Artisan Partners Asset Management (APAM) investor relations material

Executive summary

• Ended Q1 2026 with $173 billion in AUM, down 4% sequentially, with net client outflows of $3.1 billion and negative investment returns, but achieved record AUM at year-end 2025 and expanded to 12 teams and 27 strategies.

• Strong long-term investment performance: 74% of AUM outperformed benchmarks over three years, 76% over five years, and 99% over ten years gross of fees; all 12 strategies with 10+ year track records outperformed since inception net of fees.

• Recent industry recognition includes Morningstar and Lipper awards for multiple teams and funds, validating the platform's quality and repeatability.

• Completed acquisition of Grandview Property Partners, expanding into U.S. middle market real estate private equity and alternatives.

• Continued investment in distribution, EMEA expansion, and broadening of investment vehicles to support long-term growth.

Financial highlights

• Q1 2026 revenues were $303 million, up 9% year-over-year but down 10% sequentially; adjusted operating income was $94.2 million, down 30% sequentially but up 6% year-over-year.

• Adjusted net income per share was $0.87; GAAP net income was $58 million with GAAP EPS of $0.76.

• Adjusted operating margin was 31.1%, down 910 bps year-over-year.

• Quarterly dividend declared at $0.77 per share, representing 80% of Q1 cash generation; total dividends over five years reached $17.65 per share.

• Cash and cash equivalents increased to $271.1 million; total borrowings remained at $190 million.

Outlook and guidance

• Management expects continued pressure on equity flows but is optimistic about long-term growth via platform expansion, credit and alternatives, and distribution investments.

• Full-year 2026 expense guidance unchanged, excluding $20 million in incremental fixed expenses for long-term incentive compensation and Grandview.

• Fixed expenses projected to increase at a low single-digit rate in 2026; management highlights a variable cost structure and strong cash flow.

• Plans to pay approximately 80% of quarterly cash generation as dividends, with potential special dividends at year-end.