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Price T Rowe Group 8-K Report, Financial Results (Feb 5, 2025)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 5, 2025
Period End
February 5, 2025
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 8-K filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.

T.

Rowe Price Group, Inc. reported unaudited fourth-quarter and full-year 2024 results in an earnings release dated February 5, 2025, furnished as Exhibit 99.1, and furnished a supplemental earnings presentation as Exhibit 99.2. Assets under management ended 2024 at $1.61 trilliona, with net client outflows of $19.3 billion in Q4 2024 and $43.2 billion for the full year, which the firm states was reduced by nearly half year over year. Diluted EPS was $1.92 for Q4 2024 and $9.15 for 2024 on a U.S. GAAP basis, while adjusted diluted EPS was $2.12 for Q4 2024 and $9.33 for 2024.

The firm returned $355 millionb to stockholders in Q4 2024 and $1.5 billion in 2024 through dividends and stock repurchases. Full-year 2024 U.S. GAAP net revenues were $7.09 billion, up from $6.46 billion in 2023, and net income attributable to T. Rowe Price Group, Inc. was $2.10 billion, compared with $1.79 billion in 2023.

Q4 2024 net revenues of $1.82 billionc were higher than in Q4 2023, but the quarter's GAAP net income of $439.9 million was little changed from the prior-year quarter, and Q4 2024 capital allocation-based income was negative at $(5.2) million. The effective fee rate excluding performance-based fees declined to 40.5 basis points in Q4 2024 from 41.5 basis points a year earlier, which the firm attributes to a mix shift toward lower-fee products and asset classes. The firm estimates its full-year 2025 effective tax rate will be 23.0% to 27.0% on a U.S. GAAP basis and 23.0% to 26.0% on a non-GAAP basis.

The financial results are unaudited, and KPMG LLP was still completing its audits of the 2024 financial statements, with the Form 10-K expected to follow in mid-February. The filing also states that a webcast was held on February 5, 2025 to discuss the results.

02—Key points

Key Highlights

  1. Ending AUM was $1.61 trillion at December 31, 2024, down $24.3 billion during Q4 2024.
  2. Net client outflows were $19.3 billion in Q4 2024 and $43.2 billion for full-year 2024; the firm says full-year outflows were reduced by nearly half year over year.
  3. U.S. GAAP diluted EPS was $1.92 for Q4 2024 and $9.15 for 2024; adjusted diluted EPS was $2.12 for Q4 2024 and $9.33 for 2024.
  4. Full-year 2024 U.S. GAAP net revenues were $7.09 billion, versus $6.46 billion in 2023, and investment advisory fees were $6.40 billion, up from $5.71 billion.
  5. Q4 2024 effective fee rate excluding performance-based fees was 40.5 basis points, down from 41.5 basis points in Q4 2023.
  6. The firm returned $355 million to stockholders in Q4 2024 and $1.5 billion in 2024 through dividends and share repurchases.
  7. The 2025 effective tax rate is estimated at 23.0% to 27.0% on a U.S. GAAP basis and 23.0% to 26.0% on a non-GAAP basis.

03—Questions

Frequently Asked Questions

  1. How did T. Rowe Price's assets under management and client flows trend in 2024?

    AUM ended 2024 at $1.61 trillion, up from $1.44 trillion at the end of 2023. Net client outflows were $43.2 billion for the full year, and the firm states that it reduced outflows by nearly half compared with the prior year. Q4 2024 net outflows were $19.3 billion.

  2. What drove the difference between GAAP and adjusted earnings per share?

    The adjusted measures remove items such as acquisition-related amortization and impairments, the impact of consolidated investment products, and deferred compensation liability market valuation changes. For 2024, U.S. GAAP diluted EPS was $9.15 and adjusted diluted EPS was $9.33. For Q4 2024, the figures were $1.92 and $2.12, respectively.

  3. Why did the effective fee rate decline?

    The firm attributes the decline to client flows and transfers that shifted assets under management toward lower-fee products and asset classes, partially offset by market appreciation. The effective fee rate excluding performance-based fees was 40.5 basis points in Q4 2024, compared with 41.5 basis points in Q4 2023.

  4. Are the reported financial results final?

    The results are unaudited. KPMG LLP was completing its audits of the 2024 consolidated financial statements and internal controls, and the firm expected KPMG to finish in mid-February, after which the firm would file its 2024 Form 10-K.

  5. What is the outlook for the effective tax rate?

    The firm estimates its effective tax rate for full-year 2025 will be in the range of 23.0% to 27.0% on a U.S. GAAP basis and 23.0% to 26.0% on a non-GAAP basis.

04—Continue

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