Acadian Asset Management (BSIG) Q2 2025 earnings summary

Executive summary

• Achieved record AUM of $151.1 billion as of June 30, 2025, up 34% year-over-year, driven by strong net inflows and market appreciation.

• Delivered $13.8 billion in positive net client cash flow (NCCF) in Q2 2025, representing 11% of beginning period AUM and the highest quarterly NCCF ever.

• Over 94% of strategies by revenue outperformed benchmarks across three, five, and ten-year periods.

• Enhanced equity and extension strategies, along with global distribution, were key drivers of growth and client inflows.

• Maintained a global institutional client base with $28 billion gross sales year-to-date and over 1,000 institutional accounts.

Financial highlights

• Q2 2025 revenue rose 16.9% year-over-year to $127.4 million, with management fees up 15.9% to $122.3 million.

• ENI diluted EPS was $0.64, up 42% from Q2 2024; Adjusted EBITDA increased 22% to $39.1 million.

• U.S. GAAP net income attributable to controlling interests fell 8% to $10.1 million; GAAP EPS declined 3% to $0.28 year-over-year.

• ENI operating margin expanded to 30.7% from 27.1% in Q2 2024; U.S. GAAP operating margin declined to 12.7% from 18.9%.

• Total operating expenses increased 25.8% to $111.2 million, mainly due to a 34.7% rise in compensation and benefits expense.

Outlook and guidance

• Operating expense ratio for FY 2025 expected to be 45%-47% if equity markets remain stable.

• Variable compensation ratio for FY 2025 projected at 43%-47%.

• Key employee distribution ratio expected at 9%-10% for full-year 2025, subject to market mix.

• Management expects available cash and operating cash flow to be sufficient for at least the next twelve months.

• Pipeline for new mandates remains robust and diversified across strategies, channels, and geographies.