Acadian Asset Management (BSIG) Q4 2025 earnings summary

Executive summary

• Achieved record AUM of $177.5 billion as of December 31, 2025, up 51% year-over-year, driven by strong net client cash flows and robust equity markets, with the highest annual net inflows at $29.4 billion.

• Delivered record management fees of $146.4 million in Q4 2025, up 32% year-over-year, with recurring revenue base significantly strengthened.

• ENI diluted EPS reached a record $3.25 for 2025, up 18% year-over-year, and Q4 ENI EPS hit $1.32, up 2% from Q4 2024, supported by share repurchases.

• U.S. GAAP net income attributable to controlling interests decreased 6% year-over-year to $80.0 million, and Q4 net income fell 18% to $34.7 million, mainly due to increased non-cash expenses.

• Long-term investment performance remained strong, with 95% of strategies by revenue outperforming benchmarks over 3-, 5-, and 10-year periods.

Financial highlights

• Q4 2025 revenue increased 2.6% year-over-year to $172.2 million, with management fees up 32% due to a 43% increase in average AUM.

• ENI total revenue for 2025 was nearly $549 million, up 9% from 2024, and ENI margin expanded to 35.5% for FY 2025.

• Adjusted EBITDA rose 9% for the full year to $192.9 million, driven by recurring management fee growth.

• Q4 2025 operating margin expanded to 45.7%, up from 42.3% in Q4 2024.

• Variable compensation ratio decreased to 39.4% for FY 2025 from 42.3% in 2024.

Outlook and guidance

• Entering 2026 with a robust and diverse institutional pipeline across products, geographies, and vehicles, and continued focus on organic growth and expense discipline.

• Expect continued strong free cash flow generation, with excess capital to be deployed toward organic growth, dividends, and share repurchases.

• Ongoing investments in systematic credit, technology, and AI to support growth and efficiency.

• 2026 full-year Acadian LLC key employee distribution ratio projected at 12%-14% given current profit levels.

• Contractual allocations imply a 2026 variable compensation ratio of 40%-43%, assuming similar revenue mix and levels.