What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 263 added, 149 removed, 750 unchanged (35% of the section changed)

13 unchanged sentences

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 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 Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025 includes an explanation of changes in our U.S.

GAAP revenue, expense and other items for the three and six months ended June 30, 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 months ended March 31, 2026 and 2025, 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 six months ended June 30, 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 may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed required returns.

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.

As of June 30, 2026, approximately $28 billion, or 12%, 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.

Notwithstanding the foregoing, under the contractual arrangements governing these interests, any amounts used by the Company to facilitate recycling are funded through corresponding reductions in the Acadian LLC annual bonus pool and/or deferred compensation pool otherwise available for allocation to employees.

Accordingly, the cash impact of repurchasing these interests is offset by corresponding reductions in cash variable compensation otherwise payable to employees from either the Acadian LLC annual bonus pool or the deferred compensation pool, resulting in a neutral offsetting impact to the Company's cash.

Notwithstanding this cash funding offset, the value of these interests is carried on the Company’s balance sheet as a liability, and changes in the value of the liability are recognized as compensation expense under U.S.

Accordingly, regardless of the size of the liability, Hold Co does not expect recycling to have an impact on its liquidity.

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.

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Summary Results of Operations

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,

The following table summarizes our unaudited results of operations for the three and six months ended June 30, 2026 and 2025:

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

2026 2025 2026 vs.

2025 2026 2025 2026 vs.

Revenue $ 185.1 $ 127.4 $ 57.7 $ 352.1 $ 247.3 $ 104.8

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GAAP operating margin (1)

25.1 % 26.6 % (152) bps

17.5 % 12.7 % 479 bps 21.1 % 19.5 % 165 bps

Earnings per share, basic ($) $ 0.77 $ 0.28 $ 0.49 $ 1.45 $ 0.82 $ 0.63

10 unchanged sentences

ENI operating margin (6)

38.1 % 28.3 % 978 bps

40.3 % 30.7 % 959 bps 39.3 % 29.6 % 971 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 March 31, 2025.

(3) Excludes legal-related restructuring costs of $0.2 million for the three and six months ended June 30, 2026.

Excludes severance-related items of $(0.3) million and $(0.5) million, respectively, for the three and six months ended June 30, 2025.

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

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Assets Under Management

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

Our total assets under management were $232.7 billion as of June 30, 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) March 31, 2026 December 31, 2025

($ in billions) June 30, 2026 December 31, 2025

AUM % of total AUM % of total

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

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

($ in billions) June 30, 2026 December 31, 2025

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) March 31, 2026 December 31, 2025

($ in billions) June 30, 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 March 31,

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

($ in billions, unless otherwise noted) 2026 2025 2026 2025

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Net flows 4.3 13.8 25.7 17.6

Market appreciation (depreciation) (3.2) 0.8

Market appreciation 32.7 15.4 29.5 16.2

Ending balance $ 232.7 $ 151.1 $ 232.7 $ 151.1

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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 March 31,

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

2026 2025 2026 2025

Institutional

4 unchanged sentences

Net flows 3.8 13.2 8.4 16.3

Market appreciation (depreciation) (2.7) 0.2

Market appreciation 24.7 12.4 22.0 12.6

Ending balance $ 174.9 $ 121.9 $ 174.9 $ 121.9

4 unchanged sentences

Net flows 0.3 0.2 17.3 0.5

Market appreciation (depreciation) (0.2) 0.1

Market appreciation 5.9 1.4 5.7 1.5

Ending balance $ 39.2 $ 13.2 $ 39.2 $ 13.2

4 unchanged sentences

Net flows 0.2 0.4 — 0.8

Market appreciation (depreciation) (0.3) 0.5

Market appreciation 2.1 1.6 1.8 2.1

Ending balance $ 18.6 $ 16.0 $ 18.6 $ 16.0

4 unchanged sentences

Net flows 4.3 13.8 25.7 17.6

Market appreciation (depreciation) (3.2) 0.8

Market appreciation 32.7 15.4 29.5 16.2

Ending balance $ 232.7 $ 151.1 $ 232.7 $ 151.1

3 unchanged sentences

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

($ in billions) Three Months Ended March 31,

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

2026 2025 2026 2025

Beginning balance $ 99.3 $ 77.0 $ 99.5 $ 74.7

3 unchanged sentences

Net flows 1.1 (0.1) 1.8 0.9

Market appreciation (depreciation) (0.9) 1.3

Market appreciation 16.9 10.0 16.0 11.3

Ending balance $ 117.3 $ 86.9 $ 117.3 $ 86.9

4 unchanged sentences

Net flows 3.2 13.9 23.9 16.7

Market depreciation (2.3) (0.5)

Market appreciation 15.8 5.4 13.5 4.9

Ending balance $ 115.4 $ 64.2 $ 115.4 $ 64.2

4 unchanged sentences

Net flows 4.3 13.8 25.7 17.6

Market appreciation (depreciation) (3.2) 0.8

Market appreciation 32.7 15.4 29.5 16.2

Ending balance $ 232.7 $ 151.1 $ 232.7 $ 151.1

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.

At June 30, 2026, our total assets under management were $232.7 billion, an increase of $37.0 billion, or 18.9%, compared to $195.7 billion at March 31, 2026 and an increase of $81.6 billion, or 54.0%, compared to $151.1 billion at June 30, 2025.

The increase in assets under management compared to June 30, 2025 was driven by 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, 2026 reflects net market appreciation of $32.7 billion and net inflows of $4.3 billion including reinvested income and distributions of $1.3 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 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,

For the three months ended June 30, 2026, our net inflows were $4.3 billion compared to $13.8 billion for the three months ended June 30, 2025.

The change in net flows during the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily driven by the funding of a large single mandate included in the three months ended June 30, 2025.

Reinvested income and distributions of $1.3 billion and $0.8 billion are reflected in the net flows for the three months ended June 30, 2026 and June 30, 2025, respectively.

For the six months ended June 30, 2026, our net inflows were $25.7 billion compared to $17.6 billion for six months ended June 30, 2025.

The change in net flows during the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by strong gross inflows, which increased to $44.1 billion in the six months ended June 30, 2026.

Reinvested income and distributions of $2.4 billion and $1.6 billion are reflected in the net flows for the six months ended June 30, 2026 and June 30, 2025, respectively.

Strategies representing 77%, 96%, 96%, and 96% of revenue were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of June 30, 2026.

As of June 30, 2026 the 5-year revenue weighted annualized return in excess of benchmark was 4.3%.

Assets representing 80%, 94%, 95%, and 94% of assets under management were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of June 30, 2026.

As of June 30, 2026 the 5-year asset weighted annualized return in excess of benchmark was 3.6%.

GAAP Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025

GAAP results of operations were as follows for the three and six months ended June 30, 2026 and 2025:

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

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

(Decrease) 2026 2025 Increase

GAAP Statement of Operations (1)

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Operating income 32.4 16.2 16.2 74.3 48.1 26.2

Investment income 0.1 0.3 (0.2)

Investment income (loss) 2.0 (0.2) 2.2 2.1 0.1 2.0

Interest income 0.8 0.8 — 1.7 1.9 (0.2)

Interest expense (3.6) (5.3) 1.7 (7.0) (10.1) 3.1

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

Net consolidated Funds’ investment gains 7.2 12.1 (4.9) 5.3 15.7 (10.4)

Income before taxes

18 unchanged sentences

($ in millions) Three Months Ended

June 30, Six Months Ended

GAAP Consolidated Statements of Operations

2026 2025 2026 2025

Net income attributable to controlling interests $ 27.3 $ 10.1 $ 51.6 $ 30.2

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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 34.1 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.

Average basis points earned on average assets under management were 32.2 bps and 32.9 bps for the three and six months ended June 30, 2026, respectively, and 37.0 bps and 37.3 bps for the three and six months ended June 30, 2025, respectively.

The overall weighted average fee rate decrease for the three and six months ended June 30, 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 June 30, 2026 compared to three months ended June 30, 2025:

Management fees increased $54.2 million, or 44.3%, from $122.3 million for the three months ended June 30, 2025 to $176.5 million for the three months ended June 30, 2026.

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

Average assets under management increased 65.9%, from $132.4 billion for the three months ended June 30, 2025 to $219.6 billion for the three months ended June 30, 2026, mainly due to strong net flows and the positive equity market in the past twelve months.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Management fees increased $100.6 million, or 42.8%, from $235.2 million for the six months ended June 30, 2025 to $335.8 million for the six months ended June 30, 2026.

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

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.

Average assets under management increased 61.8%, from $127.2 billion for the six months ended June 30, 2025 to $205.8 billion for the six months ended June 30, 2026, mainly due to strong net flows and the positive equity market in the past twelve months.

Performance Fees

1 unchanged sentence

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

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Performance fees increased $4.1 million, or 157.7%, from $2.6 million for the three months ended June 30, 2025 to $6.7 million for the three months ended June 30, 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.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Performance fees increased $4.5 million, or 57.0%, from $7.9 million for the six months ended June 30, 2025 to $12.4 million for the six months ended June 30, 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.

GAAP Expenses

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The following table presents the components of U.S.

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

Three Months Ended March 31,

GAAP compensation expense for the three and six months ended June 30, 2026 and 2025:

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Sales-based compensation (2)

6.9 3.5 13.0 7.0

Variable compensation (3)

44.4 31.6 85.3 61.8

Acadian LLC key employee distributions (4)

9.1 4.0 15.4 7.1

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

33.3 19.7 49.4 19.4

GAAP compensation and benefits expense

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

Three Months Ended March 31,

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

($ in millions) 2026 2025 2026 2025

3 unchanged sentences

$ 44.4 $ 31.6 $ 85.3 $ 61.8

(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.

(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 with economic net income, which excludes $(0.3) million and $(0.5) million, respectively, 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 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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Compensation and benefits expense increased $37.4 million, or 44.6%, from $83.8 million for the three months ended June 30, 2025 to $121.2 million for the three months ended June 30, 2026.

Fixed compensation and benefits increased $2.5 million, or 10.0%, from $25.0 million for the three months ended June 30, 2025 to $27.5 million for the three months ended June 30, 2026, primarily reflecting an increase in head count, cost of living increases and higher payroll taxes.

Sales-based compensation increased $3.4 million, or 97.1%, from $3.5 million for the three months ended June 30, 2025 to $6.9 million for the three months ended June 30, 2026, driven by the timing of asset inflows in the last 12 months.

Variable compensation increased $12.8 million, or 40.5%, from $31.6 million for the three months ended June 30, 2025 to $44.4 million for the three months ended June 30, 2026.

The increase was primarily attributable to higher pre-bonus profits in the three months ended June 30, 2026, including changes in deferred bonus earned on performance fee revenues in the three months ended June 30, 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 $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.

Acadian LLC key employee distributions increased $5.1 million, or 127.5%, from $4.0 million for the three months ended June 30, 2025 to $9.1 million for the three months ended June 30, 2026.

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 three months ended March 31, 2026 is driven by higher operating earnings and the leveraged nature of this distribution share.

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 key employee equity changed by $13.6 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 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.

The change in the revaluation in the three months ended June 30, 2026 reflects primarily the increase in earnings period over period.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Compensation and benefits expense increased $72.6 million, or 50.2%, from $144.6 million for the six months ended June 30, 2025 to $217.2 million for the six months ended June 30, 2026.

Fixed compensation and benefits increased $4.8 million, or 9.7%, from $49.3 million for the six months ended June 30, 2025 to $54.1 million for the six months ended June 30, 2026, primarily reflecting an increase in headcount, cost of living increases and higher payroll taxes.

Sales-based compensation increased $6.0 million or 85.7% from $7.0 million for the six months ended June 30, 2025 to $13.0 million for the six months ended June 30, 2026, driven by the increase in asset inflows.

Variable compensation increased $23.5 million, or 38.0%, from $61.8 million for the six months ended June 30, 2025 to $85.3 million for the six months ended June 30, 2026.

The increase was primarily attributable to higher pre-bonus profits in the six months ended June 30, 2026, including changes in deferred bonus earned on performance fee revenues in the six months ended June 30, 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.

Acadian LLC key employee distributions increased $8.3 million, or 116.9%, from $7.1 million for the six months ended June 30, 2025 to $15.4 million for the six months ended June 30, 2026.

The change in Acadian LLC key employee distributions during the six months ended June 30, 2026 is driven by higher operating earnings and the leveraged nature of this distribution share.

Revaluations of Acadian LLC key employee equity changed by $30.0 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 six months ended June 30, 2026 reflects primarily the increase in earnings period over period.

General and Administrative Expense

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

General and administrative expense increased $5.2 million, or 23.9%, from $21.8 million for the three months ended June 30, 2025 to $27.0 million for the three months ended June 30, 2026.

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

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

General and administrative expense increased $7.8 million, or 17.7%, from $44.1 million for the six months ended June 30, 2025 to $51.9 million for the six months ended June 30, 2026.

The increase was primarily due to higher system, portfolio administrative, and consulting costs.

Depreciation and Amortization Expense

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Depreciation and amortization expense decreased $(0.5) million, or (11.9)% from $4.2 million for the three months ended June 30, 2025 to $3.7 million for the three months ended June 30, 2026.

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

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Depreciation and amortization expense decreased $(1.1) million, or (13.1)%, from $8.4 million for the six months ended June 30, 2025 to $7.3 million for the six months ended June 30, 2026.

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

GAAP Other Non-Operating Items of Income and Expense

3 unchanged sentences

interest expense.

Investment Income

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.

Investment Income (Loss)

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Investment income (loss) changed $2.2 million, from $(0.2) million for the three months ended June 30, 2025 to $2.0 million for the three months ended June 30, 2026, reflecting the increase in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Investment income increased $2.0 million, from $0.1 million for the six months ended June 30, 2025 to $2.1 million for the six months ended June 30, 2026, reflecting the increase in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Interest Income

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Interest income remained flat at $0.8 million for both the three months ended June 30, 2025 and June 30, 2026, respectively.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Interest income decreased $(0.2) million, or (10.5)%, from $1.9 million for the six months ended June 30, 2025 to $1.7 million for the six months ended June 30, 2026.

The decrease was due to a decrease in short-term investment returns and a decrease in average cash balances in the six months ended June 30, 2026.

Interest Expense

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Interest expense decreased $(1.7) million, or (32.1)%, from $(5.3) million for the three months ended June 30, 2025 compared to $(3.6) million for the three months ended June 30, 2026, reflecting a lower balance drawn on the revolving credit facility in the three months ended June 30, 2026.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Interest expense decreased $(3.1) million, or (30.7)%, from $10.1 million for the six months ended June 30, 2025 compared to $7.0 million for the six months ended June 30, 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

6 unchanged sentences

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Income tax expense increased $4.9 million, from $4.5 million for the three months ended June 30, 2025 to $9.4 million for the three months ended June 30, 2026.

The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interest in the three months ended June 30, 2026.

Six months ended June 30, 2026 compared to six months ended June 30, 2025 :

Income tax expense increased $9.8 million, from $12.8 million for the six months ended June 30, 2025 to $22.6 million for the six months ended June 30, 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 six months ended June 30, 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 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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Consolidated Funds’ revenue decreased $(0.6) million, from $2.5 million for the three months ended June 30, 2025 to $1.9 million for the three months ended June 30, 2026.

Consolidated Funds’ expense decreased $(0.6) million, from $1.4 million for the three months ended June 30, 2025 to $0.8 million for the three months ended June 30, 2026.

Net consolidated Funds’ investment gain decreased $(4.9) million from $12.1 million for the three months ended June 30, 2025 to $7.2 million for the three months ended June 30, 2026.

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

Six months ended June 30, 2026 compared to six months ended June 30, 2025 :

Consolidated Funds’ revenue decreased $(0.3) million, from $4.2 million for the six months ended June 30, 2025 to $3.9 million for the six months ended June 30, 2026.

Consolidated Funds’ expense decreased $(0.7) million, from $2.1 million for the six months ended June 30, 2025 to $1.4 million for the six months ended June 30, 2026.

Net consolidated Funds’ investment gain decreased $(10.4) million from $15.7 million for the six months ended June 30, 2025 to $5.3 million for the six months ended June 30, 2026.

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

GAAP Operating Metrics

The following table shows our key U.S.

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

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

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

($ in millions) 2026 2025 2026 2025

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Acadian LLC key employee distributions

$ 9.1 $ 4.0 $ 15.4 $ 7.1

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

1 unchanged sentence

GAAP Acadian LLC key employee distributions ratio (3)

22.5 % 20.9 % 17.7 % 13.4 %

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

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.

GAAP operating margin was 17.1% for the three months ended June 30, 2026, 12.1% for the three months ended June 30, 2025, 20.6% for the six months ended June 30, 2026 and 18.9% for the six months ended June 30, 2025.

(2) Excludes consolidated Funds’ expense of $0.8 million for the three months ended June 30, 2026, $1.4 million for the three months ended June 30, 2025, $1.4 million for the six months ended June 30, 2026, and $2.1 million for the six months ended June 30, 2025.

(3) Excludes the effect of Funds consolidation for the three and six months ended June 30, 2026 and 2025.

(4) Excludes consolidated Funds’ revenue of $1.9 million for the three months ended June 30, 2026, $2.5 million for the three months ended June 30, 2025, $3.9 million for the six months ended June 30, 2026, and $4.2 million for the six months ended June 30, 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 March 31,

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Acadian LLC key employee distributions

9.1 4.0 15.4 7.1

Operating income of consolidated Funds (1.1) (1.1) (2.5) (2.1)

Operating income before Acadian LLC key employee distributions

40.4 19.1 87.2 53.1

Variable compensation 44.4 31.6 85.3 61.8

32 unchanged sentences

Reconciliation of U.S.

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,

GAAP Net Income to Economic Net Income for the Three and Six Months Ended June 30, 2026 and 2025

The following table reconciles net income attributable to controlling interests to economic net income for the three and six months ended June 30, 2026 and 2025:

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

($ in millions) 2026 2025 2026 2025

4 unchanged sentences

Capital transaction costs

0.2 — 0.5 0.1

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

(7.0) (2.6) (5.4) (2.6)

Tax benefit of goodwill and acquired intangibles deductions 0.2 0.2 0.5 0.5

Discontinued operations attributable to controlling interests and restructuring (2)

0.2 (0.3) 0.2 (0.5)

ENI tax normalization

0.3 0.4 0.1 0.6

Tax effect of above adjustments, as applicable (3)

(7.0) (4.6) (11.8) (4.5)

Economic net income

$ 47.5 $ 22.9 $ 85.1 $ 43.2

(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,

(1) The net return on seed/co-investment (gains) losses and financings for the three and six months ended June 30, 2026 and 2025 is shown in the following table:

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

($ in millions) 2026 2025 2026 2025

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

Seed/Co-investment gains $ (8.2) $ (4.0) $ (7.7) $ (5.2)

Financing costs:

2 unchanged sentences

Financing costs 1.2 1.4 2.3 2.6

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

Net seed/co-investment gains and financing $ (7.0) $ (2.6) $ (5.4) $ (2.6)

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

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

(2) The three and six months ended June 30, 2026 includes legal-related restructuring costs of $0.2 million.

The three and six months ended June 30, 2025 includes severance-related items of $(0.3) million and $(0.5) million, respectively.

(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.

Prior to the first quarter of 2026, 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 of the adjusting items.

7 unchanged sentences

The following table reconciles U.S.

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

Three Months Ended March 31,

GAAP revenue to ENI revenue for the three and six months ended June 30, 2026 and 2025:

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

($ in millions) 2026 2025 2026 2025

1 unchanged sentence

Exclude revenue from consolidated Funds

(1.9) (2.5) (3.9) (4.2)

ENI revenue $ 183.2 $ 124.9 $ 348.2 $ 243.1

The following table identifies the components of ENI revenue:

Three Months Ended March 31,

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Performance fees (2)

6.7 2.6 12.4 7.9

ENI revenue $ 183.2 $ 124.9 $ 348.2 $ 243.1

10 unchanged sentences

The following table reconciles U.S.

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

Three Months Ended March 31,

GAAP operating expense to ENI operating expense for the three and six months ended June 30, 2026 and 2025.

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Non-cash key employee equity and profit interest revaluations

(33.3) (19.7) (49.4) (19.4)

Restructuring costs (1)

(0.2) 0.4 (0.2) 0.6

Funds’ operating expense (0.8) (1.4) (1.4) (2.1)

4 unchanged sentences

Acadian LLC key employee distributions

(9.1) (4.0) (15.4) (7.1)

ENI operating expense $ 64.9 $ 54.6 $ 126.1 $ 108.9

(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.

(1) The three and six months ended June 30, 2026 includes legal-related restructuring costs of $0.2 million.

The three and six months ended June 30, 2025 includes $(0.3) million and $(0.5) million, respectively, of severance-related items.

(2) 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 following table identifies the components of ENI operating expense:

Three Months Ended March 31,

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

General and administrative expenses (2)

33.7 25.4 64.7 51.2

Depreciation and amortization 3.7 4.2 7.3 8.4

2 unchanged sentences

The following table reconciles U.S.

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,

GAAP compensation and benefits expense for the three and six months ended June 30, 2026 and 2025 to ENI fixed compensation and benefits expense:

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

($ in millions) 2026 2025 2026 2025

1 unchanged sentence

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

(33.3) (19.7) (49.4) (19.4)

Sales-based compensation reclassified to ENI general & administrative expenses

(6.9) (3.5) (13.0) (7.0)

Acadian LLC key employee distributions

(9.1) (4.0) (15.4) (7.1)

Restructuring expenses (a)

2 unchanged sentences

ENI fixed compensation and benefits $ 27.5 $ 25.0 $ 54.1 $ 49.3

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

(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.

(2) The following table reconciles U.S.

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

Three Months Ended March 31,

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Sales-based compensation 6.9 3.5 13.0 7.0

Restructuring costs (a)

(0.2) 0.1 (0.2) 0.1

ENI general and administrative expense $ 33.7 $ 25.4 $ 64.7 $ 51.2

(a) The three and six months ended June 30, 2026 includes $0.2 million of legal-related restructuring costs.

Key Non-GAAP Operating Metrics

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

The following table shows our key non-GAAP operating metrics for the three and six months ended June 30, 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 March 31,

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

($ in millions) 2026 2025 2026 2025

17 unchanged sentences

Acadian LLC key employee distributions

$ 9.1 $ 4.0 $ 15.4 $ 7.1

ENI operating earnings (1)

1 unchanged sentence

ENI Acadian LLC key employee distributions ratio (7)

12.3 % 10.4 % 11.3 % 9.9 %

(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 March 31,

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

($ in millions) 2026 2025 2026 2025

4 unchanged sentences

Restructuring costs (a)

0.2 (0.4) 0.2 (0.6)

Acadian LLC key employee distributions

9.1 4.0 15.4 7.1

Variable compensation 44.4 31.9 85.3 62.3

6 unchanged sentences

ENI earnings after Acadian LLC key employee distributions $ 64.8 $ 34.4 $ 121.4 $ 64.8

(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.

(a) The three and six months ended June 30, 2026 includes legal-related restructuring costs of $0.2 million.

The three and six months ended June 30, 2025 includes $(0.3) million and $(0.5) million, respectively, 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.

(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 24.5% for the three months ended March 31, 2026 and 26.1% for the three months ended March 31, 2025.

GAAP operating margin, excluding the effect of consolidated Funds, is 17.1% for the three months ended June 30, 2026 and 12.1% for the three months ended June 30, 2025, 20.6% for the six months ended June 30, 2026, and 18.9% for the six months ended June 30, 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.

23 unchanged sentences

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

Three Months Ended March 31,

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Taxes at blended effective tax rate (2)

(16.0) (8.5) (34.2) (16.2)

Other reconciling tax adjustments 0.2 — 0.5 —

4 unchanged sentences

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

Three Months Ended March 31,

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

($ in millions) 2026 2025 2026 2025

3 unchanged sentences

Other ENI interest expense exclusions (a)

1.3 1.5 2.7 2.8

ENI net interest expense (1.5) (3.0) (2.6) (5.4)

ENI earnings after Acadian LLC key employee distributions (b)

64.8 34.4 121.4 64.8

Pre-tax economic net income $ 63.3 $ 31.4 $ 118.8 $ 59.4

4 unchanged sentences

(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%.

Prior to the first quarter of 2026, 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.

1 unchanged sentence

(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 $96.7 million as of March 31, 2026 and $97.2 million as of December 31, 2025, including direct investments in consolidated Funds.

The value of our seed capital investments was $109.8 million as of June 30, 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) March 31,

($ in millions) June 30,

2026 December 31,

29 unchanged sentences

Segment ENI Revenue

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,

The following table identifies the components of Quant & Solutions segment ENI revenue for the three and six months ended June 30, 2026 and 2025:

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

($ in millions) 2026 2025 2026 2025

1 unchanged sentence

Performance fees

6.7 2.6 12.4 7.9

Segment ENI revenue

1 unchanged sentence

Quant & Solutions Segment ENI Revenue

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Quant & Solutions ENI revenue increased $58.3 million, or 46.7%, from $124.9 million for the three months ended June 30, 2025 to $183.2 million for the three months ended June 30, 2026.

The increase was mainly attributable to 44.3% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, along with 157.7% higher performance fees, which are variable and are contractually triggered based on investment performance results over agreed upon time periods.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Quant & Solutions ENI revenue increased $105.1 million, or 43.2%, from $243.1 million for the six months ended June 30, 2025 to $348.2 million for the six months ended June 30, 2026.

The increase was attributable to 42.8% 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 57.0% 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 months ended March 31, 2026 and 2025:

($ in millions) Three Months Ended March 31,

The following table identifies the components of Quant & Solutions segment ENI expense for the three and six months ended June 30, 2026 and 2025:

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

($ in millions) 2026 2025 2026 2025

Fixed compensation & benefits

1 unchanged sentence

Variable compensation

43.4 30.8 83.2 60.2

Acadian LLC key employee distributions

9.1 4.0 15.4 7.1

Depreciation and amortization

3.7 4.2 7.3 8.4

General and administrative expense 31.8 23.2 60.8 46.9

2 unchanged sentences

Quant & Solutions Segment ENI Expense

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Quant & Solutions segment ENI expenses increased $28.2 million, or 32.9%, from $85.6 million for the three months ended June 30, 2025 to $113.8 million for the three months ended June 30, 2026.

Quant & Solutions ENI fixed compensation and benefits expense increased 10.3%, reflecting an increase in head count, cost of living increases, and higher payroll taxes.

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 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.

Quant & Solutions ENI variable compensation expense increased 40.9% 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, 2026.

Acadian LLC key employee distributions attributable to Quant & Solutions increased 127.5%.

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 37.1%, driven primarily by higher sales-based compensation, as well as higher system, portfolio administrative, and consulting costs and the impact of foreign currency changes.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Quant & Solutions segment ENI expenses increased $48.5 million, or 28.7%, from $168.9 million for the six months ended June 30, 2025 to $217.4 million for the six months ended June 30, 2026.

Quant & Solutions ENI fixed compensation and benefits expense increased 9.5%, reflecting an increase in head count, cost of living increases and higher payroll taxes.

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 38.2% 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 six months ended June 30, 2026.

Acadian LLC key employee distributions attributable to Quant & Solutions increased 116.9%.

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.

The change in Acadian LLC key employee distributions during the six months ended June 30, 2026 is driven by higher operating earnings and the leveraged nature of this distribution share.

Quant & Solutions ENI general and administrative expense increased 29.6% primarily due to higher sales-based compensation, as well as higher system, portfolio administrative, and consulting costs.

Unallocated corporate expense

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

Three Months Ended March 31,

The following table identifies unallocated corporate expense for the three and six months ended June 30, 2026 and 2025:

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

($ in millions) 2026 2025 2026 2025

Unallocated corporate expenses (1)

$ 4.8 $ 4.8 $ 9.6 $ 9.3

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

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.

Three months ended June 30, 2026 compared to three months ended June 30, 2025:

Unallocated corporate expense remained flat at $4.8 million for both the three months ended June 30, 2025 and June 30, 2026, respectively.

Six months ended June 30, 2026 compared to six months ended June 30, 2025:

Unallocated corporate expense increased $0.3 million, or 3.2%, from $9.3 million for the six months ended June 30, 2025 to $9.6 million for the six months ended June 30, 2026.

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

2 unchanged sentences

All amounts presented exclude consolidated Funds:

Three Months Ended March 31,

Six Months Ended June 30,

($ in millions) 2026 2025

4 unchanged sentences

(1) Excludes consolidated Funds.

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.

Comparison for the six months ended June 30, 2026 and 2025

Net cash from operating activities, excluding consolidated Funds, changed by $(12.0) million, from net cash provided of $10.7 million for the six months ended June 30, 2025 to net cash used of $(1.3) million for the six months ended June 30, 2026, driven by changes in net income offset by changes in operating assets and liabilities period-over-period.

In the six months ended June 30, 2026, net cash from investing activities, excluding consolidated Funds, changed by $(21.1) million, from $9.1 million provided in the six months ended June 30, 2025 to $(12.0) million used in the six months ended June 30, 2026, driven by net purchases of investment securities in the six months ended June 30, 2026.

Net cash provided in financing activities, excluding consolidated Funds, changed by $1.3 million, from $(24.8) million used in the six months ended June 30, 2025 to $(23.5) million used in the six months ended June 30, 2026, primarily due to lower share repurchases in the six months ended June 30, 2026.

Supplemental Liquidity Measure — Adjusted EBITDA

4 unchanged sentences

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 months ended March 31, 2026 and 2025.

Three Months Ended March 31,

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, 2026 and 2025.

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

($ in millions) 2026 2025 2026 2025

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Depreciation and amortization

3.7 4.2 7.3 8.4

EBITDA $ 43.2 $ 23.3 $ 86.8 $ 59.6

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

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

34.7 20.1 52.4 20.4

Gain on seed and co-investments (8.2) (4.0) (7.7) (5.2)

Restructuring (1)

0.2 (0.3) 0.2 (0.5)

Adjusted EBITDA

2 unchanged sentences

Depreciation and amortization (2)

(5.1) (4.7) (10.3) (9.5)

Tax on economic net income (15.8) (8.5) (33.7) (16.2)

1 unchanged sentence

$ 47.5 $ 22.9 $ 85.1 $ 43.2

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

(1) The three and six months ended June 30, 2026 includes legal-related restructuring costs of $0.2 million.

The three and six months ended June 30, 2025 includes $(0.3) million and $(0.5) million, respectively, 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 March 31, 2026, we have $129.0 million in cash and cash equivalents and $96.7 million in seed capital investments.

As of June 30, 2026, we have $64.6 million in cash and cash equivalents and $109.8 million in seed capital investments.

Borrowings and Long-Term Debt

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

($ in millions) March 31,

($ in millions) June 30,

2026 December 31,

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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.

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

At June 30, 2026, Acadian LLC’s Leverage Ratio was 0.6x and Acadian LLC’s Interest Coverage Ratio was 35.3x.

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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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.

As of June 30, 2026, Acadian LLC had unused lines of credit of $172.5 million comprised of undrawn commitments on the revolving credit facility of $175.0 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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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 $47.4 million and $129.9 million on the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively.

Additionally, we have recorded accrued incentive compensation of $90.6 million and $129.9 million on the Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively.

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

15 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