ALLIANCEBERNSTEIN HOLDING L.P. ANNOUNCES THIRD QUARTER RESULTS

Core Insights - AllianceBernstein reported strong financial and operational results for Q3 2025, with a focus on strategic objectives and partnerships [2][3] - The firm experienced net inflows of $1.7 billion, excluding $4.0 billion outflows related to a reinsurance transaction, driven by organic growth in tax-exempt and private alternative strategies [2][3] - The adjusted net income per unit increased by 12% to $0.86, while cash distribution per unit also rose by 11.7% to $0.86 [2][26] Financial Performance - Q3 2025 net revenues reached $1.137 billion, a 4.8% increase from Q3 2024, primarily due to higher investment advisory base fees [13][14] - Operating income for Q3 2025 was $283 million, down 22% from the previous year, with an operating margin of 24.3%, a decrease of 890 basis points [17] - Adjusted operating income increased by 15% to $302 million, with an adjusted operating margin of 34.2%, up 290 basis points from the prior year [25] Assets Under Management (AUM) - Total AUM as of September 30, 2025, was $860.1 billion, up $31.0 billion or 4% from June 30, 2025, and up $54.2 billion or 7% from September 30, 2024 [6][7] - The firm’s private markets AUM approached $80 billion, with a target of $90 to $100 billion by 2027 [2][3] Net Flows and Client Segments - Total net outflows for Q3 2025 were $2.3 billion, an improvement from $6.7 billion in Q2 2025 [8] - Retail channel net outflows decreased to $1.7 billion from $4.8 billion in the previous quarter, while institutional channel outflows were $1.8 billion [10][9] - The private wealth channel saw net inflows of $1.2 billion, marking its strongest organic growth in 10 quarters [3] Market Context - Global equity and fixed income markets showed positive performance in Q3 2025, with the S&P 500 Total Return at 8.1% [4][5] - The firm’s performance reflects a broader market recovery and improved demand dynamics in retail and institutional segments [3][4]