What changed in this filing

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Item 1. Financial Statements

2026-04-28 compared with 2026-01-30 · 153 added, 74 removed, 493 unchanged (32% of the section changed)

3 unchanged sentences

Three Months Ended

Six Months Ended

(in millions, except per share data) 2026 2025 2026 2025

11 unchanged sentences

Amortization of intangible assets 50.6 112.5 105.7 225.1

Impairment of intangible assets

— 24.4 — 24.4

General, administrative and other 187.6 182.8 383.2 368.0

4 unchanged sentences

Interest expense ( 19.9 ) ( 20.8 ) ( 40.3 ) ( 43.9 )

Investment and other income of consolidated investment products, net 124.9 114.1

Investment and other income (losses) of consolidated investment products, net 96.5 ( 164.7 ) 221.4 ( 50.6 )

Expenses of consolidated investment products ( 10.2 ) ( 11.5 ) ( 24.2 ) ( 18.8 )

Other income, net 170.8 94.2

Other income (expenses), net 122.4 ( 102.9 ) 293.2 ( 8.7 )

Income before taxes 445.7 42.7 897.5 355.9

1 unchanged sentence

Net income 346.6 11.6 693.4 243.7

net income attributable to

net income (loss) attributable to

Redeemable noncontrolling interests 23.9 ( 158.4 ) 63.6 ( 108.8 )

9 unchanged sentences

(in millions) Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Net Income $ 346.6 $ 11.6 $ 693.4 $ 243.7

Other Comprehensive Loss

Other Comprehensive Income (Loss)

Currency translation adjustments, net of tax ( 40.8 ) 28.5 ( 41.9 ) ( 76.6 )

Net unrealized gains on defined benefit plans, net of tax — 0.3

Total other comprehensive loss ( 1.1 ) ( 104.8 )

Net unrealized losses on defined benefit plans, net of tax — ( 3.1 ) — ( 2.8 )

Total other comprehensive income (loss) ( 40.8 ) 25.4 ( 41.9 ) ( 79.4 )

Total comprehensive income 305.8 37.0 651.5 164.3

comprehensive income attributable to

comprehensive income (loss) attributable to

Redeemable noncontrolling interests 23.9 ( 158.4 ) 63.6 ( 108.8 )

5 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data) December 31,

(in millions, except share and per share data) March 31,

2026 September 30,

1 unchanged sentence

Receivables 1,426.2 1,541.7

Investments (including $ 1,063.0 and $ 1,179.5 at fair value at December 31, 2025 and September 30, 2025)

Investments (including $ 1,118.3 and $ 1,179.5 at fair value at March 31, 2026 and September 30, 2025)

2,569.7 2,374.0

10 unchanged sentences

Accounts payable and accrued expenses 585.4 615.4

Income taxes 228.0 207.5

Debt 2,253.3 2,362.0

11 unchanged sentences

Common stock, $ 0.10 par value, 1,000,000,000 shares authorized;

519,974,911 and 520,951,796 shares issued and outstanding at December 31, 2025 and September 30, 2025

519,620,511 and 520,951,796 shares issued and outstanding at March 31, 2026 and September 30, 2025

Capital in excess of par

17 unchanged sentences

(in millions)

for the three months ended

December 31, 2025 Shares Amount

for the six months ended

March 31, 2026 Shares Amount

Balance at October 1, 2025 521.0 $ 52.1 $ 956.8 $ 11,516.0 $ ( 447.1 ) $ 12,077.8 $ 929.0 $ 13,006.8

14 unchanged sentences

Balance at December 31, 2025 520.0 $ 52.0 $ 991.0 $ 11,540.1 $ ( 448.2 ) $ 12,134.9 $ 965.6 $ 13,100.5

Net income 268.2 268.2 54.5 322.7

Other comprehensive loss ( 40.8 ) ( 40.8 ) ( 40.8 )

Dividends declared on common stock ($ 0.33 per share)

( 177.5 ) ( 177.5 ) ( 177.5 )

Repurchase of common stock ( 2.3 ) ( 0.2 ) ( 56.9 ) — ( 57.1 ) ( 57.1 )

Issuance of common stock 1.9 0.2 54.7 54.9 54.9

Stock-based compensation 11.1 11.1 11.1

Net subscriptions and other 149.9 149.9

Net deconsolidation of investment products ( 157.4 ) ( 157.4 )

Adjustment to fair value of redeemable noncontrolling interests ( 69.9 ) ( 69.9 ) ( 69.9 )

Balance at March 31, 2026 519.6 $ 52.0 $ 999.9 $ 11,560.9 $ ( 489.0 ) $ 12,123.8 $ 1,012.6 $ 13,136.4

See Notes to Consolidated Financial Statements.

Franklin Resources, Inc.

6 unchanged sentences

(in millions)

for the three months ended

December 31, 2024 Shares Amount

for the six months ended

March 31, 2025 Shares Amount

Balance at October 1, 2024 523.6 $ 52.4 $ 947.6 $ 11,927.6 $ ( 419.5 ) $ 12,508.1 $ 734.9 $ 13,243.0

10 unchanged sentences

Balance at December 31, 2024 524.0 $ 52.4 $ 1,014.9 $ 11,919.1 $ ( 524.3 ) $ 12,462.1 $ 771.6 $ 13,233.7

Net income 151.4 151.4 18.6 170.0

Other comprehensive income 25.4 25.4 25.4

Dividends declared on common stock ($ 0.32 per share)

( 173.5 ) ( 173.5 ) ( 173.5 )

Repurchase of common stock ( 0.5 ) ( 0.1 ) ( 9.9 ) — ( 10.0 ) ( 10.0 )

Issuance of common stock 1.9 0.2 44.7 44.9 44.9

Stock-based compensation 12.7 12.7 12.7

Net subscriptions and other 38.4 38.4

Net deconsolidation of investment products ( 13.5 ) ( 13.5 )

Adjustment to fair value of redeemable noncontrolling interests

( 167.0 ) ( 167.0 ) ( 167.0 )

Balance at March 31, 2025 525.4 $ 52.5 $ 1,062.4 $ 11,730.0 $ ( 498.9 ) $ 12,346.0 $ 815.1 $ 13,161.1

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(in millions) 2026 2025

5 unchanged sentences

Amortization of intangible assets 105.7 225.1

Impairment of intangible assets

Net losses on investments 29.3 10.3

Losses (income) from investments in equity method investees ( 11.5 ) 7.6

Net gains on investments of consolidated investment products ( 67.4 ) ( 87.2 )

Income from investments in equity method investees ( 35.8 ) ( 15.5 )

Net (gains) losses on investments of consolidated investment products ( 106.2 ) 101.8

Net purchase of investments by consolidated investment products ( 473.4 ) ( 230.7 )

2 unchanged sentences

Changes in operating assets and liabilities:

Decrease (increase) in receivables and other assets ( 121.9 ) 10.2

Increase in receivables and other assets ( 330.6 ) ( 48.2 )

Decrease (increase) in investments, net ( 4.1 ) 3.3

Decrease in accrued compensation and benefits ( 377.9 ) ( 488.0 )

Increase in income taxes payable 20.3 55.0

Increase (decrease) in accounts payable, accrued expenses and other liabilities ( 24.8 ) 95.0

Increase (decrease) in accounts payable and accrued expenses of consolidated investment products 2.9 ( 47.3 )

Decrease in accounts payable, accrued expenses and other liabilities ( 149.3 ) ( 300.1 )

Decrease in accounts payable and accrued expenses of consolidated investment products ( 0.1 ) ( 40.3 )

Net cash used in operating activities ( 282.7 ) ( 195.3 )

12 unchanged sentences

[Table continued from previous page]

Three Months Ended

Six Months Ended

(in millions) 2026 2025

Issuance of common stock $ 13.0 $ 10.2

Dividends paid on common stock ( 346.6 ) ( 339.4 )

Repurchase of common stock ( 99.0 ) ( 15.8 )

Proceeds from debt

Payment on debt ( 600.0 ) ( 400.0 )

Proceeds from repurchase agreement 0.5 41.2

18 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

Note 1 – Basis of Presentation

8 unchanged sentences

These financial statements should be read together with the Company’s audited financial statements included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (“fiscal year 2025”).

Revision to previously issued financial statements

During the quarter ended March 31, 2026, the Company identified that the amount reported in the supplemental disclosure of cash flow information in its consolidated statement of cash flows for cash paid for income taxes for the six month period ended March 31, 2025 was understated by $ 185.2 million, and the correct amount for that period was $ 402.3 million.

There is no impact on net income attributable to the Company, earnings per share, total assets, total liabilities, retained earnings, total shareholders’ equity or operating cash flow activities.

There is no impact on the financial results attributable to the Company’s shareholders.

The Company has determined this did not result in a material misstatement to its previously issued consolidated financial statements.

Nonetheless, for comparability, the Company has revised the comparative prior period amounts included in the consolidated statements of cash flows.

Note 2 – New Accounting Guidance

8 unchanged sentences

(in millions, except per share data) Three Months Ended

Six Months Ended

2026 2025 2026 2025

Net income attributable to Franklin Resources, Inc.

1 unchanged sentence

allocation of earnings to participating nonvested stock and stock unit awards

16.3 14.3 32.5 29.7

Net Income Available to Common Stockholders $ 251.9 $ 137.1 $ 491.2 $ 285.3

1 unchanged sentence

Dilutive effect of nonparticipating nonvested stock unit awards

0.7 0.8 0.8 0.7

Weighted-Average Shares Outstanding – Diluted 518.2 519.9 518.3 519.0

2 unchanged sentences

Diluted 0.49 0.26 0.95 0.55

There were no nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive for the three months ended December 31, 2025 and 2024.

Note 4 – Revenues

3 unchanged sentences

Luxembourg Total

for the three months ended December 31, 2025

for the three months ended March 31, 2026

Investment management fees

9 unchanged sentences

Luxembourg Total

for the three months ended December 31, 2024

for the six months ended March 31, 2026

Investment management fees

6 unchanged sentences

$ 3,383.3 $ 723.3 $ 186.3 $ 147.5 $ 181.6 $ 4,622.0

(in millions) United States Luxembourg Asia-Pacific Americas

States Europe,

Luxembourg Total

for the three months ended March 31, 2025

Investment management fees

$ 1,272.4 $ 215.9 $ 71.5 $ 49.2 $ 64.6 $ 1,673.6

Sales and distribution fees

259.2 89.6 6.4 9.6 0.1 364.9

Shareholder servicing fees

53.7 7.7 0.4 0.1 — 61.9

10.8 — 0.2 — — 11.0

$ 1,596.1 $ 313.2 $ 78.5 $ 58.9 $ 64.7 $ 2,111.4

(in millions) United States Luxembourg Asia-Pacific Americas

States Europe,

Luxembourg Total

for the six months ended March 31, 2025

Investment management fees

$ 2,633.8 $ 439.8 $ 147.3 $ 102.8 $ 149.2 $ 3,472.9

Sales and distribution fees

526.3 183.0 11.3 19.6 0.2 740.4

Shareholder servicing fees

108.8 15.7 0.8 0.1 — 125.4

23.9 — 0.4 — — 24.3

$ 3,292.8 $ 638.5 $ 159.8 $ 122.5 $ 149.4 $ 4,363.0

Operating revenues are attributed to geographic areas based on the jurisdiction of the subsidiaries that provide the services, which may differ from the regions in which the related investment products are sold and domicile of the fund vehicle or client.

Revenues earned from sponsored funds were 84 % and 83 % of the Company’s total operating revenues for the three months ended December 31, 2025 and 2024.

Revenues earned from sponsored funds were 84 % of the Company’s total operating revenues for the three and six months ended March 31, 2026 and 83 % for the three and six months ended March 31, 2025.

Note 5 – Investments

2 unchanged sentences

Investments consisted of the following:

(in millions) December 31,

(in millions) March 31,

2026 September 30,

8 unchanged sentences

The Company has entered into repurchase agreements with a third-party financing company for certain investments held by the Company.

As of December 31, 2025 and September 30, 2025, other liabilities includes repurchase agreements of $ 196.0 million and $ 200.5 million with investments of $ 200.6 million and $ 206.4 million in carrying value pledged as collateral.

As of March 31, 2026 and September 30, 2025, other liabilities includes repurchase agreements of $ 189.4 million and $ 200.5 million with investments of $ 191.8 million and $ 206.4 million in carrying value pledged as collateral.

The repurchase agreements have contractual maturity dates ranging between 2030 to 2039.

5 unchanged sentences

Expedient Total

as of December 31, 2025

as of March 31, 2026

Investments, at fair value

18 unchanged sentences

Total Liabilities Measured at Fair Value $ 193.7 $ — $ 20.4 $ — $ 214.1

As of December 31, 2025 and September 30, 2025, there were $ 8.1 million and $ 29.0 million of other investments which were adjusted to fair value on a nonrecurring basis and excluded from the tables above.

As of March 31, 2026 and September 30, 2025, there were $ 45.1 million and $ 29.0 million of other investments which were adjusted to fair value on a nonrecurring basis and excluded from the tables above.

Investments for which fair value was estimated using reported NAV as a practical expedient primarily consist of nonredeemable private equity, debt and infrastructure funds, and redeemable alternative credit, global equity and private real estate funds.

These investments were as follows:

(in millions) December 31,

(in millions) March 31,

2026 September 30,

6 unchanged sentences

1 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets.

Investments with known liquidation periods have an expected weighted-average life of 2.3 years and 2.2 years at December 31, 2025 and September 30, 2025.

Investments with known liquidation periods have an expected weighted-average life of 2.1 years and 2.2 years at March 31, 2026 and September 30, 2025.

2 Investments are redeemable on a semi-monthly, monthly and quarterly basis.

1 unchanged sentence

(in millions) Fair Value

Level December 31, 2025 September 30, 2025

Level March 31, 2026 September 30, 2025

Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value

9 unchanged sentences

The balances related to CIPs included in the Company’s consolidated balance sheets were as follows:

(in millions) December 31,

(in millions) March 31,

2026 September 30,

14 unchanged sentences

$ 14,916.2 $ 13,077.7

The consolidation of CIPs did not have a significant impact on net income attributable to the Company during the three months ended December 31, 2025 and 2024.

The consolidation of CIPs did not have a significant impact on net income attributable to the Company during the three and six months ended March 31, 2026 and 2025.

The Company has no right to the CIPs’ assets, other than its direct equity investments in them and investment management and other fees earned from them.

5 unchanged sentences

Expedient Total

as of December 31, 2025

as of March 31, 2026

Cash and cash equivalents of CLOs $ 929.2 $ — $ — $ — $ 929.2

11 unchanged sentences

Total Assets Measured at Fair Value $ 865.3 $ 11,198.6 $ 610.9 $ 189.1 $ 12,863.9

Investments for which fair value was estimated using reported NAV as a practical expedient consist of nonredeemable private debt and equity funds and a redeemable global hedge fund.

Investments for which fair value was estimated using reported NAV as a practical expedient consist of a redeemable global hedge fund and nonredeemable private debt and equity funds.

These investments were as follows:

(in millions) December 31,

(in millions) March 31,

2026 September 30,

Redeemable investments 1

$ 82.4 $ 74.4

Nonredeemable investments 2

Investments with unknown liquidation periods 23.7 114.7

Redeemable investments 2

Unfunded commitments 3

_______________

1 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets.

1 Investments are redeemable on a monthly basis and liquidation periods are unknown.

3 Of the total unfunded commitments, the Company was contractually obligated to fund $ 6.7 million and $ 5.3 million based on its ownership percentage in the CIPs, at December 31, 2025 and September 30, 2025.

2 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets.

3 Of the total unfunded commitments, the Company was contractually obligated to fund $ 6.7 million and $ 5.3 million based on its ownership percentage in the CIPs at March 31, 2026 and September 30, 2025.

Changes in Level 3 assets of equity and debt securities were as follows:

Three Months Ended

Six Months Ended

(in millions)

2026 2025 2026 2025

Balance at beginning of period

$ 595.1 $ 573.5 $ 601.0 $ 550.1

Gains included in investment and other income of consolidated investment products, net 28.8 22.0

Gains included in investment and other income (losses) of consolidated investment products, net 66.9 2.3 95.7 24.3

Purchases 27.2 10.9 44.6 20.1

1 unchanged sentence

Net (deconsolidations) consolidations — — ( 32.1 ) 3.8

Transfers into Level 3 — 0.2 — 0.2

Transfers out of Level 3 — ( 39.2 ) ( 16.8 ) ( 39.2 )

1 unchanged sentence

$ 673.3 $ 545.0 $ 673.3 $ 545.0

Change in unrealized gains included in net income relating to assets held at end of period $ 34.1 $ 22.3

Change in unrealized gains (losses) included in net income relating to assets held at end of period $ 66.5 $ ( 17.1 ) $ 78.0 $ 2.8

Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows:

(in millions)

as of December 31, 2025 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 )

as of March 31, 2026 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 )

Equity and debt securities $ 408.6 Market pricing Private sale pricing $ 0.01 –$ 4,210.00 ($ 567.37 ) per share

20 unchanged sentences

(in millions) Fair Value

Level December 31, 2025 September 30, 2025

Level March 31, 2026 September 30, 2025

Value Estimated

8 unchanged sentences

1 Substantially all was Level 2.

Debt of CLOs totaled $ 10,862.7 million and $ 9,937.3 million at December 31, 2025 and September 30, 2025.

The debt had fixed and floating interest rates based on Secured Overnight Financing Rate (“SOFR”) ranging from 2.39 % to 12.32 % with a weighted-average effective interest rate of 6.02 % at December 31, 2025, and from 2.39 % to 12.26 % based on SOFR and Euro Interbank Offered Rate with a weighted-average effective interest rate of 6.00 % at September 30, 2025.

The contractual maturities for the debt of CLOs at December 31, 2025 were as follows:

Debt of CLOs totaled $ 12,153.1 million and $ 9,937.3 million at March 31, 2026 and September 30, 2025.

The debt had fixed and floating interest rates based on Secured Overnight Financing Rate (“SOFR”) ranging from 2.39 % to 11.90 % with a weighted-average effective interest rate of 5.58 % at March 31, 2026, and from 2.39 % to 12.26 % based on SOFR and Euro Interbank Offered Rate with a weighted-average effective interest rate of 6.00 % at September 30, 2025.

The contractual maturities for the debt of CLOs at March 31, 2026 were as follows:

(in millions)

5 unchanged sentences

The unpaid principal balance and fair value of the investments of CLOs were as follows:

(in millions) December 31,

(in millions) March 31,

2026 September 30,

2 unchanged sentences

Fair Value $ 12,114.5 $ 10,597.7

Investments 90 days or more past due were immaterial at December 31, 2025 and September 30, 2025.

The Company recognized $ 11.2 million and $ 11.7 million of net gains during the three months ended December 31, 2025 and 2024, related to its own economic interests in the CLOs.

The aggregate principal related to the debt of CLOs was $ 10,906.8 million and $ 9,958.6 million at December 31, 2025 and September 30, 2025.

Investments 90 days or more past due were immaterial at March 31, 2026 and September 30, 2025.

The Company recognized $ 3.7 million and $ 14.9 million of net gains during the three and six months ended March 31, 2026 and $ 15.6 million and $ 27.3 million of net gains during the three and six months ended March 31, 2025, related to its own economic interests in the CLOs.

The aggregate principal related to the debt of CLOs was $ 12,258.5 million and $ 9,958.6 million at March 31, 2026 and September 30, 2025.

Note 8 – Redeemable Noncontrolling Interests

2 unchanged sentences

CIPs Minority Interests Total CIPs Minority Interests Total

for the three months ended December 31,

for the three months ended March 31,

Balance at beginning of period $ 311.8 $ 980.1 $ 1,291.9 $ 1,466.5 $ 639.5 $ 2,106.0

Net income 26.1 13.6 39.7 38.9 10.7 49.6

Net income (loss) 12.2 11.7 23.9 ( 167.4 ) 9.0 ( 158.4 )

Net subscriptions (distributions) and other 331.3 20.2 351.5 ( 50.5 ) 5.3 ( 45.2 )

Net deconsolidations ( 258.3 ) — ( 258.3 ) ( 52.5 ) — ( 52.5 )

Adjustment to fair value — 69.9 69.9 — 167.0 167.0

Balance at End of Period $ 397.0 $ 1,081.9 $ 1,478.9 $ 1,196.1 $ 820.8 $ 2,016.9

(in millions) 2026 2025

CIPs Minority Interests Total CIPs Minority Interests Total

for the six months ended March 31,

Balance at beginning of period $ 289.6 $ 892.4 $ 1,182.0 $ 687.8 $ 634.0 $ 1,321.8

Net income (loss) 38.3 25.3 63.6 ( 128.5 ) 19.7 ( 108.8 )

Net subscriptions (distributions) and other 491.9 ( 17.6 ) 474.3 125.1 1.6 126.7

Net consolidations (deconsolidations) ( 422.8 ) — ( 422.8 ) 511.7 — 511.7

5 unchanged sentences

The Company’s maximum exposure to loss from these VIEs consists of equity investments, investment management and other fee receivables as follows:

(in millions) December 31,

(in millions) March 31,

2026 September 30,

4 unchanged sentences

As it has done in the past, the Company also may voluntarily elect to provide its sponsored funds with additional direct or indirect financial support based on its business objectives.

The Company did not provide additional financial or other support to its sponsored funds assessed as VIEs during the three months ended December 31, 2025 or fiscal year 2025.

The Company did not provide additional financial or other support to its sponsored funds assessed as VIEs during the six months ended March 31, 2026 or fiscal year 2025.

Note 10 – Commitments and Contingencies

1 unchanged sentence

India Credit Fund Closure Matters .

During the three months ended December 31, 2025, there were no significant changes from the disclosure in the Form 10‑K for the fiscal year ended September 30, 2025.

During the six months ended March 31, 2026, there were no significant changes from the disclosure in the Form 10‑K for the fiscal year ended September 30, 2025.

Western Asset Management Investigations and Litigation.

6 unchanged sentences

The Company has also previously disclosed that it was informed by the DOJ that it is prepared to resolve its investigation through a disposition that does not require the filing of any criminal charges against WAM.

The DOJ further informed the Company that as it continues the ongoing resolution discussions, which, as the DOJ noted, require additional time to complete due to circumstances not attributable to WAM, it appreciates WAM’s commitment to full cooperation with the investigation.

The DOJ further informed the Company that as it continues the ongoing resolution discussions, which, as the DOJ noted, has required additional time to complete due to circumstances not attributable to WAM, it appreciates WAM’s commitment to full cooperation with the investigation.

The Company continues to cooperate with the SEC investigation, which remains ongoing.

5 unchanged sentences

Leech for similar allegations and for false statements made to the SEC.

The trial is scheduled to begin on June 15, 2026.

On July 3, 2025, Franklin, WAM and Ken Leech were named as defendants in a lawsuit filed by the Western PA Electrical Employees Insurance Trust Fund in the U.S.

2 unchanged sentences

District Court for the Central District of California.

The plaintiffs filed an amended complaint on March 16, 2026, which, among other things, expanded the alleged class period through November 25, 2024, and named as additional defendants certain Franklin and WAM executives.

The plaintiffs are pursuing claims under the Securities Exchange Act of 1934 against all defendants in connection with trade allocations made by Mr.

8 unchanged sentences

The plaintiffs are seeking, among other things, damages, disgorgement, removal of certain investments from the Plan, removal and replacement of the Plan’s fiduciaries, attorneys’ fees and costs, and pre-judgment interest.

The lawsuits reported above against the Company are in their preliminary stages.

On April 17, 2026, the court denied the Franklin defendants’ motion to dismiss.

The lawsuits reported above against the Company are in their early stages.

Management believes the claims made in the lawsuits are without merit and the Company intends to defend against them vigorously.

3 unchanged sentences

Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company’s business, financial position, results of operations or liquidity.

In management’s opinion, an adequate accrual has been made as of December 31, 2025 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount.

In management’s opinion, an adequate accrual has been made as of March 31, 2026 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount.

Indemnifications and Guarantees

4 unchanged sentences

Future payments for claims against the Company under these indemnities or guarantees could negatively impact the Company’s financial condition.

In management’s opinion, no material loss was deemed probable or reasonably possible pursuant to such indemnification agreements and/or guarantees as of December 31, 2025.

In management’s opinion, an adequate accrual has been made as of March 31, 2026 to provide for any probable losses pursuant to such indemnification agreements and/or guarantees.

Other Commitments and Contingencies

At December 31, 2025, there were no other material changes in the other commitments and contingencies as reported in the Company’s Annual Report on Form 10-K for fiscal year 2025.

At March 31, 2026, there were no other material changes in the other commitments and contingencies as reported in the Company’s Annual Report on Form 10-K for fiscal year 2025.

Note 11 – Stock-Based Compensation

4 unchanged sentences

Shares Weighted-

for the three months ended December 31, 2025

for the six months ended March 31, 2026

Nonvested balance at October 1, 2025 14,959 353 15,312 $ 22.81

2 unchanged sentences

Forfeited/canceled ( 273 ) — ( 273 ) 18.28

Nonvested Balance at December 31, 2025 22,738 349 23,087 $ 22.78

Total unrecognized compensation expense related to nonvested stock unit awards was $ 299.3 million at December 31, 2025.

Nonvested Balance at March 31, 2026 21,371 349 21,720 $ 22.42

Total unrecognized compensation expense related to nonvested stock and stock unit awards was $ 248.6 million at March 31, 2026.

This expense is expected to be recognized over a remaining weighted-average vesting period of 1.9 years.

2 unchanged sentences

Three Months Ended

Six Months Ended

(in millions) 2026 2025 2026 2025

Dividend and interest income $ 38.7 $ 19.4 $ 93.3 $ 62.5

Losses on investments, net ( 8.6 ) ( 57.1 )

Income (losses) from investments in equity method investees 11.5 ( 7.6 )

Gains (losses) on investments, net ( 20.7 ) 46.8 ( 29.3 ) ( 10.3 )

Income from investments in equity method investees 24.3 23.1 35.8 15.5

Losses on crypto assets, net ( 12.4 ) — ( 18.8 ) —

Rental income 11.6 10.9 22.9 22.1

Foreign currency exchange (losses) gains, net ( 4.0 ) 14.5

Foreign currency exchange gains (losses), net 1.5 ( 7.5 ) ( 2.5 ) 7.0

Other, net 13.0 1.4 34.9 7.8

Investment and other income, net $ 56.0 $ 94.1 $ 136.3 $ 104.6

Net losses recognized on equity securities measured at fair value and trading debt securities that were held by the Company were $ 12.5 million for the three months ended December 31, 2025 and $ 87.2 million for the three months ended December 31, 2024.

Net gains (losses) recognized on equity securities measured at fair value and trading debt securities that were held by the Company were $( 43.4 ) million and $( 55.4 ) million for the three and six months ended March 31, 2026 and $ 82.7 million and $( 1.0 ) million for the three and six months ended March 31, 2025.

Note 13 – Segment and Geographic Information

4 unchanged sentences

Total assets on the consolidated balance sheets is the measure of segment assets.

Note 14 - Subsequent Event

On January 8, 2026, the Company borrowed $ 150.0 million under the Amended and Restated Revolving Credit Agreement, with aggregate commitments of up to $ 1.5 billion.

The borrowing remains outstanding at the time of this filing and the proceeds were used for general corporate purposes.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements