Executive Summary

Q1 delivered double‑digit topline and profit growth: revenue rose 11.7% YoY to $190.3M, adjusted EBITDA grew 12.1% to $65.9M (34.6% margin), and net income more than doubled to $38.0M as 2023’s SEC accrual lapped; platform assets reached $116.9B (+21.5% YoY) on $1.84B net flows and $6.13B market tailwind .
Revenue mix: asset‑based fees drove strength (+14.5% YoY), while spread‑based revenue declined 6.0% YoY as higher client interest credited reduced spreads .
Strategic overlay: AMK agreed to be acquired by GTCR for $35.25 in cash per share; management withdrew all prior guidance and did not host a Q1 earnings call; closing targeted for Q4 2024, subject to approvals .
Near‑term stock narrative is anchored by the GTCR deal and regulatory timeline; fundamental catalysts (guidance/Q&A) are limited until closing .

What Went Well and What Went Wrong

What Went Well

Asset‑based revenue growth and operating leverage: total revenue up 11.7% YoY to $190.3M; adjusted EBITDA +12.1% to $65.9M (34.6% margin) as asset‑based revenue rose 14.5% YoY to $150.0M .
Strong platform momentum: platform assets hit $116.9B (+21.5% YoY) with $1.84B net flows and $6.13B market impact; engaged advisors rose to 3,208 and households to 257,162 .
Year‑over‑year EPS and profit expansion: net income climbed to $38.0M (20.0% margin), diluted EPS $0.50, aided by the absence of a $20M SEC accrual booked in Q1’23 .
Quote: “AssetMark Reports $116.9B Platform Assets for First Quarter 2024…Adjusted EBITDA…$65.9 million, or 34.6% of total revenue” (press release highlights) .

What Went Wrong

Spread‑based revenue pressure: spread‑based revenue fell 6.0% YoY to $30.1M as interest credited to client accounts increased, reducing net spread capture .
Higher operating costs in several lines: employee compensation (+6.6% YoY), G&O (+6.4%), and D&A (+17.7%) rose with investments and integration efforts .
No earnings call and guidance withdrawn due to the announced GTCR transaction, limiting visibility and typical investor communication .

Financial Results

Consolidated P&L and Margins (USD Millions, except per‑share and %; oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Total Revenue ($MM)	$190.5	$158.2	$190.3
Net Income ($MM)	$38.4	$34.6	$38.0
Diluted EPS ($)	$0.51	$0.46	$0.50
Net Income Margin (%)	20.1%	21.9%	20.0%
Adjusted Net Income ($MM)	$46.0	$44.0	$45.2
Adjusted EBITDA ($MM)	$66.5	$63.8	$65.9
Adjusted EBITDA Margin (%)	34.9%	40.3%	34.6%

Revenue Mix (USD Millions; oldest → newest)

Revenue Component	Q3 2023	Q4 2023	Q1 2024
Asset‑based Revenue	$143.8	$141.3	$150.0
Spread‑based Revenue	$37.3	$7.4	$30.1
Subscription‑based Revenue	$3.9	$4.1	$4.3
Other Revenue	$5.5	$5.5	$5.9

Key KPIs (oldest → newest)

KPI	Q3 2023	Q4 2023	Q1 2024
Platform Assets (end, $B)	$99.6	$108.9	$116.9
Net Flows ($B)	$1.54	$1.27	$1.84
Market Impact Net of Fees ($B)	($2.71)	$8.07	$6.13
Engaged Advisors (end)	2,995	3,123	3,208
Households (end)	251,424	254,110	257,162
ATC Client Cash (end, $B)	$2.90	$3.05	$3.17

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
All forward guidance metrics	FY 2024	Not reiterated in Q4 press release	Withdrawn due to GTCR transaction; no Q1 call	Withdrawn

Note: Company did not host a Q1 2024 earnings call and withdrew all previously provided guidance; transaction expected to close in Q4 2024, subject to customary approvals .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023 and Q4 2023)	Current Period (Q1 2024)	Trend
Technology/Advisor Experience	Focus on “hyper growth…accelerated capital deployment and enhanced scalability” (Q3 CEO) ; “simplified strategy…integrated technology, exceptional service and consulting, and compelling wealth solutions” (Q4 CEO)	No call; operations continued to emphasize advisor growth metrics (engaged advisors +7.8% YoY)	Steady execution narrative; limited new disclosures
Macro/Interest Rates (spread)	Spread a tailwind in 2023 (quarterly variability visible in mix)	Spread‑based revenue -6.0% YoY due to higher interest credited to clients	Moderating spreads YoY
Regulatory/Legal	Prior SEC settlement in 2023 (accrual in Q1’23, paid in Sept 2023)	No new items; YoY compare benefits from lapping accrual	Clean YoY comp
M&A/Strategic	Adhesion integration referenced in 2023 PRs	Definitive agreement to be acquired by GTCR for $35.25/share; close targeted Q4 2024	Dominant theme; de‑emphasizes quarterly guidance

Management Commentary

“AssetMark Reports $116.9B Platform Assets for First Quarter 2024…Adjusted EBITDA for the quarter was $65.9 million, or 34.6% of total revenue” (press release highlights) .
“Given the announced Transaction, AssetMark will not be hosting an earnings call and…is withdrawing all previously provided financial guidance…[transaction] is expected to close in Q4 2024” .
“Looking to 2024, we’re committed to…deliver an industry leading experience to advisors focused on flexible, integrated technology, exceptional service and consulting, and compelling wealth solutions” — Michael Kim, CEO (Q4 2023 PR) .

Q&A Highlights

There was no Q1 2024 earnings call nor Q&A because of the pending GTCR transaction; management withdrew guidance and directed investors to the forthcoming 10‑Q .

Estimates Context

S&P Global consensus estimates for Q1 2024 were unavailable via our data connection, so we cannot provide a vs‑consensus comparison at this time. Values from S&P Global could not be retrieved due to a mapping limitation, and should be consulted directly for consensus context.

Where estimates may need to adjust: with guidance withdrawn and a pending cash buyout at $35.25 per share, many analysts are likely to shift to a deal‑probability framework and limit forward model sensitivity; within operations, the YoY decline in spread‑based revenue and continued strength in asset‑based fees suggest modest mix normalization tied to interest‑credit dynamics and market levels .

Key Takeaways for Investors

Fundamentals remain solid into the deal: asset‑based fee growth and platform momentum (AUM +21.5% YoY; net flows $1.84B) underpin durable core revenue even as spreads normalize .
Operating performance steady: adjusted EBITDA margin at 34.6% (in line with multi‑quarter range) despite higher OpEx and D&A, reflecting scale benefits offset by investments .
Spread headwind: YoY compression in spread‑based revenue underscores sensitivity to client cash rates and crediting—expect variability with the rate path .
Communication/guidance blackout: no call and guidance withdrawn while the GTCR process advances; fundamental guidance is unlikely until after a transaction outcome .
Deal mechanics the primary stock driver: $35.25 cash offer (customary approvals; target close Q4 2024) focuses investor attention on regulatory timing and closing probability rather than quarterly beats/misses .
Watch KPIs: sustained net flows, engaged‑advisor growth, and ATC cash trends will indicate core momentum through the interim period .
Risk monitor: macro‑linked fee base (market levels, rates) and elevated professional/tech spend remain watchpoints, though liquidity and leverage appear comfortably managed (cash $247.6M; debt ~$93.6M as of 3/31/24) .

Sources: Q1 2024 8‑K (press release and financials) ; Q1 2024 10‑Q for detailed MD&A and line items ; Q4 2023 8‑K (press release and financials) ; Q3 2023 8‑K (press release and financials) ; GTCR merger 8‑K (terms and timing) .

AssetMark Financial Holdings, Inc. (AMK)·Q1 2024 Earnings Summary