IVZ earnings analysis
What we found in IVZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Invesco posted strong Q2 operating momentum: GAAP revenue increased 20.5% year over year to $1.826B, GAAP operating margin expanded to 19.9%, and diluted EPS improved to $0.76 from a $0.03 loss. Record $45.1B long-term inflows and $256.8B of market gains lifted ending AUM to $2.470T, with ETFs/Index, QQQ and China JV leading inflows. Offsetting considerations are $7.7B of Fundamental Equities outflows, an 80-bp year-over-year decline in net revenue yield to 22.4 bps, and higher interest expense.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew more than 20% year over year
- Q2 GAAP operating revenue rose 20.5% year over year to $1.826B, while net revenues increased 20.3% to $1.329B. The filing attributes higher management fees primarily to QQQ's ETF conversion and higher average AUM.
- Margins and EPS improved sharply
- GAAP operating margin expanded 580 bps year over year to 19.9% from 14.1%; adjusted operating margin increased to 37.5% from 31.2%. GAAP diluted EPS was $0.76 versus a $0.03 loss in the prior-year quarter, and adjusted EPS was $0.71 versus $0.36.
- Record flows and market gains lifted AUM
- Ending AUM rose 23.4% year over year to $2.470T, supported by record Q2 net long-term inflows of $45.1B and $16.9B of money-market inflows. Market gains added $256.8B in the quarter.
- Passive and China capabilities drove flows
- ETFs and Index generated $30.1B of Q2 net long-term inflows, QQQ added $13.8B, and China JV added $6.9B. These capabilities helped offset $7.7B of Fundamental Equities outflows.
- Cash generation covered low capex needs
- Adjusted operating cash flow excluding consolidated investment products was $572.5M for the first six months, and capex was $44.7M, implying $527.8M of free cash flow and a 7.8% capex-to-operating-cash-flow ratio.
- Deleveraging and shareholder returns continued
- Debt fell $201.1M from year-end to $1.624B, while the leverage ratio improved to 0.54x from 0.73x. The company also repurchased $90.0M of common stock in the first half, with $1.142B remaining authorized.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Fundamental Equities flows and performance lag
- Fundamental Equities had Q2 net long-term outflows of $7.7B, versus $3.6B of outflows in Q2 2025. Its one-year active-performance metrics were also weak, with only 19% of applicable AUM in the first quartile and 26% above benchmark.
- Revenue yield declined on product mix
- Net revenue yield excluding performance fees declined to 22.4 bps in Q2 2026 from 23.2 bps in Q2 2025, as client demand shifts toward products with lower net revenue yields. This mix pressure can constrain monetization even as AUM rises.
- Higher funding costs and revolver usage
- Cash and equivalents declined $122.1M from December 31 to $915.4M, while the revolver balance was $736.0M and six-month interest expense increased 41.7% to $47.9M. The weighted average cost of debt rose to 4.97% from 4.71%.
- No formal risk-factor update; Canada AUM sold
- The company states there were no significant changes to risk factors previously disclosed in its 2025 Form 10-K. Nonetheless, a $11.0B AUM disposition followed the June 1 Canadian fund-business sale, reducing the managed asset base.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.76
- Operating margin
- 19.9%
- Segment
- ETFs and Index: ending AUM $753.5B; Q2 net long-term inflows $30.1B.
- Segment
- Fundamental Fixed Income: ending AUM $315.5B; Q2 net long-term inflows $0.4B.
- Segment
- Fundamental Equities: ending AUM $318.1B; Q2 net long-term outflows $7.7B.
- Segment
- Private Markets: ending AUM $135.5B; Q2 net long-term inflows $1.9B.
- Segment
- China JV: ending AUM $163.2B; Q2 net long-term inflows $6.9B.
- Segment
- Multi-Asset/Other: ending AUM $79.9B; Q2 net long-term outflows $0.3B.
- Segment
- Global Liquidity: ending AUM $214.5B; Q2 money-market net inflows $13.2B.
- Segment
- QQQ: ending AUM $490.1B; Q2 net long-term inflows $13.8B.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook; management states that existing cash, operating cash flow, revolver capacity and potential capital-market activity should be sufficient for present and future cash needs.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Invesco's Q1 2026 report shows solid earnings performance with operating revenues totaling $1.74 billion, up 14.1% year-over-year. However, the company reported diluted EPS of $0.51, which fell shy of expectations of…
- 10-K · February 24, 2026
- Invesco reports a diversified global asset manager with approximately $2.2 trillion of AUM as of December 31, 2025 and a large retail footprint (retail AUM $1,515.7 billion). The 10-K emphasizes four strategic…
- 10-Q · November 4, 2025
- Invesco reported Q3 2025 operating revenues of $1,640.4 million, up $125.0 million (+8.3%) versus Q3 2024, with operating income improving to $270.9 million from $100.5 million and diluted EPS rising to $0.66 from…
- 10-Q · August 1, 2025
- Invesco reported Q2 2025 operating revenues of $1,515.5 million, up $32.2 million (+2.2%) versus Q2 2024, and six‑month revenues of $3,044.7 million, up $86.1 million (+2.9%) year‑over‑year. Operating income improved to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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