IVZ · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Invesco Ltd. · 2026-11-03 · Importance 50 · Surprise 46

Operating expenses increased 4.9% to $1,436.7 million in the third quarter and 9.9% to $4,309.4 million in the first nine months of 2026. Nine-month third-party distribution, service and advisory expenses increased 19.4% to $1,872.2 million, primarily reflecting QQQ costs and higher average AUM. Marketing expense rose 82.7% to $110.0 million for the nine months, driven by higher advertising costs for QQQ after its ETF conversion. Employee compensation increased 3.8% to $1,553.2 million for the nine months, including $44.5 million more deferred compensation expense and $47.8 million more variable compensation, partly offset by lower salaries and prior-year severance; property, office and technology expense declined 6.3% to $319.8 million.

Key facts

• Invesco's operating expenses increased $67.2 million (4.9%) to $1,436.7 million in the third quarter of 2026 and increased $386.7 million (9.9%) to $4,309.4 million for the first nine months. source
• Invesco's third-party distribution, service and advisory expenses were $643.7 million for the third quarter of 2026 versus $558.3 million in 2025, primarily due to QQQ third-party costs and higher average AUM. source
• Invesco's employee compensation expense was $493.8 million for the third quarter of 2026 versus $521.6 million in 2025; the decrease included a $24.9 million lower deferred-compensation mark-to-market adjustment and $13.1 million lower salaries, partly offset by higher variable compensation. source
• Invesco's nine-month employee compensation expense was $1,553.2 million versus $1,496.6 million in 2025; excluding FX, it increased $50.2 million, including $44.5 million higher deferred compensation expense and $47.8 million higher variable compensation, partly offset by $34.6 million lower salaries and $16.9 million of prior-year severance. source
• Invesco's marketing expenses were $35.9 million for the third quarter of 2026 versus $20.1 million in 2025, primarily due to higher QQQ advertising following its conversion to an open-end fund ETF. source
• Invesco's property, office and technology expenses were $319.8 million for the first nine months of 2026 versus $341.3 million in 2025; the decrease reflected an $8.0 million second-quarter 2025 software impairment tied to a strategic change to its fixed-income investment platform and lower other technology costs. source
• Invesco stated that inflation-driven increases in costs, especially compensation, could negatively affect net income if they cannot be recovered or offset through pricing increases. source
• Foreign exchange movements decreased Invesco's operating expenses by $5.4 million in the third quarter of 2026 and increased them by $21.1 million in the first nine months, compared with 2025. source