Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

39fc573bcebda28f712fb6772f00078a970e06f41c1a1bd5a56985aacc98cfb2

3100c5e082b506a8a79ac06a189e388b406e74db2ca2f44284e52f26c1ad26c0

e62b25ce7b6d2761cb53de06defef114996cd4712ce5a2d5f574518436e83b80

56ee1976082cbd0c0ac4d72fb937c1a8a2000659c48bb537c2e34d71a86ed65c

United States

Luxembourg

Asia-Pacific

Americas Excluding US

- The Bahamas

- Canada

EMEA Excluding Luxembourg

- Europe, the Middle East, and Africa

- Latin America

- Not Earned From Contracts With Customers

Total Revenue

37d96fe274a013e2daf57678df7114933c9db4dae6dd13e09ea952055f6c36a4

Investment Management Fees

Sales and Distribution Fees

Shareholder Servicing Fees

Other

Other Revenues

Total Operating Revenues

a967b93d5649408ffdeb985ed2d7c8ef670b9b7a1c74687713125c943eb73ee8

Investment management fees (USD, millions)

Sales and distribution fees (USD, millions)

Shareholder servicing fees (USD, millions)

Other operating revenues (USD, millions)

Total operating revenues (USD, millions)

Compensation and benefits (USD, millions)

Sales, distribution and marketing expenses (USD, millions)

Information systems and technology expenses (USD, millions)

Occupancy expenses (USD, millions)

Amortization of intangible assets (USD, millions)

General, administrative and other expenses (USD, millions)

Total operating expenses (USD, millions)

Operating Income (USD, millions)

Investment and other income, net (USD, millions)

Interest expense (USD, millions)

Investment and other income (losses) of consolidated investment products, net (USD, millions)

Expenses of consolidated investment products (USD, millions)

Other income, net (USD, millions)

Income before taxes (USD, millions)

Taxes on income (USD, millions)

Net income (USD, millions)

Net income (loss) attributable to Redeemable noncontrolling interests (USD, millions)

Net income (loss) attributable to Nonredeemable noncontrolling interests (USD, millions)

Net Income Attributable to Franklin Resources, Inc. (USD, millions)

Basic Earnings per Share (USD)

Diluted Earnings per Share (USD)

518507272d0a590261f8bb12bb88753de20c32db79398eb91f546cb2dacdf909

The sharp decline in cash during Q1 2025 was primarily due to **net cash used in operating activities of $(145.2) million** and **net cash used in investing activities of $(656.5) million**. The major drivers in investing were net purchases of investments and increased purchases by collateralized loan obligations. Although there was **net cash provided by financing activities of $87.9 million**, it was not enough to offset these outflows, and the decline was further impacted by **a negative exchange rate effect of $(50.0) million**.  **[0000038777-25-000017_ben-20241231.htm:5]** **[0000038777-25-000017_ben-20241231.htm:29]** 

Why did cash decline sharply in Q1 2025?

The significant reduction in debt in Q4 2024 was primarily driven by the **repayment of $250 million in senior notes**.  **[0000038777-24-000206_ben-20240930.htm:122]**  This repayment played a major role in lowering the overall debt level. Other factors such as the incurrence of **debt issuance costs** and maintaining **no borrowings under the credit facility** also contributed to the reduction, even while the debt associated with Consolidated Investment Products increased.  **[0000038777-24-000206_ben-20240930.htm:122]** **[0000038777-24-000206_ben-20240930.htm:105]** 

What drove the significant reduction in debt in Q4 2024?

In **Q2 2024**, the jump in total assets was primarily driven by the **acquisition of Putnam Investments** which added **$148.3 billion** to assets under management, accompanied by **positive market performance** that contributed an additional **$38.8 billion** and **$6.9 billion** in long-term net inflows. Additionally, increases in **investments** and **intangible assets** further supported the surge, despite **$4.8 billion** in cash management net outflows.  **[0000038777-24-000068_exhibit991q2fy24.htm:2]** **[0000038777-24-000069_ben-20240331.htm:23]** **[0000038777-24-000068_exhibit991q2fy24.htm:6]** 

What explains the jump in total assets in Q2 2024?

98a8086f25a871422e2217377ee21607d537f0e395691204ecd682853bfff3dd

Franklin Resources' Operating Income was significantly low in Q4 2024 primarily because the company recorded a **$389.2 million non-cash charge** due to the **impairment of intangible assets** associated with mutual fund contracts managed by Western Asset Management. Additionally, during this period, the company experienced an **operating loss of $150.7 million**, which further contributed to the sharp decline in operating performance.  **[0000038777-24-000177_exhibit991q4fy24.htm:1]** **[BEN_3405593_7]** 

Why was Operating Income so low in Q4 2024?

In Q4 2024, the negative net income was primarily driven by a **$389.2 million non-cash impairment charge** related to certain mutual fund contracts, a **higher tax rate due to discrete tax expenses**, and **foreign exchange losses**. These factors combined to turn prior profitable quarters into a net loss for the period.  **[0000038777-24-000177_exhibit991q4fy24.htm:1]** **[BEN_3405593_7]** 

What led to the negative Net Income in Q4 2024?

EPS dropped significantly in Q2 2024 primarily due to a **36% decrease in net income** (from **$194.2 million** in Q2 2023 down to **$124.2 million** in Q2 2024) and a **notable increase in the weighted-average shares outstanding** (raising dilution effects). Additionally, a substantial **49% decline in operating income** (from **$255.1 million** to **$129.3 million**) compounded by higher expense items such as **compensation and benefits expenses** (including performance fees, deferred compensation, and vacation accruals adding about **$30 million**) further contributed to the significantly lower EPS in Q2 2024.  **[0000038777-24-000068_exhibit991q2fy24.htm:1]** **[0000038777-24-000069_ben-20240331.htm:10]** **[BEN_3381348_10]** 

Why did EPS drop significantly in Q2 2024?

The near doubling of shareholder servicing fees in **Q2 2024** was primarily driven by the fees earned by **Putnam Investments** following its acquisition. This acquisition significantly boosted the fees from **$43.3 million** to **$68.0 million**, marking a **57% increase**.  **[0000038777-24-000069_ben-20240331.htm:28]** **[0000038777-24-000069_ben-20240331.htm:1]** 

Why did Shareholder Servicing Fees nearly double in Q2 2024?

The significant increase in the amortization of intangible assets in Q1 2025 was primarily driven by the acquisition of Putnam, which notably impacted operating expenses, including amortization costs. However, due to the ongoing integration of the combined businesses, it was not practicable to separately quantify the specific impact of the legacy Putnam business.  **[0000038777-25-000017_ben-20241231.htm:1]** **[0000038777-25-000017_ben-20241231.htm:22]** 

What led to the significant increase in Amortization of Intangible Assets in Q1 2025?

89d4f9a71051aa0ccd4016b54ae39a09a2020d0618d23208690eb0bcfc1fcf8a

664a11374c630ffe3620f7adbafa9f2e3cce3ef881b65f2ecd44ffe6437fc3a9

92518f7d11374cfdd1bfe9977d3c14ee8055fcb19c88316f5d9905141c1da039

f0c993963ad282768879d26ba58dbf4513f1447e188b09d1a0a05ff6aeca0755

Cash and cash equivalents (USD, millions)

Receivables (USD, millions)

Investments (USD, millions)

Assets of consolidated investment products - Cash and cash equivalents (USD, millions)

Assets of consolidated investment products - Investments, at fair value (USD, millions)

Property and equipment, net (USD, millions)

Goodwill (USD, millions)

Intangible assets, net (USD, millions)

Operating lease right-of-use assets (USD, millions)

Other Assets (USD, millions)

Total Assets (USD, millions)

Accounts payable and accrued expenses (USD, millions)

Income taxes (USD, millions)

Debt (USD, millions)

Liabilities of consolidated investment products - Accounts payable and accrued expenses (USD, millions)

Liabilities of consolidated investment products - Debt (USD, millions)

Deferred tax liabilities (USD, millions)

Operating lease liabilities (USD, millions)

Other Liabilities (USD, millions)

Total liabilities (USD, millions)

Redeemable Noncontrolling Interests (USD, millions)

Common stock (USD, millions)

Capital in excess of par (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total Franklin Resources, Inc. stockholders’ equity (USD, millions)

Nonredeemable noncontrolling interests (USD, millions)

Total stockholders’ equity (USD, millions)

Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity (USD, millions)

e7bd36e3d67383516ef5eba92ff61eecfa9667c05b2e3b4683aec030fae2fdf2

Franklin Resources Inc (BEN)

Financials