AB — AllianceBernstein Holding L.P.

Summary of AllianceBernstein Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Earnings: $0.83 per unit, up 4% year-over-year.
• Net Revenues: $871 million, a 4% increase year-over-year.
• Base Fees: Grew 5% year-over-year, driven by an 8% increase in average AUM.
• Performance Fees: Approximately $23 million, down $16 million year-over-year.
• Operating Income: $291 million, up 3% year-over-year.
• Adjusted Operating Margin: 33.4%, down 30 basis points year-over-year.
• Total Operating Expenses: $580 million, up 4% year-over-year.

2. Strategic Updates and Business Highlights

• Equitable Corebridge Merger: Expected to enhance scale and growth, with a target to manage at least $100 billion in general and separate account assets over time.
• Insurance Asset Management: Managed approximately $120 billion in general account assets, with strong growth in partnerships.
• Private Markets Platform: Reached $85 billion in AUM, reflecting a 13% year-over-year increase.
• Active ETF Growth: 25 strategies with over $16 billion in AUM, up 150% year-over-year.
• Institutional Channel: Record pipeline of $27.5 billion in AUM, with strong engagement in private credit and alternatives.

3. Forward Guidance and Outlook

• Performance Fees: Full-year guidance increased to $95 million to $115 million, driven by stronger-than-expected contributions from public market strategies.
• Institutional Flows: Anticipated acceleration in net flows in the second half of 2026, supported by a robust pipeline.
• Expense Management: Non-compensation expenses expected to normalize between $625 million and $650 million for the year.

4. Challenges and Points of Concern

• Active Net Outflows: Approximately $6 billion firm-wide, primarily from active equity strategies, reflecting performance challenges and client allocation shifts.
• Pressure on Performance: Active equity and taxable fixed income strategies faced significant outflows, particularly in Asia Pacific.
• Market Volatility: Geopolitical tensions and macroeconomic factors continue to create uncertainty, impacting client sentiment and investment performance.
• Fee Rate Dynamics: Firm-wide fee rate at 38.1 basis points, reflecting a negative mix shift in AUM.

5. Notable Q&A Insights

• Equitable Corebridge Merger: Management expects the merger to close by the end of 2026, with incremental AUM growth materializing in 2027 and beyond.
• Private Credit Market: Strong demand noted in institutional private credit, with low redemption rates in retail products.
• Adviser Growth: Adviser headcount increased by 5% in Q1, with a focus on retaining talent and integrating Generative AI to enhance productivity.
• Seasonality in Private Wealth: Anticipated soft flows in April due to tax season, but high net worth clients remain engaged and active in investments.
• ETF Distribution: The ETF business is expanding, with a focus on third-party distribution channels, showing strong growth momentum.

Overall, while AllianceBernstein demonstrated resilience and growth in key areas, challenges in active equity outflows and market volatility present ongoing risks that the company is actively managing.