Operating margins remain volatile, fluctuating from a negative 6.8% in 2024Q4 to 14.1% in 2026Q2, reflecting the difficulty of scaling profitability amidst high overhead costs.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 9.03B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 6.66B | 7.05B | 6.79B | 6.35B | 6.85B | 7B | 4.5B | 4.71B | 5.28B | 5.06B | 5.26B | 6.5B | 7.02B | 6.6B | 5.85B | 5.91B | 3.57B | 2.84B | 4.1B | 4.05B | 5.05B | 4.31B | 3.44B | 2.63B | 2.52B | 2.35B | 2.34B | 2.26B | 2.58B | 2.16B | 1B |
| Gross Margin % | 73.8% | 80.34% | 80.11% | 80.9% | 82.76% | 83.04% | 80.91% | 83.06% | 85.04% | 79.14% | 79.44% | 81.72% | 82.71% | 82.66% | 82.32% | 82.76% | 61% | 67.76% | 67.89% | 65.18% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 65.97% |
| Gross Profit Growth % | - | 3.76% | 6.95% | -7.29% | -2.12% | 55.36% | -4.35% | -10.75% | 4.3% | -3.78% | -19.06% | -7.52% | 6.41% | 12.92% | -1.07% | 65.51% | 25.62% | -30.6% | 1.24% | -19.91% | 17.18% | 25.36% | 30.62% | 4.33% | 7.14% | 0.63% | 3.43% | -12.21% | 19.14% | 115.82% | 14.65% |
| Operating Expenses | 5.82B | 6.44B | 6.38B | 5.25B | 5.08B | 5.12B | 3.45B | 3.24B | 3.25B | 2.79B | 2.89B | 3.47B | 3.8B | 3.68B | 3.33B | 3.25B | 1.61B | 1.64B | 2B | 1.98B | 3.42B | 3.02B | 2.51B | 1.98B | 1.94B | 1.84B | 1.68B | 1.72B | 1.94B | 1.57B | 582.16M |
| OpEx % of Revenue | - | 73.46% | 75.3% | 66.85% | 61.33% | 60.79% | 62.07% | 57.18% | 52.35% | 43.71% | 43.69% | 43.63% | 44.78% | 46.08% | 46.9% | 45.5% | 27.53% | 39.09% | 33.09% | 31.87% | 67.66% | 70.11% | 72.93% | 75.38% | 76.79% | 78.26% | 71.65% | 76.17% | 75.09% | 72.66% | 38.31% |
| Selling, General & Admin | 4.55B | 4.9B | 4.68B | 4.07B | 4.12B | 4.21B | 2.92B | 2.9B | 2.99B | 2.57B | 2.68B | 3.24B | 3.59B | 3.49B | 3.15B | 3.08B | 1.32B | 1.35B | 1.63B | 1.59B | 156.46M | 137.3M | 112.02M | 92.4M | 106.88M | 106.26M | 101.2M | 105.94M | 125.92M | 96.55M | 71.66M |
| SG&A % of Revenue | - | 55.83% | 55.15% | 51.81% | 49.8% | 50.02% | 52.4% | 51.24% | 48.26% | 40.27% | 40.56% | 40.81% | 42.23% | 43.68% | 44.32% | 43.08% | 22.48% | 32.16% | 26.95% | 25.59% | 3.1% | 3.19% | 3.26% | 3.51% | 4.24% | 4.51% | 4.32% | 4.68% | 4.89% | 4.46% | 4.72% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 843.8M | 604.1M | 407.6M | 1.1B | 1.77B | 1.88B | 1.05B | 1.47B | 2.03B | 2.26B | 2.37B | 3.03B | 3.22B | 2.92B | 2.52B | 2.66B | 1.96B | 1.2B | 2.1B | 2.07B | 1.63B | 1.29B | 930.83M | 648.08M | 585.5M | 512M | 663.44M | 539.11M | 642.1M | 591.46M | 417.11M |
| Operating Margin % | 9.34% | 6.89% | 4.81% | 14.04% | 21.44% | 22.25% | 18.84% | 25.87% | 32.69% | 35.42% | 35.75% | 38.09% | 37.93% | 36.58% | 35.42% | 37.25% | 33.46% | 28.67% | 34.8% | 33.32% | 32.34% | 29.89% | 27.07% | 24.62% | 23.21% | 21.74% | 28.35% | 23.83% | 24.91% | 27.34% | 27.45% |
| Operating Income Growth % | - | 48.21% | -63.02% | -37.86% | -5.39% | 78.76% | -28.5% | -27.67% | -10.43% | -4.29% | -21.86% | -6.01% | 10.27% | 16.15% | -5.44% | 35.79% | 62.87% | -42.71% | 1.52% | 26.58% | 26.78% | 38.41% | 43.63% | 10.69% | 14.36% | -22.83% | 23.06% | -16.04% | 8.56% | 41.8% | 13.3% |
| EBITDA | 1.22B | 1.14B | 862.3M | 1.55B | 2.15B | 2.19B | 1.18B | 1.56B | 2.1B | 2.34B | 2.45B | 3.13B | 3.32B | 3.01B | 2.6B | 2.75B | 2.23B | 1.38B | 2.31B | 2.27B | 1.85B | 1.5B | 1.11B | 825.5M | 768.62M | 735.84M | 863.08M | 739.12M | 833.47M | 715.37M | 481.84M |
| EBITDA Margin % | 13.56% | 12.95% | 10.17% | 19.72% | 26% | 25.94% | 21.15% | 27.52% | 33.92% | 36.68% | 37.06% | 39.31% | 39.05% | 37.76% | 36.58% | 38.49% | 38.03% | 33% | 38.36% | 36.52% | 36.6% | 34.81% | 32.41% | 31.36% | 30.47% | 31.25% | 36.88% | 32.67% | 32.34% | 33.07% | 31.71% |
| EBITDA Growth % | 29.01% | 31.73% | -44.29% | -28.07% | -1.55% | 85.63% | -24.54% | -25.86% | -10.24% | -4.41% | -21.51% | -5.75% | 9.98% | 16.07% | -5.49% | 23.45% | 60.86% | -40.2% | 2.12% | 22.58% | 23.2% | 34.67% | 34.98% | 7.4% | 4.46% | -14.74% | 16.77% | -11.32% | 16.51% | 48.47% | 17.79% |
| D&A (Non-Cash Add-back) | 380.5M | 531.8M | 454.7M | 445.4M | 377.8M | 310.6M | 128.5M | 93.4M | 76.4M | 80.3M | 87.1M | 97.4M | 94.6M | 93.5M | 82.1M | 88.4M | 267.4M | 181.27M | 215.22M | 198.62M | 215.27M | 212.17M | 183.44M | 177.42M | 183.12M | 223.85M | 199.64M | 200.01M | 191.37M | 123.91M | 64.73M |
| EBIT | 1.39B | 881.7M | 920.4M | 1.46B | 1.83B | 2.53B | 1.05B | 1.67B | 2.26B | 2.6B | 2.55B | 3.07B | 3.46B | 3.07B | 2.71B | 2.66B | 2.09B | 1.29B | 2.25B | 2.49B | 3.27B | 2.69B | 1.97B | 1.42B | 2.52B | 1.15B | 1.29B | 1.16B | 1.48B | 1.3B | 935.23M |
| Net Interest Income | -91.3M | -94.9M | -97.2M | -123.7M | -98.2M | 8.8M | -33.4M | 8.6M | 30.2M | 23.4M | -13.4M | -28.8M | -38.3M | -39.4M | -24.2M | -26.4M | -3.6M | 28.15M | 84.67M | 110.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 8.8M | 0 | 31M | 76.5M | 74.9M | 36.5M | 10.8M | 9.1M | 7.5M | 12.5M | 11M | 12.9M | 31.92M | 100.43M | 133.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 91.3M | 94.9M | 97.2M | 123.7M | 98.2M | 0 | 33.4M | 22.4M | 46.3M | 51.5M | 49.9M | 39.6M | 47.4M | 46.9M | 36.7M | 37.4M | 16.5M | 3.77M | 15.76M | 23.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 1.33B | 786.8M | 823.2M | 1.34B | 1.73B | 2.44B | 1.02B | 1.65B | 2.22B | 2.55B | 2.5B | 3.03B | 3.41B | 3.03B | 2.68B | 2.62B | 2.07B | 1.29B | 2.24B | 2.47B | 1.84B | 1.42B | 993.87M | 700.2M | 578.27M | 637.79M | 739.59M | 574.08M | 676.28M | 615.71M | 456.23M |
| Pretax Margin % | 14.71% | 8.97% | 9.71% | 17.05% | 20.9% | 29.01% | 18.29% | 29.06% | 35.7% | 39.88% | 37.77% | 38.1% | 40.15% | 37.9% | 37.72% | 36.75% | 35.36% | 30.72% | 37.08% | 39.73% | 36.34% | 32.97% | 28.91% | 26.6% | 22.92% | 27.08% | 31.6% | 25.37% | 26.24% | 28.46% | 30.03% |
| Income Tax | 329.8M | 237.9M | 215.3M | 312.3M | 396.2M | 349.6M | 230.8M | 442.3M | 1.47B | 759.4M | 742.1M | 923.7M | 997.9M | 855.9M | 762.7M | 803.4M | 618.3M | 384.31M | 648.38M | 692.36M | 568M | 363.22M | 291.98M | 197.37M | 145.55M | 153.07M | 177.5M | 147.37M | 175.83M | 181.65M | 141.5M |
| Effective Tax Rate % | 24.83% | 30.24% | 26.15% | 23.34% | 22.91% | 14.3% | 22.67% | 26.84% | 66.47% | 29.79% | 29.69% | 30.5% | 29.27% | 28.28% | 28.48% | 30.62% | 29.87% | 29.82% | 28.99% | 28.08% | 30.94% | 25.56% | 29.38% | 28.19% | 25.17% | 24% | 24% | 25.67% | 26% | 29.5% | 31.02% |
| Net Income | 812M | 524.9M | 464.8M | 882.8M | 1.29B | 1.83B | 798.9M | 1.2B | 764.4M | 1.7B | 1.73B | 2.04B | 2.38B | 2.15B | 1.93B | 1.92B | 1.45B | 896.78M | 1.59B | 1.77B | 1.27B | 1.06B | 706.66M | 502.83M | 432.72M | 484.72M | 562.09M | 426.71M | 500.45M | 434.06M | 314.73M |
| Net Margin % | 8.99% | 5.98% | 5.48% | 11.25% | 15.61% | 21.73% | 14.35% | 21.09% | 12.32% | 26.54% | 26.09% | 25.61% | 28.08% | 26.93% | 27.2% | 26.94% | 24.7% | 21.38% | 26.33% | 28.57% | 25.1% | 24.54% | 20.55% | 19.1% | 17.15% | 20.58% | 24.02% | 18.86% | 19.42% | 20.07% | 20.71% |
| Net Income Growth % | 100.84% | 12.93% | -47.35% | -31.67% | -29.45% | 129.22% | -33.19% | 56.42% | -54.95% | -1.74% | -15.16% | -14.64% | 10.89% | 11.33% | 0.41% | 33.06% | 61.21% | -43.54% | -10.42% | 39.87% | 19.85% | 49.67% | 40.54% | 16.2% | -10.73% | -13.76% | 31.73% | -14.73% | 15.29% | 37.92% | 17.02% |
| Net Income (Continuing) | 998.6M | 548.9M | 607.9M | 1.03B | 1.33B | 2.09B | 787.1M | 1.21B | 742.7M | 1.79B | 1.76B | 2.1B | 2.41B | 2.17B | 1.92B | 1.82B | 1.45B | 904.29M | 1.59B | 1.77B | 1.27B | 1.06B | 701.88M | 502.83M | 432.7M | 484.72M | 562.09M | 426.71M | 500.45M | 434.06M | 314.73M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 2.49B | 2.11B | 2.06B | 1.66B | 2.35B | 1.52B | 1.3B | 1.46B | 1.35B | 2.26B | 653.5M | 714.4M | 863.1M | 734.2M | 585.9M | 597.8M | 22.98M | 67.39M | 77.16M | 41.4M | 95.8M | 76.11M | 76.09M | 25.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.57 | 0.91 | 0.85 | 1.72 | 2.53 | 3.57 | 1.59 | 2.35 | 1.42 | 3.01 | 2.94 | 3.29 | 3.79 | 3.37 | 2.98 | 2.87 | 2.11 | 1.29 | 2.22 | 2.34 | 1.62 | 1.35 | 0.92 | 0.66 | 0.55 | 0.64 | 0.76 | 0.56 | 0.66 | 0.57 | 0.42 |
| EPS Growth % | 94.2% | 7.06% | -50.58% | -32.02% | -29.13% | 124.53% | -32.34% | 65.49% | -52.82% | 2.38% | -10.64% | -13.19% | 12.46% | 13.09% | 3.83% | 36.02% | 63.57% | -41.89% | -5.13% | 44.44% | 20% | 46.74% | 39.39% | 20% | -14.06% | -15.79% | 35.71% | -15.15% | 15.79% | 35.71% | 16.67% |
| EPS (Basic) | - | 0.91 | 0.85 | 1.72 | 2.53 | 3.58 | 1.59 | 2.35 | 1.42 | 3.01 | 2.94 | 3.29 | 3.79 | 3.37 | 2.99 | 2.89 | 2.12 | 1.30 | 2.24 | 2.37 | 1.66 | 1.41 | 0.95 | 0.66 | 0.55 | 0.64 | 0.76 | 0.56 | 0.66 | 0.57 | 0.42 |
| Diluted Shares Outstanding | 518.3M | 515.4M | 510.3M | 490.8M | 489.3M | 490.6M | 491.9M | 504.3M | 538M | 559.1M | 583.8M | 614.9M | 625.2M | 634.1M | 643.2M | 666.25M | 682.06M | 694.36M | 714.84M | 756.35M | 782.45M | 781.5M | 770.91M | 765.73M | 786.05M | 761.34M | 739.59M | 758.05M | 758.26M | 761.51M | 750.65M |
| Basic Shares Outstanding | 517.5M | 514.5M | 509.5M | 490M | 488.7M | 489.9M | 491.9M | 503.6M | 537.4M | 558.8M | 583.8M | 614.8M | 624.8M | 633.1M | 641.4M | 663.12M | 678.31M | 691M | 709.19M | 747.59M | 765.13M | 751.87M | 746.48M | 761.86M | 781.99M | 757.38M | 739.59M | 757.48M | 758.26M | 757.09M | 742.58M |
| Dividend Payout Ratio | - | 130.25% | 141.22% | 68.79% | 45.14% | 30.56% | 66.74% | 43.37% | 276.94% | 26% | 23.67% | 32.74% | 12.18% | 41.05% | 34.33% | 11.24% | 61.11% | 21.5% | 11.27% | 8.05% | 9.29% | 56.6% | 11.6% | 15% | 16.59% | 13.09% | 10.31% | 12.72% | 9.85% | 9.3% | 11.01% |
Integration and reputational contagion
As reported in recent financial statements, Franklin Resources' operating margin fluctuated significantly, reaching a low of negative 6.8% in 2024Q4 before recovering to 14.1% in 2026Q2, highlighting the volatility inherent in the firm's current integration-heavy business model and its reliance on high-cost distribution channels.
The disparity between the firm's historically high gross margins and its compressed operating margins suggests that the costs associated with scaling the multi-boutique platform are currently outpacing revenue synergies. Investors should monitor whether the recent uptick in operating profitability is a sustainable trend or merely a temporary reprieve from integration-related expenses.
Based on the provided income statement data, SG&A expenses have remained stubbornly elevated at approximately $1.2 billion to $1.3 billion per quarter, preventing the firm from achieving meaningful operating leverage despite the revenue scale achieved through recent acquisitions like Putnam Investments and Legg Mason.
The inability to scale SG&A downward as a percentage of revenue suggests that the firm's centralized distribution engine and boutique structure carry a high fixed-cost burden. This lack of operating leverage implies that profitability remains highly sensitive to market-driven AUM fluctuations rather than internal cost efficiencies.
According to the quarterly income statement data, net income has exhibited extreme volatility, swinging from a loss of $84.7 million in 2024Q4 to $346.6 million in 2026Q2, a trend that appears heavily influenced by non-operating items and the lumpy nature of performance-based fee recognition.
The significant variance in EPS, which ranged from a negative $0.18 to $0.52 over the observed period, warrants caution regarding the quality of reported earnings. Analysts should investigate the extent to which stock-based compensation and mark-to-market adjustments on seed capital are distorting the underlying operational performance of the core asset management business.
While management emphasizes the benefits of its multi-boutique strategy, the income statement data suggests that the firm is struggling to convert acquired scale into consistent profitability, as evidenced by the persistent margin pressure and the recent reputational risks associated with key fixed-income boutiques.
Short-term observers may argue that the firm's reliance on M&A to offset secular outflows in traditional active management is a defensive posture that fails to address fundamental fee compression. The potential for talent attrition within acquired boutiques remains a critical risk that could further erode the firm's competitive positioning and long-term earnings power.
Quick answers to the most common questions about buying BEN stock.
Franklin Resources, Inc. (BEN) is profitable, generating $524.9M in net income for the fiscal year ending 2025 with a net profit margin of 6.0%.
Franklin Resources, Inc. (BEN) reported an operating income of $604.1M, resulting in an operating profit margin of 6.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Franklin Resources, Inc. (BEN) generated $7.05B in gross profit for the year, representing a gross profit margin of 80.3%. This demonstrates the company's core pricing power and production efficiency.