AllianceBernstein (AB) Q2 2025 earnings summary

Executive summary

• Assets under management (AUM) reached a record $829.1 billion, up 8% year-over-year and 6% sequentially, despite net outflows of $6.7 billion in the quarter.

• Private wealth represents 17% of AUM and 35% of base management fees; pipeline AUM reached nearly $22B, reflecting strong mandate additions.

• Net flows were negative at -$6.7bn, driven by active equity and taxable fixed income outflows, partially offset by inflows in alternatives and tax-exempt strategies.

• Adjusted net income per unit rose 7% year-over-year to $0.76, with a matching cash distribution per unit.

• EQH increased its economic interest in the partnership to 68.6% following a significant unit exchange and tender offer completed in July 2025.

Financial highlights

• Net revenues for Q2 2025 were $1.09 billion, up 5.9% year-over-year; adjusted net revenues rose 2% to $844 million.

• Adjusted operating margin reached 32.3%, up 150bps year-over-year.

• GAAP net income attributable to unitholders was $210.5 million, down 32% year-over-year; adjusted net income per unit was $0.76, up 7% year-over-year.

• Distribution per unit was $0.76, up 7% year-over-year.

• Consolidated debt/LTM EBITDA improved to 0.4x from 0.5x a year ago.

Outlook and guidance

• FY25 adjusted operating margin expected at 33% if average AUM remains flat with 4Q24 levels.

• Projected 2025 performance fees raised to $110–$130M, up from prior guidance.

• Targeting $90–$100bn in private markets AUM by 2027, aiming for 20%+ of asset management revenues.

• Institutional pipeline of awarded but unfunded mandates expanded to $21.9 billion, indicating potential future inflows.

• Management anticipates continued cautious investor sentiment amid ongoing macroeconomic uncertainty.