Janus Henderson Group Plc (JHG -2.31%), a global asset manager known for its diversified investment products, reported its earnings for the second quarter of fiscal 2025 on July 31, 2025. The company delivered notable surprises, with adjusted earnings per share coming in at $0.90, above the analyst estimate of $0.84 (non-GAAP), and GAAP revenue totaling $633.2 million, ahead of the $624.39 million GAAP consensus. This outperformance was largely driven by a record rise in assets under management (AUM), which reached $457 billion, mainly attributed to the strategic partnership with Guardian Life Insurance. Presenting a mixed view of the quarter.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.90 | $0.84 | $0.85 | 5.9 % |
| EPS (GAAP) | $0.95 | $0.81 | 17.3 % | |
| Revenue (Non-GAAP) | $497.9 million | $458.3 million | 8.6 % | |
| Revenue (GAAP) | $633.2 million | $624.39 million | $588.4 million | 7.6 % |
| Operating Margin (GAAP) | 25.9 % | 27.9 % | (2.0 pp) | |
| Net Income Attributable to JHG (GAAP) | $149.9 million | $129.7 million | 15.6 % |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Janus Henderson Group Plc manages investments for individuals, financial professionals, and institutions globally. Its business centers on active investment management across equities, fixed income, multi-asset, and alternative products.
The company's core priorities are growing assets under management, offering diverse investment products, and strengthening its competitive position. AUM serves as the main driver of revenue by generating management and performance fees. Product diversity—spanning public equities, fixed income securities, multi-asset strategies, and alternative investments—enables the firm to navigate various market cycles and client preferences. Strategic growth initiatives, including expanding insurance partnerships, building its institutional client base, and investing in innovation such as exchange-traded funds (ETFs), are vital for long-term success.
Quarter Highlights and Performance Drivers
A defining aspect of the quarter was the leap in AUM to $457.3 billion, This represented an increase of 27% year over year as of June 30, 2025. The main engine behind this growth was the onboarding of Guardian Life Insurance's $46.5 billion in fixed income assets. This contribution resulted in overall net inflows of $46.7 billion, though almost all of it stemmed from this single mandate.
Breaking down performance by investment type, equities remain the largest segment at $243.6 billion of AUM, but continue to suffer from negative net flows of $2.6 billion. Fixed income AUM increased by 59% from Q1 to Q2 2025, reaching $142.2 billion, due largely to the Guardian mandate. Multi-asset products contributed $55.6 billion in AUM, though with slight negative flows. Managerially, five consecutive quarters of net inflows stand out, a significant feat for an active asset manager given widespread industry movement toward passive products.
The company maintained strong investment performance, with 72% of total AUM outperforming benchmarks over a one-year period, and similarly high rates over longer time spans—76% for three years, 67% for five years, and 72% over a decade. Fixed income and multi-asset strategies led the way in relative performance. Morningstar rankings indicated 75% of Janus Henderson mutual fund assets were in the top half for one-year performance as of June 30, 2025 and 88% were in the top half for ten-year performance as of June 30, 2025. New product introductions included the JABS Asset-Backed Securities ETF, backed by $100 million in seed funding from Guardian Life, further diversifying the company's offerings.
On the financial front, reported GAAP revenue rose to $633.2 million, up 7.6% compared to Q2 2024, exceeding analyst expectations by $8.8 million (GAAP). Adjusted revenue also increased year over year. However, operating margin (GAAP) declined to 25.9% from 27.9% in Q2 2024. Adjusted operating margin declined from 35.9% in Q2 2024 to 33.5%. Net income attributable to shareholders (GAAP) climbed to $149.9 million, a 15.6% increase from Q2 2024.
Key to note is that while headline revenue and AUM benefited greatly from the Guardian transaction, the underlying revenue yield fell. Institutional mandates like Guardian's usually carry lower management fees than comparable retail or intermediary assets. As a result, average revenue earned per dollar of AUM diminished even as total assets swelled.
Material one-time events included the onboarding of the Guardian Life Insurance assets and related revenue, along with initial seed funding for the JABS ETF. The company returned $113 million to shareholders through dividends and share buybacks. The quarterly dividend was maintained at $0.40 per share, with 1.3 million shares repurchased for $50 million.
Looking Forward: Guidance and Areas to Watch
Janus Henderson’s management expressed confidence in its strategy execution, specifically highlighting the benefits from the Guardian Life Insurance partnership and an expanding institutional pipeline. However, leadership did not provide explicit forward guidance on earnings or revenue for the upcoming quarters or fiscal year. The company reiterated its intention to maintain cost discipline, support investments for future growth, and return capital to shareholders through dividends and buybacks.
Areas for investors to monitor next quarter include the sustainability of net inflows absent large one-time mandates. Any shift in dividend policy or share buyback pace will also be of note, though no such change was declared for the period. The company continues to pay a quarterly dividend of $0.40 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
