AMG Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted EBITDA: Approximately $316 million, up 44% year-over-year.

Economic Earnings Per Share: $8.29, a 54% increase year-over-year.

Assets Under Management (AUM): Reached a record $942 billion, a 7% increase from the prior quarter and a 22% increase year-over-year.

Net Inflows: $13 billion in Q2, with $29 billion from alternative strategies, contributing to nearly $100 billion over the past 12 months.

Fee-Related Earnings: Grew 39% year-over-year, reflecting strong organic growth and margin expansion.

2Strategic Updates and Business Highlights

AMG's strategy continues to focus on alternative investments, which now account for over 60% of earnings.

The company repurchased approximately $189 million in shares during Q2, totaling $375 million in the first half of 2026.

Key growth areas identified include secondary strategies, infrastructure, absolute return strategies, and tax-aware investing.

The firm is actively pursuing new partnerships and investments, particularly in private markets and liquid alternatives, with a robust pipeline of opportunities.

3Forward Guidance and Outlook

For Q3 2026, AMG expects adjusted EBITDA between $315 million and $325 million and economic earnings per share between $8.43 and $8.71, projecting approximately 40% growth compared to Q3 2025.

The company anticipates continued strong demand for alternative strategies and expects to maintain a compound annual growth rate in economic earnings per share of 15% to 20% over the long term.

4Bad News, Challenges, or Points of Concern

AMG experienced net outflows of $14 billion in long-only equity strategies, indicating ongoing industry headwinds and performance challenges in this area.

There were net outflows of $2 billion in multi-asset and fixed income, attributed to seasonal factors.

The company acknowledges potential volatility in flows and performance in long-only strategies, although it expects some normalization in the future.

5Notable Q&A Insights

CEO Jay Horgen emphasized the sustainability of tax-aware investing as a long-term trend, noting its growing importance across the wealth management ecosystem.

Discussion on liquid alternatives revealed strong demand, with AMG's affiliates seeing significant inflows and a positive outlook for continued growth.

Horgen highlighted an active investment pipeline, particularly in private markets, and the strategic advantages AMG offers to independent firms seeking partnerships.

Concerns were raised regarding capacity in quant strategies, with Horgen assuring that AMG's affiliates have a long-standing track record of managing investment returns and capacity effectively. Overall, AMG reported strong financial performance and strategic progress in Q2 2026, while also facing challenges in certain areas of its business. The outlook remains positive, particularly for alternative strategies, as the company continues to navigate market dynamics.