Fiera Capital (FSZ) Q2 2025 earnings summary

Executive summary

• Assets under management (AUM) ended Q2 2025 at $160.5 billion, down 0.7% from March 31, 2025, due to negative net organic growth and the wind-down of Canadian Equity Small and Microcap strategies, but flat excluding these effects, with robust new mandates and market gains partly offsetting outflows and FX headwinds.

• Public Markets AUM was $139.6 billion, with $1.4 billion in new mandates—the strongest gross flows in nine quarters—mainly in equities; Private Markets AUM reached $20.9 billion, up 6% year-to-date, driven by a UK real estate platform acquisition.

• Private Markets contributed 36% of total revenues year-to-date, up from 28% three years ago, and delivered positive absolute returns in Q2, with one-year returns ranging from 5% to 12%.

• Private wealth AUM was $13.7 billion, down 3% in the quarter, impacted by outflows from subadvised and fixed income mandates.

• SG&A expenses decreased 3% year-over-year, reflecting organizational streamlining and efficiency improvements.

Financial highlights

• Total revenues for Q2 2025 were $163 million, down slightly from $165 million in Q2 2024, mainly due to lower base management fees in Public Markets, partially offset by higher fees in Private Markets.

• Base management fees were $148 million, down 1% year-over-year; Private Markets base management fees rose 8% to $49 million.

• Adjusted EBITDA was $45.7 million (28.0% margin), up 1% year-over-year and 5.3% sequentially, driven by lower sub-advisory fees and SG&A expenses.

• Adjusted net earnings were $27.2 million ($0.24 per diluted share), up from $25 million ($0.23) last year; net earnings attributable to shareholders were $3.8 million ($0.03 per diluted share), down from $5 million ($0.04) last year, impacted by restructuring charges.

• Last 12 months' free cash flow was $75 million, down from $87 million in the prior quarter, mainly due to restructuring charges and timing of receivables.

Outlook and guidance

• Continued focus on growing Private Markets and enhancing product mix to drive revenue and margin expansion, supported by a strong pipeline of committed, undeployed capital.

• Expectation for net debt to decrease as savings from lower dividends are redirected to debt repayment and higher free cash flow is generated in H2 2025.

• Anticipation of ongoing strong demand for Private Market solutions, especially in agriculture and real estate, with global expansion plans underway.

• Margin expansion targeted through revenue growth in Private Markets and ongoing cost discipline.

• Management remains focused on executing strategic priorities, delivering consistent investment performance, and driving long-term organic growth.