Executive Summary

Q4 2023 delivered record platform assets of $108.9B (+19.1% YoY) with $1.3B quarterly net flows; adjusted EBITDA rose to $63.8M (40.3% margin) and adjusted EPS was $0.59, while GAAP diluted EPS was $0.46 .
Total revenue was $158.2M (-3.5% YoY; -17.0% QoQ vs Q3’s $190.5M), driven in part by a reclassification to net presentation of spread-based revenue/expense in Q4; net income increased 35.2% YoY to $34.6M .
Operating momentum continued: engaged advisors rose 8.4% YoY to 3,123, households reached 254,110 (+5.4% YoY), and production lift from existing advisors was 19.4% (annualized), +530 bps YoY .
Consensus estimates: S&P Global (Capital IQ) data was unavailable for AMK for Q4 2023 due to mapping constraints, so beat/miss vs Street cannot be determined at this time (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Record operating scale: platform assets reached $108.9B (+19.1% YoY) supported by $8.1B market impact net of fees and $1.3B net flows; engaged advisors grew to 3,123 and households to 254,110 .
Margin strength and profitability: adjusted EBITDA rose to $63.8M with margin expanding 810 bps YoY to 40.3%; net income margin improved 630 bps YoY to 21.9% .
Positive management tone: “We achieved outstanding financial and operational results, including a record $109 billion in platform assets…Our annual Net Promoter Score of 72…is a true testament to AssetMark’s positive impact” – CEO Michael Kim . Q3 commentary also emphasized “six straight quarter of record adjusted EBITDA…results…excellent” .

What Went Wrong

Revenue decline and comparability issues: total revenue fell 3.5% YoY to $158.2M and declined sequentially from $190.5M in Q3; spread-based revenue presentation changed to net in Q4, complicating YoY/QoQ comparisons .
ATC client cash declined 13.8% YoY to $3.054B, a headwind for spread-based economics sensitivity to client cash balances .
Limited external benchmarking: Street consensus from S&P Global could not be retrieved due to mapping, preventing formal beat/miss assessment (S&P Global data unavailable).

Financial Results

Core metrics vs prior periods

Metric	Q2 2023	Q3 2023	Q4 2023
Total Revenue ($USD Millions)	$183.232	$190.522	$158.183
GAAP Diluted EPS ($)	$0.44	$0.51	$0.46
Net Income ($USD Millions)	$32.877	$38.385	$34.635
Net Income Margin (%)	17.9%	20.1%	21.9%
Adjusted EBITDA ($USD Millions)	$60.397	$66.457	$63.829
Adjusted EBITDA Margin (%)	33.0%	34.9%	40.3%
Adjusted EPS ($)	$0.55	$0.62	$0.59

Notes:

The company reclassified $30.5M of 2023 spread-based expenses to offset spread-based revenue in Q4, moving to a net basis, which affects comparability of spread-based revenue and total revenue vs prior periods .

Year-over-year (YoY) snapshot: Q4 2023 vs Q4 2022

Metric	Q4 2022	Q4 2023
Total Revenue ($USD Millions)	$164.133	$158.183
GAAP Diluted EPS ($)	$0.35	$0.46
Net Income ($USD Millions)	$25.593	$34.635
Net Income Margin (%)	15.6%	21.9%
Adjusted EBITDA ($USD Millions)	$52.879	$63.829
Adjusted EBITDA Margin (%)	32.2%	40.3%
Adjusted EPS ($)	$0.46	$0.59

Segment/Revenue mix

Revenue Category ($USD Millions)	Q2 2023	Q3 2023	Q4 2023
Asset-based Revenue	$137.336	$143.840	$141.268
Spread-based Revenue	$37.271	$37.329	$7.399
Subscription-based Revenue	$3.693	$3.891	$4.051
Other Revenue	$4.932	$5.462	$5.465
Total Revenue	$183.232	$190.522	$158.183

Note: Spread-based revenue/expense presented on a net basis in Q4 2023, affecting comparability vs Q2/Q3 .

KPIs and operating metrics

KPI	Q4 2022	Q3 2023	Q4 2023
Platform Assets (period-end, $USD Millions)	$91,470	$99,597	$108,929
Net Flows ($USD Millions)	$908	$1,543	$1,265
Market Impact Net of Fees ($USD Millions)	$4,284	$(2,708)	$8,067
Advisors (period-end)	9,297	9,354	9,323
Engaged Advisors (period-end)	2,882	2,995	3,123
Households (period-end)	241,053	251,424	254,110
New Producing Advisors	143	158	154
Production Lift (annualized, %)	14.1%	18.7%	19.4%
ATC Assets in Custody ($USD Millions)	$66,169	$73,445	$80,325
ATC Client Cash ($USD Millions)	$3,541	$2,897	$3,054

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q1 2024	Not disclosed in prior press releases reviewed	Not provided in Q4 2023 press release; transcript inaccessible	N/A
Adjusted EBITDA/Margins	FY/Q1 2024	Not disclosed in prior press releases reviewed	Not provided in Q4 2023 press release; transcript inaccessible	N/A
Operating Expenses/Tax Rate	FY/Q1 2024	Not disclosed	Not provided	N/A
Segment-specific (spread/asset-based)	FY/Q1 2024	Not disclosed	Not provided	N/A
Dividends/Capital Actions	FY/Q1 2024	Not disclosed	Not provided	N/A

Note: No explicit numeric guidance was furnished in the Q4 press release; Q4 call transcript could not be retrieved due to a tool error and will be updated if accessible .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2023)	Previous Mentions (Q3 2023)	Current Period (Q4 2023)	Trend
Technology/platform and affiliates (Voyant/Adhesion)	Emphasis on platform powering advisors; strong NPS; over 9,300 advisors	Strategy focus on scalability and capital deployment	“Flexible, integrated technology…exceptional service…compelling wealth solutions”	Consistent focus; heightened emphasis on integrated tech and advisor experience
Macro/market impact	$2.9B market impact net of fees; net flows $1.7B	Negative market impact of $(2.7)B; net flows $1.5B	Positive market impact $8.1B; net flows $1.3B	Volatility through Q2–Q4; strong Q4 market tailwind
Regulatory/legal (SEC matter)	SEC accrual ($20M) impacted non-GAAP reconciliations	SEC settlement impact included in adjustments	Prior SEC settlement noted in non-GAAP reconciliations	Event largely behind; flows through 2023 non-GAAP adjustments
Advisor growth and engagement	~9,300 advisors; >247k households; production lift 20.2%	Advisors >9,300; households >251k; production lift 18.7%	Advisors >9,300; households >254k; production lift 19.4%	Steady growth; engagement rising

Management Commentary

“We achieved outstanding financial and operational results, including a record $109 billion in platform assets. Our annual Net Promoter Score of 72, an all-time high, is a true testament to AssetMark's positive impact on the lives of advisors and their clients” – Michael Kim, CEO .
“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” – Michael Kim, CEO .
Prior quarter context: “Sixth straight quarter of record adjusted EBITDA…expanding margins 90 bps YoY…well on track for the best year in our company’s history” – Michael Kim (Q3) .
Prior half context: “All-time highs in revenue, adjusted EBITDA, adjusted net income and adjusted EPS…record 72 NPS” – Natalie Wolfsen (Q2) .

Q&A Highlights

Q4 2023 earnings call transcript could not be retrieved due to a tool/database inconsistency; Q&A highlights and any guidance clarifications will be provided upon successful transcript access (to be updated).

Estimates Context

Wall Street consensus (S&P Global/Capital IQ) for AMK Q4 2023 EPS and revenue was unavailable due to a mapping constraint in the data pipeline (S&P Global data unavailable). As a result, formal beat/miss vs Street cannot be assessed at this time.

Key Takeaways for Investors

Margin expansion and profitability resilience: adjusted EBITDA margin of 40.3% (+810 bps YoY) and net income margin of 21.9% point to operating leverage and cost discipline; watch for sustainability into 2024 amid market conditions .
Record platform assets and engagement: $108.9B AUM with stronger advisor engagement (3,123 engaged advisors) and production lift (19.4%); these are durable drivers of asset-based revenue .
Revenue comparability caution: Q4’s net presentation of spread-based revenue/expense materially affects QoQ/YoY comparison; investors should focus on asset-based revenue trends and normalized margin metrics for underlying performance .
ATC client cash remains below prior year (-13.8% YoY), tempering spread-based economics; any rate or mix shift in client cash could influence spread revenues .
Capital discipline and balance sheet: cash and equivalents rose to $217.7M; long-term debt net $93.5M; supports continued investment in platform and services .
Near-term trading: narrative likely anchored to record AUM and margin strength; lack of disclosed guidance and unavailable consensus may mute immediate beat/miss dynamics; monitor management’s 2024 priorities around tech integration and advisor services .
Medium-term thesis: continued advisor engagement, wallet share gains, and integrated tech services (Voyant/Adhesion) support sustainable growth; watch for clarity on spread-based revenue cadence and any updated guidance on margins and flows once transcript access is restored .

AssetMark Financial Holdings, Inc. (AMK)·Q4 2023 Earnings Summary