# FRANKLIN RESOURCES INC (BEN)

Informational only - not investment advice.

CIK: 0000038777
SIC: 6282 Investment Advice
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Security And Commodity Brokers, Dealers, Exchanges, And Services](/major-group/62/) > [SIC 6282 Investment Advice](/industry/6282/)
Latest 10-K filed: 2025-11-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=38777
Filing source: https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm

## At a glance

FY2025 · period end 2025-09-30 · filed 2025-11-10 · accession 0000038777-25-000238 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000038777.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 8,770,700,000 USD | 2025 | verified |
| Net income | 524,900,000 USD | 2025 | verified |
| Assets | 32,368,300,000 USD | 2025 | verified |
| Free cash flow | 911,600,000 USD | 2025 | computed |
| Net margin | 5.98% | 2025 | computed |
| Operating margin | 6.89% | 2025 | computed |
| Revenue YoY | +3.45% | 2025 | computed |
| ROE | 4.35% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Asset managers and investment advisers](/compare/asset-managers/) · SIC 6282 Investment Advice

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including BEN

- Asset managers and investment advisers: [peer review](/compare/asset-managers/) · [market-risk page](/compare/asset-managers/risk/)

### Peer percentile fingerprint

| Ratio | BEN | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 6.0% | 15.3% | 15 | 34 |
| Operating margin | 6.9% | 21.8% | 16 | 20 |
| Revenue growth | 3.5% | 7.6% | 30 | 34 |
| FCF margin | 10.4% | 20.2% | 25 | 29 |
| ROE | 4.3% | 15.5% | 12 | 34 |
| ROA | 1.6% | 4.8% | 21 | 35 |
| Liabilities / equity | 1.51 | 1.57 | 48 | 34 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6282 Investment Advice, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 8770700000 | USD | 2025 | 2025-11-10 |
| Net income | 524900000 | USD | 2025 | 2025-11-10 |
| Assets | 32368300000 | USD | 2025 | 2025-11-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000038777.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 6,204,500,000 | 5,669,400,000 | 5,566,500,000 | 8,425,500,000 | 8,275,300,000 | 7,849,400,000 | 8,478,000,000 | 8,770,700,000 |
| Net income | 1,726,700,000 | 1,696,700,000 | 764,400,000 | 1,195,700,000 | 798,900,000 | 1,831,200,000 | 1,291,900,000 | 882,800,000 | 464,800,000 | 524,900,000 |
| Operating income | 2,365,700,000 | 2,264,300,000 | 2,028,200,000 | 1,466,900,000 | 1,048,900,000 | 1,875,000,000 | 1,773,900,000 | 1,102,300,000 | 407,600,000 | 604,100,000 |
| Diluted EPS | 2.94 | 3.01 | 1.39 | 2.35 | 1.59 | 3.57 | 2.53 | 1.72 | 0.85 | 0.91 |
| Operating cash flow | 1,727,700,000 | 1,135,400,000 | 2,229,700,000 | 268,500,000 | 1,083,300,000 | 1,245,400,000 | 1,956,700,000 | 1,089,200,000 | 971,300,000 | 1,066,100,000 |
| Capital expenditures | 97,600,000 | 74,900,000 | 106,500,000 | 233,700,000 | 103,700,000 | 79,300,000 | 90,300,000 | 148,800,000 | 177,100,000 | 154,500,000 |
| Dividends paid | 408,700,000 | 441,200,000 | 2,116,900,000 | 518,600,000 | 533,200,000 | 559,700,000 | 583,100,000 | 607,300,000 | 656,400,000 | 683,700,000 |
| Share buybacks | 1,308,000,000 | 765,300,000 | 1,424,800,000 | 754,500,000 | 218,200,000 | 208,200,000 | 180,800,000 | 256,300,000 | 274,400,000 | 240,300,000 |
| Assets | 16,098,800,000 | 17,534,000,000 | 14,383,500,000 | 14,532,200,000 | 21,684,500,000 | 24,168,400,000 | 28,060,600,000 | 30,121,200,000 | 32,464,500,000 | 32,368,300,000 |
| Liabilities | 3,509,500,000 | 2,656,300,000 | 3,132,000,000 | 3,161,300,000 | 10,273,500,000 | 11,424,800,000 | 14,235,900,000 | 16,547,300,000 | 17,899,700,000 | 18,179,500,000 |
| Stockholders' equity | 11,935,800,000 | 12,620,000,000 | 9,899,200,000 | 9,906,500,000 | 10,114,500,000 | 11,223,400,000 | 11,474,600,000 | 11,916,900,000 | 12,508,100,000 | 12,077,800,000 |
| Free cash flow | 1,630,100,000 | 1,060,500,000 | 2,123,200,000 | 34,800,000 | 979,600,000 | 1,166,100,000 | 1,866,400,000 | 940,400,000 | 794,200,000 | 911,600,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | 12.32% | 21.09% | 14.35% | 21.73% | 15.61% | 11.25% | 5.48% | 5.98% |
| Operating margin |  |  | 32.69% | 25.87% | 18.84% | 22.25% | 21.44% | 14.04% | 4.81% | 6.89% |
| Return on equity | 14.47% | 13.44% | 7.72% | 12.07% | 7.90% | 16.32% | 11.26% | 7.41% | 3.72% | 4.35% |
| Return on assets | 10.73% | 9.68% | 5.31% | 8.23% | 3.68% | 7.58% | 4.60% | 2.93% | 1.43% | 1.62% |
| Liabilities / equity | 0.29 | 0.21 | 0.32 | 0.32 | 1.02 | 1.02 | 1.24 | 1.39 | 1.43 | 1.51 |

## As-reported value updates

7 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/BEN/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000038777.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-12-31 |  |  | 0.32 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  |  | 0.38 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  |  | 0.44 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 1,986,100,000 | 295,500,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-31 | 1,991,100,000 | 251,300,000 | 0.50 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 2,152,800,000 | 124,200,000 | 0.23 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 | 2,122,900,000 | 174,000,000 | 0.32 | reported discrete quarter |
| 2024-Q4 | 2024-09-30 | 2,211,200,000 | -84,700,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-31 | 2,251,600,000 | 163,600,000 | 0.29 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 2,111,400,000 | 151,400,000 | 0.26 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 | 2,064,000,000 | 92,300,000 | 0.15 | reported discrete quarter |
| 2025-Q4 | 2025-09-30 | 2,343,700,000 | 117,600,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-31 | 2,327,100,000 | 255,500,000 | 0.46 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 | 2,294,900,000 | 268,200,000 | 0.49 | reported discrete quarter |
| 2026-Q3 | 2026-06-30 | 2,358,400,000 | 171,500,000 | 0.31 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from BEN's latest 10-K: [/company/BEN/business/](/company/BEN/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from BEN's latest 10-K: [/company/BEN/risk-factors/](/company/BEN/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/38777/000003877726000217/ben-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

This Form 10-Q and the documents incorporated by reference herein may include forward-looking statements that reflect our current views with respect to future events, financial performance and market conditions. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and generally can be identified by words or phrases written in the future tense and/or preceded by words such as “anticipate,” “believe,” “could,” “depends,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “potential,” “seek,” “should,” “will,” “would,” or other similar words or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements, including market and volatility risks, investment performance and reputational risks, global operational risks, competition and distribution risks, third-party risks, technology and security risks, human capital risks, cash management risks, and legal and regulatory risks. The forward-looking statements contained in this Form 10-Q or that are incorporated by reference herein are qualified in their entirety by reference to the risks and uncertainties disclosed in this Form 10-Q and/or discussed under the headings “Risk Factors” and “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (“fiscal year 2025”).

While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other possible future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.

The initiation or unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or inquiries may result in additional costs, monetary judgments, settlements or other remedies, including fines, penalties, restitution and/or alterations in our business practices or those of our investment groups. In addition, these matters may cause reputational harm to us or our investment groups and could result in additional expenses and collateral costs, outflows of assets under management or other financial impacts that could materially affect our results of operations and the price of our common stock.

If a circumstance occurs after the date of this Form 10-Q that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we undertake no obligation to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, to reflect any change in assumptions, beliefs or expectations, or any change in events, conditions or circumstances upon which any forward-looking statement is based, unless required by law.

In this section, we discuss and analyze the results of operations and financial condition of Franklin Resources, Inc. (“Franklin”) and its subsidiaries (collectively, the “Company”). The following discussion should be read in conjunction with our Annual Report on Form 10-K for fiscal year 2025 filed with the U.S. Securities and Exchange Commission (the “SEC”), and the consolidated financial statements and notes thereto included elsewhere in this Form 10-Q. Words such as “we,” “us,” “our” and similar terms refer to the Company.

23

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OVERVIEW

Franklin is a holding company with subsidiaries operating under our Franklin Templeton® and/or subsidiary brand names. We are a global investment management organization that derives operating revenues and net income from providing investment management and related services to investors in jurisdictions worldwide. We deliver our investment capabilities through a variety of investment products, which include our sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products and other investment vehicles. Related services include fund administration, sales and distribution, and shareholder servicing, which we may perform directly or outsource to third parties. We offer our services and products under our various distinct brand names, including, but not limited to, Alcentra®, Apera®, Benefit Street Partners®, Brandywine Global Investment Management®, Canvas®, Clarion Partners®, ClearBridge Investments®, Fiduciary Trust International™, Franklin®, Franklin Mutual Series®, K2®, Legg Mason®, Lexington Partners®, O’Shaughnessy®, Putnam®, Royce®, Templeton®, and Western Asset Management Company®. We offer a broad product mix of equity, fixed income, alternative, multi-asset and cash management asset classes and solutions that meet a wide variety of specific investment goals and needs for individual and institutional investors. We also provide sub-advisory services to certain investment products sponsored by other companies which may be sold to investors under the brand names of those other companies or on a co-branded basis.

The level of our revenues depends largely on the level and relative mix of assets under management (“AUM”). As noted in the “Risk Factors” section of our Annual Report on Form 10-K for fiscal year 2025, the amount and mix of our AUM are subject to significant fluctuations, including as a result of reputational harm, that can negatively impact our revenues and income. The level of our revenues also depends on the fees charged for our services, which are based on contracts with our funds and customers, fund sales, and the number of shareholder transactions and accounts. These arrangements could change in the future.

During our third fiscal quarter, U.S. and global equity markets provided positive returns on lower energy prices, resilient corporate earnings, and continued investment in artificial intelligence. The S&P 500 Index and the MSCI World Index increased by 15.2% and 13.9%, respectively, for the quarter, and by 13.1% and 13.5% for the fiscal year to date. Global bond markets remained relatively flat as the Bloomberg Global Aggregate Index increased 0.9% during the quarter and remained flat for the fiscal year to date.

Our total AUM at June 30, 2026 was $1,791.6 billion, 8% higher than at September 30, 2025 and 11% higher than at June 30, 2025. Monthly average AUM (“average AUM”) for the three and nine months ended June 30, 2026 increased 12% and 7% from the same periods in the prior fiscal year.

On October 1, 2025, we acquired Apera Asset Management (“Apera”), a pan-European private credit firm.

The business and regulatory environments in which we operate globally remain complex, uncertain and subject to change. We are subject to various laws, rules and regulations globally that impose restrictions, limitations, registration, reporting and disclosure requirements on our business, and add complexity to our global compliance operations.

Uncertainties regarding the global economy remain for the foreseeable future. As we continue to confront the challenges of the current economic and regulatory environments, we remain focused on the investment performance of our products and on providing high quality service to our clients. We continuously perform reviews of our business model. While we remain focused on expense management, we will also seek to attract, retain and develop personnel and invest strategically in systems and technology to support our evolving business. We will continue to seek to protect and further our brand recognition while developing and maintaining broker-dealer and client relationships. The success of these and other strategies may be influenced by the factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year 2025.    

24

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RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","Percent Change","","Nine Months Ended June 30,","","Percent Change"],["(in millions, except per share data)","","2026","","2025","","","2026","","2025"],["Operating revenues","","$","2,358.4","","$","2,064.0","","14","%","","$","6,980.4","","$","6,427.0","","9","%"],["Operating income","","215.8","","154.1","","40","%","","820.1","","518.7","","58","%"],["Operating margin1","","9.2","%","","7.5","%","","","","11.7","%","","8.1","%"],["Net income attributable to Franklin Resources, Inc.","","$","171.5","","$","92.3","","86","%","","$","695.2","","$","407.3","","71","%"],["Diluted earnings per share","","0.31","","0.15","","107","%","","1.26","","0.70","","80","%"],["As adjusted (non-GAAP):2"],["Adjusted operating income","","$","508.9","","$","377.8","","35","%","","$","1,420.8","","$","1,167.8","","22","%"],["Adjusted operating margin","","28.0","%","","23.7","%","","","","26.7","%","","23.9","%"],["Adjusted net income","","$","386.3","","$","263.4","","47","%","","$","1,149.2","","$","838.3","","37","%"],["Adjusted diluted earnings per share","","0.72","","0.49","","47","%","","2.13","","1.55","","37","%"]]
[[/GREPCENT_TABLE]]

_________________

1Defined as operating income divided by operating revenues.

2“Adjusted operating income,” “adjusted operating margin,” “adjusted net income” and “adjusted diluted earnings per share” are based on methodologies other than generally accepted accounting principles. See “Supplemental Non-GAAP Financial Measures” for definitions and reconciliations of these measures.

ASSETS UNDER MANAGEMENT

AUM by asset class was as follows:

[[GREPCENT_TABLE]]
[["(in billions)","","June 30, 2026","","June 30, 2025","","Percent Change"],["Equity","","$","756.9","","","$","656.6","","","15","%"],["Fixed Income","","441.4","","","441.7","","","0","%"],["Alternative","","294.2","","","258.4","","","14","%"],["Multi-Asset","","218.6","","","183.2","","","19","%"],["Cash Management","","80.5","","","71.9","","","12","%"],["Total","","$","1,791.6","","","$","1,611.8","","","11","%"]]
[[/GREPCENT_TABLE]]

Average AUM and the mix of average AUM by asset class are shown below.

[[GREPCENT_TABLE]]
[["(in billions)","","Average AUM 1","","Percent Change","","Mix of Average AUM"],["for the three months ended June 30,","","2026","","2025","","","2026","","2025"],["Equity","","$","725.9","","","$","620.5","","","17","%","","41","%","","40","%"],["Fixed Income","","438.4","","","441.8","","","(1","%)","","25","%","","28","%"],["Alternative","","288.5","","","254.5","","","13","%","","17","%","","16","%"],["Multi-Asset","","215.5","","","177.8","","","21","%","","12","%","","11","%"],["Cash Management","","81.7","","","70.6","","","16","%","","5","%","","5","%"],["Total","","$","1,750.0","","","$","1,565.2","","","12","%","","100","%","","100","%"]]
[[/GREPCENT_TABLE]]
_______________

1Average AUM is calculated as the average of the month-end AUM for the trailing four months.

25

Table of Contents

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/38777/000003877725000238/ben-20250930.htm
Complete FY 2025 MD&A: /company/BEN/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-10
Report date: 2025-09-30

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

The following discussion and analysis of the results of operations and financial condition of Franklin Resources, Inc. (“Franklin”) and its subsidiaries (collectively, the “Company”) should be read in conjunction with the “Forward-looking Statements” disclosure set forth in Part I and the “Risk Factors” set forth in Item 1A of Part I of this Annual Report on Form 10‑K (this “Annual Report”) and in any more recent filings with the U.S. Securities and Exchange Commission (the “SEC”), each of which describe our risks, uncertainties and other important factors in more detail. Words such as “we,” “us,” “our” and similar terms refer to the Company.

OVERVIEW

Franklin is a holding company with subsidiaries operating under our Franklin Templeton® and/or subsidiary brand names. We are a global investment management organization that derives operating revenues and net income from providing investment management and related services to investors in jurisdictions worldwide. We deliver our investment capabilities through a variety of investment products, which include our sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products and other investment vehicles. Related services include fund administration, sales and distribution, and shareholder servicing, which we may perform directly or outsource to third parties. We offer our services and products under our various distinct brand names, including, but not limited to, Alcentra®, Apera®, Benefit Street Partners®, Brandywine Global Investment Management®, Canvas®, Clarion Partners®, ClearBridge Investments®, Fiduciary Trust International™, Franklin®, Franklin Mutual Series®, K2®, Legg Mason®, Lexington Partners®, O’Shaughnessy®, Putnam®, Royce®, Templeton®, and Western Asset Management Company®. We offer a broad product mix of equity, fixed income, alternative, multi-asset and cash management asset classes and solutions that meet a wide variety of specific investment goals and needs for individual and institutional investors. We also provide sub-advisory services to certain investment products sponsored by other companies

32

Table of Contents

which may be sold to investors under the brand names of those other companies or on a co-branded basis.

The level of our revenues depends largely on the level and relative mix of assets under management (“AUM”). As noted in the “Risk Factors” section set forth above in Item 1A of Part I of this Annual Report, the amount and mix of our AUM are subject to significant fluctuations, including as a result of reputational harm, that can negatively impact our revenues and income. The level of our revenues also depends on the fees charged for our services, which are based on contracts with our funds and customers, fund sales, and the number of shareholder transactions and accounts. These arrangements could change in the future.

Despite periods of volatility driven by uncertainty regarding U.S. economic and trade policies, during the fiscal year ended September 30, 2025 (“fiscal year 2025”), U.S. and global equity markets provided positive returns, due in part to strong corporate earnings and easing of monetary policy. The S&P 500 Index and MSCI World Index increased 14.8% and 17.8% for the fiscal year. The global bond markets were also positive as the Bloomberg Barclays Global Aggregate Index increased 7.9% for the fiscal year.

Our total AUM was $1,661.2 billion at September 30, 2025, 1% lower than at September 30, 2024. Simple monthly average AUM (“average AUM”) increased 3% during fiscal year 2025.

The business and regulatory environments in which we operate globally remain complex, uncertain and subject to change. We are subject to various laws, rules and regulations globally that impose restrictions, limitations, registration, reporting and disclosure requirements on our business, and add complexity to our global compliance operations.

Uncertainties regarding the global economy remain for the foreseeable future. As we continue to confront the challenges of the current economic and regulatory environments, we remain focused on the investment performance of our products and on providing high quality service to our clients. We continuously perform reviews of our business model. While we remain focused on expense management, we will also seek to attract, retain and develop personnel and invest strategically in systems and technology that will provide a secure and stable environment. We will continue to seek to protect and further our brand recognition while developing and maintaining broker-dealer and client relationships. The success of these and other strategies may be influenced by the factors discussed in the “Risk Factors” section.

The following discussion and analysis includes a comparison of our financial results for fiscal year 2025 to fiscal year 2024. For discussion and analysis of the financial results for fiscal year 2024 compared to fiscal year 2023, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which was filed with the SEC on November 12, 2024.

33

Table of Contents

RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["(in millions, except per share data)","","","","","","","","2025 vs. 2024","","2024 vs. 2023"],["for the fiscal years ended September 30,","","2025","","2024","","2023"],["Operating revenues","","$","8,770.7","","$","8,478.0","","$","7,849.4","","3","%","","8","%"],["Operating income","","604.1","","407.6","","1,102.3","","48","%","","(63","%)"],["Operating margin1","","6.9","%","","4.8","%","","14.0","%"],["Net income attributable to Franklin Resources, Inc.","","$","524.9","","$","464.8","","$","882.8","","13","%","","(47","%)"],["Diluted earnings per share","","$","0.91","","$","0.85","","$","1.72","","7","%","","(51","%)"],["As adjusted (non-GAAP):2"],["Adjusted operating income","","$","1,640.2","","$","1,713.1","","$","1,823.8","","(4","%)","","(6","%)"],["Adjusted operating margin","","24.5","%","","26.1","%","","29.9","%"],["Adjusted net income","","$","1,195.8","","$","1,276.7","","$","1,332.2","","(6","%)","","(4","%)"],["Adjusted diluted earnings per share","","$","2.22","","$","2.39","","$","2.60","","(7","%)","","(8","%)"]]
[[/GREPCENT_TABLE]]
__________________

1Defined as operating income divided by total operating revenues.

2“Adjusted operating income,” “adjusted operating margin,” “adjusted net income” and “adjusted diluted earnings per share” are based on methodologies other than generally accepted accounting principles. See “Supplemental Non-GAAP Financial Measures” for definitions and reconciliations of these measures.

ASSETS UNDER MANAGEMENT

AUM by asset class was as follows:

[[GREPCENT_TABLE]]
[["(in billions)","","","","","","","","2025 vs. 2024","","2024 vs. 2023"],["as of September 30,","","2025","","2024","","2023"],["Equity","","$","686.2","","","$","632.1","","","$","430.4","","","9","%","","47","%"],["Fixed Income","","438.7","","","556.4","","","483.1","","","(21","%)","","15","%"],["Alternative","","263.9","","","249.9","","","254.9","","","6","%","","(2","%)"],["Multi-Asset","","193.9","","","176.2","","","145.0","","","10","%","","22","%"],["Cash Management","","78.5","","","64.0","","","60.8","","","23","%","","5","%"],["Total","","$","1,661.2","","","$","1,678.6","","","$","1,374.2","","","(1","%)","","22","%"]]
[[/GREPCENT_TABLE]]

Changes in average AUM are generally more indicative of trends in revenue for providing investment management services than the year-over-year change in ending AUM. Average AUM and the mix of average AUM by asset class are shown below.

[[GREPCENT_TABLE]]
[["(in billions)","","Average AUM 1","","2025 vs. 2024","","2024 vs. 2023"],["for the fiscal years ended September 30,","","2025","","2024","","2023"],["Equity","","$","637.0","","","$","544.0","","","$","436.1","","","17","%","","25","%"],["Fixed Income","","466.5","","","542.3","","","499.7","","","(14","%)","","9","%"],["Alternative","","253.7","","","254.9","","","251.9","","","0","%","","1","%"],["Multi-Asset","","179.8","","","161.1","","","144.4","","","12","%","","12","%"],["Cash Management","","69.7","","","63.5","","","68.3","","","10","%","","(7","%)"],["Total","","$","1,606.7","","","$","1,565.8","","","$","1,400.4","","","3","%","","12","%"]]
[[/GREPCENT_TABLE]]

_______________

1Average AUM is calculated as the average of the month-end AUM for the trailing thirteen months.

34

Table of Contents

[[GREPCENT_TABLE]]
[["","","Mix of Average AUM"],["for the fiscal years ended September 30,","","2025","","2024","","2023"],["Equity","","40","%","","35","%","","31","%"],["Fixed Income","","29","%","","35","%","","36","%"],["Alternative","","16","%","","16","%","","18","%"],["Multi-Asset","","11","%","","10","%","","10","%"],["Cash Management","","4","%","","4","%","","5","%"],["Total","","100","%","","100","%","","100","%"]]
[[/GREPCENT_TABLE]]

Components of the change in AUM are shown below. Net market change, distributions and other includes appreciation (depreciation), distributions to investors that represent return on investments and return of capital, and foreign exchange revaluation.

[[GREPCENT_TABLE]]
[["(in billions)"],["for the fiscal years ended September 30,","","2025 1","","2024","","2023"],["Beginning AUM","","$","1,678.6","","","$","1,374.2","","","$","1,297.4"],["Long-term inflows","","343.9","","","319.0","","","254.9"],["Long-term outflows","","(441.3)","","","(351.6)","","","(276.2)"],["Long-term net flows","","(97.4)","","","(32.6)","","","(21.3)"],["Cash management net flows","","12.6","","","2.7","","","4.3"],["Total net flows","","(84.8)","","","(29.9)","","","(17.0)"],["Acquisitions (Disposition)","","(0.2)","","","148.3","","","34.9"],["Net market change, distributions and other","","67.6","","","186.0","","","58.9"],["Ending AUM","","$","1,661.2","","","$","1,678.6","","","$","1,374.2"]]
[[/GREPCENT_TABLE]]
_______________

1On March 31, 2025, cash management AUM and net flows were updated to include $6.3 billion of AUM and $3.7 billion of net inflows related to two money market mutual fund share classes previously closed to third-party investors.

Components of the change in AUM by asset class were as follows:

[[GREPCENT_TABLE]]
[["(in billions)"],["for the fiscal year ended September 30, 2025","","Equity","","Fixed Income","","Alternative","","Multi-Asset","","Cash Management","","Total"],["AUM at October 1, 2024","","$","632.1","","","$","556.4","","","$","249.9","","","$","176.2","","","$","64.0","","","$","1,678.6"],["Long-term inflows","","159.7","","","114.7","","","23.2","","","46.3","","","\u2014","","","343.9"],["Long-term outflows","","(160.1)","","","(237.4)","","","(10.3)","","","(33.5)","","","\u2014","","","(441.3)"],["Long-term net flows","","(0.4)","","","(122.7)","","","12.9","","","12.8","","","\u2014","","","(97.4)"],["Cash management net flows","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","12.6","","","12.6"],["Total net flows","","(0.4)","","","(122.7)","","","12.9","","","12.8","","","12.6","","","(84.8)"],["Disposition","","\u2014","","","(0.1)","","","(0.1)","","","\u2014","","","\u2014","","","(0.2)"],["Net market change, distributions and other","","54.5","","","5.1","","","1.2","","","4.9","","","1.9","","","67.6"],["AUM at September 30, 2025","","$","686.2","","","$","438.7","","","$","263.9","","","$","193.9","","","$","78.5","","","$","1,661.2"]]
[[/GREPCENT_TABLE]]

35

Table of Contents

AUM decreased $17.4 billion or 1% during fiscal year 2025 primarily due to $97.4 billion of long-term net outflows, inclusive of $141.9 billion of long-term net outflows at Western Asset Management (“WAM”), partially offset by the positive imp

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/BEN/mda/fy2025/
All MD&A years: /company/BEN/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/BEN/mda/fy2024/): filed 2024-11-12; accession 0000038777-24-000206 (https://www.sec.gov/Archives/edgar/data/38777/000003877724000206/ben-20240930.htm)
- [FY 2023 MD&A](/company/BEN/mda/fy2023/): filed 2023-11-14; accession 0000038777-23-000169 (https://www.sec.gov/Archives/edgar/data/38777/000003877723000169/ben-20230930.htm)
- [FY 2022 MD&A](/company/BEN/mda/fy2022/): filed 2022-11-14; accession 0000038777-22-000198 (https://www.sec.gov/Archives/edgar/data/38777/000003877722000198/ben-20220930.htm)
- [FY 2021 MD&A](/company/BEN/mda/fy2021/): filed 2021-11-19; accession 0000038777-21-000205 (https://www.sec.gov/Archives/edgar/data/38777/000003877721000205/ben-20210930.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6282 Investment Advice) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [M2SL](/indicator/M2SL/): M2

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/BEN.md · JSON record: /company/BEN.json · verified financials: /company/BEN/financials.json / /company/BEN/financials.csv · machine TOC for the whole site: /llms.txt