; adjusted operating margin is equal to adjusted operating income divided by adjusted net revenues. See the GAAP to adjusted (non-GAAP) operating income and operating margin reconciliation on page 13.

For the reconciliation between GAAP and adjusted (non-GAAP) net income and EPS, see the current earnings release.

U.S. $ millions

Cash and Investments1

Q1 2024

Q4 2024

Q1 2025

Cash and Cash Equivalents

$2,416.5

$2,649.8

$2,836.7

Discretionary Investments

$477.5

$457.1

$460.4

Cash and Discretionary Investments

$2,894.0

$3,106.9

$3,297.1

Redeemable Seed Capital

$1,418.7

$1,262.3

$1,331.9

Data through 3/31/2025

$1,611

$4,717

Share Repurchases

Dividends

$506

$929.0 $1,110.9 $1,054.4

Investments used to Hedge Deferred Compensation Liabilities

- 472

3,375

1,139

289

1,341

218

Q1 2025 Last 12 months Last 36 months

1Cash and investments includes our cash and investments in T. Rowe Price sponsored products. This display does not include the non-controlling interest of our seed investments, which we normally consolidate due to our ownership. Capital returned to stockholders may not add up due to rounding.

U.S. $ millions, unless otherwise noted

Investments in affiliated private investment funds-carried interest

CABI ($1.2)

$426.9 $9.2

$382.6

As of 3/31/2025, $19B of alternatives fee-basis assets under management are eligible to earn carried interest

Q4 2024 Change in accrued carried interest

($10.4)

Acquisition-related amortization and impairments

($43.1)

Net Distributions Q1 2025

In general, 50%-60% of accrued carried interest is expected to be retained in operating income, with the remainder recognized as compensation expense

Non-controlling interests (NCI) in consolidated entities

CABI Comp ($0.4)

$160.7 $3.9

($4.3)

$0.1 $160.4

Absolute performance of the following indices are an indicator of changes in accrued carried interest

Q4 2024 Change in accrued carried interest compensation

Acquisition-related amortization and impairments

Net Contributions Q1 2025

Q1 2025 returns1

ICE Bank of America U.S. High Yield Index: 0.9% S&P UBS Leveraged Loan Index: 0.6%

At the end of each reporting period, accrued carried interest reflects what would be due from each investment fund as if the fair value of the underlying investments were realized as of such date, regardless of whether the amounts have been realized.

The change in the carrying value of accrued carried interest reflects amounts that are (1) market-related adjustments recognized as capital allocation-based income in the income statement, (2) acquisition-related amortization and impairments, and (3) realized and distributed by the fund. The change in accrued carried interest will fluctuate quarter to quarter.

Approximately $0.7M of the 40%-50% of accrued carried interest recognized in compensation expense was not allocated to non-controlling interest holders, therefore, not categorized as CABI-related compensation.

Past performance is not a guarantee nor a reliable indicator of future results.

1See the slide 16 for additional legal notices and disclaimers

U.S. $ millions

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Net Revenues, GAAP Basis

$1,750.2

$1,733.3

$1,785.6

$1,824.5

$1,763.9

Non-GAAP Adjustments1:

Consolidated Investment Products

1.2

0.5

1.3

0.6

1.4

Investment Amortization and Impairments

12.4

26.9

30.5

17.7

10.4

Net Revenues, Non-GAAP Basis

$1,763.8

$1,760.7

$1,817.4

$1,842.8

$1,775.7

Operating Income, GAAP Basis

$586.6

$564.7

$613.6

$568.4

$596.3

Non-GAAP Adjustments1:

Acquisition-Related Adjustments

50.5

73.0

59.0

56.0

49.0

Consolidated Investment Products

2.3

2.6

2.4

2.5

Deferred Compensation Liabilities

53.0

14.6

43.4

(6.7)

(7.2)

Operating Income, Non-GAAP Basis

$692.4

$654.9

$718.4

$620.2

$640.6

Operating Margin, GAAP Basis2

33.5 %

32.6 %

34.4 %

31.2 %

33.8 %

Operating Margin, as Adjusted2

39.3 %

37.2 %

39.5 %

33.7 %

36.1 %

1For a description of the non-GAAP adjustments, see the related earnings releases and/or prior 10Q or 10Ks filed with the SEC.

2Operating margin is equal to operating income divided by net revenues.

2022 2023 2024 Mar-25

U.S. Defined Contribution -Investment only

$410.2

$486.2

$565.2

$554.8

U.S. Retirement Plan Sponsors -Full-service recordkeeping

132.4

141.2

154.2

157.9

Total U.S. Defined Contribution (DC)

542.6

627.4

719.4

712.7

Other retirement accounts

304.3

341.4

349.1

327.8

Total U.S. DC and Other Retirement

846.9

968.8

1,068.5

1,040.5

Other accounts

427.8

475.7

538.1

525.8

Total AUM at end of period

$1,274.7

$1,444.5

$1,606.6

$1,566.3

U.S. $ billions

Full-service recordkeeping and plan administration services provided to:

$280 billion in assets under administration as of March 31, 2025

Over 8,600 U.S.

retirement plans

About 2.4 million

plan participants

Figures may not total due to rounding.

Investment performance overview (slide 4)

1Source: © 2025 Morningstar, Inc. All rights reserved. The information contained herein: 1) is proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; and 3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

2Source: Morningstar. Primary share class only. Excludes money market mutual funds, funds with an operating history of less than one year, T. Rowe Price passive funds, and T. Rowe Price funds that are clones of other funds. The top chart reflects the percentage of T. Rowe Price funds with 1 year, 3 year, 5 year, and 10 year track record that outperformed the Morningstar category median. The bottom chart reflects the percentage of T. Rowe Price funds AUM that has outperformed for the time periods indicated. Total AUM included for this analysis includes $307B for 1 year, $300B for 3 years, $299B for 5 years, and $298B for 10 years.

3Passive Peer Median was created by T. Rowe Price using data from Morningstar. Primary share class only. Excludes money market mutual funds, funds with an operating history of less than one year, funds with fewer than three peers, T. Rowe Price passive funds, and T. Rowe Price funds that are clones of a retail fund. This analysis compares T. Rowe Price active funds with the applicable universe of passive/index open-end funds and ETFs of peer firms. The top chart reflects the percentage of T. Rowe Price funds with 1 year, 3 year, 5 year, and 10 year track record that outperformed the passive peer universe. The bottom chart reflects the percentage of T. Rowe Price funds AUM that has outperformed for the time periods indicated. Total AUM included for this analysis includes

$290B for 1 year, $284B for 3 years, $245B for 5 years, and $237B for 10 years.

4Composite net returns are calculated using the highest applicable separate account fee schedule. Excludes money market composites. All composites compared to official GIPS composite primary benchmark. The top chart reflects the percentage of T. Rowe Price composites with 1 year, 3 year, 5 year, and 10 year track record that outperformed their benchmarks. The bottom chart reflects the percentage of T. Rowe Price composite AUM that has outperformed for the time periods indicated. Total AUM included for this analysis includes $1,391B for 1 year, $1,385B for 3 years, $1,380B for 5 years, and $1,338B for 10 years.

Capital Allocation Based Income (slide 11)

ICE Data Indices and S&P Dow Jones Indices LLC do not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit https://www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.

Referenced in the earnings call:

The following entities may be referenced in the earnings supplement or the earnings call:

TRPA - T. Rowe Price Associates, Inc.

TRPIM - T. Rowe Price Investment Management, Inc.

This material, including any statements, information, data and content contained within it and any materials, information, images, links, graphics or recordings provided in conjunction with this material are being furnished by T. Rowe Price for general informational purposes only. Under no circumstances should the material, in whole or part, be copied or distributed without consent from

T. Rowe Price. The views contained herein are as of the date of the presentation. The information and data obtained from third-party sources which is contained in the report were obtained from the sources deemed reliable; however, its accuracy and completeness is not guaranteed.

The products and services discussed in this presentation are available via subsidiaries of T. Rowe Price Group as authorized in countries throughout the world. The products and services are not available to all investors or in all countries. Visit troweprice.com to learn more about the products and services available in your country and the T. Rowe Price Group subsidiary which is authorized to provide them. The material is not intended for use by persons in jurisdictions that prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.

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Disclaimer

T. Rowe Price Group Inc. published this content on May 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 02, 2025 at 12:35 UTC.