Skip to content
AnalystLens

Price T Rowe Group Annual Report, Year Ended Dec 31, 2024

Filing Date
Filed February 14, 2025
Period End
December 31, 2024
Security
TROW
In the record · 2016–202610-K1110-Q338-K83

TROW filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 83 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Apr ’22Apr ’22
  2. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.

T.

Rowe Price Group, Inc. (NASDAQ: TROW) reported in its 10-K for the year ended December 31, 2024 that assets under management ended the year at $1,606.6 billiona, up $162.1 billion from the end of 2023. The increase was driven by market appreciation, net of distributions not reinvested, of $205.3 billion, offset by net cash outflows of $43.2 billion. Net revenues rose to $7,093.6 million from $6,460.5 million, and net income attributable to T.

Rowe Price Group was $2,100.1 millionb, or $9.15 per diluted share, compared with $1,788.7 million, or $7.76 per diluted share, in 2023. On a non-GAAP basis, diluted earnings per share were $9.33 versus $7.59. Investment advisory fees grew to $6,399.7 million, and the operating margin improved to 32.9% from 30.7%.

The firm's effective fee rate, excluding performance-based fees, declined to 41.0 basis points from 41.9 basis points, which the filing attributes largely to a mix shift toward lower-fee products and asset classes. Net outflows were concentrated in growth-oriented equity strategies and in financial intermediaries, with outflows in the Americas partly offset by inflows in EMEA and APAC. Target date retirement products reached $475.6 billionc in AUM with $16.3 billion of net inflows.

Total cash and investments in T. Rowe Price products were $5,480.1 milliond at year-end, and the company returned $1,469.7 million to stockholders in 2024 through dividends and repurchases. The filing also flags continuing risks, including fee pressure, the shift toward passive products, dependence on third-party intermediaries, and ongoing regulatory change.

It notes the Oak Hill Advisors earnout and impairments of intangible assets recognized in 2024 and prior years. Management estimates 2025 non-GAAP operating expenses excluding accrued carried interest compensation will grow 4% to 6%, and expects a 2025 GAAP effective tax rate of 23.0% to 27.0%.

02—Key points

Key Highlights

  1. Assets under management reached $1,606.6 billion at December 31, 2024, up $162.1 billion, driven by $205.3 billion of market appreciation and offset by $43.2 billion of net cash outflows.
  2. Net revenues increased 9.8% to $7,093.6 million, and investment advisory fees rose 12.1% to $6,399.7 million on higher average AUM of $1,561.9 billion.
  3. GAAP diluted EPS was $9.15 versus $7.76 in 2023; non-GAAP diluted EPS was $9.33 versus $7.59.
  4. Operating margin improved to 32.9% from 30.7%, as revenue growth outpaced operating expense growth.
  5. The effective fee rate excluding performance-based fees fell to 41.0 basis points from 41.9, due to a mix shift toward lower-fee products and asset classes.
  6. Target date retirement products had $475.6 billion in AUM and $16.3 billion of net inflows in 2024.
  7. The firm returned $1,469.7 million to stockholders in 2024 through $1,135.2 million of dividends and $334.5 million of share repurchases, and the Board increased the repurchase program by about 15.0 million shares in December 2024.

03—One dollar

04—Financials

Financial Highlights

Figures from 10-KFY2024filed February 14, 2025
Revenue$7.09BNet Income$2.10B29.6% Net MarginEPS (Diluted)$9.15Total Assets$13.47BCash & Equivalents$2.65BFree Cash Flow$1.26B

Financial Statements

FY2024 against FY2023

Line itemFY2024FY2023Change
Revenue$7.09B$6.46B+9.8%
Operating Expenses$4.76B$4.47B+6.4%
Operating Income$2.33B$1.99B+17.5%
Net Income$2.10B$1.79B+17.4%
EPS (Basic)$9.18$7.78+18.0%
EPS (Diluted)$9.15$7.76+17.9%
Shares Outstanding (Basic)222.80M224.10M−0.6%
Shares Outstanding (Diluted)223.30M224.80M−0.7%

05—Questions

Frequently Asked Questions

  1. What drove the growth in assets under management in 2024?

    AUM rose $162.1 billion to $1,606.6 billion, mainly from $205.3 billion of market appreciation net of distributions not reinvested. Net cash outflows of $43.2 billion partly offset this. Outflows were driven primarily by growth-oriented equity strategies and a multi-asset sub-advised variable annuity outflow.

  2. How did profitability change in 2024?

    Net income attributable to T. Rowe Price Group rose to $2,100.1 million from $1,788.7 million. GAAP diluted EPS was $9.15, compared with $7.76. The filing attributes the increase to higher operating income and a lower effective tax rate, which was 24.3% in 2024 versus 26.3% in 2023.

  3. Why did the effective fee rate decline?

    The average annualized effective fee rate excluding performance-based fees fell to 41.0 basis points from 41.9 basis points. The filing attributes the decline largely to a mix shift in assets toward lower-fee products and asset classes from client flows and transfers, partially offset by higher market returns.

  4. What is the outlook for operating expenses and taxes in 2025?

    Management estimates 2025 non-GAAP operating expenses, excluding non-GAAP accrued carried interest compensation, will grow 4% to 6% from the 2024 amount of $4,456.3 million. It expects the 2025 effective tax rate to be 23.0% to 27.0% on a GAAP basis and 23.0% to 26.0% on a non-GAAP basis.

  5. What are the main risks highlighted in the filing?

    The filing highlights fluctuations in AUM from market declines and investor redemptions, continued shifts from active to passive products, fee compression, reliance on third-party financial intermediaries, cybersecurity and data risks, and an evolving regulatory environment, including the Retirement Security Rule that became effective in September 2024.

06—Continue

← View all 10-K filings