Executive Summary

Q2 2024 delivered solid top-line growth with total revenue of $198.5M, up 13.1% YoY, while GAAP diluted EPS was $0.43 and adjusted EPS was $0.66; adjusted EBITDA rose to $71.9M (36.2% margin) .
Sequentially, revenue increased vs Q1 ($190.3M), but net income margin compressed to 16.3% from 20.0%, driven by elevated merger and acquisition expenses tied to the pending GTCR transaction .
Platform assets reached $119.4B (+18.5% YoY; +2.1% QoQ) on $1.7B quarterly net flows and $0.8B market impact net of fees, while engaged advisors and households continued to grow .
Catalyst: Management did not host a Q2 call and withdrew all previously provided guidance due to the GTCR acquisition, with closing expected in Q4 2024—near-term stock narrative is dominated by deal progress/regulatory approvals rather than fundamentals .

What Went Well and What Went Wrong

What Went Well

Revenue mix remained healthy: asset-based revenue rose to $158.9M (+15.7% YoY), and adjusted EBITDA climbed to $71.9M (+19.0% YoY), expanding adjusted EBITDA margin by 180 bps to 36.2% .
Advisor engagement and client households continued to scale: engaged advisors grew to ~3,238, and households to ~261,341; assets from engaged advisors increased to ~$111.9B (+20.2% YoY) .
Strategic confidence: recent CEO messaging emphasized focus on integrated technology, service/consulting, and compelling wealth solutions as key differentiators supporting advisor experience and outcomes .

What Went Wrong

Margin compression QoQ: net income margin fell to 16.3% (from 20.0% in Q1) as professional fees rose and merger/acquisition costs surged to ~$11.0M, overshadowing higher revenue .
Lower market tailwind: market impact net of fees dropped to $0.783B vs $6.130B in Q1, dampening sequential platform asset growth despite positive net flows .
Visibility reduced: management withdrew all guidance and declined to host the Q2 call due to the pending GTCR deal, limiting forward-looking commentary and estimate anchoring .

Financial Results

Metric	Q4 2023	Q1 2024	Q2 2024
Total Revenue ($USD Millions)	$158.2	$190.3	$198.5
GAAP Diluted EPS ($USD)	$0.46	$0.50	$0.43
Adjusted EPS ($USD)	$0.59	$0.60	$0.66
Net Income ($USD Millions)	$34.6	$38.0	$32.3
Net Income Margin (%)	21.9%	20.0%	16.3%
Adjusted EBITDA ($USD Millions)	$63.8	$65.9	$71.9
Adjusted EBITDA Margin (%)	40.3%	34.6%	36.2%

Revenue breakdown:

Revenue Category ($USD Millions)	Q4 2023	Q1 2024	Q2 2024
Asset-based revenue	$141.3	$150.0	$158.9
Spread-based revenue	$7.4	$30.1	$28.9
Subscription-based revenue	$4.1	$4.3	$4.3
Other revenue	$5.5	$5.9	$6.5
Total revenue	$158.2	$190.3	$198.5

Q2 2024 YoY change (selected metrics):

Metric	Q2 2023	Q2 2024	YoY Change
Total revenue ($USD Millions)	$175.5	$198.5	+13.1%
Net income ($USD Millions)	$32.9	$32.3	-1.8%
Adjusted EBITDA ($USD Millions)	$60.4	$71.9	+19.0%
Adjusted EBITDA margin (%)	34.4%	36.2%	+180 bps

KPIs:

KPI	Q4 2023	Q1 2024	Q2 2024
Platform assets (period-end, $USD Millions)	$108,929	$116,901	$119,387
Net flows ($USD Millions)	$1,265	$1,842	$1,703
Market impact net of fees ($USD Millions)	$8,067	$6,130	$783
Advisors (period-end)	9,323	9,280	9,245
Engaged advisors (period-end)	3,123	3,208	3,238
Households (period-end)	254,110	257,162	261,341
Production lift (annualized %)	19.4%	18.6%	20.2%
Assets in custody at ATC ($USD Millions)	$80,325	$86,373	$88,681
ATC client cash ($USD Millions)	$3,054	$3,170	$2,933

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	Previously provided; details not reiterated in Q1/Q2 releases	Guidance withdrawn	Withdrawn
Adjusted EBITDA Margin	FY 2024	Previously provided; details not reiterated in Q1/Q2 releases	Guidance withdrawn	Withdrawn
Adjusted EPS	FY 2024	Previously provided; details not reiterated in Q1/Q2 releases	Guidance withdrawn	Withdrawn
Net flows lift	FY 2024	Previously provided; details not reiterated in Q1/Q2 releases	Guidance withdrawn	Withdrawn
Capital expenditure	FY 2024	Previously provided; details not reiterated in Q1/Q2 releases	Guidance withdrawn	Withdrawn

Note: AssetMark explicitly withdrew all previously provided guidance and did not host the Q2 earnings call due to the pending GTCR transaction; closing remains expected in Q4 2024 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
Technology/platform strategy & advisor experience	CEO emphasized integrated technology, exceptional service/consulting, and compelling wealth solutions as pillars for advisor success .	No call; no new qualitative themes provided. Focus remained on operational KPIs .	Narrative unchanged; deal overshadowing new themes.
Macro rates/client cash & spread-based revenue	ATC client cash $3.054B (Q4) and $3.170B (Q1); spread-based revenue $7.4M (Q4) then $30.1M (Q1) .	ATC client cash declined to $2.933B; spread-based revenue $28.9M .	Client cash down sequentially; modest pressure on spread revenue QoQ.
Regulatory/legal (SEC settlement context)	2023 SEC settlement impacted prior-year adjusted metrics; referenced in Q4 and Q1 materials .	Footnotes continue to reference the 2023 SEC matter in 10-Q notes .	No new developments; legacy disclosure persists.
M&A/GTCR transaction	Agreement announced Apr 25; Q1 release flagged guidance withdrawal and no call .	Q2 reiterated transaction expectations; guidance withdrawn; no call; close expected in Q4 2024 .	Deal progress is primary focus; fundamental guidance paused.
Advisor engagement	Engaged advisors up from 3,123 (Q4) to 3,208 (Q1); households up to 257,162 .	Engaged advisors 3,238; households 261,341; production lift steady at 20.2% .	Continued positive engagement and scaling.

Management Commentary

“Looking to 2024, we're committed to doubling down on our simplified strategy and will continue to deliver an industry leading experience to advisors focused on flexible, integrated technology, exceptional service and consulting, and compelling wealth solutions. I am incredibly excited about the opportunities ahead.” — Michael Kim, CEO (Q4 2023 release) .
“Given the announced Transaction, AssetMark will not be hosting an earnings call and webcast to discuss its second quarter 2024 results and is withdrawing all previously provided financial guidance.” — AssetMark press release, July 18, 2024 .

Q&A Highlights

No Q2 earnings call was held due to the GTCR transaction; therefore, no Q&A session occurred .

Estimates Context

Wall Street consensus estimates via S&P Global for Q2 2024 were unavailable for AMK at the time of this analysis due to a data mapping issue; therefore, beat/miss versus consensus cannot be determined. Management withdrew guidance and did not host an earnings call in Q2, reducing near-term estimate anchors .
Implication: Sell-side revisions may focus on the deal timeline, M&A-related expenses, and margin trajectory rather than traditional quarterly guidance until the GTCR transaction closes .

Key Takeaways for Investors

Revenue strength with improving adjusted profitability: Q2 revenue rose to $198.5M (+13.1% YoY), adjusted EBITDA to $71.9M (+19.0% YoY), and adjusted EPS to $0.66; margins expanded YoY despite lower QoQ net income margin .
QoQ margin pressure driven by deal costs: Merger and acquisition expenses of ~$11.0M in Q2 and higher professional fees compressed GAAP net margin to 16.3% despite revenue growth—watch for continued expense elevation pre-close .
Organic momentum intact: Quarterly net flows of $1.7B and engaged advisor growth to ~3,238 support platform scaling; production lift remained strong at 20.2% .
Market tailwind cooled: Market impact net of fees fell sharply QoQ ($0.783B vs $6.130B in Q1), limiting sequential platform asset expansion .
Balance sheet derisking: Long-term debt net dropped to $0 by June 30, 2024 (from $93.5M at year-end), supported by $93.75M term loan payments in H1—reducing interest burden into the deal close .
Visibility constrained until deal resolution: With guidance withdrawn and no call, the near-term narrative hinges on GTCR closing and regulatory approvals expected in Q4 2024 .
Trading lens: Near-term stock action likely tracks deal spread/progress; fundamental beats/misses are less impactful until guidance resumes post-transaction .

Appendix: Additional Data

Selected operating expense detail (Q2 vs Q1):

Opex Category ($USD Millions)	Q1 2024	Q2 2024
Employee compensation	$50.0	$51.9
General & operating	$27.3	$27.8
Professional fees	$6.1	$12.7
Depreciation & amortization	$9.9	$10.3
Merger & acquisition expenses (Non-GAAP adjustment)	$— / (see footnote variability)	$11.0

Cash flow and debt actions (H1 2024):

Net cash provided by operating activities: $99.4M .
Payments on term loan: $93.75M (H1) .
Long-term debt net: $0 at June 30, 2024 (vs $93.5M at Dec 31, 2023) .

Document references:

Q2 2024 8-K earnings release: financial results, KPIs, non-GAAP reconciliations, and guidance withdrawal .
Q1 2024 8-K earnings release: prior quarter comparables and guidance withdrawal context .
Q4 2023 8-K earnings release: baseline performance and CEO strategic commentary .

AssetMark Financial Holdings, Inc. (AMK)·Q2 2024 Earnings Summary