AllianceBernstein (AB) Q4 2025 earnings summary

Executive summary

• Achieved record $867 billion in AUM at year-end 2025, up 9.4% year-over-year, driven by market appreciation, strong sales, and organic growth in key segments despite negative net flows.

• Private Wealth AUM reached $156 billion, contributing 37% of firm-wide revenues and delivering 6% net new asset growth.

• Private Markets AUM grew 18% year-over-year to $82 billion, with broad-based fundraising and $9 billion deployed in 2025.

• Adjusted operating margin for 2025 was 33.7%, at the upper end of guidance, driven by disciplined expense management.

• Expanded partnership with Equitable to onboard $10 billion+ in commercial mortgage assets by year-end 2026.

Financial highlights

• Full-year adjusted net revenues were $3.52 billion, flat year-over-year; GAAP net revenues were $4.53 billion, up 1.2%.

• Adjusted earnings per unit for 2025 was $3.33, up 2%; full-year distributions were $3.38, up 4%.

• Q4 adjusted earnings per unit was $0.96, down 9% year-over-year; Q4 net revenues were $957 million, down 2%.

• FY25 performance fees totaled $172 million, exceeding guidance, with private markets contributing the majority.

• Adjusted base fees grew 5% year-over-year to $3,215 million.

Outlook and guidance

• Expect to onboard over $10 billion in new long-duration assets from Equitable by year-end 2026.

• On track to reach $90–$100 billion in Private Markets AUM by 2027.

• 2026 non-compensation expense expected at $625 million-$650 million, reflecting investments in technology and commercial mortgage platform.

• Private market strategies expected to contribute $70-$80 million in performance fees in 2026; public market strategies at least $10-$20 million.

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