Assets under management grew 2% in the quarter, reaching $171 billion at June 30, up $4 billion sequentially due to market performance.
Cash and equivalents were $172.2 million; net debt was $62.5 million or 0.2x EBITDA; gross debt-to-EBITDA remained at 0.7x.
Earnings per share as adjusted increased to $6.25 from $5.73 in the first quarter but decreased 4% year-over-year on lower average assets.
Employment expenses as adjusted decreased 11% sequentially to $97.2 million, reflecting seasonal expenses and lower variable incentive compensation.
ETFs had positive net flows and reached $3.7 billion in AUM with a 74% organic growth rate over the trailing 12 months.
Net income per share on a GAAP basis was $6.12, up from $4.05 in the first quarter due to seasonal items and fair value adjustments.
Operating margin improved to 31.3% from 27.6% sequentially, reflecting seasonal expense impacts.
Other operating expenses as adjusted were $32 million, a 2% sequential increase due to annual equity grants to the Board of Directors.
Total net outflows for the quarter were $3.9 billion, largely in equity strategies; fixed income, alternatives, and multi-assets had modest net outflows.
Total sales were $5.6 billion compared with $6.2 billion in the first quarter, with modest declines across products reflecting market disruption early in the quarter.
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.
Alternative investment income was $60 million below expectations due to lower private equity and real estate returns and a $50 million unfavorable impact from the annual assumption update process.
Capital position remains strong with cash and liquid assets at $3.9 billion, above the $3 billion minimum liquidity target.
Group insurance had one of its best earnings quarters recently with strong underwriting results and a benefit ratio improved to 80.9%.
Individual Life sales grew 10% year-over-year with improved earnings results.
Institutional Retirement delivered $9 billion in sales, including robust Longevity Risk Transfer transactions.
International businesses sales were up 4%, driven by retirement and savings products in Japan despite surrender headwinds.
PGIM's assets under management increased by 8% to $1.4 trillion, with total net flows of $400 million including $2.6 billion institutional inflows and $2.8 billion retail outflows.
Pretax adjusted operating income was $1.7 billion or $3.58 per share, up 9% from the prior year quarter.
Dafinchi