BEN Filings — Franklin Resources, Inc. - FilingSpy
BEN
Franklin Resources, Inc.
A global investment manager, widely known as Franklin Templeton, that runs money for individuals, institutions, and high-net-worth clients around the world. It works through a family of specialist firms—including Western Asset Management, Clarion Partners, and Putnam—each running its own funds and accounts across stocks, bonds, alternatives, and other strategies. Founded in New York City in 1947 by Rupert Johnson Sr., the firm was named after Benjamin Franklin, whose frugality and prudence the founder admired; its stock ticker symbol is even "BEN," a nod to its namesake.
Q3 FY2026 revenue rose 14% to $2.36B while a $100M regulatory settlement weighed on GAAP operating income.
A $100M regulatory settlement weighed on Franklin's profit this quarter. rose 14% to $2,358.4M and rose 107% to $0.31 as higher average and performance fees lifted results, while rose 35% to $508.9M excluding the settlement and a $33M . The underlying business improved, but a regulatory charge and open investigations leave the margin exposed.
Key takeaways
rose 40% to $215.8M but included a $100.0M charge for a significant regulatory settlement and $33.0M in for certain acquired management contracts.
rose 14.3% to $2,358.4M as investment management fees grew 14% to $1,866.2M on higher average equity, multi-asset, and alternative and a $17.5M increase in performance fees to $78.1M.
, which excludes acquisition-related items and the regulatory settlement, increased 35% to $508.9M with an of 28.0% versus 23.7% a year ago.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 operating revenues rose 14% to $2.36B on higher average AUM and performance fees, while a $100M regulatory settlement weighed on GAAP results.
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Total reached $1,791.6B, up 11% , driven by $98.0B in net market gains and $18.4B in long-term net inflows, partially offset by $7.0B in cash management outflows.
Total reached $1,791.6B, up 11% , driven by $98.0B in net market gains and $18.4B in , partially offset by $7.0B in cash management outflows.
The company repaid $450M of maturing senior notes using borrowings and existing cash and repurchased 10.4M shares for $348.1M during the quarter.
rose 85.8% to $171.5M and rose 106.7% to $0.31 versus the prior-year quarter, with at $581.2M versus a $20.7M use a year earlier.
What changed
The prior 10-Q flagged the Western Asset Management SEC, CFTC, and DOJ investigations and their impact on the $450.0M remaining intangible carrying value; this filing shows a $100.0M regulatory settlement charge but does not state the investigations are resolved.
Prior filings flagged the next effective fee rate to track compression below FY2025; this quarter investment management fees rose 14% to $1,866.2M with performance fees up $17.5M, but no new effective fee rate in is disclosed.
of $18.4B this quarter continue the reversal from FY2025's $97.4B of outflows and Q1 FY2026's $28.0B inflows, confirming the Western Asset-led redemption trend has not returned.
Q2 FY2026 was a $27.6M use; this quarter operating cash flow was $581.2M, a reversal to generation.
rose to 28.0% from 27.1% in Q2 FY2026 and 25.0% in Q1 FY2026, extending the step-up as Putnam retention costs step down.
What to watch
Next quarter's Western Asset Management-specific long-term net flow figure to confirm inflows hold without WAM redemptions returning
Disclosure of the effective fee rate to track compression below the FY2025 level as fixed-income mix grows
Outcome of the Western Asset Management SEC, CFTC, and DOJ investigations and impact on the $450.0M remaining intangible carrying value
Q4 FY2026 after this quarter's $581.2M and the $348.1M
Investment management fees grew 14% to $1,866.2M, reflecting higher average equity, multi-asset, and alternative and a $17.5M increase in to $78.1M.
rose 40% to $215.8M, but included a $100.0M charge for a significant regulatory settlement and $33.0M in for certain acquired management contracts.
, which excludes acquisition-related items and the regulatory settlement, increased 35% to $508.9M, with an of 28.0% versus 23.7% a year ago.
The company repaid $450M of maturing senior notes using borrowings and existing cash, and repurchased 10.4M shares for $348.1M during the quarter.
Quantitative and Qualitative Disclosures About Market Risk
During the nine months ended June 30, 2026, there were no material changes from the market risk disclosures in our Form 10‑K for the fiscal year ended September 30, 2025. 41 Table of Contents
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During the nine months ended June 30, 2026, there were no material changes from the market risk disclosures in our Form 10‑K for the fiscal year ended September 30, 2025.
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Table of Contents
For a description of our legal proceedings, please see the description set forth in the “Legal Proceedings” section in Note 10 – Commitments and Contingencies in the notes to consolidated financial statements in Item 1 of Part I of this Form 10‑Q, which is incorporated herein by…
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For a description of our legal proceedings, please see the description set forth in the “Legal Proceedings” section in Note 10 – Commitments and Contingencies in the notes to consolidated financial statements in Item 1 of Part I of this Form 10‑Q, which is incorporated herein by reference.
There were no material changes from the Risk Factors previously disclosed in our last Annual Report on Form 10-K for fiscal year 2025. These Risk Factors could materially and adversely affect our business, financial condition and results of operations, and our business also coul…
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There were no material changes from the Risk Factors previously disclosed in our last Annual Report on Form 10-K for fiscal year 2025. These Risk Factors could materially and adversely affect our business, financial condition and results of operations, and our business also could be impacted by other risk factors that are not presently known to us or that we currently consider to be immaterial. Further, our disclosure of a risk should not be interpreted to imply that the risk has not already developed or materialized.