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Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-08 · 280 added, 153 removed, 729 unchanged (37% of the section changed)

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

GAAP Results of Operations for the Three Months Ended March 31, 2025 and 2024 includes an explanation of changes in our U.S.

GAAP revenue, expense and other items for the three months ended March 31, 2025 and 2024, as well as key U.S.

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

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

GAAP 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, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses.

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

This section also provides key non-GAAP operating metrics.

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Borrowings and Long-Term Debt;

Other Compensation Liabilities.

The discussion of Adjusted EBITDA includes an explanation of how we calculate Adjusted EBITDA and a reconciliation of U.S.

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Summary Results of Operations

The following table summarizes our unaudited results of operations for the three months ended March 31, 2025 and 2024:

($ 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, 2025 and 2024:

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

2025 2024 2025 vs.

2024 2025 2024 2025 vs.

Revenue $ 127.4 $ 109.0 $ 18.4 $ 247.3 $ 214.7 $ 32.6

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GAAP operating margin (1)

26.6 % 21.7 % 494 bps

12.7 % 18.9 % (618) bps 19.5 % 20.3 % (81) bps

Earnings per share, basic ($) $ 0.28 $ 0.29 $ (0.01) $ 0.82 $ 0.67 $ 0.15

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ENI operating margin (6)

28.3 % 27.7 % 61 bps

30.7 % 27.1 % 360 bps 29.6 % 27.4 % 214 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.

Excludes severance-related items of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million for the three months ended March 31, 2024.

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

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

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

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

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

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

Our total assets under management were $121.9 billion as of March 31, 2025 and $117.3 billion as of December 31, 2024.

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

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

($ in billions) March 31, 2025 December 31, 2024

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

AUM % of total AUM % of total

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Small Cap Equity 29.4 19.5 % 25.0 21.3 %

Enhanced Equity 27.5 18.2 % 10.8 9.2 %

Global Equity 22.2 14.7 % 19.0 16.2 %

Emerging Markets Equity 21.7 14.4 % 18.1 15.4 %

Enhanced Equity 11.5 9.4 % 10.8 9.2 %

Other 17.9 11.8 % 17.8 15.2 %

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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, 2025 December 31, 2024

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

AUM % of total AUM % of total

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

($ in billions) March 31, 2025 December 31, 2024

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

AUM % of total AUM % of total

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The following table summarizes our asset flows and market appreciation (depreciation) 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) 2025 2024 2025 2024

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Our client types include:

Sub-advisory, which includes assets managed for third-party mutual funds sponsored by platforms in the U.S.

or abroad, where the end client is typically retail;

Institutional, which includes assets managed for public/government pension funds and other investments, including U.S.

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also includes corporate and union-sponsored pension plans and other investments;

Sub-advisory, which includes assets managed for third-party mutual funds sponsored by platforms in the U.S.

or abroad, where the end client is typically retail;

Wealth/other, which includes assets managed for registered investment advisor clients, private banks, high-net-worth clients, and family offices, defined contribution clients on certain platforms, mutual funds directly sponsored by Acadian LLC, and other assets.

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,

2025 2024 2025 2024

Institutional

Beginning balance $ 96.3 $ 86.8 $ 93.0 $ 81.7

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Ending balance $ 121.9 $ 90.2 $ 121.9 $ 90.2

Institutional

Beginning balance $ 14.0 $ 14.0 $ 13.1 $ 13.6

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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,

2025 2024 2025 2024

Beginning balance $ 77.0 $ 73.1 $ 74.7 $ 70.2

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Net flows 13.9 1.7 16.7 3.3

Market appreciation (depreciation) (0.5) 2.2

Market appreciation 5.4 0.7 4.9 2.9

Ending balance $ 64.2 $ 39.7 $ 64.2 $ 39.7

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Ending balance $ 151.1 $ 112.6 $ 151.1 $ 112.6

At March 31, 2025, our total assets under management were $121.9 billion, an increase of $4.6 billion, or 3.9%, compared to $117.3 billion at December 31, 2024 and an increase of $11.5 billion, or 10.4%, compared to $110.4 billion at March 31, 2024.

The increase in assets under management compared to March 31, 2024 was driven by the equity market appreciation and positive NCCF in the last twelve months.

The change in assets under management during the three months ended March 31, 2025 reflects net market appreciation of $0.8 billion, and net inflows of $3.8 billion.

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

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

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

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, 2025, our net inflows were $3.8 billion compared to $0.4 billion for the three months ended March 31, 2024.

The change in net flows during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily driven by strong gross sales, which increased to $8.8 billion in the three months ended March 31, 2025.

Reinvested income and distributions of $0.8 billion and $0.8 billion are reflected in the net inflows for the three months ended March 31, 2025 and March 31, 2024, respectively.

GAAP Results of Operations for the Three Months Ended March 31, 2025 and 2024

GAAP results of operations were as follows for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

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

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

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

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

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

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

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

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

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

(Decrease) 2025 2024 Increase

GAAP Statement of Operations (1)

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Operating income 16.2 20.6 (4.4) 48.1 43.5 4.6

Investment income 0.3 0.9 (0.6)

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

Interest income 0.8 0.9 (0.1) 1.9 2.2 (0.3)

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Net income attributable to redeemable non-controlling interests in consolidated Funds

9.0 0.5 8.5 12.7 1.6 11.1

Net income attributable to controlling interests

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($ in millions) Three Months Ended

June 30, Six Months Ended

GAAP Consolidated Statements of Operations

2025 2024 2025 2024

Net income attributable to controlling interests $ 10.1 $ 11.0 $ 30.2 $ 25.6

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management fees earned based on our overall weighted average fee rate charged to our clients and the level of assets under management;

performance fees earned when our investment performance over agreed time periods for certain clients has differed from pre-determined hurdles;

performance fees earned when our investment performance over agreed time periods for certain clients has differed from predetermined hurdles;

revenue from consolidated Funds, a portion of which is attributable to the holders of non-controlling interests in consolidated Funds.

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Our management fees are a function of the fee rates charged to our clients, which are typically expressed in basis points, and the levels of our assets under management.

Average basis points earned on average assets under management were 37.9 bps for the three months ended March 31, 2025, and 38.2 bps for the three months ended March 31, 2024.

The overall weighted average fee rate decrease for the three months ended March 31, 2025 is the result of changes in the mix of assets under management caused by market movements and client flows.

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Management fees increased $10.7 million, or 10.5%, from $102.2 million for the three months ended March 31, 2024 to $112.9 million for the three months ended March 31, 2025.

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

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

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

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

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

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

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

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

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

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

Average assets under management increased 12.2%, from $107.6 billion for the three months ended March 31, 2024 to $120.7 billion for the three months ended March 31, 2025, mainly due to the positive equity market and positive net flows in the past twelve months.

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

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 March 31, 2025 compared to three months ended March 31, 2024:

Performance fees increased $2.2 million, or 71.0%, from $3.1 million for the three months ended March 31, 2024 to $5.3 million for the three months ended March 31, 2025, primarily due to strong performance relative to benchmarks in certain strategies.

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

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

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

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

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

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 months ended March 31, 2025 and 2024:

Three Months Ended March 31,

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

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

($ in millions) 2025 2024 2025 2024

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Sales-based compensation (2)

3.5 2.0 7.0 3.6

Variable compensation (3)

31.6 27.9 61.8 54.3

Acadian LLC key employee distributions (4)

4.0 2.1 7.1 4.3

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

19.7 5.9 19.4 10.3

GAAP compensation and benefits expense

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

Three Months Ended March 31,

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

($ in millions) 2025 2024 2025 2024

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$ 31.6 $ 27.9 $ 61.8 $ 54.3

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

For the three months ended March 31, 2024, $26.6 million of variable compensation expense (of the $26.4 million above) is included with economic net income, which excludes $(0.2) million of variable compensation associated with restructuring at Acadian LLC.

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

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

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

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

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

(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, 2025 compared to three months ended March 31, 2024:

Compensation and benefits expense increased $2.7 million, or 4.6%, from $58.1 million for the three months ended March 31, 2024 to $60.8 million for the three months ended March 31, 2025.

Fixed compensation and benefits increased $0.8 million, or 3.4%, from $23.5 million for the three months ended March 31, 2024 to $24.3 million for the three months ended March 31, 2025, primarily reflecting cost of living increases and the cost of new hires supporting our growth initiatives.

Variable compensation increased $3.8 million, or 14.4%, from $26.4 million for the three months ended March 31, 2024 to $30.2 million for the three months ended March 31, 2025.

The increase was primarily attributable to higher pre-bonus profits in the three months ended March 31, 2025.

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

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

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

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

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

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

Sales-based compensation increased $1.9 million or 118.8% from $1.6 million for the three months ended March 31, 2024 to $3.5 million for the three months ended March 31, 2025, as a result of the structure of sales-based compensation programs, driven by the timing of asset inflows which trigger sales-based compensation in both current and prior periods.

Acadian LLC key employee distributions increased $0.9 million, or 40.9%, from $2.2 million for the three months ended March 31, 2024 to $3.1 million for the three months ended March 31, 2025.

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

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

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, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share.

Revaluations of Acadian LLC equity changed $(4.7) million, reflecting fluctuations in the value of key employee ownership interests at Acadian LLC, as the value of the equity plan liability increased $4.4 million for the three months ended March 31, 2024 and decreased $(0.3) million for the three months ended March 31, 2025.

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 $13.8 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, 2025 reflect changes 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, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.

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

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

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

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

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

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

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

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

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

Revaluations of Acadian LLC equity changed by $9.1 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC.

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

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

General and Administrative Expense

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

General and administrative expense increased $2.3 million, or 11.5%, from $20.0 million for the three months ended March 31, 2024 to $22.3 million for the three months ended March 31, 2025.

The increase was primarily due to higher systems, outside services and portfolio administrative costs, reflecting our continued investment in growth initiatives and capabilities, foreign currency loss, partially offset by lower consultant costs.

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

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

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

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

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

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

Depreciation and Amortization Expense

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Depreciation and amortization expense decreased $(0.4) million, or (8.7)%, from $4.6 million for the three months ended March 31, 2024 to $4.2 million for the three months ended March 31, 2025.

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

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

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

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

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

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

GAAP Other Non-Operating Items of Income and Expense

Other non-operating items of income and expense consist of:

investment income;

investment income (loss);

interest income;

interest expense.

Investment Income

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Investment income decreased $(0.6) million, or (66.7)%, from $0.9 million for the three months ended March 31, 2024 to $0.3 million for the three months ended March 31, 2025, reflecting a decrease in returns generated by seed capital investments due to market depreciation in the three months ended March 31, 2025.

Investment Income (loss)

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

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

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

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

Interest Income

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Interest income decreased $(0.2) million, or (15.4)%, from $1.3 million for the three months ended March 31, 2024 compared to $1.1 million for the three months ended March 31, 2025.

The decrease was due to lower average cash balances and decreases in short-term investment returns in the three months ended March 31, 2025.

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

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

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

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

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

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

Interest Expense

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Interest expense decreased $(0.2) million, or (4.0)%, from $5.0 million for the three months ended March 31, 2024 compared to $4.8 million for the three months ended March 31, 2025, reflecting a decrease in interest rates on the revolving credit facility in the three months ended March 31, 2025.

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

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

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

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

GAAP Income Tax Expense

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

Three months ended March 31, 2025 compared to three months ended March 31, 2024 :

Income tax expense increased $2.2 million, from $6.1 million for the three months ended March 31, 2024 to $8.3 million for the three months ended March 31, 2025.

The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interest in the three months ended March 31, 2025.

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

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

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

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

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

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

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

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

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

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

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, 2025 compared to three months ended March 31, 2024 :

Consolidated Funds’ revenue increased $1.3 million, from $0.4 million for the three months ended March 31, 2024 to $1.7 million for the three months ended March 31, 2025.

Consolidated Funds’ expense increased $0.6 million, from $0.1 million for the three months ended March 31, 2024 to $0.7 million for the three months ended March 31, 2025.

Net consolidated Funds’ investment gain increased $1.9 million from $1.7 million for the three months ended March 31, 2024 to $3.6 million for the three months ended March 31, 2025.

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

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

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

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

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

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

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

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

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

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, 2025 and 2024.

Three Months Ended March 31,

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

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

($ in millions) 2025 2024 2025 2024

14 unchanged sentences

Acadian LLC key employee distributions

$ 4.0 $ 2.1 $ 7.1 $ 4.3

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

1 unchanged sentence

GAAP Acadian LLC key employee distributions ratio (3)

20.9 % 9.5 % 13.4 % 9.2 %

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

GAAP operating margin is 26.1% for the three months ended March 31, 2025, and 21.5% for the three months ended March 31, 2024.

(2) Excludes consolidated Funds’ expense of $0.7 million for the three months ended March 31, 2025, and $0.1 million for the three months ended March 31, 2024.

(3) Excludes the effect of Funds consolidation for the three months ended March 31, 2025 and 2024.

(4) Excludes consolidated Funds’ revenue of $1.7 million for the three months ended March 31, 2025, and $0.4 million for the three months ended March 31, 2024.

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

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

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

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

(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) 2025 2024 2025 2024

2 unchanged sentences

Acadian LLC key employee distributions

4.0 2.1 7.1 4.3

Operating income of consolidated Funds (1.1) (0.6) (2.1) (0.9)

Operating income before Acadian LLC key employee distributions

19.1 22.1 53.1 46.9

Variable compensation 31.6 27.9 61.8 54.3

32 unchanged sentences

Reconciliation of U.S.

GAAP Net Income to Economic Net Income for the Three Months Ended March 31, 2025 and 2024

The following table reconciles net income attributable to controlling interests to economic net income for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

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

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

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

($ in millions) 2025 2024 2025 2024

4 unchanged sentences

Capital transaction costs

— 0.1 0.1 0.2

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

(2.6) (0.2) (2.6) (1.4)

Tax benefit of goodwill and acquired intangibles deductions 0.2 0.4 0.5 0.8

Discontinued operations attributable to controlling interests and restructuring (2)

(0.3) 1.4 (0.5) 1.4

ENI tax normalization

0.4 0.6 0.6 0.6

Tax effect of above adjustments, as applicable (3)

(4.6) (2.0) (4.5) (2.9)

Economic net income

$ 22.9 $ 17.2 $ 43.2 $ 34.6

(1) The net return on seed/co-investment (gains) losses and financings for the three months ended March 31, 2025 and 2024 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, 2025 and 2024 is shown in the following table:

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

($ in millions) 2025 2024 2025 2024

4 unchanged sentences

Financing costs 1.4 0.8 2.6 1.4

Net seed/co-investment (gains) losses and financing $ — $ (1.2)

Net seed/co-investment gains and financing $ (2.6) $ (0.2) $ (2.6) $ (1.4)

* 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.

The three months ended March 31, 2024 includes severance-related items of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million.

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

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

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

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

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

7 unchanged sentences

The following table reconciles U.S.

GAAP revenue to ENI revenue for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

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

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

($ in millions) 2025 2024 2025 2024

1 unchanged sentence

Exclude revenue from consolidated Funds

(2.5) (0.7) (4.2) (1.1)

ENI revenue $ 124.9 $ 108.3 $ 243.1 $ 213.6

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) 2025 2024 2025 2024

2 unchanged sentences

Performance fees (2)

2.6 2.8 7.9 5.9

ENI revenue $ 124.9 $ 108.3 $ 243.1 $ 213.6

10 unchanged sentences

The following table reconciles U.S.

GAAP operating expense to ENI operating expense for the three months ended March 31, 2025 and 2024.

Three Months Ended March 31,

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

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

($ in millions) 2025 2024 2025 2024

2 unchanged sentences

Non-cash key employee equity and profit interest revaluations

(19.7) (5.9) (19.4) (10.3)

Restructuring costs (1)

0.4 (1.4) 0.6 (1.4)

Funds’ operating expense (1.4) (0.1) (2.1) (0.2)

4 unchanged sentences

Acadian LLC key employee distributions

(4.0) (2.1) (7.1) (4.3)

ENI operating expense $ 54.6 $ 51.5 $ 108.9 $ 101.0

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

The three months ended March 31, 2024 includes $(0.2) million of severance-related items and $0.2 million costs associated with the transfer of an insurance policy from our former parent.

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

The three months ended March 31, 2024 excludes $(0.2) million severance-related items that is included within restructuring costs.

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

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

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

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

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

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

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

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) 2025 2024 2025 2024

2 unchanged sentences

General and administrative expenses (2)

25.4 22.6 51.2 44.0

Depreciation and amortization 4.2 4.6 8.4 9.2

2 unchanged sentences

The following table reconciles U.S.

GAAP compensation and benefits expense for the three months ended March 31, 2025 and 2024 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, 2025 and 2024 to ENI fixed compensation and benefits expense:

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

($ in millions) 2025 2024 2025 2024

1 unchanged sentence

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

(19.7) (5.9) (19.4) (10.3)

Sales-based compensation reclassified to ENI general & administrative expenses

(3.5) (2.0) (7.0) (3.6)

Acadian LLC key employee distributions

(4.0) (2.1) (7.1) (4.3)

Restructuring expenses (a)

0.3 (0.5) 0.5 (0.3)

Variable compensation

1 unchanged sentence

ENI fixed compensation and benefits $ 25.0 $ 24.3 $ 49.3 $ 47.8

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

The three months ended March 31, 2024 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.

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

(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) 2025 2024 2025 2024

3 unchanged sentences

Restructuring costs (a)

0.1 (0.5) 0.1 (0.7)

ENI general and administrative expense $ 25.4 $ 22.6 $ 51.2 $ 44.0

(a) Reflects $0.2 million of costs associated with the transfer of an insurance policy from our former parent for the three months ended March 31, 2024.

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

Key Non-GAAP Operating Metrics

The following table shows our key non-GAAP operating metrics for the three months ended March 31, 2025 and 2024.

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

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

1 unchanged sentence

GAAP measure:

Three Months Ended March 31,

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

($ in millions) 2025 2024 2025 2024

17 unchanged sentences

Acadian LLC key employee distributions

$ 4.0 $ 2.1 $ 7.1 $ 4.3

ENI operating earnings (1)

1 unchanged sentence

ENI Acadian LLC key employee distributions ratio (7)

10.4 % 7.1 % 9.9 % 7.3 %

(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) 2025 2024 2025 2024

4 unchanged sentences

Restructuring costs (a)

(0.4) 1.4 (0.6) 1.4

Acadian LLC key employee distributions

4.0 2.1 7.1 4.3

Variable compensation 31.9 27.4 62.3 54.0

6 unchanged sentences

ENI earnings after Acadian LLC key employee distributions $ 34.4 $ 27.3 $ 64.8 $ 54.3

$ 30.4 $ 27.0

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

The three months ended March 31, 2024 includes $(0.2) million of severance-related items and $0.2 million of costs associated with the transfer of an insurance policy from our former parent.

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

The three months ended March 31, 2024 excludes $(0.2) million of severance-related items that are included within restructuring costs.

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

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

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

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

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

(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 26.1% for the three months ended March 31, 2025, and 21.5% for the three months ended March 31, 2024.

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

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 United States statutory tax to tax on economic net income:

Three Months Ended March 31,

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

($ in millions) 2025 2024 2025 2024

3 unchanged sentences

federal and state statutory rates (2)

(8.5) (6.5) (16.2) (13.1)

Other reconciling tax adjustments — (0.1) — (0.1)

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) 2025 2024 2025 2024

3 unchanged sentences

Other ENI interest expense exclusions (a)

1.5 0.9 2.8 1.6

ENI net interest expense (3.0) (3.5) (5.4) (6.5)

ENI earnings after Acadian LLC key employee distributions (b)

34.4 27.3 64.8 54.3

Pre-tax economic net income $ 31.4 $ 23.8 $ 59.4 $ 47.8

6 unchanged sentences

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

The value of our seed capital investments was $91.5 million as of March 31, 2025 and $90.3 million as of December 31, 2024, including direct investments in consolidated Funds.

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

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

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

($ in millions) March 31,

($ in millions) June 30,

2025 December 31,

28 unchanged sentences

Segment ENI Revenue

The following table identifies the components of Quant & Solutions segment ENI revenue for the three months ended March 31, 2025 and 2024:

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, 2025 and 2024:

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

($ in millions) 2025 2024 2025 2024

1 unchanged sentence

Performance fees

2.6 2.8 7.9 5.9

Segment ENI revenue

1 unchanged sentence

Quant & Solutions Segment ENI Revenue

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Quant & Solutions ENI revenue increased $12.9 million, or 12.3%, from $105.3 million for the three months ended March 31, 2024 to $118.2 million for the three months ended March 31, 2025.

The increase was attributable to 71.0% higher performance fees due to strong performance relative to market in certain strategies in the three months ended March 31, 2025, and 10.5% higher management fees driven by higher average AUM resulting from positive equity markets in the past twelve months.

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

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

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

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

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

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

Segment ENI Expense

The following table identifies the components of Quant & Solutions segment ENI expense for the three months ended March 31, 2025 and 2024:

($ 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, 2025 and 2024:

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

2025 2024 2025 2024

Fixed compensation & benefits

1 unchanged sentence

Variable compensation

30.8 26.8 60.2 52.8

Acadian LLC key employee distributions

4.0 2.1 7.1 4.3

Depreciation and amortization

4.2 4.6 8.4 9.2

General and administrative expense 23.2 20.5 46.9 40.0

2 unchanged sentences

Quant & Solutions Segment ENI Expense

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Quant & Solutions segment ENI expenses increased $9.4 million, or 12.7%, from $73.9 million for the three months ended March 31, 2024 to $83.3 million for the three months ended March 31, 2025.

Quant & Solutions ENI fixed compensation and benefits expense increased 6.0%, reflecting cost of living increases and the cost of new hires supporting our growth initiatives.

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

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

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

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 13.1% as a result of higher earnings before variable compensation, partially offset by changes in deferred compensation expense earned on current and prior year performance fee revenues in the three months ended March 31, 2025.

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

Acadian LLC key employee distributions attributable to Quant & Solutions increased 90.5%.

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 13.2%, reflecting higher systems and consultants costs, partially offset by the impact of foreign currency changes.

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

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

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

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

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

Acadian LLC key employee distributions attributable to Quant & Solutions increased 65.1%.

The change in Acadian LLC key employee distributions during the three months ended March 31, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share.

Quant & Solutions ENI general and administrative expense increased 21.5% primarily due to higher systems, outside services and portfolio administrative costs, reflecting our continued investment in growth initiatives and capabilities, foreign currency loss, partially offset by lower consultant costs.

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

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

Unallocated corporate expense

The following table identifies unallocated corporate expense for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

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

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

($ in millions) 2025 2024 2025 2024

Unallocated corporate expenses (1)

$ 4.8 $ 4.8 $ 9.3 $ 9.4

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

Three months ended March 31, 2025 compared to three months ended March 31, 2024:

Unallocated corporate expense decreased $(0.1) million, or (2.2)%, from $4.6 million for the three months ended March 31, 2024 to $4.5 million for the three months ended March 31, 2025.

The decrease was driven by lower fixed compensation and benefits expense.

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

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

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

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

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

Capital Resources and Liquidity

1 unchanged sentence

All amounts presented exclude consolidated Funds:

Three Months Ended March 31,

Six Months Ended June 30,

($ in millions) 2025 2024

4 unchanged sentences

(1) Excludes consolidated Funds.

Comparison for the three months ended March 31, 2025 and 2024

Net cash from operating activities, excluding consolidated Funds, decreased $(9.4) million, from net cash used of $(39.3) million for the three months ended March 31, 2024 to net cash used of $(48.7) million for the three months ended March 31, 2025, driven by changes in net income offset by changes in operating assets and liabilities period-over-period.

In the three months ended March 31, 2025, net cash from investing activities, excluding consolidated Funds, changed by $13.2 million, from $(1.4) million used in the three months ended March 31, 2024 to $11.8 million provided in the three months ended March 31, 2025, driven by higher net sales of investment securities in the three months ended March 31, 2025.

Net cash from financing activities, excluding consolidated Funds, increased $65.3 million, from $(3.7) million used in the three months ended March 31, 2024 to $61.6 million provided in the three months ended March 31, 2025, primarily due to higher share repurchases in the three months ended March 31, 2024.

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

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

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

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

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 months ended March 31, 2025 and 2024.

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, 2025 and 2024.

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

($ in millions) 2025 2024 2025 2024

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Depreciation and amortization

4.2 5.0 8.4 9.6

EBITDA $ 23.3 $ 26.0 $ 59.6 $ 55.0

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

20.1 6.1 20.4 10.8

Gain on seed and co-investments (4.0) (1.0) (5.2) (2.8)

Restructuring (1)

(0.3) 0.9 (0.5) 0.9

Adjusted EBITDA

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Depreciation and amortization (2)

(4.7) (4.7) (9.5) (9.6)

Tax on economic net income (8.5) (6.6) (16.2) (13.2)

1 unchanged sentence

$ 22.9 $ 17.2 $ 43.2 $ 34.6

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

The three months ended March 31, 2024 includes $(0.2) million of severance-related items and $0.2 million of costs associated with the transfer of an insurance policy from our former parent.

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

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

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

(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, 2025, we have $119.6 million in cash and cash equivalents and $91.5 million in seed capital investments.

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

2025 December 31,

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Third party borrowings:

4.80% Senior Notes Due 2026 $ 274.4 $ 274.3 4.80% July 27, 2026

$275 million 4.80% Senior Notes Due 2026

$ 274.5 $ 274.3 4.80% July 27, 2026

Total third party borrowings $ 274.5 $ 274.3

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

At March 31, 2025, Acadian LLC’s Leverage Ratio was 0.4x and Acadian LLC’s Interest Coverage Ratio was 109.7x.

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

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 $34.6 million and $119.6 million on the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively.

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

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

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

Critical accounting policies and estimates are those that require

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

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

Recent Accounting Developments

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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