What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-06 compared with 2025-08-07 · 246 added, 217 removed, 792 unchanged (37% of the section changed)

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This section also provides a Summary Results of Operations and information regarding our Assets Under Management by strategy, client type and client location, and net flows by segment, client type and client location.

GAAP Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024 includes an explanation of changes in our U.S.

GAAP revenue, expense and other items for the three and six months ended June 30, 2025 and 2024, as well as key U.S.

GAAP Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 includes an explanation of changes in our U.S.

GAAP revenue, expense and other items for the three and nine months ended September 30, 2025 and 2024, as well as key U.S.

GAAP operating metrics.

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This section also provides a reconciliation between U.S.

GAAP net income attributable to controlling interests and ENI for the three and six months ended June 30, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses.

GAAP net income attributable to controlling interests and ENI for the three and nine months ended September 30, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses.

This section also provides key non-GAAP operating metrics.

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Acadian LLC offers institutional investors across the globe access to a diversified array of systematic investment strategies designed to meet a range of risk and return objectives.

Acadian LLC is a leading systematic investment manager of active equity products, including global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies.

Acadian LLC comprises our Quant & Solutions reportable segment:

• Quant & Solutions —incorporates strategies that utilize advanced technology to collect and analyze data, aiming to identify mispriced assets and generate attractive risk-adjusted returns for investors;

portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies.

portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative capabilities.

This segment consists of our ownership interest in Acadian LLC.

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We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed required returns.

Approximately $20 billion, or 13%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee.

As of September 30, 2025, approximately $22 billion, or 13%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee.

The majority of these performance fees are calculated based on value added over the relevant benchmarks on a rolling one-year basis.

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Summary Results of Operations

The following table summarizes our unaudited results of operations for the three and six months ended June 30, 2025 and 2024:

($ in millions, unless otherwise noted) Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes our unaudited results of operations for the three and nine months ended September 30, 2025 and 2024:

($ in millions, unless otherwise noted) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 vs.

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GAAP financial information and a further discussion of economic net income refer to “Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis.”

(3) Excludes severance-related items of $(0.3) million for the three months ended June 30, 2025.

Excludes severance-related items of $(0.3) million, costs associated with the transfer of an insurance policy from our former parent of $0.4 million, and costs associated with the wind-down of the Multi-Asset Class Strategies, or “MACS” business in the standalone format of $1.3 million for the three months ended June 30, 2024.

Excludes severance-related items of $(0.5) million for the six months ended June 30, 2025.

Excludes severance-related items of $(0.5) million, costs associated with the transfer of an insurance policy from our former parent of $0.6 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million for the six months ended June 30, 2024.

(3) Excludes severance-related items of $(0.2) million for the three months ended September 30, 2025.

Excludes severance-related items of $(0.3) million and costs associated with the transfer of an insurance policy from our former parent of $0.3 million for the three months ended September 30, 2024.

Excludes severance-related items of $(0.7) million for the nine months ended September 30, 2025.

Excludes severance-related items of $(0.8) million, costs associated with the transfer of an insurance policy from our former parent of $0.9 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million for the nine months ended September 30, 2024.

(4) ENI revenue is the ENI measure which corresponds to U.S.

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In the AUM tables below, all periods have been reclassified to conform to the new presentation.

Our total assets under management were $151.1 billion as of June 30, 2025 and $117.3 billion as of December 31, 2024.

Our total assets under management were $166.4 billion as of September 30, 2025 and $117.3 billion as of December 31, 2024.

The following table presents our assets under management by strategy as of each of the dates indicated:

($ in billions) June 30, 2025 December 31, 2024

($ in billions) September 30, 2025 December 31, 2024

AUM % of total AUM % of total

Equity $ 35.3 21.2 % $ 26.6 22.7 %

Small Cap Equity 29.4 19.5 % 25.0 21.3 %

Enhanced Equity 34.2 20.6 % 10.8 9.2 %

Small Cap Equity 31.7 19.1 % 25.0 21.3 %

Global Equity 23.9 14.4 % 19.0 16.2 %

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The following table shows assets under management by client type as of each of the dates indicated:

($ in billions) June 30, 2025 December 31, 2024

($ in billions) September 30, 2025 December 31, 2024

AUM % of total AUM % of total

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The following table shows assets under management by client location as of each of the dates indicated:

($ in billions) June 30, 2025 December 31, 2024

($ in billions) September 30, 2025 December 31, 2024

AUM % of total AUM % of total

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Reinvested income and distributions represent investment yield that is reinvested back into the portfolios as opposed to distributed as cash.

The following table summarizes our asset flows and market appreciation (depreciation) by segment for each of the periods indicated:

Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes our asset flows and market appreciation by segment for each of the periods indicated:

Three Months Ended September 30, Nine Months Ended September 30,

($ in billions, unless otherwise noted) 2025 2024 2025 2024

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The following table summarizes our asset flows by client type for each of the periods indicated:

($ in billions) Three Months Ended June 30, Six Months Ended June 30,

($ in billions) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

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The following table summarizes asset flows by client location for each of the periods indicated:

($ in billions) Three Months Ended June 30, Six Months Ended June 30,

($ in billions) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

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Ending balance $ 166.4 $ 120.3 $ 166.4 $ 120.3

At June 30, 2025, our total assets under management were $151.1 billion, an increase of $29.2 billion, or 24.0%, compared to $121.9 billion at March 31, 2025 and an increase of $38.5 billion, or 34.2%, compared to $112.6 billion at June 30, 2024.

The increase in assets under management compared to June 30, 2024 was driven by the equity market appreciation and positive net client cash flows in the last twelve months.

The change in assets under management during the three months ended June 30, 2025 reflects net market appreciation of $15.4 billion, and net inflows of $13.8 billion.

At September 30, 2025, our total assets under management were $166.4 billion, an increase of $15.3 billion, or 10.1%, compared to $151.1 billion at June 30, 2025 and an increase of $46.1 billion, or 38.3%, compared to $120.3 billion at September 30, 2024.

The increase in assets under management compared to September 30, 2024 was driven by the equity market appreciation and positive net client cash flows in the last twelve months.

The change in assets under management during the three months ended September 30, 2025 reflects net market appreciation of $8.9 billion, and net inflows of $6.4 billion.

Market appreciation or depreciation reported in current and prior periods includes changes in equity prices, as well as the impact from exchange rate fluctuations on our foreign-denominated AUM.

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dollar changes relative to other currencies.

For the three months ended June 30, 2025, our net flows were $13.8 billion compared to $0.0 billion for the three months ended June 30, 2024.

Reinvested income and distributions of $0.8 billion are reflected in the net flows for each of the three months ended June 30, 2025 and June 30, 2024.

For the six months ended June 30, 2025, our net inflows were $17.6 billion compared to $0.4 billion for the six months ended June 30, 2024.

The change in net flows during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily driven by strong gross sales, which increased to $27.5 billion in the six months ended June 30, 2025.

Reinvested income and distributions of $1.6 billion and $1.6 billion are reflected in the net inflows for the six months ended June 30, 2025 and June 30, 2024, respectively.

GAAP Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024

GAAP results of operations were as follows for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

For the three months ended September 30, 2025, our net inflows were $6.4 billion compared to $0.5 billion for the three months ended September 30, 2024.

Reinvested income and distributions of $1.0 billion and $0.9 billion are reflected in the net flows for the three months ended September 30, 2025 and September 30, 2024, respectively.

For the nine months ended September 30, 2025, our net inflows were $24.0 billion compared to $0.9 billion for the nine months ended September 30, 2024.

The change in net flows during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily driven by strong gross inflows, which increased to $39.4 billion in the nine months ended September 30, 2025.

Reinvested income and distributions of $2.6 billion and $2.5 billion are reflected in the net inflows for the nine months ended September 30, 2025 and September 30, 2024, respectively.

Strategies representing 73%, 94%, 95%, and 94% of revenue were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2025.

As of September 30, 2025 the 5-year revenue weighted annualized return in excess of benchmark was 4.5%.

Assets representing 76%, 91%, 92%, and 90% of assets under management were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2025.

As of September 30, 2025 the 5-year asset weighted annualized return in excess of benchmark was 3.5%.

GAAP Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024

GAAP results of operations were as follows for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions, unless otherwise noted) 2025 2024 Increase

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Operating income 26.6 27.0 (0.4) 74.7 70.5 4.2

Investment income (loss) (0.2) 0.1 (0.3) 0.1 1.0 (0.9)

Investment income — 1.5 (1.5) 0.1 2.5 (2.4)

Interest income 0.9 0.6 0.3 2.8 2.8 —

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($ in millions) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

GAAP Consolidated Statements of Operations

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Our effective management fee rate will vary from period to period based on several factors, including changes in the mix of assets under management caused by market movements and client flows.

Average basis points earned on average assets under management were 37.0 bps and 37.3 bps for the three and six months ended June 30, 2025, respectively, and 38.5 bps and 38.3 bps for the three and six months ended June 30, 2024, respectively.

The overall weighted average fee rate decrease for the three and six months ended June 30, 2025 is the result of changes in the mix of assets under management caused by client flows and market movements.

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Management fees increased $16.8 million, or 15.9%, from $105.5 million for the three months ended June 30, 2024 to $122.3 million for the three months ended June 30, 2025.

Average basis points earned on average assets under management were 34.5 bps and 36.5 bps for the three and nine months ended September 30, 2025, respectively, and 38.3 bps and 38.4 bps for the three and nine months ended September 30, 2024, respectively.

The overall weighted average fee rate decrease for the three and nine months ended September 30, 2025 is the result of changes in the mix of assets under management caused by client flows and market movements.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Management fees increased $24.0 million, or 21.4%, from $112.1 million for the three months ended September 30, 2024 to $136.1 million for the three months ended September 30, 2025.

The increase was mainly driven by higher levels of average assets under management.

Average assets under management increased 20.0%, from $110.3 billion for the three months ended June 30, 2024 to $132.4 billion for the three months ended June 30, 2025, mainly due to the positive equity market impact in the past twelve months.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Management fees increased $27.5 million, or 13.2%, from $207.7 million for the six months ended June 30, 2024 to $235.2 million for the six months ended June 30, 2025.

Average assets under management increased 34.5%, from $116.4 billion for the three months ended September 30, 2024 to $156.5 billion for the three months ended September 30, 2025, mainly due to the positive equity market and strong net inflows in the past twelve months.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Management fees increased $51.5 million, or 16.1%, from $319.8 million for the nine months ended September 30, 2024 to $371.3 million for the nine months ended September 30, 2025.

The increase was primarily driven by higher levels of average assets under management.

Average assets under management increased 16.7%, from $109.0 billion for the six months ended June 30, 2024 to $127.2 billion for the six months ended June 30, 2025, mainly due to the positive equity market and positive net flows in the past twelve months.

Average assets under management increased 23.3%, from $110.8 billion for the nine months ended September 30, 2024 to $136.6 billion for the nine months ended September 30, 2025, mainly due to the positive equity market and positive net flows in the past twelve months.

Performance Fees

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Performance fees are typically shared with key employees through various contractual compensation and profit-sharing arrangements.

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Performance fees decreased $(0.2) million, or (7.1)%, from $2.8 million for the three months ended June 30, 2024 to $2.6 million for the three months ended June 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies.

Performance fees can be variable and are contractually triggered based on investment performance results over agreed upon time periods.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Performance fees increased $2.0 million, or 33.9%, from $5.9 million for the six months ended June 30, 2024 to $7.9 million for the six months ended June 30, 2025, primarily due to strong performance relative to benchmarks in certain strategies.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Performance fees decreased $(9.9) million, or (98.0)%, from $10.1 million for the three months ended September 30, 2024 to $0.2 million for the three months ended September 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies.

Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Performance fees decreased $(7.9) million, or (49.4)%, from $16.0 million for the nine months ended September 30, 2024 to $8.1 million for the nine months ended September 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies.

Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.

GAAP Expenses

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The following table presents the components of U.S.

GAAP compensation expense for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

GAAP compensation expense for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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Non-cash variable compensation awards typically vest over several years and are recognized as compensation expense over that service period.

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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$ 31.8 $ 29.4 $ 93.6 $ 83.7

(a) For the three and six months ended June 30, 2025, $31.9 million and $62.3 million, respectively, of variable compensation expense (of the $31.6 million and $61.8 million above) is included within economic net income.

The three and six months ended June 30, 2025 excludes $(0.3) million and $(0.5) million, respectively, of variable compensation associated with restructuring.

For the three and six months ended June 30, 2024, $27.4 million and $54.0 million, respectively, of variable compensation expense (of the $27.9 million and $54.3 million above) is included with economic net income.

The three months ended June 30, 2024 excludes $(0.3) million of severance-related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.

The six months ended June 30, 2024 excludes $(0.5) million of severance related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.

(a) For the three and nine months ended September 30, 2025, $32.1 million and $94.4 million, respectively, of variable compensation expense (of the $31.8 million and $93.6 million above) is included within economic net income.

The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of variable compensation associated with restructuring.

For the three and nine months ended September 30, 2024, $29.6 million and $83.6 million, respectively, of variable compensation expense (of the $29.4 million and $83.7 million above) is included with economic net income.

The three months ended September 30, 2024 excludes $(0.3) million of severance-related items at Acadian LLC.

The nine months ended September 30, 2024 excludes $(0.8) million of severance related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.

(4) Acadian LLC key employee distributions represent the share of Acadian LLC profits after variable compensation that is attributable to key employee equity and profit interests holders, according to their ownership interests.

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Fluctuations in compensation and benefits expense for the periods presented are discussed below.

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Compensation and benefits expense increased $21.6 million, or 34.7%, from $62.2 million for the three months ended June 30, 2024 to $83.8 million for the three months ended June 30, 2025.

Fixed compensation and benefits increased $0.7 million, or 2.9%, from $24.3 million for the three months ended June 30, 2024 to $25.0 million for the three months ended June 30, 2025, primarily reflecting cost of living increases.

Variable compensation increased $3.7 million, or 13.3%, from $27.9 million for the three months ended June 30, 2024 to $31.6 million for the three months ended June 30, 2025.

The increase was primarily attributable to higher pre-bonus profits in the three months ended June 30, 2025.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Compensation and benefits expense increased $15.1 million, or 21.7%, from $69.6 million for the three months ended September 30, 2024 to $84.7 million for the three months ended September 30, 2025.

Fixed compensation and benefits increased $3.5 million, or 14.3%, from $24.5 million for the three months ended September 30, 2024 to $28.0 million for the three months ended September 30, 2025, primarily reflecting cost of living increases, higher payroll taxes and benefits.

Variable compensation increased $2.4 million, or 8.2%, from $29.4 million for the three months ended September 30, 2024 to $31.8 million for the three months ended September 30, 2025.

The increase was primarily attributable to higher pre-bonus profits in the three months ended September 30, 2025.

The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings.

Sales-based compensation increased $1.5 million, or 75.0%, from $2.0 million for the three months ended June 30, 2024 to $3.5 million for the three months ended June 30, 2025, driven by the increase in asset inflows.

Acadian LLC key employee distributions increased $1.9 million, or 90.5%, from $2.1 million for the three months ended June 30, 2024 to $4.0 million for the three months ended June 30, 2025.

Sales-based compensation increased $0.1 million, or 3.0%, from $3.3 million for the three months ended September 30, 2024 to $3.4 million for the three months ended September 30, 2025, driven by the increase in asset inflows.

Acadian LLC key employee distributions increased $2.1 million, or 67.7%, from $3.1 million for the three months ended September 30, 2024 to $5.2 million for the three months ended September 30, 2025.

Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold.

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For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold.

The change in the revaluation in the three months ended June 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Compensation and benefits expense increased $24.3 million, or 20.2%, from $120.3 million for the six months ended June 30, 2024 to $144.6 million for the six months ended June 30, 2025.

Fixed compensation and benefits increased $1.5 million, or 3.1%, from $47.8 million for the six months ended June 30, 2024 to $49.3 million for the six months ended June 30, 2025, primarily reflecting cost of living increases.

Variable compensation increased $7.5 million, or 13.8%, from $54.3 million for the six months ended June 30, 2024 to $61.8 million for the six months ended June 30, 2025.

The increase was primarily attributable to higher pre-bonus profits in the six months ended June 30, 2025.

The change in the revaluation in the three months ended September 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Compensation and benefits expense increased $39.4 million, or 20.7%, from $189.9 million for the nine months ended September 30, 2024 to $229.3 million for the nine months ended September 30, 2025.

Fixed compensation and benefits increased $5.0 million, or 6.9%, from $72.3 million for the nine months ended September 30, 2024 to $77.3 million for the nine months ended September 30, 2025, primarily reflecting cost of living increases, higher payroll taxes and benefits.

Variable compensation increased $9.9 million, or 11.8%, from $83.7 million for the nine months ended September 30, 2024 to $93.6 million for the nine months ended September 30, 2025.

The increase was primarily attributable to higher pre-bonus profits in the nine months ended September 30, 2025.

The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings.

Sales-based compensation increased $3.4 million or 94.4% from $3.6 million for the six months ended June 30, 2024 to $7.0 million for the six months ended June 30, 2025, driven by the increase in asset inflows.

Acadian LLC key employee distributions increased $2.8 million, or 65.1%, from $4.3 million for the six months ended June 30, 2024 to $7.1 million for the six months ended June 30, 2025.

Sales-based compensation increased $3.5 million or 50.7% from $6.9 million for the nine months ended September 30, 2024 to $10.4 million for the nine months ended September 30, 2025, driven by the increase in asset inflows.

Acadian LLC key employee distributions increased $4.9 million, or 66.2%, from $7.4 million for the nine months ended September 30, 2024 to $12.3 million for the nine months ended September 30, 2025.

The change in Acadian LLC key employee distributions during the six months ended June 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share.

The change in Acadian LLC key employee distributions during the nine months ended September 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share.

Revaluations of Acadian LLC equity changed by $16.1 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC.

For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold.

The change in the revaluation in the six months ended June 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.

The change in the revaluation in the nine months ended September 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.

General and Administrative Expense

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

General and administrative expense increased $0.7 million, or 3.3%, from $21.1 million for the three months ended June 30, 2024 to $21.8 million for the three months ended June 30, 2025.

The increase in general and administrative expenses primarily reflects higher systems, recruiting and consulting costs, partially offset by the impact of foreign currency changes.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

General and administrative expense increased $3.0 million, or 7.3%, from $41.1 million for the six months ended June 30, 2024 to $44.1 million for the six months ended June 30, 2025.

The increase was primarily due to higher systems, recruiting and outside services costs, partially offset by the impact of foreign currency changes.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

General and administrative expense increased $1.7 million, or 7.8%, from $21.8 million for the three months ended September 30, 2024 to $23.5 million for the three months ended September 30, 2025.

The increase in general and administrative expenses primarily reflects higher portfolio administrative, consulting, and system costs, partially offset by the impact of foreign currency changes.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

General and administrative expense increased $4.7 million, or 7.5%, from $62.9 million for the nine months ended September 30, 2024 to $67.6 million for the nine months ended September 30, 2025.

The increase was primarily due to higher system, recruiting, portfolio administrative, and consulting costs, partially offset by the impact of foreign currency changes.

Depreciation and Amortization Expense

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Depreciation and amortization expense decrease $(0.8) million, or (16.0)% from $5.0 million for the three months ended June 30, 2024 to $4.2 million for the three months ended June 30, 2025.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Depreciation and amortization expense decreased $(0.4) million, or (8.9)% from $4.5 million for the three months ended September 30, 2024 to $4.1 million for the three months ended September 30, 2025.

The decrease was primarily attributable to the effect of certain software becoming fully depreciated.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Depreciation and amortization expense decreased $(1.2) million, or (12.5)%, from $9.6 million for the six months ended June 30, 2024 to $8.4 million for the six months ended June 30, 2025.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Depreciation and amortization expense decreased $(1.6) million, or (11.3)%, from $14.1 million for the nine months ended September 30, 2024 to $12.5 million for the nine months ended September 30, 2025.

The decrease was primarily attributable to the effect of certain software becoming fully depreciated.

4 unchanged sentences

interest expense.

Investment Income (loss)

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Investment income (loss) changed $(0.3) million, from $0.1 million for the three months ended June 30, 2024 to $(0.2) million for the three months ended June 30, 2025, reflecting the change in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Investment income decreased $(0.9) million, or (90.0)%, from $1.0 million for the six months ended June 30, 2024 to $0.1 million for the six months ended June 30, 2025, reflecting a decrease in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Investment Income

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Investment income decreased $(1.5) million, from $1.5 million for the three months ended September 30, 2024 to $0.0 million for the three months ended September 30, 2025, reflecting the change in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Investment income decreased $(2.4) million, or (96.0)%, from $2.5 million for the nine months ended September 30, 2024 to $0.1 million for the nine months ended September 30, 2025, reflecting a decrease in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Interest Income

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Interest income decreased $(0.1) million, or (11.1)% from $0.9 million for the three months ended June 30, 2024 compared to $0.8 million for the three months ended June 30, 2025.

The decrease reflects the change in short-term investment returns in the three months ended June 30, 2025.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Interest income decreased $(0.3) million, or (13.6)%, from $2.2 million for the six months ended June 30, 2024 compared to $1.9 million for the six months ended June 30, 2025.

The decrease was due to the change in short-term investment returns in the six months ended June 30, 2025.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Interest income increased $0.3 million, or 50.0% from $0.6 million for the three months ended September 30, 2024 compared to $0.9 million for the three months ended September 30, 2025.

The increase reflects the change in short-term investment returns in the three months ended September 30, 2025.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Interest income remained flat at $2.8 million for both the nine months ended September 30, 2024 and September 30, 2025, respectively.

Interest Expense

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Interest expense remained flat at $5.3 million for both the three months ended June 30, 2024 and June 30, 2025, respectively.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Interest expense decreased $(0.2) million, or (1.9)%, from $10.3 million for the six months ended June 30, 2024 compared to $10.1 million for the six months ended June 30, 2025, reflecting a decrease in interest rates on the revolving credit facility in the six months ended June 30, 2025.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Interest expense decreased $(0.1) million, or (2.1)%, from $(4.7) million for the three months ended September 30, 2024 compared to $(4.6) million for the three months ended September 30, 2025, reflecting a lower balance drawn on the revolving credit facility in the three months ended September 30, 2025.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Interest expense decreased $(0.3) million, or (2.0)%, from $15.0 million for the nine months ended September 30, 2024 compared to $14.7 million for the nine months ended September 30, 2025, reflecting a lower balance drawn on the revolving credit facility in the nine months ended September 30, 2025.

GAAP Income Tax Expense

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Our effective tax rate could be impacted in the future by these items as well as further changes in tax laws and regulations in jurisdictions in which we operate.

On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act, was enacted in the U.S., which includes a broad range of tax reform provisions, including extending and modifying certain key Tax Cuts and Jobs Act provisions (both domestic and international).

On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”), was enacted in the U.S., which includes a broad range of tax reform provisions, including extending and modifying certain key Tax Cuts and Jobs Act provisions (both domestic and international).

The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027.

We continue to evaluate the full effects of the legislation on our estimated annual effective tax rate and cash tax position.

As the legislation was signed into law after June 30, 2025, it had no impact on our operating results for the three months and six months ended June 30, 2025.

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Income tax expense decreased $(1.1) million, from $5.6 million for the three months ended June 30, 2024 to $4.5 million for the three months ended June 30, 2025.

The decrease in income tax expense primarily relates to a decrease in pretax income attributable to controlling interest partially offset by an increase in the disallowance of executive compensation deduction in the three months ended June 30, 2025.

Six months ended June 30, 2025 compared to six months ended June 30, 2024 :

Income tax expense increased $1.1 million, from $11.7 million for the six months ended June 30, 2024 to $12.8 million for the six months ended June 30, 2025.

The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interest in the six months ended June 30, 2025.

The OBBBA did not have a material impact to the income tax expense during the current period.

We will continue to evaluate the impact of the legislative changes on future periods as additional guidance becomes available.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Income tax expense decreased $(2.0) million, from $9.4 million for the three months ended September 30, 2024 to $7.4 million for the three months ended September 30, 2025.

The decrease in income tax expense primarily relates to a decrease in both pretax income attributable to controlling interest and state tax expense in the three months ended September 30, 2025.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024 :

Income tax expense decreased $(0.9) million, from $21.1 million for the nine months ended September 30, 2024 to $20.2 million for the nine months ended September 30, 2025.

The decrease in income tax expense primarily relates to a decrease in state tax expense, partially offset by an increase in pretax income attributable to controlling interest in the nine months ended September 30, 2025.

GAAP Consolidated Funds

The net income or loss of all consolidated Funds, excluding any income or loss attributable to seed capital or co-investments we make in the Funds, is included in non-controlling interests in our Consolidated Financial Statements and is not included in net income attributable to controlling interests or in management fees.

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Consolidated Funds’ revenue increased $1.8 million, from $0.7 million for the three months ended June 30, 2024 to $2.5 million for the three months ended June 30, 2025.

Consolidated Funds’ expense increased $1.3 million, from $0.1 million for the three months ended June 30, 2024 to $1.4 million for the three months ended June 30, 2025.

Net consolidated Funds’ investment gain increased $11.3 million from $0.8 million for the three months ended June 30, 2024 to $12.1 million for the three months ended June 30, 2025.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Consolidated Funds’ revenue increased $7.0 million, from $0.9 million for the three months ended September 30, 2024 to $7.9 million for the three months ended September 30, 2025.

Consolidated Funds’ expense increased $5.1 million, from $0.2 million for the three months ended September 30, 2024 to $5.3 million for the three months ended September 30, 2025.

Net consolidated Funds’ investment gain increased $7.5 million from $4.0 million for the three months ended September 30, 2024 to $11.5 million for the three months ended September 30, 2025.

These movements relate to the underlying activity of our consolidated Funds.

Six months ended June 30, 2025 compared to six months ended June 30, 2024 :

Consolidated Funds’ revenue increased $3.1 million, from $1.1 million for the six months ended June 30, 2024 to $4.2 million for the six months ended June 30, 2025.

Consolidated Funds’ expense increased $1.9 million, from $0.2 million for the six months ended June 30, 2024 to $2.1 million for the six months ended June 30, 2025.

Net consolidated Funds’ investment gain increased $13.2 million from $2.5 million for the six months ended June 30, 2024 to $15.7 million for the six months ended June 30, 2025.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024 :

Consolidated Funds’ revenue increased $10.1 million, from $2.0 million for the nine months ended September 30, 2024 to $12.1 million for the nine months ended September 30, 2025.

Consolidated Funds’ expense increased $7.0 million, from $0.4 million for the nine months ended September 30, 2024 to $7.4 million for the nine months ended September 30, 2025.

Net consolidated Funds’ investment gain increased $20.7 million from $6.5 million for the nine months ended September 30, 2024 to $27.2 million for the nine months ended September 30, 2025.

These movements relate to the underlying activity of our consolidated Funds.

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The following table shows our key U.S.

GAAP operating metrics for the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30, Six Months Ended June 30,

GAAP operating metrics for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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$ 5.2 $ 3.1 $ 12.3 $ 7.4

Operating income before Acadian key employee distributions (2)(4)(5)

Operating income before Acadian LLC key employee distributions (2)(4)(5)

$ 29.2 $ 29.4 $ 82.3 $ 76.3

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(1) Excluding the effect of Funds’ consolidation in the applicable periods, the U.S.

GAAP operating margin is 12.1% for the three months ended June 30, 2025, 18.5% for the three months ended June 30, 2024, 18.9% for the six months ended June 30, 2025, and 19.9% for the six months ended June 30, 2024.

(2) Excludes consolidated Funds’ expense of $1.4 million for the three months ended June 30, 2025, $0.1 million for the three months ended June 30, 2024, $2.1 million for the six months ended June 30, 2025, and $0.2 million for the six months ended June 30, 2024.

(3) Excludes the effect of Funds consolidation for the three and six months ended June 30, 2025 and 2024.

(4) Excludes consolidated Funds’ revenue of $2.5 million for the three months ended June 30, 2025, $0.7 million for the three months ended June 30, 2024, $4.2 million for the six months ended June 30, 2025, and $1.1 million for the six months ended June 30, 2024.

GAAP operating margin is 17.6% for the three months ended September 30, 2025, 21.5% for the three months ended September 30, 2024, 18.5% for the nine months ended September 30, 2025, and 20.5% for the nine months ended September 30, 2024.

(2) Excludes consolidated Funds’ expense of $5.3 million for the three months ended September 30, 2025, $0.2 million for the three months ended September 30, 2024, $7.4 million for the nine months ended September 30, 2025, and $0.4 million for the nine months ended September 30, 2024.

(3) Excludes the effect of Funds consolidation for the three and nine months ended September 30, 2025 and 2024.

(4) Excludes consolidated Funds’ revenue of $7.9 million for the three months ended September 30, 2025, $0.9 million for the three months ended September 30, 2024, $12.1 million for the nine months ended September 30, 2025, and $2.0 million for the nine months ended September 30, 2024.

(5) The following table identifies the components of operating income before variable compensation and Acadian LLC key employee distributions, as well as operating income before Acadian LLC key employee distributions:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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Reconciliation of U.S.

GAAP Net Income to Economic Net Income for the Three and Six Months Ended June 30, 2025 and 2024

The following table reconciles net income attributable to controlling interests to economic net income for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

GAAP Net Income to Economic Net Income for the Three and Nine Months Ended September 30, 2025 and 2024

The following table reconciles net income attributable to controlling interests to economic net income for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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$ 27.2 $ 22.2 $ 70.4 $ 56.8

(1) The net return on seed/co-investment (gains) losses and financings for the three and six months ended June 30, 2025 and 2024 is shown in the following table:

Three Months Ended June 30, Six Months Ended June 30,

(1) The net return on seed/co-investment (gains) losses and financings for the three and nine months ended September 30, 2025 and 2024 is shown in the following table:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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* The blended rate is based on the weighted average rate of the long-term debt.

(2) The three months ended June 30, 2025 includes severance-related items of $(0.3) million.

The three months ended June 30, 2024 includes severance-related items of $(0.3) million, costs associated with the transfer of an insurance policy from our former parent of $0.4 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.

The six months ended June 30, 2025 includes severance-related items of $(0.5) million.

The six months ended June 30, 2024 includes severance-related items of $(0.5) million, costs associated with the transfer of an insurance policy from our former parent of $0.6 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.

(2) The three months ended September 30, 2025 includes severance-related items of $(0.2) million.

The three months ended September 30, 2024 includes severance-related items of $(0.3) million and costs associated with the transfer of an insurance policy from our former parent of $0.3 million.

The nine months ended September 30, 2025 includes severance-related items of $(0.7) million.

The nine months ended September 30, 2024 includes severance-related items of $(0.8) million, costs associated with the transfer of an insurance policy from our former parent of $0.9 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.

(3) Reflects the sum of lines (i), (ii), (iii), (iv) and the restructuring component of line (vi) multiplied by the 27.3% U.S.

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The following table reconciles U.S.

GAAP revenue to ENI revenue for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

GAAP revenue to ENI revenue for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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The following table identifies the components of ENI revenue:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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The following table reconciles U.S.

GAAP operating expense to ENI operating expense for the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30, Six Months Ended June 30,

GAAP operating expense to ENI operating expense for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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ENI operating expense $ 58.9 $ 53.9 $ 167.8 $ 154.9

(1) The three months ended June 30, 2025 includes $(0.3) million of severance-related items.

The three months ended June 30, 2024 includes $(0.3) million of severance-related items, $0.4 million costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.

The six months ended June 30, 2025 includes $(0.5) million of severance-related items.

The six months ended June 30, 2024 includes $(0.5) million of severance-related items, $0.6 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.

(2) The three and six months ended June 30, 2025 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that is included within restructuring costs.

The three and six months ended June 30, 2024 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that is included within restructuring costs.

Each of the three and six months ended June 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format that is included with restructuring costs.

(1) The three months ended September 30, 2025 includes $(0.2) million of severance-related items.

The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million costs associated with the transfer of an insurance policy from our former parent.

The nine months ended September 30, 2025 includes $(0.7) million of severance-related items.

The nine months ended September 30, 2024 includes $(0.8) million of severance-related items, $0.9 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.

(2) The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that is included within restructuring costs.

The three and nine months ended September 30, 2024 excludes $(0.3) million and $(0.8) million, respectively, of severance-related items that is included within restructuring costs.

The nine months ended September 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format that is included with restructuring costs.

The following table identifies the components of ENI operating expense:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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The following table reconciles U.S.

GAAP compensation and benefits expense for the three and six months ended June 30, 2025 and 2024 to ENI fixed compensation and benefits expense:

Three Months Ended June 30, Six Months Ended June 30,

GAAP compensation and benefits expense for the three and nine months ended September 30, 2025 and 2024 to ENI fixed compensation and benefits expense:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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ENI fixed compensation and benefits $ 28.0 $ 24.5 $ 77.3 $ 72.3

(a) The three and six months ended June 30, 2025 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that is included within restructuring costs.

The three and six months ended June 30, 2024 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that is included within restructuring costs.

(a) The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that is included within restructuring costs.

The three and nine months ended September 30, 2024 excludes $(0.3) million and $(0.8) million, respectively, of severance-related items that is included within restructuring costs.

The nine months ended September 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format that is included with restructuring costs.

(2) The following table reconciles U.S.

GAAP general and administrative expense to ENI general and administrative expense:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

5 unchanged sentences

ENI general and administrative expense $ 26.8 $ 24.9 $ 78.0 $ 68.9

(a) Reflects $0.4 million and $0.6 million, respectively, of costs associated with the transfer of an insurance policy from our former parent for the three and six months ended June 30, 2024.

(a) Reflects $0.3 million and $0.9 million, respectively, of costs associated with the transfer of an insurance policy from our former parent for the three and nine months ended September 30, 2024.

Key Non-GAAP Operating Metrics

The following table shows our key non-GAAP operating metrics for the three and six months ended June 30, 2025 and 2024.

The following table shows our key non-GAAP operating metrics for the three and nine months ended September 30, 2025 and 2024.

We present these metrics because they are the measures our management uses to evaluate the profitability of our business and are useful to investors because they represent the key drivers and measures of economic performance within our business model.

1 unchanged sentence

GAAP measure:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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GAAP operating income to ENI operating earnings:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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ENI earnings after Acadian LLC key employee distributions $ 40.1 $ 35.6 $ 104.9 $ 89.9

(a) The three months ended June 30, 2025 includes $(0.3) million of severance-related items.

The six months ended June 30, 2025 includes $(0.5) million of severance-related items.

(b) The three and six months ended June 30, 2025 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that are included within restructuring costs.

The three and six months ended June 30, 2024 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that are included within restructuring costs.

Each of the three and six months ended June 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.

(a) The three months ended September 30, 2025 includes $(0.2) million of severance-related items.

The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million costs associated with the transfer of an insurance policy from our former parent.

The nine months ended September 30, 2025 includes $(0.7) million of severance-related items.

The nine months ended September 30, 2024 includes $(0.8) million of severance-related items, $0.9 million of costs associated with the transfer of an insurance policy from our former parent, and $1.3 million of costs associated with the wind-down of the MACS business in the standalone format.

(b) The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that are included within restructuring costs.

The three and nine months ended September 30, 2024 excludes $(0.3) million and $(0.8) million, respectively, of severance-related items that are included within restructuring costs.

The nine months ended September 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.

(2) The ENI operating margin, which is calculated before Acadian LLC key employee distributions, is used by management and is useful to investors to evaluate the overall operating margin of the business.

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GAAP operating margin.

GAAP operating margin, excluding the effect of consolidated Funds, is 12.1% for the three months ended June 30, 2025, 18.5% for the three months ended June 30, 2024, 18.9% for the six months ended June 30, 2025, and 19.9% for the six months ended June 30, 2024.

GAAP operating margin, excluding the effect of consolidated Funds, is 17.6% for the three months ended September 30, 2025, 21.5% for the three months ended September 30, 2024, 18.5% for the nine months ended September 30, 2025, and 20.5% for the nine months ended September 30, 2024.

The ENI operating margin is important because it gives investors an understanding of the profitability of the total business relative to revenue, irrespective of the ownership position which we have in Acadian LLC.

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The following table reconciles the United States statutory tax to tax on economic net income:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

10 unchanged sentences

(1) Includes interest income and third-party ENI interest expense, as shown in the following table:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

15 unchanged sentences

(3) The economic net income effective tax rate is calculated by dividing the tax on economic net income by pre-tax economic net income.

The value of our seed capital investments was $95.2 million as of June 30, 2025 and $90.3 million as of December 31, 2024, including direct investments in consolidated Funds.

The value of our seed capital investments was $95.1 million as of September 30, 2025 and $90.3 million as of December 31, 2024, including direct investments in consolidated Funds.

Total seed capital investments represents our seed capital invested within Acadian LLC’s investment products.

The following table reconciles the investments balance per our Condensed Consolidated Balance Sheets to the total value of our seed capital investments as of each of the dates indicated:

($ in millions) June 30,

($ in millions) September 30,

2025 December 31,

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portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies.

portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative capabilities.

This segment consists of our ownership interest in Acadian LLC.

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Segment ENI Revenue

The following table identifies the components of Quant & Solutions segment ENI revenue for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

The following table identifies the components of Quant & Solutions segment ENI revenue for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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Quant & Solutions Segment ENI Revenue

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Quant & Solutions ENI revenue increased $16.6 million, or 15.3%, from $108.3 million for the three months ended June 30, 2024 to $124.9 million for the three months ended June 30, 2025.

The increase was mainly attributable to 15.9% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, slightly offset by (7.1)% lower performance fees.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Quant & Solutions ENI revenue increased $29.5 million, or 13.8%, from $213.6 million for the six months ended June 30, 2024 to $243.1 million for the six months ended June 30, 2025.

The increase was attributable to 13.2% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, and 33.9% higher performance fees due to strong performance relative to market in certain strategies in the six months ended June 30, 2025.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Quant & Solutions ENI revenue increased $14.1 million, or 11.5%, from $122.2 million for the three months ended September 30, 2024 to $136.3 million for the three months ended September 30, 2025.

The increase was mainly attributable to 21.4% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, offset by (98.0)% lower performance fees, which are variable and are contractually triggered based on investment performance results over agreed upon time periods.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Quant & Solutions ENI revenue increased $43.6 million, or 13.0%, from $335.8 million for the nine months ended September 30, 2024 to $379.4 million for the nine months ended September 30, 2025.

The increase was attributable to 16.1% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, offset by (49.4)% lower performance fees, which are variable and are contractually triggered based on investment performance results over agreed upon time periods.

Segment ENI Expense

The following table identifies the components of Quant & Solutions segment ENI expense for the three and six months ended June 30, 2025 and 2024:

($ in millions) Three Months Ended June 30, Six Months Ended June 30,

The following table identifies the components of Quant & Solutions segment ENI expense for the three and nine months ended September 30, 2025 and 2024:

($ in millions) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

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Quant & Solutions Segment ENI Expense

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Quant & Solutions segment ENI expenses increased $9.0 million, or 11.7%, from $76.6 million for the three months ended June 30, 2024 to $85.6 million for the three months ended June 30, 2025.

Quant & Solutions ENI fixed compensation and benefits expense increased 3.5%, reflecting cost of living increases.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Quant & Solutions segment ENI expenses increased $10.1 million, or 12.3%, from $82.0 million for the three months ended September 30, 2024 to $92.1 million for the three months ended September 30, 2025.

Quant & Solutions ENI fixed compensation and benefits expense increased 16.3%, reflecting cost of living increases, higher payroll taxes and employee benefits.

Quant & Solutions ENI variable compensation expense is based on contractual percentage of earnings before variable compensation, and also includes a formulaic split of performance fee revenue that gets deferred and recognized as variable compensation expense over a three-year vesting period.

The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings.

Quant & Solutions ENI variable compensation expense increased 14.9% as a result of higher earnings before variable compensation, and changes in deferred compensation expense earned on current and prior year performance fee revenues in the three months ended June 30, 2025.

Quant & Solutions ENI variable compensation expense increased 7.2% as a result of higher earnings before variable compensation, and changes in deferred compensation expense earned on current and prior year performance fee revenues in the three months ended September 30, 2025.

Acadian LLC key employee distributions attributable to Quant & Solutions increased 67.7%.

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The change in Acadian LLC key employee distributions during the current period is driven by higher operating earnings and the leveraged nature of this distribution share.

Quant & Solutions ENI general and administrative expense increased 13.2%, reflecting higher systems and consultants costs, partially offset by the impact of foreign currency changes.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Quant & Solutions segment ENI expenses increased $18.4 million, or 12.2%, from $150.5 million for the six months ended June 30, 2024 to $168.9 million for the six months ended June 30, 2025.

Quant & Solutions ENI fixed compensation and benefits expense increased 4.8%, reflecting cost of living increases.

Quant & Solutions ENI general and administrative expense increased 11.5%, reflecting higher portfolio administrative, consulting and system costs, partially offset by the impact of foreign currency changes.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Quant & Solutions segment ENI expenses increased $28.5 million, or 12.3%, from $232.5 million for the nine months ended September 30, 2024 to $261.0 million for the nine months ended September 30, 2025.

Quant & Solutions ENI fixed compensation and benefits expense increased 8.7%, reflecting cost of living increases, higher payroll taxes and employee benefits.

The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings.

Quant & Solutions ENI variable compensation expense increased 14.0% as a result of higher earnings before variable compensation, and changes in deferred compensation expense earned on current and prior year performance fee revenues in the six months ended June 30, 2025.

Quant & Solutions ENI variable compensation expense increased 11.6% as a result of higher earnings before variable compensation, and changes in deferred compensation expense earned on current and prior year performance fee revenues in the nine months ended September 30, 2025.

Acadian LLC key employee distributions attributable to Quant & Solutions increased 66.2%.

The change in Acadian LLC key employee distributions during the six months ended June 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share.

Quant & Solutions ENI general and administrative expense increased 17.3% primarily due to higher systems and consulting costs, partially offset by the impact of foreign currency changes.

The change in Acadian LLC key employee distributions during the nine months ended September 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share.

Quant & Solutions ENI general and administrative expense increased 15.2% primarily due to higher sales-based compensation, system, recruiting, portfolio administrative, and consulting costs, partially offset by the impact of foreign currency changes.

Unallocated corporate expense

The following table identifies unallocated corporate expense for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

The following table identifies unallocated corporate expense for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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(1) Unallocated corporate expenses are presented on a U.S.

Three months ended June 30, 2025 compared to three months ended June 30, 2024:

Unallocated corporate expense remained unchanged at $(4.8) million for both the three months ended June 30, 2024 and June 30, 2025.

Six months ended June 30, 2025 compared to six months ended June 30, 2024:

Unallocated corporate expense decreased $(0.1) million, or (1.1)%, from $9.4 million for the six months ended June 30, 2024 to $9.3 million for the six months ended June 30, 2025.

The decrease was driven by lower fixed compensation and benefits and general and administrative expense, slightly offset by higher variable compensation expense.

Three months ended September 30, 2025 compared to three months ended September 30, 2024:

Unallocated corporate expense decreased $(0.7) million, or (14.3)%, from $4.9 million for the three months ended September 30, 2024 to $4.2 million for the three months ended September 30, 2025.

The decrease was driven by lower general and administrative expense, slightly offset by higher compensation and benefits expense.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024:

Unallocated corporate expense decreased $(0.8) million, or (5.6)%, from $14.3 million for the nine months ended September 30, 2024 to $13.5 million for the nine months ended September 30, 2025.

The decrease was driven by lower general and administrative expense, slightly offset by higher compensation and benefits expense.

Capital Resources and Liquidity

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All amounts presented exclude consolidated Funds:

Six Months Ended June 30,

Nine Months Ended September 30,

($ in millions) 2025 2024

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(1) Excludes consolidated Funds.

Comparison for the six months ended June 30, 2025 and 2024

Net cash from operating activities, excluding consolidated Funds, increased $5.3 million, from net cash provided of $5.4 million for the six months ended June 30, 2024 to net cash provided of $10.7 million for the six months ended June 30, 2025, driven by changes in net income offset by changes in operating assets and liabilities period-over-period.

In the six months ended June 30, 2025, net cash from investing activities, excluding consolidated Funds, changed by $27.9 million, from $(18.8) million used in the six months ended June 30, 2024 to $9.1 million provided in the six months ended June 30, 2025, driven by higher net sales of investment securities in the six months ended June 30, 2025.

Net cash used in financing activities, excluding consolidated Funds, changed by $36.9 million, from $(61.7) million used in the six months ended June 30, 2024 to $(24.8) million used in the six months ended June 30, 2025, primarily due to higher share repurchases in the six months ended June 30, 2024.

Comparison for the nine months ended September 30, 2025 and 2024

Net cash from operating activities, excluding consolidated Funds, increased $4.4 million, from net cash provided of $59.1 million for the nine months ended September 30, 2024 to net cash provided of $63.5 million for the nine months ended September 30, 2025, driven by changes in net income offset by changes in operating assets and liabilities period-over-period.

In the nine months ended September 30, 2025, net cash from investing activities, excluding consolidated Funds, changed by $57.0 million, from $(48.3) million used in the nine months ended September 30, 2024 to $8.7 million provided in the nine months ended September 30, 2025, driven by higher net sales of investment securities in the nine months ended September 30, 2025.

Net cash used in financing activities, excluding consolidated Funds, changed by $54.0 million, from $(104.1) million used in the nine months ended September 30, 2024 to $(50.1) million used in the nine months ended September 30, 2025, primarily due to higher share repurchases in the nine months ended September 30, 2024.

Supplemental Liquidity Measure — Adjusted EBITDA

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The following table reconciles our U.S.

GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30, Six Months Ended June 30,

GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

($ in millions) 2025 2024 2025 2024

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$ 27.2 $ 22.2 $ 70.4 $ 56.8

(1) The three months ended June 30, 2025 includes $(0.3) million of severance-related items.

The three months ended June 30, 2024 includes $(0.3) million of severance-related items, $0.4 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $0.9 million.

The six months ended June 30, 2025 includes $(0.5) million of severance-related items.

(1) The three months ended September 30, 2025 includes $(0.2) million of severance-related items.

The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million of costs associated with the transfer of an insurance policy from our former parent.

The nine months ended September 30, 2025 includes $(0.7) million of severance-related items.

(2) Includes non-cash equity-based award amortization expense.

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Our ability to secure short-term and long-term financing in the future will depend on several factors, including our future profitability, our relative levels of debt and equity and the overall condition of the credit markets.

As of June 30, 2025, we have $90.2 million in cash and cash equivalents and $95.2 million in seed capital investments.

As of September 30, 2025, we have $117.3 million in cash and cash equivalents and $95.1 million in seed capital investments.

On October 30, 2025, we issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of our 4.80% Senior Notes due July 27, 2026 (the “2026 Notes”).

Borrowings and Long-Term Debt

The following table summarizes our financing arrangements as of the dates indicated:

($ in millions) June 30,

($ in millions) September 30,

2025 December 31,

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Total third party borrowings $ 274.6 $ 274.3

(1) On August 29, 2024, Acadian LLC’s $125 million revolving credit facility was terminated and replaced with a new $140 million revolving credit facility.

(1) On October 28, 2025, Acadian LLC’s $140 million revolving credit facility was terminated and replaced with a new $175 million revolving credit facility.

On October 28, 2025, Acadian LLC also entered into a $200 million delayed draw term loan facility.

(2) On October 30, 2025, we issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of our 2026 Notes.

Revolving Credit Facility

On August 29, 2024, Acadian LLC, Royal Bank of Canada, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., the Bank of New York Mellon, Bank of America N.A., as an issuing bank, and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (the “Acadian LLC Credit Agreement”), which replaced Acadian LLC’s revolving credit facility dated as of March 7, 2022 (the “Prior Credit Agreement”).

The maturity date of the Prior Credit Agreement was March 7, 2025, and the maturity date of the Acadian LLC Credit Agreement is August 29, 2027.

Borrowings under the Acadian LLC Credit Agreement bear interest, at Acadian LLC’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10% (“Adjusted Term SOFR”) plus 1%, plus, in each case an additional amount ranging from 0.5% to 1.0%, with such additional amount based on Acadian LLC’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian LLC’s Leverage Ratio.

In addition, Acadian LLC is charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian LLC Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian LLC’s Leverage Ratio.

Under the Acadian LLC Credit Agreement, the ratio of Acadian LLC’s third-party borrowings to Acadian LLC’s trailing twelve months Adjusted EBITDA, as defined by the Acadian LLC Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5x and the ratio of Acadian LLC’s trailing twelve months Adjusted EBITDA to Acadian LLC’s interest expense (the “Interest Coverage Ratio”) must not be less than 4.0x.

At June 30, 2025, Acadian LLC’s Leverage Ratio was 0.1x and Acadian LLC’s Interest Coverage Ratio was 126.5x.

The maturity date of the Prior Credit Agreement was March 7, 2025, and the maturity date of the Acadian LLC Credit Agreement was August 29, 2027.

On October 28, 2025, Acadian LLC terminated the Acadian LLC Credit Agreement, as described below.

Borrowings under the Acadian LLC Credit Agreement bore interest, at Acadian LLC’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10% (“Adjusted Term SOFR”) plus 1%, plus, in each case an additional amount ranging from 0.5% to 1.0%, with such additional amount based on Acadian LLC’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian LLC’s Leverage Ratio.

In addition, Acadian LLC was charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian LLC Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian LLC’s Leverage Ratio.

Under the Acadian LLC Credit Agreement, the ratio of Acadian LLC’s third-party borrowings to Acadian LLC’s trailing twelve months Adjusted EBITDA, as defined by the Acadian LLC Credit Agreement (the “Leverage Ratio”), could not exceed 2.5x and the ratio of Acadian LLC’s trailing twelve months Adjusted EBITDA to Acadian LLC’s interest expense (the “Interest Coverage Ratio”) could not be less than 4.0x.

At September 30, 2025, Acadian LLC’s Leverage Ratio was 0.0x and Acadian LLC’s Interest Coverage Ratio was 142.0x.

On October 28, 2025 (the “Closing Date), Acadian LLC entered into a Delayed Draw Term Loan Credit Agreement (the “DDTL Credit Agreement”) and a Revolving Credit Agreement (the “Revolving Credit Agreement”).

The DDTL Credit Agreement provides for a delayed draw term loan facility in an aggregate principal amount, as of the Closing Date, of up to $200 million (the “Term Facility”).

The term loans mature on October 28, 2028.

Subject to certain conditions, Acadian LLC may increase the size of the Term Facility to an aggregate maximum principal amount of $275 million.

None of the lenders under the Term Facility are obligated to provide such additional commitments to Acadian LLC.

Proceeds of the Term Facility are intended to fund, in part, the redemption of the Company’s 2026 Notes, as described below.

Loans under the DDTL Credit Agreement bear interest, at Acadian LLC’s option, at a rate per annum equal to (i) Term SOFR for the applicable interest period plus an applicable margin equal to a range of 1.5% to 2.0% depending on Acadian LLC’s consolidated leverage ratio or (ii) an alternate base rate (defined as a rate equal to the highest of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America’s published “prime rate” and (iii) Term SOFR plus 1.0%) plus an applicable margin equal to a range of 0.5% to 1.0% depending on Acadian LLC’s consolidated leverage ratio.

Financial covenants under the Term Facility include the quarterly maintenance by the Company of (i) a maximum Consolidated Net Leverage Ratio (as defined in the DDTL Credit Agreement) of not greater than 2.5x and (ii) a minimum Consolidated Interest Coverage Ratio (calculated as the ratio of Acadian LLC Consolidated EBITDA (as defined in the DDTL Credit Agreement), divided by Acadian LLC interest expense for the four consecutive fiscal quarters ended on or immediately prior to the date of determination) of not less than 4.0x.

For purposes of calculating the Consolidated Net Leverage Ratio, the DDTL Credit Agreement refers to Consolidated Funded Indebtedness (as defined in the DDTL Credit Agreement) minus unrestricted cash at Acadian LLC.

On the Closing Date, Acadian LLC terminated the Acadian LLC Credit Agreement and entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”), among Acadian LLC, the lenders from time to time party thereto, Bank of America, N.A., as the Administrative Agent and a L/C Issuer and the other L/C Issuers from time to time party thereto.

The Revolving Credit Agreement provides for senior unsecured revolving credit commitments as of the Closing Date in an aggregate principal amount, as of the Closing Date, of up to $175 million (the “Revolving Facility”).

The revolving commitments mature on October 28, 2028.

Subject to certain conditions, Acadian LLC may increase the size of the Revolving Facility to an aggregate maximum principal amount of $275 million, which may be established in the form of revolving commitments or term loan commitments.

None of the lenders under the Revolving Facility are obligated to provide such additional commitments to Acadian LLC.

Borrowings under the Revolving Credit Agreement bear interest, at Acadian LLC's option, at a rate per annum equal to (i) Term SOFR (as defined in the Revolving Credit Agreement) for the applicable interest period plus an applicable margin equal to a range of 1.5% to 2.0% depending on Acadian LLC’s consolidated leverage ratio or (ii) an alternate base rate (defined as a rate equal to the highest of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America's published "prime rate" and (iii) Term SOFR plus 1.0%) plus an applicable margin equal to a range of 0.5% to 1.0% depending on Acadian LLC’s consolidated leverage ratio.

The Company is required to pay a commitment fee at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian LLC’s Leverage Ratio on the daily undrawn amount of the revolving commitments, and customary letter of credit participation and fronting fees.

Redemption of 4.80% Senior Notes

On October 30, 2025, the Company issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of its 2026 Notes.

Other Compensation Liabilities

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The following table summarizes our other compensation liabilities as of each of the dates indicated:

September 30,

2025 December 31,

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There is a voluntary deferral plan investment balance included in investments on the Condensed Consolidated Balance Sheets that corresponds to this deferral liability.

Additionally, we have recorded accrued incentive compensation of $66.0 million and $119.6 million on the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, respectively.

Additionally, we have recorded accrued incentive compensation of $96.2 million and $119.6 million on the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively.

Included within the accrued incentive compensation balance is the vested portion of our deferred compensation pool.

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There have been no significant changes to the critical accounting policies and estimates disclosed in our most recent Form 10-K for the year ended December 31, 2024.

Critical accounting policies and estimates are those that require management’s most difficult, subjective or complex judgments and would therefore be deemed the most critical to an understanding of our results of operations and financial condition.

Critical accounting policies and estimates are those that require

management’s most difficult, subjective or complex judgments and would therefore be deemed the most critical to an understanding of our results of operations and financial condition.

Recent Accounting Developments

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Forward Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements, which may include, from time to time, anticipated revenues, margins, cash flows or earnings, anticipated future performance of our business, our expected future net cash flows, our anticipated expense levels, capital management, financial condition, results of operations and cash flows, and/or expectations regarding market conditions.

The words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “can be,” “may be,” “aim to,” “may affect,” “may depend,” “intends,” “expects,” “believes,” “estimate,” “plan,” “project,” and other similar expressions are intended to identify such forward-looking statements.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis