Executive Summary

Q2 2025 delivered a clean beat on both EPS and revenue: adjusted diluted EPS $0.90 vs $0.835* consensus (GAAP diluted EPS $0.95) and revenue $633.2M vs $618.1M*; positive flows and market/FX drove record AUM $457.3B . Results were aided by improved investment performance and the Guardian partnership onboarding $46.5B of general account assets .
Net inflows were $46.7B (fifth consecutive positive quarter), including $46.5B from Guardian; ex‑Guardian, flows were still positive; AUM rose 23% QoQ and 27% YoY to $457.3B .
Mix shift will weigh on fee rate: net management fee margin was 47.5 bps in Q2; with Guardian’s portfolio, management expects aggregate net fee rate to be ~4.5 bps lower than Q2’s average (better than prior 5–6 bps dilution guidance) .
Capital return remained robust: $50M buybacks (1.3M shares) and a $0.40 dividend declared for Q2; $113M returned to shareholders in the quarter .

Note: Consensus values marked with * are from S&P Global Market Intelligence.

What Went Well and What Went Wrong

What Went Well

Guardian partnership executed and upsized: JHG is “now managing $46.5B” of Guardian’s largely IG fixed income general account (above the prior ~$45B plan), plus Guardian seeded $100M into newly launched JABS ETF .
Flows breadth beyond Guardian: ex‑Guardian, net flows were positive; 15 strategies (incl. four ETFs) had ≥$100M net inflows; institutional gross sales ex‑Guardian were the best in over two years .
Investment performance improved: 72%/76%/67%/72% of AUM beat benchmarks over 1/3/5/10 yrs; Morningstar top‑half quartile share 75%/74%/72%/88%; CEO: “Our investment performance is solid…net flows are positive” .

What Went Wrong

Retail/Equities still soft: Intermediary channel net flows were -$1.2B; equity flows -$2.6B amid a challenging active equities backdrop .
Fee rate dilution ahead: With Guardian’s low‑fee assets, aggregate net management fee rate expected to be ~4.5 bps lower than Q2’s 47.5 bps average; mix shift is a structural headwind to revenue yield .
Non‑comp expenses trending higher: Management now expects high single‑digit non‑comp growth in 2025 (vs prior guidance’s high end of mid‑to‑high), driven solely by FX from a weaker USD .

Financial Results

P&L summary (GAAP and Adjusted)

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($M, GAAP)	588.4	621.4	633.2
Operating Income ($M, GAAP)	164.3	153.6	163.8
Operating Margin (GAAP)	27.9%	24.7%	25.9%
Diluted EPS (GAAP, $)	0.81	0.77	0.95
Adjusted Revenue ($M)	458.3	486.5	497.9
Adjusted Operating Income ($M)	164.7	156.6	167.0
Adjusted Operating Margin	35.9%	32.2%	33.5%
Adjusted Diluted EPS ($)	0.85	0.79	0.90

Actual vs Wall Street Consensus (Q2 2025)

Metric	Consensus*	Actual	Beat/Miss
Adjusted EPS ($)	0.835*	0.90	— Beat
Revenue ($M, GAAP)	618.1*	633.2	— Beat

Note: Asterisked values from S&P Global Market Intelligence.

AUM and Flows (Total)

Metric ($B)	Q2 2024	Q1 2025	Q2 2025
Opening AUM	352.6	378.7	373.2
Sales	18.1	22.9	71.8
Redemptions	(16.4)	(20.9)	(25.1)
Net Sales/(Redemptions)	1.7	2.0	46.7
Market/FX	7.1	(7.5)	37.4
Closing AUM	361.4	373.2	457.3

Capability Flows and Ending AUM (Q2 2025)

Capability	Sales ($B)	Redemptions ($B)	Net Flows ($B)	Ending AUM ($B)
Equities	8.2	(10.8)	(2.6)	243.6
Fixed Income	60.5	(10.8)	49.7
Multi‑Asset	1.1	(2.2)	(1.1)
Alternatives	2.0	(1.3)	0.7	15.9
Total	—	—	46.7	457.3

KPIs and other items

Net management fee margin: 47.5 bps; aggregate net fee rate expected to be ~4.5 bps lower than this level with Guardian assets .
Adjusted comp-to-revenue ratio: 43.2% in Q2 (vs 45.8% in seasonally higher Q1) .
Performance fees: $14.8M (incl. seasonal UK/Europe trust fees; US funds positive $1M, first positive in over 10 years) .
Capital return: $0.40 dividend declared; ~1.3M shares repurchased for ~$50M in Q2 .
Cash and cash equivalents: $882.6M at 6/30/25 (down from $1,083.6M at 3/31/25) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Aggregate net mgmt fee rate	Post‑Guardian	~5–6 bps lower vs pre‑Guardian baseline	~4.5 bps lower than Q2’s 47.5 bps average	Improved (less dilution)
Comp-to-revenue ratio (Adjusted)	FY 2025	43–44%	43–44% (unchanged)	Maintained
Non‑comp opex growth (Adjusted)	FY 2025	Higher end of mid‑ to high‑single digits	High single‑digit %; change driven solely by weaker USD FX impact	Raised high end
Tax rate on adjusted net income	FY 2025	23–25%	23–25% (unchanged)	Maintained
Dividend	Q2 2025	$0.40 (Q1 declaration)	$0.40 declared for Q2	Maintained

Earnings Call Themes & Trends

Topic	Q4 2024 (Q‑2)	Q1 2025 (Q‑1)	Q2 2025 (Current)	Trend
ETF momentum (active FI; securitized)	8th largest active ETF provider; 3rd largest active FI; Europe expansion via Tabula, launch of JCL0 (EU AAA CLO)	Active ETF flows strong; institutional adoption building	Launched JABS; Guardian seeded $100M; active FI ETF net inflows $1B; four ETFs ≥$100M inflows	Accelerating
Guardian partnership	—	Announced: $45B GA, up to $400M seed; fee rate dilution 5–6 bps	Completed: $46.5B onboarded; fee rate dilution now ~4.5 bps vs Q2 avg	Executed, better economics
Investment performance	Majority AUM outperforming; strong Morningstar ranks	Medium/long‑term solid despite short‑term volatility	72%/76%/67%/72% beating 1/3/5/10 yrs; Morningstar 75/74/72/88%	Improving
Institutional channel	Building pipeline; 10 fundings $100–500M in Q4	Positive net inflows; RFPs and consultant support rising	Best ex‑Guardian institutional gross sales in 2+ yrs; 3rd consecutive positive quarter	Strengthening
Tokenization/digital assets	Strategy highlighted; Anemoy/Centrifuge partnership	Tokenized Treasury (JTRSY) traction; strategy rationale	Tokenized funds gaining interest (stablecoin users); expanding use cases	Broadening
Fee rate & mix	Fee rate resilient in 2024	Fee rate to be 5–6 bps lower post‑Guardian	Q2 47.5 bps; forward dilution ~4.5 bps	Slightly better than feared
Expenses	2025 comp 43–44%; non‑comp mid‑ to high‑sd growth	Same ranges; bias to higher end	Comp 43–44% unchanged; non‑comp high single‑digit due to FX	Controlled but higher FX drag

Management Commentary

“Net flows were positive US$46.7 billion this quarter, marking our fifth consecutive quarter of positive net flows… Our world-class investment team continued to deliver solid investment performance.” — CEO Ali Dibadj .
“Janus Henderson is now managing $46.5 billion… This expands Janus Henderson fixed income AUM to $142 billion which is now over 30% of company wide AUM.” — CEO Ali Dibadj .
“Net management fee margin was 47.5 basis points in the second quarter… we expect that our aggregate net management fee rate will be approximately 4.5 basis points lower than the second quarter average.” — CFO Roger Thompson .
“Adjusted diluted EPS was $0.90, up 6% from the comparable second quarter 2024 period… our balance sheet remains strong and stable.” — CFO Roger Thompson .

Q&A Highlights

Institutional outlook: Management sees broadening wins and better consultant reception; pipeline indicators (meetings, finals) trending positively, but acknowledges ongoing work to make it sustainable .
Retail equities headwinds: Active equities remain in outflow; management is focused on protecting and growing core equity franchises with strong long‑term alpha and product innovation (e.g., Global Small Cap) .
JABS/ETF adoption: JABS addresses client demand (notably insurers) for short‑duration, high‑quality fixed‑rate securitized assets and complements JAAA; management has “high aspirations” for the strategy .
Performance fee cadence: Too early to predict 2H; H2’24 had strong fees from Biotech; comp ratio guidance (43–44%) embeds some performance fees .
Regional intermediary progress: Brand/reputation improving across Continental Europe, Middle East, Asia; UK remains a relative laggard to address .

Estimates Context

Q2 2025 results vs consensus: Adjusted EPS $0.90 vs $0.835*; revenue $633.2M vs $618.1M* — both beats. Given the expected ~4.5 bps fee rate dilution post‑Guardian and high single‑digit non‑comp expense growth from FX, models may need to adjust revenue yield and expense trajectories accordingly, while incorporating higher AUM and improving performance fees momentum .
Note: Consensus values marked with * are from S&P Global Market Intelligence.

Key Takeaways for Investors

Beat-and-raise quality print on the back of record AUM and diversified flows; ex‑Guardian inflows positive, supporting organic growth narrative .
Guardian integration is a structural AUM step‑up; fee rate dilution is slightly better than feared (~4.5 bps vs 5–6 bps prior) and partially offset by scale .
Active fixed income ETFs remain a core engine (JAAA, JMBS, JSI, plus new JABS); institutional adoption is broadening, a catalyst for continued inflows .
Expense discipline intact (comp 43–44%); FX pushes non‑comp higher but framed as investment‑supportive; tax rate steady at 23–25% .
Near-term trading setup: Positive narrative momentum (flows breadth, performance improvement, partnership execution) vs. mix‑driven fee rate headwind; watch performance fees trajectory into Q4 seasonality and retail equity stabilization .
Medium-term thesis: Brand and distribution rebuild, product innovation (tokenization, ETFs), and institutional pipeline offer multiple avenues for durable organic growth while maintaining capital return (dividends, buybacks) .

Appendix: Additional Disclosures

Dividend and buybacks: $0.40 dividend declared for Q2 2025; ~1.3M shares repurchased for ~$50M; $113M total capital returned in Q2 .
Performance metrics: % of AUM outperforming benchmarks (1/3/5/10‑yr): 72%/76%/67%/72%; mutual fund AUM in top two Morningstar quartiles: 75%/74%/72%/88% .

Notes: Asterisked consensus metrics are Values retrieved from S&P Global.

JANUS HENDERSON GROUP PLC (JHG)·Q2 2025 Earnings Summary