Total Revenue (Q1 2024)

+7.8% ( " )

Q1 2024 revenues increased by $80.1 million to $1.1 billion driven largely by higher investment advisory base fees (an increase of $61.9 million from an 11% increase in AUM, despite a 2% lower fee rate), boosted distribution revenues (+$24.6 million) and higher investment gains (+$6.5 million), partially offset by lower performance fees, lower Bernstein Research revenues, and reduced dividend/interest income. " " "

Total Revenue (Q1 2025)

-2.6% YoY from Q1 2024; -13.9% QoQ from Q4 2024 ( " )

Total revenue declined in Q1 2025 due to a slight drop in base fees (-1.4% vs Q4), a dramatic 77.9% drop in performance fees from Q4, the complete loss of Bernstein Research Services revenue (from $96 million to $0) and a shift from investment gains to a loss of $20.5 million, along with lower dividends/interest income. " " "

Cash Flow (Q1 2024)

Operating cash flow improved from a net use of $46.9 million to a provision of $353.7 million ( " )

Operating cash flow surged in Q1 2024 due to higher earnings and favorable working capital adjustments—including increases in broker-dealer payables (+$67.0 million), accounts payable/accrued liabilities (+$63.0 million) and decreases in other assets (+$50.2 million). A $304.0 million joint venture equalization payment bolstered investing cash, though higher debt repayments and distributions increased financing outflows. " "

Cash Flow (Q1 2025)

Operating cash flow dropped to $148.8 million from $353.7 million in Q1 2024 ( " )

Q1 2025 operating cash flow fell sharply due to reduced inflows from receivables (changing from a negative to a positive adjustment that did not fully offset declines), reduced working capital benefits (e.g., a swing in payables and accruals) and the absence of the previous period’s joint venture equalization payment, even as financing outflows eased somewhat with lower debt repayments. "

Balance Sheet (Q1 2024)

Notable changes include cash reduction from $1,000m to $894m, deferred sales commissions up from $87m to $107m, right‐of‐use assets rising from $324m to $505m, and lease liabilities from $369m to $570m ( " )

Balance sheet adjustments in Q1 2024 reflect strategic liquidity and asset management decisions: lower cash levels due to financing uses, increased deferred sales commissions from higher sales activity, significant growth in right‐of‐use assets and lease liabilities from new/modified lease agreements, and reduction in debt from $1,154m to $900m driven by debt repayments and asset reclassifications (e.g., assets held for sale increased). " "

Balance Sheet (Q1 2025)

AUM declined from $792.2B to $784.5B (a $10.1B drop) ( " )

While detailed balance sheet figures are not provided for Q1 2025, the decline in AUM by $10.1 billion—driven by market depreciation and net outflows—coupled with lower revenue and operating income, likely impacts asset values and related balance sheet ratios, reflecting broader market challenges and shifts in client flows. " " "

Income Statement (Q1 2024)

Base fees up by 8%; performance fees down 20%; net income increased by 12%; operating margin improved from 28.7% to 30.3% ( " )

In Q1 2024, income improved as increased base fees (spurred by an 11% rise in AUM) more than offset a 20% decline in performance fees and a 4% drop in Bernstein Research Services revenue; rising expenses in compensation (up 5%) and promotion (up 12%) were controlled well enough to boost net income by 12% and improve operating margin to 30.3%. " " " "

Income Statement (Q1 2025)

Base fees increased by 8% YoY to $818m; performance fees up 24% YoY; Bernstein revenue fell to $0 from $96m; investment losses of $20m; net income up by 1%; operating income down 2%; operating margin improved by 60 bps ( " )

For Q1 2025, while base fees grew (reflecting an 8% rise in AUM) and performance fees increased 24% YoY, the elimination of Bernstein Research Services revenue (from $96 million to $0) and a $20 million investment loss offset these gains. Expenses saw mixed changes with lower compensation (down 7%) and higher promotion/administrative expenses, resulting in a marginal net income rise of 1% but a slight decline in operating income by 2%. " " " "

Fixed Income Demand & Stability

Previously, fixed income was a consistent theme with strong performance noted in American Income, robust inflows in European income and systematic strategies, and attractive yield curve positioning along with normalization signals and credit fundamentals (e.g., Q1 2025 " " , Q4 2024 " " , Q3 2024 " " ).

In Q2 2025, the discussion focused on mixed signals – American Income showed strong relative performance driven by yield curve positioning, systematic strategies attracted over $1B in inflows, and European income remained robust despite volatility, while retail taxable fixed income experienced notable outflows that improved as rate volatility subsided. " " " "

There is a continuous emphasis on fixed income with growing interest in systematic strategies and European income; however, recent signs of stabilization amid rate and FX volatility indicate both resilience and emerging caution. " "

ETF Platform and Product Innovation

The ETF platform was highlighted in previous calls with progressive developments – Q4 2024 mentioned 17 active ETFs reaching $5.5B AUM and plans for geographic expansion into Asia, while Q3 2024 noted progress with 15 active ETFs, innovation in thematic and buffered strategies, and exploration into overseas markets. " "

Q2 2025 emphasized robust growth with 18 active ETFs and nearly $8B AUM, new product launches including an international low volatility product and the first active emerging market ETF, and a new Taiwan ETF launch that opens a completely new geography. " "

The ETF platform continues to evolve with consistent product innovation and a clear push toward geographic expansion through new product launches, reinforcing momentum from previous periods. " "

Wealth Management Expansion & Inorganic Growth

Earlier discussions (Q1 2025, Q4 2024, and Q3 2024) stressed solid private wealth inflows, advisor headcount growth, record adviser productivity, and organic channel strength as well as initiatives in acquisitions and M&A to scale the business. " " "

In Q2 2025, the focus sharpened on expanding wealth management in the ultra-high-net-worth channel, the ability to double or triple advisor headcount due to scalable infrastructure, and selective inorganic growth via small to mid-sized RIA acquisitions while leveraging a permanent capital structure. " "

The focus remains on wealth management expansion, with the current period placing relatively more emphasis on scalable inorganic growth and targeting niche advisor segments, reinforcing past organic growth successes. " "

Institutional Inflows & Pipeline Strength

Previous periods showed a recovery from redemptions and a growing pipeline – Q1 2025 reported the highest inflows since Q4 2022 and an expanding pipeline at $13.5B, Q4 2024 discussed a $10.7B pipeline driven by private placements and insurance partnerships, and Q3 2024 noted institutional outflows tempered by pipeline fundings and increased RFP activity. " " " "

In Q2 2025, institutional inflows were solidly driven by approximately $1B into taxable fixed income and alternatives, a strong rating for the systematic fixed income strategy, and notable customized wins that boosted the pipeline, with deployment timelines potentially accelerated by strategic transactions. " "

There is a clear recovery and bolstering of the institutional pipeline, with consistent strategic wins and deployment acceleration indications compared to prior erratic flows. " "

Retail Channel Performance & Volatility

Previously, retail channels were characterized by stable and growing inflows – Q1 2025 recorded seven straight positive quarters with strong tax-exempt and active equity inflows, Q4 2024 reported record municipal inflows and overall solid growth despite seasonality, and Q3 2024 noted the fifth consecutive quarter of positive net inflows across regions. " " "

In Q2 2025, the retail channel faced macro turbulence resulting in negative flows, including $2.4B outflows in taxable fixed income and significant active equity outflows, although there were areas of constructive performance such as European income and slight improvement in American Income outflows as rate volatility subsided. " " "

While retail channels enjoyed consistent inflows in earlier periods, the current period shows a notable reversal with heightened volatility and negative flows, indicating increased market sensitivity. " "

Performance Fee Sustainability & Compression Risk

In earlier calls, performance fees were consistently driven by private alternative strategies, with Q1 2025 revising fee expectations upward due to strong public contributions yet acknowledging volatility in public fees, Q4 2024 noted high recurring fee growth from private strategies, and Q3 2024 emphasized the predictability of alternative fee streams while flagging potential spread compression. " " " " "

Q2 2025 mentioned performance fee contributions – $22M from private and $8M from public strategies – with projections for higher full-year performance fees, but there was less detailed discussion of compression risk compared to earlier periods. " "

The reliance on predictable private alternative fee streams remains consistent, with the current period showing a balanced upward revision in performance fee expectations though less focus on compression risk; public fees continue to be volatile. "

Margin Guidance & Sales Volatility Uncertainty

Prior discussions highlighted stable margins – Q1 2025 reported strong EPU growth and disciplined expenses, Q4 2024 announced a 36.4% Q4 adjusted margin with full-year targets above 32%, and Q3 2024 demonstrated margin improvement from operational leverage and lease expirations. " " " " "

In Q2 2025, margin guidance remained solid at 33% for the year with Q2’s adjusted margin at 32.3% driven by lower operating expenses, and despite early-quarter sales volatility, signs of recovery in sales were noted with improving institutional redemption rates and growing ETF sales volumes. " " " "

Margins have remained consistently strong and even improved due to operational efficiencies, while sales volatility is being managed effectively as early turbulence gives way to stabilization in current discussions. " "

Regulatory & Structural Challenges

In previous periods, regulatory and structural issues were discussed – Q1 2025 addressed potential changes in muni tax exemptions and their impact on flows " , and Q4 2024 went into detail on the challenges posed by the current partnership structure versus a C-Corp conversion and the limitations it imposes. " "

In Q2 2025, there was no mention of regulatory or structural challenges, marking a departure from earlier emphasis [N/A].

While previously regulators and corporate structure issues (especially around muni regulation and conversion hurdles) received attention, the current period has shifted away from this topic, suggesting either resolution or a deprioritization of these issues. " "

Private Markets Expansion & Ambitious AUM Targets

Past calls consistently emphasized rapid growth in private markets – Q1 2025 noted a 20% increase to $75B in fee-eligible AUM with Equitable commitments, Q4 2024 reported reaching $70B with targets of $90–100B by 2027 and significant product launches, and Q3 2024 highlighted an 11% YoY increase to $68B along with strategic retail and insurance channel initiatives. " " " " "

In Q2 2025, the private markets platform reached $77B in fee-paying and fee-eligible AUM, with clear targets of $90–100B by 2027, robust deployment across private placements, commercial real estate, and increasing leverage of Equitable partnerships driving product innovation and performance fee contributions. " "

The momentum in private markets expansion continues unabated with steadily increasing AUM, deeper strategic partnerships, and additional deployment channels, reinforcing previously set ambitious targets. " "

Market Volatility & Economic Uncertainty

Earlier periods consistently noted economic uncertainty and market volatility – Q1 2025 discussed trade policy and rate volatility impacts on fixed income and equity rotations, Q4 2024 detailed the impact of rising rates and inflation on fixed income returns and equity performance, and Q3 2024 mentioned normalization in asset correlations despite ongoing volatility. " " " " "

Q2 2025 highlighted ongoing geopolitical tensions, fiscal and trade policy uncertainties, and heightened rate and FX volatility that initially impacted flows, although later market recovery in U.S. equities and stabilization in fixed income investments were observed. " "

Concerns over market volatility and economic uncertainty remain a constant theme, but recent periods suggest that investors are adapting with stabilization signals and a gradual return of positive flows even amid external turbulence. " "

Geographic Expansion via New Product Launches

Previous discussions featured geographic initiatives – Q1 2025 mentioned onboarding a significant European client and interest in asset-based finance across regions, Q4 2024 focused on expanding active ETFs into Asia and exploring emerging markets, and Q3 2024 detailed strong growth in the APAC region with launches in Japan, Taiwan, and initial steps in China. " " "

In Q2 2025, geographic expansion was explicitly advanced with the launch of a new Taiwan ETF, reinforcing the strategy of tapping into new markets while the ETF platform continues to grow exponentially. "

The commitment to expanding geographic reach remains strong across periods, with the latest new product launches (e.g. the Taiwan ETF) underpinning the strategy of tapping into regional opportunities and diversifying product offerings. "