10-QPeriod: Q1 FY2026

AFFILIATED MANAGERS GROUP, INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:AMGMGRBMGRMGRDMGRE

Summary

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 million, 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 billion, 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%, 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.

Financial Highlights

35 data points
Beta

Revenue

$544.90M

Net Income

$110.40M

20.3% Net Margin

EPS (Diluted)

$3.84

Total Assets

$9.40B

Cash & Equivalents

$376.10M

Free Cash Flow

$295.50M

Financial Statements
Beta
Revenue$544.90M
SG&A Expenses$107.40M
Operating Expenses$505.90M
Net Income$110.40M
EPS (Basic)$4.12
EPS (Diluted)$3.84
Shares Outstanding (Basic)26.80M
Shares Outstanding (Diluted)27.50M

Key Highlights

  • 1Net 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.
  • 2Diluted Earnings Per Share (EPS) rose to $3.84 from $2.20 year-over-year, reflecting improved profitability.
  • 3Total Assets Under Management (AUM) grew by 24% to $882.0 billion as of March 31, 2026, driven by strong client demand for alternative strategies.
  • 4Consolidated revenue increased by 10% to $544.9 million, while revenue from equity method Affiliates surged by 76% to $1,365.0 million.
  • 5A significant decrease in Intangible amortization and impairments (down 41%) positively impacted net income.
  • 6The company successfully completed the redemption and cash settlement of its junior convertible securities, managing associated costs.
  • 7Operating cash flow increased by 44% to $299.3 million for the quarter, indicating strong operational cash generation.

Frequently Asked Questions

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.

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.

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.

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.