Invesco (IVZ) Financials

Over the recent four years, Invesco Ltd. (NYSE: IVZ) has shown a number of notable trends and key financial highlights across its income statements, balance sheets, and cash flow statements.

• Net Income Attributable to Common Shareholders has trended positively from a loss of $742.3 million in Q4 2023 to a gain of $171.1 million in Q1 2025, indicating improving profitability.
• Total Revenue for Q1 2025 was $1.527 billion, showing strong income generation mainly from non-interest income sources which totaled $1.529 billion for the quarter.
• Operating expenses have been managed well with Q1 2025's total non-interest expense at $1.178 billion, significantly lower than the $2.803 billion reported in Q4 2024. This reduction contributed to improved pre-tax income dynamics.
• Invesco maintained a robust equity base with total equity and noncontrolling interests remaining stable around $15.2 billion in Q1 2025, supporting financial strength and capital adequacy.
• The company generated positive net cash from financing activities during Q1 2025 ($529 million), bolstered by issuance of debt that outpaced repayments, providing liquidity support.

• The firm's long-term debt showed an increase, reaching approximately $9.07 billion in Q1 2025 compared to $7.74 billion in Q4 2024, signaling increased leverage which could affect financial risk.
• Cash and due from banks decreased slightly in Q1 2025 to $821.7 million from $986.5 million in Q4 2024, requiring ongoing monitoring of liquidity position.
• The weighted average diluted shares outstanding remained fairly constant at around 447 million shares in Q1 2025, signaling limited dilution to shareholders.
• Net interest income continues to be a headwind, with Q1 2025 showing a net interest expense of $1.8 million contrasting with a positive net interest income of $12.2 million in Q4 2024, reflecting interest costs pressures.
• Other special charges swung to a negative value of -$74.1 million in Q1 2025 from positive $1.5 billion in Q4 2024, which might indicate reclassification or reversal of prior charges with unclear impact on earnings stability.

• The dramatic loss reported in Q4 2023 with net income attributable to common shareholders at -$742.3 million negatively impacted the prior year's earnings trajectory and reflects possible one-time impairments or significant operational challenges.
• Net cash from continuing operating activities turned negative at -$84.6 million in Q1 2025, after strong positive cash flow in previous quarters, signaling temporary operational cash pressures.
• The company’s total assets decreased from about $29.3 billion in Q4 2023 to $28.1 billion in Q1 2025, mostly due to declines in cash, securities, and other assets, which might reflect asset sales or lower investment levels.
• There was a notable increase in total liabilities, from $11.34 billion in Q4 2024 to $12.36 billion in Q1 2025, driven by rising long-term debt and other liabilities, which raises concerns about increased financial obligations.
• Marketing and occupancy expenses remained elevated, with marketing expense at $17 million and occupancy plus equipment expenses at over $113 million in Q1 2025, pressuring margins if revenue growth slows.

In summary, Invesco has rebounded from a severe loss in late 2023 to achieve profitability in early 2025 with improved revenue and controlled expenses. However, the firm faces challenges including operating cash flow volatility, increased leverage, and interest expense pressures that retail investors should watch closely going forward.