Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with a record high of $153 billion in Bernstein Private Wealth [4][5] - Adjusted earnings per unit increased by 12% year-over-year to $0.86, while net revenues rose by 5% to $885 million [25][26] - Total adjusted operating expenses remained flat at $582 million, with total compensation and benefits expenses increasing by 6% to $439 million [26][28] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stood at $351 billion, while the retail platform AUM was $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [6][7] - Private markets generated nearly $3 billion in net inflows, reflecting improved conditions in commercial real estate [7][8] Market Data and Key Metrics Changes - The U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 2025 [11] - Emerging markets outperformed, while global developed equities underperformed compared to the U.S. [12][13] - The firm observed a rebound in client flows into American Income, indicating renewed interest in U.S. dollar-denominated assets [10] Company Strategy and Development Direction - The company aims to expand its third-party insurance asset management business, leveraging partnerships like the one with Fortitude [8][9] - A strategic alliance with Equitable enhances the firm's competitive advantage, allowing for the scaling of higher-fee private alternative strategies [9][10] - The focus remains on scalable, long-duration assets that align with sustainable organic growth and long-term profitability [31][34] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The firm is well-positioned to capture growth opportunities in Asia, particularly in taxable fixed income [47][49] - The company is committed to investing in growth initiatives while maintaining expense discipline [34][56] Other Important Information - The firm has successfully expanded its private markets platform to nearly $80 billion, representing a 17% year-over-year growth [22] - The effective tax rate for the third quarter was 6%, consistent with full-year guidance [28] - The firm is raising its full-year performance fee guidance to $130 million-$155 million, driven by strong public market performance [32] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re sidecar? - Management expressed excitement about the insurance asset management business, confirming that the Ruby Re relationship is performing as expected and that the FCA REIT sidecar is additive to their strategy [38][40] Question: What is the outlook for private credit and credit quality? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality, with manageable maturities and positive cash flow generation [42][43] Question: How is the Asia business performing post-trade conflicts? - The Asia business showed improvement, particularly in taxable fixed income, with strong engagement from institutional clients despite external noise [47][48] Question: What is the capital allocation strategy regarding buybacks? - The light buyback in the quarter was attributed to timing rather than any strategic shift, with plans to continue funding the deferred compensation plan [57] Question: How is the firm positioned for the bond reallocation? - Management indicated that they are well-positioned to benefit from the bond reallocation, particularly in Asia, with a strong distribution capability [60][61]

Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with a record high of $153 billion in Bernstein Private Wealth [4][5] - Net revenues for the third quarter were $885 million, a 5% increase year-over-year, while adjusted earnings per unit rose 12% to $0.86 [25][26] - Total performance fees decreased by $6 million to approximately $20 million [25] - Adjusted operating income increased by 15% to $303 million, reflecting strong margin expansion of 290 basis points [28][34] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stood at $351 billion, while the retail platform reached $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [5][6] - Private markets generated nearly $3 billion in net inflows, with strong origination for investment-grade corporate and ABS private placements [6][8] - Active equities experienced outflows of over $6 billion, primarily due to growth-oriented redemptions [6][7] Market Data and Key Metrics Changes - The U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in the third quarter [11] - Emerging markets outperformed, while global developed equities underperformed the U.S. [11][12] - The firm observed a rebound in client flows into American Income, reflecting renewed interest in U.S. dollar-denominated assets [10] Company Strategy and Development Direction - The company is focused on expanding its third-party insurance asset management business and enhancing its leadership in global insurance asset management [8] - A strategic alliance with Equitable is expected to provide a competitive advantage, allowing the company to scale higher-fee, longer-dated private alternative strategies [9] - The firm aims to achieve $90 to $100 billion in private markets AUM by 2027, leveraging partnerships and expanding capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The company is optimistic about capturing market share in Asia, particularly in taxable fixed income, despite geopolitical tensions [46][47] - Management emphasized the importance of innovation in retirement planning, with a focus on custom target date funds and lifetime income solutions [17][18] Other Important Information - The company is lowering its non-compensation expense projection for the full year to $600 to $610 million, reflecting enhanced operational efficiency [27] - The effective tax rate for the third quarter was 6%, in line with full-year guidance [28] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re sidecar? - Management expressed excitement about the insurance asset management business and clarified that the timing of funding for Ruby Re has not changed, with positive results expected [37][41] Question: What is the current state of credit quality in private credit? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality, with manageable maturities and positive cash flow generation [42][44] Question: How is the Asia business performing post-trade conflicts? - Management reported improvement in the Asia business, particularly in taxable fixed income, with strong engagement from institutional clients [46][47] Question: What is the capital allocation strategy regarding buybacks? - Management indicated that the light buyback this quarter was due to timing and not related to Equitable, with plans to fund deferred compensation [58] Question: How is the company positioned to benefit from bond reallocations? - Management highlighted strong demand for taxable fixed income in Asia and noted the company's success in the tax-exempt SMA space, indicating readiness to capture market share [60][61]

Financial Data and Key Metrics Changes - Firm wide assets under management (AUM) reached $860 billion, marking a new milestone [6] - Adjusted earnings per unit for Q3 were $0.86, a 12% increase year-over-year [40] - Net revenues for Q3 were $885 million, reflecting a 5% increase compared to the prior year [41] - Total adjusted operating expenses were roughly flat at $582 million compared to the prior year [42] - Adjusted operating margin rose to 34.2%, a 209 basis point increase from the prior year [51] Business Line Data and Key Metrics Changes - Bernstein Private Wealth AUM reached a record high of $153 billion, focusing on ultra high net worth clients [7] - Institutional asset management business AUM stood at $351 billion, catering to long duration capital pools [7] - Retail platform AUM was $356 billion, with strong growth in tax exempt fixed income and private alternatives [7][8] - Tax exempt inflows exceeded $4 billion, extending positive organic growth to 11 consecutive quarters [8] - Private markets generated nearly $3 billion of net inflows, reflecting improved conditions in commercial real estate [9] Market Data and Key Metrics Changes - U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 [18] - Small cap stocks outperformed large caps, with the Russell 2000 returning 12.4% [19] - Taxable fixed income sentiment improved, leading to slight net inflows in Q3 [22] - The firm is the number one retail municipal SMA manager, with a 26% annualized organic growth rate in tax exempt retail inflows [90] Company Strategy and Development Direction - The company is focused on expanding its insurance asset management business, with new partnerships and strategic investments [12] - A commitment to providing better outcomes for clients through diversified investment expertise and distribution capabilities [6] - The firm aims to achieve $90 billion to $100 billion in private markets AUM by 2027 [39] - Continued innovation in retirement solutions, including customized target date funds and lifetime income strategies [27][30] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [17] - The company is well-positioned to capture growth opportunities in Asia, particularly in taxable fixed income [67] - Management expressed confidence in the stability of credit quality despite market volatility [62] - The firm is focused on enhancing margins and operational efficiency while investing in growth initiatives [52] Other Important Information - The firm has successfully onboarded seven new insurance GA relationships across eight strategies [13] - The effective tax rate for Q3 was 6%, in line with full year guidance [44] - The company is committed to distributing 100% of adjusted earnings to unitholders [40] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re timeline? - Management expressed excitement about the insurance asset management business and clarified that the timing of funding for Ruby Re has not changed [54][56] Question: What is the outlook for private credit and credit quality? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality [62] Question: How is the Asia business performing post-Liberation Day? - Management reported improvement in the Asia business, particularly in taxable fixed income, and noted strong engagement from institutional clients [67] Question: Can you clarify the capital allocation strategy regarding buybacks? - Management indicated that the light buyback activity was due to timing and not related to the Equitable conversion [82] Question: What is the outlook for bond reallocation and its impact on performance? - Management highlighted ongoing appetite for taxable fixed income and expressed confidence in capturing market share through innovative products [88]

3Q25 Earnings Review 2 • The pipeline of new institutional mandates not yet funded: Before they are funded, institutional mandates do not represent legally binding commitments to fund and, accordingly, the possibility exists that not all mandates will be funded in the amounts and at the times currently anticipated, or that mandates ultimately will not be funded. • The achievement of our Private Markets AUM target: Our ability to achieve our private markets AUM target is subject to the current market environ ...

Financial Performance - GAAP net income per unit for Q3 2025 was $0.79, down 29.5% from $1.12 in Q3 2024[19] - Adjusted net income per unit increased by 11.7% to $0.86 compared to $0.77 in Q3 2024[27] - Third quarter net revenues were $1.137 billion, reflecting a 4.8% increase from $1.085 billion in Q3 2024[14] - Total revenues for Q3 2025 were $1,152.35 million, representing a 4.1% increase compared to $1,106.70 million in Q3 2024[40] - Net income attributable to AB Unitholders for Q3 2025 was $259.26 million, a decrease of 25.1% from $345.97 million in Q3 2024[40] - The operating income for Q3 2025 was $283.48 million, down 22.4% from $365.28 million in Q3 2024[40] - The company reported a net income of $73,751,000 for the three months ended September 30, 2025, up from $70,248,000 in the previous quarter[47] - Adjusted net income for the same period was $79,446,000, compared to $83,878,000 in the prior quarter, indicating a decrease of 5.2%[47] Assets Under Management - Total assets under management (AUM) reached $860.1 billion, a 6.7% increase from $805.9 billion in Q3 2024[6] - The average assets under management increased to $840.8 billion as of September 30, 2025, up from $785.9 billion a year earlier[42] - Ending assets under management as of September 30, 2025, were $860.1 billion, an increase from $805.9 billion a year earlier[42] - The total assets under management (AUM) at the end of the period were $860,100,000, a decrease from $829,100,000 at the beginning of the period[44] Cash Distributions - Cash distribution per unit of $0.86 is scheduled for payment on November 20, 2025[3] - The distribution per unit for Q3 2025 was $0.86, an increase of 11.7% compared to $0.77 in Q3 2024[41] - The total cash paid for AB Holding Units purchased in Q3 2025 was $4.1 million, significantly lower than $38.6 million in Q3 2024[30] Net Flows and Outflows - The firm experienced $2.3 billion in total net outflows in Q3 2025, an improvement from $6.7 billion in Q2 2025[7] - Institutional channel net outflows were $1.8 billion, while retail channel net outflows improved to $1.7 billion from $4.8 billion in Q2 2025[9] - The net cash flows for the total distribution channels in Q3 2025 were negative at $(16.9) million, reflecting redemptions and terminations[43] - The company experienced net outflows of $(2,300,000) in total, with actively managed equity experiencing outflows of $(6,400,000)[45] - Investment performance contributed $33,300,000 to net flows, with a total of $281,300,000 in equity at the end of the period[44] Employee Metrics - As of September 30, 2025, AllianceBernstein had 4,457 employees, an increase from 4,292 employees as of September 30, 2024[28] - Employee compensation and benefits for Q3 2025 totaled $450.79 million, a 6.1% increase from $424.89 million in Q3 2024[40] Adjusted Operating Metrics - Adjusted operating income rose 15% to $302 million, with an adjusted operating margin of 34.2%, up 290 basis points from 31.3% in Q3 2024[26] - Adjusted net revenues for the same period were $884,672,000, compared to $844,434,000 in the prior quarter, reflecting a growth of 4.0%[46] - The adjusted operating margin for the three months was 34.2%, compared to 32.3% in the previous quarter[46] - Adjusted operating income reflects the offset from economically hedging market exposure of long-term incentive compensation-related investments[57] - Adjusted net revenues exclude equity income or loss from equity method investments, as these do not represent core business operations[53] Other Notable Events - The company aims to increase private markets AUM to between $90 billion and $100 billion by 2027[2] - The company identified an error in billing practices by a third-party service provider, leading to reimbursement of overbilled amounts, which were excluded from adjusted operating income[62] - The board granted equity awards to executives, which are recorded as compensation expense but excluded from non-GAAP measures due to their non-cash nature[58] - Effective April 1, 2024, the company will record all income or loss associated with joint ventures as equity method investment income, excluding these amounts from adjusted operating income[61] - The company aims to fully divest from joint ventures, considering related income or loss as temporary and non-core[61]

[Part I. Financial Information](index=3&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed financial statements and related disclosures for the reporting period [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed financial statements and accompanying notes [Condensed Statements of Financial Condition](index=4&type=section&id=Condensed%20Statements%20of%20Financial%20Condition) This statement provides a snapshot of the company's assets, liabilities, and partners' capital at specific points in time Condensed Statements of Financial Condition (in thousands) | Metric | September 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------------- | :------------------ | | Investment in AB | $1,178,765 | $2,034,632 | | Total assets | $1,178,765 | $2,034,632 | | Other liabilities | $1,870 | $2,770 | | Total liabilities | $1,870 | $2,770 | | Total partners' capital | $1,176,895 | $2,031,862 | | Total liabilities and partners' capital | $1,178,765 | $2,034,632 | - Total assets decreased by approximately **$855.87 million** from December 31, 2024, to September 30, 2025, primarily due to a decrease in Investment in AB[13](index=13&type=chunk) [Condensed Statements of Income](index=5&type=section&id=Condensed%20Statements%20of%20Income) This statement details the company's revenues, expenses, and net income over specific reporting periods Condensed Statements of Income (in thousands, except per unit amounts) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Equity in net income attributable to AB Unitholders | $81,412 | $136,374 | $242,995 | $345,360 | | Income taxes | $7,661 | $9,179 | $24,962 | $27,420 | | Net income | $73,751 | $127,195 | $218,033 | $317,940 | | Net income per Unit | $0.79 | $1.12 | $2.08 | $2.77 | - Net income for the three months ended September 30, 2025, decreased by **42.0% YoY**, and for the nine months ended September 30, 2025, decreased by **31.4% YoY**[15](index=15&type=chunk) - Net income per Unit for the three months ended September 30, 2025, decreased by **29.5% YoY**, and for the nine months ended September 30, 2025, decreased by **24.9% YoY**[15](index=15&type=chunk) [Condensed Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income components, reflecting total comprehensive earnings Condensed Statements of Comprehensive Income (in thousands) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | $73,751 | $127,195 | $218,033 | $317,940 | | Other comprehensive income | $1,049 | $7,588 | $23,599 | $7,121 | | Comprehensive income | $74,800 | $134,783 | $241,632 | $325,061 | - Comprehensive income for the three months ended September 30, 2025, decreased by **44.5% YoY**, and for the nine months ended September 30, 2025, decreased by **25.7% YoY**[18](index=18&type=chunk) [Condensed Statements of Changes in Partners' Capital](index=7&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Partners%27%20Capital) This statement outlines changes in partners' capital, including net income, distributions, and other equity transactions Condensed Statements of Changes in Partners' Capital (in thousands) | Category | Sep 30, 2025 (End of Period) | Sep 30, 2024 (End of Period) | | :---------------------------------------------------------------- | :--------------------------- | :--------------------------- | | General Partner's Capital | $1,351 | $1,384 | | Limited Partners' Capital | $1,224,384 | $2,165,060 | | AB Holding Units held by AB for long-term incentive compensation plans | $(31,015) | $(33,390) | | Accumulated Other Comprehensive (Loss) | $(17,825) | $(34,923) | | Total Partners' Capital | $1,176,895 | $2,098,131 | - Total Partners' Capital decreased by approximately **$921.24 million** from September 30, 2024, to September 30, 2025, primarily due to the retirement of AB Holding Units in connection with the EQH Amended Exchange Agreement[20](index=20&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) This statement reports cash inflows and outflows from operating, investing, and financing activities Condensed Statements of Cash Flows (in thousands) - Nine Months Ended September 30 | Metric | 2025 | 2024 | | :------------------------------------------ | :--------- | :--------- | | Net income | $218,033 | $317,940 | | Cash distributions received from AB | $300,993 | $281,164 | | Net cash provided by operating activities | $275,131 | $253,021 | | Cash distributions to Unitholders | $(274,324) | $(253,923) | | Net cash used in financing activities | $(275,131) | $(253,021) | | Non-cash financing activities: Retirement of AB Holding Units in connection with EQH Amended Exchange Agreement | $(820,188) | $0 | - Net cash provided by operating activities increased by **$22.11 million (8.7%)** for the nine months ended September 30, 2025, compared to the same period in 2024, driven by higher cash distributions received from AB[23](index=23&type=chunk) - Net cash used in financing activities increased by **$22.11 million (8.7%)** for the nine months ended September 30, 2025, primarily due to higher cash distributions to Unitholders[23](index=23&type=chunk) [Notes to Condensed Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) This section provides additional detailed information and explanations for the condensed financial statements [1. Business Description, Organization and Basis of Presentation](index=9&type=section&id=1.%20Business%20Description%2C%20Organization%20and%20Basis%20of%20Presentation) This note describes AB Holding's business, organizational structure, and the basis for financial statement presentation - AB Holding's primary income and cash flow source is its investment in AB limited partnership interests[26](index=26&type=chunk) - AB provides diversified investment management and related services globally, including institutional, retail, and private wealth management, with expertise in various equity, fixed income, alternative, and multi-asset strategies[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) AB Ownership Structure as of September 30, 2025 | Holder | Percentage of General and Limited Partnership Interests | | :----------------------- | :---------------------------------------------------- | | EQH and its subsidiaries | 68.5 % | | AB Holding | 30.8 % | | Unaffiliated holders | 0.7 % | | **Total** | **100.0 %** | - On July 10, 2025, AB entered into an Amended Exchange Agreement with EQH, increasing available AB Units for exchange and resulting in the retirement of **19,682,946 AB Holding Units** held by EQH[32](index=32&type=chunk)[33](index=33&type=chunk) - Post-exchange, EQH holds approximately a **68.5% economic interest** in AB[33](index=33&type=chunk) - AB Holding accounts for its investment in AB using the equity method[35](index=35&type=chunk) [2. Cash Distributions](index=11&type=section&id=2.%20Cash%20Distributions) This note details the company's policy and declared amounts for cash distributions to Unitholders - AB Holding is required to distribute all of its Available Cash Flow to Unitholders, defined as cash distributions received from AB minus amounts retained by the General Partner for business use (e.g., taxes)[37](index=37&type=chunk) - On October 23, 2025, a distribution of **$0.86 per Unit** was declared for the three months ended September 30, 2025, payable on November 20, 2025[39](index=39&type=chunk) [3. Long-term Incentive Compensation Plans](index=13&type=section&id=3.%20Long-term%20Incentive%20Compensation%20Plans) This note describes the company's long-term incentive compensation plans, including unit awards and repurchases - AB grants restricted AB Holding Units to employees and Eligible Directors under unfunded, non-qualified long-term incentive compensation plans[40](index=40&type=chunk) AB Holding Unit Repurchases (in millions) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total amount of AB Holding Units Purchased | 0.1 | 1.1 | 1.3 | 2.1 | | Total Cash Paid for AB Holding Units Purchased | $4.1 | $38.6 | $47.8 | $71.7 | | Open Market Purchases of AB Holding Units Purchased | 0.1 | 1.1 | 1.1 | 1.8 | | Total Cash Paid for Open Market Purchases of AB Holding Units | $3.9 | $38.6 | $42.3 | $60.1 | - During the first nine months of 2025, AB awarded **1.6 million restricted AB Holding Unit awards**, compared to **1.2 million** in 2024[43](index=43&type=chunk) [4. Net Income per Unit](index=14&type=section&id=4.%20Net%20Income%20per%20Unit) This note explains the calculation of net income per unit and diluted net income per unit - Net income per Unit is calculated by dividing net income by the weighted average number of units outstanding[44](index=44&type=chunk) - Diluted net income per Unit is equivalent as there are no dilutive instruments[44](index=44&type=chunk) Net Income per Unit (in thousands, except per unit amounts) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | $73,751 | $127,195 | $218,033 | $317,940 | | Weighted average Units outstanding | 92,816 | 114,042 | 104,575 | 114,592 | | Net income per Unit | $0.79 | $1.12 | $2.08 | $2.77 | [5. Investment in AB](index=14&type=section&id=5.%20Investment%20in%20AB) This note details the changes in AB Holding's investment in AB, accounted for using the equity method Changes in AB Holding's Investment in AB (in thousands) - Nine Months Ended September 30, 2025 | Item | Amount | | :---------------------------------------------------------------- | :----------- | | Investment in AB as of December 31, 2024 | $2,034,632 | | Equity in net income attributable to AB Unitholders | $242,995 | | Changes in accumulated other comprehensive income | $23,599 | | Cash distributions received from AB | $(300,993) | | Capital contributions to AB | $807 | | AB Holding Units retired | $(43,313) | | AB Holding Units issued for long-term incentive compensation plans | $48,878 | | Retirement of AB Holding Units in connection with EQH Amended Exchange Agreement | $(820,188) | | Change in AB Holding Units held by AB for long-term incentive compensation plans | $(7,652) | | Investment in AB as of September 30, 2025 | $1,178,765 | [6. Units Outstanding](index=14&type=section&id=6.%20Units%20Outstanding) This note provides information on changes in the number of AB Holding Units outstanding during the period Changes in AB Holding Units Outstanding - Nine Months Ended September 30, 2025 | Item | Number of Units | | :---------------------------------------------------------------- | :-------------- | | Outstanding as of December 31, 2024 | 110,530,329 | | Units issued | 1,296,834 | | Units retired | (20,833,912) | | Outstanding as of September 30, 2025 | 90,993,251 | - The significant reduction in units retired includes **19,682,946 AB Holding Units** retired due to the Amended Exchange Agreement with EQH on July 10, 2025[47](index=47&type=chunk) [7. Income Taxes](index=14&type=section&id=7.%20Income%20Taxes) This note outlines the company's income tax structure, applicable taxes, and effective tax rates - AB Holding is a publicly-traded partnership (PTP) and is not subject to federal or state corporate income taxes, but is subject to a **4.0% New York City unincorporated business tax (UBT)** and a **3.5% federal tax** on partnership gross income from active trade or business[47](index=47&type=chunk) Income Taxes (in thousands) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | % Change | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | % Change | | :-------------------------- | :------------------------------ | :------------------------------ | :------- | :----------------------------- | :----------------------------- | :------- | | Federal income taxes | $7,424 | $8,924 | (16.8)% | $24,293 | $26,728 | (9.1)% | | State income taxes | $237 | $255 | (7.1)% | $669 | $692 | (3.3)% | | Total income taxes | $7,661 | $9,179 | (16.5)% | $24,962 | $27,420 | (9.0)% | | Effective tax rate | 9.4 % | 6.7 % | 40.3% | 10.3 % | 7.9 % | 30.4% | - The effective tax rate increased to **9.4%** for the three months ended September 30, 2025 (from 6.7% in 2024), and to **10.3%** for the nine months ended September 30, 2025 (from 7.9% in 2024)[49](index=49&type=chunk) [8. Commitments and Contingencies](index=15&type=section&id=8.%20Commitments%20and%20Contingencies) This note discloses potential future obligations and legal matters that could impact the company's financial position - AB may face regulatory inquiries, administrative proceedings, and litigation, with potential for significant damages, though management believes the outcome will not materially affect operations, financial condition, or liquidity[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses AB Holding's financial condition and results of operations, primarily driven by its investment in AB Key Financial Results (in thousands, except per unit amounts) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | % Change | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | % Change | | :---------------------------------------- | :------------------------------ | :------------------------------ | :------- | :----------------------------- | :----------------------------- | :------- | | Net income of AB Holding | $73,751 | $127,195 | (42.0)% | $218,033 | $317,940 | (31.4)% | | Net income per AB Holding Unit | $0.79 | $1.12 | (29.5)% | $2.08 | $2.77 | (24.9)% | | Distribution declared per AB Holding Unit | $0.86 | $0.77 | 11.7% | $2.42 | $2.21 | 9.5% | - AB Holding's net income decreased by **$53.4 million** for the three months and **$99.9 million** for the nine months ended September 30, 2025, primarily due to a lower weighted average equity ownership interest in AB and a prior period gain recognized in 2024 related to the AB CarVal acquisition[54](index=54&type=chunk) - The effective tax rate for AB Holding increased to **9.4%** for Q3 2025 (from 6.7% in Q3 2024) and to **10.3%** for the nine months ended September 30, 2025 (from 7.9% in 2024)[55](index=55&type=chunk) Adjusted Net Income and Per Unit Impact (in thousands, except per Unit amounts) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income, GAAP basis | $73,751 | $127,195 | $218,033 | $317,940 | | Impact on AB Holding's net income of AB non-GAAP adjustments | $5,695 | $(39,515) | $32,488 | $(65,198) | | Adjusted net income | $79,446 | $87,680 | $250,521 | $252,742 | | Net income per AB Holding Unit, GAAP basis | $0.79 | $1.12 | $2.08 | $2.77 | | Impact of AB non-GAAP adjustments | $0.07 | $(0.35) | $0.32 | $(0.56) | | Adjusted net income per AB Holding Unit | $0.86 | $0.77 | $2.40 | $2.21 | - Net cash provided by operating activities increased by **$22.1 million** to **$275.1 million** for the nine months ended September 30, 2025, primarily due to higher cash distributions received from AB[62](index=62&type=chunk) - Net cash used in financing activities increased by **$22.1 million** to **$275.1 million** for the nine months ended September 30, 2025, mainly due to higher cash distributions to Unitholders[63](index=63&type=chunk) - Management believes AB Holding has sufficient resources to meet financial obligations, as its cash inflow is entirely from AB distributions, which are then distributed to Unitholders (net of taxes)[64](index=64&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in AB Holding's market risk during the third quarter of 2025 compared to the information provided in the Form 10-K for the year ended December 31, 2024 - No material changes in market risk during Q3 2025[69](index=69&type=chunk) [Item 4. Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting during the third quarter of 2025 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of the end of the reporting period[71](index=71&type=chunk) - No material changes in internal control over financial reporting occurred during the third quarter of 2025[72](index=72&type=chunk) [Part II. Other Information](index=21&type=section&id=Part%20II%20OTHER%20INFORMATION) This section provides additional non-financial disclosures and other required information [Item 1. Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the condensed financial statements for details on legal proceedings, indicating no new material information beyond what is already disclosed - Refer to Note 8 of the condensed financial statements for information on legal proceedings[75](index=75&type=chunk) [Item 1A. Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in AB Holding's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to risk factors during Q3 2025[76](index=76&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's equity security transactions, including repurchases of AB Holding Units under Rule 10b5-1 plans and the significant retirement of units related to the EQH Amended Exchange Agreement - No unregistered sales of AB Holding Units by AB Holding occurred during the period[77](index=77&type=chunk) - AB may adopt future Rule 10b5-1 plans for open-market purchases of AB Holding Units for incentive compensation obligations and other corporate purposes[78](index=78&type=chunk) Issuer Purchases of Equity Securities - Third Quarter 2025 | Period | Total Number of AB Holding Units Purchased | Average Price Paid Per AB Holding Unit, Net of Commissions | | :--------------- | :--------------------------------------- | :--------------------------------------------------------- | | 7/1/25 - 7/31/25 | 19,686,771 | $42.01 | | 8/1/25 - 8/31/25 | — | — | | 9/1/25 - 9/30/25 | 103,004 | $37.89 | | **Total** | **19,789,775** | **$38.04** | - The total units purchased include **19,682,946 AB Holding Units** retired in connection with the EQH Amended Exchange Agreement on July 10, 2025, which was a unit-for-unit exchange without cash consideration[80](index=80&type=chunk) - During the third quarter of 2025, AB purchased **103,004 AB Holding Units** on the open market under a Rule 10b5-1 plan for incentive compensation awards[80](index=80&type=chunk) - AB also purchased and retired **1,100 AB Units** in private transactions during the third quarter of 2025[81](index=81&type=chunk) [Item 3. Defaults Upon Senior Securities](index=22&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - No defaults upon senior securities[82](index=82&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There were no mine safety disclosures required for the reporting period - No mine safety disclosures[83](index=83&type=chunk) [Item 5. Other Information](index=22&type=section&id=Item%205.%20Other%20Information) This section discloses a Rule 10b5-1 trading arrangement adopted by CEO Seth Bernstein, under which 31,694 AB units were sold during the third quarter of 2025, and the plan was subsequently terminated - CEO Seth Bernstein adopted a Rule 10b5-1 trading arrangement on May 21, 2025, effective August 19, 2025, and ending November 17, 2025[84](index=84&type=chunk) - A total of **31,694 AB units** were sold under the plan during the third quarter of 2025, after which the plan was terminated[85](index=85&type=chunk) - No other directors or officers adopted or terminated 10b5-1 or non-10b5-1 trading arrangements during the third quarter of 2025[85](index=85&type=chunk) [Item 6. Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including certifications under Sarbanes-Oxley Act, the AllianceBernstein L.P. Quarterly Report, and XBRL-related documents - Exhibits include certifications (31.1, 31.2, 32.1, 32.2), AllianceBernstein L.P. Quarterly Report (99.1), and various XBRL documents (101.INS, 101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF, 104)[86](index=86&type=chunk) [Signature](index=24&type=section&id=SIGNATURE) This section contains the official signatures certifying the accuracy and completeness of the report - The report was signed on October 23, 2025, by Thomas Simeone, Chief Financial Officer, and Alexis Luckey, Chief Accounting Officer, on behalf of AllianceBernstein Holding L.P.[89](index=89&type=chunk)[90](index=90&type=chunk)

Core Insights - AllianceBernstein reported strong financial and operational results for Q3 2025, with a focus on strategic objectives and partnerships [2][3] - The firm experienced net inflows of $1.7 billion, excluding $4.0 billion outflows related to a reinsurance transaction, driven by organic growth in tax-exempt and private alternative strategies [2][3] - The adjusted net income per unit increased by 12% to $0.86, while cash distribution per unit also rose by 11.7% to $0.86 [2][26] Financial Performance - Q3 2025 net revenues reached $1.137 billion, a 4.8% increase from Q3 2024, primarily due to higher investment advisory base fees [13][14] - Operating income for Q3 2025 was $283 million, down 22% from the previous year, with an operating margin of 24.3%, a decrease of 890 basis points [17] - Adjusted operating income increased by 15% to $302 million, with an adjusted operating margin of 34.2%, up 290 basis points from the prior year [25] Assets Under Management (AUM) - Total AUM as of September 30, 2025, was $860.1 billion, up $31.0 billion or 4% from June 30, 2025, and up $54.2 billion or 7% from September 30, 2024 [6][7] - The firm’s private markets AUM approached $80 billion, with a target of $90 to $100 billion by 2027 [2][3] Net Flows and Client Segments - Total net outflows for Q3 2025 were $2.3 billion, an improvement from $6.7 billion in Q2 2025 [8] - Retail channel net outflows decreased to $1.7 billion from $4.8 billion in the previous quarter, while institutional channel outflows were $1.8 billion [10][9] - The private wealth channel saw net inflows of $1.2 billion, marking its strongest organic growth in 10 quarters [3] Market Context - Global equity and fixed income markets showed positive performance in Q3 2025, with the S&P 500 Total Return at 8.1% [4][5] - The firm’s performance reflects a broader market recovery and improved demand dynamics in retail and institutional segments [3][4]

Earnings Overview - Earnings estimates have increased over the last three months, indicating stronger-than-expected performance in the third quarter compared to the second quarter [2][3] - Notable performances from banks, healthcare, Coca-Cola, and General Motors suggest a broader economic strength beyond just the AI sector [2][3] Consumer Spending - The US consumer remains robust, with card spending data from banks indicating an acceleration in spending during the third quarter [4] - Mastercard, Visa, and American Express are positioned well, with their service segments growing in the high teens percentage [5] Schwab's Position - Schwab manages over $10 trillion in assets, benefiting from increased retail investor engagement leading to higher trading activity and margin borrowing [6][7] - The company has resolved previous cash sorting issues, maintaining borrowings under $15 billion, allowing for shareholder returns through buybacks [7] - Schwab is entering the cryptocurrency trading market, which is expected to be a high-margin business opportunity [8] Amazon's Growth Potential - Amazon is expected to see growth acceleration in AWS as they increase capacity by early 2026, addressing current constraints [9] - Innovations in robotics for retail operations are anticipated to lower delivery costs, enhancing competitiveness [10] - Amazon's stock performance has been flat year-to-date, presenting a potential undervaluation compared to growth prospects [11]

Core Insights - AllianceBernstein L.P. plans to expand its insurance presence in Asia through an equity investment in Fortitude Carlyle Asia Reinsurance, Ltd. [1][2] - The investment positions AllianceBernstein as a lead investor in FCA Re, which focuses on Asian liabilities and will manage private alternative assets for the reinsurance entity [2][3] - The partnership aims to enhance innovative solutions for clients in the Asian market, reflecting AllianceBernstein's commitment to growth in the region [3] Company Overview - AllianceBernstein has over 40 years of experience serving insurance companies and currently manages nearly $190 billion in insurance-related assets as of June 30, 2025 [3][4] - As of September 30, 2025, AllianceBernstein's total assets under management reached $860 billion [4] Strategic Goals - The investment in FCA Re is part of AllianceBernstein's broader growth strategy in the Asia Insurance Market, reinforcing its long-term commitment to the region [3]

Core Viewpoint - AB Science has successfully completed a private placement raising EUR 2.8 million to finance the clinical development of its drug candidate AB8939 for acute myeloid leukemia (AML) [2][4]. Use of Proceeds - The net proceeds from the private placement will primarily be used to complete phase 1 of the AB8939 program and to initiate an expansion study involving approximately 15 AML patients [4][5]. Financial Impact - The private placement strengthens the company's cash position, allowing it to meet its financing needs for 2025 and beyond [5]. Private Placement Details - The private placement involved the issuance of 2,477,877 new ordinary shares, each accompanied by a share warrant (BSA), without preferential subscription rights [6][7]. - The issue price of one ABSA is set at EUR 1.13, reflecting a 24.99% discount to the volume-weighted average price over the preceding three trading days [8][9]. Shareholding Structure - Post-private placement, the company's total share capital will amount to EUR 729,474.72, consisting of 66,184,793 ordinary shares, with potential dilution from the exercise of BSAs [13][15]. Trading Information - The new shares are expected to be admitted to trading on Euronext Paris on October 22, 2025, and will be assimilated to existing shares [18]. Company Overview - AB Science specializes in the research, development, and commercialization of protein kinase inhibitors, targeting diseases with high unmet medical needs [25]. - The lead compound, masitinib, is already registered for veterinary use and is being developed for human medicine across various disease areas [25]. Drug Candidate Information - AB8939 is a synthetic microtubule-destabilizing drug candidate with broad anticancer activity, showing potential to overcome drug resistance commonly seen in chemotherapy [24].