AllianceBernstein (AB) Q3 2025 earnings summary

Executive summary

• Achieved record firm-wide AUM of $860.1 billion as of September 30, 2025, up 7% year-over-year, with $153 billion in private wealth and $351 billion in institutional AUM.

• Net inflows were $1.7 billion, excluding a $4 billion outflow from a reinsurance transaction, driven by strong tax-exempt fixed income and private alternatives.

• Private markets AUM neared $80 billion, up 17% year-over-year, progressing toward a $90–$100 billion target by 2027.

• Expanded insurance asset management business with new partnerships, including Fortitude and FCA REIT, and over 90 third-party insurance clients with $60 billion AUM.

• Major exchange agreement with EQH resulted in the retirement of 19.7 million AB Holding Units and a shift in ownership structure.

Financial highlights

• Q3 2025 adjusted net revenues were $885 million, up 5% year-over-year; GAAP net revenues reached $1.14 billion.

• Adjusted operating income rose 15% to $303 million, with adjusted operating margin at 34.2%, up 290 basis points year-over-year.

• Adjusted earnings per unit for Q3 were $0.94, up from $0.85 a year ago; distributions per unit increased 12% to $0.86.

• GAAP net income attributable to unitholders was $259 million, down 25% year-over-year, mainly due to the absence of prior period gains and higher expenses.

• Performance fees for Q3 totaled $20 million; full-year performance fee guidance raised to $130 million–$155 million.

Outlook and guidance

• Targeting private markets AUM of $90–$100 billion by 2027, with continued expansion in insurance and private wealth channels.

• FY25 performance fees expected to be $130–$155 million, up from prior guidance.

• Non-compensation expense guidance lowered to $600 million–$610 million for 2025, reflecting ongoing cost discipline.

• Management expects continued reliance on adjusted net income per unit for cash distributions.

• Institutional pipeline AUM stands at $11.8 billion, expected to grow with new partnerships.