Affiliated Managers Group (AMG) Q2 2025 earnings summary

Executive summary

• Assets under management reached $771 billion as of June 30, 2025, up 9% from December 31, 2024, driven by net inflows in private markets and liquid alternatives, and new affiliate investments.

• Achieved 15% year-over-year growth in economic earnings per share to $5.39 and over $8 billion in net client cash flows, marking the strongest organic growth quarter in 12 years.

• Four new partnerships in 2025, including Montefiore Investment, NorthBridge, Verition, and Qualitas Energy, expanded alternative strategies exposure.

• Alternatives now contribute over 50% of EBITDA on a run-rate basis, with expectations to rise to two-thirds in coming years.

• Strong recurring cash flow supports both growth investments and significant capital return to shareholders.

Financial highlights

• Q2 2025 net income (controlling interest) was $84.3 million, up from $76.0 million in Q2 2024; economic earnings per share reached $5.39, up 15% year-over-year.

• Adjusted EBITDA for Q2 2025 was $219.7 million, up 1% year-over-year; six-month Adjusted EBITDA was $447.9 million, down from $477.3 million.

• Consolidated revenue for Q2 2025 was $493.2 million, down from $500.3 million in Q2 2024.

• Net client cash inflows exceeded $8 billion, with an annualized organic growth rate of 5%.

• Aggregate fees for Q2 2025 increased 7% to $1,173.5 million, driven by a 10% rise in asset-based fees, offset by a 3% drop in performance-based fees.

Outlook and guidance

• Q3 2025 adjusted EBITDA expected between $230 million and $240 million, with seasonally lower net performance fees up to $10 million.

• Q3 economic earnings per share guidance is $5.62 to $5.87, assuming 29.4 million shares.

• Targeting mid-teens annualized long-term earnings growth, supported by organic growth, affiliate investments, and share repurchases.

• Step up in earnings anticipated for 2026 as new partnerships and growth at existing affiliates take full effect.

• Net purchases of approximately $120 million in affiliate equity expected for the remainder of 2025.