“AllianceBernstein Holding L.P. reported fourth-quarter adjusted diluted net income of $0.96 per unit, down from $1.05 the prior year, with net revenues declining 1.6% to $957.3 million and assets under management hitting a record $866.9 billion despite $4.7 billion in net outflows. Full-year adjusted operating income rose 4.2% to $1.19 billion, reflecting margin expansion to 33.7%, while strategic expansions in private markets and tax-exempt fixed income drove targeted growth areas.”
AllianceBernstein Holding L.P., a prominent global asset management firm, showcased resilience in its fourth-quarter performance, navigating through a landscape marked by fluctuating investor sentiment and economic uncertainties. The firm achieved adjusted diluted net income per unit of $0.96, reflecting disciplined cost management and targeted investments in high-growth segments. This figure, while lower than the previous year’s $1.05, underscores the company’s ability to maintain profitability amid reduced performance-based fees and broader industry pressures.
On a GAAP basis, diluted net income per unit stood at $0.90, a modest decline from $0.94 in the comparable period. The firm declared a cash distribution of $0.96 per unit, payable to unitholders of record, aligning closely with its adjusted earnings and demonstrating a commitment to returning value to stakeholders.
Net revenues on an adjusted basis totaled $957.3 million for the quarter, marking a 1.6% decrease year-over-year. This dip was primarily attributable to lower performance fees, which offset gains in base fees from higher average assets under management. GAAP net revenues were $1.22 billion, down 2.7% from the prior year.
Adjusted operating income reached $330 million, a 6.9% reduction, with the adjusted operating margin contracting to 34.5% from 36.4%. This margin compression highlights the impact of strategic investments in talent and platform enhancements, which are positioned to fuel future expansion.
For the full year, the firm reported adjusted net revenues of $3.52 billion, essentially flat compared to the previous year. Adjusted operating income climbed 4.2% to $1.19 billion, benefiting from a 140 basis point improvement in the adjusted operating margin to 33.7%. This progress was driven by revenue diversification and operational efficiencies, including streamlined processes across distribution and investment teams.
GAAP operating income for the year was $1.05 billion, down 6.5%, with a margin of 23.0%. The full-year GAAP diluted net income per unit was $2.97, while the adjusted figure rose to $3.33, up 2.5%. Cash distributions for the year totaled $3.38 per unit, a 3.7% increase, reinforcing the firm’s payout policy tied to adjusted earnings.
Key Financial Metrics
The following tables outline the firm’s financial performance on both GAAP and adjusted bases for the fourth quarter and full year.
| U.S. GAAP Financial Measures (in thousands, except per unit) | Fourth Quarter 2025 | Fourth Quarter 2024 | % Change | Full Year 2025 | Full Year 2024 | % Change |
|---|---|---|---|---|---|---|
| Net revenues | $1,223,991 | $1,257,556 | (2.7)% | $4,530,652 | $4,475,139 | 1.2% |
| Operating income | $308,534 | $317,507 | (2.8)% | $1,050,475 | $1,124,073 | (6.5)% |
| Operating margin | 25.1% | 25.0% | 10 bps | 23.0% | 24.7% | (170 bps) |
| AB Holding diluted net income per unit | $0.90 | $0.94 | (4.3)% | $2.97 | $3.71 | (19.9)% |
| Adjusted Financial Measures (in thousands, except per unit) | Fourth Quarter 2025 | Fourth Quarter 2024 | % Change | Full Year 2025 | Full Year 2024 | % Change |
| Net revenues | $957,307 | $973,294 | (1.6)% | $3,524,626 | $3,528,398 | (0.1)% |
| Operating income | $329,947 | $354,379 | (6.9)% | $1,188,026 | $1,140,144 | 4.2% |
| Operating margin | 34.5% | 36.4% | (190 bps) | 33.7% | 32.3% | 140 bps |
| Diluted net income per unit | $0.96 | $1.05 | (8.6)% | $3.33 | $3.25 | 2.5% |
| Distribution per unit | $0.96 | $1.05 | (8.6)% | $3.38 | $3.26 | 3.7% |
These metrics illustrate the firm’s focus on core operations, with adjustments primarily excluding acquisition-related expenses, performance-based compensation variability, and certain non-cash items.
Assets Under Management and Flows
Assets under management scaled to a record $866.9 billion at year-end, representing a 9.4% increase from $792.2 billion the prior year. This growth was propelled by $86 billion in market appreciation, which more than compensated for $11.3 billion in net outflows over the year. Quarter-end AUM rose 0.8% sequentially from $860.1 billion, while average AUM for the quarter was $865.1 billion, up 8.0% year-over-year.
Net flows presented a mixed picture, with fourth-quarter outflows totaling $4.7 billion, compared to $2.3 billion in the prior quarter and $4.8 billion a year ago. For the full year, net outflows amounted to $11.3 billion, versus $2.2 billion inflows in the previous year.
Breaking down by channel:
Institutional : Fourth-quarter outflows of $1.9 billion, with active strategies seeing $1.2 billion in redemptions. Full-year outflows were $4.6 billion, but excluding one-time reinsurance transactions, the channel achieved modest inflows of $0.6 billion.
Retail : Outflows accelerated to $3.5 billion in the quarter, driven by equity and taxable fixed income pressures. Annual outflows reached $9.1 billion, reflecting subdued demand in certain active equity products amid market rotations.
Private Wealth : Inflows of $0.7 billion in the quarter contributed to full-year inflows of $2.4 billion, marking the fifth consecutive year of positive flows and a 6% net-new-asset growth rate.
By asset class, active net flows were negative $9.4 billion for the year, with equity outflows of $22.5 billion offset by robust inflows in tax-exempt fixed income ($11.6 billion) and alternatives/multi-asset ($10.6 billion). Passive strategies saw $1.9 billion in outflows.
The firm’s private markets platform expanded significantly, with AUM growing 18% to $82 billion. This segment is on trajectory to reach $90 billion to $100 billion by 2027, bolstered by new mandates in infrastructure and real estate.
Segment Performance and Strategic Initiatives
The investment management segment benefited from diversified offerings, with base fees growing 5% on an adjusted basis for the year, supported by higher AUM levels. Performance fees, however, declined due to timing of realizations in certain alternative funds.
In fixed income, the tax-exempt category stood out with 13 straight years of organic growth, achieving a 23% increase in 2025. This success stems from strong relative performance and expanded distribution in separately managed accounts.
Alternatives and multi-asset solutions demonstrated strength, attracting $10.6 billion in active inflows, as clients sought diversified exposure amid interest rate uncertainties.
The Bernstein Private Wealth business continued its momentum, with inflows reflecting deepened relationships in ultra-high-net-worth segments. The firm also advanced its insurance partnerships, adding to a $19.7 billion institutional pipeline, including expected contributions from ongoing collaborations.
Headcount grew to 4,468 employees, up from 4,341, as the firm invested in talent across research, distribution, and technology to enhance client service and innovation.
Unit repurchases remained active, with $114.3 million spent in the quarter to acquire 2.8 million units, and $162.1 million for the year covering 4.1 million units. This activity supports earnings accretion and capital efficiency.
Market Context and Outlook
The quarter unfolded against a backdrop of moderate market gains, with the S&P 500 advancing 2.7%, MSCI EAFE up 4.9%, and fixed income benchmarks like the Bloomberg Barclays US Aggregate returning 1.1%. Full-year returns were stronger, with equities leading the way—S&P 500 at 17.9% and MSCI EAFE at 31.9%—while fixed income provided stability with 7.3% for US Aggregate and 10.0% for Global High Yield.
These dynamics influenced client allocations, with a shift toward quality and income-oriented strategies. The firm’s active management approach, emphasizing security selection, positioned it to capture opportunities in undervalued segments.
Looking ahead, the firm anticipates a constructive environment for growth, albeit with potential volatility from geopolitical factors and policy shifts. Emphasis will remain on expanding active ETFs, private credit, and sustainable investing to meet evolving client needs.
Disclaimer: This news report is for informational purposes only and does not constitute investment advice or tips. Sources are based on publicly available financial data.
