A global investment manager that looks after money for everyday savers and big institutions, offering mutual funds, ETFs (including the popular QQQ tech index fund), and retirement plans in dozens of countries. Its roots trace to 1978, when Charles Brady and eight colleagues bought out the money-management arm of an Atlanta bank and named the new firm Invesco — a mashup of "Investment Counsel." The name stuck even as it merged with Britain's AIM in 1997 and absorbed PowerShares, Guggenheim's ETF business, and OppenheimerFunds along the way.
Invesco AUM reaches $2.5 trillion as record $45.1B in net long-term inflows and the QQQ conversion drive revenue up 20.5%.
Invesco pulled in a record $45.1 billion in net long-term inflows this quarter, pushing to $2.5 trillion. rose 20.5% to $1.83 billion and widened to 37.5%, driven by higher average AUM and the inclusion of QQQ management fees after its conversion to an open-end ETF. The business is scaling, but the fee rate on those assets continues to grind lower.
Key takeaways
Total reached $2.5 trillion, up from $2.1 trillion a year ago, after record net long-term inflows of $45.1 billion and market gains.
Net rose 20.5% to $1,825.6 million, driven by higher average and the inclusion of management fees from the QQQ ETF following its conversion to an open-end structure.
expanded to 37.5% from 31.2% a year ago, as growth and a net benefit from the sale of the Canadian business and a restructuring outpaced higher employee compensation and marketing costs.
Section summaries
Management's Discussion and Analysis
Record net long-term inflows of $45.1B and market gains drove AUM to $2.5T, boosting net revenues 20.3% YoY.
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Net revenues rose 20.3% to $1,329.1M, driven by higher average and the inclusion of QQQ's management fees after its conversion to an open-end ETF.
Adjusted expanded to 37.5% from 31.2%, as growth and a net benefit from the Canadian sale and restructuring outpaced higher employee compensation and marketing costs.
rose 70.0% to $364.2 million, and the widened 5.8 points to 19.9%, partly because the prior-year quarter included $16.9 million in severance costs from a fundamental equities reorganization.
The , excluding performance fees, fell to 22.9 in the first quarter and continued to decline this quarter as the mix shift into lower-fee passive products persisted.
The company reduced debt by $342.7 million from the prior quarter, repurchased $50.0 million in common shares, and ended the period with $2.68 billion in total liquidity sources.
What changed
The continued to decline, falling from 28.1 a year ago and 22.9 basis points last quarter, as the passive mix shift that earlier filings flagged shows no sign of stabilizing.
The $1.08 billion draw reported last quarter was partially addressed: debt fell by $342.7 million sequentially to $1,624.0 million, though a $736.0 million revolver balance remains outstanding.
Common share repurchases ticked up to $50.0 million this quarter from $40.0 million in Q1 FY2026, still a modest pace against the new $1.0 billion authorization announced last quarter.
The SEC electronic communications recordkeeping investigation flagged in prior filings was not resolved, and the existing $50.0 million accrual remains unchanged.
What to watch
Whether the finds a floor above 22 as the QQQ conversion and record passive inflows continue to reshape the fee mix.
The pace of further debt reduction, particularly the repayment of the $736.0 million balance, and its effect on .
Whether common share repurchases accelerate toward the $1.0 billion authorization now that debt is declining and liquidity remains at $2.68 billion.
The resolution of the SEC electronic communications recordkeeping investigation and whether the $50.0 million accrual proves sufficient.
Record net long-term inflows of $45.1B were led by ETFs and Index, QQQ, China JV, and Private Markets, while Fundamental Equities saw $7.7B in net outflows.
Employee compensation increased 7.1% to $546.7M due to higher variable compensation and mark-to-market adjustments on deferred compensation, partially offset by lower salaries from divestitures.
The company reduced debt by $342.7M and repurchased $50.0M in common shares, while maintaining a strong liquidity position with $2.68B in total sources of liquidity.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risks remain AUM price risk, securities risk, interest rate risk, and FX risk with no material changes from the 10-K.
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market price risk is the dominant exposure: management fees tied to AUM values can decline from lower markets, performance, or client outflows/reallocations.
A hypothetical decline in average would reduce proportionally, but certain expenses may not fall in step, magnifying the impact on and .
Securities market risk arises from investments in managed products used to seed new funds or hedge deferred compensation plans, with exposure concentrated in fair-value instruments.
Interest rate risk is driven by debt and cash equivalents; 24.1% of borrowings carry fixed rates for a weighted-average 17.43 years, and a $736.0M balance is outstanding.
Foreign exchange risk stems from translating foreign operations into USD and from monetary assets/liabilities in non-functional currencies; net FX revaluation gains were $4.0M in H1 FY2026 versus $10.3M losses a year earlier.
See Part I, Item 1, Financial Statements - Note 10, "Commitments and Contingencies - Legal Contingencies," for information regarding legal proceedings.
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See Part I, Item 1, Financial Statements - Note 10, "Commitments and Contingencies - Legal Contingencies," for information regarding legal proceedings.
The company has had no significant changes in its risk factors from those previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.
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The company has had no significant changes in its risk factors from those previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.