filings.toolsItem 1. Financial Statements.
97K characters. Original on sec.gov · Markdown
Item 1. Financial Statements.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
| 9/30/2025 | 12/31/2024 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 3,634.8 | $ | 2,649.8 | |||||||
| Accounts receivable and accrued revenue | 899.4 | 877.4 | |||||||||
| Investments | 3,417.4 | 3,000.5 | |||||||||
| Assets of consolidated investment products ($1,599.8 million at September 30, 2025 and $1,555.6 million at December 31, 2024, related to variable interest entities) | 1,777.7 | 2,044.0 | |||||||||
| Operating lease assets | 392.2 | 226.8 | |||||||||
| Property, equipment and software, net | 980.9 | 977.0 | |||||||||
| Intangible assets, net | 294.6 | 368.1 | |||||||||
| Goodwill | 2,642.8 | 2,642.8 | |||||||||
| Other assets | 690.6 | 685.6 | |||||||||
| Total assets | $ | 14,730.4 | $ | 13,472.0 | |||||||
| LIABILITIES | |||||||||||
| Accounts payable and accrued expenses | $ | 349.5 | $ | 353.5 | |||||||
| Liabilities of consolidated investment products ($21.7 million at September 30, 2025 and $46.2 million at December 31, 2024, related to variable interest entities) | 22.7 | 62.1 | |||||||||
| Operating lease liabilities | 455.1 | 278.7 | |||||||||
| Accrued compensation and related costs | 793.8 | 219.8 | |||||||||
| Deferred compensation liabilities | 1,093.2 | 1,020.7 | |||||||||
| Income taxes payable | 46.7 | 87.1 | |||||||||
| Total liabilities | 2,761.0 | 2,021.9 | |||||||||
| Commitments and contingent liabilities | |||||||||||
| Redeemable non-controlling interests | 984.9 | 944.0 | |||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||
| Preferred stock, undesignated, $0.20 par value – authorized and unissued 20,000,000 shares | — | — | |||||||||
| Common stock, $0.20 par value—authorized 750,000,000; issued 218,684,000 shares at September 30, 2025 and 222,966,000 at December 31, 2024 | 43.7 | 44.6 | |||||||||
| Additional capital in excess of par value | — | 311.9 | |||||||||
| Retained earnings | 10,817.3 | 10,040.6 | |||||||||
| Accumulated other comprehensive loss | (46.5) | (51.7) | |||||||||
| Total stockholders’ equity attributable to T. Rowe Price Group, Inc. | 10,814.5 | 10,345.4 | |||||||||
| Non-controlling interests in consolidated entities | 170.0 | 160.7 | |||||||||
| Total permanent stockholders’ equity | 10,984.5 | 10,506.1 | |||||||||
| Total liabilities, redeemable non-controlling interests, and permanent stockholders’ equity | $ | 14,730.4 | $ | 13,472.0 |
The accompanying notes are an integral part of these statements.
Page 2
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per-share amounts)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| 9/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Investment advisory fees | $ | 1,698.7 | $ | 1,627.3 | $ | 4,864.7 | $ | 4,732.5 | |||||||||||||||
| Performance-based advisory fees | 6.4 | 5.6 | 23.2 | 40.0 | |||||||||||||||||||
| Capital allocation-based income | 42.0 | 4.6 | 40.4 | 51.8 | |||||||||||||||||||
| Administrative, distribution, services, and other fees | 146.4 | 148.1 | 452.4 | 444.8 | |||||||||||||||||||
| Net revenues | 1,893.5 | 1,785.6 | 5,380.7 | 5,269.1 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Compensation and related costs | 714.3 | 678.3 | 2,106.5 | 2,048.4 | |||||||||||||||||||
| Distribution and servicing | 95.8 | 91.6 | 281.9 | 261.2 | |||||||||||||||||||
| Advertising and promotion | 21.3 | 20.8 | 77.3 | 79.4 | |||||||||||||||||||
| Product and recordkeeping related costs | 78.7 | 75.0 | 237.3 | 223.0 | |||||||||||||||||||
| Technology, occupancy, and facility costs | 183.2 | 164.0 | 530.2 | 474.8 | |||||||||||||||||||
| General, administrative, and other | 101.7 | 104.2 | 314.5 | 305.5 | |||||||||||||||||||
| Change in fair value of contingent consideration | — | (13.4) | — | (13.4) | |||||||||||||||||||
| Acquisition-related amortization and impairment costs | 26.8 | 51.5 | 86.7 | 125.3 | |||||||||||||||||||
| Restructuring charge | 28.5 | — | 28.5 | — | |||||||||||||||||||
| Total operating expenses | 1,250.3 | 1,172.0 | 3,662.9 | 3,504.2 | |||||||||||||||||||
| Net operating income | 643.2 | 613.6 | 1,717.8 | 1,764.9 | |||||||||||||||||||
| Non-operating income (loss) | |||||||||||||||||||||||
| Net gains (losses) on investments | 161.2 | 119.0 | 359.0 | 318.5 | |||||||||||||||||||
| Net gains (losses) on consolidated investment products | 72.6 | 85.9 | 183.1 | 166.7 | |||||||||||||||||||
| Other gains (losses), including foreign currency gains (losses) | 4.6 | 7.6 | 2.5 | (3.5) | |||||||||||||||||||
| Total non-operating income (loss) | 238.4 | 212.5 | 544.6 | 481.7 | |||||||||||||||||||
| Income before income taxes | 881.6 | 826.1 | 2,262.4 | 2,246.6 | |||||||||||||||||||
| Provision for income taxes | 195.1 | 185.7 | 514.7 | 527.5 | |||||||||||||||||||
| Net income | 686.5 | 640.4 | 1,747.7 | 1,719.1 | |||||||||||||||||||
| Less: net income (loss) attributable to redeemable non-controlling interests | 40.4 | 37.4 | 105.9 | 58.9 | |||||||||||||||||||
| Net income attributable to T. Rowe Price Group, Inc. | $ | 646.1 | $ | 603.0 | $ | 1,641.8 | $ | 1,660.2 | |||||||||||||||
| Earnings per share on common stock of T. Rowe Price Group, Inc. | |||||||||||||||||||||||
| Basic | $ | 2.88 | $ | 2.64 | $ | 7.26 | $ | 7.25 | |||||||||||||||
| Diluted | $ | 2.87 | $ | 2.64 | $ | 7.25 | $ | 7.23 |
The accompanying notes are an integral part of these statements.
Page 3
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| 9/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | ||||||||||||||||||||
| Net income | $ | 686.5 | $ | 640.4 | $ | 1,747.7 | $ | 1,719.1 | |||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| Currency translation adjustments | |||||||||||||||||||||||
| Consolidated investment products - variable interest entities | (5.2) | 16.9 | 22.2 | 13.1 | |||||||||||||||||||
| Reclassification (gains) losses recognized in non-operating income upon deconsolidation of certain investment products | — | 0.6 | (3.1) | 0.6 | |||||||||||||||||||
| Equity method investments | (0.2) | 0.1 | (3.7) | 0.6 | |||||||||||||||||||
| Other comprehensive income (loss) before income taxes | (5.4) | 17.6 | 15.4 | 14.3 | |||||||||||||||||||
| Net deferred tax (expense) benefit | 0.7 | (0.5) | (2.0) | (0.1) | |||||||||||||||||||
| Total other comprehensive income (loss) | (4.7) | 17.1 | 13.4 | 14.2 | |||||||||||||||||||
| Total comprehensive income | 681.8 | 657.5 | 1,761.1 | 1,733.3 | |||||||||||||||||||
| Less: comprehensive income attributable to redeemable non-controlling interests | 37.6 | 44.8 | 114.1 | 65.1 | |||||||||||||||||||
| Comprehensive income attributable to T. Rowe Price Group, Inc. | $ | 644.2 | $ | 612.7 | $ | 1,647.0 | $ | 1,668.2 |
The accompanying notes are an integral part of these statements.
Page 4
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
| Nine months ended | |||||||||||
| 9/30/2025 | 9/30/2024 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 1,747.7 | $ | 1,719.1 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
| Depreciation, amortization and impairment of property, equipment and software | 203.7 | 188.4 | |||||||||
| Amortization and impairment of acquisition-related assets and retention arrangements | 165.8 | 196.5 | |||||||||
| Fair value remeasurement of contingent consideration liability | — | (13.4) | |||||||||
| Stock-based compensation expense | 134.2 | 162.2 | |||||||||
| Net gains recognized on investments | (347.5) | (332.1) | |||||||||
| Net redemptions in investment products used to economically hedge deferred compensation liabilities | 110.0 | 29.8 | |||||||||
| Net change in securities held by consolidated investment products | (821.4) | (517.9) | |||||||||
| Other changes in assets and liabilities | 579.6 | 534.9 | |||||||||
| Net cash provided by operating activities | 1,772.1 | 1,967.5 | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchases of sponsored investment products | (134.9) | (89.4) | |||||||||
| Dispositions of sponsored investment products | 473.0 | 303.1 | |||||||||
| Net cash of investment products upon consolidation (deconsolidation) | (35.8) | (15.7) | |||||||||
| Additions to property, equipment and software | (207.5) | (310.4) | |||||||||
| Other investing activity | (113.7) | (42.6) | |||||||||
| Net cash used in investing activities | (18.9) | (155.0) | |||||||||
| Cash flows from financing activities | |||||||||||
| Repurchases of common stock | (481.8) | (269.1) | |||||||||
| Common share issuances under stock-based compensation plans | 30.2 | 28.1 | |||||||||
| Dividends paid to common stockholders and equity-unit holders | (858.5) | (851.0) | |||||||||
| Net contributions (distributions) to non-controlling interests in consolidated entities | (5.6) | 2.6 | |||||||||
| Net subscriptions from redeemable non-controlling interest holders | 530.1 | 361.2 | |||||||||
| Net cash used in financing activities | (785.6) | (728.2) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents of consolidated investment products | 3.4 | 0.5 | |||||||||
| Net change in cash and cash equivalents during period | 971.0 | 1,084.8 | |||||||||
| Cash and cash equivalents at beginning of period, including $63.1 million at December 31, 2024, and $77.2 million at December 31, 2023, held by consolidated investment products | 2,712.9 | 2,143.8 | |||||||||
| Cash and cash equivalents at end of period, including $49.1 million at September 30, 2025, and $55.1 million at September 30, 2024, held by consolidated investment products | $ | 3,683.9 | $ | 3,228.6 |
The accompanying notes are an integral part of these statements.
Page 5
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(shares in thousands; dollars in millions)
| Three months ended 9/30/2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares outstanding | Common stock | Additional capital in excess of par value | Retained earnings | AOCI**(1)** | Total stockholders’ equity attributable to T. Rowe Price Group, Inc. | Non-controlling interests in consolidated entities | Total permanent stockholders’ equity | Redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||
| Balances at June 30, 2025 | 219,902 | $ | 44.0 | $ | 99.8 | $ | 10,461.3 | $ | (44.6) | $ | 10,560.5 | $ | 153.3 | $ | 10,713.8 | $ | 1,099.1 | ||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | 646.1 | — | 646.1 | 16.8 | 662.9 | 40.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | (1.9) | (1.9) | — | (1.9) | (2.8) | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared ($1.27 per share) | — | — | — | (283.8) | — | (283.8) | — | (283.8) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock-based compensation plans activity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon option exercises | 232 | — | 14.4 | — | — | 14.4 | — | 14.4 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net shares issued upon vesting of restricted stock units | 8 | — | (0.4) | — | — | (0.4) | — | (0.4) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 37.3 | — | — | 37.3 | — | 37.3 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock units issued as dividend equivalents | — | — | 0.3 | (0.3) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | (1,458) | (0.3) | (151.4) | (6.0) | — | (157.7) | — | (157.7) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net contributions to non-controlling interests in consolidated entities | — | — | — | — | — | — | (0.1) | (0.1) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net subscriptions into T. Rowe Price investment products | — | — | — | — | — | — | — | — | 290.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Net deconsolidations of T. Rowe Price investment products | — | — | — | — | — | — | — | — | (441.9) | ||||||||||||||||||||||||||||||||||||||||||||
| Balances at September 30, 2025 | 218,684 | $ | 43.7 | $ | — | $ | 10,817.3 | $ | (46.5) | $ | 10,814.5 | $ | 170.0 | $ | 10,984.5 | $ | 984.9 |
| Three months ended 9/30/2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares outstanding | Common stock | Additional capital in excess of par value | Retained earnings | AOCI**(1)** | Total stockholders’ equity attributable to T. Rowe Price Group, Inc. | Non-controlling interests in consolidated entities | Total permanent stockholders’ equity | Redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||
| Balances at June 30, 2024 | 222,612 | $ | 44.5 | $ | 368.8 | $ | 9,564.6 | $ | (49.2) | $ | 9,928.7 | $ | 205.3 | $ | 10,134.0 | $ | 689.0 | ||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | 603.0 | — | 603.0 | (2.0) | 601.0 | 37.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | 9.7 | 9.7 | — | 9.7 | 7.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared ($1.24 per share) | — | — | — | (282.2) | — | (282.2) | — | (282.2) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock-based compensation plans activity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon option exercises | 187 | — | 12.1 | — | — | 12.1 | — | 12.1 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net shares issued upon vesting of restricted stock units | 8 | — | (0.2) | — | — | (0.2) | — | (0.2) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 49.5 | — | — | 49.5 | — | 49.5 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock units issued as dividend equivalents | — | — | 0.1 | (0.1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | (664) | (0.1) | (71.2) | — | — | (71.3) | — | (71.3) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net contributions to non-controlling interests in consolidated entities | — | — | — | — | — | — | 0.1 | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net subscriptions into T. Rowe Price investment products | — | — | — | — | — | — | — | — | 190.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Net deconsolidations of T. Rowe Price investment products | — | — | — | — | — | — | — | — | (160.6) | ||||||||||||||||||||||||||||||||||||||||||||
| Balances at September 30, 2024 | 222,143 | $ | 44.4 | $ | 359.1 | $ | 9,885.3 | $ | (39.5) | $ | 10,249.3 | $ | 203.4 | $ | 10,452.7 | $ | 763.4 |
(1) Accumulated other comprehensive income.
The accompanying notes are an integral part of these statements.
Page 6
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(shares in thousands; dollars in millions)
| Nine months ended 9/30/2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares outstanding | Common stock | Additional capital in excess of par value | Retained earnings | AOCI**(1)** | Total stockholders’ equity attributable to T. Rowe Price Group, Inc. | Non-controlling interests in consolidated entities | Total permanent stockholders’ equity | Redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||
| Balances at December 31, 2024 | 222,966 | $ | 44.6 | $ | 311.9 | $ | 10,040.6 | $ | (51.7) | $ | 10,345.4 | $ | 160.7 | $ | 10,506.1 | $ | 944.0 | ||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | 1,641.8 | — | 1,641.8 | 14.9 | 1,656.7 | 105.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | 5.2 | 5.2 | — | 5.2 | 8.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared ($3.81 per share) | — | — | — | (858.7) | — | (858.7) | — | (858.7) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock-based compensation plans activity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon option exercises | 496 | 0.1 | 31.5 | — | — | 31.6 | — | 31.6 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Restricted shares issued, net of shares withheld for taxes | 8 | — | (0.2) | — | — | (0.2) | — | (0.2) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net shares issued upon vesting of restricted stock units | 23 | — | (1.0) | — | — | (1.0) | — | (1.0) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 134.2 | — | — | 134.2 | — | 134.2 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock units issued as dividend equivalents | — | — | 0.4 | (0.4) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | (4,809) | (1.0) | (476.8) | (6.0) | — | (483.8) | — | (483.8) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net distributions to non-controlling interests in consolidated entities | — | — | — | — | — | — | (5.6) | (5.6) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net subscriptions into T. Rowe Price investment products | — | — | — | — | — | — | — | — | 549.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Net deconsolidations of T. Rowe Price investment products | — | — | — | — | — | — | — | — | (623.0) | ||||||||||||||||||||||||||||||||||||||||||||
| Balances at September 30, 2025 | 218,684 | $ | 43.7 | $ | — | $ | 10,817.3 | $ | (46.5) | $ | 10,814.5 | $ | 170.0 | $ | 10,984.5 | $ | 984.9 | ||||||||||||||||||||||||||||||||||||
| Nine months ended 9/30/2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares outstanding | Common stock | Additional capital in excess of par value | Retained earnings | AOCI**(1)** | Total stockholders’ equity attributable to T. Rowe Price Group, Inc. | Non-controlling interests in consolidated entities | Total permanent stockholders’ equity | Redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||
| Balances at December 31, 2023 | 223,938 | $ | 44.8 | $ | 431.7 | $ | 9,076.1 | $ | (47.5) | $ | 9,505.1 | $ | 192.0 | $ | 9,697.1 | $ | 594.1 | ||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | 1,660.2 | — | 1,660.2 | 8.8 | 1,669.0 | 58.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | 8.0 | 8.0 | — | 8.0 | 6.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared ($3.72 per share) | — | — | — | (850.7) | — | (850.7) | — | (850.7) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock-based compensation plans activity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon option exercises | 482 | 0.1 | 30.4 | — | — | 30.5 | — | 30.5 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Restricted shares issued, net of shares withheld for taxes | 7 | — | (0.3) | — | — | (0.3) | — | (0.3) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net shares issued upon vesting of restricted stock units | 64 | — | (2.0) | — | — | (2.0) | — | (2.0) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 162.2 | — | — | 162.2 | — | 162.2 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock units issued as dividend equivalents | — | — | 0.3 | (0.3) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | (2,348) | (0.5) | (263.2) | — | — | (263.7) | — | (263.7) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net contributions to non-controlling interests in consolidated entities | — | — | — | — | — | — | 2.6 | 2.6 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Net subscriptions into T. Rowe Price investment products | — | — | — | — | — | — | — | — | 361.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Net deconsolidations of T. Rowe Price investment products | — | — | — | — | — | — | — | — | (256.8) | ||||||||||||||||||||||||||||||||||||||||||||
| Balances at September 30, 2024 | 222,143 | $ | 44.4 | $ | 359.1 | $ | 9,885.3 | $ | (39.5) | $ | 10,249.3 | $ | 203.4 | $ | 10,452.7 | $ | 763.4 |
(1) Accumulated other comprehensive income.
The accompanying notes are an integral part of these statements.
Page 7
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – THE COMPANY AND BASIS OF PREPARATION.
T. Rowe Price Group, Inc. derives its consolidated revenues and net income primarily from investment advisory services that its subsidiaries provide to individual and institutional investors that invest in a broad range of investment solutions across equity, fixed income, multi-asset, and alternative capabilities. We also provide certain investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting, and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; trust services; and non-discretionary advisory services.
The investment solutions are provided in a number of vehicles including the T. Rowe Price U.S. mutual funds ("U.S. mutual funds"), subadvised funds, separately managed accounts, collective investment trusts, exchange-traded funds, and other sponsored products. The other sponsored products include: open-ended investment products offered to investors outside the U.S., products offered through variable annuity life insurance plans in the U.S., affiliated private investment funds, business development companies, an interval fund, and collateralized loan obligations.
Investment advisory fees depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management impact our revenues and results of operations.
BASIS OF PRESENTATION.
These unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These principles require the use of estimates and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of our results for the interim periods presented. All such adjustments are of a normal recurring nature. Actual results may vary from our estimates. We are reporting performance-based advisory fees in a separate line of the consolidated income statement to increase transparency, therefore, investment advisory fees for prior periods were recast to reflect the new presentation and ensure comparability.
The unaudited financial information contained in these consolidated financial statements should be read in conjunction with the consolidated financial statements contained in our 2024 Annual Report.
NEWLY ENACTED U.S. LEGISLATION.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA contains significant changes and modifications to federal and international tax provisions including 100% bonus depreciation and domestic research cost expensing. We continue evaluating the impact of the legislation on our estimated annual effective tax rate. We believe that the impact of the OBBBA’s provisions will not be material to our financial position and results of operations.
NEWLY ISSUED BUT NOT YET ADOPTED ACCOUNTING GUIDANCE.
In December 2023, the FASB issued Accounting Standards Update No. 2023-09 - Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation as well as disclosure of income taxes paid disaggregated by jurisdiction. This amendment is effective for our 2025 annual disclosures. The additional disclosure requirements will not have a material impact on our consolidated financial statements.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03 - Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-4): Disaggregation of Income Statement Expenses, which requires disclosures of additional information and disaggregation of certain expenses included in the income statement. The guidance is effective for the firm on January 1, 2027, and allows for either a prospective or retrospective approach on adoption. We are currently evaluating the impact that the adoption will have on our financial statements and have not yet determined our transition approach.
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We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our unaudited consolidated statements, including those we have not yet adopted. We do not believe that any such guidance has or will have a material effect on our financial position or results of operations.
NOTE 2 – INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES.
Net revenues earned in the three- and nine-month periods ended September 30, 2025 and 2024, are included in the table below along with details of investment advisory revenues by underlying asset class. We also included average assets under management by asset class, on which we earn investment advisory fees.
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 9/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment advisory fees | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | $ | 1,011.8 | $ | 978.5 | $ | 2,894.6 | $ | 2,858.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income, including money market | 110.1 | 104.1 | 319.2 | 304.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-asset | 492.1 | 465.8 | 1,402.7 | 1,340.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alternatives | 84.7 | 78.9 | 248.2 | 229.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total investment advisory fees | $ | 1,698.7 | $ | 1,627.3 | $ | 4,864.7 | $ | 4,732.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Performance-based advisory fees | 6.4 | 5.6 | 23.2 | 40.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital allocation-based income (loss) | 42.0 | 4.6 | 40.4 | 51.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Administrative, distribution, services, and other fees | 146.4 | 148.1 | 452.4 | 444.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 1,893.5 | $ | 1,785.6 | $ | 5,380.7 | $ | 5,269.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Average AUM (in billions): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | $ | 865.8 | $ | 813.1 | $ | 825.7 | $ | 791.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income, including money market | 203.8 | 183.3 | 197.8 | 175.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-asset | 597.7 | 542.3 | 566.8 | 519.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alternatives | 55.7 | 50.8 | 54.1 | 49.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average AUM | $ | 1,723.0 | $ | 1,589.5 | $ | 1,644.4 | $ | 1,536.2 |
Total net revenues earned from sponsored investment products totaled $1,594.2 million and $1,486.5 million for the three months ended September 30, 2025 and 2024, respectively. Total net revenues earned during the nine months ended September 30, 2025 and 2024 aggregate $4,500.7 million and $4,359.5 million, respectively. Accounts receivable from these products totaled $628.2 million at September 30, 2025 and $602.0 million at December 31, 2024.
Investors that we serve are primarily domiciled in the U.S.; investment advisory clients outside the U.S. account for 8.7% at September 30, 2025, 8.7% at June 30, 2025, and 8.8% at December 31, 2024 of our assets under management.
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NOTE 3 – INVESTMENTS.
The carrying values of our investments that are not consolidated investment products are as follows:
| (in millions) | 9/30/2025 | 12/31/2024 | |||||||||
| Investments held at fair value | |||||||||||
| T. Rowe Price investment products | |||||||||||
| Discretionary investments | $ | 572.4 | $ | 258.8 | |||||||
| Seed capital | 345.7 | 262.8 | |||||||||
| Deferred compensation liabilities economic hedges | 1,060.2 | 992.8 | |||||||||
| Investment partnerships and other investments | 180.3 | 62.6 | |||||||||
| Investments in affiliated collateralized loan obligations | 3.8 | 6.3 | |||||||||
| Equity method investments | |||||||||||
| T. Rowe Price investment products | |||||||||||
| Discretionary investments | 20.2 | 60.8 | |||||||||
| Seed capital | 37.5 | 128.8 | |||||||||
| Deferred compensation liabilities economic hedges | 50.6 | 88.4 | |||||||||
| Investment in UTI Asset Management Company Limited (India) | 165.7 | 173.5 | |||||||||
| Investments in affiliated private investment funds - carried interest | 413.1 | 426.9 | |||||||||
| Investments in affiliated private investment funds - seed/co-investment | 292.7 | 269.9 | |||||||||
| Investment partnerships and other investments | 189.4 | 162.1 | |||||||||
| Held to maturity | |||||||||||
| Investments in affiliated collateralized loan obligations | 34.4 | 61.1 | |||||||||
| Certificates of deposit | 50.4 | 44.7 | |||||||||
| U.S. Treasury note | 1.0 | 1.0 | |||||||||
| Total | $ | 3,417.4 | $ | 3,000.5 |
The investment partnerships held at fair value are valued using net asset value (“NAV”) per share as a practical expedient. Our interests in these partnerships are generally not redeemable and are subject to significant transferability restrictions. The underlying investments of these partnerships have contractual terms through 2029, though we may receive distributions of liquidating assets over a longer term. The investment strategies of these partnerships include growth equity, buyout, venture capital, and real estate.
During the three- and nine-months ended September 30, 2025, net gains on investments included $80.8 million and $165.9 million, respectively, of net unrealized gains related to investments carried at fair value that were still held at September 30, 2025. For the same periods of 2024, net gains on investments included $44.3 million and $129.3 million, respectively, of net unrealized gains related to investments carried at fair value that were still held at September 30, 2024.
During the nine months ended September 30, 2025 and 2024, certain T. Rowe Price investment products in which we provided initial seed capital at the time of formation were deconsolidated, as we no longer had a controlling interest. Depending on our ownership interest, we report our residual interests in these T. Rowe Price investment products as either an equity method investment or an investment held at fair value. The net impact on our unaudited consolidated balance sheets and statements of income as of the dates the products were deconsolidated is detailed below.
| Three months ended | Nine months ended | ||||||||||||||||||||||
| (in millions) | 9/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | |||||||||||||||||||
| Net increase (decrease) in assets of consolidated investment products | $ | (552.8) | $ | (371.7) | $ | (1,156.9) | $ | (643.5) | |||||||||||||||
| Net increase (decrease) in liabilities of consolidated investment products | $ | (17.6) | $ | (14.6) | $ | (42.9) | $ | (19.5) | |||||||||||||||
| Net increase (decrease) in redeemable non-controlling interests | $ | (441.9) | $ | (160.6) | $ | (623.0) | $ | (256.8) | |||||||||||||||
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VARIABLE INTEREST ENTITIES.
Our fair value and equity method investments at September 30, 2025 and December 31, 2024 include interests in variable interest entities that we do not consolidate as we are not deemed the primary beneficiary. Our maximum risk of loss related to our involvement with these entities is as follows:
| (in millions) | 9/30/2025 | 12/31/2024 | |||||||||
| Investment carrying values | $ | 1,040.2 | $ | 955.9 | |||||||
| Unfunded capital commitments | 221.4 | 202.5 | |||||||||
| Accounts receivable | 94.9 | 96.2 | |||||||||
| $ | 1,356.5 | $ | 1,254.6 |
We have unfunded capital commitments, totaling $221.4 million at September 30, 2025 and $202.5 million at December 31, 2024, related primarily to the affiliated private investment funds and the investment partnerships in which we have an existing investment. In addition to such amounts, a percentage of prior distributions may be recalled under certain circumstances.
Investments in affiliated private investment funds - carried interest represent interests in the general partners of affiliated private investment funds that are entitled to a disproportionate allocation of income, also known as carried interest. The entities that hold these interests (“carried interest entities”) are considered variable interest entities and are consolidated as T. Rowe Price is determined to be the primary beneficiary. The total assets, liabilities and non-controlling interests of these carried interest entities as of September 30, 2025 and December 31, 2024, are as follows:
| (in millions) | 9/30/2025 | 12/31/2024 | ||||||||||||
| Assets | $ | 455.9 | $ | 467.7 | ||||||||||
| Liabilities | $ | 0.8 | $ | 0.4 | ||||||||||
| Non-controlling interest | $ | 170.0 | $ | 160.7 |
INVESTMENTS IN AFFILIATED COLLATERALIZED LOAN OBLIGATIONS.
There is debt associated with our investments in affiliated collateralized loan obligations (“CLOs”). The debt relates to outstanding repurchase agreements of €29.3 million at September 30, 2025 and €56.9 million at December 31, 2024 (equivalent to $34.4 million at September 30, 2025 and $59.1 million at December 31, 2024 at the respective EUR spot rates) that are collateralized by the CLO investments and reported in accounts payable and accrued expenses in our consolidated balance sheets. These repurchase agreements bear interest at rates based on EURIBOR plus the initial margin, which equals all-in rates ranging from 2.02% to 10.89% as of September 30, 2025. The debt matures on various dates through 2035 or if the investments are paid back in full or cancelled, whichever is sooner.
NOTE 4 – FAIR VALUE MEASUREMENTS.
We determine the fair value of our cash equivalents and certain investments held at fair value using the following broad levels of inputs as defined by related accounting standards:
Level 1 – quoted prices in active markets for identical financial instruments accessible at the reporting date.
Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and credit spreads. These inputs are based on market data obtained from independent sources.
Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. The inputs into the determination of fair value require significant management judgment or estimation. Investments in this category generally include investments for which there is not an actively-traded market.
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These levels are not necessarily an indication of the risk or liquidity associated with our investments. The following table summarizes our investments and liabilities that are recognized in our unaudited consolidated balance sheets using fair value measurements determined based on the differing levels of inputs. This table excludes investments held by the consolidated investment products, which are presented separately in our unaudited consolidated balance sheets and are detailed in Note 5.
| 9/30/2025 | 12/31/2024 | ||||||||||||||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
| T. Rowe Price investment products | |||||||||||||||||||||||||||||||||||
| Cash equivalents held in money market funds | $ | 3,223.3 | $ | — | $ | — | $ | 2,309.8 | $ | — | $ | — | |||||||||||||||||||||||
| Discretionary investments | 572.4 | — | — | 258.8 | — | — | |||||||||||||||||||||||||||||
| Seed capital | 288.2 | 57.5 | — | 209.4 | 53.4 | — | |||||||||||||||||||||||||||||
| Deferred compensation liabilities economic hedges | 1,060.2 | — | — | 992.8 | — | — | |||||||||||||||||||||||||||||
| Other investments | 1.0 | — | 71.5 | 0.1 | — | — | |||||||||||||||||||||||||||||
| Investments in affiliated collateralized loan obligations | — | 3.8 | — | — | 6.3 | — | |||||||||||||||||||||||||||||
| Total | $ | 5,145.1 | $ | 61.3 | $ | 71.5 | $ | 3,770.9 | $ | 59.7 | $ | — | |||||||||||||||||||||||
The fair value hierarchy level table above does not include the investment partnerships and other investments for which fair value is estimated using their NAV per share as a practical expedient or using the measurement alternative. The carrying value of these investments as disclosed in Note 3 were $107.8 million at September 30, 2025, and $62.5 million at December 31, 2024.
The Level 3 investments’ fair value is derived from inputs that are unobservable and that reflect our own determinations about the assumptions that market participants would use in pricing the investments, including assumptions about risk. These inputs are developed based on our data, which is adjusted if information indicates that market participants would use different assumptions. For the nine months ended September 30, 2025, the change in Level 3 fair values were solely attributable to the purchases of new investments and there were no transfers into or out of Level 3. The following table provides information about the significant Level 3 inputs:
| Fair value measurements as of September 30, 2025 | |||||||||||||||||||||||
| (in millions) | Fair value | Valuation techniques | Unobservable inputs | Interest rate input | |||||||||||||||||||
| Other investments | $ | 71.5 | Market Yield (Comparables) | Yield | 8.99% |
NOTE 5 – CONSOLIDATED INVESTMENT PRODUCTS.
The investment products that we consolidate in our consolidated financial statements are generally those products we provided initial seed capital at the time of their formation and have a controlling interest. Our U.S. mutual funds and certain other products are considered voting interest entities, while those regulated outside the U.S. are considered variable interest entities.
The following table details the net assets of the consolidated investment products:
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| 9/30/2025 | 12/31/2024 | ||||||||||||||||||||||||||||||||||
| (in millions) | Voting interest entities | Variable interest entities | Total | Voting interest entities | Variable interest entities | Total | |||||||||||||||||||||||||||||
| Cash and cash equivalents(1) | $ | 1.9 | $ | 47.2 | $ | 49.1 | $ | 7.2 | $ | 55.9 | $ | 63.1 | |||||||||||||||||||||||
| Investments(2) | 174.3 | 1,531.1 | 1,705.4 | 470.8 | 1,465.4 | 1,936.2 | |||||||||||||||||||||||||||||
| Other assets | 1.7 | 21.5 | 23.2 | 10.4 | 34.3 | 44.7 | |||||||||||||||||||||||||||||
| Total assets | 177.9 | 1,599.8 | 1,777.7 | 488.4 | 1,555.6 | 2,044.0 | |||||||||||||||||||||||||||||
| Liabilities | 1.0 | 21.7 | 22.7 | 15.9 | 46.2 | 62.1 | |||||||||||||||||||||||||||||
| Net assets | $ | 176.9 | $ | 1,578.1 | $ | 1,755.0 | $ | 472.5 | $ | 1,509.4 | $ | 1,981.9 | |||||||||||||||||||||||
| Attributable to T. Rowe Price Group, Inc. | $ | 132.4 | $ | 637.7 | $ | 770.1 | $ | 348.5 | $ | 689.4 | $ | 1,037.9 | |||||||||||||||||||||||
| Attributable to redeemable non-controlling interests | 44.5 | 940.4 | 984.9 | 124.0 | 820.0 | 944.0 | |||||||||||||||||||||||||||||
| $ | 176.9 | $ | 1,578.1 | $ | 1,755.0 | $ | 472.5 | $ | 1,509.4 | $ | 1,981.9 |
(1) Cash and cash equivalents includes $1.4 million at September 30, 2025, and $4.9 million at December 31, 2024, of investments in T. Rowe Price money market mutual funds.
(2) Investments include $41.5 million at September 30, 2025, and $9.3 million at December 31, 2024, of other T. Rowe Price investment products.
Although we can generally redeem our net interest in the consolidated investment products at any time, we cannot directly access or sell the assets held by these products to obtain cash for general operations. Additionally, the assets of these investment products are not available to our general creditors.
Since third-party investors in these investment products have no recourse to our credit, our overall risk related to the net assets of consolidated investment products is limited to valuation changes associated with our net interest. However, we are required to recognize the valuation changes associated with all underlying investments held by these products in our consolidated statements of income and disclose the portion attributable to unrelated third-party investors as net income attributable to redeemable non-controlling interests.
The operating results of the consolidated investment products for the three- and nine-months ended September 30, 2025 and 2024, are reflected in our unaudited consolidated statements of income as follows:
| Three months ended | |||||||||||||||||||||||||||||||||||
| 9/30/2025 | 9/30/2024 | ||||||||||||||||||||||||||||||||||
| (in millions) | Voting interest entities | Variable interest entities | Total | Voting interest entities | Variable interest entities | Total | |||||||||||||||||||||||||||||
| Operating expenses reflected in net operating income | $ | (0.1) | $ | (2.1) | $ | (2.2) | $ | (0.5) | $ | (1.9) | $ | (2.4) | |||||||||||||||||||||||
| Net investment income (loss) reflected in non-operating income (loss) | 7.1 | 65.5 | 72.6 | 27.3 | 58.6 | 85.9 | |||||||||||||||||||||||||||||
| Impact on income before taxes | $ | 7.0 | $ | 63.4 | $ | 70.4 | $ | 26.8 | $ | 56.7 | $ | 83.5 | |||||||||||||||||||||||
| Net income (loss) attributable to T. Rowe Price Group, Inc. | $ | 5.4 | $ | 24.6 | $ | 30.0 | $ | 19.2 | $ | 26.9 | $ | 46.1 | |||||||||||||||||||||||
| Net income (loss) attributable to redeemable non-controlling interests | 1.6 | 38.8 | 40.4 | 7.6 | 29.8 | 37.4 | |||||||||||||||||||||||||||||
| $ | 7.0 | $ | 63.4 | $ | 70.4 | $ | 26.8 | $ | 56.7 | $ | 83.5 |
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| Nine months ended | |||||||||||||||||||||||||||||||||||
| 9/30/2025 | 9/30/2024 | ||||||||||||||||||||||||||||||||||
| (in millions) | Voting interest entities | Variable interest entities | Total | Voting interest entities | Variable interest entities | Total | |||||||||||||||||||||||||||||
| Operating expenses reflected in net operating income | $ | (0.4) | $ | (6.7) | $ | (7.1) | $ | (2.0) | $ | (5.3) | $ | (7.3) | |||||||||||||||||||||||
| Net investment income (loss) reflected in non-operating income (loss) | 24.6 | 158.5 | 183.1 | 57.0 | 109.7 | 166.7 | |||||||||||||||||||||||||||||
| Impact on income before taxes | $ | 24.2 | $ | 151.8 | $ | 176.0 | $ | 55.0 | $ | 104.4 | $ | 159.4 | |||||||||||||||||||||||
| Net income (loss) attributable to T. Rowe Price Group, Inc. | $ | 17.8 | $ | 52.3 | $ | 70.1 | $ | 42.0 | $ | 58.5 | $ | 100.5 | |||||||||||||||||||||||
| Net income (loss) attributable to redeemable non-controlling interests | 6.4 | 99.5 | 105.9 | 13.0 | 45.9 | 58.9 | |||||||||||||||||||||||||||||
| $ | 24.2 | $ | 151.8 | $ | 176.0 | $ | 55.0 | $ | 104.4 | $ | 159.4 |
The operating expenses of the consolidated investment products are reflected in general, administrative and other expenses. In preparing our unaudited consolidated financial statements, we eliminated operating expenses of $0.8 million and $1.3 million for the three months ended September 30, 2025 and 2024, respectively, against the investment advisory and administrative fees earned from these products. Operating expenses eliminated for the nine months ended September 30, 2025 and 2024, were $3.6 million and $3.0 million, respectively. The net investment income (loss) reflected in non-operating income (loss) includes dividend and interest income as well as realized and unrealized gains and losses on the underlying securities held by the consolidated investment products.
The table below details the impact of these consolidated investment products on the individual lines of our unaudited consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024.
| Nine months ended | |||||||||||||||||||||||||||||||||||
| 9/30/2025 | 9/30/2024 | ||||||||||||||||||||||||||||||||||
| (in millions) | Voting interest entities | Variable interest entities | Total | Voting interest entities | Variable interest entities | Total | |||||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (205.7) | $ | (440.8) | $ | (646.5) | $ | (170.5) | $ | (182.3) | $ | (352.8) | |||||||||||||||||||||||
| Net cash provided by (used in) investing activities | 0.7 | (36.5) | (35.8) | (14.7) | (1.0) | (15.7) | |||||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | 199.7 | 465.2 | 664.9 | 165.3 | 180.6 | 345.9 | |||||||||||||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents of consolidated investment products | — | 3.4 | 3.4 | — | 0.5 | 0.5 | |||||||||||||||||||||||||||||
| Net change in cash and cash equivalents during period | (5.3) | (8.7) | (14.0) | (19.9) | (2.2) | (22.1) | |||||||||||||||||||||||||||||
| Cash and cash equivalents at beginning of year | 7.2 | 55.9 | 63.1 | 25.7 | 51.5 | 77.2 | |||||||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 1.9 | $ | 47.2 | $ | 49.1 | $ | 5.8 | $ | 49.3 | $ | 55.1 |
For the nine months ended September 30, 2025, the net cash provided by (used in) financing activities includes $134.8 million of net subscriptions we made into the consolidated investment products, net of dividends received. For the nine months ended September 30, 2024, the net cash provided by (used in) financing activities included $15.3 million of net redemptions we made from the consolidated investment products. These cash flows were eliminated in consolidation.
FAIR VALUE MEASUREMENTS.
We determine the fair value of investments held by consolidated investment products using the following broad levels of inputs as defined by related accounting standards:
Level 1 – quoted prices in active markets for identical financial instruments accessible at the reporting date.
Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or similar financial instruments in
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inactive markets, interest rates and yield curves, implied volatilities, and credit spreads. These inputs are based on market data obtained from independent sources.
Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. The inputs into the determination of fair value require significant management judgment or estimation. Investments in this category generally include investments for which there is not an actively-traded market. There are no Level 3 investments at September 30, 2025 and December 31, 2024.
These levels are not necessarily an indication of the risk or liquidity associated with these investment holdings. The following table summarizes the investment holdings held by our consolidated investment products using fair value measurements determined based on the differing levels of inputs.
| 9/30/2025 | 12/31/2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | $ | 1.7 | $ | — | $ | 6.3 | $ | — | |||||||||||||||||||||||||||||||||||||||
| Equity securities | 493.7 | 378.5 | 452.3 | 285.4 | |||||||||||||||||||||||||||||||||||||||||||
| Fixed income securities | — | 813.5 | — | 1,173.5 | |||||||||||||||||||||||||||||||||||||||||||
| Other investments | 0.7 | 19.0 | 1.6 | 23.4 | |||||||||||||||||||||||||||||||||||||||||||
| $ | 496.1 | $ | 1,211.0 | $ | 460.2 | $ | 1,482.3 | ||||||||||||||||||||||||||||||||||||||||
| Liabilities | $ | (0.2) | $ | (6.0) | $ | (1.7) | $ | (14.5) |
NOTE 6 - GOODWILL AND INTANGIBLE ASSETS.
Goodwill and intangible assets consist of the following:
| (in millions) | 9/30/2025 | 12/31/2024 | |||||||||
| Goodwill | $ | 2,642.8 | $ | 2,642.8 | |||||||
| Indefinite-lived intangible asset - trade name | 86.0 | 86.0 | |||||||||
| Indefinite-lived intangible asset - investment advisory agreement | 62.3 | 65.6 | |||||||||
| Definite-lived intangible assets - investment advisory agreements | 146.3 | 216.5 | |||||||||
| Total | $ | 2,937.4 | $ | 3,010.9 |
Amortization and impairment expense for the definite-lived intangible assets was $22.3 million and $70.2 million for the three- and nine-months ended September 30, 2025, respectively. For the three- and nine-months ended September 30, 2024, amortization and impairment expense for the definite-lived intangible assets was $28.3 million and $81.0 million, respectively. Estimated amortization expense for the definite-lived intangible assets for the five succeeding years is as follows:
| (in millions) | |||||
| Remaining 2025 | $ | 20.4 | |||
| 2026 | $ | 54.6 | |||
| 2027 | $ | 39.1 | |||
| 2028 | $ | 11.8 | |||
| 2029 | $ | 8.8 | |||
We evaluate the carrying amount of goodwill and indefinite-lived intangible assets for possible impairment on an annual basis in the fourth quarter or if triggering events occur that require us to evaluate for impairment earlier. No triggering events arose during the three months ended September 30, 2025.
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NOTE 7 – LONG-TERM INCENTIVE COMPENSATION.
STOCK OPTIONS.
The following table summarizes the status of, and changes in, our stock options during the nine months ended September 30, 2025:
| Options | Weighted- average exercise price | ||||||||||
| Outstanding at December 31, 2024 | 661,377 | $ | 73.76 | ||||||||
| Exercised | (642,149) | $ | 73.89 | ||||||||
| Expired | (1,560) | $ | 79.71 | ||||||||
| Outstanding and exercisable at September 30, 2025 | 17,668 | $ | 68.49 |
RESTRICTED STOCK UNITS.
The following table summarizes the status of, and changes in, our nonvested restricted stock units during the nine months ended September 30, 2025:
| Restricted stock units | Weighted-average fair value | ||||||||||||||||
| Nonvested at December 31, 2024 | 6,001,579 | $ | 124.73 | ||||||||||||||
| Time-based grants | 29,447 | $ | 100.45 | ||||||||||||||
| Vested | (33,281) | $ | 126.38 | ||||||||||||||
| Forfeited | (283,954) | $ | 126.82 | ||||||||||||||
| Nonvested at September 30, 2025 | 5,713,791 | $ | 124.49 |
Nonvested at September 30, 2025 includes performance-based restricted stock units of 359,941. These nonvested performance-based restricted stock units include 102,345 units for which the performance period has lapsed, and the performance threshold has been met.
FUTURE STOCK-BASED COMPENSATION EXPENSE.
The following table presents the compensation expense to be recognized over the remaining vesting periods of the stock-based awards outstanding at September 30, 2025. Estimated future compensation expense will change to reflect future grants of restricted stock awards and units, future option grants, changes in the probability of performance thresholds being met, and adjustments for actual forfeitures.
| (in millions) | |||||
| Fourth quarter 2025 | $ | 42.9 | |||
| 2026 | 96.3 | ||||
| 2027 through 2030 | 64.9 | ||||
| Total | $ | 204.1 |
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RESTRICTED FUND UNITS.
Below is a roll forward of the restricted fund units liability, which is reported in deferred compensation liabilities on the unaudited consolidated balance sheet.
| (in millions) | |||||
| Balance at December 31, 2024 | $ | 14.7 | |||
| Amortization of grant date value | 32.8 | ||||
| Amortization of market appreciation (depreciation) | 5.8 | ||||
| Balance at September 30, 2025 | $ | 53.3 |
The following table presents the compensation expense to be recognized over the remaining vesting periods of the restricted fund units outstanding at September 30, 2025. Estimated future compensation expense will change to reflect future grants, changes in the market value of the restricted fund units, which is based on selected hypothetical investments, and adjustments for actual forfeitures. The grants outstanding will vest by 2029.
| (in millions) | |||||||||||
| Fourth quarter 2025 | $ | 9.9 | |||||||||
| 2026 | 24.7 | ||||||||||
| 2027 through 2029 | 23.3 | ||||||||||
| Total | $ | 57.9 |
NOTE 8 – EARNINGS PER SHARE CALCULATIONS.
The following table presents the reconciliation of net income attributable to T. Rowe Price Group, Inc. to net income allocated to our common stockholders and the weighted-average shares that are used in calculating the basic and diluted earnings per share on our common stock. Weighted-average common shares outstanding assuming dilution reflects the potential dilution, determined using the treasury stock method, that could occur if outstanding stock options were exercised and non-participating stock awards vested. No outstanding stock options had an anti-dilutive impact on the diluted earnings per common share calculation in the periods presented.
| Three months ended | Nine months ended | ||||||||||||||||||||||
| (in millions) | 9/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | |||||||||||||||||||
| Net income attributable to T. Rowe Price Group, Inc. | $ | 646.1 | $ | 603.0 | $ | 1,641.8 | $ | 1,660.2 | |||||||||||||||
| Less: net income allocated to outstanding restricted stock and stock unit holders | 14.7 | 15.5 | 39.5 | 44.2 | |||||||||||||||||||
| Net income allocated to common stockholders | $ | 631.4 | $ | 587.5 | $ | 1,602.3 | $ | 1,616.0 | |||||||||||||||
| Weighted-average common shares | |||||||||||||||||||||||
| Outstanding | 219.4 | 222.3 | 220.6 | 223.0 | |||||||||||||||||||
| Outstanding assuming dilution | 219.7 | 222.8 | 220.9 | 223.5 |
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NOTE 9 – OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS.
The changes in each component of accumulated other comprehensive income (loss), including reclassification adjustments for three months ended September 30, 2025 and 2024 are presented in the table below.
| Three months ended 9/30/2025 | Three months ended 9/30/2024 | |||||||||||||||||||||||||||||||||||||
| (in millions) | Equity method investments | Consolidated investment products - variable interest entities | Total currency translation adjustments | Equity method investments | Consolidated investment products - variable interest entities | Total currency translation adjustments | ||||||||||||||||||||||||||||||||
| Balances at beginning of period | $ | (52.5) | $ | 7.9 | $ | (44.6) | $ | (51.5) | $ | 2.3 | $ | (49.2) | ||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications and income taxes | (0.2) | (2.4) | (2.6) | 0.1 | 9.5 | 9.6 | ||||||||||||||||||||||||||||||||
| Reclassification adjustments recognized in non-operating income | — | — | — | — | 0.6 | 0.6 | ||||||||||||||||||||||||||||||||
| (0.2) | (2.4) | (2.6) | 0.1 | 10.1 | 10.2 | |||||||||||||||||||||||||||||||||
| Net deferred tax benefits (income taxes) | 0.1 | 0.6 | 0.7 | 1.8 | (2.3) | (0.5) | ||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (0.1) | (1.8) | (1.9) | 1.9 | 7.8 | 9.7 | ||||||||||||||||||||||||||||||||
| Balances at end of period | $ | (52.6) | $ | 6.1 | $ | (46.5) | $ | (49.6) | $ | 10.1 | $ | (39.5) |
The other comprehensive income (loss) in the table above excludes other comprehensive losses of $2.8 million and net gains of $7.4 million for the three months ended September 30, 2025 and 2024, respectively, related to redeemable non-controlling interests held in our consolidated products.
The changes in each component of accumulated other comprehensive income (loss), including reclassification adjustments for the nine months ended September 30, 2025 and 2024, are presented in the table below.
| Nine months ended 9/30/2025 | Nine months ended 9/30/2024 | |||||||||||||||||||||||||||||||||||||
| (in millions) | Equity method investments | Consolidated investment products - variable interest entities | Total currency translation adjustments | Equity method investments | Consolidated investment products - variable interest entities | Total currency translation adjustments | ||||||||||||||||||||||||||||||||
| Balances at beginning of period | $ | (49.5) | $ | (2.2) | $ | (51.7) | $ | (51.9) | $ | 4.4 | $ | (47.5) | ||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications and income taxes | (3.7) | 14.0 | 10.3 | 0.6 | 6.9 | 7.5 | ||||||||||||||||||||||||||||||||
| Reclassification adjustments recognized in non-operating income | — | (3.1) | (3.1) | — | 0.6 | 0.6 | ||||||||||||||||||||||||||||||||
| (3.7) | 10.9 | 7.2 | 0.6 | 7.5 | 8.1 | |||||||||||||||||||||||||||||||||
| Net deferred tax benefits (income taxes) | 0.6 | (2.6) | (2.0) | 1.7 | (1.8) | (0.1) | ||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (3.1) | 8.3 | 5.2 | 2.3 | 5.7 | 8.0 | ||||||||||||||||||||||||||||||||
| Balances at end of period | $ | (52.6) | $ | 6.1 | $ | (46.5) | $ | (49.6) | $ | 10.1 | $ | (39.5) | ||||||||||||||||||||||||||
The other comprehensive income (loss) in the table above excludes net gains of $8.2 million and $6.2 million for the nine months ended September 30, 2025 and 2024, respectively, related to redeemable non-controlling interests held in our consolidated products.
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NOTE 10 – SEGMENT REPORTING.
We have one reportable segment: investment management services. We derive our revenue and net income globally and manage business activities on a consolidated basis.
We derive our revenues and net income from investment advisory services provided to individual and institutional investors. We also provide certain ancillary administrative services, including mutual fund transfer agent, fund and portfolio accounting, distribution, and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; and other advisory services. Our revenues and net income depend largely on the total value and composition of our assets under management, as such, the consideration for our services is generally variable and recognized over time.
Our chief operating decision maker (CODM) is the chief executive officer. The CODM utilizes consolidated net income attributable to T. Rowe Price as reported on the consolidated income statement and certain non-GAAP metrics to assess performance and allocate resources. Based on these metrics, the CODM decides either to reinvest profits into the business based on our strategic priorities and/or return cash to stockholders through dividends and share repurchases.
We determined there are no significant segment expenses that require a separate disclosure, as the major categories of expenses regularly reviewed by the CODM to manage operations are disclosed in the consolidated statements of income. Quarterly reviews of expenses highlight those influenced by financial markets, such as distribution and servicing costs, as well as those that are both qualitatively and quantitatively significant. The measure of segment assets is reported on the balance sheet as total consolidated assets.
NOTE 11 – COMMITMENTS AND CONTINGENCIES.
COMMITMENTS.
T. Rowe Price Group, Inc. has committed $229 million for investment in future OHA product launches through 2026.
CONTINGENCIES.
Contingent Consideration
As part of the purchase consideration for our acquisition of OHA in December 2021, there is contingent
consideration in the amount of up to $900 million, payable in cash, that may be due as part of an earnout payment in 2026 and 2027 upon satisfying or exceeding certain defined revenue targets. These defined revenue targets will be evaluated on a cumulative basis from 2022 through 2026. About 22% of the earnout is conditioned upon continued service with T. Rowe Price Group, Inc. and was excluded from the purchase consideration and deemed compensatory. The fair value of the earnout is remeasured each reporting period and was valued at zero as of September 30, 2025 and December 31, 2024.
Other
Various claims against us arise in the ordinary course of business, including employment-related claims. In the opinion of management, after consultation with counsel, the likelihood of an adverse determination in one or more of these pending ordinary course of business claims that would have a material adverse effect on our financial position or results of operations is remote.
NOTE 12 – RESTRUCTURING CHARGE.
As separately disclosed in the unaudited consolidated income statement, we recognized a restructuring charge of $28.5 million in the third quarter of 2025, primarily related to severance. The remaining liability at September 30, 2025 of $10.1 million is reported in accrued compensation and related costs. This charge relates to our broad and ongoing plan to reduce expense growth and realign resources. This ongoing effort is designed to support investment in both existing and future capabilities.
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NOTE 13 – SUBSEQUENT EVENTS.
In October 2025, the Board of Directors approved a plan to exit two owned office buildings in Owings Mills, Maryland. This decision is expected to result in a non-cash charge of up to $100 million in the fourth quarter of 2025, primarily reflecting the carrying value of the buildings, and will be recorded in the restructuring charge line of the consolidated income statement. This decision was made in connection with our broad and ongoing plan to reduce expense growth and realign resources to invest in existing and future capabilities.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors
T. Rowe Price Group, Inc.:
Results of Review of Interim Financial Information
We have reviewed the consolidated balance sheet of T. Rowe Price Group, Inc. and subsidiaries (the Company) as of September 30, 2025, the related consolidated statements of income, comprehensive income, and stockholders’ equity for the three-month and nine-month periods ended September 30, 2025 and 2024, the related consolidated statements of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the interim financial information for it to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated February 14, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
This consolidated interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ KPMG LLP
Baltimore, Maryland
October 31, 2025
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