0000914208-26-000106
SEC filingStrong quarter driven by higher average AUM and QQQ conversion, with revenue up 14% and operating margin expanding to 19.1%.
Revenue for the first quarter of 2026 was $1.74 billion, up 14.1% from $1.53 billion in the same period last year. The increase was primarily due to higher average assets under management (AUM) and the conversion of the QQQ ETF to Invesco's management. The revenue growth outpaced expense growth, contributing to margin expansion.
Net cash provided by operating activities was $212.6 million, a significant improvement from negative $84.6 million in the prior year quarter. This turnaround was driven by working capital improvements and higher earnings. Free cash flow, defined as operating cash flow less capital expenditures, was $198.4 million. Capital expenditures decreased to $14.2 million from $23.4 million in the prior year. The strong cash flow generation supports Invesco's capital management strategy, which is executed in a manner consistent with maintaining strong, investment-grade credit ratings.
Invesco experienced strong net long-term inflows across multiple capabilities, including ETFs, China joint venture, and fixed income. These inflows contributed to higher average AUM, which drove revenue growth. The increase in IGW revenues was primarily due to higher average AUM, reflecting the success of Invesco's joint venture in China.