Artisan Partners Asset Management (APAM) investor relations material

Executive summary

• Achieved record AUM of $183.4 billion as of June 30, 2026, up 6% sequentially and 5% year-over-year, driven by $21.2 billion in market appreciation despite $10.5 billion in net client outflows.

• Maintains a high-value, talent-driven business model with a focus on active strategies, long-term global demand, and continued diversification into credit, alternatives, emerging markets, and real estate.

• Expanded to 12 investment teams and 27 strategies, with run-rate revenue of $1,232M as of June 30, 2026.

• The U.S. Value team is being wound down after significant mandate losses, with resources redeployed to higher-growth areas.

• Reported financial results for the quarter ended June 30, 2026, and declared a quarterly dividend.

Financial highlights

• Q2 2026 revenue reached $308 million, up 9% year-over-year and 2% sequentially, with adjusted operating income at $101.4 million and adjusted EPS at $0.94.

• Net income attributable to shareholders was $80.9 million for Q2 2026, up 20% year-over-year; basic and diluted EPS were $1.11.

• Average AUM for Q2 2026 was $181.9 billion, up 9% year-over-year.

• Adjusted operating margin expanded to 32.9% for the quarter, with GAAP operating margin at 27.5%.

• Operating expenses increased 10% year-over-year, mainly due to higher compensation and general/admin costs.

Outlook and guidance

• September quarter expected to be negatively impacted by $0.03 per share due to U.S. Value team wind down, but fixed expenses projected to decline as separation costs roll off.

• Management expects continued net inflows in credit and alternative strategies and net outflows in equity strategies if current trends persist.

• Fixed expense guidance for the year remains unchanged at mid-single digit growth, excluding Grandview and long-term incentive comp.

• Continued focus on expanding credit and alternatives, launching new vehicles, and broadening distribution, including potential ETF offerings.

• The company plans to continue investing in new strategies and growth initiatives while maintaining a high payout ratio for dividends.