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Revenues from Contracts with Customers | 9 Months Ended
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Sep. 30, 2025
Revenues from Contracts with Customers |
Revenues from Contracts with Customers | 19. Revenues from Contracts with Customers The following tables summarize disaggregation of revenues from contracts with customers, including select financial information by segment, and reconcile totals to those reported in the consolidated financial statements. Revenues from contracts with customers are included in fees and other revenues on the consolidated statements of operations. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended | ​ | For the nine months ended
​ | ​ | September 30, | ​ | September 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | (in millions)
Revenue from contracts with customers by segment: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Retirement and Income Solutions | ​ | $ | 155.4 |  | $ | 169.3 | ​ | $ | 449.3 | ​ | $ | 493.3
Principal Asset Management: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Investment Management | ​ | ​ | 448.6 | ​ | ​ | 433.9 | ​ | ​ | 1,308.4 | ​ | ​ | 1,253.9
International Pension | ​ | ​ | 88.7 | ​ | ​ | 92.3 | ​ | ​ | 272.5 | ​ | ​ | 279.2
Eliminations | ​ | ​ | (4.8) | ​ | ​ | (3.5) | ​ | ​ | (14.1) | ​ | ​ | (11.8)
Total Principal Asset Management | ​ | ​ | 532.5 | ​ | ​ | 522.7 | ​ | ​ | 1,566.8 | ​ | ​ | 1,521.3
Benefits and Protection: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Specialty Benefits | ​ |  | 4.0 | ​ |  | 3.8 | ​ |  | 11.7 | ​ |  | 11.6
Life Insurance | ​ |  | 23.1 | ​ |  | 24.7 | ​ |  | 66.9 | ​ |  | 69.8
Eliminations | ​ | ​ | (0.1) | ​ | ​ | — | ​ | ​ | (0.1) | ​ | ​ | (0.1)
Total Benefits and Protection | ​ | ​ | 27.0 | ​ | ​ | 28.5 | ​ | ​ | 78.5 | ​ | ​ | 81.3
Corporate | ​ |  | 64.9 | ​ |  | 52.6 | ​ |  | 181.0 | ​ |  | 166.3
Total segment revenue from contracts with customers | ​ |  | 779.8 | ​ |  | 773.1 | ​ |  | 2,275.6 | ​ |  | 2,262.2
Adjustments for fees and other revenues not within the scope of revenue recognition guidance (1) | ​ |  | 331.2 | ​ |  | 299.7 | ​ |  | 961.1 | ​ |  | 886.5
Pre-tax other adjustments (2) | ​ |  | 17.7 | ​ |  | 18.3 | ​ |  | 52.3 | ​ |  | 56.7
Total fees and other revenues per consolidated statements of operations | ​ | $ | 1,128.7 | ​ | $ | 1,091.1 | ​ | $ | 3,289.0 | ​ | $ | 3,205.4
(1) | Fees and other revenues not within the scope of the revenue recognition guidance primarily represent revenue on contracts accounted for under the financial instruments or insurance contracts standards.
(2) | Pre-tax other adjustments relate to revenues from exited business, certain variable annuity fees and market value adjustments to fee revenues.
Retirement and Income Solutions Retirement and Income Solutions offers service and trust agreements for defined contribution retirement plans, including 401(k) plans, 403(b) plans, and employee stock ownership plans. The investment components of these service agreements are in the form of mutual fund offerings. In addition, plan sponsor retirement plan trust and custody services are also available through our trust company. Individual retirement accounts (“IRAs”) are offered through Principal Bank. Furthermore, services and trust agreements are offered to non-retirement customers including insurance companies, endowments and other financial institutions. Administrative service fee revenues are earned for administrative activities performed for the defined contribution retirement plans including recordkeeping and reporting as well as trust and custody, asset management and investment services. Administrative service fee revenues are earned for administrative activities performed for non-retirement plan customers including trust and custody services, defined benefit administration and investment management activities. The majority of these activities are performed daily over time. Fee-for-service transactions are also provided upon client request. These services are considered distinct or grouped into a bundle until a distinct performance obligation is identified. Some performance obligations are considered a series of distinct services, which are substantially the same and have the same pattern of transfer to the customer. Administrative service fee revenues can be based on a fixed contractual rate for these services or can be variable based upon contractual rates applied to the market value of the client’s investments or assets under administration. If the consideration for this series of performance obligations is based on market value, it is considered variable during the billing period as the services are performed over time. The consideration becomes unconstrained and thus recognized as revenue for each billing period’s series of distinct services once the market value of the client’s investments or assets under administration is determined at market close. Additionally, fixed fees and other revenues are recognized point-in-time as fee-for-service transactions upon completion. IRAs are primarily funded by retirement savings rolled over from qualified retirement plans. The IRAs are held in savings accounts, money market accounts and certificates of deposit. Deposit account fee revenues are earned as the performance of establishing and maintaining IRA accounts is completed. Fee-for-service transactions are also provided upon client request. The establishment fees and annual maintenance fees are accrued into earnings over a period of time using the average account life. Upfront and recurring bank fees are related to performance obligations that have the same pattern of transfer to the customer and are recognized in income over time with control transferred to the customers utilizing the output method. These fees are based on a fixed contractual rate. Fixed fees and other revenues are also recognized point-in-time as fee-for-service transactions upon completion. Additionally, commission income is earned on advisory services provided to customers. The revenues are earned over time as the service is performed based upon contractual rates applied to the market value of the clients’ portfolios. The types of revenues from contracts with customers were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended | ​ | For the nine months ended
​ | ​ | September 30, | ​ | September 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | (in millions)
Administrative service fee revenue | ​ | $ | 150.5 | ​ | $ | 165.3 | ​ | $ | 435.3 | ​ | $ | 481.6
Deposit account fee revenue | ​ | ​ | 3.3 | ​ | ​ | 3.1 | ​ | ​ | 9.9 | ​ | ​ | 9.2
Commission income | ​ | ​ | 1.6 | ​ | ​ | 0.9 | ​ | ​ | 4.1 | ​ | ​ | 2.5
Total revenues from contracts with customers | ​ | ​ | 155.4 | ​ | ​ | 169.3 | ​ | ​ | 449.3 | ​ | ​ | 493.3
Fees and other revenues not within the scope of revenue recognition guidance | ​ | ​ | 303.9 | ​ | ​ | 283.9 | ​ | ​ | 885.4 | ​ | ​ | 838.7
Total fees and other revenues | ​ |  | 459.3 | ​ |  | 453.2 | ​ |  | 1,334.7 | ​ |  | 1,332.0
Premiums and other considerations | ​ |  | 566.5 | ​ |  | 471.7 | ​ |  | 1,824.0 | ​ |  | 2,236.8
Net investment income | ​ |  | 860.4 | ​ |  | 761.5 | ​ |  | 2,521.0 | ​ |  | 2,244.3
Total operating revenues | ​ | $ | 1,886.2 | ​ | $ | 1,686.4 | ​ | $ | 5,679.7 | ​ | $ | 5,813.1
​ Principal Asset Management Fees and other revenues earned for asset management, investment advisory and distribution services provided to institutional and retail clients in addition to trustee and/or administrative services performed for retirement savings plans. Fees are based largely upon contractual rates applied to the specified amounts of the clients’ portfolios. Each service is a distinct performance obligation; however, if the services are not distinct on their own, we combine them into a distinct bundle or we have a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. Fees and other revenues received for performance obligations such as asset management and other services are typically recognized over time utilizing the output method as the service is performed. Performance fees and transaction fees on certain accounts are recognized in income when the probability of significant reversal will not occur upon resolution of the uncertainty, which could be based on a variety of factors such as market performance or other internal metrics. Asset management fees are accrued each month based on the fee terms within the applicable agreement and are generally billed quarterly when values used for the calculation are available. Management fees and performance fees are variable consideration as they are subject to fluctuation based on assets under management (“AUM”) and other constraints. These fees are not recognized until unconstrained at the end of each reporting period. Incentive-based fees are recognized in income when the probability of significant reversal will not occur upon the resolution of the uncertainty, which is based on market performance. Fees for managing customers’ mandatory retirement savings accounts in Chile are collected with each monthly deposit made by our customers. If a customer stops contributing before retirement age, we collect no fees but services are still provided. We recognize revenue from these contracts as services are performed over the life of the contract and review annually. The types of revenues from contracts with customers were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended | ​ | For the nine months ended
​ | ​ | September 30, | ​ | September 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | (in millions)
Investment Management: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Management fee revenue | ​ | $ | 409.5 | ​ | $ | 390.1 | ​ | $ | 1,186.7 | ​ | $ | 1,134.9
Other fee revenue | ​ |  | 39.1 | ​ |  | 43.8 | ​ |  | 121.7 | ​ |  | 119.0
Total revenues from contracts with customers | ​ |  | 448.6 | ​ |  | 433.9 | ​ |  | 1,308.4 | ​ |  | 1,253.9
Fees and other revenues not within the scope of revenue recognition guidance | ​ | ​ | 8.9 | ​ | ​ | 4.1 | ​ | ​ | 21.5 | ​ | ​ | 14.9
Total fees and other revenues | ​ |  | 457.5 | ​ |  | 438.0 | ​ |  | 1,329.9 | ​ |  | 1,268.8
Net investment income | ​ |  | 26.4 | ​ |  | 28.4 | ​ |  | 74.9 | ​ |  | 77.3
Total operating revenues | ​ | $ | 483.9 | ​ | $ | 466.4 | ​ | $ | 1,404.8 | ​ | $ | 1,346.1
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended | ​ | For the nine months ended
​ | ​ | September 30, | ​ | September 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | (in millions)
International Pension: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Management fee revenue | ​ | $ | 85.2 | ​ | $ | 89.0 | ​ | $ | 262.0 | ​ | $ | 267.8
Other fee revenue | ​ |  | 3.5 | ​ |  | 3.3 | ​ |  | 10.5 | ​ |  | 11.4
Total revenues from contracts with customers | ​ |  | 88.7 | ​ |  | 92.3 | ​ |  | 272.5 | ​ |  | 279.2
Fees and other revenues not within the scope of revenue recognition guidance | ​ | ​ | 5.7 | ​ | ​ | 1.3 | ​ | ​ | 8.4 | ​ | ​ | 4.1
Total fees and other revenues | ​ |  | 94.4 | ​ |  | 93.6 | ​ |  | 280.9 | ​ |  | 283.3
Premiums and other considerations | ​ |  | 0.5 | ​ |  | 4.8 | ​ |  | 6.1 | ​ |  | 18.0
Net investment income | ​ |  | 153.1 | ​ |  | 179.0 | ​ |  | 439.6 | ​ |  | 445.0
Total operating revenues | ​ | $ | 248.0 | ​ | $ | 277.4 | ​ | $ | 726.6 | ​ | $ | 746.3
​ Benefits and Protection Fees and other revenues are earned for administrative services performed including recordkeeping and reporting services for fee-for-service products, nonqualified benefit plans, separate accounts and dental networks. Services within contracts are not distinct on their own; however, we combine the services into a distinct bundle and account for the bundle as a single performance obligation, which is satisfied over time utilizing the output method as services are rendered. The transaction price corresponds with the performance completed to date, for which the value is recognized as revenue during the period. Variability of consideration is resolved at the end of each period and payments are due when billed. Commission income is earned through sponsored brokerage services. Performance obligations are satisfied at a point in time, upon delivery of a placed case, and the transaction price calculated per the compensation schedule is recognized as revenue. The types of revenues from contracts with customers were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended | ​ | For the nine months ended
​ | ​ | September 30, | ​ | September 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | (in millions)
Specialty Benefits: | ​ | ​ | ​ |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​
Administrative service fees | ​ | $ | 4.0 | ​ | $ | 3.8 | ​ | $ | 11.7 | ​ | $ | 11.6
Total revenues from contracts with customers | ​ | ​ | 4.0 | ​ |  | 3.8 | ​ | ​ | 11.7 | ​ |  | 11.6
Fees and other revenues not within the scope of revenue recognition guidance | ​ | ​ | 4.4 | ​ | ​ | 4.4 | ​ | ​ | 13.1 | ​ | ​ | 13.4
Total fees and other revenues | ​ | ​ | 8.4 | ​ |  | 8.2 | ​ | ​ | 24.8 | ​ |  | 25.0
Premiums and other considerations | ​ | ​ | 836.8 | ​ |  | 810.6 | ​ | ​ | 2,492.1 | ​ |  | 2,408.6
Net investment income | ​ | ​ | 51.3 | ​ |  | 50.1 | ​ | ​ | 155.7 | ​ |  | 141.9
Total operating revenues | ​ | $ | 896.5 | ​ | $ | 868.9 | ​ | $ | 2,672.6 | ​ | $ | 2,575.5
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended | ​ | For the nine months ended
​ | ​ | September 30, | ​ | September 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | (in millions)
Life Insurance: | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​
Administrative service fees | ​ | $ | 11.0 | ​ | $ | 10.3 | ​ | $ | 32.8 | ​ | $ | 28.9
Commission income | ​ | ​ | 12.1 | ​ |  | 14.4 | ​ | ​ | 34.1 | ​ |  | 40.9
Total revenues from contracts with customers | ​ | ​ | 23.1 | ​ |  | 24.7 | ​ | ​ | 66.9 | ​ |  | 69.8
Fees and other revenues not within the scope of revenue recognition guidance | ​ | ​ | 89.7 | ​ | ​ | 84.9 | ​ | ​ | 271.1 | ​ | ​ | 251.6
Total fees and other revenues | ​ | ​ | 112.8 | ​ |  | 109.6 | ​ | ​ | 338.0 | ​ |  | 321.4
Premiums and other considerations | ​ | ​ | 136.1 | ​ |  | 131.5 | ​ | ​ | 384.0 | ​ |  | 380.7
Net investment income | ​ | ​ | 115.3 | ​ |  | 103.7 | ​ | ​ | 326.9 | ​ |  | 309.6
Total operating revenues | ​ | $ | 364.2 | ​ | $ | 344.8 | ​ | $ | 1,048.9 | ​ | $ | 1,011.7
​ Corporate Fees and other revenues are earned on the performance of selling and servicing of securities and related products offered through PSI, an introducing broker-dealer registered with the FINRA. PSI enters into selling and distribution agreements with the obligation to sell or distribute the securities products, such as mutual funds, annuities and products sold through RIAs, to individual clients in return for front-end sales charges, 12b-1 service fees, annuity fees and asset-based fees. Front-end sales charges, 12b-1 fees and annuity fees are related to a single sale and are earned at the time of sale. PSI also enters into agreements with individual customers to provide securities trade execution and custody through a brokerage services platform in return for ticket charge and other service fee revenue. These services are bundled as one single distinct service referred to as brokerage services. This revenue is related to distinct transactions and is earned at a point in time. PSI also enters into agreements with individual customers to provide trade execution, clearing services, custody services and investment research services through our proprietary offered fee-based products. These services are bundled as one single distinct service referred to as advisory services. In addition, for outside RIA business PSI performs sales and distribution services only. The revenues are earned over time as the service is performed utilizing the output method. A majority of our revenue is based upon contractual rates applied to the market value of the clients’ portfolios and considered variable consideration. The Corporate segment also includes inter-segment eliminations of fees and other revenues. The types of revenues from contracts with customers were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the three months ended | ​ | For the nine months ended
​ | ​ | September 30, | ​ | September 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | ​ | 2024
​ | ​ | (in millions)
Commission income | ​ | $ | 133.5 | ​ | $ | 129.4 | ​ | $ | 396.9 | ​ | $ | 351.8
Other fee revenue | ​ |  | 25.2 | ​ |  | 22.4 | ​ | ​ | 74.2 | ​ | ​ | 66.5
Eliminations | ​ |  | (93.8) | ​ |  | (99.2) | ​ | ​ | (290.1) | ​ | ​ | (252.0)
Total revenues from contracts with customers | ​ |  | 64.9 | ​ |  | 52.6 | ​ | ​ | 181.0 | ​ | ​ | 166.3
Fees and other revenues not within the scope of revenue recognition guidance | ​ | ​ | (81.4) | ​ | ​ | (78.7) | ​ | ​ | (238.4) | ​ | ​ | (235.8)
Total fees and other revenues | ​ |  | (16.5) | ​ |  | (26.1) | ​ | ​ | (57.4) | ​ | ​ | (69.5)
Premiums and other considerations | ​ | ​ | (1.3) | ​ | ​ | (1.3) | ​ | ​ | (4.0) | ​ | ​ | (3.9)
Net investment income | ​ |  | 42.0 | ​ |  | 58.5 | ​ | ​ | 144.3 | ​ | ​ | 142.0
Total operating revenues | ​ | $ | 24.2 | ​ | $ | 31.1 | ​ | $ | 82.9 | ​ | $ | 68.6
​ Contract Costs Sales compensation and other incremental costs of obtaining a contract are capitalized and amortized over the period of contract benefit if the costs are expected to be recovered. The contract cost asset, which is included in other assets on the consolidated statements of financial position, was $175.0 million and $198.9 million as of September 30, 2025 and December 31, 2024, respectively. We apply the practical expedient for certain costs where we recognize the incremental costs of obtaining these contracts as an expense when incurred if the amortization period of the assets is one year or less. These costs, along with costs that are not deferrable, are included in operating expenses on the consolidated statements of operations. Deferred contract costs consist primarily of commissions and variable compensation. We amortize capitalized contract costs on a straight-line basis over the expected contract life, reflecting lapses as they are incurred. Deferred contract costs are subject to impairment testing on an annual basis, or when a triggering event occurs that could warrant an impairment. To the extent future revenues less future maintenance expenses are not adequate to cover the asset balance, an impairment is recognized. Amortization expense of $10.1 million and $9.8 million for the three months ended September 30, 2025 and 2024 and $70.8 million and $29.7 million for the nine months ended September 30, 2025 and 2024, respectively, was recorded in operating expenses on the consolidated statements of operations. For the nine months ended September 30, 2025 and 2024, amortization expense included $45.4 million and $0.0 million, respectively, of impairment loss in relation to the costs capitalized. See Note 2, Other Intangible Assets, for further details of the agreement with BCT that led to the 2025 impairment.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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