What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-07 compared with 2025-11-06 · 193 added, 332 removed, 706 unchanged (43% 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 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 Results of Operations for the Three Months Ended March 31, 2026 and 2025 includes an explanation of changes in our U.S.

GAAP revenue, expense and other items for the three months ended March 31, 2026 and 2025, 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 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.

GAAP net income attributable to controlling interests and ENI for the three months ended March 31, 2026 and 2025, 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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We are a holding company that operates a systematic investment management business through our majority owned subsidiary, Acadian LLC.

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 capabilities.

Acadian LLC is a leading investment manager that 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.

Notable product lines and capabilities include Emerging Equity, Non-U.S.

Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives.

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 capabilities.

product lines and capabilities include Emerging Equity, Non-U.S.

Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives.

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.

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.

As of March 31, 2026, approximately $22 billion, or 11%, of our AUM was 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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GAAP Expenses — Compensation and Benefits Expense” for a further discussion.

Employee equity is valued at a fixed multiple of profits, so employees have transparency into both their earning potential in any year from the bonus pool and share of profits, as well as the current value of their equity and the long-term potential to realize value from its growth.

In this structure, key employees who are managing the business have incentives to manage for profit, but also to manage the business prudently, in the interest of their clients, and invest for growth, since they will benefit over the long term as both employees and equity holders.

In this way, key employees are aligned with the public stockholders to generate profits and growth over time.

How We Measure Performance

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Summary Results of Operations

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.

The following table summarizes our unaudited results of operations for the three months ended March 31, 2026 and 2025:

($ in millions, unless otherwise noted) Three Months Ended March 31,

2026 2025 2026 vs.

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GAAP operating margin (1)

18.4 % 21.9 % (349) bps 19.1 % 20.9 % (179) bps

25.1 % 26.6 % (152) bps

Earnings per share, basic ($) $ 0.68 $ 0.54 $ 0.14

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ENI operating margin (6)

33.2 % 31.7 % 157 bps 30.9 % 29.0 % 192 bps

38.1 % 28.3 % 978 bps

Economic net income (7)

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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 $(0.2) 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.

(3) Excludes severance-related items of $(0.2) million for the three months ended March 31, 2025.

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

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Assets Under Management

In the first quarter of 2025, we changed the presentation of our AUM.

The new presentation reflects better alignment of our view on the business and distribution channels.

We made certain reclassifications between strategies, client type and client location groupings to better reflect the underlying AUM.

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

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

Our total assets under management were $195.7 billion as of March 31, 2026 and $177.5 billion as of December 31, 2025.

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

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

($ in billions) March 31, 2026 December 31, 2025

AUM % of total AUM % of total

Equity $ 35.3 21.2 % $ 26.6 22.7 %

Enhanced Equity $ 57.8 29.5 % $ 40.0 22.5 %

Equity 39.7 20.3 % 38.4 21.6 %

Small Cap Equity 32.2 16.5 % 32.8 18.5 %

Global Equity 23.9 14.4 % 19.0 16.2 %

Emerging Markets Equity

25.5 13.0 % 26.0 14.7 %

Global Equity 23.7 12.1 % 22.9 12.9 %

Other 16.8 8.6 % 17.4 9.8 %

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

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

($ in billions) March 31, 2026 December 31, 2025

AUM % of total AUM % of total

Institutional $ 146.4 74.8 % $ 144.5 81.4 %

Sub-Advisory 16.4 9.9 % 13.1 11.2 %

Wealth/Other 33.0 16.9 % 16.2 9.1 %

Sub-Advisory 16.3 8.3 % 16.8 9.5 %

Total assets under management $ 195.7 $ 177.5

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

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

($ in billions) March 31, 2026 December 31, 2025

AUM % of total AUM % of total

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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,

Three Months Ended March 31,

($ in billions, unless otherwise noted) 2026 2025

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Net flows 21.4 3.8

Market appreciation 8.9 7.2 25.1 15.7

Market appreciation (depreciation) (3.2) 0.8

Ending balance $ 195.7 $ 121.9

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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 September 30, Nine Months Ended September 30,

2025 2024 2025 2024

($ in billions) Three Months Ended March 31,

Institutional

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Net flows 4.6 3.1

Market appreciation 7.1 5.5 19.7 12.5

Market appreciation (depreciation) (2.7) 0.2

Ending balance $ 146.4 $ 96.3

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Net flows 17.0 0.3

Market appreciation 0.7 1.0 2.8 1.8

Market appreciation (depreciation) (0.2) 0.1

Ending balance $ 33.0 $ 11.6

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Net flows (0.2) 0.4

Market appreciation 1.1 0.7 2.6 1.4

Market appreciation (depreciation) (0.3) 0.5

Ending balance $ 16.3 $ 14.0

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Net flows 21.4 3.8

Market appreciation 8.9 7.2 25.1 15.7

Market appreciation (depreciation) (3.2) 0.8

Ending balance $ 195.7 $ 121.9

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

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

2025 2024 2025 2024

($ in billions) Three Months Ended March 31,

Beginning balance $ 99.5 $ 74.7

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Net flows 0.7 1.0

Market appreciation 5.1 4.7 16.4 10.3

Market appreciation (depreciation) (0.9) 1.3

Ending balance $ 99.3 $ 77.0

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Net flows 20.7 2.8

Market appreciation 3.8 2.5 8.7 5.4

Market depreciation (2.3) (0.5)

Ending balance $ 96.4 $ 44.9

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Net flows 21.4 3.8

Market appreciation 8.9 7.2 25.1 15.7

Market appreciation (depreciation) (3.2) 0.8

Ending balance $ 195.7 $ 121.9

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.

At March 31, 2026, our total assets under management were $195.7 billion, an increase of $18.2 billion, or 10.3%, compared to $177.5 billion at December 31, 2025 and an increase of $73.8 billion, or 60.5%, compared to $121.9 billion at March 31, 2025.

The increase in assets under management compared to March 31, 2025 was driven by positive net client cash flows and equity market appreciation in the last twelve months.

The change in assets under management during the three months ended March 31, 2026 reflects net inflows of $21.4 billion and reinvested income and distributions of $1.1 billion, partially offset by net market depreciation of $(3.2) 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 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,

For the three months ended March 31, 2026, our net inflows were $21.4 billion compared to $3.8 billion for the three months ended March 31, 2025.

The change in net flows during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily driven by strong gross inflows, which increased to $29.6 billion in the three months ended March 31, 2026.

Reinvested income and distributions of $1.1 billion and $0.8 billion are reflected in the net flows for the three months ended March 31, 2026 and March 31, 2025, respectively.

Strategies representing 67%, 96%, 96%, and 96% of revenue were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of March 31, 2026.

As of March 31, 2026 the 5-year revenue weighted annualized return in excess of benchmark was 4.1%.

Assets representing 67%, 93%, 94%, and 92% of assets under management were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of March 31, 2026.

As of March 31, 2026 the 5-year asset weighted annualized return in excess of benchmark was 3.4%.

GAAP Results of Operations for the Three Months Ended March 31, 2026 and 2025

GAAP results of operations were as follows for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions, unless otherwise noted) 2026 2025 Increase

(Decrease) 2025 2024 Increase

GAAP Statement of Operations (1)

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Interest expense (3.4) (4.8) 1.4

Net consolidated Funds’ investment gains 11.5 4.0 7.5 27.2 6.5 20.7

Net consolidated Funds’ investment gains (losses) (1.9) 3.6 (5.5)

Income before taxes

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($ in millions) Three Months Ended

September 30, Nine Months Ended

September 30,

GAAP Consolidated Statements of Operations

2025 2024 2025 2024

Net income attributable to controlling interests $ 24.3 $ 20.1

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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 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 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.

Average basis points earned on average assets under management were 34.1 bps for the three months ended March 31, 2026, and 37.9 bps for the three months ended March 31, 2025, respectively.

The overall weighted average fee rate decrease for the three months ended March 31, 2026 is the result of changes in the mix of assets under management caused by net inflows or outflows in certain asset classes, and disproportionate market movements.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Management fees increased $46.4 million, or 41.1%, from $112.9 million for the three months ended March 31, 2025 to $159.3 million for the three months ended March 31, 2026.

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

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.

Average assets under management increased 57.0%, from $120.7 billion for the three months ended March 31, 2025 to $189.5 billion for the three months ended March 31, 2026, mainly due to strong net flows and the positive equity market 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 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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Performance fees increased $0.4 million, or 7.5%, from $5.3 million for the three months ended March 31, 2025 to $5.7 million for the three months ended March 31, 2026, 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.

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The following table presents the components of U.S.

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,

GAAP compensation expense for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions) 2026 2025

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Sales-based compensation (2)

3.4 3.3 10.4 6.9

Variable compensation (3)

31.8 29.4 93.6 83.7

Acadian LLC key employee distributions (4)

5.2 3.1 12.3 7.4

Non-cash Acadian LLC key employee equity revaluations (5)

16.3 9.3 35.7 19.6

GAAP compensation and benefits expense

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Hold Co variable compensation includes cash and our equity.

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

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

Equity-based compensation awards typically vest over several years and are recognized as compensation expense over that service period.

Three Months Ended March 31,

($ in millions) 2026 2025

Cash variable compensation $ 38.6 $ 29.3

Non-cash equity-based award amortization 1.8 1.6 4.1 5.2

Amortization of equity-based awards 2.3 0.9

Total variable compensation (a)

$ 40.9 $ 30.2

(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.

(a) For the three months ended March 31, 2025, $30.4 million, of variable compensation expense (of the $30.2 million above) is included with economic net income, which excludes $(0.2) million of variable compensation associated with restructuring.

(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 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 $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.

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

Revaluations of Acadian LLC equity changed by $7.0 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 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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Compensation and benefits expense increased $35.2 million, or 57.9%, from $60.8 million for the three months ended March 31, 2025 to $96.0 million for the three months ended March 31, 2026.

Fixed compensation and benefits increased $2.3 million, or 9.5%, from $24.3 million for the three months ended March 31, 2025 to $26.6 million for the three months ended March 31, 2026, primarily reflecting cost of living increases, higher payroll taxes and an increase in the cost of employee benefits.

Variable compensation increased $10.7 million, or 35.4%, from $30.2 million for the three months ended March 31, 2025 to $40.9 million for the three months ended March 31, 2026.

The increase was primarily attributable to higher pre-bonus profits in the three months ended March 31, 2026, partially offset by lower deferred bonus earned on performance fee revenues in the three months ended March 31, 2026.

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 $3.5 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.

Sales-based compensation increased $2.6 million or 74.3% from $3.5 million for the three months ended March 31, 2025 to $6.1 million for the three months ended March 31, 2026, driven by the increase in asset inflows.

Acadian LLC key employee distributions increased $3.2 million, or 103.2%, from $3.1 million for the three months ended March 31, 2025 to $6.3 million for the three months ended March 31, 2026.

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.

The change in Acadian LLC key employee distributions during the three months ended March 31, 2026 is driven by higher operating earnings and the leveraged nature of this distribution share.

Revaluations of Acadian LLC key employee equity changed by $16.4 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 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.

The change in the revaluation in the three months ended March 31, 2026 reflects primarily 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 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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

General and administrative expense increased $2.6 million, or 11.7%, from $22.3 million for the three months ended March 31, 2025 to $24.9 million for the three months ended March 31, 2026.

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

Depreciation and Amortization Expense

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.

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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Depreciation and amortization expense decreased $(0.6) million, or (14.3)%, from $4.2 million for the three months ended March 31, 2025 to $3.6 million for the three months ended March 31, 2026.

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

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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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Investment income decreased $(0.2) million, or (66.7)%, from $0.3 million for the three months ended March 31, 2025 to $0.1 million for the three months ended March 31, 2026, reflecting a decrease in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Interest Income

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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Interest income decreased $(0.2) million, or (18.2)%, from $1.1 million for the three months ended March 31, 2025 to $0.9 million for the three months ended March 31, 2026.

The decrease was due to a decrease in short-term investment returns, slightly offset by an increase in average cash balances in the three months ended March 31, 2026.

Interest Expense

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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Interest expense decreased $(1.4) million, or (29.2)%, from $4.8 million for the three months ended March 31, 2025 compared to $3.4 million for the three months ended March 31, 2026, related to redemption of our $275 million 4.80% Senior Notes and associated cash flow hedge in December 2025, partially offset by the addition of our $200 million delayed draw term loan facility in October 2025.

GAAP Income Tax Expense

Our effective tax rate has been impacted by state and local tax obligations, changes in liabilities for uncertain tax positions, tax effects of stock-based compensation, limitations on executive compensation, and the mix of income earned in the United States versus foreign jurisdictions.

Our effective tax rate has been impacted by state and local tax obligations, changes in liabilities for uncertain tax positions, tax effects of stock-based compensation, non-deductible compensation, and the mix of income earned in the United States versus foreign jurisdictions.

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 (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.

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.

The American Rescue Plan Act of 2021 ("ARPA"), among other things, includes provisions to expand the IRC Section 162(m) disallowance for deduction of certain compensation paid by publicly held corporations.

Effective for tax years starting after December 31, 2026, ARPA expands the limitations to cover the next five most highly compensated employees.

H.R.1, commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”), includes a broad range of tax reform provisions, including extensions and modifications of certain provisions of the Tax Cuts and Jobs Act, with various effective dates beginning in 2025 through 2027.

The OBBBA includes amendments to Internal Revenue Code Section 162(m) that expand the scope of entities and employees considered in determining “covered employees” subject to the limitation on the deductibility of compensation.

The Company continues to evaluate and incorporate the impact of IRC Section 162(m) amendments under the OBBBA and ARPA into its interim tax provision, including potential changes in covered employees, compensation structures and related deferred tax balances.

Three months ended March 31, 2026 compared to three months ended March 31, 2025 :

Income tax expense increased $4.9 million, from $8.3 million for the three months ended March 31, 2025 to $13.2 million for the three months ended March 31, 2026.

The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interest and non-deductible compensation in the three months ended March 31, 2026.

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 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.

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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025 :

Consolidated Funds’ revenue increased $0.3 million, from $1.7 million for the three months ended March 31, 2025 to $2.0 million for the three months ended March 31, 2026.

Consolidated Funds’ expense decreased $(0.1) million, from $0.7 million for the three months ended March 31, 2025 to $0.6 million for the three months ended March 31, 2026.

Net consolidated Funds’ investment gain decreased $(5.5) million from $3.6 million for the three months ended March 31, 2025 to $(1.9) million for the three months ended March 31, 2026.

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

1 unchanged sentence

The following table shows our key U.S.

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,

GAAP operating metrics for the three months ended March 31, 2026 and 2025.

The second, third and fourth metrics below have each been adjusted to eliminate the effect of consolidated Funds to more accurately reflect the economics of our Company.

Three Months Ended March 31,

($ in millions) 2026 2025

14 unchanged sentences

Acadian LLC key employee distributions

$ 5.2 $ 3.1 $ 12.3 $ 7.4

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

1 unchanged sentence

GAAP Acadian LLC key employee distributions ratio (3)

17.8 % 10.5 % 14.9 % 9.7 %

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

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.

GAAP operating margin was 24.5% for the three months ended March 31, 2026 and 26.1% for the three months ended March 31, 2025.

(2) Excludes consolidated Funds’ expense of $0.6 million for the three months ended March 31, 2026, and $0.7 million for the three months ended March 31, 2025.

(3) Excludes the effect of Funds consolidation for the three months ended March 31, 2026 and 2025.

(4) Excludes consolidated Funds’ revenue of $2.0 million for the three months ended March 31, 2026, and $1.7 million for the three months ended March 31, 2025.

(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 September 30, Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions) 2026 2025

2 unchanged sentences

Acadian LLC key employee distributions

5.2 3.1 12.3 7.4

Operating income of consolidated Funds (1.4) (1.0)

Operating income before Acadian LLC key employee distributions

29.2 29.4 82.3 76.3

Variable compensation 40.9 30.2

32 unchanged sentences

Reconciliation of U.S.

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,

GAAP Net Income to Economic Net Income for the Three Months Ended March 31, 2026 and 2025

The following table reconciles net income attributable to controlling interests to economic net income for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions) 2026 2025

4 unchanged sentences

Capital transaction costs

0.1 — 0.2 0.2

Seed/Co-investment (gains) losses and financings (1)

(0.9) (3.0) (3.5) (4.4)

Tax benefit of goodwill and acquired intangibles deductions 0.3 0.3

Discontinued operations attributable to controlling interests and restructuring (2)

(0.2) — (0.7) 1.4

ENI tax normalization

0.7 0.3 1.3 0.9

Tax effect of above adjustments, as applicable (3)

(4.2) (1.7) (8.7) (4.6)

Economic net income

$ 37.6 $ 20.3

(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,

(1) The net return on seed/co-investment (gains) losses and financings for the three months ended March 31, 2026 and 2025 is shown in the following table:

Three Months Ended March 31,

($ in millions) 2026 2025

Seed/Co-investment gains $ (2.2) $ (4.1) $ (7.4) $ (6.9)

Seed/Co-investment (gains) losses $ 0.5 $ (1.2)

Financing costs:

2 unchanged sentences

Financing costs 1.1 1.2

Net seed/co-investment gains and financing $ (0.9) $ (3.0) $ (3.5) $ (4.4)

Net seed/co-investment losses and financing $ 1.6 $ —

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

(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.

statutory tax rate (including state tax).

(2) The three months ended March 31, 2025 includes severance-related items of $(0.2) million.

(3) Reflects the sum of lines (i), (ii), (iii), (iv) and the restructuring component of line (vi) multiplied by the respective blended rates applicable to the adjustments.

In the three months ended March 31, 2026, we updated our approach for calculating the tax effect of adjustments within the above reconciliation.

The three months ended March 31, 2025 used a statutory income tax rate of 27.3% for these adjustments.

The Company now applies a blended income tax rate, which is intended to more accurately reflect the tax effect of the adjusting items.

The effect of this change on prior periods is not material.

Limitations of Economic Net Income

5 unchanged sentences

The following table reconciles U.S.

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,

GAAP revenue to ENI revenue for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions) 2026 2025

1 unchanged sentence

Exclude revenue from consolidated Funds

(7.9) (0.9) (12.1) (2.0)

ENI revenue $ 165.0 $ 118.2

The following table identifies the components of ENI revenue:

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

Three Months Ended March 31,

($ in millions) 2026 2025

2 unchanged sentences

Performance fees (2)

0.2 10.1 8.1 16.0

ENI revenue $ 165.0 $ 118.2

10 unchanged sentences

The following table reconciles U.S.

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,

GAAP operating expense to ENI operating expense for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

($ in millions) 2026 2025

2 unchanged sentences

Non-cash key employee equity and profit interest revaluations

(16.3) (9.3) (35.7) (19.6)

Restructuring costs (1)

0.2 — 0.8 (1.4)

Funds’ operating expense (0.6) (0.7)

4 unchanged sentences

Acadian LLC key employee distributions

(5.2) (3.1) (12.3) (7.4)

ENI operating expense $ 61.2 $ 54.3

(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.

(1) The three months ended March 31, 2025 includes $(0.2) million of severance-related items.

(2) The three months ended March 31, 2025 excludes $(0.2) million of severance-related items that are included within restructuring costs.

The following table identifies the components of ENI operating expense:

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

Three Months Ended March 31,

($ in millions) 2026 2025

2 unchanged sentences

General and administrative expenses (2)

26.8 24.9 78.0 68.9

Depreciation and amortization 3.6 4.2

2 unchanged sentences

The following table reconciles U.S.

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,

GAAP compensation and benefits expense for the three months ended March 31, 2026 and 2025 to ENI fixed compensation and benefits expense:

Three Months Ended March 31,

($ in millions) 2026 2025

1 unchanged sentence

Non-cash key employee equity and profit interest revaluations excluded from ENI

(16.3) (9.3) (35.7) (19.6)

Sales-based compensation reclassified to ENI general & administrative expenses

(3.4) (3.3) (10.4) (6.9)

Acadian LLC key employee distributions

(5.2) (3.1) (12.3) (7.4)

Restructuring expenses (a)

0.3 0.2 0.8 (0.1)

Variable compensation

1 unchanged sentence

ENI fixed compensation and benefits $ 26.6 $ 24.3

(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.

(a) The three months ended March 31, 2025 includes $(0.2) million of severance-related items.

(2) The following table reconciles U.S.

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

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

Three Months Ended March 31,

($ in millions) 2026 2025

2 unchanged sentences

Sales-based compensation 6.1 3.5

Restructuring costs (a)

(0.1) (0.2) — (0.9)

ENI general and administrative expense $ 31.0 $ 25.8

(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 nine months ended September 30, 2025 and 2024.

The following table shows our key non-GAAP operating metrics for the three months ended March 31, 2026 and 2025.

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 September 30, Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions) 2026 2025

17 unchanged sentences

Acadian LLC key employee distributions

$ 5.2 $ 3.1 $ 12.3 $ 7.4

ENI operating earnings (1)

1 unchanged sentence

ENI Acadian LLC key employee distributions ratio (7)

11.5 % 8.0 % 10.5 % 7.6 %

(1) ENI operating earnings represents ENI earnings before Acadian LLC key employee distributions and is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation.

2 unchanged sentences

GAAP operating income to ENI operating earnings:

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

Three Months Ended March 31,

($ in millions) 2026 2025

4 unchanged sentences

Restructuring costs (a)

(0.2) — (0.8) 1.4

Acadian LLC key employee distributions

5.2 3.1 12.3 7.4

Variable compensation 40.9 30.4

6 unchanged sentences

ENI earnings after Acadian LLC key employee distributions $ 56.6 $ 30.4

(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.

(a) The three months ended March 31, 2025 includes $(0.2) million of severance-related items.

(b) The three months ended March 31, 2025 excludes $(0.2) million of severance-related items that are included within restructuring costs.

(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.

1 unchanged sentence

GAAP operating margin.

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.

GAAP operating margin, excluding the effect of consolidated Funds, is 24.5% for the three months ended March 31, 2026 and 26.1% for the three months ended March 31, 2025.

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.

22 unchanged sentences

Tax on Economic Net Income

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

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

The following table reconciles the blended effective tax rate to tax on economic net income:

Three Months Ended March 31,

($ in millions) 2026 2025

1 unchanged sentence

$ 55.5 $ 28.0

Taxes at the U.S.

federal and state statutory rates (2)

(10.4) (8.9) (26.6) (22.0)

Taxes at blended effective tax rate (2)

Other reconciling tax adjustments 0.3 —

4 unchanged sentences

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

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

Three Months Ended March 31,

($ in millions) 2026 2025

3 unchanged sentences

Other ENI interest expense exclusions (a)

1.4 1.1 4.2 2.7

ENI net interest expense (1.1) (2.4)

ENI earnings after Acadian LLC key employee distributions (b)

40.1 35.6 104.9 89.9

Pre-tax economic net income $ 55.5 $ 28.0

3 unchanged sentences

GAAP operating income to ENI earnings after Acadian LLC key employee distributions.

(2) Taxed at U.S.

Federal and State statutory rate of 27.3%.

(2) Taxed at the blended effective tax rate on pre-tax economic net income.

Previously, the Company used a statutory income tax rate of 27.3%.

The Company now applies a blended income tax rate, which is intended to more accurately reflect the tax effect.

The effect of this change on prior periods is not material.

(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 $95.1 million as of September 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 $96.7 million as of March 31, 2026 and $97.2 million as of December 31, 2025, 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) September 30,

($ in millions) March 31,

2026 December 31,

7 unchanged sentences

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

product lines and capabilities include Emerging Equity, Non-U.S.

Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives.

This segment consists of our ownership interest in Acadian LLC.

18 unchanged sentences

Segment ENI Revenue

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,

The following table identifies the components of Quant & Solutions segment ENI revenue for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions) 2026 2025

1 unchanged sentence

Performance fees

0.2 10.1 8.1 16.0

Segment ENI revenue

1 unchanged sentence

Quant & Solutions Segment ENI Revenue

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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Quant & Solutions ENI revenue increased $46.8 million, or 39.6%, from $118.2 million for the three months ended March 31, 2025 to $165.0 million for the three months ended March 31, 2026.

The increase was attributable to 41.1% higher management fees driven by higher average AUM resulting from strong net client cash flows and positive equity markets in the past twelve months, along with 7.5% higher 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 nine months ended September 30, 2025 and 2024:

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

2025 2024 2025 2024

The following table identifies the components of Quant & Solutions segment ENI expense for the three months ended March 31, 2026 and 2025:

($ in millions) Three Months Ended March 31,

Fixed compensation & benefits

1 unchanged sentence

Variable compensation

31.1 29.0 91.3 81.8

Acadian LLC key employee distributions

5.2 3.1 12.3 7.4

Depreciation and amortization

4.1 4.5 12.5 13.7

General and administrative expense 29.0 23.7

2 unchanged sentences

Quant & Solutions Segment ENI Expense

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 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%.

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 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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Quant & Solutions segment ENI expenses increased $20.3 million, or 24.4%, from $83.3 million for the three months ended March 31, 2025 to $103.6 million for the three months ended March 31, 2026.

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

Quant & Solutions ENI variable compensation expense increased 35.4% 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 March 31, 2026.

Acadian LLC key employee distributions attributable to Quant & Solutions increased 103.2%.

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.

The change in Acadian LLC key employee distributions during the three months ended March 31, 2026 is driven by higher operating earnings and the leveraged nature of this distribution share.

Quant & Solutions ENI general and administrative expense increased 22.4% primarily due to higher sales-based compensation, system, 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 nine months ended September 30, 2025 and 2024:

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

The following table identifies unallocated corporate expense for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions) 2026 2025

Unallocated corporate expenses (1)

$ 4.2 $ 4.9 $ 13.5 $ 14.3

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

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.

Three months ended March 31, 2026 compared to three months ended March 31, 2025:

Unallocated corporate expense increased $0.3 million, or 6.7%, from $4.5 million for the three months ended March 31, 2025 to $4.8 million for the three months ended March 31, 2026.

The increase was driven by higher compensation and benefits, slightly offset by lower general and administrative expenses.

Capital Resources and Liquidity

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All amounts presented exclude consolidated Funds:

Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions) 2026 2025

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(1) Excludes consolidated Funds.

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.

Comparison for the three months ended March 31, 2026 and 2025

Net cash from operating activities, excluding consolidated Funds, changed by $4.4 million, from net cash used of $(48.7) million for the three months ended March 31, 2025 to net cash used of $(44.3) million for the three months ended March 31, 2026, driven by changes in net income offset by changes in operating assets and liabilities period-over-period.

In the three months ended March 31, 2026, net cash from investing activities, excluding consolidated Funds, changed by $(16.0) million, from $11.8 million provided in the three months ended March 31, 2025 to $(4.2) million used in the three months ended March 31, 2026, driven by net purchases of investment securities in the three months ended March 31, 2026.

Net cash provided in financing activities, excluding consolidated Funds, changed by $14.6 million, from $61.6 million provided in the three months ended March 31, 2025 to $76.2 million provided in the three months ended March 31, 2026, primarily due to lower share repurchases in the three months ended March 31, 2026.

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 nine months ended September 30, 2025 and 2024.

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

GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

($ in millions) 2026 2025

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Depreciation and amortization

4.1 4.5 12.5 14.1

EBITDA $ 43.6 $ 36.3

Non-cash compensation costs, including revaluation of Acadian LLC key employee-owned equity and profit interests

17.2 9.4 37.6 20.2

Gain on seed and co-investments (2.2) (4.1) (7.4) (6.9)

(Gain) loss on seed and co-investments 0.5 (1.2)

Restructuring (1)

(0.2) 0.2 (0.7) 1.1

Adjusted EBITDA

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Depreciation and amortization (2)

(5.0) (4.8) (14.5) (14.4)

Tax on economic net income (17.9) (7.7)

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$ 37.6 $ 20.3

(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.

(1) The three months ended March 31, 2025 includes $(0.2) 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 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”).

As of March 31, 2026, we have $129.0 million in cash and cash equivalents and $96.7 million in seed capital investments.

Borrowings and Long-Term Debt

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

($ in millions) September 30,

($ in millions) March 31,

2026 December 31,

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$175 million revolving credit facility

$ — $ — Variable rate August 29, 2027

$ 85.0 $ — Variable rate October 28, 2028

Total revolving credit facility $ 85.0 $ —

Third party borrowings:

$275 million 4.80% Senior Notes Due 2026 (2)

$ 274.6 $ 274.3 4.80% July 27, 2026

$200 million Delayed Draw Term Loan Due October 28, 2028

$ 200.0 $ 200.0 Variable rate October 28, 2028

Total third party borrowings $ 200.0 $ 200.0

(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 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 Delayed Draw Term Loan Credit Agreement and Revolving Credit Agreement

On October 28, 2025 (the “Closing Date”), Acadian LLC entered into a Delayed Draw Term Loan Credit Agreement with the Lenders from time to time party thereto, and Bank of America, N.A.

(“Bank of America”), as the Administrative Agent (the “DDTL Credit Agreement”), and a Revolving Credit Agreement with the Lenders from time to time party thereto, Bank of America, 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”).

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”).

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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.

Financial covenants under the Term Facility include the quarterly maintenance by Acadian LLC 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.

At March 31, 2026, Acadian LLC’s Leverage Ratio was 1.0x and Acadian LLC’s Interest Coverage Ratio was 46.2x.

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”).

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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.

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 (as defined in the Revolving Credit Agreement) 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 Consolidated Leverage Ratio on the daily undrawn amount of the revolving commitments, and customary letter of credit participation and fronting fees.

As of March 31, 2026, Acadian LLC had unused lines of credit of $87.5 million comprised of undrawn commitments on the revolving credit facility of $90.0 million less a $2.5 million letter of credit with Bank of America related to one of Acadian LLC’s current office spaces.

Other Compensation Liabilities

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

September 30,

2026 December 31,

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Share-based payments liability $ 39.5 $ 37.0

Profit interests liability

Employee equity 78.3 44.1

Profit interests compensation liability

Voluntary deferral plan liability 37.2 37.9

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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 $96.2 million and $119.6 million on the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively.

Additionally, we have recorded accrued incentive compensation of $47.4 million and $129.9 million on the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, 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, 2025.

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, expected use of capital resources 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.

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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