Edwyn
Over the five-year period, Franklin Resources, Inc. reported relatively stable revenues with some volatility. Revenue peaked at USD 8,425.5 million in 2021 and then experienced a slight decline in 2022 and 2023, reaching USD 7,849.4 million before rebounding to USD 8,770.7 million in 2025. Notably, gross profit was consistently reported as zero, which could reflect the nature of asset management operations where traditional cost-of-goods-sold measures are less applicable. Operating income and net income, however, followed a more pronounced fluctuation. Operating income fell from USD 1,875 million in 2021 to USD 1,102.3 million in 2023, before dropping sharply by about 63% to USD 407.6 million in 2024, a swing that exceeds the 20% threshold. Although there was a modest recovery in 2025 to USD 604.1 million, operating income has not returned to earlier peak levels. Net income trends reinforced this pattern of volatility. After a strong USD 1,831.2 million in 2021, net income dropped steadily, reaching USD 882.8 million in 2023 before experiencing a significant decline of approximately 47% to USD 464.8 million in 2024, with a slight improvement to USD 524.9 million in 2025. These substantial year-over-year decreases suggest that factors such as market volatility, fee pressure, or operational changes might have adversely impacted margins during the period, particularly in 2024. Overall, while Franklin Resources’ revenue shows resilience and a capacity for recovery, the substantial variations in operating and net income raise concerns about margin pressures and sustainability. The company’s financial health remains dependent on its ability to manage market conditions and operational efficiencies in an increasingly competitive asset management industry.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.