AllianceBernstein (AB) investor relations material

Executive summary

• Net income attributable to unitholders rose 33.8% year-over-year to $295.5 million, driven by higher investment gains, advisory fees, and a $48.4 million gain from a joint venture transaction with Societe Generale.

• Net revenues for Q1 2026 rose 11% year-over-year to $1.2 billion, with operating income up 38% to $327 million and net income attributable to unitholders up 33% to $295 million.

• The Equitable-Corebridge merger is expected to accelerate growth, adding $100 billion in assets over time and enhancing scale and earnings durability.

• First quarter 2026 saw net active outflows of $6.3–$7.1 billion amid heightened market volatility, but private markets, SMAs, and ETFs continued to grow.

• AUM ended at $838.6 billion, up 6.9–7% year-over-year but down 3.3% sequentially due to market depreciation and net outflows.

Financial highlights

• Adjusted earnings per unit for Q1 2026 were $0.83, up 4% year-over-year; GAAP net income per unit was $0.92, and distributions per unit were $0.83–$0.90.

• Net revenues reached $1.2 billion, a rise of 11% year-over-year; adjusted net revenues were $871 million, up 4% year-over-year.

• Operating income was $291–$327 million, up 3–38% year-over-year; GAAP operating margin improved to 26.1%, adjusted margin at 33.4%.

• Performance fees totaled $23 million, down $16 million year-over-year; full-year performance fee outlook raised to $95–$115 million.

• Compensation ratio was 48.5% of adjusted net revenues; employee compensation and benefits expense rose 11.2% to $467.6 million.

Outlook and guidance

• Full-year 2026 performance fee guidance increased to $95–$115 million, with private market performance fees unchanged at $70–$80 million.

• Institutional pipeline AUM reached a record $27.5 billion in won but unfunded mandates, expected to fund over the next nine months.

• Non-compensation expenses for 2026 expected between $625–$650 million, reflecting normalization and tech investments.

• Effective tax rate forecasted at 6–7% for 2026.

• Management expects continued reliance on adjusted net income per unit for distributions and sufficient liquidity from operating cash flows.