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%, slightly down from the previous 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, potentially managing over $100 billion in general and separate account assets.
• Insurance Asset Management: Managed approximately $120 billion in general account assets, with a growing roster of global partners.
• Private Markets Platform: Reached $85 billion in AUM, up 13% year-over-year, with strong institutional momentum.
• SMA Business: Stands at $63 billion, growing at a 15% annualized rate.
• Active ETFs: AUM increased over 150% year-over-year to more than $16 billion, with 8 ETFs surpassing $1 billion in AUM.

3. Forward Guidance and Outlook

• Performance Fee Outlook: Increased to $95 million to $115 million for 2026, with a public markets performance fee outlook of $25 million to $35 million.
• Institutional Channel: Record pipeline of $27.5 billion, expected to support accelerating net flows in the second half of 2026.
• Expense Guidance: Non-compensation expenses expected to range between $625 million and $650 million for the full year.

4. Challenges and Points of Concern

• Active Net Outflows: Approximately $6 billion in firm-wide active net outflows, primarily in active equity strategies, reflecting performance challenges.
• Market Volatility: Geopolitical tensions and economic instability have led to elevated volatility, impacting investment performance.
• Performance Metrics: Only 23% of AUM outperformed benchmarks over the past year, indicating challenges in equity performance.
• Retail Outflows: Significant outflows in active equity and taxable fixed income, particularly in Asia Pacific.

5. Notable Q&A Insights

• Equitable Corebridge Merger: Management expects the merger to close by year-end 2026, with new AUM growth materializing in 2027 and beyond.
• Private Credit Market: Strong momentum observed in institutional private credit, with low redemption rates in retail vehicles.
• Fee Rate Dynamics: Future fee rates will reflect a mix of organic growth and market movements, with no specific guidance provided.
• Adviser Growth: Adviser headcount increased by 5% in Q1, with a focus on adding new talent and leveraging technology, including AI, for efficiency and client engagement.
• Seasonality in Private Wealth: April typically sees softer flows due to tax payments, but high net worth clients remain engaged despite macroeconomic risks.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of AllianceBernstein's performance and outlook for Q1 2026.