AssetMark Reports $119.4B Platform Assets for Second Quarter 2024

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]