AGF Management (AGF) Q3 2026 earnings summary

Executive summary

• Assets under management and fee-earning assets reached $74.2 billion as of August 31, 2026, up 31% year-over-year, with strong growth in ETFs, SMAs, and alternatives, and positive Canadian retail mutual fund flows for the ninth consecutive quarter.

• Adjusted diluted EPS was $0.49 for Q3 2026, with adjusted net income attributable to equity owners at $32.0 million.

• Free cash flow for the quarter was $38.9 million, up 27% year-over-year.

• AGF Capital Partners AUM and fee-earning assets reached $15.7 billion, highlighting significant alternatives growth.

• Leadership at Kensington Capital Partners was strengthened with two senior hires.

Financial highlights

• Adjusted EBITDA for Q3 2026 was $48.8 million, up from $46.2 million year-over-year but down from $64.1 million sequentially.

• Net management, advisory, and administration fees were $101.0 million, up 14% year-over-year.

• Adjusted SG&A expenses rose to $63.7 million, mainly due to higher non-compensation costs.

• Adjusted EBITDA margin was 43.4% in Q3 2026, up from 43.0% year-over-year.

• Free cash flow for the quarter was $38.9 million, up from $30.6 million year-over-year.

Outlook and guidance

• Management expects continued market volatility due to global trade policy, tariffs, and geopolitical tensions.

• Net management fee rates are expected to decline by 2-3 basis points due to product mix shift toward lower-fee SMA and ETF products.

• EBITDA as a percentage of AUM has increased to 25 basis points over the last 12 months, more than double the industry average.

• Long-term investment returns are guided to 6%-8% over the next 1-5 years, down from historical 8%-10%, due to maturing legacy infrastructure assets.

• The company remains focused on expanding ETF and SMA offerings and growing its U.S. market presence.