Invesco Exch Traded Fd Tr Ii — Financial Results
AUM Grew 17.5% to $2.17 Trillion, Driven by Markets and Net Inflows
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Ending AUM (billions) | $1,585.3 | $1,846.0 | $2,169.9 |
| Net long-term flows (billions) | $10.2 | $65.1 | $81.2 |
| Market gains (billions) | $161.1 | $142.7 | $193.9 |
Assets under management (AUM) — the total value of client money Invesco manages, which is the main driver of its fees — reached $2.17 trillion at year-end 2025, up from $1.85 trillion a year earlier. The gain came from a combination of strong global market returns and $81.2 billion in net client inflows into long-term products. ETFs and Index strategies were the biggest growth engine, adding $145.3 billion in AUM to reach $630.2 billion.
A $1.79 Billion Write-Down on U.S. Mutual Fund Contracts Swamped Reported Profits
| Metric | 2024 | 2025 |
|---|---|---|
| Operating income (U.S. GAAP) | $832.1M | -$695.7M |
| Operating margin (U.S. GAAP) | 13.7% | -10.9% |
| Adjusted operating income (non-GAAP) | $1,370.7M | $1,557.8M |
| Adjusted operating margin (non-GAAP) | 31.1% | 33.4% |
Invesco recorded a $1,794.9 million non-cash impairment (a write-down of an asset whose value has fallen below what it is carried at on the books) on intangible assets tied to older U.S. retail mutual fund management contracts it acquired in past deals. This reflects the sustained trend of investors moving away from actively managed mutual funds. Stripping out that one-time charge, the underlying business actually improved — adjusted operating margin rose from 31.1% to 33.4%.
Underlying Profitability Is Genuinely Improving Year Over Year
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Adjusted operating income | $1,213.5M | $1,370.7M | $1,557.8M |
| Adjusted diluted EPS | $1.51 | $1.71 | $2.03 |
| Net revenues | $4,310.7M | $4,400.5M | $4,658.5M |
On an adjusted basis, Invesco has grown earnings per share three years in a row, with adjusted diluted EPS rising from $1.51 in 2023 to $2.03 in 2025 — a 34% increase over two years. Net revenues rose 5.9% in 2025, while core operating costs were well controlled; employee headcount fell from 8,508 to 7,499, partly reflecting asset sales.
Fee Rates Are Declining as Clients Shift to Lower-Cost Products
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net revenue yield ex-performance fees (bps) | 28.4 | 25.4 | 23.0 |
A basis point (bps) is one-hundredth of a percent and is how asset managers measure the fees they earn per dollar of AUM. Invesco earned 23.0 bps in 2025, down from 25.4 bps the year prior. This is because faster-growing products — notably ETFs and index funds — charge lower fees than the traditional active strategies they are replacing. More AUM does not automatically mean proportionally more revenue.
Invesco Repurchased $1.5 Billion of Preferred Stock to Simplify Its Capital Structure
Invesco paid $1.74 billion to retire $1.5 billion of Series A Preferred Stock held by MassMutual, reducing the outstanding balance from $4.0 billion to $2.5 billion. Preferred stock carries a fixed dividend obligation (here, 5.9% annually), so reducing it lowers the ongoing cash committed to preferred dividends. The company also repaid a $500 million term loan within the same year it was taken out, and ended 2025 with $1.04 billion in cash — a clean demonstration of deleveraging intent.
Strategic Partnerships and the QQQ Conversion Point Toward Future Growth
Invesco converted its flagship Invesco QQQ Trust — one of the largest ETFs in the world, tracking the Nasdaq-100 — from its older legal structure into a modern open-end ETF on December 20, 2025. This unlocks new revenue opportunities and lowers costs for investors. The company also struck new distribution partnerships with Barings and LGT Capital Partners targeting private markets products for the U.S. wealth channel, and sold non-core businesses (intelliflo, a 60% stake in its India business) to sharpen focus.