0001284812-26-000011
SEC filingCohen & Steers, Inc. reported solid financial performance for fiscal year 2025, with total revenue increasing 7.5% year-over-year to $556.1 million, driven by higher average assets under management (AUM) which grew 5.5% to $90.5 billion. Net income attributable to common stockholders was $153.2 million, resulting in diluted earnings per share of $2.97, consistent with the prior year. Operating income grew to $177.7 million, though operating margin declined to 32.0% from 33.4% in 2024 due to increased expenses, particularly distribution and service fees related to a rights offering. The company maintained a strong liquidity position with net liquid assets of $367.0 million and declared a quarterly dividend of $0.67 per share. Key growth areas included U.S. real estate and global listed infrastructure strategies, while preferred securities experienced net outflows.
Cohen & Steers delivered solid financial results for fiscal year 2025, with total revenue increasing 7.5% to $556.1 million compared to $517.4 million in 2024. This growth was primarily driven by higher average assets under management, which reached $90.5 billion at year-end, representing a 5.5% increase from $85.8 billion in 2024. Net income attributable to common stockholders was $153.2 million, a modest 1.3% increase from $151.3 million in the prior year. Diluted earnings per share remained flat at $2.97. Operating income grew 2.8% to $177.7 million, though operating margin declined to 32.0% from 33.4% due to increased expenses. The company's as adjusted operating margin was 35.2%, slightly down from 35.4% in 2024.
Revenue growth was driven by increases across all investment advisory and administration fee categories. Open-end fund fees grew 12.0% to $288.9 million, institutional account fees increased 2.8% to $132.7 million, and closed-end fund fees rose 3.3% to $103.2 million. The implied annual effective fee rates were 67.4 basis points for open-end funds (up from 66.0 bps), 38.8 basis points for institutional accounts (up from 38.5 bps), and 89.2 basis points for closed-end funds (up from 88.7 bps). Distribution and service fees increased 4.2% to $29.3 million, primarily due to higher average AUM in U.S. open-end funds. Other revenue declined 12.3% to $1.9 million.
Operating margin declined to 32.0% from 33.4% in the prior year due to expense growth outpacing revenue growth. Total expenses increased 9.8% to $378.4 million, with distribution and service fees expense rising 27.6% to $72.9 million, primarily due to $9.9 million of expenses related to the UTF rights offering. Employee compensation and benefits increased 3.0% to $224.5 million, driven by higher incentive compensation. General and administrative expenses grew 18.5% to $71.2 million, including expenses paid on behalf of certain funds and increased talent acquisition costs. The effective income tax rate remained stable at 23.6%.
Cash flow from operating activities was negative $120.4 million, primarily due to net purchases of investments by consolidated funds of $319.1 million. Cash flow from investing activities was positive $8.4 million, while financing activities generated $73.8 million, including $228.7 million in contributions from noncontrolling interests. The company ended the year with $145.5 million in cash and cash equivalents and total assets of $876.7 million. Net liquid assets totaled $367.0 million, consisting of cash, U.S. Treasury securities, liquid seed investments, and other current assets net of current liabilities. Total liabilities were $242.8 million, with stockholders' equity of $611.0 million.
The company faces a complex macroeconomic environment with volatile global economic conditions, fiscal policy shifts, and ongoing trade tensions. Management emphasized maintaining disciplined portfolio management and prudent cost control to navigate this environment. Key risks include concentration in real estate securities (63.8% of AUM) and preferred securities (20.0% of AUM), performance sensitivity to interest rate changes, and competitive pressures in the investment management industry. The company has a $100 million revolving credit facility maturing in 2029 and has committed to invest up to $175.0 million in certain investment vehicles, with $74.3 million remaining unfunded as of December 31, 2025. Management continues to focus on expanding real assets strategies, geographical presence, and product offerings while managing costs associated with growth initiatives.