AllianceBernstein Holding L.P. (NYSE:AB) reported fourth-quarter adjusted earnings on Thursday that exceeded analyst expectations, while assets under management climbed to a record high, despite continued net client outflows.
The investment management firm posted adjusted earnings of $0.96 per unit for the quarter, ahead of analyst forecasts of $0.92. Revenue reached $1.22 billion, well above the consensus estimate of $956.45 million. However, GAAP earnings per unit came in at $0.90, down 4.3% from $0.94 in the same period last year. The company’s shares slipped about 1% in premarket trading following the results announcement.
“2025 marked a year of disciplined execution and strategic progress for AllianceBernstein as we broadened our platform and deepened client relationships,” said Seth Bernstein, CEO of AllianceBernstein. “Against a volatile macro backdrop weighing on client sentiment and net flows, we closed the year with a record $867 billion in assets under management.”
AllianceBernstein recorded total net outflows of $4.7 billion during the fourth quarter. The institutional segment experienced $1.9 billion in outflows, while the retail channel recorded $3.5 billion in outflows. The private wealth division was the only segment to post positive flows, generating $0.7 billion in net inflows.
Adjusted operating income for the quarter was $330 million, representing a 7% year-on-year decline. Adjusted operating margin fell to 34.5%, down from 36.4% in the same quarter last year. Revenue declined 2.7% year-on-year, primarily due to lower performance-based fee income.
For full-year 2025, assets under management increased 9.4% to $866.9 billion, compared with $792.2 billion at the end of 2024. The increase was largely driven by market gains of approximately $86 billion, which more than offset net outflows totalling $11.3 billion.
AllianceBernstein also declared a cash distribution of $0.96 per unit, scheduled to be paid on March 12, 2026.