CNS — Cohen & Steers, Inc.

Summary of Cohen & Steers Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Earnings Per Share (EPS): Q4 EPS remained stable at $0.81, with full-year EPS increasing to $3.09 from $2.93 in 2024.
• Revenue: Q4 revenue rose 2% sequentially to $143.8 million; full-year revenue increased 6.9% to $554 million.
• Assets Under Management (AUM): Ending AUM for Q4 was $90.5 billion, slightly down from Q3 but higher on average for the year.
• Net Inflows: Q4 net inflows totaled $1.2 billion, contributing to full-year inflows of $1.5 billion.
• Operating Income: Increased 3% to $52.4 million in Q4; full-year operating income rose 6.3% to $195.1 million.
• Operating Margin: Improved to 36.4% from 36.1% in the prior quarter.
• Compensation Ratio: Decreased to 39% in Q4, below the guidance of 40.5%.

2. Strategic Updates and Business Highlights

• Investment Performance: 95% of AUM outperformed benchmarks over one year; 90% of open-end fund AUM rated 4- or 5-star by Morningstar.
• Product Launches: Successful rights offering for a closed-end fund and the launch of five active ETFs, with total AUM of $378 million.
• Pipeline Strength: The unfunded pipeline stood at $1.72 billion, reflecting strong demand across various strategies, particularly U.S. REITs and global listed infrastructure.
• Geographic Expansion: Increased focus on international markets, with notable inflows from regions like Japan, the U.K., and South Africa.

3. Forward Guidance and Outlook

• 2026 Expectations:
  • Compensation ratio expected to remain at 40%.
  • G&A growth projected to moderate to mid-single-digit percentages.
  • Anticipated effective tax rate of 25.4% for 2026.
  • Positive outlook for REIT earnings growth, expected to inflect positively due to lower supply and accelerating demand.

4. Bad News, Challenges, or Points of Concern

• Market Volatility: AUM slightly declined at the end of Q4, indicating potential market pressures.
• Performance Disparities: U.S. REITs underperformed relative to other asset classes, ranking last among S&P 500 sectors.
• Competition: The core preferred strategy faced outflows, potentially due to competition from private credit strategies.
• Economic Environment: Concerns about geopolitical tensions and their impact on non-U.S. allocations.

5. Notable Q&A Insights

• Private Real Estate Demand: Early signs of increased interest in private real estate, potentially driven by issues in private credit markets.
• Active ETFs Scaling: Active ETFs expected to scale quickly due to established strategies; initial adoption rates are promising.
• Institutional Channel Progress: Conversations with allocators have improved, with a broader pipeline of mandates and increased interest in real assets.
• Global Real Estate Dynamics: Anticipated recovery in global real estate demand as institutional investors shift focus from U.S. to international markets.

This summary encapsulates the financial performance, strategic initiatives, and outlook of Cohen & Steers, while highlighting both opportunities and challenges faced by the company.