01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
T.
Rowe Price Group, Inc. (NASDAQ: TROW) reported that assets under management ended 2025 at $1,775.6 billiona, up $169.0 billion from year-end 2024, driven by $216.7 billion of market appreciation, net of distributions not reinvested, partly offset by $56.9 billion of net cash outflows. Net revenues rose 3.1% to $7,314.8 million, while U.S. GAAP operating expenses rose 7.7% to $5,126.0 million, including a $177.3 million restructuring charge tied to role eliminations, technology outsourcing and the planned exit of certain owned buildings. U.S. GAAP net income attributable to T.
Rowe Price Group was $2,087.1 millionb, or $9.24 diluted EPS, versus $9.15 in 2024. Operating margin was 29.9% compared with 32.9% in 2024. On a non-GAAP basis, which excludes the restructuring charge, acquisition-related amortization, deferred compensation market effects and consolidated investment products, diluted EPS was $9.72 versus $9.33 in 2024.
The filing estimates 2026 non-GAAP operating expenses excluding accrued carried interest compensation will grow 3% to 6% from $4,608.0 millionc, and expects a 2026 GAAP effective tax rate of 23.0% to 27.0%. The firm ended 2025 with $3,378.2 million of cash and cash equivalents and stockholders' equity attributable to T. Rowe Price Group of $10.9 billion.
It repurchased about 6.2 million shares for $624.6 milliond and paid $5.08 per share in regular dividends for the year, up from $4.96. Average AUM grew 7.4% to $1,677.3 billion, while the effective fee rate excluding performance-based fees declined to 39.4 basis points from 41.0.
02—Key points
Key Highlights
- Ending AUM reached $1,775.6 billion, up $169.0 billion, with $216.7 billion of market appreciation offsetting $56.9 billion of net cash outflows.
- Net revenues increased 3.1% to $7,314.8 million, driven by higher investment advisory fees on higher average AUM.
- U.S. GAAP operating expenses rose 7.7% to $5,126.0 million, including a $177.3 million restructuring charge; operating margin fell to 29.9% from 32.9%.
- Diluted EPS was $9.24 on a U.S. GAAP basis and $9.72 on a non-GAAP adjusted basis, compared with $9.15 and $9.33 in 2024.
- Effective fee rate excluding performance-based fees declined to 39.4 basis points from 41.0 basis points, reflecting client flows toward lower-fee strategies.
- The company estimates 2026 non-GAAP operating expenses excluding accrued carried interest compensation will grow 3% to 6%.
- Cash returned to stockholders totaled $1,768.0 million in 2025, including $624.6 million of share repurchases and $5.08 per share in dividends.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.31B$7.09B | +3.1% |
| Operating Expenses | $5.13B$4.76B | +7.7% |
| Operating Income | $2.19B$2.33B | −6.2% |
| Net Income | $2.09B$2.10B | −0.6% |
| EPS (Basic) | $9.26$9.18 | +0.9% |
| EPS (Diluted) | $9.24$9.15 | +1.0% |
| Shares Outstanding (Basic) | 220.00M222.80M | −1.3% |
| Shares Outstanding (Diluted) | 220.30M223.30M | −1.3% |
05—Questions
Frequently Asked Questions
Why did GAAP operating expenses rise faster than net revenues in 2025?
U.S. GAAP operating expenses increased 7.7% to $5,126.0 million, largely because of a $177.3 million restructuring charge, which included $127.3 million of accelerated depreciation and impairment on owned real estate and compensation-related costs, primarily severance. Technology, occupancy and facility costs also rose 12.3%, and distribution and servicing costs rose 8.3%. Net revenues grew only 3.1%.
How did AUM change during 2025 and what drove it?
AUM ended 2025 at $1,775.6 billion, up $169.0 billion. Market appreciation, net of distributions not reinvested, contributed $216.7 billion, while net cash outflows were $56.9 billion. Net outflows were driven primarily by growth-oriented equity strategies, partly offset by inflows into fixed income, target date products and alternatives.
What is the difference between GAAP and non-GAAP results for TROW in 2025?
The non-GAAP adjusted basis removes items including the restructuring charge, acquisition-related amortization and impairments, deferred compensation market effects, and the impact of consolidated investment products. Adjusted net income attributable to T. Rowe Price Group was $2,194.9 million, or $9.72 per diluted share, compared with U.S. GAAP net income of $2,087.1 million, or $9.24 per diluted share.
What does the company expect for 2026 expenses and tax rates?
The company estimates 2026 non-GAAP operating expenses, excluding non-GAAP accrued carried interest compensation, will grow in the range of 3% to 6% from the 2025 amount of $4,608.0 million. It expects the 2026 effective tax rate to be in the range of 23.0% to 27.0% on a GAAP basis and 24.0% to 27.0% on a non-GAAP basis. Planned 2026 capital expenditures are about $270 million, with more than three-quarters for technology initiatives.
How much capital did the company return to shareholders and how did it fund this?
In 2025 the company paid $5.08 per share in regular dividends, up 2.4% from $4.96 per share in 2024, and repurchased nearly 6.2 million shares for $624.6 million at an average price of $101.15. These payments were funded from existing cash balances and cash generated from operations. Since the end of 2022, the company has returned $4.6 billion through repurchases and dividends.
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