Please note that nothing on this call represents an offer to sell or a solicitation of an offer to purchase interest in any of Hamilton Lane's products. Let's begin with the highlights. I'll start with our total asset footprint. At quarter end, our total asset footprint stood at just over $1 trillion and represents a 6% increase to our footprint year over year. While this number can and will swing quarter to quarter due to our AUA, it is worth noting that this is the first time the firm has crossed over the ...

Core Insights - Hamilton Lane reported mixed results for Q1 FY2026, with Non-GAAP EPS at $1.31, below the consensus estimate of $1.34, and GAAP revenue at $175.958 million, missing the projected $186.65 million [1][5] - The company experienced a 13% year-over-year decline in Non-GAAP EPS and a 14% drop in GAAP EPS, attributed to unpredictable incentive fee flows and lower revenue [1][5] - Despite the revenue shortfall, management highlighted growth in key asset metrics and strong Fee Related Earnings, which increased by 31% year-over-year to $83.7 million [1][6] Financial Performance - Non-GAAP EPS for Q1 FY2026 was $1.31, down 13% from $1.51 in Q1 FY2025 [2] - GAAP revenue fell to $175.958 million, a 5% decrease from $197 million in the previous year [2] - Fee Related Earnings margin improved to 51%, up from 45% a year ago, despite a 26% decrease in incentive fees [6] Asset Management - Assets under management (AUM) reached $140.9 billion, a 9% increase from the previous year, while assets under advisement (AUA) grew to $845.3 billion, a 4% increase [8] - Fee-earning assets under management increased by 10% to $74.4 billion, with specialized funds growing by 16% [8] Business Strategy - Hamilton Lane focuses on building long-term, fee-earning relationships, with management and advisory fees constituting the majority of recurring revenue [4] - The company has launched new products, including Evergreen funds and expanded its proprietary analytics platform, Cobalt LP [4][9] Segment Performance - Specialized funds saw a decline in fees year-over-year, while customized separate accounts posted modest fee growth of 3% [7] - Reporting, monitoring, data, and analytics fees increased by 20%, indicating a growing demand for technology-driven services [7] Future Outlook - Management emphasized a healthy fundraising pipeline and plans for growth in assets, although they did not provide explicit revenue or earnings guidance [12] - Key items for investors to monitor include trends in incentive and retroactive fee realization, which can impact quarterly performance [13]