Franklin Resources, Inc. announced net income of $151.4 million, or $0.26 per diluted share, for the quarter ended March 31, 2025. This represents a decrease from $163.6 million, or $0.29 per diluted share, in the previous quarter, and an increase from $124.2 million, or $0.23 per diluted share, in the prior year's quarter.
Adjusted diluted earnings per share were $0.47, down from $0.59 in the previous quarter and $0.56 in the prior year. The adjusted net income included a $41.4 million loss on a seed investment. Total operating revenues decreased 2% year-over-year to $2,111.4 million. Total assets under management (AUM) were $1.54 trillion at quarter-end, a 2% decrease from the previous quarter and a 6% decrease year-over-year.
The firm experienced long-term net outflows of $26.2 billion, primarily driven by $33.6 billion in outflows from Western Asset Management (WAM). Excluding WAM, Franklin Resources recorded $7.4 billion in long-term net inflows. The ETF business achieved its 14th consecutive quarter of positive net flows, attracting $4.1 billion and reaching a record high in AUM.
Fundraising in alternatives generated $6.8 billion for the quarter, with $6.1 billion in private market assets, including the launch of the Franklin Lexington Private Markets Fund which raised $2 billion in AUM. The institutional pipeline of won-but-unfunded mandates rose by $2.3 billion to $20.4 billion, its highest level since 2022. The company also recognized a $24.4 million impairment charge on WAM-related intangible assets.
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