IntrinsicIntrinsic
← All summaries

Invesco Ltd.

IVZ
Financials & Chart →

Business Summary

Invesco Ltd. is an independent investment management firm operating in the global investment management industry, serving clients in more than 120 countries with an on-the-ground presence in more than 20 countries . The industry is being transformed by trends including individuals and institutions expecting personalized outcomes, structural shifts in client portfolio allocations toward private markets and passive strategies, and the need for leading asset managers to quickly curate options using vehicles and technologies including models, SMAs, and tokenized platforms . The filing notes that the U.S. and China will continue to be the dominant global wealth markets, and that these dynamics are driving fundamental changes and increasing consolidation within the industry .

Invesco competes with a large number of investment management firms, commercial banks, investment banks, broker-dealers, hedge funds, insurance companies and, increasingly, firms outside the traditional financial services industry such as technology providers . The company believes its experience as a trusted partner, the quality and diversity of its investment capabilities, product types and channels of distribution, and its commitment to innovation enable it to compete effectively . The filing states there are few independent investment managers with teams as globally diverse as Invesco's and the same breadth and depth of investment capabilities and vehicles . The company also believes being an independent investment manager is a competitive advantage, as its business model avoids conflicts inherent within institutions that both manage and distribute products .

Invesco derives substantially all of its revenues from investment management contracts . Fees vary with the type of assets being managed, with higher fees earned on actively managed equity and balanced accounts, along with real estate and other alternative asset products, and with lower fees earned on fixed income, money market, stable value accounts, and ETFs . The company serves retail and institutional clients, with retail AUM of $1,515.7 billion and institutional AUM of $654.2 billion as of December 31, 2025. Retail products are primarily distributed through third-party financial intermediaries, while institutional products are distributed by regional sales forces to clients including public and private entities, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, insurers and sovereign wealth funds .

Invesco offers multiple investment objectives within various asset classes including equity, fixed income, balanced, alternatives and money market . As of December 31, 2025, AUM by investment capability included ETFs and Index of $630.2 billion , Fundamental Fixed Income of $311.5 billion , Fundamental Equities of $298.4 billion , Private Markets of $130.7 billion , China JV of $132.5 billion , Multi-Asset/Other of $69.7 billion , Global Liquidity of $189.7 billion , and QQQ of $407.2 billion . The company's investment management capabilities are delivered through specialized investment teams managing investments across a broad range of asset classes, investment styles and geographies .

During the year ended December 31, 2025, Invesco repurchased 5.4 million common shares for $100.4 million in the open market . The company also repurchased $1.5 billion of its outstanding Series A Preferred Stock held by MassMutual, reducing the outstanding balance to $2.5 billion . On May 16, 2025, the company amended and restated its $2.0 billion floating rate Revolving Credit Agreement, increasing the borrowing capacity to $2.5 billion and extending the expiration date to May 16, 2030 . The company repaid in full the $500.0 million three-year Term Loan Agreement entered into in the second quarter of 2025 . On December 20, 2025, the Invesco QQQ Trust converted from a unit investment trust to an open-end fund ETF . During the fourth quarter, the company completed the sale of the intelliflo business and the sale of 60% of its interest in Invesco Asset Management (India) Private Limited . The company also announced a new strategic partnership with LGT Capital Partners during the fourth quarter to develop a suite of multi-alternative private markets solutions .

For the year ended December 31, 2025, total operating revenues were $6,377.1 million , compared to $6,067.0 million in 2024. Operating loss was $(695.7) million versus operating income of $832.1 million in the prior year, with the operating margin declining to (10.9)% from 13.7% . Net loss attributable to Invesco Ltd. was $(726.3) million compared to net income of $538.0 million in 2024. Diluted EPS was $(1.60) versus $1.18 in the prior year. On a non-GAAP basis, net revenues were $4,658.5 million compared to $4,400.5 million , adjusted operating income was $1,557.8 million compared to $1,370.7 million , adjusted operating margin was 33.4% compared to 31.1% , adjusted net income attributable to Invesco Ltd. was $922.0 million compared to $781.7 million , and adjusted diluted EPS was $2.03 compared to $1.71 . Ending AUM was $2,169.9 billion at December 31, 2025, compared to $1,846.0 billion at December 31, 2024.

Business Outlook

Invesco's growth strategy emphasizes growing high demand investment offerings, prioritizing the intersection of market size, secular change, and Invesco's unique position to drive growth in the highest opportunity regions . The company aims to grow high demand private markets capabilities leveraging its strong retail channel, expanding investment strategies, and partnerships . The strategic partnership with LGT Capital Partners, announced during the fourth quarter, aims to develop a suite of multi-alternative private markets solutions focused on the U.S. wealth and retirement channels . Additionally, the partnership with Barings (MassMutual's global asset management subsidiary) is intended to develop multi-alternative private markets solutions . The company also continues to explore opportunities in the emerging trend of tokenization, which has the potential to transform the delivery and operational efficiency of investment products .

Invesco's strategy includes strengthening financial flexibility emphasizing operating leverage . The company believes the progress made to build financial flexibility has Invesco well-positioned to navigate various market conditions and deliver long-term growth . The adjusted operating margin increased to 33.4% for the year ended December 31, 2025 from 31.1% in the prior year, reflecting improved operating leverage on a non-GAAP basis.

The company's operational outlook includes harnessing innovation including AI to utilize next generation technology across all aspects of the business . Invesco maintains a global enterprise center in Hyderabad, India in leased facilities and leases office space in over 20 countries . As of December 31, 2025, the company had 7,499 employees , compared to 8,508 at December 31, 2024, with the decrease primarily due to the sale of the intelliflo business and the sale of 60% of its interest in Invesco Asset Management (India) Private Limited .

During the year ended December 31, 2025, the company repurchased 5.4 million common shares for $100.4 million in the open market . As of December 31, 2025, approximately $232.2 million remained authorized under the company's common share repurchase authorization approved by the Board on July 22, 2016 . The company repurchased $1.5 billion of the outstanding Series A Preferred Stock held by MassMutual . The company paid common dividends of $377.3 million and preferred dividends of $204.6 million during the year. Capital expenditure for property, equipment and software was $84.3 million for the year ended December 31, 2025.

The filing identifies several headwinds and constraints. The asset management industry faces transformative pressures including increased fee pressure, a continued shift away from actively managed strategies towards alternatives, passive index and smart beta strategies, increased demands from clients and distributors, consolidation among distributors, and competitive pricing pressures . The company's revenues and net income would likely be adversely affected by any reduction in AUM as a result of either a decline in market value of such assets or net outflows . The company faces competitive pressures that may force it to reduce the fees it charges to clients, which could reduce profitability . Additionally, the company's private market products include investments in private credit, real estate, private market funds of funds and direct equity investments that may expose the company to risks and liabilities .

Geopolitical developments, such as tensions between the U.S. and China, can produce volatility in global financial markets and regulatory environments, potentially impacting the level and composition of AUM and negatively impacting investor sentiment . Changes to tax, tariff and import/export regulations and economic sanctions may have a negative effect on global or regional economic conditions, financial markets and the company's business . The company also faces risks from fluctuations in exchange rates, as many subsidiary operations are located outside the U.S. and have functional currencies other than the U.S. Dollar .

Risk Factors

The most material risks to Invesco's business include the significant exposure to market volatility and declines in AUM, as substantially all revenues are derived from investment management fees based on AUM value . The company recorded a $1,794.9 million non-cash impairment of indefinite-lived intangible assets in 2025, and goodwill and intangible assets totaled $12,404.4 million at December 31, 2025, creating ongoing risk of further impairment if fair values decline. The company issued approximately $4 billion of 5.9% fixed rate perpetual preferred stock, of which approximately $2.5 billion remains outstanding , which may limit the ability to raise additional capital and requires significant cash flow for dividend payments. The company faces competitive pressures that may force fee reductions, with net revenue yield excluding performance fees declining to 23.0 basis points in 2025 from 25.4 basis points in 2024. Additionally, the company had approximately $1,166.3 million in seed capital and co-investments at December 31, 2025, which are exposed to adverse market conditions that could result in write-downs.

Management Priorities

Management's message emphasizes continued progress on strengthening capital management, simplifying and focusing the organization, investing in key capabilities, and accelerating growth to position the company for greater scale, performance and improved profitability . Key themes include delivering on the commitment to deleverage and maintain a strong balance sheet, with the company repaying in full the $500.0 million three-year Term Loan Agreement and ending the year with cash and cash equivalents of $1.0 billion . Management states the company remains committed to returning capital to shareholders longer term through a combination of share repurchases and modestly increasing dividends . The strategic priorities are aligned with four key long-term themes: deliver the excellence clients expect, grow high demand investment offerings, create an environment where talented people thrive, and act like owners for all stakeholders .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business
  2. [2] Item 1, Business
  3. [3] Item 1, Business — Industry Trends
  4. [4] Item 1, Business — Industry Trends
  5. [5] Item 1, Business — Competition
  6. [6] Item 1, Business — Competition
  7. [7] Item 1, Business — Competition
  8. [8] Item 1, Business — Competition
  9. [9] Item 1, Business — Management Contracts
  10. [10] Item 1, Business — Management Contracts
  11. [11] Item 7, MD&A — AUM by Distribution Channel
  12. [12] Item 7, MD&A — AUM by Distribution Channel
  13. [13] Item 1, Business — Distribution Channels
  14. [14] Item 1, Business — Investment Management Capabilities
  15. [15] Item 7, MD&A — AUM by Investment Capability
  16. [16] Item 7, MD&A — AUM by Investment Capability
  17. [17] Item 7, MD&A — AUM by Investment Capability
  18. [18] Item 7, MD&A — AUM by Investment Capability
  19. [19] Item 7, MD&A — AUM by Investment Capability
  20. [20] Item 7, MD&A — AUM by Investment Capability
  21. [21] Item 7, MD&A — AUM by Investment Capability
  22. [22] Item 7, MD&A — AUM by Investment Capability
  23. [23] Item 1, Business — Investment Management Capabilities
  24. [24] Item 7, MD&A — Capital Management
  25. [25] Item 7, MD&A — Capital Management
  26. [26] Item 7, MD&A — Executive Overview
  27. [27] Item 7, MD&A — Executive Overview
  28. [28] Item 7, MD&A — Executive Overview
  29. [29] Item 7, MD&A — Executive Overview
  30. [30] Item 7, MD&A — Executive Overview
  31. [31] Item 8, Consolidated Statements of Income
  32. [32] Item 8, Consolidated Statements of Income
  33. [33] Item 8, Consolidated Statements of Income
  34. [34] Item 8, Consolidated Statements of Income
  35. [35] Item 7, MD&A — Summary Operating Information
  36. [36] Item 7, MD&A — Summary Operating Information
  37. [37] Item 8, Consolidated Statements of Income
  38. [38] Item 8, Consolidated Statements of Income
  39. [39] Item 8, Consolidated Statements of Income
  40. [40] Item 8, Consolidated Statements of Income
  41. [41] Item 7, MD&A — Schedule of Non-GAAP Information
  42. [42] Item 7, MD&A — Schedule of Non-GAAP Information
  43. [43] Item 7, MD&A — Schedule of Non-GAAP Information
  44. [44] Item 7, MD&A — Schedule of Non-GAAP Information
  45. [45] Item 7, MD&A — Schedule of Non-GAAP Information
  46. [46] Item 7, MD&A — Schedule of Non-GAAP Information
  47. [47] Item 7, MD&A — Schedule of Non-GAAP Information
  48. [48] Item 7, MD&A — Schedule of Non-GAAP Information
  49. [49] Item 7, MD&A — Schedule of Non-GAAP Information
  50. [50] Item 7, MD&A — Schedule of Non-GAAP Information
  51. [51] Item 7, MD&A — Assets Under Management
  52. [52] Item 7, MD&A — Assets Under Management
  53. [53] Item 1, Business — Strategy
  54. [54] Item 1, Business — Strategy
  55. [55] Item 7, MD&A — Executive Overview
  56. [56] Item 7, MD&A — Executive Overview
  57. [57] Item 1, Business — Distribution Channels
  58. [58] Item 1, Business — Strategy
  59. [59] Item 7, MD&A — Executive Overview
  60. [60] Item 7, MD&A — Schedule of Non-GAAP Information
  61. [61] Item 7, MD&A — Schedule of Non-GAAP Information
  62. [62] Item 1, Business — Strategy
  63. [63] Item 2, Properties
  64. [64] Item 2, Properties
  65. [65] Item 1, Business — Corporate Responsibility and Human Capital
  66. [66] Item 1, Business — Corporate Responsibility and Human Capital
  67. [67] Item 7, MD&A — Employee Compensation
  68. [68] Item 7, MD&A — Capital Management
  69. [69] Item 5, Repurchases of Equity Securities
  70. [70] Item 7, MD&A — Capital Management
  71. [71] Item 7, MD&A — Financing Activities
  72. [72] Item 7, MD&A — Financing Activities
  73. [73] Item 7, MD&A — Investing Activities
  74. [74] Item 1A, Risk Factors — Failure to properly address transformative pressures
  75. [75] Item 1A, Risk Factors — Revenues and net income affected by AUM reduction
  76. [76] Item 1A, Risk Factors — Competitive pressures may force fee reductions
  77. [77] Item 1A, Risk Factors — Private market products risks
  78. [78] Item 1A, Risk Factors — Volatility and disruption in markets
  79. [79] Item 1A, Risk Factors — Volatility and disruption in markets
  80. [80] Item 1A, Risk Factors — Foreign exchange rate risk
  81. [81] Item 1A, Risk Factors — Revenues and net income affected by AUM reduction
  82. [82] Item 7, MD&A — Critical Accounting Policies and Estimates — Intangible Assets
  83. [83] Item 1A, Risk Factors — Carrying value of goodwill and intangible assets
  84. [84] Item 1A, Risk Factors — Perpetual preferred stock
  85. [85] Item 7, MD&A — AUM tables — Revenue yield
  86. [86] Item 7, MD&A — AUM tables — Revenue yield
  87. [87] Item 1A, Risk Factors — Seed capital and co-investments
  88. [88] Item 7, MD&A — Executive Overview
  89. [89] Item 7, MD&A — Executive Overview
  90. [90] Item 7, MD&A — Executive Overview
  91. [91] Item 7, MD&A — Executive Overview
  92. [92] Item 1, Business — Strategy
  93. [93] Item 8, Consolidated Statements of Income
  94. [94] Item 8, Consolidated Statements of Income
  95. [95] Item 8, Consolidated Statements of Income
  96. [96] Item 8, Consolidated Statements of Income
  97. [97] Item 8, Consolidated Statements of Income
  98. [98] Item 8, Consolidated Statements of Income
  99. [99] Item 8, Consolidated Statements of Income
  100. [100] Item 8, Consolidated Statements of Income
  101. [101] Item 7, MD&A — Summary Operating Information
  102. [102] Item 7, MD&A — Summary Operating Information
  103. [103] Item 7, MD&A — Amortization and impairment of intangible assets
  104. [104] Item 7, MD&A — Schedule of Non-GAAP Information
  105. [105] Item 7, MD&A — Schedule of Non-GAAP Information
  106. [106] Item 7, MD&A — Schedule of Non-GAAP Information
  107. [107] Item 7, MD&A — Schedule of Non-GAAP Information
  108. [108] Item 8, Consolidated Balance Sheets
  109. [109] Item 8, Consolidated Balance Sheets
  110. [110] Item 8, Consolidated Balance Sheets
  111. [111] Item 8, Consolidated Balance Sheets
  112. [112] Item 7, MD&A — Financing Activities
  113. [113] Item 7, MD&A — Financing Activities
  114. [114] Item 7, MD&A — Financing Activities
  115. [115] Item 7, MD&A — Capital Management
  116. [116] Item 7, MD&A — Preferred Stock Repurchase
  117. [117] Item 8, Consolidated Statements of Income
  118. [118] Item 8, Consolidated Statements of Income
  119. [119] Item 8, Consolidated Statements of Income
  120. [120] Item 7, MD&A — Income Tax Expense
  121. [121] Item 7, MD&A — Income Tax Expense
  122. [122] Item 7, MD&A — Invesco Great Wall
  123. [123] Item 7, MD&A — Invesco Great Wall

Analysis on 6/21/2026