NEWS RELEASE T. ROWE PRICE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

BALTIMORE (February 4, 2026) - T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) today reported its results for the fourth quarter and full year of 2025.

  • Assets under management (AUM) of $1.8 trillion at December 31, 2025
  • Net client outflows of $25.5 billion for Q4 2025 and $56.9 billion for 2025
  • Diluted earnings per common share (EPS) of $1.99 for Q4 2025 and $9.24 for 2025
  • Adjusted diluted EPS of $2.44 for Q4 2025 and $9.72 for 2025
  • Returned $426 million in Q4 2025 and $1.8 billion in 2025 to stockholders from the recurring quarterly dividend and stock repurchases

    Rob Sharps, chair, CEO, and president, commented, "In 2025, we made solid progress across our strategic initiatives. We entered new partnerships to extend our reach and grew our ETFs and alternatives business to position the firm for long-term success."

    Financial Highlights

    Three months ended

    Year ended

    (in millions, except per-share data)

    12/31/2025

    12/31/2024

    Change(1)

    9/30/2025

    Change(1)

    12/31/2025

    12/31/2024

    Change(1)

    U.S. GAAP basis

    Investment advisory fees

    $ 1,737.6

    $ 1,667.2

    4.2 %

    $ 1,698.7

    2.3 %

    $ 6,602.3

    $ 6,399.7

    3.2 %

    Capital allocation-based income(2)

    $ 40.8

    $ (5.2)

    n/m

    $ 42.0

    n/m

    $ 81.2

    $ 46.6

    74.2 %

    Net revenues

    $ 1,934.1

    $ 1,824.5

    6.0 %

    $ 1,893.5

    2.1 %

    $ 7,314.8

    $ 7,093.6

    3.1 %

    Operating expenses

    $ 1,463.1

    $ 1,256.1

    16.5 %

    $ 1,250.3

    17.0 %

    $ 5,126.0

    $ 4,760.3

    7.7 %

    Net operating income

    $ 471.0

    $ 568.4

    (17.1)%

    $ 643.2

    (26.8)%

    $ 2,188.8

    $ 2,333.3

    (6.2)%

    Non-operating income (loss)

    $ 142.1

    $ 4.6

    n/m

    $ 238.4

    n/m

    $ 686.7

    $ 486.3

    41.2 %

    Net income - T. Rowe Price Group, Inc.

    $ 445.3

    $ 439.9

    1.2 %

    $ 646.1

    (31.1)%

    $ 2,087.1

    $ 2,100.1

    (0.6)%

    Diluted earnings per common share

    $ 1.99

    $ 1.92

    3.6 %

    $ 2.87

    (30.7)%

    $ 9.24

    $ 9.15

    1.0 %

    Adjusted basis(3)

    Operating expenses

    $ 1,249.8

    $ 1,222.6

    2.2 %

    $ 1,134.4

    10.2 %

    $ 4,666.5

    $ 4,498.8

    3.7 %

    Operating expenses, excluding accrued carried interest related compensation

    $ 1,231.1

    $ 1,218.7

    1.0 %

    $ 1,111.8

    10.7 %

    $ 4,608.0

    $ 4,456.3

    3.4 %

    Net operating income

    $ 691.7

    $ 620.2

    11.5 %

    $ 774.1

    (10.6)%

    $ 2,720.8

    $ 2,685.9

    1.3 %

    Non-operating income (loss)

    $ 44.7

    $ 34.3

    30.3 %

    $ 50.2

    (11.0)%

    $ 177.5

    $ 148.7

    19.4 %

    Net income - T. Rowe Price Group, Inc.

    $ 547.1

    $ 484.8

    12.9 %

    $ 631.7

    (13.4)%

    $ 2,194.9

    $ 2,139.5

    2.6 %

    Diluted earnings per common share

    $ 2.44

    $ 2.12

    15.1 %

    $ 2.81

    (13.2)%

    $ 9.72

    $ 9.33

    4.2 %

    Assets under management (in billions)(4)

    Average assets under management

    $ 1,774.8

    $ 1,638.6

    8.3 %

    $ 1,723.0

    3.0 %

    $ 1,677.3

    $ 1,561.9

    7.4 %

    Ending assets under management

    $ 1,775.6

    $ 1,606.6

    10.5 %

    $ 1,767.2

    0.5 %

    $ 1,775.6

    $ 1,606.6

    10.5 %

    Investment advisory annualized effective fee rate (EFR) (in bps)

    EFR without performance-based fees

    38.8

    40.5

    (1.7)

    39.1

    (0.3)

    39.4

    41.0

    (1.6)

    EFR with performance-based fees

    39.2

    40.9

    (1.7)

    39.3

    (0.1)

    39.6

    41.4

    (1.8)

    (1) n/m - the percentage change is not meaningful. (2) Capital allocation-based income represents the change in accrued carried interest. (3) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. (4) Beginning July 1, 2025, managed account - model delivery assets are included in assets under management.

    Assets Under Management(1)

    During Q4 2025, assets under management (AUM) increased $8.4 billion to $1.8 trillion. The components of the change in AUM, by asset class, are shown in the table below.

    Three months ended 12/31/2025

    (in billions)

    Equity

    Fixed income, including money market

    Multi-asset(2)

    Alternatives(3)

    Total

    Assets under management at beginning of period

    $ 885.4

    $ 208.1

    $ 617.7

    $ 56.0

    $ 1,767.2

    Net cash flows prior to manager-driven distributions

    (23.2)

    1.5

    (5.9)

    3.1

    (24.5)

    Manager-driven distributions

    -

    -

    -

    (1.0)

    (1.0)

    Net cash flows

    (23.2)

    1.5

    (5.9)

    2.1

    (25.5)

    Net market appreciation (depreciation) and income(4)

    16.3

    2.0

    15.2

    0.4

    33.9

    Change during the period

    (6.9)

    3.5

    9.3

    2.5

    8.4

    Assets under management at December 31, 2025

    $ 878.5

    $ 211.6

    $ 627.0

    $ 58.5

    $ 1,775.6

    (1) Includes assets in which T. Rowe Price and its affiliates have full discretionary authority along with managed account - model delivery assets.

    (2) The underlying AUM of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns.

    (3) The alternatives asset class includes strategies authorized to invest more than 50% of its holdings in private credit, leveraged loans, mezzanine, real assets/CRE, structured products, stressed/distressed, non-investment grade CLOs, special situations, business development companies, or that have absolute return as its investment objective. Generally, only those strategies with longer than daily liquidity are included. Unfunded capital commitments were $21.6 billion at

    December 31, 2025 and $22.0 billion as of September 30, 2025, and are not reflected in fee basis AUM above.

    (4) Includes net distributions not reinvested of $5.5 billion.

    Investors domiciled outside the United States accounted for 8.8% of the firm's AUM at December 31, 2025, 8.7% at September 30, 2025 and 8.8% at December 31, 2024.

    The firm provides participant accounting and plan administration for retirement plans that primarily invest in the firm's U.S. mutual funds, collective investment trusts, and funds managed outside of the firm's complex. As of December 31, 2025, the firm's assets under administration were $314 billion, of which $178 billion were assets the firm manages.

    The firm's multi-asset investment division provides advisory solutions including investment insights, strategic asset allocation design, tactical asset allocation recommendations, and portfolio rebalancing services. The assets in these portfolios, predominantly in the United States, were $27.8 billion at December 31, 2025, compared with $25.2 billion at September 30, 2025.

    Financial Results Highlights Net Revenues

    Three months ended

    (in millions)

    12/31/2025

    12/31/2024

    Change

    9/30/2025

    Change

    Investment advisory fees

    Equity

    $ 1,029.1

    $ 1,006.2

    2.3 %

    $ 1,011.8

    1.7

    %

    Fixed income, including money market

    113.8

    106.2

    7.2 %

    110.1 3.4 %

    Multi-asset

    507.9

    473.8

    7.2 %

    492.1 3.2 %

    Alternatives

    86.8

    81.0

    7.2 %

    84.7 2.5 %

    Total investment advisory fees

    1,737.6

    1,667.2

    4.2 %

    1,698.7 2.3 %

    Performance-based advisory fees

    14.2

    19.3

    (26.4)%

    6.4 121.9 %

    Capital allocation-based income(1)

    40.8

    (5.2)

    n/m

    42.0 n/m

    Administrative, distribution, services, and other fees

    141.5

    143.2

    (1.2)%

    146.4 (3.3)%

    Net revenues

    $ 1,934.1

    $ 1,824.5

    6.0 %

    $ 1,893.5 2.1 %

    Average AUM (in billions):

    Equity

    $ 886.1

    $ 842.7

    5.2 %

    $ 865.8 2.3 %

    Fixed income, including money market

    210.5

    186.9

    12.6 %

    203.8 3.3 %

    Multi-asset

    621.9

    556.3

    11.8 %

    597.7 4.0 %

    Alternatives

    56.3

    52.7

    6.8 %

    55.7 1.1 %

    Average AUM

    $ 1,774.8

    $ 1,638.6

    8.3 %

    $ 1,723.0 3.0 %

    Investment advisory annualized effective fee rate (bps)

    38.8

    40.5

    (1.7)

    39.1

    (0.3)

    Investment advisory annualized effective fee rate, including performance-based fees (bps)

    39.2

    40.9

    (1.7)

    39.3

    (0.1)

    (1) The Capital allocation-based income represents the change in accrued carried interest. The percentage change is not meaningful (n/m).

    Net revenues in Q4 2025 were $1.9 billion, an increase of 6.0% from Q4 2024 and 2.1% from Q3 2025. Performance-based fees earned in each period were primarily related to alternatives strategies.

  • The investment advisory annualized effective fee rate, excluding performance-based fees, of 38.8 basis points in Q4 2025 decreased from 40.5 basis points earned in Q4 2024 and 39.1 basis points earned in Q3 2025. In comparison to prior periods, client flows and transfers drove a mix shift in assets under management toward lower fee products and asset classes, partially offset by market appreciation.

  • Capital allocation-based income impacted net revenues as follows:

    Three months ended

    (in millions)

    12/31/2025

    12/31/2024

    Change

    9/30/2025

    Change

    Change in accrued carried interest

    $ 47.6

    $ 12.5

    $ 35.1

    $ 56.2 $ (8.6)

    Acquisition-related amortization and impairments

    (6.8)

    (17.7)

    10.9

    (14.2)

    7.4

    Capital allocation-based income

    $ 40.8

    $ (5.2)

    $ 46.0

    $ 42.0 $ (1.2)

    The changes in accrued carried interest from Q4 2024 and Q3 2025 were driven by relative market performance. The decrease in acquisition-related amortization and impairments from Q4 2024 and Q3 2025 was primarily due to impairments recognized in prior periods that did not recur in the current period. A portion of capital allocation-based income is passed through as compensation, with unpaid amounts reported as non-controlling interest on the consolidated balance sheet. For detail on the quarterly changes

    in accrued carried interest, which is reported as part of investments on the consolidated balance sheet, and related non-controlling interest, refer to the tables at the end of this release.

    Operating Expenses

    Three months ended

    (in millions)

    12/31/2025

    12/31/2024

    Change(1)

    9/30/2025

    Change(1)

    Compensation, benefits, and related costs

    $ 705.1

    $ 705.4

    - %

    $ 632.5 11.5 %

    Acquisition-related retention agreements

    14.2

    14.2

    - %

    14.2 - %

    Capital allocation-based income compensation(2)

    15.9

    (3.4)

    n/m

    16.8 (5.4)%

    Market-related change in deferred compensation liabilities

    26.4

    (6.7)

    n/m

    50.8 (48.0)%

    Total compensation and related costs

    761.6

    709.5

    7.3 %

    714.3 6.6 %

    Distribution and servicing

    101.6

    92.9

    9.4 %

    95.8 6.1 %

    Advertising and promotion

    30.1

    50.2

    (40.0)%

    21.3 41.3 %

    Product and recordkeeping related costs

    75.6

    74.5

    1.5 %

    78.7 (3.9)%

    Technology, occupancy, and facility costs

    193.4

    169.3

    14.2 %

    183.2 5.6 %

    General, administrative, and other

    127.4

    128.3

    (0.7)%

    101.7 25.3 %

    Acquisition-related amortization and impairment costs

    24.6

    31.4

    (21.7)%

    26.8 (8.2)%

    Restructuring charge

    148.8

    -

    n/m

    28.5 n/m

    Total operating expenses

    $ 1,463.1

    $ 1,256.1

    16.5 %

    $ 1,250.3 17.0 %

    Total adjusted operating expenses(3)

    $ 1,249.8

    $ 1,222.6

    2.2 %

    $ 1,134.4 10.2 %

    (1) n/m - the percentage change is not meaningful.

    (2) Capital allocation-based income compensation represents the change in accrued carried interest compensation along with acquisition-related, non-cash amortization and impairments.

    (3) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release.

    Operating expenses were $1,463.1 million, an increase of 16.5% from Q4 2024 and 17.0% from Q3 2025. Adjusted operating expenses in Q4 2025 were $1,249.8 million, an increase of 2.2% from Q4 2024 and 10.2% from Q3 2025.

  • Compensation, benefits, and related costs in Q4 2025 of $705.1 million decreased $0.3 million from Q4 2024 and increased $72.6 million from Q3 2025. The decline from Q4 2024 was primarily due to lower salaries and related benefits, nearly offset by higher costs associated with the firm's annual long-term incentive grant. Compared to Q3 2025, the cost increase was primarily driven by the annual incentive grant in December, higher employee benefit costs, and a higher bonus accrual, partially offset by lower salaries. Each year, the level of the Q4 bonus accrual is driven by the total bonus pool awarded in December compared to the cumulative bonus expense accrued over the first three quarters of the year. The firm employed 7,773 associates as of December 31, 2025, a decrease of 4.7% from 8,158 associates as of December 31, 2024, and 0.7% from 7,830 associates as of September 30, 2025.

  • Distribution and servicing costs in Q4 2025 of $101.6 million increased $8.7 million from Q4 2024 and $5.8 million from Q3 2025. The increases from prior periods were primarily driven by higher average assets under management distributed through third-party intermediaries.

  • Advertising and promotion expenses in Q4 2025 of $30.1 million decreased $20.1 million from Q4 2024 and increased $8.8 million from Q3 2025. The decrease from Q4 2024 was primarily due to reduced media spend and agency costs. Additionally, the seasonal nature of the spending contributed to the increase

    compared to Q3 2025.

  • Technology, occupancy, and facility costs in Q4 2025 of $193.4 million increased $24.1 million from Q4 2024 and $10.2 million from Q3 2025. The increases from prior periods were due to higher technology costs, including depreciation and hosted solutions, and occupancy costs related to the firm's corporate headquarters.

  • General, administrative, and other costs in Q4 2025 of $127.4 million decreased $0.9 million from Q4 2024 and increased $25.7 million from Q3 2025. The increase from Q3 2025 was primarily due to higher professional fees, charitable contributions, travel and entertainment, and other administrative costs. The increase was further impacted by a cost recovery recorded in Q3 2025, which did not recur in Q4 2025.

  • Restructuring charge in Q4 2025 of $148.8 million relates to actions taken under the previously announced broad and ongoing expense management program, which will allow the firm to reduce expense growth and realign resources to support investment in existing and future capabilities. The charge includes accelerated depreciation and impairment charges related to certain owned real estate of $127.3 million as well as compensation-related costs, primarily severance.

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T. Rowe Price Group Inc. published this content on February 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 04, 2026 at 12:10 UTC.