Capital ratios remained strong with Tier 1 capital at 14.2% and total risk-based capital at 15.2%.
Cost of deposits remained stable at 160 basis points, down 21 basis points year-over-year, with a beta of 29%.
Cost of deposits remained stable at 160 basis points quarter-over-quarter and declined 21 basis points year-over-year.
Dividends of $0.70 per common share were declared for the third quarter, with $28 million paid on common stock and $5.3 million on preferreds during the quarter.
Dividends of $28 million on common stock and $5.3 million on preferred stock were paid; no share repurchases during the quarter.
Earnings per share increased for the fourth consecutive quarter, reaching $1.06, driven by net interest income and margin expansion.
Net income for Q2 2025 was $47.6 million with diluted EPS of $1.06, up $3.7 million and $0.09 respectively from the prior quarter.
Net income for the quarter was $47.6 million, up $3.7 million from the previous quarter.
Net interest income and net interest margin expanded for the fifth consecutive quarter, with NII increasing by $3.9 million and NIM by 7 basis points.
Net interest income increased by $3.9 million and net interest margin expanded by 7 basis points, marking the fifth consecutive quarter of growth.
Noninterest expense was $110.8 million, including a $1.4 million severance charge; excluding special items, expenses decreased by $600,000 from the prior quarter.
Noninterest income increased slightly to $44.8 million, including a one-time gain of $800,000 from a BOLI recovery.
Noninterest income was $44.8 million, including a one-time gain of $800,000 from a BOLI recovery.
Provision for credit losses was $3.3 million; effective tax rate was 21.2%, expected full-year rate between 21% and 22%.
Provision for credit losses was $3.3 million; effective tax rate was 21.2%, expected to be between 21% and 22% for the full year.
Adjusted free cash flow was $25 million, a more than tenfold increase compared to Q2 2024.
Gross loss ratio improved significantly to 67% in Q2 2025 from 79% in Q2 2024, with a trailing 12-month gross loss ratio of 70%, the best in company history.
Gross profit grew over 100% in Q2, with a gross margin of 39%, among the highest recorded.
Lemonade reported strong Q2 2025 financial results with 29% year-on-year growth in in force premium (IFP), marking the seventh consecutive quarter of growth acceleration.
Net loss narrowed to $44 million ($0.60 per share) from $57 million ($0.81 per share) in the prior year, and adjusted EBITDA loss improved slightly to $41 million from $43 million.
Operating expenses excluding loss and loss adjustment expense increased 21% to $129 million, driven by growth spend and a $12 million one-time tax refund benefit.
Revenue increased 35% year-over-year to $164 million, driven by gross earned premium growth, higher ceding commission rates, and a 16% increase in investment income.
Total cash, cash equivalents, and investments ended at approximately $1.03 billion, up $11 million from year-end 2024.
Adjusted operating expenses were $331 million, stable sequentially, with a decline in adjusted long-term incentives and an 8% increase in non-compensation expenses due to marketing, G&A, and acquisitions.
Adjusted revenue increased 2% sequentially and 9% year-over-year, driven by higher management fees on increased average AUM and improved mutual fund performance fees.
Assets under management (AUM) increased 23% to $457.3 billion, the highest quarterly AUM ever, driven by the Guardian partnership, market gains, and favorable currency adjustments.
Excluding Guardian, net flows remained positive despite market volatility, with 15 strategies including 4 ETFs each having at least $100 million of net inflows.
Investment performance improved meaningfully in the 1-year period, with at least two-thirds of assets beating benchmarks across 1-, 3-, 5-, and 10-year periods and over 70% of AUM in the top 2 Morningstar quartiles.
Janus Henderson delivered a solid second quarter 2025 with adjusted diluted EPS of $0.90, a 6% increase year-over-year.
Net inflows for the quarter were $46.7 billion, including $46.5 billion from Guardian's general account, marking the fifth consecutive quarter of positive net flows.
Net management fee margin was 47.5 basis points in Q2, down from the prior quarter due to mix shifts and one-time adjustments.
The adjusted operating margin was 33.5%, and the firm maintained a strong balance sheet with $900 million in cash and cash equivalents.
The company returned $202 million to shareholders in the first half of 2025 through dividends and share repurchases, reducing shares outstanding by over 22% since 2018.
Dafinchi