Financial Performance - 3Q20 net flows increased by 33% quarter-over-quarter to $1.2 billion[11] - The company's net flows as a percentage of beginning-of-period platform assets was 8.6%[29] - Total revenue decreased by 2.7% year-over-year, from $110.1 million in 3Q19 to $107.1 million in 3Q20[34] - Adjusted EBITDA increased slightly by 0.3% year-over-year, from $29.2 million in 3Q19 to $29.3 million in 3Q20[43] - Adjusted EBITDA margin increased by 80 bps year-over-year, from 26.6% in 3Q19 to 27.4% in 3Q20[43] - Adjusted net income increased by 6.1% year-over-year, from $17.1 million in 3Q19 to $18.2 million in 3Q20[43] Growth and Strategy - The company is focused on enhancing advisor value and productivity, attracting adjacent advisors, and continuing to scale the business[9] - The company's target organic growth is 10%+ annualized if COVID mitigates, or 8-10% annualized organic growth[26] - Existing advisors contribute approximately 66% of net flows, while new platform advisors (NPAs) contribute approximately 33%[26] Advisor Engagement and Platform Enhancements - Over 450 webinars were hosted with 20,000+ total attendees[12] - October Premier Advisor meetings had over 900 attendees, a 20%+ increase compared to previous meetings[12]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38980 ASSETMARK FINANCIAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdi ...

Financial Data and Key Metrics Changes - Platform assets reached a record $63.2 billion, up 12.8% year-over-year and 12.9% quarter-over-quarter, driven by market recovery and net flow performance [22][27] - Net flows for the quarter were $907 million, reflecting a reduction to about 80% of pre-pandemic levels, with year-to-date net flows totaling $2.7 billion, or 8.9% of beginning-of-period assets [23][24] - Adjusted net income for the second quarter was $15.1 million, a decrease of 16% year-over-year, while adjusted EBITDA was $25.3 million, down 11.4% year-over-year [34][35] Business Line Data and Key Metrics Changes - Asset-based net revenue increased by 3.2% year-over-year to $64.6 million, while spread-based net revenue decreased by 56.8% year-over-year to $3.1 million due to lower rates [27][28] - Production lift from existing advisers was 16.3%, down from 23.3% in the first quarter of 2020 and 24.9% in the second quarter of 2019 [26] Market Data and Key Metrics Changes - The average client cash for the second quarter was $2.9 billion, with an annualized net yield of 43 basis points [28] - The net yield on total platform assets was 49 basis points, down 1 basis point quarter-over-quarter and 5 basis points year-over-year [29][30] Company Strategy and Development Direction - The company is focused on adapting to changes in investor demand, emphasizing the need for advisers to understand clients' goals and aspirations [12][13] - Investment in technology and outsourcing services is seen as critical for advisers to provide a broader range of services and remain competitive [13][14] - The company continues to invest in strategic pillars, including technology, personalized service, and holistic investment solutions, to enhance adviser capabilities [15][16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite the pandemic, highlighting resilience and adaptability in the business model [6][40] - The outlook for the remainder of 2020 includes expectations for net revenue to be flat year-over-year, with adjusted EBITDA projected between $107 million and $113 million [38][39] Other Important Information - The company filed a shelf registration with the SEC, a standard practice for public companies to facilitate future offerings, though no specific date has been set for any offering [39] Q&A Session Summary Question: What is the expectation for net sales recovery as brokers acclimate to remote work? - Management noted that while predicting recovery is challenging, there are signs of advisers adapting to the new environment and focusing on growth [42][43] Question: Is there a concept of pent-up demand for production post-pandemic? - Historical trends suggest that after periods of distress, production often accelerates, and the company is preparing for such an outcome [44][45] Question: What is the potential for increased competition in the TAMP space? - Management acknowledged increased competition, particularly from broker-dealers building internal TAMPs, but emphasized the company's differentiated service and technology [47][48][50] Question: Are there any trends in household growth? - The company reported a 0.5% growth in households in June, indicating organic growth and adviser engagement [51][56] Question: Will the Schwab-Ameritrade merger impact the adviser pipeline? - Management indicated that while there is concern among advisers, the decision to outsource is not primarily driven by custodial changes but by broader trends in adviser practices [62][64]

Financial Performance - Total revenue for Q1 2020 was $114.9 million, an increase of $22.6 million or 24.5% from $92.3 million in Q1 2019[66] - Net income for Q1 2020 was $2.7 million, or $0.04 per share, compared to $2.8 million, or $0.04 per share, in Q1 2019[66] - Adjusted net income for Q1 2020 was $17.7 million, up from $12.7 million in Q1 2019[66] - Total revenue for Q1 2020 was $115 million, compared to $92 million in Q1 2019[81] - Adjusted EBITDA for Q1 2020 was $28.4 million, up from $22.7 million in Q1 2019[81] - Total revenue for the three months ended March 31, 2020, was $2,736,000, compared to $2,811,000 for the same period in 2019, reflecting a net income margin of 2.4% in 2020 versus 3.0% in 2019[104] - Adjusted EBITDA for the three months ended March 31, 2020, was $28,375,000, representing a margin of 24.7%, compared to $22,730,000 and a margin of 24.6% in 2019[104] - Adjusted net income for Q1 2020 was $14.2 million, compared to $797,000 in Q1 2019, reflecting a significant increase[112] - Total revenue for Q1 2020 was $114.9 million, up 24.5% from $92.3 million in Q1 2019, driven by a $22.6 million increase in asset-based revenue[128] Asset Management - Platform assets reached $56.0 billion as of March 31, 2020, a 12.7% increase from $49.7 billion as of March 31, 2019[67] - Engaged advisers increased to 2,138 as of March 31, 2020, an 8.7% rise from 1,967 as of March 31, 2019[67] - The company completed the acquisition of OBS, adding approximately $2.1 billion in platform assets and 499 new financial adviser relationships[65] - The annual cohort of new producing advisers grew 63% from 548 in 2014 to 894 in 2019[70] - Asset-based revenue increased by 27.2% to $105.7 million in Q1 2020, primarily due to growth in platform assets and advisory fees[129] - Spread-based revenue rose by 5.3% to $8.0 million in Q1 2020, attributed to higher cash balances at ATC despite lower interest rates[130] - Other revenue decreased by 24.3% to $1.3 million in Q1 2020, mainly due to lower interest income from reduced cash balances[131] - Assets in custody at AssetMark Trust Company (ATC) at period-end were significant, with ATC client cash accounting for 8% of total assets in custody as of March 31, 2020[92] Expenses and Costs - Total operating expenses increased by 35.8% to $111.4 million in Q1 2020, with significant rises in employee compensation and general operating expenses[128] - Employee compensation rose by 36.4% to $43.5 million in Q1 2020, largely due to increased share-based compensation following the IPO[135] - Asset-based expenses increased by 24.6% to $35.0 million in Q1 2020, driven by higher strategist and investment management costs[133] - Spread-based expenses surged by 169.7% to $1.3 million in Q1 2020, due to higher interest-credited payments to clients[134] - General and operating expenses increased by $7.1 million, or 57.5%, from $12.3 million in Q1 2019 to $19.4 million in Q1 2020, driven by higher costs in events, insurance, and software[136] - Professional fees rose by $1.4 million, or 60.6%, from $2.4 million in Q1 2019 to $3.8 million in Q1 2020, primarily due to increased consulting and audit fees[137] - Depreciation and amortization expense increased by $1.5 million, or 21.9%, from $6.9 million in Q1 2019 to $8.4 million in Q1 2020, partly due to amortization related to acquisitions[138] - Share-based compensation for the three months ended March 31, 2020, was $13,188,000, representing 11.5% of total expenses, compared to 5.7% in 2019[106] - The company incurred acquisition expenses of $3,577,000 during the period, reflecting ongoing strategic initiatives[104] Cash Flow and Debt - Cash flows from operating activities increased by $6.5 million in Q1 2020 compared to Q1 2019, primarily due to increased share-based compensation and depreciation[150] - Cash used in investing activities increased by $20.9 million in Q1 2020 compared to Q1 2019, mainly due to the OBS acquisition and increased capital expenditures[151] - As of March 31, 2020, cash and cash equivalents were $80.2 million, down from $96.3 million in the same period in 2019[144] - The company had $123.7 million of the Term Loan outstanding as of March 31, 2020, with a maturity in November 2025[145] Operational Risk - Operational risk includes potential losses from improper transaction execution and deficiencies in technology systems[163] - Increased transaction volumes during the COVID-19 pandemic have heightened operational risk exposure[163] - Financial losses from operational risk may rise during periods of high market volatility[163] - Business continuity plans are in place for critical systems to mitigate operational risks[163] - Specific policies and procedures are continuously enhanced to manage operational risk across the organization[163] - Control mechanisms ensure adherence to operational policies and corporate limits[163] - The company relies on employee and system efficiency to process a large number of transactions[163] - Regulatory sanctions and reputational damage are potential consequences of operational failures[163] - Redundancies are built into systems to address operational risk appropriately[163] - The company aims to identify and manage operational risk at various departmental levels[163]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ______ Commission File Number: 001-38980 ASSETMARK FINANCIAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) Title of each class Tra ...

Financial Performance - Total revenue for Q3 2019 was $110.1 million, an increase of $17.2 million or 18.5% from $92.9 million in Q3 2018[60] - Net loss for Q3 2019 was $3.7 million, or $0.05 per share, compared to net income of $10.4 million, or $0.16 per share, in Q3 2018[60] - Adjusted EBITDA for Q3 2019 was $29.2 million, up $5.5 million or 23.0% from $23.8 million in Q3 2018[60] - Total revenue for the nine months ended September 30, 2019, was $307 million, compared to $266 million for the same period in 2018[72] - Adjusted net income for Q3 2019 was $17.1 million, compared to $16.3 million in Q3 2018[72] - Net income for the nine months ended September 30, 2019, was $2,320,000, compared to $29,410,000 for the same period in 2018, reflecting a significant decline[102] - Adjusted net income for the nine months ended September 30, 2019, was $46,463,000, compared to $46,517,000 for the same period in 2018, indicating a stable performance despite the drop in net income[102] - Net comprehensive income decreased by $14.1 million, or 136.0%, from a net income of $10.4 million in Q3 2018 to a net loss of $3.7 million in Q3 2019[128] - Net comprehensive income decreased by $27.1 million, or 92.1%, from $29.4 million in 2018 to $2.3 million in 2019, despite a $17.2 million increase in total revenue[143] Asset Growth - Platform assets reached $57.9 billion as of September 30, 2019, a 21.0% increase from $47.9 billion as of September 30, 2018[61] - Engaged advisers on the platform increased to 2,159 as of September 30, 2019, a 13.5% rise from 1,903 as of September 30, 2018[61] - Positive net flows indicate that the amount of assets added to client accounts exceeds the amount of assets withdrawn, contributing to platform asset growth[74] - Engaged advisers, defined as those with at least $5 million in platform assets, contribute significantly to total platform assets[76] - New producing advisers (NPAs) represent the number of advisers who invested their first client assets on the platform during the period[78] Revenue Sources - Total revenue includes asset-based revenue, spread-based revenue, and other revenue sources, indicating overall financial performance[82] - Asset-based revenue accounted for approximately 90.1% of total revenue for the three months ended September 30, 2019, down from 93.1% in the same period of 2018[104] - Asset-based revenue increased by $12.7 million, or 14.7%, from $86.5 million in Q3 2018 to $99.2 million in Q3 2019, primarily due to increased platform and advisory fees[116] - Spread-based revenue rose by $4.2 million, or 78.3%, from $5.4 million in Q3 2018 to $9.6 million in Q3 2019, driven by higher cash balances and increased interest rates[117] - Asset-based revenue for the nine months ended September 30, 2019, was $276.5 million, an increase of $27.7 million, or 11.1%, compared to $248.8 million in the same period of 2018[132] - Spread-based revenue for the nine months ended September 30, 2019, increased by $12.1 million, or 87.2%, from $13.9 million in 2018 to $26.0 million in 2019[133] Expenses and Costs - Total expenses increased by $31.6 million, or 40.7%, from $77.6 million in Q3 2018 to $109.2 million in Q3 2019, leading to a net loss of $3.7 million in Q3 2019[115] - Employee compensation increased by $14.5 million, or 52.8%, from $27.5 million in Q3 2018 to $42.1 million in Q3 2019, largely due to share-based compensation growth[121] - Total expenses related to acquisitions and integrations for the nine months ended September 30, 2019, were $14,473,000, compared to $2,044,000 for the same period in 2018, indicating increased costs associated with growth strategies[102] - Share-based compensation for the three months ended September 30, 2019, was $11,641,000, significantly higher than $1,517,000 for the same period in 2018[101] - General and operating expenses grew by $11.3 million, or 34.7%, from $32.5 million in 2018 to $43.8 million in 2019, primarily due to $3.3 million in GFPC-related costs[138] Cash Flow and Financial Position - Cash flows from operating activities decreased by $9.3 million in the nine months ended September 30, 2019, primarily due to a decrease in net income of $27.1 million[150] - Cash used in investing activities increased by $40.0 million in the nine months ended September 30, 2019, due to the $35.8 million purchase price for the GFPC acquisition[153] - As of September 30, 2019, the company had cash and cash equivalents of $83.2 million and restricted cash of $7.5 million[144] - The company established a credit facility consisting of a $250.0 million term loan and a $20.0 million revolving credit facility, with $123.7 million of the term loan remaining outstanding as of September 30, 2019[147] - As of September 30, 2019, total contractual obligations amounted to $373.5 million, with $25.2 million due in less than 1 year and $283.0 million due beyond 5 years[158] Risk Management and Operational Considerations - Operational risk management is critical, with policies and procedures in place to mitigate risks associated with transaction processing and technology deficiencies[164] - Interest expense for the period reflects fluctuations based on the Term Loan, which may impact future financial performance[113] - General and operating expenses are expected to increase due to costs associated with being a publicly traded company, including legal and accounting compliance[110] - The company anticipates an increase in employee compensation expenses due to additional non-cash share-based compensation and headcount growth to support its strategy[109] - Interest payments on the Term Loan are calculated using a forecasted rate, with a margin of 3.50% that can step down to 3.25% based on leverage ratio achievements[163]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common stock, par value $0.001 per share AMK New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commiss ...