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Item 2. Management’s Discussion and Analysis

2025-10-31 compared with 2025-08-01 · 208 added, 188 removed, 582 unchanged (40% of the section changed)

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and non-discretionary advisory services.

Investment advisory fees depend largely on the total value and composition of assets under our management.

Investment advisory fees depend largely on the total value and composition of our assets under management.

Accordingly, fluctuations in financial markets and in the composition of assets under management affect our revenues and results of operations.

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These efforts often involve costs that precede any future revenues we may recognize from an increase to our assets under management.

The investment management industry is evolving, facing challenging trends such as passive investments taking market share from traditional active strategies;

The investment management industry is evolving, facing challenging trends such as passive strategies taking market share from traditional active strategies;

continued downward fee pressure;

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As a result, we have initiated certain actions to reduce expense growth, realign resources, and invest in existing and future capabilities, while also helping to offset ongoing inflationary pressures on compensation and contractual spending.

These investments include hiring investment professionals, distribution professionals, adopting new technologies, and offering new products to provide our clients with strong investment management expertise and services.

These investments include hiring investment and distribution professionals, adopting new technologies, and offering new products to provide our clients with strong investment management expertise and services.

MARKET TRENDS.

stock market indexes rose in the second quarter.

Equities plunged at the beginning of April in response to the U.S.

reciprocal tariffs.

However, the market rallied starting April 9, when the U.S.

declared a 90-day pause on these tariffs for many countries.

Equities continued to rise throughout May and June, as the U.S.

and China agreed to a 90-day reduction in reciprocal and retaliatory tariffs while negotiating a trade deal.

Stocks also overcame a short-lived spike in oil prices in June and a multi-day exchange of missile and drone attacks between Israel and Iran.

As the quarter ended, investors were optimistic that trade deals with U.S.

trading partners would be announced soon and hopeful that the Federal Reserve would resume lowering interest rates at some point in the months ahead.

Major stock indexes rose in the third quarter of 2025.

Initially, equities were supported by generally favorable economic data and second-quarter corporate earnings reports, as well as some positive tariff-related news in the form of U.S.

trade agreements with other nations.

In August, however, a weaker-than-expected nonfarm payroll employment report for July—which included significant downward revisions to employment data for May and June—raised fears of an economic slowdown.

Nevertheless, equities were buoyed by growing hopes that the Federal Reserve would resume reducing short-term interest rates;

the last rate cut was in December 2024.

Indeed, Fed officials decided in mid-September to reduce the fed funds target rate by 25 basis points and indicated there could be two additional rate cuts by the end of the year.

Developed non-U.S.

equity markets outperformed U.S.

shares in U.S.

dollar terms.

In Europe, equity markets were broadly positive, helped in part by short-term interest rate cuts.

UK shares lagged.

Developed Asian markets were also broadly positive in dollar terms, with Japanese stocks gaining more than 11%.

Stocks in emerging markets also outperformed U.S.

stocks in U.S.

dollar terms.

In the emerging Europe, Middle East, and Africa (EMEA) region, markets were broadly positive in dollar terms, though stocks in Türkiye (Turkey) lagged with a 3% gain.

In emerging Asia, markets were also broadly positive in dollar terms.

Equities in South Korea and Taiwan far outperformed the region, while Chinese stocks trailed with modest gains.

In Latin America, markets were mostly positive in dollar terms.

equity markets also produced gains.

Markets in several eurozone countries advanced more than 8% in U.S.

dollar terms, while UK shares rose about 6%.

Developed Asian markets were mostly positive in dollar terms, led by Hong Kong, Singapore, and Japan.

Stocks in emerging markets outperformed equities in developed non-U.S.

In emerging Asia, Chinese stocks climbed more than 20%, helped by cash-rich households seeking higher returns.

In Latin America, most markets produced positive returns in dollar terms.

In the emerging Europe, Middle East, and Africa (EMEA) region, markets were broadly positive.

South African shares surged more than 20%, helped by rising metals prices and mining industry strength.

Returns of several major equity market indexes were as follows:

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(1) Returns exclude dividends

Global bond returns were mostly positive in the second quarter of 2025.

In the U.S., Treasury bill yields were little changed, as the Federal Reserve kept the federal funds target rate in the 4.25% to 4.50% range.

Intermediate-term U.S.

Treasury yields generally declined, but the 10-year U.S.

Treasury note yield increased from 4.23% to 4.24%.

Global bond returns were mostly positive in the third quarter of 2025.

In the U.S., Treasury bill yields declined in anticipation of a Federal Reserve interest rate cut in mid-September.

On September 17, the central bank reduced the federal funds target rate from the 4.25% to 4.50% range to the 4.00% to 4.25% range.

Intermediate- and long-term U.S.

Treasury yields fell to a lesser extent.

The 10-year U.S.

Treasury bond yield increased to a greater degree amid concerns about U.S.

debts and budget deficits, and as Moody’s downgraded U.S.

sovereign debt from AAA to AA1 in May.

In the investment-grade universe, sector performance was broadly positive.

Non-agency commercial mortgage-backed securities and corporate bonds performed best, while asset-backed and mortgage-backed securities produced milder gains.

Treasuries lagged.

Tax-free municipal bonds trailed the broad taxable bond market, but high yield corporate bonds produced strong gains and outperformed investment-grade bonds.

Treasury note yield decreased from 4.24% to 4.16%.

In the investment-grade bond universe, sector performance was broadly positive.

Corporate bonds and mortgage-backed securities performed best, while non-agency commercial mortgage-backed securities, asset-backed securities, and Treasuries lagged.

Tax-free municipal bonds and high yield corporate bonds outperformed the taxable investment-grade bond market.

Bonds in developed non-U.S.

markets produced positive returns in U.S.

dollar terms in the second quarter, as major non-U.S.

currencies appreciated versus the U.S.

In the eurozone, longer-term bond yields declined in many countries, as the European Central Bank (ECB) reduced its benchmark interest rates twice in the second quarter.

In the UK, longer-term bond yields also decreased, as the Bank of England reduced its benchmark interest rate, the Bank Rate, from 4.50% to 4.25% in May.

The euro rose more than 8% versus the U.S.

dollar, while the British pound rose about 6%.

In Japan, long-term government bond yields were little changed, as the Bank of Japan kept its benchmark interest rate at 0.50%.

The yen rose about 3.5% versus the U.S.

markets produced slight negative returns in U.S.

dollar terms.

In the eurozone, longer-term bond yields rose in many countries, while the European Central Bank (ECB) kept key interest rates steady.

In the UK, longer-term bond yields also increased, but the Bank of England reduced its key interest rate in August.

The euro was little changed versus the greenback, but the British pound fell close to 2% versus the dollar.

In Japan, long-term government bond yields increased, but the Bank of Japan kept the benchmark interest rate at 0.50%.

The yen fell more than 2% versus the dollar.

Emerging markets bonds produced positive returns in U.S.

dollar terms.

Bonds denominated in local currencies strongly outperformed dollar-denominated bonds in U.S.

dollar terms, as most developing markets currencies appreciated versus the dollar.

Dollar-denominated bonds outperformed bonds denominated in local currencies, as developing markets currencies were mixed versus the U.S.

Returns of several major bond market indexes were as follows:

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ASSETS UNDER MANAGEMENT.

Assets under management ended the second quarter of 2025 at $1,676.8 billion, an increase of $110.5 billion from March 31, 2025.

The increase in assets under management during the second quarter of 2025 was driven by market appreciation and income, net of distributions not reinvested, of $125.4 billion, offset by net cash outflows of $14.9 billion.

For the six months ended June 30, 2025, the increase in assets under management was driven by market appreciation, net of distributions not reinvested, of $93.7 billion, offset by net cash outflows of $23.5 billion.

The following tables detail changes in our assets under management, by asset class, during the three- and six-month periods ended June 30, 2025:

Assets under management ended the third quarter of 2025 at $1,767.2 billion, an increase of $90.4 billion from June 30, 2025.

The increase was primarily driven by market appreciation and income, net of distributions not reinvested, of $89.1 billion, offset by net cash outflows of $7.9 billion.

Beginning on July 1, 2025, assets under management include managed account - model delivery portfolios assets, which had $9.2 billion in assets as of that date, and are reflected in the increase from June 30, 2025 and December 31, 2024.

For the nine months ended September 30, 2025, the increase in assets under management was primarily driven by market appreciation, net of distributions not reinvested, of $182.8 billion, offset by net cash outflows of $31.4 billion.

The following tables detail changes in our assets under management, by asset class, during the three- and nine-month periods ended September 30, 2025:

Three months ended 9/30/2025

Six months ended 6/30/2025

Nine months ended 9/30/2025

(in billions) Equity Fixed income, including money market Multi-asset (2)

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Assets under management at beginning of period $ 838.5 $ 200.3 $ 583.3 $ 54.7 $ 1,676.8 $ 829.7 $ 188.1 $ 536.0 $ 52.8 $ 1,606.6

Managed account - model delivery assets (4)

9.2 — — — 9.2 9.2 — — — 9.2

Net cash flows prior to manager-driven distributions (14.4) 4.4 1.3 1.6 (7.1) (51.7) 11.0 7.7 3.8 (29.2)

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Change during the period 46.9 7.8 34.4 1.3 90.4 55.7 20.0 81.7 3.2 160.6

Assets under management at June 30, 2025 $ 838.5 $ 200.3 $ 583.3 $ 54.7 $ 1,676.8 $ 838.5 $ 200.3 $ 583.3 $ 54.7 $ 1,676.8

Assets under management at September 30, 2025 $ 885.4 $ 208.1 $ 617.7 $ 56.0 $ 1,767.2 $ 885.4 $ 208.1 $ 617.7 $ 56.0 $ 1,767.2

(1) Includes assets in which T.

Rowe Price and its affiliates have full discretionary authority along with managed account - model delivery assets.

(2) The underlying assets under management of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns.

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Generally, only those strategies with longer than daily liquidity are included.

Unfunded capital commitments were $18.6 billion at June 30, 2025, $17.1 billion at March 31, 2025, and $16.2 billion at December 31, 2024, and are not reflected in fee basis AUM above.

(3) Includes net distributions not reinvested for the three- and six-month periods ended June 30, 2025 of $0.4 billion and $0.9 billion, respectively.

Investment advisory clients outside the United States account for 8.7% of our assets under management at June 30, 2025, 8.7% at March 31, 2025, and 8.8% at December 31, 2024.

Assets under management in our target date retirement portfolios, which are included in the multi-asset totals shown above, were $520.3 billion at June 30, 2025, $484.2 billion at March 31, 2025, and $475.6 billion at December 31, 2024.

Net flows into these portfolios were $1.7 billion and $8.0 billion in the three- and six-month periods ended June 30, 2025, respectively.

We also provide strategic investment advice solutions to certain portfolios.

These advice solutions, primarily overseen by our multi-asset division, may include strategic asset allocation, and in certain portfolios, asset selection and/or tactical asset allocation overlays.

We also offer advice solutions through retail separately managed accounts and separately managed accounts model delivery.

As of June 30, 2025, total assets in these solutions were $623 billion, of which $592 billion are included in our reported assets under management in the tables above.

Unfunded capital commitments were $22.0 billion at September 30, 2025, $18.6 billion at June 30, 2025, and $16.2 billion at December 31, 2024, and are not reflected in fee basis AUM above.

(4) Amount represents the net assets as of July 1, 2025 and all activity for the quarter is reflected in the lines that follow.

(5) Includes net distributions not reinvested for the three- and nine-month periods ended September 30, 2025 of $0.4 billion and $1.3 billion, respectively.

Investment advisory clients outside the United States account for 8.7% of our assets under management at September 30, 2025 and June 30, 2025 and 8.8% at December 31, 2024.

Assets under management in our target date retirement portfolios, which are included in the multi-asset totals shown above, were $552.9 billion at September 30, 2025, $520.3 billion at June 30, 2025, and $475.6 billion at December 31, 2024.

Net flows into these portfolios were $2.6 billion and $10.6 billion in the three- and nine-month periods ended September 30, 2025, respectively.

The firm’s multi-asset investment division provides advisory solutions that include investment insights, strategic asset allocation design, tactical asset allocation recommendations, and portfolio rebalancing services.

The assets in these solutions, predominantly in the United States, were $25.2 billion at September 30, 2025, compared with $24.1 billion at June 30, 2025.

We provide participant accounting and plan administration for retirement plans that primarily invest in the firm's U.S.

mutual funds, collective investment trusts and funds outside of the firm's complex.

As of June 30, 2025, our assets under administration were $302 billion, of which $170 billion are assets we manage.

mutual funds, collective investment trusts and products outside of the firm's complex.

As of September 30, 2025, our assets under administration were $315 billion, of which $178 billion are assets we manage.

INVESTMENT PERFORMANCE.

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fund performance against passive peers, and composite performance against benchmarks.

The following tables present investment performance for the one-, three-, five-, and 10-years ended June 30, 2025.

Past performance is not a reliable indicator of future performance.

The following tables present investment performance for the one-, three-, five-, and 10-years ended September 30, 2025.

Past performance is not a guarantee nor a reliable indicator of future performance.

funds that outperformed Morningstar median (2),(3)

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All Composites 25% 33% 34% 43%

As of June 30, 2025, 67 of 142 (47.2%) of the firm's rated U.S.

As of September 30, 2025, 63 of 142 (44.4%) of the firm's rated U.S.

mutual funds (across primary share classes) received an overall rating of 4 or 5 stars.

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In addition, 59% (6) of AUM in the firm's rated U.S.

mutual funds (across primary share classes) ended June 30, 2025 with an overall rating of 4 or 5 stars.

mutual funds (across primary share classes) ended September 30, 2025 with an overall rating of 4 or 5 stars.

(1) The investment performance reflects that of T.

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RESULTS OF OPERATIONS.

The following table and discussion sets forth information regarding our consolidated financial results for the three- and six-month periods ended June 30, 2025 and 2024 on a U.S.

The following table and discussion sets forth information regarding our consolidated financial results for the three- and nine-month periods ended September 30, 2025 and 2024 on a U.S.

GAAP and a non-GAAP basis.

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Three months ended Q3 2025 vs.

Q2 2024 Six months ended YTD 2025 vs.

Q3 2024 Nine months ended YTD 2025 vs.

(in millions, except per-share data) 9/30/2025 9/30/2024 $ change % change (1)

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Net operating income $ 643.2 $ 613.6 $ 29.6 4.8 % $ 1,717.8 $ 1,764.9 $ (47.1) (2.7) %

Non-operating income (loss) $ 235.5 $ 80.3 $ 155.2 n/m $ 306.2 $ 269.2 $ 37.0 13.7 %

Non-operating income (loss) $ 238.4 $ 212.5 $ 25.9 12.2 % $ 544.6 $ 481.7 $ 62.9 13.1 %

Net income to T.

Rowe Price Group $ 505.2 $ 483.4 $ 21.8 4.5 % $ 995.7 $ 1,057.2 $ (61.5) (5.8) %

Rowe Price Group, Inc.

$ 646.1 $ 603.0 $ 43.1 7.1 % $ 1,641.8 $ 1,660.2 $ (18.4) (1.1) %

Diluted earnings per common share $ 2.87 $ 2.64 $ 0.23 8.7 % $ 7.25 $ 7.23 $ 0.02 0.3 %

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Net income to T.

Rowe Price Group $ 506.8 $ 519.7 $ (12.9) (2.5) % $ 1,016.1 $ 1,068.2 $ (52.1) (4.9) %

Rowe Price Group, Inc.

$ 631.7 $ 586.5 $ 45.2 7.7 % $ 1,647.8 $ 1,654.7 $ (6.9) (0.4) %

Diluted earnings per common share $ 2.81 $ 2.57 $ 0.24 9.3 % $ 7.28 $ 7.21 $ 0.07 1.0 %

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GAAP measures at the end of the Results of Operations section of this Management’s Discussion and Analysis.

Results Overview - Quarter ended June 30, 2025

Results Overview - Quarter ended September 30, 2025

Net revenues consist of investment advisory revenues;

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and capital allocation-based income.

More than 90% of our net revenues are related to investment advisory fees.

Total net revenues were $1,723.3 million in the second quarter of 2025, a 0.6% decrease compared to $1,733.3 million in the 2024 quarter.

The decrease was primarily driven by a decrease in performance-based advisory fees.

About 90% of our net revenues are related to investment advisory fees.

Total net revenues were $1,893.5 million in the third quarter of 2025, a 6.0%

increase compared to $1,785.6 million in the 2024 quarter.

The increase was driven primarily by higher investment advisory fees on higher average assets under management and capital allocation-based income.

Investment advisory fees are generally earned based on the value and composition of our assets under management, which change based on fluctuations in financial markets and net cash flows.

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Operating expenses on a U.S.

GAAP basis were $1,245.0 million in the second quarter of 2025, a 6.5% increase over the comparable 2024 period.

GAAP basis were $1,250.3 million in the third quarter of 2025, a 6.7% increase over the comparable 2024 period.

On a non-GAAP basis, operating expenses were $1,134.4 million, a 3.2% increase over the comparable 2024 period.

Compared to the second quarter of 2024, over 65% of the increase in U.S.

GAAP operating expenses was due to increases in deferred compensation liabilities from higher markets.

Additionally, higher compensation and related benefits, as well as increased technology, occupancy, and facilities costs, contributed to the rise in U.S.

GAAP operating expenses and were the main drivers of the increase in non-GAAP operating expenses over the 2024 quarter.

As mentioned earlier, we exclude the market-related impacts on deferred compensation liabilities from our non-GAAP operating expenses measures because these liabilities are economically hedged.

Operating margin in the second quarter of 2025 was 27.8% on a U.S.

GAAP basis, compared to 32.6% earned in the second quarter of 2024.

The decrease was driven by operating expense growth outpacing net revenue growth primarily due to higher market-related increases in deferred compensation liabilities.

Diluted earnings per share was $2.24 for the second quarter of 2025 compared to $2.11 for the second quarter of 2024.

The increase was primarily driven by higher investment gains partially offset by lower operating income compared to the 2024 period.

A lower effective tax rate and fewer weighted average shares outstanding also contributed to the increase.

On a non-GAAP basis, diluted earnings per share was $2.24 for the second quarter of 2025 as compared to $2.26 for the second quarter of 2024.

The decrease was primarily due to lower adjusted operating income partially offset by a lower adjusted tax rate and higher adjusted investment gains compared to the 2024 period.

Results Overview - Year-to-Date ended June 30, 2025

Compared to the third quarter of 2024, the increase in U.S.

GAAP operating expenses was driven by a few items, including the restructuring charge, primarily compensation and related, associated with our ongoing plan to reduce expense growth and realign resources to invest in existing and future capabilities.

Additionally, higher technology and facilities costs and accrued carried interest compensation contributed to the rise in U.S.

GAAP operating expenses and were the main drivers of the increase in non-GAAP operating expenses over the 2024 period.

Given the non-recurring nature of the restructuring charge, we have excluded this charge from our non-GAAP operating expenses measures.

Operating margin in the third quarter of 2025 was 34.0% on a U.S.

GAAP basis, compared to 34.4% in the third quarter of 2024.

The restructuring charge was the primary driver of the decrease in the operating margin.

Diluted earnings per share was $2.87 for the third quarter of 2025 compared to $2.64 for the third quarter of 2024.

The increase was primarily driven by higher operating income, higher investment gains, and fewer weighted average shares outstanding compared to the 2024 period.

On a non-GAAP basis, diluted earnings per share was $2.81 for the third quarter of 2025 as compared to $2.57 for the third quarter of 2024.

The increase was primarily due to higher adjusted operating income and fewer weighted average shares outstanding compared to the 2024 period.

Results Overview - Year-to-Date ended September 30, 2025

Net revenues consist of investment advisory revenues;

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and capital allocation-based income.

More than 90% of our net revenues for the six months ended June 30, 2025 are related to investment advisory fees.

Total net revenues were $3,487.2 million in the six months ended June 30, 2025, a 0.1% increase over $3,483.5 million in the 2024 period.

The increase was primarily driven by a 2.0% increase in investment advisory fee revenue as average assets under management increased by 6.3% and a $9.3 million increase in non-advisory revenues, partially offset by a $48.8 million decrease in capital allocation-based income (change in accrued carried interest) earned from investments in certain affiliated funds and a $17.6 million decrease in performance-based advisory fees.

Operating expenses were $2,412.6 million in the six months ended June 30, 2025, compared with $2,332.2 million in the 2024 period.

On a non-GAAP basis, our operating expenses for the six months ended June 30, 2025, increased 4.8% to $2,282.3 million compared to the 2024 period.

Compared to the six months ended June 30, 2024, the increase in U.S.

GAAP and non-GAAP operating expenses was mainly due to higher technology and facility costs, compensation and related benefits costs, distribution and servicing costs, and general, administrative and other costs.

Operating margin in the six months ended June 30, 2025 was 30.8% on a U.S.

More than 90% of our net revenues for the nine months ended September 30, 2025 are related to investment advisory fees.

Total net revenues were $5,380.7 million in the nine months ended September 30, 2025, a 2.1% increase over $5,269.1 million in the 2024 period.

The increase was primarily driven by a 2.8% increase in investment advisory fee revenue as average assets under management increased by 7.0% and a $7.6 million increase in non-advisory revenues, partially offset by a $16.8 million decrease in performance-based advisory fees and a $11.4 million decrease in capital allocation-based income (change in accrued carried interest) earned from investments in certain affiliated funds.

Operating expenses on a U.S.

GAAP basis were $3,662.9 million in the nine months ended September 30, 2025, compared with $3,504.2 million over the comparable 2024 period.

On a non-GAAP basis, operating expenses were $3,416.7 million, a 4.3% increase over the comparable 2024 period.

Compared to the nine months ended September 30, 2024, the increase in U.S.

GAAP operating expenses were primarily due to compensation and related costs, the restructuring charge, technology and facility costs, and distribution and servicing costs.

The drivers of the increase in non-GAAP operating expenses were the same as U.S.

GAAP with the exception of the restructuring charge, which is excluded from our non-GAAP operating expenses measures.

Operating margin in the nine months ended September 30, 2025 was 31.9% on a U.S.

GAAP basis, compared to 33.5% earned in the 2024 period.

The decrease was primarily driven by operating expense growth outpacing net revenue growth.

Diluted earnings per share was $4.38 for the six months ended June 30, 2025, compared to $4.60 for 2024 period.

On a non-GAAP basis, adjusted diluted earnings per share was $4.47 for the six months ended June 30, 2025, compared to $4.64 for the 2024 period.

The decreases were primarily due to lower operating income partially offset by higher investment gains.

Diluted earnings per share was $7.25 for the nine months ended September 30, 2025, compared to $7.23 for 2024 period.

On a non-GAAP basis, adjusted diluted earnings per share was $7.28 for the nine months ended September 30, 2025, compared to $7.21 for the 2024 period.

The increase was primarily due to fewer weighted average shares outstanding and higher investment gains, which were partially offset by lower operating income.

Three months ended Q3 2025 vs.

Q2 2024 Six months ended YTD 2025 vs.

Q3 2024 Nine months ended YTD 2025 vs.

(in millions) 9/30/2025 9/30/2024 $ change % change (1)

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(2) 2024 performance-based advisory fees are reported separately from investment advisory fees to align with the 2025 presentation.

Investment advisory fees in the second quarter of 2025 decreased 0.1% over the comparable 2024 quarter while average assets under management increased $54.8 billion, or 3.6%, to $1,588.8 billion.

For the six months ended June 30, 2025, investment advisory revenues increased 2.0% over the comparable 2024 period as average assets under management increased $95.3 billion, or 6.3%, to $1,604.5 billion.

The average annualized effective fee rate earned for the three- and six-month periods ended June 30, 2025 declined from the comparable 2024 periods as market movements and client flows and transfers shifted assets under management toward lower-fee asset classes and products.

Performance-based advisory fees in the second quarter of 2025 and 2024 were earned primarily from alternative strategies, and from equity and alternative strategies for the six months ended June 30, 2025 and 2024.

Investment advisory fees in the third quarter of 2025 increased 4.4% over the comparable 2024 quarter while average assets under management increased $133.5 billion, or 8.4%, to $1,723.0 billion.

For the nine months ended September 30, 2025, investment advisory revenues increased 2.8% over the comparable 2024 period as average assets under management increased $108.2 billion, or 7.0%, to $1,644.4 billion.

The average annualized effective fee rate earned for the three- and nine-month periods ended September 30, 2025 declined from the comparable 2024 periods primarily due to client flows and transfers shifting assets under management toward lower-fee strategies and products.

Performance-based advisory fees in the third quarter of 2025 and 2024 were earned primarily from alternatives strategies, and from alternatives and equity strategies for the nine months ended September 30, 2025 and 2024.

Capital allocation-based income includes the change in accrued carried interest along with acquisition-related amortization and impairments.

In the second quarter of 2025, the change in accrued carried interest increased net revenues by $36.5 million compared to $27.0 million in the 2024 period.

For the six months ended June 30, 2025, the change in accrued carried interest decreased net revenues by $45.7 million compared to $86.5 million for the 2024 period.

The change in accrued carried interest for both the second quarter and six month periods compared to the 2024 periods was due to relative market impacts and performance.

In the third quarter of 2025, the change in accrued carried interest increased net revenues by $56.2 million compared to $35.1 million in the 2024 period.

For the nine months ended September 30, 2025, the change in accrued carried interest increased net revenues by $101.9 million compared to $121.6 million for the 2024 period.

The difference in the change in accrued carried interest for the 2025 periods compared to the 2024 periods was due to relative market impacts and performance.

The decrease in acquisition-related amortization and impairments for the 2025 periods from the comparable 2024 periods was primarily due to higher impairments recognized in prior periods.

A portion of the capital allocation-based income is passed through to certain associates as compensation and the related expense recognized in compensation and related costs with the unpaid amount reported as non-controlling interest on the unaudited consolidated balance sheets.

Administrative, distribution, services, and other fees in the second quarter of 2025 were $149.7 million, an increase of $2.1 million, or 1.4%, from the comparable 2024 quarter.

For the six months ended June 30, 2025, these fees were $306.0 million, an increase of $9.3 million, or 3.1%, from the 2024 period.

The increases for both periods were primarily due to higher average assets on which we earn revenue for non-discretionary advisory services and higher recordkeeping fees.

For the second quarter of 2025, these increases were partially offset by the timing of costs to be reimbursed by the firm's U.S.

mutual funds compared to the 2024 period.

The offsetting expense is recognized in product and recordkeeping related costs.

Administrative, distribution, services, and other fees in the third quarter of 2025 were $146.4 million, a decrease of $1.7 million, or 1.1%, from the comparable 2024 quarter.

For the nine months ended September 30, 2025, these fees were $452.4 million, an increase of $7.6 million, or 1.7%, from the 2024 period.

In the third quarter of 2025, we began reporting revenue from managed account model delivery assets and certain other advisory services in investment advisory fees, which was over $13 million in Q3 2025.

This reclassification was the primary driver of the decline in administrative, distribution, services, and other fees, partially offset by higher transfer agents services compared to the 2024 period.

For the nine months ended September 30, 2025, the increase was primarily due to higher recordkeeping fees and higher transfer agent services.

Our net revenues reflect the elimination of advisory and administrative fee revenue earned from our consolidated

investment products.

The corresponding expenses recognized by these products, and consolidated in our financial statements, were also eliminated from operating expenses.

For the second quarter, we eliminated net revenue of $1.4 million in 2025 and $0.5 million in 2024.

For the six months ended June 30, we eliminated net revenue of $2.8 million in 2025 and $1.7 million in 2024.

The corresponding expenses recognized by these products, which are consolidated in our financial statements, were also eliminated from operating expenses.

For the third quarter, we eliminated net revenue of $0.8 million in 2025 and $1.3 million in 2024.

For the nine months ended September 30, we eliminated net revenue of $3.6 million in 2025 and $3.0 million in 2024.

Operating expenses

Three months ended Q3 2025 vs.

Q2 2024 Six months ended YTD 2025 vs.

Q3 2024 Nine months ended YTD 2025 vs.

(in millions) 9/30/2025 9/30/2024 $ change % change (1)

1 unchanged sentence

Compensation, benefits and related costs $ 632.5 $ 632.9 $ (0.4) (0.1) % $ 1,939.2 $ 1,898.0 $ 41.2 2.2 %

Acquisition-related retention agreements 14.1 13.1 1.0 7.6 % 28.3 26.6 1.7 6.4 %

Capital allocation-based income compensation (1.5) (2.4) 0.9 (37.5) % (1.9) 10.8 (12.7) n/m

Deferred compensation liabilities 66.3 14.6 51.7 n/m 59.1 67.6 (8.5) (12.6) %

Acquisition-related retention agreements 14.2 4.0 10.2 n/m 42.5 30.6 11.9 38.9 %

Capital allocation-based income compensation (2)

16.8 (2.0) 18.8 n/m 14.9 8.8 6.1 69.3 %

Market-related change in deferred compensation liabilities 50.8 43.4 7.4 17.1 % 109.9 111.0 (1.1) (1.0) %

Total compensation and related costs 714.3 678.3 36.0 5.3 % 2,106.5 2,048.4 58.1 2.8 %

4 unchanged sentences

General, administrative, and other 101.7 104.2 (2.5) (2.4) % 314.5 305.5 9.0 2.9 %

Change in fair value of contingent consideration — (13.4) 13.4 n/m — (13.4) 13.4 n/m

Acquisition-related amortization and impairment costs 26.8 51.5 (24.7) (48.0) % 86.7 125.3 (38.6) (30.8) %

Restructuring charge 28.5 — 28.5 n/m 28.5 — 28.5 n/m

Total operating expenses $ 1,250.3 $ 1,172.0 $ 78.3 6.7 % $ 3,662.9 $ 3,504.2 $ 158.7 4.5 %

2 unchanged sentences

(1) n/m - The percentage change is not meaningful.

(2) Capital allocation-based income compensation represents the change in accrued carried interest compensation along with acquisition-related, non-cash amortization and impairments.

(3) See the reconciliation to the comparable U.S.

GAAP measures at the end of the Results of Operations section of this Management’s Discussion and Analysis.

Compensation, benefits, and related costs were $648.8 million in the second quarter of 2025, an increase of $13.0 million, or 2.0%, compared to the 2024 quarter.

For the six months ended June 30, 2025, these costs were $1,306.7 million, an increase of $41.6 million, or 3.3%, compared to the 2024 period.

The increases in both periods were primarily due to higher salaries and related benefits, as base salaries modestly increased in January 2024 and we saw higher healthcare costs, and higher stock-based compensation.

These increases were partially offset by lower other employee related costs compared to the 2024 periods.

For the second quarter of 2025, a lower bonus accrual also partially offset the increase compared to the 2024 period.

The firm employed 8,063 associates at June 30, 2025, a decrease of 0.3% from 8,084 associates at March 31, 2025, a decrease of 1.2% from the end of 2024, and an increase of 1.7% from June 30, 2024.

Distribution and servicing costs were $92.5 million for the second quarter of 2025, an increase of $4.8 million, or 5.5%, from $87.7 million recognized in the 2024 quarter.

For the six months ended June 30, 2025, these costs were $186.1 million, an increase of $16.5 million, or 9.7%, from $169.6 million recognized in the comparable 2024 period.

Compensation, benefits, and related costs were $632.5 million in the third quarter of 2025, a decrease of $0.4 million, or 0.1%, compared to the 2024 quarter.

For the nine months ended September 30, 2025, these costs were $1,939.2 million, an increase of $41.2 million, or 2.2%, compared to the 2024 period.

For the third quarter of 2025, the decrease was due to lower temporary personnel, offset by higher salaries and related benefits and lower capitalized labor.

For the nine months ended September 30, 2025, the increase was primarily due to higher salaries and related benefits, higher long-term incentive compensation, and lower capitalized labor.

These increases were partially offset by lower temporary personnel and other employee related costs.

The firm employed 7,830 associates at September 30, 2025, a decrease of 2.9% from 8,063 associates at June 30, 2025, a decrease of 4.0% from the end of 2024, and a decrease of 3.4% from September 30, 2024.

The decrease in associates over each period is primarily driven by the workforce action in July 2025.

Distribution and servicing costs were $95.8 million for the third quarter of 2025, an increase of $4.2 million, or 4.6%, from $91.6 million recognized in the 2024 quarter.

For the nine months ended September 30, 2025, these costs were $281.9 million, an increase of $20.7 million, or 7.9%, from $261.2 million recognized in the comparable 2024 period.

The increases in both periods were primarily driven by higher average assets under management distributed through intermediaries.

4 unchanged sentences

mutual funds and investment advisory fee revenue for our international products and ETFs.

Product and recordkeeping related costs were $74.8 million in the second quarter of 2025, an increase of $1.8 million, or 2.5%, compared to $73.0 million in the 2024 quarter.

For the six months ended June 30, 2025, these costs were $158.6 million, an increase of $10.6 million, or 7.2%, from $148.0 million recognized in the comparable 2024 period.

The increases in both periods were primarily due to higher custody fees related to our trust products and recordkeeping fees.

Technology, occupancy, and facility costs were $179.4 million in the second quarter of 2025, an increase of $18.5 million, or 11.5%, compared to the $160.9 million recognized in the 2024 quarter.

For the six months ended June 30, 2025, these costs were $347.0 million, an increase of $36.2 million, or 11.6%, compared with the 2024 period.

Product and recordkeeping related costs were $78.7 million in the third quarter of 2025, an increase of $3.7 million, or 4.9%, compared to $75.0 million in the 2024 quarter.

For the nine months ended September 30, 2025, these costs were $237.3 million, an increase of $14.3 million, or 6.4%, from $223.0 million recognized in the comparable 2024 period.

The increases in both periods were primarily due to higher recordkeeping fees and other product related costs.

Also contributing to the nine month increase was higher custody fees related to our trust products.

Technology, occupancy, and facility costs were $183.2 million in the third quarter of 2025, an increase of $19.2 million, or 11.7%, compared to the $164.0 million recognized in the 2024 quarter.

For the nine months ended September 30, 2025, these costs were $530.2 million, an increase of $55.4 million, or 11.7%, compared with the 2024 period.

The increases in both periods were primarily due to higher technology costs, including hosted solutions and depreciation.

Also contributing to the increase was higher occupancy and facility costs related to the firm’s new corporate headquarters, which was occupied in March 2025, and a non-recurring cost benefit related to the firm's UK facility in the first quarter of 2024.

General, administrative, and other expenses were $109.5 million in the second quarter of 2025, an increase of $0.8 million, or 0.7%, compared to the $108.7 million recognized in the 2024 quarter.

For the six months ended June 30, 2025, these costs were $212.8 million, an increase of $11.5 million, or 5.7%, compared with the 2024 period.

The increases in both periods were primarily due to higher professional fees and information services partially offset by lower external research fees.

Also contributing to the nine month increase was higher occupancy and facility costs related to our new corporate headquarters, which was occupied in March 2025, and a non-recurring cost benefit related to our UK facility in the first quarter of 2024.

General, administrative, and other expenses were $101.7 million in the third quarter of 2025, a decrease of $2.5 million, or 2.4%, compared to the $104.2 million recognized in the 2024 quarter.

For the nine months ended September 30, 2025, these costs were $314.5 million, an increase of $9.0 million, or 2.9%, compared with the 2024 period.

For the third quarter of 2025, the decrease was primarily related to a non-recurring cost recovery recognized during the quarter.

For the nine months ended September 30, 2025, the increase was primarily driven by higher professional fees, information services, and other administrative costs.

These increases were partially offset by the non-recurring cost recovery recognized in the third quarter of 2025 and lower external research fees.

Acquisition-related amortization and impairment costs primarily relate to the indefinite- and definite-lived intangible assets identified and separately recognized, at fair value, on acquisition date.

For the second quarter of 2025, we recognized $31.2 million in amortization and impairments related to the definite and indefinite-lived intangible assets, compared to $43.9 million in the 2024 quarter.

For the six months ended June 30, 2025, we recognized $59.9 million in amortization and impairments related to the definite and indefinite-lived intangible assets, compared to $73.8 million, in the 2024 period.

The 2024 periods include impairments charges totaling $18.0 million on definite and indefinite-lived intangible assets.

The decreases in both periods were primarily driven by lower impairment charges related to certain indefinite-lived intangible assets.

For the third quarter of 2025, we recognized $26.8 million in amortization and impairments related to intangible assets, compared to $51.5 million in the 2024 quarter.

For the nine months ended September 30, 2025, we recognized $86.7 million in amortization and impairments related to intangible assets, compared to $125.3 million, in the 2024 period.

For the 2024 periods, intangible asset impairment charges totaled $25.6 million for the third quarter and $59.7 million for the year-to-date period.

If conditions that led us to recognize impairment charges worsen, additional impairments may be recognized in future periods.

Restructuring charge of $28.5 million for three- and nine-month periods ended September 30, 2025 reflects compensation costs, primarily severance, incurred in connection with the July workforce action.

This was related to our previously announced 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.

Non-operating income (loss)

Non-operating income for the second quarter of 2025 was $235.5 million compared to $80.3 million in the 2024 quarter.

The following table details the components of non-operating income for both the three- and six-month periods ended June 30, 2025 and 2024.

Three months ended Six months ended

Non-operating income for the third quarter of 2025 was $238.4 million compared to $212.5 million in the 2024 quarter.

The following table details the components of non-operating income for both the three- and nine-month periods ended September 30, 2025 and 2024.

Three months ended Nine months ended

(in millions) 9/30/2025 9/30/2024 9/30/2025 9/30/2024

21 unchanged sentences

GAAP measures at the end of the Results of Operations section of this Management's Discussion and Analysis.

Higher investment gains earned by our investment portfolio during the three- and six-month periods ended June 30, 2025 compared to the 2024 periods were primarily due to higher cash and investment holdings coupled with stronger overall market returns.

Higher investment gains earned by our investment portfolio during the three- and nine-month periods ended September 30, 2025 compared to the 2024 periods were primarily due to higher cash and investment holdings coupled with stronger overall market returns.

The table above shows the net investment income of the underlying portfolios of the consolidated investment products, not just the income from our ownership share.

The table below displays how consolidated investment products affected the individual lines of our unaudited consolidated income statements and the portion attributable to our interest.

Three months ended Six months ended

Three months ended Nine months ended

(in millions) 9/30/2025 9/30/2024 9/30/2025 9/30/2024

6 unchanged sentences

Provision for income taxes

The GAAP effective tax rate for the second quarter of 2025 was 22.1% compared with 24.8% in the second quarter of 2024.

The GAAP effective tax rate for the third quarter of 2025 was 22.1% compared with 22.5% in the third quarter of 2024.

These quarterly rates were the result of an overall year-to-date rate of 22.8% for 2025 and 23.5% for 2024.

The following table reconciles the statutory federal income tax rate to our effective tax rate on a U.S.

GAAP basis for the six months ended June 30, 2025 and 2024:

Six months ended

GAAP basis for the nine months ended September 30, 2025 and 2024:

Nine months ended

9/30/2025 9/30/2024

12 unchanged sentences

The decrease in the year-to-date 2025 U.S.

GAAP and adjusted effective tax rates compared to 2024 was primarily due to the reversal of a valuation allowance related to U.S.

foreign tax credit carryovers.

GAAP and adjusted effective tax rates compared to 2024 was primarily due to the reversal of a U.S.

foreign tax credit carryover valuation allowance and lower state taxes.

The impact of redeemable non-controlling interest also contributed to the lower U.S.

GAAP effective tax rate compared to the 2024 period.

We currently estimate that our effective tax rate for the full year 2025, on a U.S.

9 unchanged sentences

The following schedules reconcile certain U.S.

GAAP financial measures to Non-GAAP financial measures for the three months ended June 30, 2025 and 2024.

GAAP financial measures to Non-GAAP financial measures for the three months ended September 30, 2025 and 2024.

Three months ended 9/30/2025

15 unchanged sentences

(50.8) 50.8 (53.0) (0.3) (1.9) (0.01)

Restructuring charge (3)

(28.5) 28.5 — 4.2 24.3 0.11

Consolidated investment products (4)

15 unchanged sentences

(4.0) 4.0 — 0.5 3.5 0.02

Contingent consideration (1)

13.4 (13.4) — (1.8) (11.6) (0.05)

Intangible assets amortization and impairments (1)

9 unchanged sentences

The following schedules reconcile certain U.S.

GAAP financial measures to non-GAAP financial measures for the six months ended June 30, 2025 and 2024.

Six months ended 6/30/2025

GAAP financial measures to non-GAAP financial measures for the nine months ended September 30, 2025 and 2024.

Nine months ended 9/30/2025

Operating expenses Net operating income Non-operating income (loss) Provision (benefit) for income taxes (6)

14 unchanged sentences

(109.9) 109.9 (112.8) (0.6) (2.3) (0.01)

Restructuring charge (3)

(28.5) 28.5 — 4.2 24.3 0.11

Consolidated investment products (4)

3 unchanged sentences

Adjusted Basis $ 3,416.7 $ 2,029.1 $ 132.8 $ 514.1 $ 1,647.8 $ 7.28

Six months ended 6/30/2024

Nine months ended 9/30/2024

Operating expenses Net operating income Non-operating income (loss) Provision (benefit) for income taxes (6)

9 unchanged sentences

(30.6) 30.6 — 7.2 23.4 0.10

Contingent consideration (1)

13.4 (13.4) — (1.8) (11.6) (0.05)

Intangible assets amortization and impairments (1)

10 unchanged sentences

We believe adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability period to period.

(2) This non-GAAP adjustment eliminates the compensation expense impact from market valuation changes in deferred compensation liabilities, including the supplemental savings plan and, starting in the fourth quarter of 2024, restricted fund units, and the related net gains (losses) on investments used as economic hedges against the related liabilities.

(2) This non-GAAP adjustment eliminates the compensation expense impact from market valuation changes in deferred compensation liabilities, including the supplemental savings plan and, starting in Q4 2024, restricted fund units, and the related net gains (losses) on investments used as economic hedges against the related liabilities.

The liabilities are adjusted based on the performance of hypothetical investments selected by participants.

We use investment products to economically hedge the market risk associated with the supplemental savings plan liability and the expected settlement value of unvested restricted fund units.

We believe it is useful to offset the non-operating investment income

(loss) of the hedges against the related compensation expense and remove the net impact to help the reader's ability to understand the firm's core operating results and to increase comparability period to period.

We use investment products to economically hedge the market risk associated with the supplemental savings plan liability and the expected settlement

value of unvested restricted fund units.

We believe it is useful to offset the non-operating investment income (loss) of the hedges against the related compensation expense and remove the net impact to help the reader's ability to understand the firm's core operating results and to increase comparability period to period.

(3) This non-GAAP adjustment removes compensation expenses, primarily severance, incurred as part of our broad and ongoing plan to reduce expense growth and realign resources to invest in existing and future capabilities.

We believe this adjustment helps the reader’s ability to understand our core operating results and increases comparability period to period.

(4) This non-GAAP adjustment removes the impact of the consolidated investment products by adding back their operating expenses and subtracting their investment income.

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(6) The income tax impacts were calculated in order to achieve an overall year-to-date non-GAAP effective tax rate of 23.8% in 2025 and 24.1% in 2024.

As such, the non-GAAP effective tax rate for the second quarter was 23.4% in 2025 and 24.6% in 2024.

As such, the non-GAAP effective tax rate for the third quarter was 23.4% in 2025 and 23.8% in 2024.

(7) This non-GAAP measure was calculated by applying the two-class method to adjusted net income attributable to T.

2 unchanged sentences

The calculation of adjusted net income allocated to common stockholders is as follows:

Three months ended Six months ended

Three months ended Nine months ended

(in millions) 9/30/2025 9/30/2024 9/30/2025 9/30/2024

17 unchanged sentences

Our discretionary investment portfolio is primarily comprised of short duration bond funds, which typically yield higher than money market rates.

Our subsidiaries outside the United States held cash and discretionary investments of $741.7 million at June 30, 2025 and $653.9 million at December 31, 2024.

Our subsidiaries outside the United States held cash and discretionary investments of $812.2 million at September 30, 2025 and $653.9 million at December 31, 2024.

Given the availability of our financial resources and cash expected to be generated through future operations, we do not maintain an available external source of additional liquidity.

2 unchanged sentences

The following table details how T.

Rowe Price Group, Inc.’s interests in cash and investments relate to where they are presented on the unaudited consolidated balance sheet as of June 30, 2025.

Rowe Price Group, Inc.’s interests in cash and investments relate to where they are presented on the unaudited consolidated balance sheet as of September 30, 2025.

(in millions) Cash and cash equivalents Investments Net assets of consolidated investment products (1)

14 unchanged sentences

Redeemable non-controlling interests — — 984.9 984.9

As reported on unaudited consolidated balance sheet at June 30, 2025

As reported on unaudited consolidated balance sheet at September 30, 2025

$ 3,634.8 $ 3,417.4 $ 1,755.0 $ 8,807.2

2 unchanged sentences

mutual funds, ETFs, and funds regulated outside the U.S.

The $808.4 million represents the total value at June 30, 2025 of our interest in the consolidated investment products.

The $770.1 million represents the total value at September 30, 2025 of our interest in the consolidated investment products.

The total net assets of the T.

Rowe Price investment products at June 30, 2025 of $1,907.5 million includes assets of $1,989.0 million, less liabilities of $81.5 million as reflected in our unaudited consolidated balance sheets.

Rowe Price investment products at September 30, 2025 of $1,755.0 million includes assets of $1,777.7 million, less liabilities of $22.7 million as reflected in our unaudited consolidated balance sheets.

(2) Includes $170.0 million of non-controlling interests in consolidated entities held by related parties, and we cannot sell in order to obtain cash for general operations.

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We increased our quarterly recurring dividend per common share in February 2025 by 2.4% to $1.27 per common share from $1.24 per common share.

Further, we expended $326.1 million in the first half of 2025 to repurchase 3.4 million shares of our outstanding common stock, at an average price of $97.30 per share.

These dividends and repurchases were expended using existing cash balances and cash generated from operations.

Further, we spent $483.8 million in the first nine months of 2025 to repurchase 4.8 million shares of our outstanding common stock, at an average price of $100.59 per share.

These dividends and repurchases were funded using existing cash balances and cash generated from operations.

While opportunistic in our approach to stock buybacks, we will generally repurchase our common stock over time to offset the dilution created by our equity-based compensation plans.

Since the end of 2022, we have returned over $3.7 billion to stockholders through stock repurchases and regular quarterly dividends, as follows:

Since the end of 2022, we have returned $4.2 billion to stockholders through stock repurchases and regular quarterly dividends, as follows:

(in millions) Recurring dividend Stock repurchases Total cash returned to stockholders

1 unchanged sentence

2024 1,135.2 334.5 1,469.7

Six months ended 6/30/2025

Nine months ended 9/30/2025

858.7 483.8 1,342.5

2 unchanged sentences

We expect to fund our anticipated capital expenditures with operating cash flows and other available resources.

The following table summarizes the cash flows for the six months ended June 30, 2025 and 2024, that are attributable to T.

The following table summarizes the cash flows for the nine months ended September 30, 2025 and 2024, that are attributable to T.

Rowe Price Group, Inc., our consolidated investment products, and the related eliminations required in preparing the statement.

Six months ended

Nine months ended

9/30/2025 9/30/2024

11 unchanged sentences

Amortization and impairment of acquisition-related assets and retention agreements 165.8 — — 165.8 196.5 — — 196.5

Fair value remeasurement of contingent liability — — — — (13.4) — — (13.4)

Stock-based compensation expense 134.2 — — 134.2 162.2 — — 162.2

15 unchanged sentences

Rowe Price Group, Inc.

provided cash flows of $1,446.4 million during the first half of 2025, a decrease of $24.0 million from $1,470.4 million provided during the 2024 period.

The decrease was primarily driven by a $61.5 million decrease in net income and a $30.3 million decrease in cash flows related to timing differences in the cash settlement of our assets and liabilities.

These decreases in operating cash flows were offset in part by a $37.1 million increase in the add-back for non-cash items as detailed in the table above.

provided cash flows of $2,380.0 million during the first nine months of 2025, an increase of $40.6 million from $2,339.4 million provided during the 2024 period.

The increase was primarily driven by a $40.5 million increase in cash flows related to timing differences in the cash settlement of our assets and liabilities.

Additionally, in 2025, net redemptions from certain investment products that economically hedge our deferred compensation liabilities were $33.5 million higher as compared to the 2024 period.

These increases were offset in part by a $18.4 million decrease in net income and a $15.0 million decrease in the add-back for non-cash items as detailed in the table above.

The remaining change in reported cash flows from operating activities was attributable to the net change in trading securities held in our consolidated investment products’ underlying portfolios.

Our interim operating cash flows does not include the cash impact of variable compensation that is accrued throughout the year before being substantially paid out in December.

Investing Activities

I nvesting Activities

Net cash used in investing activities attributable to T.

1 unchanged sentence

totaled $79.3 million in 2025 compared with $143.1 million in 2024.

In 2025, we decreased our property and equipment expenditures by $61.6 million and decreased other investing activity by $20.9 million compared to the 2024 period.

Partially offsetting these decreases was lower net proceeds from the sale of sponsored investment products.

During 2025, we had net proceeds from the sale of investments of $20.3 million compared to $172.0 million during the 2024 period.

In 2025, we decreased our property and equipment expenditures by $102.9 million and had higher net proceeds from the sale of sponsored investment products.

We had net proceeds from the sale of investments of $241.9 million in the 2025 period compared to $209.9 million during the 2024 period.

Partially offsetting these changes was an increase in other investing activity of $71.1 million compared to the 2024 period.

We eliminate our capital in our consolidated investment products in preparing our consolidated statements of cash flows.

34 unchanged sentences

client-related cash inflows and outflows in our products, performance fees, capital allocation-based income, fluctuations in global financial markets that result in appreciation or depreciation of the assets under our management, our introduction of new investment products, and changes in retirement savings trends relative to participant-directed investments and defined contribution plans.

The ability to attract and retain investors’ assets under our management is dependent on investor sentiment and confidence, including changes in sentiment and confidence that may result from U.S.

Our ability to attract and retain investors’ assets under our management is dependent on investor sentiment and confidence, including:

changes thereto that may result from U.S.

trade policies, market volatility and economic outlook;

24 unchanged sentences

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 2. Management’s Discussion and Analysis