[Part I - Financial Information](index=4&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents AllianceBernstein Holding L.P.'s unaudited condensed financial statements for the period ended June 30, 2025, showing decreases in total assets and net income compared to prior periods [Condensed Statements of Financial Condition](index=4&type=section&id=Condensed%20Statements%20of%20Financial%20Condition) Total assets decreased to **$1.98 billion** as of June 30, 2025, from **$2.03 billion** at December 31, 2024, primarily due to a reduction in the AB investment Condensed Statement of Financial Condition (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | **$1,982,072** | **$2,034,632** | | Total liabilities | $449 | $2,770 | | Total partners' capital | $1,981,623 | $2,031,862 | | **Total liabilities and partners' capital** | **$1,982,072** | **$2,034,632** | [Condensed Statements of Income](index=5&type=section&id=Condensed%20Statements%20of%20Income) Net income significantly decreased for both the three and six months ended June 30, 2025, reaching **$70.2 million** and **$144.3 million** respectively Condensed Statements of Income (in thousands, except per unit amounts) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Equity in net income attributable to AB Unitholders | $78,830 | $122,705 | $161,583 | $208,986 | | **Net income** | **$70,248** | **$113,523** | **$144,282** | **$190,745** | | **Net income per Unit** | **$0.64** | **$0.99** | **$1.31** | **$1.66** | [Condensed Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the three and six months ended June 30, 2025, was **$80.0 million** and **$166.8 million** respectively, showing a decrease from prior-year periods Condensed Statements of Comprehensive Income (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Net income | $70,248 | $113,523 | $144,282 | $190,745 | | Other comprehensive income (loss) | $9,779 | $3,692 | $22,550 | $(467) | | **Comprehensive income** | **$80,027** | **$117,215** | **$166,832** | **$190,278** | [Condensed Statements of Changes in Partners' Capital](index=7&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Partners%27%20Capital) Total partners' capital decreased from **$2.09 billion** to **$1.98 billion** over six months, primarily due to cash distributions and unit retirements Changes in Total Partners' Capital - Six Months Ended June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Balance, beginning of period | $2,031,862 | | Net income | $144,282 | | Other comprehensive income | $22,550 | | Cash distributions to Unitholders | $(205,229) | | Retirement of AB Holding Units | $(39,388) | | Issuance of AB Holding Units | $39,565 | | Other changes | $(12,019) | | **Balance, end of period** | **$1,981,623** | [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to **$203.9 million** for the six months ended June 30, 2025, matching cash used in financing activities Condensed Statements of Cash Flows - Six Months Ended June 30 (in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $203,922 | $171,959 | | Net cash used in financing activities | $(203,922) | $(171,959) | | **Change in cash and cash equivalents** | **$—** | **$—** | [Notes to Condensed Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) This section details the company's business, accounting policies, and financial statement items, including its structure, distribution policies, and a subsequent exchange agreement - AB Holding's primary income and cash flow source is its investment in **AB limited partnership interests**, with AB providing diversified investment management services[28](index=28&type=chunk)[29](index=29&type=chunk) - A distribution of **$0.76 per Unit** was declared on July 24, 2025, for the second quarter of 2025[38](index=38&type=chunk) - Post-quarter, on July 10, 2025, AB and EQH exchanged **19,682,946 units**, resulting in EQH holding **68.6%** and AB Holding **30.8%** economic interest in AB[56](index=56&type=chunk)[57](index=57&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant decrease in net income for the three and six months ended June 30, 2025, attributing it to lower AB ownership and net income, while confirming sufficient liquidity [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Net income for Q2 2025 decreased **38.1%** to **$70.2 million**, and **24.4%** for the six-month period to **$144.3 million**, driven by lower AB equity ownership and net income Results of Operations Highlights (in thousands, except per unit amounts) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Net income of AB Holding | $70,248 | $113,523 | $144,282 | $190,745 | | % Change | (38.1)% | | (24.4)% | | | Net income per AB Holding Unit | $0.64 | $0.99 | $1.31 | $1.66 | | % Change | (35.4)% | | (21.1)% | | [Management Operating Metrics](index=18&type=section&id=Management%20Operating%20Metrics) The company utilizes non-GAAP measures like 'adjusted net income' to assess performance, with Q2 2025 adjusted net income at **$83.9 million** compared to **$70.2 million** GAAP net income GAAP to Non-GAAP Reconciliation (Q2 2025 vs Q2 2024) | (in thousands, except per Unit amounts) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income, GAAP basis** | **$70,248** | **$113,523** | | Impact of AB non-GAAP adjustments | $13,630 | $(32,232) | | **Adjusted net income** | **$83,878** | **$81,291** | | **Net income per Unit, GAAP basis** | **$0.64** | **$0.99** | | Impact of AB non-GAAP adjustments | $0.12 | $(0.28) | | **Adjusted net income per Unit** | **$0.76** | **$0.71** | - Management employs non-GAAP measures such as **'adjusted net revenues'** and **'adjusted operating income'** for a clearer view of operating performance and long-term trends[62](index=62&type=chunk) [Capital Resources and Liquidity](index=19&type=section&id=Capital%20Resources%20and%20Liquidity) Net cash from operations increased to **$203.9 million** in the first six months of 2025, primarily from AB distributions, which management deems sufficient for all financial obligations - Net cash provided by operating activities increased by **$31.9 million** in the first six months of 2025, primarily due to a **$33.7 million** increase in cash distributions from AB[68](index=68&type=chunk) - Net cash used in financing activities rose by **$31.9 million**, mainly driven by a **$32.5 million** increase in cash distributions to Unitholders[69](index=69&type=chunk) - Management confirms **no liquidity risk** for AB Holding, as distributions are paid only from cash received from AB, net of taxes[70](index=70&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk profile occurred during Q2 2025 compared to the 2024 Form 10-K disclosures - No material changes to AB Holding's market risk have occurred since the Form 10-K for the year ended December 31, 2024[73](index=73&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the period end, with no material changes to internal control over financial reporting in Q2 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** as of the reporting period end[76](index=76&type=chunk) - No material changes to internal control over financial reporting occurred during Q2 2025[77](index=77&type=chunk) [Part II - Other Information](index=23&type=section&id=Part%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is referenced in Note 8 of the condensed financial statements, with management not expecting material impact on financial condition or liquidity - Legal proceedings information is detailed in **Note 8** to the condensed financial statements in Part I, Item 1[79](index=79&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024, have occurred - No material changes to risk factors were reported from those disclosed in the Form 10-K for the year ended December 31, 2024[80](index=80&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of AB Holding Units occurred in Q2 2025, though AB purchased **338,900** units on the open market and retired **30,200** units in private transactions Issuer Purchases of AB Holding Units (Q2 2025) | Period | Total Units Purchased | Average Price Paid | Publicly Announced Plan | | :--- | :--- | :--- | :--- | | 4/1/25 - 4/30/25 | 338,900 | $36.43 | — | | 5/1/25 - 5/31/25 | 22,682 | $39.63 | — | | 6/1/25 - 6/30/25 | — | — | — | | **Total** | **361,582** | **$36.63** | **—** | - AB purchased **338,900 AB Holding Units** on the open market under a Rule 10b5-1 plan to fund incentive compensation obligations[84](index=84&type=chunk) - AB purchased and retired **30,200 AB Units** in private transactions during Q2 2025[87](index=87&type=chunk) [Defaults Upon Senior Securities](index=24&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[88](index=88&type=chunk) [Mine Safety Disclosures](index=24&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - None[89](index=89&type=chunk) [Other Information](index=24&type=section&id=Item%205.%20Other%20Information) CEO Seth Bernstein adopted a Rule 10b5-1 trading plan on May 21, 2025, for the sale of up to **31,694 AB Holding Units**, effective August 19 to November 17, 2025 - CEO Seth Bernstein adopted a Rule 10b5-1 trading plan on May 21, 2025, for the sale of up to **31,694 AB Holding Units**, effective from August 19, 2025, to November 17, 2025[90](index=90&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications, AllianceBernstein L.P.'s Form 10-Q, and XBRL data files - Key exhibits include **CEO and CFO certifications** under Sarbanes-Oxley Sections 302 and 906, and the quarterly report of **AllianceBernstein L.P. (Exhibit 99.1)**[92](index=92&type=chunk) [Signature](index=26&type=section&id=SIGNATURE) - The report was signed on **July 24, 2025**, by **Thomas Simeone, Chief Financial Officer**, and **Alexis Luckey, Chief Accounting Officer**[95](index=95&type=chunk)[96](index=96&type=chunk)

Financial Performance - AllianceBernstein reported a GAAP net income of $0.64 per unit and an adjusted net income of $0.76 per unit for the second quarter of 2025, with cash distribution also at $0.76 per unit [1][38]. - Total net revenues for the second quarter were $1.1 billion, reflecting a 5.9% increase from $1.0 billion in the same quarter of 2024 [12][37]. - Operating income increased by 11.4% to $222 million compared to $199 million in the second quarter of 2024, while the operating margin improved to 20.7% [17][37]. Assets Under Management - Assets under management (AUM) reached a record high of $829.1 billion, up 7.7% from $769.5 billion year-over-year and up 5.7% from $784.5 billion in the previous quarter [6][38]. - The average AUM for the quarter was $799.5 billion, an increase of 5.8% from $755.5 billion in the same quarter of 2024 [6][38]. Net Flows - The firm experienced total net outflows of $6.7 billion in the second quarter, contrasting with net inflows of $2.4 billion in the first quarter of 2025 [7][9]. - Retail active equities saw net outflows of $3.7 billion, while institutional active net flows were positive, driven by $1 billion into taxable fixed income and alternatives/multi-asset [3][8]. Market Conditions - The second quarter of 2025 was characterized by improved investor sentiment as geopolitical tensions eased, leading to positive returns in risk assets [2][4]. - Global equity markets, including the S&P 500 and MSCI EAFE, reported total returns of 10.9% and 12.1%, respectively, during the quarter [5]. Operational Highlights - The company reported a 4% increase in investment advisory base fees year-over-year, with adjusted operating income rising by 7% [2][24]. - Employee headcount increased to 4,380 as of June 30, 2025, compared to 4,264 a year earlier [26]. Distribution and Shareholder Returns - The cash distribution per unit of $0.76 is scheduled for payment on August 14, 2025, to holders of record as of August 4, 2025 [3][11].

Core Viewpoint - AB Science has received approval from several European countries to initiate a confirmatory Phase 3 study of masitinib in amyotrophic lateral sclerosis (ALS), following validation by the EMA and FDA [1][2]. Group 1: Study Design and Population - The confirmatory Phase 3 study, AB23005, is a multicenter, randomized, double-blind, placebo-controlled trial designed to confirm the efficacy and safety of masitinib in ALS patients [3]. - The study will enroll 408 patients with ALS, focusing on those with normal disease progression and no total loss of function [4]. - The optimal population for the study is defined as patients before complete loss of function, representing approximately 75% of the total ALS patient population [5][6]. Group 2: Clinical Data and Mechanism of Action - Previous studies, including the Phase 2B/3 study AB10015, indicated a median survival increase of +12 months for the targeted patient population [5]. - Masitinib's mechanism of action involves targeting mast cells and microglia, which has been supported by preclinical studies demonstrating its immunomodulatory properties [11][22]. Group 3: Statistical Considerations - The AB23005 study aims to enroll approximately 200 patients per treatment group, more than double the number in the previous study, to enhance statistical power [10]. - The optimal population included approximately 90 patients per treatment group in the AB10015 study, where masitinib showed statistically significant effects on key endpoints [9]. Group 4: Intellectual Property and Regulatory Status - AB Science has secured patent protection for masitinib in ALS until 2037, with potential extensions in certain jurisdictions [14][15]. - Masitinib has received orphan drug designation from both the EMA and FDA, granting it marketing exclusivity for 10 years in Europe and 7 years in the United States [17].

Company Performance - AllianceBernstein (AB) shares have increased by 4% over the past month, reaching a new 52-week high of $42.2 [1] - Year-to-date, AB has gained 13.3%, outperforming the Zacks Finance sector's 9.8% gain and the Zacks Financial - Investment Management industry's -1% return [1] Earnings and Revenue - AB has consistently exceeded earnings estimates, reporting EPS of $0.8 against a consensus estimate of $0.78 in its last earnings report [2] - For the current fiscal year, AB is expected to post earnings of $3.32 per share on revenues of $3.52 billion, reflecting a 2.15% change in EPS and a -0.22% change in revenues [3] - For the next fiscal year, earnings are projected to be $3.69 per share on revenues of $3.85 billion, indicating year-over-year changes of 11.34% and 9.33%, respectively [3] Valuation Metrics - AB currently trades at 12.7X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 12X [7] - The stock has a trailing cash flow basis of 12.5X, matching its peer group's average [7] - AB's PEG ratio stands at 1.65, which does not place it among the top stocks from a value perspective [7] Zacks Rank and Style Scores - AB holds a Zacks Rank of 1 (Strong Buy) due to a solid earnings estimate revision trend [8] - The stock has a Value Score of B, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6] Industry Comparison - The Financial - Investment Management industry is performing well, ranking in the top 6% of all industries [12] - SEI Investments Company (SEIC), a peer, has a Zacks Rank of 1 (Strong Buy) and is expected to post earnings of $4.91 per share on revenues of $2.27 billion for the current fiscal year [10][11]

Core Insights - AllianceBernstein L.P. has partnered with Pacific Life to enhance its multi-insurer platform for delivering lifetime income solutions to large Defined Contribution (DC) plans [1][2] Group 1: Company Developments - The addition of Pacific Life is part of AllianceBernstein's ongoing expansion of its retirement income capabilities, which includes the Lifetime Income Strategy (LIS) and the AB Secure Income Portfolio [2][3] - The Lifetime Income Strategy currently manages approximately $12 billion in assets, with $4.5 billion specifically in secured income [2] - AllianceBernstein has been a pioneer in offering flexible lifetime income solutions to the DC market since 2012, continuously adapting to client needs [3] Group 2: Product Offerings - The AB Secure Income Portfolio allows DC plan sponsors to implement lifetime income in various ways, providing participants with secure income streams and control over their accounts [3][5] - The multi-insurer structure of the platform aims to produce competitive withdrawal rates and mitigate risks for participants [5] Group 3: Market Position - As of June 2025, AllianceBernstein manages $829 billion in assets, indicating a strong market presence [7] - Pacific Life's involvement reflects a commitment to providing diverse lifetime income solutions for plan sponsors and their employees [5][8]

Group 1 - The Chinese capital market is experiencing a new pattern of deep interaction with foreign institutions, enhancing the convenience for global investors to participate in China's innovative development opportunities [1] - International capital's enthusiasm for allocating assets in China is increasing, with many foreign institutions expressing optimism about the Chinese market's prospects [1][2] - A significant shift has occurred in the priorities of sovereign wealth funds, with 59% of respondents identifying China as a high or medium priority market, indicating a separate allocation to China from broader emerging markets [2] Group 2 - The quality of listed companies in China is improving, providing a solid foundation for foreign institutions' interest, with 60% of companies reporting positive revenue growth in 2024 [3] - Foreign institutions are increasingly focusing on technology innovation, with digital technology and software being the most attractive investment areas, followed by advanced manufacturing and clean energy [5] - The bond market is also attracting international capital, with expectations that capital may flow from the US financial markets to other fixed-income markets, benefiting European, Japanese, and Chinese bonds [5] Group 3 - Foreign institutions are accelerating their investment in the Chinese market, with over 30 new funds launched by firms such as Morgan Asset Management and Fidelity [6] - Several foreign institutions are demonstrating long-term commitment to the Chinese market through capital increases, such as Morgan Stanley Fund's registered capital rising from 600 million to 950 million yuan, a growth of over 58% [6]

Core Insights - Three stocks are highlighted with strong income characteristics and a buy rank for investors to consider on July 14th Group 1: Company Summaries - **Wipro Limited (WIT)**: This IT, consulting, and business process services company has seen a 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days. It has a dividend yield of 2.1%, significantly higher than the industry average of 0.0% [1] - **AllianceBernstein Holding L.P. (AB)**: This investment management company from Mexico has experienced a 4.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days. It boasts a dividend yield of 7.7%, compared to the industry average of 3% [2] - **MSC Industrial Direct Co., Inc. (MSM)**: This company, which specializes in metalworking and MRO products and services, has seen a 3.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days. It has a dividend yield of 3.8%, while the industry average is 0.0% [3]

Core Viewpoint - Investors in the Financial - Investment Management sector should consider AllianceBernstein (AB) and Cohen & Steers Inc (CNS) for potential value opportunities [1] Valuation Metrics - AllianceBernstein has a forward P/E ratio of 12.76, while Cohen & Steers has a forward P/E of 25.95 [5] - The PEG ratio for AB is 1.64, indicating a more favorable earnings growth outlook compared to CNS's PEG ratio of 2.55 [5] - AB's P/B ratio is 2.31, significantly lower than CNS's P/B ratio of 7.61, suggesting AB is more undervalued relative to its book value [6] Investment Rankings - AllianceBernstein holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Cohen & Steers has a Zacks Rank of 3 (Hold) [3] - The stronger estimate revision activity for AB, along with its more attractive valuation metrics, positions it as the superior investment option compared to CNS [7]

Core Insights - AllianceBernstein L.P. and AllianceBernstein Holding L.P. reported a preliminary increase in assets under management (AUM) to $829 billion in June 2025, up from $803 billion at the end of May, representing a 3% month-over-month growth driven by market appreciation and modest net inflows [1][2] - The firm experienced net outflows totaling $6.7 billion for the quarter ending June 2025, with institutional net inflows being partially offset by net outflows from retail and private wealth segments during June [1][2] AUM Breakdown - As of June 30, 2025, the total AUM was composed of: - Total Equity: $344 billion, up from $332 billion in May, with actively managed equity at $273 billion and passive equity at $71 billion [2] - Total Fixed Income: $304 billion, an increase from $295 billion in May, with taxable fixed income at $215 billion and tax-exempt fixed income at $79 billion [2] - Alternatives/Multi-Asset: $181 billion, up from $176 billion in May [2] - The AUM for private wealth was $144 billion, reflecting a slight increase from $140 billion in May [2] Company Overview - AllianceBernstein is recognized as a leading global investment management firm, providing diversified investment services to institutional investors, individuals, and private wealth clients across major world markets [5][6] - As of June 30, 2025, AllianceBernstein Holding owned approximately 37.5% of AllianceBernstein, while Equitable Holdings, Inc. owned an approximate 68.6% economic interest in the firm [6]

Group 1 - Bernstein Private Wealth Management is expanding its ultrahigh-net-worth (UHNW) services through inorganic growth strategies, including targeted recruiting and selective acquisitions of registered investment advisors (RIAs) [2][3] - The firm has appointed three new leaders: Craig Storch as Senior Managing Director for Growth Strategies, Neel Ray as Senior National Director, and Marshall Butler as Head of Marketing, all reporting to Aaron Bates [2][3][5] - Bernstein's UHNW segment is experiencing notable momentum, and the firm aims to leverage its global asset management resources to enhance advisor practices and client outcomes [3][4] Group 2 - The new hires and acquisitions will be based on cultural fit and fiduciary mindset, aligning with Bernstein's long-standing commitment to organic talent development [3][4] - Bernstein continues to introduce tailored solutions for UHNW clients, including family offices, and has opened a new office in Hudson Yards, New York City [6] - As of May 31, 2025, AllianceBernstein manages $803 billion in assets, positioning Bernstein among the largest investment managers globally [7]