Executive Summary

Q1 2025 delivered a clean beat vs consensus: GAAP diluted EPS $0.54 vs $0.49 consensus (+10%); revenue $119.9M vs $113.3M consensus (+6%); Adjusted EBITDA $35.2M vs $32.0M consensus (+10%). The beat was driven by higher average AUM, stronger management fees, and performance fees; accretive buybacks amplified EPS growth . Estimates marked with * are from S&P Global: EPS $0.49*, revenue $113.3M*, EBITDA $32.0M* (Values retrieved from S&P Global).
Net flows were the strongest in 19 years at $3.8B, taking EOP AUM to $121.9B; ENI diluted EPS rose 23% YoY to $0.54, and Adjusted EBITDA grew 10% YoY .
Guidance unchanged on expense ratios: ENI Operating Expense Ratio ~47–49% and Variable Compensation Ratio ~44–48% for FY2025; interim dividend of $0.01 per share declared (June 27, 2025 payable) .
Capital allocation remains shareholder-friendly: $19.4M buybacks (0.8M shares, ~2% of float) in Q1; cash $119.6M; revolver drawn $80M seasonally, leverage 2.0x, net leverage 1.3x; ~$61M remains under buyback authorization (call disclosure) .

What Went Well and What Went Wrong

What Went Well

Record net flows: “positive $3.8 billion NCCF…best start to a year in almost 20 years”; gross sales ~$8.8B YTD; EOP AUM $121.9B .
Enhanced Equity momentum: AUM ~$12B at Q1 (doubled YoY), robust flows; management highlighted consistent outperformance and risk-controlled alpha packaging .
Cost discipline and operating leverage: Adjusted EBITDA +10% YoY to $35.2M; GAAP operating margin expanded to 27% (+494 bps YoY); ENI Opex ratio trend improving .
Management tone: “Acadian delivered positive $3.8 billion of NCCF…Our organic growth reflects strength and momentum…” and commitment to “execute our growth strategy, remaining focused on expense discipline” .

What Went Wrong

Seasonality and sequential deceleration from Q4: Revenue fell sequentially to $119.9M (from $167.8M in Q4); performance fees normalized to $5.3M (from $55.4M in Q4), consistent with fee seasonality .
Market volatility and mixed performance in early Q2: CEO cited sharp swings since early April; some strategies were mixed, though long-term outperformance remains strong .
Managed Gold headwinds: Management acknowledged it has been a headwind in recent quarters, with a constructive environment possibly reducing drag but no near-term asset-raising tailwind expected .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenue ($M)	$105.7	$167.8	$119.9
GAAP Diluted EPS ($)	$0.37	$1.13	$0.54
GAAP Operating Margin (%)	22%	39%	27%
Net Income Attributable to Controlling Interests ($M)	$14.6	$42.5	$20.1
Adjusted EBITDA ($M)	$31.9	$72.8	$35.2
ENI Diluted EPS ($)	$0.44	$1.30	$0.54

Segment breakdown:

Segment Metric	Q1 2024	Q4 2024	Q1 2025
Quant & Solutions Segment ENI ($M)	$31.4	$72.9	$34.9

KPIs and revenue drivers:

KPI	Q1 2024	Q4 2024	Q1 2025
NCCF ($B)	$0.4	$0.9	$3.8
AUM (End of Period, $B)	$110.4	$117.3	$121.9
Average AUM ($B)	$107.6	$118.1	$120.7
Management Fees ($M)	$102.2	$111.3	$112.9
Performance Fees ($M)	$3.1	$55.4	$5.3

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
ENI Operating Expense Ratio (%)	FY 2025	~47–49%	~47–49%	Maintained
Variable Compensation Ratio (%)	FY 2025	~44–48%	~44–48%	Maintained
Acadian LLC Key Employee Distribution Ratio (%)	FY 2025	~7–8%	~8–9%	Raised
Revolving Credit Facility	FY 2025	Facility supports Q1 seasonality; paid down by YE	$80M drawn in Q1; expected paid down by YE	Maintained
Dividend per Share ($)	Q1/Q2 2025	$0.01 (Mar 28, 2025)	$0.01 (Jun 27, 2025)	Maintained (updated pay date)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2, Q-1)	Current Period (Q1 2025)	Trend
Enhanced Equity growth	Q-2: N/A – documents unavailable; Q-1: Key growth driver; strong outperformance; significant asset raising	AUM ~$12B, doubled YoY; robust flows; consistent alpha with low tracking error	Strengthening
Extensions (130/30)	Q-2: N/A; Q-1: Major new accounts funded; strong returns	Continued momentum in pipeline and flows	Strengthening
Systematic Credit	Q-2: N/A; Q-1: First external assets onboarded; HY/IG/global HY seeded	Incubation continues; pipeline constructive	Building
Equity Alternatives	Q-2: N/A; Q-1: High returns, low correlation; assets gathered	Ongoing traction in multi-strategy market	Building
Regional mix (non‑US/EM demand)	Q-2: N/A; Q-1: Breadth across strategies; market share gains	Pivot toward non‑US and EM; increased investor interest	Shifting ex‑US
Macro/volatility	Q-2: N/A; Q-1: Mixed global markets; strong relative performance	Sharp swings in April; process adapts systematically	More volatile

Note: Q-2 (Q3 2024) documents not found in the catalog during search.

Management Commentary

CEO: “Acadian delivered positive $3.8 billion of NCCF in the first quarter of 2025…Our organic growth reflects strength and momentum in the business…we will…remain focused on expense discipline” .
CEO on process and volatility: “Acadian’s process adapts systematically and not emotionally…we find opportunities in periods of dislocation…particularly in less efficient markets” .
CFO on capital allocation: “Cash…$119.6M…Debt including revolving credit facility of $80M…Leverage ratio 2.0x; net leverage 1.3x…Repurchased 0.8M shares…$19.4M” .
CEO on valuation: “AAMI stock PE multiple…around nine times…peer average…around 12 times…implied price…$35.5” .

Q&A Highlights

Flows and fee mix: Enhanced equity and extensions drove broad-based inflows; blended fee ~38 bps near-term; longer term mix may tilt lower with enhanced and higher with extensions/small cap .
Pipeline breadth: Robust pipeline across enhanced/extensions and non‑US mandates; emerging markets interest resurging; momentum expected into Q2/Q3 .
Buybacks: 0.8M shares repurchased ($19M); ~$61M remains under current authorization; pacing dependent on stock price, business needs, and market conditions .
Expenses: Opex and variable comp ratios unchanged; management “laser focused” on expense control to sustain margins through volatility .
Strategy‑specific tone: Managed Gold has been a headwind but environment turning more constructive; not a near-term asset-raising tailwind .

Estimates Context

Metric	Consensus	Actual	Surprise
GAAP Diluted EPS ($)	$0.49*	$0.54	+$0.05 (10%) — bold beat
Total Revenue ($M)	$113.3*	$119.9	+$6.6M (6%) — bold beat
Adjusted EBITDA ($M)	$32.0*	$35.2	+$3.2M (10%) — bold beat

Drivers of the beat: Higher management fees on increased average AUM and stronger performance fees vs Q1 2024; diluted share count down from buybacks, amplifying EPS; operating margin expanded on improved operating leverage .

Values marked with * are from S&P Global (Values retrieved from S&P Global).

Key Takeaways for Investors

AAMI printed a broad-based beat across EPS, revenue, and Adjusted EBITDA vs consensus, with upside driven by AUM/fee tailwinds and disciplined costs; accretive buybacks amplified EPS growth .
Flow momentum is the near-term catalyst: $3.8B net flows (best in 19 years), robust pipeline in Enhanced/Extensions and increased demand for non‑US/EM mandates .
Enhanced Equity is scaling quickly (AUM ~$12B, doubled YoY) with differentiated risk-controlled alpha; Extensions adds higher-fee potential; these initiatives support medium-term revenue growth .
Expense ratios and VC guidance unchanged, suggesting margin stability even through volatility; management emphasizes systematic adaptability to market dislocations .
Capital allocation remains supportive: ongoing buybacks (~$61M authorization remaining), interim dividend, and seasonal revolver expected to be repaid by year-end; leverage metrics remain conservative .
Sequential normalization from Q4 (seasonal peak fees) is expected; focus on sustained fee generation from average AUM growth and pipeline conversion into 2H 2025 .
Valuation angle: Management highlights a 9x LTM ENI P/E vs ~12x peers; multiple expansion case strengthened by growth and flow traction .

Citations: Earnings presentation and 8-K Q1 2025 ; Q1 2025 earnings call transcript ; Q4 2024 8-K and presentation .

Acadian Asset Management Inc. (AAMI)·Q1 2025 Earnings Summary