IVZ · 10-Q · 2026Q2 · Full report
Operating Expense Trends
Invesco Ltd. · 2026-08-04 · Importance 69 · Surprise 64 · From source text
Six-month operating expenses increased 12.5% to $2,872.7 million, including a 21.7% increase in third-party distribution, service and advisory costs to $1,228.5 million. Third-party costs rose primarily because of QQQ and higher average AUM, while marketing expense increased 84.8% to $74.1 million because of higher QQQ advertising costs. Employee compensation increased 8.7% to $1,059.4 million, driven by $46.3 million of accelerated long-term-award expense, $38.9 million of higher variable compensation, and a $27.3 million increase in deferred-compensation mark-to-market expense. Property, office and technology expense declined 7.8% to $213.9 million after the prior-year $8.0 million software impairment, and headcount fell to 7,405 from 8,407 primarily because of 2025 divestitures.
Key facts
- Total operating expenses for three months ended June 30, 2026: $1,461.4 million versus $1,301.3 million, an increase of $160.1 million or 12.3%. source
- Third-party distribution, service and advisory expenses three months ended June 30, 2026: $627.1 million versus $500.7 million, increase primarily due to third-party costs for QQQ and higher average AUM. source
- General and administrative expenses three months ended June 30, 2026: $133.5 million versus $139.2 million; decrease primarily due to net benefit of $11.7 million from sale of Canadian management agreements and restructuring of Canadian operations, partially offset by higher professional fees. source
- Employee compensation three months ended June 30, 2026: $546.7 million versus $510.4 million; increase primarily due to higher employee variable compensation costs of $43.0 million and $18.7 million increase in mark-to-market adjustment on deferred compensation liabilities, partially offset by lower salaries of $12.4 million and $16.9 million severance in Q2 2025. source
- Property, office and technology expenses three months ended June 30, 2026: $109.3 million versus $118.2 million; decrease primarily due to an $8.0 million software impairment in Q2 2025 related to strategic change to fixed income investment platform. source
- Marketing expenses three months ended June 30, 2026: $36.7 million versus $23.1 million, increase primarily due to higher advertising costs for QQQ following its conversion to an open-end fund ETF. source
- Headcount at June 30, 2026: 7,405 (June 30, 2025: 8,407); decrease primarily due to sale of intelliflo business and sale of 60% interest in Invesco Asset Management (India) on October 31, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -8.8% | Total operating expenses for three months ended June 30, 2026: $1,461.4 million versus $1,301.3 million, an increase of $160.1 million or… |
| operating_income | negative | realized | -6.9% | Third-party distribution, service and advisory expenses three months ended June 30, 2026: $627.1 million versus $500.7 million, increase… |
| operating_income | negative | realized | -2.0% | Employee compensation three months ended June 30, 2026: $546.7 million versus $510.4 million; increase primarily due to higher employee… |
| operating_income | negative | realized | -0.7% | Marketing expenses three months ended June 30, 2026: $36.7 million versus $23.1 million, increase primarily due to higher advertising… |
| operating_income | positive | realized | +0.5% | Property, office and technology expenses three months ended June 30, 2026: $109.3 million versus $118.2 million; decrease primarily due to… |
| operating_income | positive | realized | +0.3% | General and administrative expenses three months ended June 30, 2026: $133.5 million versus $139.2 million; decrease primarily due to net… |
| operating_income | unclear | realized | — | Headcount at June 30, 2026: 7,405 (June 30, 2025: 8,407); decrease primarily due to sale of intelliflo business and sale of 60% interest… |