Acadian Asset Management : Reports Financial and Operating Results for the First Quarter Ended March 31, 2026 (Presentation)

Published: 2026-04-30 07:42:52 ET AAMI

Published on 04/30/2026 at 07:42 am EDT

April 30, 2026

Acadian Q1'26: Strong Outperformance

Key Performance Metrics

Q1'25

Q1'26

Increase (Decrease)

Net income attributable to controlling

21%

interests ($m)

$20.1

$24.3

U.S. GAAP diluted EPS ($s)

$0.54

$0.68

26%

Economic net income ($m)

$20.3

$37.6

85%

ENI diluted EPS ($s)

$0.54

$1.05

94%

Adjusted EBITDA ($m)

$35.2

$61.8

76%

NCCF ($b)

$3.8

$21.4

n/m

EOP AUM ($b)

$121.9

$195.7

61%

Highlights

U.S. GAAP Net Income attributable to controlling interests increased 21% and EPS increased 26%, driven by increased management fees, partially offset by non-cash expenses representing changes in the value of Acadian LLC equity and profit interests

ENI increased 85% to $37.6 million, driven by revenue growth, and ENI EPS was up 94% to $1.05

Adjusted EBITDA was up 76% primarily driven by increase in management fees

Net flows of $21.4 billion, 12% of beginning AUM, a new quarterly record, led by Enhanced, Extension and Global equity strategies

AUM grew to $195.7 billion, up 61% from Q1'25, another quarter of record-high assets in Acadian's history, driven by net inflows, and market appreciation over the last twelve months

Please see Supplemental Information, Reconciliations and Disclosures Please see Definitions and Additional Notes

Investment Performance: Outstanding Strategy Track Records

Global Equity

Emerging Markets Equity

Non-US Equity

100%

99%

100%

3-Year 5-Year 10-Year

Small Cap Equity

Enhanced Equity

100%

3-Year 5-Year 10-Year 3-Year 5-Year 10-Year

Data as of March 31, 2026

Figures calculated using gross of fee strategy composite returns. Global, Emerging, and Non-US Equity groupings reflect similar composites focused on common geographies. Enhanced and Small Cap Equity mandates are separately reflected. See Definitions and Additional Notes for additional information on the methodology used to calculate investment performance. Past performance is no guarantee of future results. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Acadian.

Investment Performance: Firmwide Long-Term Alpha Generation

Consolidated Firmwide Investment Performance

Revenue Weighted

Asset Weighted

5-year annualized return in excess of benchmark

96%

93%

94%

92%

3-Year 5-Year 10-Year 3-Year 5-Year 10-Year

Data as of March 31, 2026

Note: As of March 31, 2026, Acadian's assets representing 67% of revenue were outperforming benchmarks on a 1-year basis, compared to 85% as of March 31, 2025 and 57% as of December 31, 2025

Please see Definitions and Additional Notes for additional information on the methodology used to calculate investment performance. Past performance is no guarantee of future results. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Acadian.

Net Client Cash Flows: Sustained Momentum

Highlights

Q1'26 net flows of $21.4 billion, 12% of beginning AUM, highest ever quarterly net flows in firm's history, driven by Enhanced, Extension and Global Equity strategies

Gross inflows included a significant Enhanced mandate from a premier UK wealth manager, driving growth in our Non-US client and Wealth segment AUM

Nine consecutive quarters of positive net flows

Net Client Cash Flows ($ in billions)

$21.4

$13.8

$3.8

$6.4

$5.4

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Q1'26 Net flows

beginning AUM

Q1 2026 FINANCIAL RESULTS

Key Performance Metrics

Increase

Outstanding Performance Metrics

U.S. GAAP Basis ($ in millions, unless otherwise noted)

Q1'25

Q1'26

(Decrease)

Revenue

$ 119.9

$ 167.0

39.3 %

Operating income

31.9

41.9

31.3 %

Pre-tax income attributable to controlling interests

28.4

37.5

32.0 %

Net income attributable to controlling interests

20.1

24.3

20.9 %

Diluted shares outstanding

37.4

35.8

Diluted earnings per share, $

$ 0.54

$ 0.68

25.9 %

U.S. GAAP operating margin

26.6 %

25.1 %

(152) bps

Economic Net Income Basis

(Non-GAAP measure used by management)

ENI revenue

$ 118.2

$ 165.0

39.6 %

ENI operating earnings

33.5

62.9

87.8 %

Pre-tax economic net income

28.0

55.5

98.2 %

Economic net income

20.3

37.6

85.2 %

ENI diluted earnings per share, $

$ 0.54

$ 1.05

94.4 %

Adjusted EBITDA

35.2

61.8

75.6 %

ENI operating margin

28.3 %

38.1 %

978 bps

Please see Definitions and Additional Notes

Please see Supplemental Information, Reconciliations and Disclosures

ENI Revenue: Growth Driven by Recurring Management Fees

40%

ENI Revenue ($ in millions) Financial Highlights

$118.2

$5.3

$165.0

Total ENI revenue of $165.0 million increased 40% from Q1'25, primarily due to recurring management fee growth and an increase in performance fees

$112.9

$159.3

$5.7

Q1'26 management fees increased 41% from Q1'25 reflecting a 57% increase in average AUM driven by strong positive NCCFs and market appreciation over the last twelve months

41%

Q1'25 Q1'26

Notes: ENI revenue includes management fees and performance fees; Please see Definitions and Additional Notes Please see Supplemental Information, Reconciliations and Disclosures

ENI Expenses and Variable Compensation: Margin Expansion

ENI Operating Expenses and Variable Compensation ($ millions)

21%

$40.9

$102.1

35%

$54.3

$61.2

$84.7

$30.4

13%

Q1'25 Q1'26

Financial Highlights

Q1'26 ENI Operating Expenses increased 13% primarily driven by higher sales-based compensation and portfolio-related costs due to AUM growth, as well as continued investment in IT and infrastructure

Q1'26 ENI Operating Margin expanded 978 bps y/y to 38.1% mainly driven by increased ENI management fees

Q1'26 Operating Expenses (OpEx) Ratio(1) fell (10)%pts y/y to 38.4% reflecting improved operating leverage

Q1'26 Variable Compensation (VC) increased 35% y/y primarily driven by higher profit before variable compensation

Q1'26 VC Ratio(2) decreased (817) bps y/y to 39.4% from 47.6% in 2025

Assuming revenue mix and levels similar to Q1'26, contractual allocations would imply a full year 2026 VC Ratio of

40%-43%

% Operating Margin

28.3%

38.1%

% OpEx Ratio (1)

48.1%

38.4%

% VC Ratio (2)

47.6%

39.4%

Notes: ENI operating expenses reflect the Company's operating expenses (excluding variable compensation); Variable compensation is primarily comprised of a contractual percentage of ENI earnings before variable compensation and a contractual split of performance fees, which is awarded to employees and recognized over a contractual vesting period; Variable compensation also includes non-cash compensation in the form of Acadian LLC equity provided through recycling and AAMI equity; (1) Operating Expense (OpEx) Ratio reflects total ENI operating expenses as a percent of management fees and is subject to fluctuations as AUM and ENI management fees change; (2) Variable Compensation (VC) Ratio is calculated as variable compensation divided by ENI earnings before variable compensation.

Capital Resources: Strong Balance Sheet

Balance Sheet Profile ($ in millions)

March 31, 2026

Cash

Cash and cash-equivalents of $129.0 million, and $96.7 million of seed investments

Debt reflects $200.0 million balance on term loan credit facility and $85.0 million balance on revolving credit facility

- Revolving credit facility balance reflects first quarter seasonal needs and is expected to be fully paid down by year-end

Leverage ratio(1) of 1.3x and net leverage ratio(2) of 0.7x

$97.2

$101.2

$200.0

$85.0

$96.7

$200.0

$129.0

December 31, 2025 March 31, 2026

Leverage ratio(1)

Net leverage ratio(2)

1.0x

0.5x

1.3x

0.7x

Please see Definitions and Additional Notes

Represents the Company's total debt, divided by last twelve months Adjusted EBITDA

Represents the Company's total debt, net of total cash and cash equivalents, divided by last twelve months Adjusted EBITDA

Capital Management: Shareholder Returns

Quarterly Diluted Shares Outstanding (in millions)

Financial Highlights

Q4'19 Q1'26

$1.4 billion in excess capital returned to stockholders since the end of 2019 through share buybacks and dividends

(58)%

35.8

86.0

Repurchased 0.1 million shares of common stock during the first quarter of 2026, at a volume weighted average price of $49.77 per share, for an aggregate total of $4.7 million

Board declared a quarterly interim dividend of $0.10 per share to be paid on June 26, 2026 to shareholders of record as of the close of business on June 12, 2026

Expect to continue generating strong free cash flow and deploying excess capital toward supporting organic growth, dividends, and share repurchases over time

Closing: Acadian Compelling Investment Opportunity

Competitive Position

Business Momentum

Q1'26 Financial Results

Capital Management

Only pure-play, publicly traded systematic manager

40-year track record with competitive edge in systematic investing

Strong performance track record with more than 96% of strategies by revenue outperforming benchmarks over 3- / 5- / 10- year periods(1)

Record quarterly net inflows of $21.4 billion for Q1'26 (12% of beginning AUM)

Nine consecutive quarters of positive net flows

AUM of $195.7 billion(1), up 61% from Q1'25

Record quarterly management fees of $159.3 million, up 41% from Q1'25

ENI EPS of $1.05, up 94% from Q1'25

ENI Operating Margin expanded 978 bps to 38.1%, up from 28.3% in Q1'25

Strong balance sheet with conservative leverage ratios

Strong free cash flow positions us to continue to invest in organic growth and return excess capital to shareholders

Positioned to continue to drive growth through targeted distribution initiatives and new product offerings

Data as of March 31, 2026. Past performance is no guarantee of future results. This is not investment advice and may not be construed as sales or 12

marketing material for any financial product or service sponsored or provided by Acadian.

Supplemental Information, Reconciliations and Disclosures

U.S. GAAP Statement of Operations

Q1'26 vs. Q1'25

($ in millions, unless otherwise noted)

Q1'25

Q1'26

Management fees

$ 112.9

$ 159.3

Performance fees

5.3

5.7

Consolidated Funds' revenue

1.7

2.0

Total revenue

119.9

167.0

Compensation and benefits

60.8

96.0

General and administrative

22.3

24.9

Depreciation and amortization

4.2

3.6

Consolidated Funds' expense

0.7

0.6

Total operating expenses

Operating income

88.0

125.1

31.9

41.9

Investment income (loss)

0.3

0.1

Interest income

1.1

0.9

Interest expense

(4.8)

(3.4)

Loss on extinguishment of debt

Net consolidated Funds' investment gains (losses)

3.6

(1.9)

Income before income taxes

32.1

37.6

Income tax expense

8.3

13.2

Net income

23.8

24.4

Net income attributable to non-controlling interests

3.7

0.1

Net income attributable to controlling interests $ 20.1 $ 24.3

Earnings per share, basic, $

$ 0.54

$ 0.68

Earnings per share, diluted, $

$ 0.54

$ 0.68

Average basic shares outstanding (in millions)

37.4

35.7

Average diluted shares outstanding (in millions)

37.4

35.8

U.S. GAAP operating margin

27 %

25 %

Pre-tax income attributable to controlling interests

$ 28.4

$ 37.5

Net income attributable to controlling interests

$ 20.1

$ 24.3

Total revenue increased 39.3% from Q1'25 driven by higher management fees reflecting an increase in average AUM in Q1'26 compared to Q1'25

Operating expenses increased 42.2% from Q1'25 driven by an increase in compensation and benefits expense primarily due to an increase in the value of the equity plan liability and an increase in variable compensation in Q1'26 compared to Q1'25

Income tax expense increased 59.0% from Q1'25 primarily as a result of an increase in pre-tax income attributable to controlling interests and the impact of non-deductible compensation expense

U.S. GAAP net income attributable to controlling interests increased 20.9% from Q1'25 primarily due to the increase in management fee revenue

Diluted earnings per share increased 25.9% from Q1'25 due to higher net income attributable to controlling interests in Q1'26 and lower diluted shares outstanding

Please see Definitions and Additional Notes

ENI Operating Expenses and ENI Variable Compensation

ENI Operating Expenses

($ in millions) Q1'25 Q1'26

$M % of MFs(1) $M % of MFs(1)

Fixed compensation and benefits

G&A expenses (excl. sales-based compensation) Depreciation and amortization

$ 24.3

22.3

4.2

21.5 %

19.8 %

3.7 %

26.6

24.9

3.6

16.7 %

15.6 %

2.3 %

Core operating expense subtotal

$ 50.8

45.0 % $

55.1

34.6 %

Sales-based compensation

3.5

3.1 %

6.1

3.8 %

Total ENI operating expenses

$ 54.3

48.1 % $

61.2

38.4 %

Note: ENI management fees

$ 112.9

$ 159.3

ENI Operating Margin

28.3 %

38.1 %

ENI Variable Compensation

($ in millions) Q1'25 Q1'26

Cash variable compensation

$ 29.5

$ 38.6

Add: Non-cash equity-based award amortization

0.9

2.3

Variable compensation

30.4

40.9

Earnings before variable compensation

$ 63.9

$ 103.8

Variable Compensation Ratio (VC as % of earnings before variable comp.)

47.6 %

39.4 %

Reconciliation of U.S. GAAP Operating Income to ENI Operating Earnings

($ in millions)

Q1'25

Q1'26

U.S. GAAP operating income

$ 31.9

$ 41.9

Exclude the impact of:

Acadian LLC key employee-owned equity and profit interest revaluations

(0.3)

16.1

Restructuring costs

(0.2)

Acadian LLC key employee distributions

3.1

6.3

Variable compensation

30.4

40.9

Consolidated Funds' operating income

(1.0)

(1.4)

ENI earnings before variable compensation

63.9

103.8

Less: ENI variable compensation

(30.4)

(40.9)

ENI operating earnings $ 33.5 $ 62.9

Please see Definitions and Additional Notes

(1) Represents reported ENI management fee revenue.

Acadian LLC Key Employee Distributions

Commentary

Represent the share of Acadian LLC profits after variable compensation that is attributable to key employee equity and profit interests holders, according to their ownership interests

Distribution Ratio increased year-over-year to 10.0% in Q1'26 due to growth in management fee profit above contractual thresholds

Given current levels of profits after variable compensation, contractual allocations would imply a 2026 full-year Distribution Ratio of 12%-14%

Acadian LLC Key Employee Distributions

Earnings after variable compensation (ENI operating earnings)

Less: Acadian LLC key employee distributions

Earnings after Acadian LLC key employee distributions $

Acadian LLC Key Employee Distribution Ratio ( /

33.5 $

(3.1)

30.4 $

9.3 %

)

62.9

(6.3)

56.6

10.0 %

($ in millions) Q1'25 Q1'26

Please see Definitions and Additional Notes

Balance Sheet

($ in millions) December 31, 2025 March 31, 2026

$ 101.2

$ 129.0

178.5

190.0

47.6

46.0

51.2

50.8

160.0

162.4

138.5

137.2

$ 677.0

$ 715.4

$ 167.5

$ 80.1

200.0

85.0

61.4

59.5

133.0

159.5

31.1

31.9

$ 593.0

$ 616.0

60.6

77.5

23.4

21.9

84.0

99.4

$ 677.0

$ 715.4

35.8

1.0 x

0.5 x

35.8

1.3 x

0.7 x

Assets

Cash and cash equivalents Investment advisory fees receivable Right of use assets

Investments Other assets

Assets of consolidated Funds

Total assets

Liabilities and shareholders' equity Accounts payable and accrued expenses Third party borrowings

Revolving credit facility Operating lease liabilities Other liabilities

Liabilities of consolidated Funds

Total liabilities

Shareholders' equity

Redeemable NCI of consolidated Funds

Total equity

Total liabilities and equity

Weighted average quarterly diluted shares

Leverage ratio(1) Net leverage ratio(2)

Please see Definitions and Additional Notes

Represents the Company's third party borrowings and revolving credit facility, divided by last twelve months Adjusted EBITDA.

Represents the Company's third party borrowings and revolving credit facility, net of total cash and cash equivalents, divided by last twelve months Adjusted EBITDA.

Assets Under Management Rollforward

($ in billions, unless otherwise noted)

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Beginning balance Gross inflows Gross outflows

Reinvested income and distributions

Net flows

Market appreciation / (depreciation)

Ending balance

$ 117.3

8.8

(5.8)

0.8

$ 121.9

18.7

(5.7)

0.8

$ 151.1

11.9

(6.5)

1.0

$ 166.4

15.6

(11.2)

1.0

$ 177.5

29.6

(9.3)

1.1

3.8

0.8

13.8

15.4

6.4

8.9

5.4

5.7

21.4

(3.2)

$ 121.9

$ 151.1

$ 166.4

$ 177.5

$ 195.7

Average AUM

ENI management fee rate (bps)

$ 120.7

$ 132.4

$ 156.5

$ 169.1

$ 189.5

Assets Under Management by Strategy & Client Location

AUM by Strategy

$ 57.8 29.5 %

$ 40.0

22.5 %

39.7 20.3 %

38.4

21.6 %

32.2 16.5 %

32.8

18.5 %

25.5 13.0 %

26.0

14.7 %

23.7 12.1 %

22.9

12.9 %

16.8 8.6 %

17.4

9.8 %

$ 195.7

$ 177.5

($ in billions) Q1'26 Q4'25

Enhanced Equity Non-U.S. Equity Small Cap Equity

Emerging Markets Equity Global Equity

Other

Total AUM

AUM by Client Location

$ 99.3 50.7 %

$ 99.5

56.1 %

55.1 28.2 %

37.7

21.2 %

31.7 16.2 %

31.2

17.6 %

9.6 4.9 %

9.1

5.1 %

$ 195.7

$ 177.5

($ in billions) Q1'26 Q4'25

U.S. EMEA

Asia Pacific Other

Total AUM

Reconciliations from U.S. GAAP to Non-GAAP Measures(1)

($ in millions) Q1'25 Q1'26

U.S. GAAP net income attributable to controlling interests

Adjustments to reflect the economic earnings of the Company:

20.1 $

24.3

Non-cash key employee-owned equity and profit interest revaluations(2)

Amortization of acquired intangible assets(2) Capital transaction costs(2)

Seed/Co-investment (gains) losses and financings(2)

Tax benefit of goodwill and acquired intangible deductions Discontinued operations attributable to controlling interests and

restructuring(2)(3)

(0.3)

0.1

0.3

16.1

0.3

1.6

0.3

Total adjustment to reflect earnings of the Company

Tax effect of above adjustments(2)

7 ENI tax normalization

Economic net income

ENI net interest expense to third parties Depreciation and amortization(4)

Tax on Economic Net Income

Adjusted EBITDA

(0.2)

(0.1) $

0.1

0.2

20.3

2.4

4.8

7.7

35.2

18.3

(4.8)

(0.2)

37.6

1.1

5.2

17.9

61.8

Reconciliation of U.S. GAAP Pre-tax Income to Pre-tax ENI

U.S. GAAP pre-tax income

$ 32.1 $ 37.6

Adjustments to reflect the economic earnings of the Company:

Non-cash key employee-owned equity and profit interest revaluations

(0.3)

16.1

Capital transaction costs

0.1

0.3

Seed/Co-investment (gains) losses and financings

1.6

Discontinued operations and restructuring costs(2)

(0.2)

Net income attributable to non-controlling interests

(3.7)

(0.1)

Pre-tax ENI

$ 28.0 $ 55.5

($ in millions) Q1'25 Q1'26

ENI Adjustments

Exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees

2ii

3iii

Exclude non-cash amortization or impairment expenses related to acquired goodwill and other intangibles

Exclude capital transaction costs including the costs of raising debt or equity, gains or losses realized as a result of redeeming debt or equity and direct incremental costs associated with acquisitions of businesses or assets

4iv Exclude gains/losses on seed capital and co-investments, as well as related financing costs

Include cash tax benefits related to tax amortization of acquired intangibles

6vi Exclude results of discontinued operations as they are not part of the ongoing business, and restructuring costs incurred in continuing operations

v7ii

Exclude one-off tax benefits or costs unrelated to current operations

Please see Definitions and Additional Notes

For further information and additional reconciliations between U.S. GAAP and non-GAAP measures, see the Company's Quarterly Report on Form 10-Q.

Tax-affected items for which adjustments are included in "Tax effect of above adjustments" line, excluding the discontinued operations component of item 6, are taxed at the respective blended rates applicable to the adjustments. Beginning in the current quarter, the Company updated its approach for calculating the tax effect of adjustments within the above reconciliation. Previously, the Company used a statutory income tax rate of 27.3% for these adjustments. The Company now applies a blended income tax rate, which is intended to more accurately reflect the tax effect of the adjusting items. The effect of this change on prior periods is not material.

The three months ended March 31, 2025 includes severance-related items at Acadian LLC of $(0.2) million.

Includes non-cash equity-based award amortization expense.

Disclaimer

Acadian Asset Management Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:41 UTC.