Cohen & Steers (NYSE:CNS) reported fourth-quarter and full-year 2025 results that management said reflected solid revenue growth, stable fee rates, and continued positive flows. On the company’s earnings call, executives also highlighted a strengthening institutional pipeline and provided expectations for expense trends and tax rates in 2026.
Quarterly and full-year results
Chief Financial Officer Mike Donohue said the company posted as-adjusted earnings of $0.81 per share for the fourth quarter, matching the prior quarter. Full-year 2025 earnings were $3.09 per share, up from $2.93 in 2024.
Operating income rose 3% sequentially to $52.4 million in the fourth quarter, while full-year operating income increased 6.3% to $195.1 million. Operating margin was 36.4%, slightly higher than 36.1% in the prior quarter.
AUM and flows: net inflows continue
Ending AUM was $90.5 billion in the fourth quarter, down slightly from the end of the third quarter, though management emphasized that average AUM increased during the period. Donohue reported net inflows of $1.2 billion in the quarter, primarily tied to advisory and closed-end funds, which were offset by market depreciation and distributions.
Chief Executive Officer Joe Harvey provided more detail, stating the firm had net inflows of $1.28 billion in the fourth quarter and $1.5 billion for full-year 2025. He said the quarter’s “major storylines” included net inflows across all vehicles, improved advisory flows, leadership by strategy in U.S. REITs and global listed infrastructure, and a $513 million inflow connected to a rights offering and associated leverage for an infrastructure closed-end fund.
Harvey’s breakdown of fourth-quarter flows included:
- Open-end funds: $13 million of net inflows, with inflows into two U.S. real estate open-end funds offset by outflows from a third real estate fund and the core preferred stock fund.
- Non-U.S. SICAV funds: $89 million of inflows.
- Active ETFs: $175 million of net inflows, including $25 million of seed capital and $150 million from clients.
- Advisory: four new mandates totaling $689 million plus $86 million of existing client inflows, offset by one $124 million termination.
- Sub-advisory: $30 million of net inflows, with two new mandates of $532 million, one termination of $330 million, and $172 million of client rebalancing outflows.
Harvey also said the firm has had five of the past six quarters with net inflows since the Federal Reserve began easing in September 2024, compared with nine prior quarters of outflows during the tightening period.
Pipeline strength and institutional activity
Harvey said the company’s won unfunded pipeline ended the year at $1.72 billion across 20 mandates, compared with $1.75 billion last quarter and a three-year average of $970 million. He noted that $660 million of new mandates were awarded during the quarter, and that an additional $385 million was won and funded within the quarter and therefore did not appear in the pipeline.
He described the pipeline mix as 54% U.S. REIT strategies, 23% global listed infrastructure, and 16% global real estate. Harvey attributed improved allocator activity to a more confident macro and interest rate backdrop, increased portfolio flexibility due to listed equity outperformance, increased interest in inflation-sensitive allocations, and business gained from underperforming competitors.
On the Q&A portion of the call, Harvey said the institutional pipeline had been strong for two quarters in a row and had “broadened” by number of mandates, allocator domicile, and range of strategies. He cited allocator domiciles including Belgium, Canada, Japan, the Philippines, and the UK.
Investment backdrop and outlook from the CIO
President and Chief Investment Officer John Cheigh emphasized what he called consistent long-term outperformance, stating that 95% of AUM outperformed benchmarks over one year and that three-, five-, and ten-year outperformance rates were all above 95%. He also said 90% of open-end fund AUM was rated four or five stars by Morningstar.
Cheigh highlighted the firm’s non-traded REIT, CNS REIT, which he said has delivered a 10.3% annualized return since inception in January 2024, more than double the median equity non-traded REIT.
Discussing markets, Cheigh said equities ended 2025 with double-digit gains for the third consecutive year, while fourth-quarter sentiment shifted toward value-type stocks as investors trimmed “prior AI winners.” He said diversified real assets rose about 3% in the quarter, natural resource equities rose more than 6%, and global real estate stocks were broadly flat. He also pointed to a private real estate recovery signal, noting preliminary NCREIF ODCE Index results showed a 0.9% total return and the sixth consecutive quarter of improvement.
Looking ahead, Cheigh said the firm expects economic activity and market returns to broaden in 2026 after years of concentrated gains, and described a view for “above-consensus global growth, inflation, and interest rates.” He argued that relative valuation attractiveness could benefit real assets in 2026, and discussed expectations for accelerating REIT earnings growth to roughly 8% in 2026 and 2027, citing lower supply and improving demand dynamics.
Expenses, liquidity, and 2026 guidance
On expenses, Donohue said total expenses rose sequentially in the quarter primarily due to higher general and administrative (G&A) costs, including travel, business development activity, and talent acquisition. Compensation and benefits increased by less than revenue, leading to a compensation ratio of 39% in the quarter and 40% for the year, slightly below the company’s initial 2025 guidance of 40.5%.
Distribution and service fees fell during the quarter, which Donohue attributed to investors shifting into lower fee-paying share classes. The effective tax rate was 25.7% for the quarter and 25.3% for the year, consistent with 2024.
Liquidity totaled $403 million at year-end, up $39 million versus the prior quarter-end. Donohue reminded investors that liquidity typically declines in the first quarter due to the company’s compensation cycle and year-end bonus payments.
For 2026, management offered several as-adjusted expectations:
- Compensation ratio: expected to remain at 40%.
- G&A: expected to grow in the mid-single-digit percentage range, moderating from 2025.
- Effective tax rate: expected to be 25.4%.
Harvey said the firm’s focus in 2026 will include “harvesting ROI” on investments made in recent years in strategies, vehicles, and talent, including continued efforts to scale active ETFs and offshore SICAV vehicles. He also said the company expects it is reaching the peak of balance sheet funding for seeding new vehicles and strategies.
About Cohen & Steers (NYSE:CNS)
Cohen & Steers, Inc is a publicly traded investment management firm specializing in real estate securities and alternative income strategies. Founded in 1986 by Martin Cohen and Robert Steers, the company has built a reputation for expertise in listed real estate investment trusts (REITs) and related equities. Headquartered in New York City, Cohen & Steers applies a research-driven approach to identify value and income opportunities across global property markets.
The firm offers a diverse range of investment products, including mutual funds, closed-end funds, and exchange-traded funds (ETFs).
