Artisan Partners(APAM) - 2025 Q3 - Quarterly Results

Financial Performance - Artisan Partners reported a 7% increase in revenues from the previous quarter, reaching $301.3 million for Q3 2025[2]. - The operating margin improved to 34% for Q3 2025, with an adjusted operating margin of 36.2%[2][10]. - Artisan Partners' adjusted net income for Q3 2025 was $82.7 million, with adjusted net income per share at $1.02[10]. - Total revenues for the three months ended September 30, 2025, were $301.3 million, an increase of 6.5% from $282.8 million in the previous quarter[33]. - Management fees from Artisan Funds & Artisan Global Funds reached $192.5 million, up 7.9% from $179.6 million in the previous quarter[33]. - Operating income for the nine months ended September 30, 2025, was $268.1 million, compared to $257.5 million for the same period in 2024, reflecting a growth of 4.6%[33]. - Net income attributable to Artisan Partners Asset Management Inc. for the three months ended September 30, 2025, was $66.8 million, slightly down from $67.6 million in the previous quarter[33]. - Basic earnings per share for Class A common shares were $0.93 for the three months ended September 30, 2025, consistent with the previous quarter[33]. - Total operating expenses for the three months ended September 30, 2025, were $199.5 million, a decrease of 1.7% from $203.0 million in the previous quarter[33]. - Adjusted net income (Non-GAAP) for the three months ended September 30, 2025, was $82.7 million, an increase of 22.9% from $67.5 million in the previous quarter[35]. - Adjusted operating income (Non-GAAP) for the three months ended September 30, 2025, was $109.2 million, up from $89.6 million in the previous quarter, reflecting a 22% increase[35]. - Operating margin (GAAP) improved to 33.8% for the three months ended September 30, 2025, compared to 28.2% in the previous quarter[35]. - Provision for income taxes for the three months ended September 30, 2025, was $36.9 million, up from $24.9 million in the previous quarter[33]. Assets Under Management (AUM) - The company achieved a record quarter-end AUM of $181.3 billion, up from $175.5 billion in the previous quarter[4]. - As of September 30, 2025, total assets under management (AUM) reached $181,306 million, up from $167,840 million as of September 30, 2024, representing an increase of approximately 8.7% year-over-year[51]. - The average AUM for the three months ended September 30, 2025, was $177.413 billion, compared to $166.774 billion in the previous quarter[48]. - The beginning AUM for the quarter was $175.545 billion, with a significant increase in AUM attributed to investment returns[48]. - Gross client cash inflows for the three months ended September 30, 2025, were $6.084 billion, while gross client cash outflows totaled $8.413 billion, resulting in net client cash flows of -$2.329 billion[48]. - Gross client cash inflows for the nine months ended September 30, 2025, totaled $19,331 million, compared to $18,001 million for the same period in 2024, indicating a growth of about 7.4%[51]. - Net client cash flows for the nine months ended September 30, 2025, were negative at $(7,032) million, worsening from $(2,875) million in the prior year, reflecting a decline of approximately 144.7%[51]. - The beginning AUM for the nine months ended September 30, 2025, was $161,208 million, compared to $150,167 million in 2024, showing an increase of about 7.4%[51]. - Ending AUM for Artisan Funds was $88,040 million as of September 30, 2025, compared to $81,054 million in 2024, indicating a growth of approximately 8.3%[51]. - Ending AUM for separate accounts and other reached $93,266 million as of September 30, 2025, up from $86,786 million in 2024, representing an increase of about 7.0%[51]. Cash and Dividends - The company declared a variable quarterly dividend of $0.88 per share, representing approximately 80% of cash generated in the quarter[15]. - Artisan Partners' cash and cash equivalents increased to $300.2 million as of September 30, 2025, compared to $201.2 million at the end of 2024[11]. - Cash and cash equivalents increased to $300.2 million as of September 30, 2025, up from $201.2 million as of December 31, 2024[44]. Investment Strategies and Returns - Global Opportunities Strategy reported a 1-year return of 10.43% and a 3-year return of 19.57%[55]. - U.S. Mid-Cap Growth Strategy achieved a 1-year return of 22.48% and a 10-year return of 14.47%[55]. - Non-U.S. Growth Strategy delivered a 1-year return of 30.44% and a 3-year return of 26.56%[55]. - Developing World Strategy posted a 1-year return of 21.09% and a 3-year return of 29.38%[56]. - Global Value Strategy achieved a 1-year return of 21.11% and a 3-year return of 26.96%[56]. - High Income Strategy reported a 1-year return of 8.93% and a 3-year return of 12.08%[56]. - Credit Opportunities Strategy delivered a 1-year return of 15.53% and a 3-year return of 18.41%[56]. - Franchise Strategy recorded a 1-year return of 23.94% since inception[55]. - Global Equity Strategy achieved a 1-year return of 44.16% and a 3-year return of 31.49%[55]. Business Development and Strategy - Year-to-date, Artisan Partners raised $1 billion across five emerging markets-oriented strategies, with significant inflows into Select Equity and International Explorer strategies[5]. - Despite experiencing $2.3 billion in net outflows during the quarter, business-development momentum is improving for several strategies[5]. - The company plans to add new capabilities, particularly in alternatives, to diversify and grow the business[7]. - Artisan Partners continues to focus on attracting experienced investment professionals to manage client assets across diverse investment strategies[29].