July 30, 2026
Acadian Q2'26: Strong Outperformance
Key Performance Metrics | |||
Q2'25 | Q2'26 | Increase (Decrease) | |
Net income attributable to controlling | |||
170% | |||
interests ($m) | $10.1 | $27.3 | |
U.S. GAAP diluted EPS ($s) | $0.28 | $0.76 | 171% |
Economic net income ($m) | $22.9 | $47.5 | 107% |
ENI diluted EPS ($s) | $0.64 | $1.33 | 108% |
Adjusted EBITDA ($m) | $39.1 | $69.9 | 79% |
NCCF ($b) | $13.8 | $4.3 | n/m* |
EOP AUM ($b) | $151.1 | $232.7 | 54% |
Highlights
U.S. GAAP Net Income attributable to controlling interests increased 170% and EPS increased 171%, driven by increased management fees, partially offset by non-cash expenses representing changes in the value of Acadian LLC equity and profit interests
ENI increased 107% to $47.5 million, driven by revenue growth, and ENI EPS was up 108% to $1.33
Adjusted EBITDA was up 79% primarily driven by increase in recurring management fees
Net flows of $4.3 billion, representing a 9% annualized organic growth rate, led by Enhanced and Extension equity strategies
AUM grew to $232.7 billion, up 54% from Q2'25, another quarter of record-high assets in Acadian's history, driven by market appreciation and continued positive net flows
Please see Supplemental Information, Reconciliations and Disclosures Please see Definitions and Additional Notes
*Q2'26 NCCF reflects 9% annualized organic growth rate
Investment Performance: Outstanding Strategy Track Records
% of Major Strategy Group Assets Outperforming Benchmarks
Global Equity
Emerging Markets Equity
Non-US Equity
100%
100%
100%
100%
100%
100%
100%
99%
100%
3-Year 5-Year 10-Year
3-Year 5-Year 10-Year
3-Year 5-Year 10-Year
Small Cap Equity
Enhanced Equity
100%
100%
100%
100%
100%
100%
3-Year 5-Year 10-Year 3-Year 5-Year 10-Year
Data as of June 30, 2026
Figures calculated using gross of fee strategy composite returns. Global, Emerging, and Non-US Equity groupings reflect similar composites focused on common geographies. Enhanced and Small Cap Equity mandates are separately reflected. See Definitions and Additional Notes for additional information on the methodology used to calculate investment performance. Past performance is no guarantee of future results. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Acadian.
Investment Performance: Firmwide Long-Term Alpha Generation
Consolidated Firmwide Investment Performance
Revenue Weighted
Asset Weighted
5-year annualized return in excess of benchmark
+3.6%5-year annualized return in excess of benchmark
96%
96%
96%
94%
95%
94%
3-Year 5-Year 10-Year 3-Year 5-Year 10-Year
Data as of June 30, 2026
Note: As of June 30, 2026, Acadian's assets representing 77% of revenue were outperforming benchmarks on a 1-year basis, compared to 85% as of June 30, 2025 and 67% as of March 31, 2026
Please see Definitions and Additional Notes for additional information on the methodology used to calculate investment performance. Past performance is no guarantee of future results. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Acadian.
Net Client Cash Flows: Sustained Momentum
Highlights
Q2'26 net flows of $4.3 billion, representing a 9% annualized organic growth rate, driven by Enhanced and Extension Equity strategies
Ten consecutive quarters of positive net flows
Net Client Cash Flows ($ in billions)
$21.4
$13.8
$6.4
$5.4
$4.3
Q2'25 Q3'25 Q4'25 Q1'26 Q2'26
$4.3 billionQ2'26 Net flows
+9%annualized organic growth rate
Q2 2026 FINANCIAL RESULTS
Key Performance Metrics
Increase
Outstanding Performance Metrics
U.S. GAAP Basis ($ in millions, unless otherwise noted)
Q2'25
Q2'26
(Decrease)
Revenue
$ 127.4
$ 185.1
45.3 %
Operating income
16.2
32.4
100.0 %
Pre-tax income attributable to controlling interests
14.6
36.7
151.4 %
Net income attributable to controlling interests
10.1
27.3
170.3 %
Diluted shares outstanding
35.9
35.7
Diluted earnings per share, $
$ 0.28
$ 0.76
171.4 %
U.S. GAAP operating margin
12.7 %
17.5 %
479 bps
Economic Net Income Basis
(Non-GAAP measure used by management)
ENI revenue
$ 124.9
$ 183.2
46.7 %
ENI operating earnings
38.4
73.9
92.4 %
Pre-tax economic net income
31.4
63.3
101.6 %
Economic net income
22.9
47.5
107.4 %
ENI diluted earnings per share, $
$ 0.64
$ 1.33
107.8 %
Adjusted EBITDA
39.1
69.9
78.8 %
ENI operating margin
30.7 %
40.3 %
959 bps
Please see Definitions and Additional Notes
Please see Supplemental Information, Reconciliations and Disclosures
ENI Revenue: Growth Driven by Recurring Management Fees
ENI Revenue ($ in millions) Financial Highlights
$183.2
47%
158%
$124.9
$2.6
44%
$122.3
$176.5
$6.7
Total ENI revenue of $183.2 million increased 47% from Q2'25, primarily due to recurring management fee growth and an increase in performance fees
Q2'26 management fees increased 44% from Q2'25 reflecting a 66% increase in average AUM driven by market appreciation and continued positive NCCFs
Q2'25 Q2'26
Management fees Performance feesNotes: ENI revenue includes management fees and performance fees; Please see Definitions and Additional Notes Please see Supplemental Information, Reconciliations and Disclosures
ENI Expenses and Variable Compensation: Margin Expansion
ENI Operating Expenses and Variable Compensation ($ millions)
26%
$44.4
$109.3
39%
$54.6
$64.9
$86.5
$31.9
19%
Q2'25 Q2'26
Variable Compensation Operating Expenses% Operating Margin | 30.7% | 40.3% |
% OpEx Ratio (1) | 44.6% | 36.8% |
% VC Ratio (2) | 45.4% | 37.5% |
Financial Highlights
Q2'26 ENI Operating Expenses increased 19%, primarily driven by higher G&A expenses, including continued investment in technology and infrastructure, as well as AUM-driven servicing costs, increased sales-based compensation, and higher fixed compensation and benefits
Q2'26 ENI Operating Margin expanded 959 bps y/y to 40.3% mainly driven by increased ENI management fees
Q2'26 Operating Expenses (OpEx) Ratio(1) fell 8%pts y/y to 36.8% reflecting improved operating leverage
Q2'26 Variable Compensation (VC) increased 39% y/y primarily driven by higher profit before variable compensation
Q2'26 VC Ratio(2) decreased 785 bps y/y to 37.5% from 45.4% in Q2'25
Assuming revenue mix and levels similar to Q2'26, contractual allocations would imply a full year 2026 VC Ratio of
38%-42%
Notes: ENI operating expenses reflect the Company's operating expenses (excluding variable compensation); Variable compensation is primarily comprised of a contractual percentage of ENI earnings before variable compensation and a contractual split of performance fees, which is awarded to employees and recognized over a contractual vesting period; Variable compensation also includes non-cash compensation in the form of Acadian LLC equity provided through recycling and AAMI equity; (1) Operating Expense (OpEx) Ratio reflects total ENI operating expenses as a percent of management fees and is subject to fluctuations as AUM and ENI management fees change; (2) Variable Compensation (VC) Ratio is calculated as variable compensation divided by ENI earnings before variable compensation.
Capital Resources: Strong Balance Sheet
Balance Sheet Profile ($ in millions)
June 30, 2026
Cash
Seed InvestmentsTerm loan
Revolver
Cash and cash-equivalents of $64.6 million, and $109.8 million of seed investments
Debt reflects $200.0 million balance on term loan credit facility and no outstanding balance on the revolving credit facility as of June 30, 2026
- Strong cash flow generation supported repayment of seasonal revolver borrowings during the second quarter
Leverage ratio(1) of 0.8x and net leverage ratio(2) of 0.5x
$64.6
$109.8
$200.0
$101.2
$97.2
$200.0
December 31, 2025 June 30, 2026
Leverage ratio(1)
Net leverage ratio(2)
1.0x
0.5x
0.8x
0.5x
Please see Definitions and Additional Notes
Represents the Company's total debt, divided by last twelve months Adjusted EBITDA
Represents the Company's total debt, net of total cash and cash equivalents, divided by last twelve months Adjusted EBITDA
Capital Management: Shareholder Returns
Quarterly Diluted Shares Outstanding (in millions)
Financial Highlights
Q4'19 Q2'26
$1.5 billion in excess capital returned to stockholders since the end of 2019 through share buybacks and dividends
(58)%
35.7
86.0
Repurchased 0.2 million shares of common stock during the second quarter of 2026, at a volume-weighted average price of $69.92 per share, for an aggregate total of $10.6 million
Board declared a quarterly interim dividend of $0.10 per share to be paid on September 25, 2026 to shareholders of record as of the close of business on September 11, 2026
Expect to continue generating strong free cash flow, prioritizing organic growth and balance sheet flexibility, and then returning excess capital through dividends and share repurchases
Closing: Acadian Compelling Investment Opportunity
Competitive Position
Business Momentum
Q2'26 Financial Results
Capital Management
Only pure-play, publicly traded systematic manager
40-year track record with competitive edge in systematic investing
Strong performance track record with more than 96% of strategies by revenue outperforming benchmarks over 3- / 5- / 10- year periods(1)
Ten consecutive quarters of positive net flows, with $4.3 billion in Q2'26 (9% annualized organic growth rate)
AUM of $232.7 billion, up 54% from Q2'25
Record quarterly management fees of $176.5 million, up 44% from Q2'25
ENI EPS of $1.33, up 108% from Q2'25
ENI Operating Margin expanded 959 bps to 40.3%, up from 30.7% in Q2'25
Strong balance sheet with conservative leverage ratios
Seasonal revolver borrowings repaid during Q2'26
Strong free cash flow positions us to continue to invest in organic growth and return excess capital to shareholders
Positioned to continue to drive growth through targeted distribution initiatives and new product offerings
Data as of June 30, 2026. Past performance is no guarantee of future results. This is not investment advice and may not be construed as sales or 12
marketing material for any financial product or service sponsored or provided by Acadian.
Supplemental Information, Reconciliations and Disclosures
U.S. GAAP Statement of Operations
Q2'26 vs. Q2'25
($ in millions, unless otherwise noted) | Q2'25 | Q2'26 | Q1'26 |
Management fees | $ 122.3 | $ 176.5 | $ 159.3 |
Performance fees | 2.6 | 6.7 | 5.7 |
Consolidated Funds' revenue | 2.5 | 1.9 | 2.0 |
Total revenue | 127.4 | 185.1 | 167.0 |
Compensation and benefits | 83.8 | 121.2 | 96.0 |
General and administrative | 21.8 | 27.0 | 24.9 |
Depreciation and amortization | 4.2 | 3.7 | 3.6 |
Consolidated Funds' expense | 1.4 | 0.8 | 0.6 |
Total operating expenses Operating income | 111.2 | 152.7 | 125.1 |
16.2 | 32.4 | 41.9 | |
Investment income (loss) | (0.2) | 2.0 | 0.1 |
Interest income | 0.8 | 0.8 | 0.9 |
Interest expense | (5.3) | (3.6) | (3.4) |
Net consolidated Funds' investment gains (losses) | 12.1 | 7.2 | (1.9) |
Income before income taxes | 23.6 | 38.8 | 37.6 |
Income tax expense | 4.5 | 9.4 | 13.2 |
Net income | 19.1 | 29.4 | 24.4 |
Net income attributable to non-controlling interests | 9.0 | 2.1 | 0.1 |
Net income attributable to controlling interests | $ 10.1 | $ 27.3 | $ 24.3 |
Earnings per share, basic, $ | $ 0.28 | $ 0.77 | $ 0.68 |
Earnings per share, diluted, $ | $ 0.28 | $ 0.76 | $ 0.68 |
Average basic shares outstanding (in millions) | 35.9 | 35.6 | 35.7 |
Average diluted shares outstanding (in millions) | 35.9 | 35.7 | 35.8 |
U.S. GAAP operating margin | 13 % | 18 % | 25 % |
Pre-tax income attributable to controlling interests | $ 14.6 | $ 36.7 | $ 37.5 |
Net income attributable to controlling interests | $ 10.1 | $ 27.3 | $ 24.3 |
Total revenue increased 45.3% from Q2'25 driven by higher management fees reflecting an increase in average AUM in Q2'26 compared to Q2'25
Operating expenses increased 37.3% from Q2'25 driven by an increase in compensation and benefits expense primarily due to an increase in the value of the equity plan liability and an increase in variable compensation in Q2'26 compared to Q2'25
Income tax expense increased 108.9% from Q2'25 primarily as a result of an increase in pre-tax income attributable to controlling interests
U.S. GAAP net income attributable to controlling interests increased 170.3% from Q2'25 primarily due to the increase in management fee revenue
Diluted earnings per share increased 171.4% from Q2'25 due to higher net income attributable to controlling interests in Q2'26 and lower diluted shares outstanding
Please see Definitions and Additional Notes
ENI Operating Expenses and ENI Variable Compensation
ENI Operating Expenses
($ in millions) Q2'25 Q2'26 Q1'26
$M % of MFs(1) $M % of MFs(1) $M % of MFs(1)
Fixed compensation and benefits G&A expenses (excl. sales-based compensation) Depreciation and amortization | $ 25.0 21.9 4.2 | 20.4 % 17.9 % 3.4 % | $ | 27.5 26.8 3.7 | 15.6 % 15.2 % 2.1 % | $ | 26.6 24.9 3.6 | 16.7 % 15.6 % 2.3 % |
Core operating expense subtotal | $ 51.1 | 41.8 % $ | 58.0 | 32.9 % $ | 55.1 | 34.6 % | ||
Sales-based compensation | 3.5 | 2.9 % | 6.9 3.9 % | 6.1 | 3.8 % | |||
Total ENI operating expenses | $ 54.6 | 44.6 % $ | 64.9 | 36.8 % $ | 61.2 | 38.4 % | ||
Note: ENI management fees | $ 122.3 | $ 176.5 | $ 159.3 | |||||
ENI Operating Margin | 30.7 % | 40.3 % | 38.1 % | |||||
ENI Variable Compensation | ||||||||
($ in millions) Q2'25 Q2'26 Q1'26
Cash variable compensation | $ 30.5 | $ 41.9 | $ 38.6 |
Add: Non-cash equity-based award amortization | 1.4 | 2.5 | 2.3 |
Variable compensation | 31.9 | 44.4 | 40.9 |
Earnings before variable compensation | $ 70.3 | $ 118.3 | $ 103.8 |
Variable Compensation Ratio (VC as % of earnings before variable comp.) | 45.4 % | 37.5 % | 39.4 % |
Reconciliation of U.S. GAAP Operating Income to ENI Operating Earnings | |||
($ in millions) | Q2'25 | Q2'26 | Q1'26 | |||
U.S. GAAP operating income Exclude the impact of: Acadian LLC key employee-owned equity and profit interest revaluations | $ | 16.2 19.7 | $ | 32.4 33.3 | $ | 41.9 16.1 |
Restructuring costs | (0.4) | 0.2 | - | |||
Acadian LLC key employee distributions | 4.0 | 9.1 | 6.3 | |||
Variable compensation | 31.9 | 44.4 | 40.9 | |||
Consolidated Funds' operating income | (1.1) | (1.1) | (1.4) | |||
ENI earnings before variable compensation | 70.3 | 118.3 | 103.8 | |||
Less: ENI variable compensation | (31.9) | (44.4) | (40.9) | |||
ENI operating earnings $ 38.4 $ 73.9 $ 62.9 | ||||||
Please see Definitions and Additional Notes
(1) Represents reported ENI management fee revenue.
Acadian LLC Key Employee Distributions
Commentary
Represent the share of Acadian LLC profits after variable compensation that is attributable to key employee equity and profit interests holders, according to their ownership interests
Distribution Ratio increased year-over-year to 12.3% in Q2'26 due to growth in management fee profit above contractual thresholds
Given current levels of profits after variable compensation, contractual allocations would imply a 2026 full-year Distribution Ratio of 12%-14%
Acadian LLC Key Employee Distributions
A
($ in millions) Q2'25 Q2'26
Increase
(Decrease) Q1'26
Increase (Decrease)
Earnings after variable compensation (ENI operating earnings) | $ 38.4 | $ 73.9 | 92% | $ 62.9 | 17% |
B Less: Acadian LLC key employee distributions | (4.0) | (9.1) | 128% | (6.3) | 44% |
Earnings after Acadian LLC key employee distributions | $ 34.4 | $ 64.8 | 88% | $ 56.6 | 14% |
Acadian LLC Key Employee Distribution Ratio ( B / A ) | 10.4 % | 12.3 % | 190 bps | 10.0 % | 230 bps |
Please see Definitions and Additional Notes
Balance Sheet
($ in millions) December 31, 2025 June 30, 2026
$ 101.2 | $ 64.6 |
178.5 | 213.6 |
47.6 | 44.4 |
51.2 | 47.4 |
160.0 | 186.9 |
138.5 | 300.0 |
$ 677.0 | $ 856.9 |
$ 167.5 | $ 128.5 |
200.0 | 200.0 |
- | - |
61.4 | 57.5 |
133.0 | 181.0 |
31.1 | 156.7 |
$ 593.0 | $ 723.7 |
60.6 | 92.0 |
23.4 | 41.2 |
84.0 | 133.2 |
$ 677.0 | $ 856.9 |
35.8 1.0 x 0.5 x | 35.7 0.8 x 0.5 x |
Assets
Cash and cash equivalents Investment advisory fees receivable Right of use assets
Investments Other assets
Assets of consolidated Funds
Total assets
Liabilities and shareholders' equity Accounts payable and accrued expenses Third party borrowings
Revolving credit facility Operating lease liabilities Other liabilities
Liabilities of consolidated Funds
Total liabilities
Shareholders' equity
Redeemable NCI of consolidated Funds
Total equity
Total liabilities and equity
Weighted average quarterly diluted shares
Leverage ratio(1) Net leverage ratio(2)
Please see Definitions and Additional Notes
Represents the Company's third party borrowings and revolving credit facility, divided by last twelve months Adjusted EBITDA.
Represents the Company's third party borrowings and revolving credit facility, net of total cash and cash equivalents, divided by last twelve months Adjusted EBITDA.
Assets Under Management Rollforward
($ in billions, unless otherwise noted) | Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 |
Beginning balance Gross inflows Gross outflows Reinvested income and distributions Net flows Market appreciation / (depreciation) Ending balance | $ 121.9 18.7 (5.7) 0.8 | $ 151.1 11.9 (6.5) 1.0 | $ 166.4 15.6 (11.2) 1.0 | $ 177.5 29.6 (9.3) 1.1 | $ 195.7 14.5 (11.5) 1.3 |
13.8 15.4 | 6.4 8.9 | 5.4 5.7 | 21.4 (3.2) | 4.3 32.7 | |
$ 151.1 | $ 166.4 | $ 177.5 | $ 195.7 | $ 232.7 | |
Average AUM ENI management fee rate (bps) | $ 132.4 37 | $ 156.5 35 | $ 169.1 34 | $ 189.5 34 | $ 219.6 32 |
Assets Under Management by Strategy & Client Location
AUM by Strategy
$ 71.6 30.8 % | $ 57.8 | 29.5 % |
47.3 20.3 % | 39.7 | 20.3 % |
35.4 15.2 % | 32.2 | 16.5 % |
31.7 13.6 % | 25.5 | 13.0 % |
29.5 12.7 % | 23.7 | 12.1 % |
17.2 7.4 % | 16.8 | 8.6 % |
$ 232.7 | $ 195.7 | |
($ in billions) Q2'26 Q1'26
Enhanced Equity Non-U.S. Equity Small Cap Equity
Emerging Markets Equity Global Equity
Other
Total AUM
AUM by Client Location
$ 117.3 50.4 % | $ 99.3 | 50.7 % |
63.3 27.2 % | 55.1 | 28.2 % |
41.0 17.6 % | 31.7 | 16.2 % |
11.1 4.8 % | 9.6 | 4.9 % |
$ 232.7 | $ 195.7 | |
($ in billions) Q2'26 Q1'26
U.S. EMEA
Asia Pacific Other
Total AUM
Key Performance Metrics
Increase
Increase
Outstanding Performance Metrics
U.S. GAAP Basis ($ in millions, unless otherwise noted) | Q2'25 | Q2'26 | (Decrease) | Q1'26 | (Decrease) |
Revenue | $ 127.4 | $ 185.1 | 45.3 % | $ 167.0 | 10.8 % |
Operating income | 16.2 | 32.4 | 100.0 % | 41.9 | (22.7)% |
Pre-tax income attributable to controlling interests | 14.6 | 36.7 | 151.4 % | 37.5 | (2.1)% |
Net income attributable to controlling interests | 10.1 | 27.3 | 170.3 % | 24.3 | 12.3 % |
Diluted shares outstanding | 35.9 | 35.7 | 35.8 | ||
Diluted earnings per share, $ | $ 0.28 | $ 0.76 | 171.4 % | $ 0.68 | 11.8 % |
U.S. GAAP operating margin | 12.7 % | 17.5 % | 479 bps | 25.1 % | (759) bps |
Economic Net Income Basis (Non-GAAP measure used by management) | |||||
ENI revenue | $ 124.9 | $ 183.2 | 46.7 % | $ 165.0 | 11.0 % |
ENI operating earnings | 38.4 | 73.9 | 92.4 % | 62.9 | 17.5 % |
Pre-tax economic net income | 31.4 | 63.3 | 101.6 % | 55.5 | 14.1 % |
Economic net income | 22.9 | 47.5 | 107.4 % | 37.6 | 26.3 % |
ENI diluted earnings per share, $ | $ 0.64 | $ 1.33 | 107.8 % | $ 1.05 | 26.7 % |
Adjusted EBITDA | 39.1 | 69.9 | 78.8 % | 61.8 | 13.1 % |
ENI operating margin | 30.7 % | 40.3 % | 959 bps | 38.1 % | 222 bps |
Please see Definitions and Additional Notes | |||||
Please see Supplemental Information, Reconciliations and Disclosures |