Artisan Partners Asset Management (APAM) Q2 2025 earnings summary

Executive summary

• Assets under management (AUM) rose to $175.5B as of June 30, 2025, up 8% from March, driven by $15.2B in market appreciation and partially offset by $1.9B in net client outflows.

• Leadership transition completed with Jason Gottlieb as CEO and Eric Colson as Executive Chair, ensuring continuity and stability.

• Continued strong investment performance, with multiple strategies outperforming benchmarks and Morningstar awards for both credit and equity portfolio managers.

• Declared a quarterly dividend of $0.68 per share for Q2 2025 and a subsequent increase to $0.73 per share payable in August 2025.

• Reported financial results for the three and six months ended June 30, 2025, with a conference call scheduled for July 30, 2025.

Financial highlights

• Ending AUM reached $175.5B, up 8% from March; average AUM for Q2 2025 was $166.8B, up 5% year-over-year.

• Revenues for Q2 2025 were $282.8M, up 4% year-over-year; YTD 2Q25 revenues were $559.9M, up 5% year-over-year.

• Net client cash outflows were $1.86B for Q2 2025, mainly due to lower gross equity flows; fixed income saw its 12th consecutive quarter of positive flows.

• Adjusted operating margin was 31.7% for Q2 2025; GAAP operating margin was 28.2%.

• Adjusted net income per share was $0.83 for Q2 2025, flat sequentially and up slightly year-over-year.

Outlook and guidance

• Management expects continued investment in new strategies and growth initiatives, with a focus on differentiated active management.

• Q3 revenue expected to benefit from higher AUM and absence of $2.4M in costs related to the China Post Venture Team.

• No expected ramp in operating expenses; well positioned to capture growth without additional expense initiatives.

• Forward-looking statements highlight risks from market volatility, regulatory changes, and key personnel retention.

• The company anticipates a 1–3% increase in effective tax rate starting in 2027 due to new tax legislation.