01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Affiliated Managers Group, Inc. (AMG) reported strong financial performance for the three months ended March 31, 2026, with Net Income attributable to controlling interest soaring by 52% to $110.4 milliona, or $3.84 per diluted share, compared to $72.4 million, or $2.20 per diluted share, in the prior year period.
This growth was driven by a significant 76% increase in revenue from equity method Affiliates, contributing to a 96% rise in Equity Method Income (Net). Consolidated revenue also saw a healthy 10% increase. The company highlighted substantial growth in Assets Under Management (AUM), which reached $882.0 billionb, a 24% increase year-over-year, driven by strong inflows into alternative strategies, particularly private markets and liquid alternatives.
Management's Discussion and Analysis indicates a strategic focus on these in-demand areas, positioning AMG to benefit from industry growth trends with a diversified business profile. While overall expenses rose by 11%c, driven by compensation and related expenses (up 25%) and SG&A (up 13%), a notable decrease in intangible amortization and impairments (down 41%) provided a significant tailwind to profitability.
The company also successfully navigated the redemption and cash settlement of its junior convertible securities, incurring associated expenses but strengthening its capital structure. AMG's liquidity remains robust, supported by operating cash flows and a significant revolving credit facility.
02—Key points
Key Highlights
- Net Income attributable to controlling interest increased by 52% to $110.4 million for the three months ended March 31, 2026, compared to $72.4 million in the prior year.
- Diluted Earnings Per Share (EPS) rose to $3.84 from $2.20 year-over-year, reflecting improved profitability.
- Total Assets Under Management (AUM) grew by 24% to $882.0 billion as of March 31, 2026, driven by strong client demand for alternative strategies.
- Consolidated revenue increased by 10% to $544.9 million, while revenue from equity method Affiliates surged by 76% to $1,365.0 million.
- A significant decrease in Intangible amortization and impairments (down 41%) positively impacted net income.
- The company successfully completed the redemption and cash settlement of its junior convertible securities, managing associated costs.
- Operating cash flow increased by 44% to $299.3 million for the quarter, indicating strong operational cash generation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $544.90M$496.60M | +9.7% |
| SG&A Expenses | $107.40M$94.70M | +13.4% |
| Operating Expenses | $505.90M$456.90M | +10.7% |
| Net Income | $110.40M$72.40M | +52.5% |
| EPS (Basic) | $4.12$2.48 | +66.1% |
| EPS (Diluted) | $3.84$2.20 | +74.5% |
| Shares Outstanding (Basic) | 26.80M29.20M | −8.2% |
| Shares Outstanding (Diluted) | 27.50M32.60M | −15.6% |
05—Questions
Frequently Asked Questions
What were the key drivers of AMG's earnings growth in the first quarter of 2026?
AMG's earnings growth was primarily driven by a substantial increase in Equity Method Income (Net), which rose by 96% to $147.4 million. This was fueled by a 76% increase in revenue from equity method Affiliates and strong performance-based fees. Additionally, a significant decrease in intangible amortization and impairments by 41% also contributed positively to the bottom line.
How has AMG's Assets Under Management (AUM) trended, and what strategies are performing well?
AMG's AUM experienced robust growth, increasing by 24% to $882.0 billion as of March 31, 2026. The company noted strong client demand for alternative strategies, with notable inflows into private markets and liquid alternatives. While equity strategies saw net outflows, aligned with industry trends, management is strategically positioning AMG to capitalize on the growth in in-demand alternative strategies.
What was the impact of the junior convertible securities settlement on the company's financials?
AMG settled its junior convertible securities in cash for approximately $514.6 million in January 2026. This settlement resulted in an incremental expense of $9.3 million related to the forward sale contract and a cash tax liability of approximately $56 million due to the recapture of excess interest expense deductions. While these were significant costs, the settlement resolved a substantial debt obligation.
How did consolidated expenses change, and what were the major contributing factors?
Total consolidated expenses increased by 11% to $505.9 million for the three months ended March 31, 2026. The primary drivers of this increase were a 25% rise in compensation and related expenses, largely due to a $33.7 million increase in Affiliate equity expense, and a 13% increase in selling, general, and administrative expenses. These increases were partially offset by a significant 41% decrease in intangible amortization and impairments.
06—Continue