10-K 0001628280-26-008002 (2026-02-13) vs 10-K 0001113169-25-000007 (2025-02-14)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 9,803 |
13.4% |
| MD&A | Item 7 | 12,784 |
23.2% |
| Legal Proceedings | Item 3 | 23 |
not compared |
| Accounting Policies | Item 8 (note not found) | 0 |
not compared |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 176 words changed in this paragraph; it is 52% similar to last year's version.
We have spent many years developing our reputation for integrity, strong investment performance, and superior client service. Our brand is a valuable intangible asset, but it is vulnerable to a variety of threats that can be difficult or impossible to control, and costly or even impossible to remediate, if damaged. Regulatory inquiries and rumors can tarnish or substantially damage our reputation, even if those inquiries are satisfactorily addressed. For example, ESG issues have been the subject of increased focus by regulators, clients and other stakeholders. Various clients and stakeholders have divergent views on ESG matters, with some aiming to increase their exposure to ESG investing and some choosing not to invest in products or strategies with an ESG investment objective, including in the countries in which we operate and invest, as well as states and localities where we serve public sector clients. These differences pose challenges for us to manage divergent goals and preferences, and increase the risk that any action or lack thereof by us concerning ESG, or any actual or perceived failure to adequately address the ESG expectations will be viewed negatively by some stakeholders, which could adversely impact our reputation and business. We also communicate certain initiatives and goals for our corporate and investing activities related to ESG matters. We could be scrutinized or criticized for the scope or nature of any such initiatives or goals, and may not be able to accomplish them within our anticipated timeframe or at all. Our global presence and investments on behalf of our clients around the world could also lead to heightened scrutiny and criticism in an increasingly fragmented geopolitical landscape.
Source: Item 1A, 10-K 0001628280-26-008002 vs Item 1A, 10-K 0001113169-25-000007
MD&A 132 words changed in this paragraph; it is 39% similar to last year's version.
Global bond returns were mostly positive in 2024, as many central banks around the world reduced short-term interest rates due to easing inflation pressures. 2025. In the U.S., Treasury bill yields yields, which tend to track the federal funds target rate, declined about 70 basis points (0.70%) for the year, as the Federal Reserve reduced the federal funds target rate by 100 25 basis points (1.00%) (0.25%) three times in three steps starting the final months of the year. At the end of the year, the federal funds target rate was in mid-September. Intermediate- the 3.50% to 3.75% range. Short- and long-term intermediate-term U.S. Treasury yields fluctuated throughout had a comparable decline, but the year, but ultimately increased for the year amid expectations for fewer interest rate cuts in 2025 due to inflation remaining above the Federal Reserve’s 2% long-term goal. The 10-year U.S. Treasury note yield was fell 40 basis points (0.40%), from 4.58% at December 31, 2024 compared to 3.88% at December 31, 2023 . 4.18%. The 30-year U.S. Treasury bond yield rose modestly for the year.
Source: Item 7, 10-K 0001628280-26-008002 vs Item 7, 10-K 0001113169-25-000007
Every change, by type
Sentences and paragraphs of TROW's Risk Factors and MD&A, 10-K 2026-02-13 against 10-K 2025-02-14.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
•Government Shutdown. The U.S. federal government periodically experiences funding gaps that result in partial or complete shutdowns of government operations. A prolonged shutdown could adversely impact the U.S. economy, financial markets, and our business directly and indirectly. During a shutdown, many federal agencies, such as the SEC, suspend or delay regulatory approvals. A delay in the approval of new products
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AddedRisk Factors
which we intend to offer could materially impact our performance and the timing with which we begin to attract investors. Additionally, a shutdown could have broader negative effects on consumer and business confidence, the financial markets, and the overall economy. Uncertainty regarding the duration or frequency of government shutdowns may contribute to market volatility and increased redemptions from our products.
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AddedRisk Factors
services could also interfere with our ability to comply with financial reporting and controls and other regulatory requirements, exposing us to regulatory action and liability to our clients, potentially resulting in financial losses that may not be sufficiently mitigated by insurance coverage.
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AddedRisk Factors
In addition to our use of AI technologies, we are exposed to risks arising from the use of AI technologies by bad actors to commit fraud and misappropriate funds and to facilitate cyberattacks. Generative AI, if used to perpetrate fraud or launch cyberattacks, could result in losses, liquidity outflows, or other adverse effects at a particular financial institution or exchange. If our use of AI becomes controversial, we may experience brand or reputational harm, competitive harm, or legal liability.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
In addition, the U.S. administration and other foreign governments have pursued deregulation measures that may create regulatory uncertainty for our business, and potentially create divergent regulatory frameworks, as other state and local governments may take action to fill the vacuum. Any changes in the regulatory framework applicable to our business, may impose additional costs, require the attention of our senior management, result in limitations on the manner in which business is conducted, or may ultimately have an adverse impact on the competitiveness of our business.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
disclosure obligations, regulatory investigations, actions or fines, and litigation, and our insurance may not be sufficient to cover our liability which would impact our financial results.
Read it in 10-K 2026-02-13 at sec.gov ↗
RemovedRisk Factors
models or model assumptions could have unanticipated and adverse consequences on our business and reputation.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
•risks associated with a lack of diversification, such that any adverse change in one or a small number of issuers could have a material adverse effect on an investment product or client’s investments;
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
We own a 23% investment in UTI Asset Management Company Ltd ("UTI"), an Indian asset management company, and we may consider non-controlling minority investments in other entities in the future. We may not realize future returns from such investments or any collaborative activities that may develop in the future.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
Our financial condition and liquidity would be adversely affected by losses on our seed capital and co-investments.
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RemovedRisk Factors
could impose significant limitations on our operations, require changes to our business, or restrict our collection, use or storage of data or related technologies, which may increase our compliance expenses and make our business more costly or less efficient to conduct.
Read it in 10-K 2025-02-14 at sec.gov ↗
RewordedRisk Factors
Our managed investment portfolios products may have significant investments in markets that are subject to risk of loss from political or diplomatic developments, government policies, wars, conflicts or civil unrest (such as the Russian invasion of Ukraine, the threat that Russia’s military aggression may expand, recent events in Venezuela and the recent on-going conflicts in the Middle East, including the Israel-Hamas war, and potential escalation of such conflicts), East), trade policies, wars or tariffs (including those imposed or threatened by the U.S.), U.S. and retaliatory tariffs by U.S. trading partners), currency fluctuations, market volatility, illiquidity and capital controls, and changes in legislation related to ownership limitations.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Furthermore, while we have in place robust and well-established plans for operational resiliency and business continuity that address the potential impact of pandemics, epidemics or disease outbreaks to our personnel and our facilities, and to date have been successful in navigating the challenges presented by the COVID-19 pandemic, continuity, no assurance can be given that the steps we have taken will continue to be effective or appropriate against future pandemics, epidemics or disease outbreaks.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
These could be caused by investors reducing their investments in our portfolios products in general or in the market segments in which we focus; investors taking profits from their investments; product risk characteristics, which could cause investors to move assets to other investment managers; and investor and market sentiments.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
An externally caused data security incident, such as a cyberattack, phishing scam, social engineering attacks (including phishing, impersonation and identity takeover attempts), virus, ransomware attack, denial-of-service attack, or an attack launched from within our systems could compromise the integrity of personal data of clients, personnel and other parties, as well as confidential client or competitive information and materially interrupt our business operations.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Furthermore, if any person, including any of our personnel, negligently disregards or intentionally overrides or circumvents our established controls with respect to personal or confidential data, or otherwise mismanages or misappropriates that data, we could be subject to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions. jurisdictions and any insurance we have may not be sufficient to cover our liability which would impact our financial results.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
All of our technology systems, including those provided or operated by third-party service providers, are not fully redundant and are vulnerable to disability or failures due to cyberattacks, natural disasters or extreme weather events (which may increase in frequency or intensity as a result of climate change), events, power failures, acts of war or terrorism, sabotage, coding errors, system outages, and other causes.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Since our revenue is based on the market value and composition of the assets under our management, the impact of such events on global financial markets and our clients’ investment decisions could adversely affect our revenue and operating results.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
The occurrence of extreme events, such as armed conflicts, terrorist attacks, epidemic, pandemic or disease outbreaks (such as the COVID-19 pandemic), infrastructure failures, natural disasters or extreme weather events (which may increase in intensity or frequency as a result of climate change), events, and other events outside of our control could adversely affect our revenues, expenses, and net income by:
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Changes in investing trends, particularly investor preference for passive or alternative alternatives investment products as well as increasing investor preference for environmentally and socially responsible investment products, and changes in retirement savings trends, may reduce interest in our products and may alter our mix of assets under management.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Furthermore, many aspects of the asset management industry are seeing increased regulatory activity and scrutiny, in particular related to environmental, social, and governance ("ESG") practices and related matters, transparency and unbundling of fees, inducements, conflicts of interest, risk management, cybersecurity, technology, privacy and data protection, sustainability, diversity, equity and inclusion, and compensation.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
In the event that our hedging strategies are not effective, the resulting impact may adversely affect our results of operations, cash flows or financial condition. net income.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Any failure to properly safeguard and maintain confidential data creates risk that we could be found to be in violation of laws and regulations and subject us to disclosure obligations, regulatory investigations, actions or fines, and litigation.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesRisk Factors
Rowe Price If a collective investment fund seeks to lower the fees that we receive or terminate its contract with us, we would experience a decline in fees earned from the collective investment funds, which could have a material adverse effect on our revenues and net income.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
In 2025, we took several steps to execute on this plan, including targeted role eliminations, outsourcing and expanding some of our technology capabilities through trusted vendor partnerships, and the decision to exit certain owned buildings with plans to dispose of the properties in 2026.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
The impact of these actions has been recorded as a restructuring charge in the consolidated statements of income and is discussed later in Item 7. and Item 8. These measures also help offset ongoing inflationary pressures on compensation and contractual spending. Our strategic investments include hiring investment and distribution professionals, adopting new technologies, offering new products, and growing and diversifying our business through innovative global partnerships.
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AddedMD&A
Major U.S. stock market indices rose in 2025. After a challenging start to 2025 stemming from new U.S. tariff and trade policies, equities advanced starting in April, as the U.S. and China made efforts to improve their trade relationship, economic growth and corporate earnings remained favorable, investors favored artificial intelligence-related businesses and other high-growth companies, and Congress passed tax legislation that should provide some fiscal stimulus to the economy. In addition, signs of a weakening labor market in the latter part of the year prompted the Federal Reserve to reduce short-term interest rates, despite continued elevated inflation. The central bank lowered rates in September, October, and December.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Developed non-U.S. equity markets outperformed U.S. stocks in U.S. dollar terms, helped by a weaker dollar versus major non-U.S. currencies. In Europe, equity markets were mostly positive in dollar terms. Stocks in Spain and Austria fared best, surging 80%, while equities in Finland, Ireland, and Italy advanced close to 60%. UK stocks rose 35%. Developed Asian markets were also mostly positive with stocks in Hong Kong climbing 35% and Japanese stocks rising 25%.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Bonds in developed non-U.S. markets produced positive returns in U.S. dollar terms, helped by a weaker dollar versus major non-U.S. currencies. In the eurozone, longer-term bond yields increased in many countries, though policymakers for the European Central Bank reduced short-term interest rates four times in the first half of 2025. In the UK, longer-term bond yields fell slightly for the year, as the Bank of England reduced the Bank Rate by 25 basis points (0.25%) four times in 2025. The euro strengthened more than 13% versus the U.S. dollar, while the British pound rose more than 7%. In Japan, long-term government bond yields climbed as the Bank of Japan raised its benchmark interest rate to 0.50% in January and to 0.75% in December. Bond yields were also pressured higher by late-year concerns that new Prime Minister Sanae Takaichi will pursue aggressive fiscal stimulus funded by debt issuance. The yen rose marginally versus the dollar.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Emerging markets bonds produced strong positive returns in U.S. dollar terms. Bonds denominated in local currencies generally outperformed dollar-denominated bonds, as many emerging markets currencies appreciated versus the dollar, boosting returns to U.S. investors.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
(in billions) Equity Fixed income, including money market Multi-asset(2) Alternatives(3) Total Assets under management at December 31, 2022 $ 664.2 $ 167.0 $ 400.1 $ 43.4 $ 1,274.7 Net cash flows prior to manager-driven distributions (85.4) (6.8) 9.1 3.9 (79.2) Manager-driven distributions — — — (2.6) (2.6) Net cash flows (85.4) (6.8) 9.1 1.3 (81.8) Net market appreciation (depreciation) and income(4) 164.8 9.8 73.8 3.2 251.6 Change during the period 79.4 3.0 82.9 4.5 169.8 Assets under management at December 31, 2023 743.6 170.0 483.0 47.9 1,444.5 Net cash flows prior to manager-driven distributions (52.0) 12.6 (6.5) 6.4 (39.5) Manager-driven distributions — — — (3.7) (3.7) Net cash flows (52.0) 12.6 (6.5) 2.7 (43.2) Net market appreciation (depreciation) and income(4) 138.1 5.5 59.5 2.2 205.3 Change during the period 86.1 18.1 53.0 4.9 162.1 Assets under management at December 31, 2024 829.7 188.1 536.0 52.8 1,606.6 Managed account - model delivery assets(5) 9.2 — — — 9.2 Net cash flows prior to manager-driven distributions (74.9) 12.5 1.8 6.9 (53.7) Manager-driven distributions — — — (3.2) (3.2) Net cash flows (74.9) 12.5 1.8 3.7 (56.9) Net market appreciation (depreciation) and income(4) 114.5 11.0 89.2 2.0 216.7 Change during the period (net cash flows and market appreciation (depreciation) and income) 39.6 23.5 91.0 5.7 159.8 Assets under management at December 31, 2025 $ 878.5 $ 211.6 $ 627.0 $ 58.5 $ 1,775.6
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
(1) Includes assets in which T. Rowe Price and its affiliates have full discretionary authority and, beginning in 2025, managed account - model delivery assets.
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AddedMD&A
(5) Amount represents the net assets as of July 1, 2025 and all activity for the second half of 2025 is presented in the lines that follow.
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AddedMD&A
Our multi-asset investment division provides advisory solutions that include investment insights, strategic asset allocation design, tactical asset allocation recommendations, and portfolio rebalancing services. The assets in these solutions, predominantly in the United States, were $27.8 billion at December 31, 2025, compared with $8.0 billion at December 31, 2024.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Capital allocation-based income will fluctuate quarter-to-quarter to reflect the adjustment to accrued carried interest for the change in value of certain affiliated funds assuming the funds’ underlying investments were realized as of the end of the period.
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AddedMD&A
Restructuring charge of $177.3 million for 2025 relates to actions taken under our previously announced broad and ongoing expense management program, which is designed to reduce expense growth and realign resources to support investment in existing and future capabilities. The charge includes accelerated depreciation and impairment charges related to certain owned real estate of $127.3 million as well as compensation‑related costs, primarily severance.
Read it in 10-K 2026-02-13 at sec.gov ↗
RemovedMD&A
U.S. stocks produced strong gains for the second consecutive year in 2024, and various equity indexes reached new all-time highs during the year. The equity market was buoyed by generally favorable corporate earnings and by continuing interest in companies expected to benefit from AI developments. Although inflation remained above the Federal Reserve’s long-term 2% target, the central bank shifted its focus toward the moderating labor market in the second half of the year and began reducing interest rates starting in September. In the final months of the year, equity investors generally welcomed not only looser monetary policy, but also diminished political uncertainty following U.S. elections in early November. Market volatility increased, however, as investors curtailed their expectations for short-term interest rate cuts in 2025.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
Developed non-U.S. equity markets were mostly positive in 2024, helped by looser monetary policies from various central banks around the world. However, returns to U.S. investors were hurt by a stronger dollar versus major non-U.S. currencies. In Europe, equity markets were widely mixed in U.S. dollar terms, whereas developed Asian markets were mostly positive.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
Bonds in developed non-U.S. markets produced negative returns in U.S. dollar terms due to weaker currencies versus the dollar and rising bond yields in some countries. Easing inflation pressures enabled central banks in Europe and the UK to reduce interest rates a few times. In Japan, longer-term interest rates rose as the Bank of Japan increased short-term rates in March, ending a multi-year period of negative interest rates. The Bank of Japan also unexpectedly raised rates at the end of July. In the emerging markets fixed income universe, dollar-denominated bonds produced gains in U.S. dollar terms, but local currency bonds produced negative returns, as most developing markets currencies declined versus the dollar.
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RemovedMD&A
(in billions) Equity Fixed income, including money market Multi-asset(1) Alternatives(2) Total
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
Net cash flows prior to manager-driven distributions (85.4) (6.8) 9.1 3.9 (79.2)
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RemovedMD&A
Net cash flows prior to manager-driven distributions (52.0) 12.6 (6.5) 6.4 (39.5)
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
We provide strategic investment advice solutions for certain portfolios. These advice solutions, the vast majority of which are overseen by our multi-asset division, may include strategic asset allocation, and in certain portfolios, asset selection and/or tactical asset allocation overlays. We also offer advice solutions through retail separately managed accounts and separately managed accounts model delivery. As of December 31, 2024, total assets in these solutions were $557 billion, of which $542 billion are reported in assets under management in the tables above.
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RemovedMD&A
(2) Performance-based advisory fees were previously included in investment advisory fees. Prior periods were recast to reflect this change.
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RemovedMD&A
(2) Performance-based advisory fees were previously included in investment advisory fees. Prior periods were recast to reflect this change.
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RemovedMD&A
In 2023, the decline in overall advisory revenues was driven by lower average AUM and a mix shift toward lower fee asset classes and vehicles. A lower starting AUM and net outflows in 2023 were the primary drivers of a lower average AUM in 2023. These impacts were partially offset by stronger overall market returns in 2023.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
In 2024 and 2023, strong market returns contributed to the increased valuation and gains of our investment portfolio, along with higher cash balances and interest rates increased dividend income. In 2022, our overall investment portfolio valuations were negatively impacted by market declines caused by the continued elevated inflation, supply chain disruptions, and a more aggressive pace of Federal Reserve interest rate increases.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
(1) State income tax benefits are reflected in the total benefits for net income attributable to redeemable non-controlling interests and stock-based compensation plans activity.
Read it in 10-K 2025-02-14 at sec.gov ↗
RewordedMD&A
Rowe Price Group Cash flow attributable to consolidated investment products Eliminations As reported 2023 2025 Cash flows from operating activities Net income (loss) $ 1,788.7 2,087.1 $ 153.5 210.1 $ (106.5) (88.9) $ 1,835.7 2,208.3 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation, amortization and impairments of property, equipment and software 254.8 405.8 — — 254.8 405.8 Amortization and impairment of acquisition-related assets and retention agreements 226.8 199.7 — — 226.8 Fair value remeasurement of contingent consideration liability (82.4) — — (82.4) 199.7 Stock-based compensation expense 265.6 216.9 — — 265.6 216.9 Net (gains) losses recognized on investments (567.3) (541.3) — 106.5 (460.8) 88.9 (452.4) Total non-cash adjustments 97.5 281.1 — 106.5 204.0 88.9 370.0 Net (investments) redemptions in sponsored investment products used to economically hedge deferred compensation liabilities (10.3) (64.6) — 66.4 56.1 72.6 8.0 Net change in trading securities held by consolidated investment products — (1,070.3) (1,002.7) — (1,070.3) (1,002.7) Other changes 182.7 27.9 (17.0) 193.6 185.9 (4.7) (11.4) 169.8 Net cash provided by (used in) operating activities 2,058.6 (888.9) 49.4 1,219.1 2,489.5 (797.3) 61.2 1,753.4 Net cash provided by (used in) investing activities (310.2) (56.8) 495.2 128.2 59.5 (63.1) 233.9 230.3 Net cash provided by (used in) financing activities (1,437.4) 903.4 (544.6) (1,078.6) (1,820.6) 838.3 (295.1) (1,277.4) Effect of exchange rate changes on cash and cash equivalents of consolidated investment products — 0.4 (1.9) — 0.4 (1.9) Net change in cash and cash equivalents during year 311.0 (41.9) 728.4 (24.0) — 269.1 704.4 Cash and cash equivalents at beginning of year 1,755.6 119.1 2,649.8 63.1 — 1,874.7 2,712.9 Cash and cash equivalents at end of year $ 2,066.6 3,378.2 $ 77.2 39.1 $ — $ 2,143.8 3,417.3
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Rowe Price Group Cash flow attributable to consolidated investment products Eliminations As reported 2023 2024 Cash flows from operating activities Net income (loss) $ 1,788.7 2,100.1 $ 153.5 120.5 $ (106.5) (84.8) $ 1,835.7 2,135.8 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation, amortization and impairments of property, equipment and software 254.8 254.1 — — 254.8 254.1 Amortization and impairment of acquisition-related assets and retention agreements 226.8 250.1 — — 226.8 250.1 Fair value remeasurement of contingent consideration liability (82.4) (13.4) — — (82.4) (13.4) Stock-based compensation expense 265.6 247.3 — — 265.6 247.3 Net (gains) losses recognized on investments (567.3) (425.0) — 106.5 (460.8) 84.8 (340.2) Total non-cash adjustments 97.5 313.1 — 106.5 204.0 84.8 397.9 Net (investments) redemptions in sponsored investment products used to economically hedge deferred compensation liabilities (10.3) (123.2) — 66.4 56.1 30.0 (93.2) Net change in trading securities held by consolidated investment products — (1,070.3) (760.4) — (1,070.3) (760.4) Other changes 182.7 27.9 (17.0) 193.6 23.9 6.1 (24.5) 5.5 Net cash provided by (used in) operating activities 2,058.6 (888.9) 49.4 1,219.1 2,313.9 (633.8) 5.5 1,685.6 Net cash provided by (used in) investing activities (310.2) (56.8) 495.2 128.2 (187.9) (15.8) 26.2 (177.5) Net cash provided by (used in) financing activities (1,437.4) 903.4 (544.6) (1,078.6) (1,542.8) 637.9 (31.7) (936.6) Effect of exchange rate changes on cash and cash equivalents of consolidated investment products — 0.4 (2.4) — 0.4 (2.4) Net change in cash and cash equivalents during year 311.0 (41.9) 583.2 (14.1) — 269.1 569.1 Cash and cash equivalents at beginning of year 1,755.6 119.1 2,066.6 77.2 — 1,874.7 2,143.8 Cash and cash equivalents at end of year $ 2,066.6 2,649.8 $ 77.2 63.1 $ — $ 2,143.8 2,712.9
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
AUM Weighted Performance % of U.S. mutual funds AUM that outperformed Morningstar median(2),(3) 1 year 3 years 5 years 10 years Equity 57% 58% 49% 42% 69% 52% 74% Fixed income 76% 79% 78% 80% Fixed Income 66% 62% 64% Multi-asset 28% 78% Multi-Asset 70% 68% 90% 94% 53% 93% All Funds 61% 61% 59% 83% funds 42% 72% 54% 79% % of U.S. mutual funds AUM that outperformed passive peer median(2),(4) 1 year 3 years 5 years 10 years Equity 64% 36% 29% 31% 55% 22% 48% Fixed Income 68% 68% 85% 73% Multi-Asset 71% 58% 95% 95% income 81% 77% 86% 69% Multi-asset 7% 52% 53% 77% All Funds 66% 43% 48% 66% funds 28% 56% 33% 56% % of composites AUM that outperformed benchmarks(5) 1 year 3 years 5 years 10 years Equity 50% 21% 19% 38% 22% 31% Fixed income 57% 56% 60% 63% All composites 25% 42% 53% Fixed Income 65% 37% 47% 69% All Composites 52% 24% 43% 55% 29% 36%
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) 37.1 50.4 27.7 40.6 — 10.2 40.2 0.18 8.7 31.9 0.14 Acquisition-related retention arrangements(1) (Compensation and related costs) (44.8) 44.8 (56.7) 56.7 — 10.4 34.4 0.15 Contingent consideration(1) 13.4 (13.4) — (1.8) (11.6) (0.05) 12.1 44.6 0.20 Intangible assets amortization and impairments(1) (156.7) 156.7 (111.3) 111.3 — 32.2 124.5 0.54 23.7 87.6 0.39 Total acquisition-related (151.0) 238.5 (140.3) 208.6 — 51.0 187.5 0.82 44.5 164.1 0.73 Deferred compensation liabilities(3) liabilities(2) (Compensation and related costs) (104.3) 104.3 (96.4) 1.7 6.2 0.03 (136.3) 136.3 (142.4) (1.4) (4.7) (0.02) Restructuring charge(3) (177.3) 177.3 — 43.6 133.7 0.59 Consolidated investment products(4) (6.2) (5.6) 9.8 (130.3) (17.5) (67.3) (0.29) (219.9) (21.0) (67.9) (0.30) Other non-operating income(5) — — (110.9) (23.9) (87.0) (0.38) (146.9) (29.5) (117.4) (0.52) Adjusted Non-GAAP Basis $ 4,498.8 4,666.5 $ 2,685.9 2,720.8 $ 148.7 177.5 $ 695.1 703.4 $ 2,139.5 2,194.9 $ 9.33 9.72
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) 37.1 50.4 25.4 35.9 — 10.2 40.2 0.18 7.9 28.0 0.12 Acquisition-related retention arrangements(1) (Compensation and related costs) (44.8) 44.8 (55.0) 55.0 — 10.4 34.4 0.15 10.8 44.2 0.19 Contingent consideration(1) 13.4 (13.4) 82.4 (82.4) — (1.8) (11.6) (0.05) (10.6) (71.8) (0.31) Intangible assets amortization and impairments(1) (156.7) 156.7 (134.2) 134.2 — 32.2 124.5 0.54 28.8 105.4 0.46 Total acquisition-related (151.0) 238.5 (81.4) 142.7 — 51.0 187.5 0.82 36.9 105.8 0.46 Deferred compensation liabilities(3) liabilities(2) (Compensation and related costs) (104.3) 104.3 (96.4) 1.7 6.2 0.03 (123.2) 123.2 (123.6) 0.5 (0.9) — Consolidated investment products(4) (6.2) 9.8 (130.3) (17.5) (67.3) (0.29) (9.0) 11.1 (164.6) (22.3) (84.2) (0.37) Other non-operating income(5) — — (110.9) (23.9) (87.0) (0.38) (75.1) (15.8) (59.3) (0.26) Adjusted Non-GAAP Basis $ 4,498.8 4,260.7 $ 2,685.9 2,263.2 $ 148.7 140.8 $ 695.1 653.9 $ 2,139.5 1,750.1 $ 9.33 7.59
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
These costs were are offset entirely by the distribution investment advisory revenue we earn and report from these products, or in net revenues: 12b-1 revenue is recognized in administrative, distribution, and servicing fees for the case of the Advisor and R share classes of the U.S. mutual funds are recognized in administrative, distribution, services, and investment advisory fees for our international products. other fees.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
The investment management industry has been evolving continues to evolve and industry participants are facing face challenging trends trends, including passive investments taking the shift in market share from traditional active strategies; continued strategies to passive products, persistent downward fee pressure; pressure, demand for new lower cost investment vehicles to meet client needs; vehicles, and an ever-changing regulatory landscape.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
In the U.S., Treasury bill yields yields, which tend to track the federal funds target rate, declined about 70 basis points (0.70%) for the year, as the Federal Reserve reduced the federal funds target rate by 100 25 basis points (1.00%) (0.25%) three times in three steps starting in mid-September. the final months of the year.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Rowe Price Group, Inc. 2,649.8 3,000.5 1,037.9 6,688.2 Group 3,378.2 3,325.2 893.7 7,597.1 Redeemable non-controlling interests — — 944.0 944.0 1,036.0 1,036.0 As reported on the consolidated balance sheet at $ 2,649.8 $ 3,000.5 $ 1,981.9 $ 7,632.2 December 31, 2024 2025 $ 3,378.2 $ 3,325.2 $ 1,929.7 $ 8,633.1
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RewordedMD&A
The table below displays how consolidated investment products affected the individual lines of our consolidated statements of income and the portion attributable to our interest.The impact of consolidating investment products on the individual lines of our consolidated statements of income for 2025, 2024, 2023, and 2022 2023 is as follows:
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RewordedMD&A
Rowe Price Group, Inc. 2,649.8 1,792.4 1,037.9 5,480.1 Group 3,378.2 2,031.4 893.7 6,303.3 Investments in affiliated private investment funds(2) — 696.8 695.0 — 696.8 695.0 Investments in CLOs affiliated collateralized loan obligations — 67.4 25.0 — 67.4 25.0 Investment in UTI and other investments — 443.9 573.8 — 443.9 573.8 Total cash and investments attributable to T.
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RewordedMD&A
Rowe Price Group, Inc. Group increased to $10.9 billion at December 31, 2025 from $9.5 $10.3 billion to $10.3 billion, at December 31, 2024, and tangible book value increased to $7.5 $7.9 billion at December 31, 2024 2025 from $6.5 $7.3 billion at December 31, 2023. 2024.
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Quiet changesMD&A
Investment advisory fees are generally earned based on the value and composition of our assets under management, which change based on fluctuations in financial markets and net cash flows.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesMD&A
The costs in this expense category primarily include amounts paid to third-party intermediaries that source the assets of certain share classes of our U.S. mutual funds, ETFs ETFs, and our international products, such as our Japanese ITMs and SICAVs.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesMD&A
Because the determination of our annual provision is subject to judgments and estimates, it is likely that actual results will vary from those recognized in our financial statements.
Read it in 10-K 2026-02-13 at sec.gov ↗
