AGF Management (AGF) Q2 2025 earnings summary

Executive summary

• Assets under management and fee-earning assets reached $53.5 billion as of May 31, 2025, up 12% year-over-year, with strong growth in mutual funds, ETFs, and SMA, despite a slight sequential decline due to market conditions.

• Retail mutual fund net sales were $65 million, marking the fourth consecutive quarter of positive net sales and outpacing industry trends.

• Adjusted diluted EPS for Q2 2025 was $0.39, up from $0.35 year-over-year but down from $0.48 sequentially.

• AGF Investments was named Mutual Fund Provider of the Year and recognized as an Excellence Awardee in the Employer of Choice category.

• Investment performance remained solid, with mutual fund gross returns in the 39th percentile over one year and 41st percentile over five years.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $39.5 million, up from $37.0 million year-over-year but down from $47.9 million sequentially.

• Adjusted net income attributable to equity owners was $26.0 million, up from $23.6 million year-over-year.

• Free cash flow for the quarter was $24.0 million, up from $23.7 million year-over-year, but down from $31.6 million sequentially.

• Net management, advisory, and administration fees were $83.8 million, up from $81.2 million year-over-year, but down from $85.2 million sequentially.

• Adjusted EBITDA margin was 39.9%, up from 38.2% a year ago but down from 43.0% last quarter.

Outlook and guidance

• Management remains conservative in guidance, targeting annual returns of 8%-10% for AGF Capital Partners.

• Focus remains on delivering consistent investment performance, maintaining sales momentum, and building a diversified private capital and alternatives business.

• Management expects continued volatility and is focused on maintaining a strong capital position and liquidity.

• Capital allocation will remain balanced, with potential for increased share buybacks in the near term given current valuation and deal pipeline.

• Management remains confident in a disciplined approach to respond to market shifts and deliver consistent results amid ongoing economic and political uncertainty.