Financial Position - Total assets as of June 30, 2024, were $1,617,413,000, a slight decrease from $1,620,563,000 as of December 31, 2023[12] - Current assets decreased from $291,111,000 as of December 31, 2023, to $274,815,000 as of June 30, 2024, primarily due to a reduction in cash and cash equivalents[12] - Total liabilities decreased from $353,181,000 as of December 31, 2023, to $271,750,000 as of June 30, 2024, reflecting a reduction in long-term debt[12] - Stockholders' equity increased from $1,267,382,000 as of December 31, 2023, to $1,345,663,000 as of June 30, 2024, driven by retained earnings growth[12] Revenue and Income - The company reported a net income of $70,278,000 for the six months ended June 30, 2024, compared to $50,000,000 for the same period in 2023, representing a 40.56% increase[13] - Total revenue for Q2 2024 reached $198,491 thousand, a 13% increase from $175,521 thousand in Q2 2023[14] - Asset-based revenue increased to $158,878 thousand, up 15.7% from $137,336 thousand year-over-year[14] - Subscription-based revenue rose to $4,306 thousand, reflecting a 16.6% increase compared to $3,693 thousand in the same period last year[14] - Net income for Q2 2024 was $32,314 thousand, slightly down from $32,877 thousand in Q2 2023, representing a decrease of 1.7%[14] - Basic net income per share for Q2 2024 was $0.43, unchanged from Q2 2023[14] Expenses - Total operating expenses increased to $151,439 thousand, a 17.3% rise from $129,145 thousand in Q2 2023[14] - Employee compensation expenses rose to $51,902 thousand, up 8.5% from $48,099 thousand year-over-year[14] - Total asset-based expenses for the six months ended June 30, 2024, were $93,200, up from $76,778 for the same period in 2023, representing an increase of approximately 21.4%[63] Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2024, was $99,436, slightly down from $105,479 in 2023, a decrease of 5.4%[21] - The company reported a net cash used in investing activities of $32,684 for the six months ended June 30, 2024, compared to $29,935 in 2023, an increase of 9.2%[21] - The company experienced a net change in cash of $(26,998) for the six months ended June 30, 2024, compared to an increase of $50,544 for the same period in 2023[21] Merger and Acquisition - The company entered into a merger agreement valued at approximately $2,622,573 with GTCR Everest Borrower, LLC, with the transaction subject to customary closing conditions[28] - The company incurred transaction costs associated with the merger of approximately $10,952 for the six months ended June 30, 2024[31] - The Company entered into an Asset Purchase Agreement with Morningstar, Inc. to acquire client advisory agreements, pending regulatory approval[41] Risks and Regulatory Matters - The company is exposed to various risks, including market fluctuations and cybersecurity threats, which could adversely affect its business operations[7] - The company has significant exposure to risks related to the pending merger, which could adversely affect its financial condition and operations[7] - The company is subject to various regulatory inquiries and litigation risks that could adversely affect its business and financial condition[77] - The company continues to comply with certain undertakings under the SEC settlement reached in September 2023[78] Shareholder Information - The weighted average number of common shares outstanding increased to 74,743,985 in Q2 2024 from 74,172,080 in Q2 2023[14] - Total stockholders' equity as of June 30, 2024, was $1,345,663 thousand, an increase from $1,184,439 thousand as of June 30, 2023[17] - The balance of common shares increased to 74,743,985 as of June 30, 2024, from 74,172,080 as of June 30, 2023, marking an increase of 0.8%[18] Accounting and Compliance - The company is evaluating the impact of new accounting standards issued by FASB, which will affect financial disclosures starting in 2024 and 2025[36] - The company performed an annual test for intangible assets impairment and determined that intangible assets were not impaired as of June 30, 2024[47] Taxation - The effective income tax rate was 28.3% for Q2 2024, compared to 26.2% for Q2 2023, and 25.8% for the first half of 2024, down from 26.8% for the same period in 2023[80]

Core Insights - AssetMark Financial reported revenue of $198.49 million for the quarter ended June 2024, reflecting an 8.3% increase year-over-year and exceeding the Zacks Consensus Estimate of $193.28 million by 2.70% [1] - Earnings per share (EPS) for the quarter was $0.66, up from $0.55 in the same quarter last year, aligning with the consensus EPS estimate [1] Financial Performance Metrics - Assets in custody at ATC at period-end were 88,681, surpassing the two-analyst average estimate of 88,154 [2] - Ending platform assets totaled $119.39 billion, slightly below the average estimate of $119.61 billion [2] - Asset-based revenue reached $158.88 million, a 15.7% increase year-over-year, but below the average estimate of $159.12 million [2] - Spread-based revenue was reported at $28.85 million, down 22.6% year-over-year, and below the average estimate of $29.47 million [2] - Subscription-based revenue increased to $4.31 million, a 16.6% year-over-year change, exceeding the average estimate of $4.26 million [2] - Other revenue was $6.45 million, significantly higher than the three-analyst average estimate of $5.67 million, representing a 30.9% year-over-year increase [2] Stock Performance - Over the past month, shares of AssetMark Financial have returned +0.4%, compared to a +2.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Financial Performance - AssetMark Financial reported quarterly earnings of $0.66 per share, matching the Zacks Consensus Estimate, and an increase from $0.55 per share a year ago [1] - The company posted revenues of $198.49 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 2.70%, compared to $183.23 million in the same quarter last year [1] - Over the last four quarters, AssetMark has surpassed consensus EPS estimates two times and revenue estimates three times [1] Market Performance - AssetMark Financial shares have increased by approximately 14.9% since the beginning of the year, while the S&P 500 has gained 17.2% [2] - The stock is currently rated Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $197.43 million, and for the current fiscal year, it is $2.65 on revenues of $777.06 million [4] - The trend for estimate revisions ahead of the earnings release was favorable, which may influence future stock performance [4] Industry Context - The Financial - Investment Management industry is currently ranked in the bottom 35% of over 250 Zacks industries, which may impact stock performance [5] - Another company in the same industry, BrightSphere Investment Group, is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year increase of 50% [5][6]

Financial Performance - Net income for Q2 2024 was $32.3 million, or $0.43 per share, with adjusted net income of $49.8 million, or $0.66 per share on total revenue of $198.5 million[1]. - Total revenue for Q2 2024 was $198.5 million, a 13.1% increase from $175.5 million in Q2 2023[3]. - Adjusted net income for Q2 2024 was $49.767 million, representing a 20.5% increase from $41.242 million in Q2 2023[39]. - Net income for the six months ended June 30, 2024, was $70,278 thousand, compared to $50,099 thousand for the same period in 2023, reflecting a 40.2% increase[17]. - Total revenue for the six months ended June 30, 2024, was $388.757 million, an increase of 12.4% compared to $345.819 million for the same period in 2023[43]. - The total net income for the three months ended June 30, 2024, was $32,314 thousand, slightly down from $32,877 thousand in the same period of 2023, indicating a decrease of 1.7%[46]. - Adjusted earnings per share for Q2 2024 was $0.66, compared to $0.55 in Q2 2023, reflecting a 20% increase[39]. Revenue Breakdown - Asset-based revenue increased to $158,878 thousand for the three months ended June 30, 2024, up from $137,336 thousand, a growth of 15.7%[14]. - Subscription-based revenue rose to $4,306 thousand, a 16.6% increase compared to $3,693 thousand in the prior year[14]. - The company reported a total of $6.454 million in other revenue for Q2 2024, compared to $4.932 million in Q2 2023, marking a 31% increase[39]. Operating Metrics - Adjusted EBITDA for Q2 2024 was $71.9 million, representing 36.2% of total revenue, an increase from 34.4% in Q2 2023[3]. - Adjusted EBITDA for the three months ended June 30, 2024, was $71,873 thousand, up from $60,397 thousand, indicating a 19.5% increase year-over-year[25]. - The adjusted EBITDA margin for the three months ended June 30, 2024, was 36.2%, compared to 34.4% in the same period of 2023[25]. - Total operating expenses for the three months ended June 30, 2024, were $151,439 thousand, an increase of 17.3% from $129,145 thousand in the prior year[14]. Advisor and Asset Growth - Platform assets increased 18.5% year-over-year to $119.4 billion, with quarterly net flows of $1.7 billion and market impact net of fees of $0.8 billion[1][3]. - More than 4,300 new households and 164 new producing advisors joined the AssetMark platform during Q2 2024, totaling over 9,200 advisors and 261,000 investor households[2]. - Assets from engaged advisors at period-end increased 20.2% year-over-year to $111.9 billion[3]. - The company experienced a 20.2% annualized production lift from existing advisors, indicating organic growth and increased wallet share[2][3]. Expenses and Costs - Total adjusted operating expenses for the six months ended June 30, 2024, were $259.202 million, up from $235.333 million in the same period of 2023[43]. - The company’s total asset-based expenses for the six months ended June 30, 2024, were $93.200 million, compared to $76.778 million in the same period of 2023, an increase of 21.4%[43]. - Share-based compensation for the six months ended June 30, 2024, was $8,003,000, slightly higher than $7,974,000 in the previous year[32]. - Merger and acquisition expenses totaled $12,090,000 for the six months ended June 30, 2024, compared to only $173,000 in the same period of 2023[32]. Tax and Interest - The provision for income taxes increased to $24,496,000 for the six months ended June 30, 2024, from $18,366,000 in the prior year, reflecting a tax rate increase[26]. - Interest income for the six months ended June 30, 2024, was $(8,385,000), compared to $(4,560,000) in the same period of 2023, indicating a decline in interest income[26]. - Interest expense for Q2 2024 was $2.202 million, slightly up from $2.137 million in Q2 2023[39]. Acquisition and Settlement - The company signed a definitive agreement to be acquired by GTCR, expected to close in Q4 2024, subject to customary closing conditions and regulatory approvals[2][4]. - The company has recognized an accrual for SEC settlement amounting to $20,000,000 in the previous year, which is not present in the current reporting period[32].

Core Insights - AssetMark Financial Holdings, Inc. reported a net income of $32.3 million, or $0.43 per share, for the second quarter of 2024, with adjusted net income of $49.8 million, or $0.66 per share, on total revenue of $198.5 million [2][3] - The company experienced a year-over-year increase in platform assets of 18.5%, reaching $119.4 billion, with quarterly net flows of $1.7 billion [2][3] - AssetMark signed a definitive agreement to be acquired by GTCR, with the transaction expected to close in Q4 2024, subject to customary closing conditions and regulatory approvals [2][5][6] Financial Performance - Adjusted EBITDA for the quarter was $71.9 million, representing 36.2% of total revenue, an increase from the previous year [2][3] - Total revenue increased by 13.1% year-over-year, from $175.5 million to $198.5 million [3][11] - The net income margin decreased to 16.3% from 18.7% year-over-year [3][11] Operational Metrics - Platform assets at the beginning of the period were $116.9 billion, up from $96.2 billion a year ago, reflecting a 21.5% increase [3] - The number of engaged advisors increased by 6.8% year-over-year, while total advisors decreased slightly by 0.8% [3] - The company added over 4,300 new households and 164 new producing advisors during the second quarter [2][3] Market Impact and Flows - Market impact net of fees for the quarter was $0.8 billion, a significant decrease of 72.7% compared to the previous year [3] - Year-to-date annualized net flows as a percentage of beginning-of-year platform assets were 6.1% [2][3] Cash Flow and Expenses - Cash and cash equivalents increased to $217.7 million from $189.7 million at the end of the previous period [9] - Total operating expenses rose to $151.4 million, up from $129.1 million year-over-year [11] - Capital expenditures for the quarter were $13 million, reflecting a 16.1% increase from the previous year [3][11]

Company Results - AssetMark Financial Holdings, Inc. reported platform assets of $119.4 billion at the end of June 2024, representing an 18.5% increase year-over-year [1][2] - Net flows for June 2024 were $397 million, which is a decrease of 36.4% year-over-year [1][2] - Client cash at AssetMark Trust Company was $2.93 billion, showing a slight decline of 0.3% year-over-year [1][2] - The number of households served by AssetMark increased by 5.4% year-over-year, reaching 261,341 at the end of June [1][2] Monthly Metrics - Platform assets increased from $100.8 billion in June 2023 to $119.4 billion in June 2024, reflecting a month-over-month change of 1.4% [2] - Net flows decreased from $624 million in June 2023 to $397 million in June 2024, indicating a month-over-month decline of 35.0% [2] - Ending client cash at AssetMark Trust Company was $2.93 billion in June 2024, a 3.2% increase from the previous month [2] Company Overview - AssetMark operates a wealth management platform that supports independent financial advisors and their clients, providing flexible solutions to enhance client engagement and efficiency [3] - The company was founded in 1996 and is based in Concord, California, employing over 1,000 individuals [3] - As of the first quarter of 2024, AssetMark had approximately $117 billion in platform assets [3]

CONCORD, Calif., July 10, 2024 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE: AMK) released its “AssetMark Monthly Knowledge” Report today. Company results for the month of June 2024 include: Platform assets of $119.4 billion at the end of June, up 18.5% year-over-year. Morningstar Wealth TAMP assets are not included in our total as the deal has been signed, but is not closed. Net flows were $397 million in the month of June, down 36.4% year-over-year. AssetMark Trust Company client cash was ...

AssetMark Financial Holdings Inc.'s (AMK) wholly-owned subsidiary AssetMark Inc. entered into a strategic coalition with Morningstar Wealth, a division of Morningstar Inc. (MORN) . The transaction, approved by the board of directors of both companies, is expected to be closed in the second half of 2024, subject to regulatory approvals. AssetMark will acquire roughly $12 billion in assets from Morningstar Wealth Turnkey Asset Management Platform ("TAMP") as part of the alliance. AssetMark's platform, which o ...

Core Insights - AssetMark, Inc. has announced a strategic alliance with Morningstar Wealth, acquiring approximately $12 billion in assets from Morningstar's Turnkey Asset Management Platform (TAMP) [1][3] - The alliance aims to enhance service offerings for financial advisors and clients, providing access to AssetMark's platform and a range of investment strategies [1][2] - The transaction is expected to close in the second half of 2024, pending regulatory approval and customary closing conditions [3] Company Overview - AssetMark Financial Holdings, Inc. operates a wealth management platform serving over 9,200 financial advisors and more than 257,000 investor households, with $116.9 billion in platform assets as of March 31, 2024 [5] - Morningstar Wealth offers a variety of investment services, including model portfolios and portfolio management software, with approximately $294 billion in assets under management and advisement [6][7] - The strategic alliance is seen as a significant milestone for both companies, combining their strengths to better serve financial advisors and their clients [2][5]

CONCORD, Calif., June 10, 2024 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE: AMK) released its “AssetMark Monthly Knowledge” Report today. Company results for the month of May 2024 include: Platform assets of $117.7 billion at the end of May, up 22.1% year-over-year.Net flows were $611 million in the month of May, down 4.1% year-over-year.AssetMark Trust Company client cash was $2.84 billion, down 3.7% year-over-year.Number of households increased 5.7% year-over-year to 260,756 at the end of ...