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Franklin Templeton (BEN) FY2025 results: revenue $8.8 billion, up 3.5% on the year

Franklin Templeton Inc. (BEN) reported revenue of $8.8 billion for fiscal 2025, the year ended 30 September 2025, up 3.5% on the year before. Net income was $525 million, up 12.9%, and diluted earnings per share $0.91. The figures are the company's own, from the 10-K it filed with the SEC on 10 November 2025.

Revenue
$8.8 billion
+3.5% on the year
FY2018FY2025
Operating margin
6.9%
4.8% a year earlier
FY2018FY2025
Net income
$525 million
+12.9% on the year
FY2018FY2025
Diluted EPS
$0.91
+7.1% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Operating income fell from prior quarter: Operating income was $85.4 million, against $154.1 million in the prior quarter and an operating loss of $150.7 million a year earlier. Operating margin was 3.6%.
  • Ending AUM rose on market gains: Ending AUM was $1,661.2 billion, up $49.4 billion from the prior quarter. Net market change, distributions and other added $54.1 billion.
  • Long-term net outflows widened: Long-term net outflows were $11.9 billion, against $9.3 billion in the prior quarter. Long-term inflows were $84.6 billion and long-term outflows were $96.5 billion.
  • Excluding Western, net inflows positive: Excluding Western Asset Management, net inflows were $11.4 billion, the eighth consecutive quarter of positive flows on that basis. Western Asset had $23.3 billion of long-term net outflows.
  • Adjusted operating margin rose to 26.0%: Adjusted operating income was $472.4 million, up 25% from the prior quarter. Adjusted operating margin was 26.0%, against 23.7%.
Read the Q4 FY2025 earnings call summary

From this 10-K

Franklin Resources is a holding company whose subsidiaries operate under the Franklin Templeton name and under their own brand names, and it reports one operating segment, investment management and related services. Assets under management were over $1.6 trillion as of 30 September 2025, and that is client money rather than the firm's own. The company and its predecessors have been in the investment management and related services business since 1947, and Franklin was incorporated in Delaware in November 1969. Services reach retail, institutional and high-net-worth investors in jurisdictions worldwide, both directly and through financial intermediaries.

Franklin Templeton Inc., the 10-K for 2025

Franklin Resources is a holding company whose subsidiaries operate under the Franklin Templeton name and under their own brand names, and it reports one operating segment, investment management and related services. Assets under management were over $1.6 trillion as of 30 September 2025, and that is client money rather than the firm's own. The company and its predecessors have been in the investment management and related services business since 1947, and Franklin was incorporated in Delaware in November 1969. Services reach retail, institutional and high-net-worth investors in jurisdictions worldwide, both directly and through financial intermediaries.

The brands

The products are sold under distinct brand names including Alcentra, Apera, Benefit Street Partners, Brandywine Global Investment Management, Canvas, Clarion Partners, ClearBridge Investments, Fiduciary Trust International, Franklin, Franklin Mutual Series, K2, Legg Mason, Lexington Partners, O'Shaughnessy, Putnam, Royce, Templeton and Western Asset Management Company. The business has been expanded in part by acquiring companies in investment management, adding among others the Templeton global investment firm in 1992, Franklin Mutual Series in 1996, the Franklin Bissett Canadian investment firm in 2000, Fiduciary Trust International in 2001, the Benefit Street Partners alternative credit manager in 2019, Athena Capital Advisors in March 2020, The Pennsylvania Trust Company in May 2020, the Legg Mason global investment firm in July 2020 and O'Shaughnessy Asset Management in December 2021.

The specialist investment managers include subsidiaries registered with the Securities and Exchange Commission as investment advisers under the Investment Advisers Act of 1940, and subsidiaries registered as investment adviser equivalents in jurisdictions including Australia, Brazil, Canada, China, Commonwealth of The Bahamas, Hong Kong, Ireland, India, Japan, Luxembourg, Malaysia, Mexico, Saudi Arabia, Singapore, Switzerland, South Korea, the United Arab Emirates, the U.K. and Uzbekistan.

What it manages

Client assets are reported across equity, fixed income, alternative, multi-asset and cash management. At 30 September 2025 equity held $686.2 billion, or 41% of the total; fixed income $438.7 billion, 26%; alternative $263.9 billion, 16%; and multi-asset $193.9 billion, 12%.

The equity capabilities cover value, deep value, core value, blend, growth and growth at a reasonable price, convertibles, sector, Shariah, smart beta and thematic investments. Fixed income covers government, municipals, corporate credit, bank loans, securitized and multi-sector investments. Alternatives cover private debt, hedge funds, private equity, real estate and infrastructure. Multi-asset covers income, real return, balanced and hybrid, total return, target date and target risk, absolute return, tactical asset allocation and managed volatility.

The vehicles

The U.S. funds are U.S. mutual funds, closed-end funds, ETFs, private funds, sub-advised funds and other products. The non-U.S. funds are cross-border funds principally domiciled in Luxembourg or Ireland and registered for sale to non-U.S. investors in certain other countries, plus locally domiciled funds and products built for a particular local market. Institutional separate account services are run for institutions globally, and retail separately managed accounts, commonly known as managed accounts or wrap programs, are sponsored by various financial institutions. Fees for investment management services are generally based on a percentage of assets under management, varying with the asset classes of the accounts, the types of services provided and the market for those services.

The alternative products include private credit funds and structured products, business development companies, hedge funds such as funds of funds and custom advisory solutions, private equity funds, secondary private equity funds, venture capital funds and real estate funds, run with strategies including loan origination, collateralized loan obligations, high-yield credit, hedge fund advisory, private equity and infrastructure transactions in emerging markets, global macro, consumer loans and direct real estate investments.

The private client side

Fiduciary Trust International and its related subsidiaries provide investment management and related services to high-net-worth individuals and families, family offices, foundations and institutional clients, across different investment styles and asset classes. The majority of those client assets are actively managed by individual portfolio managers, while a number of clients also seek multi-manager, multi-asset class solutions. The firm may also provide separately managed accounts, private funds, and trust, custody and related services including administration, performance measurement, estate planning and tax planning.

From Franklin Resources' annual report on Form 10-K for the year ended 30 September 2025. The filing

Written from the 10-K filed 10 November 2025: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue8,7718,4787,849+3.5%
Operating income6044081,102+48.2%
Operating margin6.9%4.8%14.0%
Interest expense94.997.2124-2.4%
Pre-tax income7878231,338-4.4%
Income tax238215312+10.5%
Effective tax rate30.2%26.2%23.3%
Net income525465883+12.9%
Net margin6.0%5.5%11.2%
Diluted EPS$0.91$0.85$1.72+7.1%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow1,0669711,089+9.8%
Capital expenditure154177149-12.8%
Free cash flow912794940+14.8%
Free cash flow margin10.4%9.4%12.0%
Cash from investing-2,343-2,424-3,610
Cash from financing4521,4162,107-68.0%
Depreciation and amortisation125116104+7.6%
Share-based compensation215246183-12.7%
Buybacks240274256-12.4%
Dividends paid684656607+4.2%
Dividend per share$1.28$1.24$1.20+3.2%
Diluted shares, weighted517m510m491m+1.4%
Shares outstanding at period end521m524m496m-0.5%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity12,07812,50811,917-3.4%
Non-controlling interest929735631+26.4%
Redeemable equity1,1821,3221,026-10.6%
Debt2,3622,7803,053-15.0%
Other liabilities15,81815,11913,494+4.6%
Total liabilities and equity32,36832,46430,121-0.3%
Fixed assets949946800+0.3%
Goodwill6,2066,2116,004-0.1%
Intangible assets4,1664,8024,902-13.2%
Cash and equivalents3,5744,4094,402-18.9%
Other assets17,47316,09614,013+8.6%
Total assets32,36832,46430,121-0.3%

10-K for the year ended 30 September 2025, filed 10 November 2025: the filing.