T. Rowe Price 8-K

NegativeEarningsNew guidanceRestructuringImpairment / charge

A $148.8M Q4 restructuring charge, chiefly tied to owned real estate, weighed on GAAP operating income; net client outflows hit $25.5B.

Filed 2026-02-04 07:06 ET

Summary

Q4 and FY2025 results with FY2026 tax-rate guidance. Q4 net revenue rose 6.0% Y/Y, while GAAP operating income fell 17.1%; a $148.8M restructuring charge contributed to the decline. Net client outflows were $25.5B in Q4 and $56.9B for the year. The results are unaudited; the firm expects KPMG to complete its audit in mid-February and then expects to file its 2025 Form 10-K.

Key Figures

Metric Q4 2025 FY2025
Net revenue $1.93B, +6.0% Y/Y $7.31B, +3.1% Y/Y
Net operating income, GAAP $471M, -17.1% Y/Y $2.19B, -6.2% Y/Y
Net operating income, non-GAAP $692M, +11.5% Y/Y $2.72B, +1.3% Y/Y
Net income attributable to T. Rowe Price Group, Inc., GAAP $445M, +1.2% Y/Y $2.09B, -0.6% Y/Y
Net income attributable to T. Rowe Price Group, Inc., non-GAAP $547M, +12.9% Y/Y $2.19B, +2.6% Y/Y
Diluted EPS, GAAP $1.99, +3.6% Y/Y $9.24, +1.0% Y/Y
Diluted EPS, non-GAAP $2.44, +15.1% Y/Y $9.72, +4.2% Y/Y
Operating cash flow, as reported — $1.75B
Ending AUM $1.78T, +10.5% Y/Y $1.78T, +10.5% Y/Y
  • AUM rose $8.4B in Q4 as $33.9B of market appreciation and income more than offset $25.5B of net outflows. The annual outflow total was $56.9B.
  • Q4's $148.8M restructuring charge included $127.3M of accelerated depreciation and impairment on owned real estate, plus primarily severance costs; the FY charge was $177.3M. The actions are part of the ongoing expense-management program. Lower-fee product and asset-class mix, driven by client flows and transfers and partly offset by market appreciation, reduced the Q4 effective fee rate to 38.8 bp from 40.5 bp a year earlier.
  • The firm returned $426M to stockholders in Q4 and $1.8B for FY2025 through dividends and repurchases. Year-end cash was $3.38B; shares outstanding were 218.6M at year-end, down from 223.0M a year earlier. FY operating cash flow attributable to T. Rowe Price was $2.49B.

Guidance

Metric Period Guidance Prior Direction
Effective tax rate, GAAP FY2026 23%-27% — —
Effective tax rate, adjusted FY2026 24%-27% — —

These ranges are the firm’s expected effective tax rates for FY2026.

Investor Takeaways

  • Watch for KPMG’s expected audit completion in mid-February and the subsequent 2025 Form 10-K filing.

The summary is written by an AI model reading the filing.

Model 005 · prompt 5998ea898f · 2026-10-16 19:54:46Z

Feedback