Slides
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July 24, 2025 Seth P. Bernstein, President & Chief Executive Officer Tom Simeone, Chief Financial Officer Second Quarter 2025 Review
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2Q25 Earnings Review 2 Cautions Regarding Forward-Looking Statements Certain statements provided by management in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and separately-managed accounts, general economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions, and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed. We caution readers to carefully consider such factors. Further, these forward-looking statements speak only as of the date on which such statements are made; we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see “Risk Factors” and “Cautions Regarding Forward-Looking Statements” in AB’s Form 10-K for the year ended December 31, 2024 and subsequent forms 10-Q. Any or all of the forward-looking statements made in this presentation, Form 10-K, Forms 10-Q, other documents we file with or furnish to the SEC, and any other public statements we issue, may turn out to be wrong. It is important to remember that other factors besides those listed in “Risk Factors” and “Cautions Regarding Forward-Looking Statements,” and those listed below, could also adversely affect our revenues, financial condition, results of operations and business prospects. The Forward-Looking Statements Referred to in the Preceding Paragraph Include Statements Regarding: • The pipeline of new institutional mandates not yet funded: Before they are funded, institutional mandates do not represent legally binding commitments to fund and, accordingly, the possibility exists that not all mandates will be funded in the amounts and at the times currently anticipated, or that mandates ultimately will not be funded. • The achievement of our Private Markets AUM target: Our ability to achieve our private markets AUM target is subject to the current market environment and our understanding of potential client interest for the types of products managed by the Private Alternatives investment teams. • The realization of Public and Private Market performance fees: Our ability to realize future performance fees is subject to several general economic, political, and market factors; which could deviate from our current expectations.
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2Q25 Earnings Review 3 Markets, Scale and Robust Fee Rate Drive Long-Term Revenue and Earnings Growth • 2Q blended base fee rate of 38.7bps down -2% q/q & y/y, reflecting mix shift • 33% 1H25 adj. op margin, despite volatile markets and mix shift; 6-month avg. AUM in-line with 4Q24 avg. AUM Key Business Highlights Second Quarter 2025 Record Quarter-End AUM of $829bn AUM 17% in Private Wealth and 83% Asset Management • EQH GA assets account for nearly 10% of our $685 billion asset management business • $21.9 billion in pipeline AUM, reflecting strong client engagement across insurance and retirement 1 3 4 2 $4.8bn Active Outflows, Skewed in April, with Demand Rebounding in June and Pipeline Building • Active inflows driven +$1.5bn Alts/MAS and +$1.2bn Tax-Exempt with sentiment improving as macro stabilized • Outflows of $6bn in active equity & $1.5bn taxable FI; divergent taxable demand dynamics between retail & institutions Expanding Distribution Reach via Targeted Partnerships and Vehicle Flexibility • Added 4 new insurance GA relationships across 6 strategies YTD; >80 third-party insurance clients ~$48bn AUM • Extend TAM for our differentiated investment strategies; ~$54bn AUM in SMAs & ~$8bn AUM across 18 Active ETFs
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2Q25 Earnings Review 4 Permanent Capital Flywheel: Strengthening our Partnership with EQH Permanent Capital Seed New Strategies Extend into Adjacencies Scale Distribution Unlock Opportunity EQH’s long-duration capital matched to AB’s differentiated capabilities unlocks combined opportunity Expand private assets and grow EQH GA Scale insurance solutions via new partnerships Third-party retail wealth Bernstein private wealth 1 2 3 4 Growth Avenues for AB Private Markets AUM $90-$100 Billion by 2027E Source: AB 5 Defined contribution Target
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2Q25 Earnings Review 5 Key Financial Highlights Second Quarter 2025 2Q25 2Q24 1Q25 AUM and Flows (USD Billions, Except Fee Rate) End of Period AUM $829.1 $769.5 $784.5 Average AUM $799.5 $755.5 $797.5 Equitable ("EQH") AUM $137.8 $127.1 $132.1 Private Markets AUM* $77.1 $64.1 $75.3 Gross Sales $27.9 $31.9 $36.1 Net Flows ($6.7) $0.9 $2.4 Active Net Flows ($4.8) $1.3 $2.7 Annualized Effective Base Fee Rate 38.7bps 39.4bps 39.5bps GAAP Financials (USD Millions, Except EPU) Net Revenues $1,089 $1,028 $1,080 Operating Expenses $867 $829 $844 Operating Income $222 $199 $236 Operating Margin 20.7% 19.0% 21.8% ABH GAAP EPU 0.64 $0.99 $0.67 Adjusted Financials (USD Millions, Except EPU) Net Revenues $844 $826 $838 Operating Income $273 $254 $283 Compensation Ratio 48.5% 49.0% 48.5% Operating Margin 32.3% 30.8% 33.7% ABH Adjusted EPU $0.76 $0.71 $0.80 Capital Returns and Debt Metrics ABH Distributions Per Unit $0.76 $0.71 $0.80 ABH Distribution Ratio 100% 100% 100% Consolidated Debt/LTM EBITDA 0.4x 0.5x 0.4x ABH Weighted Avg. Units 110.5mln 115.0mln 110.6mln As of 6/30/2025. Source: AB. *Includes Fee-Paying AUM of $61.2 billion and $15.9 billion in fee-eligible AUM (“dry powder”). Fee-earning AUM includes those assets currently qualified to generate management fees. Fee-eligible AUM includes committed capital that is currently uncalled or recallable.
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2Q25 Earnings Review 6 Percentage of active fixed income and equity assets in institutional services that outperformed their benchmark gross of fees and percentage of active fixed income and equity assets in retail Advisor and I share class funds ranked in the top half of their Morningstar category. Where no Advisor class exists, A share class used. Performance for private client services included as available. Reflects ITM funds compared to Morningstar peer groups. As of June 30, 2025. Source: AB Percentage of Assets Outperforming at Quarter-End Fixed Income Equities One-Year Three-Year Five-Year 89 92 57 64 57 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 68 65 61 63 87 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 60 59 57 81 75 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 One-Year 68 55 45 23 24 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 65 47 35 52 48 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 64 67 65 45 57 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Three-Year Five-Year
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2Q25 Earnings Review 7 Retail Highlights Macro Turbulence Halts Seven-Quarter Inflowing Streak USD Billions • After seven quarters of organic gains, Retail posted its first outflowing quarter as overseas demand steps back from turbulent macro • Continued market share gains in retail tax-exempt for 10 straight quarters, generating +$1.6bn inflows/ 14% AOG; +$0.3bn MAS inflows • Taxable FI reversed to outflows driven by APAC redemptions while US demand extended slight organic gains driven by ETFs Management Fees Trending In-Line With AUM Mix Shift USD millions • 2Q25 adjusted base management fees were up +6% y/y & down -2% q/q, compared to channel avg AUM levels up +8% y/y & down -1% q/q • Channel base fee rate of 43.2bps in 2Q25, down -2% sequentially reflective of a mix shift, lower daily avg. AUM for active equities • Organic base fee decay of -2.4% in 2Q25 and -0.9% LTM $23.2 $26.6 $26.4 $25.7 $19.4 ($20.4) ($21.2) ($25.3) ($24.8) ($24.2) $2.8 $5.4 $1.1 $0.9 ($4.8) 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Gross Sales Gross Redemptions Net Flows $338 $365 $376 $363 $357 $14 $0 $1 $1 $6 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Base Fees Performance Fees As of 6/30/2025. Source: AB
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2Q25 Earnings Review 8 Institutional Highlights Robust Channel Demand for Liquid & Private Credit USD Billions • Positive active net channel flows in 2Q, >$300mln, driven by taxable FI and alts; outflows concentrated in equities, ~60% passive • ~$1bn inflows in taxable FI driven by systematic IG/insurance • Healthy pace of deployments into private alts; ~$900mn net channel deployments across private placements, CRE debt, resi loans & CLOs Client Connectivity Drives Pipeline Growth • Channel base fee rate of 17.6 bps in 2Q, down -1% sequentially • ~$22bn pipeline AUM, highest since 3Q22, net of >$2bn fundings in 2Q25 mostly driven by Systematic IG Fixed Income and CRE debt • Nearly $9bn in pipeline additions driven by low-fee mandates, $5bn insurance FI and $3bn in customized retirement $3.3 $4.2 $2.0 $4.6 $3.7 ($5.1) ($8.6) ($8.2) ($3.9) ($5.2) ($1.8) ($4.4) ($6.2) $0.7 ($1.5) 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Gross Sales Gross Redemptions Net Flows $9.8 $10.1 $10.7 $13.5 $21.9 49bps 43bps 45bps 34bps 21bps 0 20 40 60 80 $0 $5 $10 $15 $20 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Pipeline AUM (EoP) Fee Rate (Bps)$ Billions As of 6/30/2025. Source: AB.
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2Q25 Earnings Review 9 Private Wealth Highlights Net New Asset Growth Despite Seasonal Flows Slowdown USD Billions • Net new client assets (“NNA”) include reinvested dividends & interest; LTM avg NNA growth ~400bps above LTM organic flows growth • Seasonally slower 2Q net flows reflect tax-related selling; client flows primarily driven by passive equities & alternatives • Private alts fundraising ~$0.6bn in 2Q, broad-based across franchises Diversified Revenue Streams, Uncaptured in Base Fee Rate USD millions • 2Q adj. base fees grew +5% y/y and declined -1% q/q; total revs were up +2% y/y and down -1% q/q • 2Q recurring performance fees, driven by private credit • Channel base fee rate of 77.7bps, down -2% q/q reflecting mix $5.4 $4.7 $5.2 $5.8 $4.8 ($5.5) ($4.6) ($4.9) ($5.0) ($5.2) ($0.1) $0.1 $0.3 $0.8 ($0.4) $1.1 $1.3 $1.9 $2.2 $0.9 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Gross Sales Gross Redemptions Net Flows NNA $257 $267 $274 $274 $270 $24 $23 $77 $18 $19$19 $15 $17 $15 $16 2Q:24 3Q:24 4Q:24 1Q:25 2Q:25 Base Fees Performance Fees Net Interest Margin As of 6/30/2025. Source: AB. Note: Net interest margin is defined as: dividends, interest and other minus the interest expense on client cash
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2Q25 Earnings Review 10 *Net of both sub-advisory and fees paid to distributors from investment management fees. †Private Market strategies eligible for performance fees include: AB-Private Credit Investors (“AB-PCI”), US and EU Commercial Real Estate Debt, and AB CarVal. Dollars rounded in millions, however percentages calculated using amounts rounded in thousands. As such, amounts may not foot. Select Adjusted Financials and Ratios Revenues 2Q25 2Q24 Percent ∆ 1Q25 Percent ∆ Base Fees* $772 $742 4% $782 (1)% Performance Fees: Private Markets† 22 25 (10)% 20 10% Public Markets 8 17 (53)% 19 (58)% Investment Gains (Losses) 8 4 104% (11) n.m. Dividend & Interest Revenue 31 41 (24)% 32 (2)% Other Revenues 19 19 — 14 30% Total Revenues 860 848 1% 856 1% Less: Broker-Dealer Related Interest Expense 16 22 (28)% 18 (11)% Adjusted Net Revenues $844 $826 2% $838 1% Expenses 2Q25 2Q24 Percent ∆ 1Q25 Percent ∆ Compensation and Fringes $409 404 1% $406 1% Other Employment Costs 10 9 2% 8 22% Total Compensation and Benefits 419 413 1% 414 1% Promotion and Servicing 34 33 4% 30 15% General and Administrative 118 126 (6)% 111 6% Total Adjusted Operating Expenses $571 $572 — $555 3% Adjusted Operating Income $273 $254 7% $283 (3)% Adjusted Operating Margin 32.3% 30.8% 150 bps 33.7% (140) bps AB Holding Adjusted Diluted Net Income Per Unit $0.76 $0.71 7% $0.80 (5)% Compensation Ratio 48.5% 49.0% 48.5%
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2Q25 Earnings Review 11 Base Fee Rate Relatively Stable Through Recent Cycle Firmwide Base Fee Rate—Last Five Years Basis points, net of distribution costs 38.7bps 38.7bps 36 38 40 42 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Long-Term Supportive Trends Idiosyncratic to AB: • Institutional deployments into alts • Organic growth in offshore equity MFs, offshore fixed income • Organic, NNA and market growth in private wealth risk assets Industry & Markets: • Market/AUM growth: equities, high-yield fixed income • Industry rotation from money markets/cash to risk assets Short-Term/ Mixed Trends • FX dynamics • Volatility Long-Term Detractors • Growth in low-fee products/ wrappers such as SMAs/ETFs • Increased revenue sharing and distribution fees • Secular pressures driven by competitive dynamics As of 6/30/2025 Source: AB 2021 2022 2023 2024 2025
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2Q25 Earnings Review 12 As of 6/30/2025. Source: AB *FY22 performance fees exclude $32 million from Commercial Real Estate Equity Large Portion of Recurring Performance-Related Fees, Driven by Privates Annual Performance Fees—Private and Public Markets USD Millions $39 $101 $136 $42 $40-50 $20 $25 $91 $27 $1-10 2022 2023 2024 1H:25 2H:25 Private Public $59 $126 $227 * • We now expect total FY25 performance fees of $110–$130 million, up from $90–105 million across private and public strategies • Our Private Markets platform, has accounted for ~2/3 of AB’s annual performance fees, on average, since FY22 • Private Markets platforms generating performance fees: ◦ Middle Market Lending, or “AB-PCI” ◦ AB CarVal ◦ Commercial Real Estate Debt • AB-PCI accounts for majority of performance fees—these are recurring, hurdle-based revenues that typically trade at a premium valuation over public alpha $69 FY25 total performance fees $110-$130 million
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2Q25 Earnings Review 13 On Track for 33% FY25 Margins Assuming Flat Markets Adjusted Operating Margin Path and FY25 Outlook +70bps 33% 33% Forecast FY25 Adjusted Margin As of 6/30/2025 Source: AB YTD Margin Expansion YTD Avg AUM $800.5bn 4Q24 Avg AUM $801.0bn Assumes average FY25 AUM levels equal to 4Q24
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2Q25 Earnings Review 14 Integrated asset and wealth manager with differentiated capabilities, partnerships and structure AB’s Unique Value Proposition Differentiated Distribution Platform, with Proprietary-Plus Private Wealth Channel 1 Diversified Investment Capabilities Spanning Traditional and Alternative Asset Classes 2 Growing Private Markets AUM, Supported by Equitable Strategic Partnership 3 Market-Neutral Margin Improvement Story Investor-Friendly Partnership Structure Advantageous competitive positions in growing markets: APAC, US HNW, Global Insurance Delivering investment excellence with innovative equity and credit solutions, across liquid and illiquid assets Targeting $90–$100 billion AUM by 2027; 20%+ of asset management revenues 350–500 bps of margin accretion from BRS deconsolidation, relocation and scaling by 2027E 100% distribution ratio of adjusted earnings via tax-advantaged structure 4 5 AB Differentiators
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2Q25 Earnings Review 1515 Appendix
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2Q25 Earnings Review 16 Retail Service Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Equity Large Cap Growth (4.4) 75 (1.5) 68 0.3 53 1.4 25 Concentrated Growth (7.1) 90 (10.4) 98 (3.3) 87 (2.6) 90 Small Cap Growth 1.4 33 0.5 42 (2.8) 80 1.2 24 Equity Income 1.4 35 4.5 8 1.8 21 1.1 21 Select US Equity 3.7 8 1.6 36 2.2 9 1.2 19 International Tech (3.0) 48 7.2 23 3.2 29 3.6 18 Low Vol (0.2) 54 0.7 45 1.5 34 2.2 20 Eurozone Equity 1.4 36 (2.6) 79 (1.1) 69 0.5 43 Relative Value (3.7) 88 0.1 48 0.6 42 0.7 31 Multi-Asset/Alternative Emerging Markets Multi-Asset 0.2 53 2.6 20 (0.2) 51 0.1 46 All Market Income 1.9 26 2.2 18 0.9 31 0.1 48 Select US Long/Short 2.2 43 (0.3) 45 (0.6) 47 1.0 30 1 Year 3 Year 5 Year 10 Year Past performance does not guarantee future results. Relative Performance is calculated against the Fund’s Morningstar Category and Percentile Ranking is determined by Morningstar Ranking Methodology. Advisor and I share class; A share class used when Advisor and I class not available. Morningstar Categories: Large Cap Growth - Large Growth; Concentrated Growth (US) - Large Growth; Small Cap Growth – Small Growth; Equity Income - US Large-Cap Value; Select US - Large-Cap Blend; International Tech - Sector Equity Technology; Low Vol - Global Large-Cap Blend; Eurozone Equity - Eurozone Large-Cap Equity; Relative Value - Large Value; Emerging Markets Multi-Asset - Global Emerging Markets; All Market Real Return – Tactical Allocation; Select US Long/Short - Long-Short Equity. As of June 30, 2025 Source: AB and Morningstar Retail Mutual Funds Relative Performance vs. Morningstar Averages ■ Top Quartile ■ 2nd Quartile
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2Q25 Earnings Review 17 Service Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Fixed Income American Income 1.1 28 0.5 37 (0.3) 58 0.3 37 European Income 0.8 28 1.5 26 0.1 48 1.0 19 Asia Income (0.5) 49 0.5 35 (0.1) 57 N/A -- Global High Yield (0.7) 57 0.7 34 0.5 33 0.2 49 Short Duration High Yield (1.5) 75 (0.4) 66 0.2 39 0.4 41 Emerging Markets Debt 1.3 28 1.3 30 0.7 33 0.7 30 High Income Advisor 0.7 26 1.2 10 0.9 20 0.2 41 Global Bond Advisor (0.5) 73 (0.4) 67 (0.1) 60 0.1 52 Income Advisor 0.7 22 0.3 36 0.1 36 0.2 35 Intermediate Diversified Muni (0.9) 91 0.2 36 0.0 49 0.5 9 High Income Muni 0.7 59 0.3 59 0.4 47 0.4 27 1 Year 3 Year 5 Year 10 Year Past performance does not guarantee future results. Relative Performance is calculated against the Fund’s Morningstar Category and Percentile Ranking is determined by Morningstar Ranking Methodology. Advisor and I share class; A share class used when Advisor and I class not available. Morningstar Categories: American Income – USD Flexible Bond; European Income - EUR Flexible Bond; Asia Income - Asia Bond; Global High Yield - Global High Yield Bond; Short Duration High Yield - Global High Yield Bond; Emerging Markets Debt - Global Emerging Markets Bond; High Income - High Yield Bond; Global Bond - World Bond; Income Advisor - Intermediate Core-Plus Bond; Intermediate Diversified Muni - Muni National Short; High Income Municipal - High Yield Muni. As of June 30, 2025 Source: AB and Morningstar Retail Mutual Funds Relative Performance vs. Morningstar Averages ■ Top Quartile ■ 2nd Quartile
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2Q25 Earnings Review 18 Service 1 Year 3 Year 5 Year 10 Year Equity US Small Cap Growth 0.5 (0.2) (1.4) 3.3 Global Core (0.2) (1.7) (1.8) 0.1 International Strategic Core 6.8 1.7 0.6 2.2 Sustainable Global Thematic (8.4) (5.6) (3.8) 0.5 US Small Cap Value 0.1 (0.5) 0.7 0.6 Global Strategic Value 1.7 (1.3) 0.2 (3.3) International Strategic Value 10.8 2.4 2.9 (0.5) Fixed Income Global Income (Hedged to JPY) 1.6 1.7 1.6 Global Plus (Hedged to USD) 0.1 0.4 0.6 0.4 Emerging Market Debt 2.0 1.5 0.9 0.5 US High Yield (0.1) 0.2 0.7 0.3 US Strategic Core Plus 1.5 1.2 1.0 0.8 US Investment Grade Corporate 0.5 0.9 0.8 0.7 Intermediate Muni 0.1 0.6 0.7 0.7 Past performance does not guarantee future results. Investment Performance of composites is presented before investment management fees. Periods of more than one year are annualized. US Small Cap Growth - Russell 2000 Growth Index GDR; Concentrated Global Growth - MSCI World Index NDR; Global Core - MSCI ACWI NDR; International Strategic Core - MSCI EAFE Index NDR; Sustainable Global Thematic - MSCI ACWI NDR; US Small Cap Value - Russell 2000 Value Index GDR; Global Strategic Value - MSCI ACWI NDR; International Strategic Value - MSCI EAFE Index NDR; Global Income - Bloomberg Barclays US Aggregate Index Hedged to JPY; Global Plus - Bloomberg Barclay Global Aggregate Index Hedged to USD; EM Debt - JPM EMBI Global; Global High Income - Bloomberg Barclays Global HY Index Hedged; US HY - Bloomberg Barclays US Corporate HY Index; US Strategic Core Plus - Bloomberg Barclays US Aggregate Index; US Investment Grade Corporate - Bloomberg Barclays US Credit Index; Intermediate Muni - Lipper Short/Int Blended Muni Fund Avg. Global Plus are hedged to USD. Performance is preliminary and as of June 30, 2025. Institutional Composite Relative Performance vs. Benchmarks N/A
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2Q25 Earnings Review 19 (US $ Billions) March 31, 2025June 30, 2025 Private Wealth RetailInstitutions Total Total Equity Actively Managed $50 $57 $166 $273 $249 Passive (1) 25 7 39 71 66 Total Equity 75 64 205 344 315 Fixed Income Taxable 121 20 73 214 212 Tax-Exempt 2 30 48 80 78 Passive (1) — — 10 10 10 Total Fixed Income 123 50 131 304 300 Alternatives/MAS (2) 142 30 9 181 170 Total $340 $144 $345 $829 $ 785 March 31, 2025 Total $324 $137 $324 $785 (1) Includes index and enhanced index services. (2) Includes certain multi-asset solutions and services not included in equity or fixed income services. Assets Under Management: 2Q25
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2Q25 Earnings Review 20 In US $ Billions Beginning Sales/New Redemptions/ Net Cash Net Investment Net End Investment Service: of Period Accounts Terminations Flows Flows Performance Change of Period Institutions US $162.9 $3.5 $(0.7) $— $2.8 $5.4 $8.2 $171.1 Global and Non-US 161.2 0.2 (3.0) (1.5) (4.3) 12.0 7.7 168.9 Total Institutions 324.1 3.7 (3.7) (1.5) (1.5) 17.4 15.9 340.0 Retail US 231.7 14.4 (14.4) (1.6) (1.6) 20.5 18.9 250.6 Global and Non-US 92.4 5.0 (7.4) (0.8) (3.2) 4.9 1.7 94.1 Total Retail 324.1 19.4 (21.8) (2.4) (4.8) 25.4 20.6 344.7 Private Wealth US 92.6 3.5 (3.6) 0.2 0.1 4.2 4.3 96.9 Global and Non-US 43.7 1.3 (1.6) (0.2) (0.5) 4.3 3.8 47.5 Total Private Wealth 136.3 4.8 (5.2) — (0.4) 8.5 8.1 144.4 Firmwide US 487.2 21.4 (18.7) (1.4) 1.3 30.1 31.4 518.6 Global and Non-US 297.3 6.5 (12.0) (2.5) (8.0) 21.2 13.2 310.5 Total Firmwide $784.5 $27.9 $(30.7) $(3.9) $(6.7) $51.3 $44.6 $829.1 Three Months Ended 6/30/25: AUM Roll-Forward by Distribution Channel
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2Q25 Earnings Review 21 In US $ Billions Beginning Sales/New Redemptions/ Net Cash Net Investment Net End Investment Service: of Period Accounts Terminations Flows Flows Performance Change of Period Equity Active US $173.3 $6.4 $(8.5) $(1.2) $(3.3) $22.0 $18.7 $192.0 Global and Non-US 75.7 2.0 (3.7) (1.0) (2.7) 8.4 5.7 81.4 Total Equity Active 249.0 8.4 (12.2) (2.2) (6.0) 30.4 24.4 273.4 Equity Passive(1) US 58.7 0.4 (0.1) (0.3) — 6.1 6.1 64.8 Global and Non-US 7.1 — (1.7) (0.2) (1.9) 0.8 (1.1) 6.0 Total Equity Passive(1) 65.8 0.4 (1.8) (0.5) (1.9) 6.9 5.0 70.8 Total Equity 314.8 8.8 (14.0) (2.7) (7.9) 37.3 29.4 344.2 Fixed Income - Taxable US 121.6 6.2 (5.0) 0.8 2.0 1.2 3.2 124.8 Global and Non-US 90.0 3.2 (5.6) (1.1) (3.5) 3.2 (0.3) 89.7 Total Fixed Income - Taxable 211.6 9.4 (10.6) (0.3) (1.5) 4.4 2.9 214.5 Fixed Income - Tax-Exempt US 78.4 5.9 (4.6) (0.1) 1.2 (0.1) 1.1 79.5 Global and Non-US — — — — — — — — Total Fixed Income - Tax-Exempt 78.4 5.9 (4.6) (0.1) 1.2 (0.1) 1.1 79.5 Fixed Income Passive(1) US 8.3 0.2 — (0.3) (0.1) 0.2 0.1 8.4 Global and Non-US 1.8 — — — — — — 1.8 Total Fixed Income Passive(1) 10.1 0.2 — (0.3) (0.1) 0.2 0.1 10.2 Total Fixed Income 300.1 15.5 (15.2) (0.7) (0.4) 4.5 4.1 304.2 Alternatives/MAS(2) US 46.9 2.3 (0.5) (0.3) 1.5 0.7 2.2 49.1 Global and Non-US 122.7 1.3 (1.0) (0.2) 0.1 8.8 8.9 131.6 Total Alternatives/MAS(2) 169.6 3.6 (1.5) (0.5) 1.6 9.5 11.1 180.7 Firmwide US 487.2 21.4 (18.7) (1.4) 1.3 30.1 31.4 518.6 Global and Non-US 297.3 6.5 (12.0) (2.5) (8.0) 21.2 13.2 310.5 Total Firmwide $784.5 $27.9 $(30.7) $(3.9) $(6.7) $51.3 $44.6 $829.1 (1) Includes index and enhanced index services. (2) Includes certain multi-asset solutions and services not included in equity or fixed income services. Three Months Ended 6/30/25: AUM Roll-Forward by Investment Service
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2Q25 Earnings Review 22 Actively Passively Managed Managed (1) Total Equity $(6.0) $(1.9) $(7.9) Fixed Income (0.3) (0.1) (0.4) Alternatives/MAS (2) 1.5 0.1 1.6 Total $(4.8) $(1.9) $(6.7) (1) Includes index and enhanced index services. (2) Includes certain multi-asset solutions and services not included in equity or fixed income services. Three Months Ended 6/30/25: Active vs. Passive Net Flows
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2Q25 Earnings Review 23 As of June 30, 2025 By Client Domicile Percentages may not add up to 100% due to rounding Institutional Geographic Breakdown Retail Geographic Breakdown Assets Under Management By Region US 77% EMEA 11% APAC ex Japan 6% Japan 3% Other 3% US 59% APAC ex Japan 17% Japan 13% EMEA 9% Other 2% $340.0B $344.7B
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2Q25 Earnings Review 24 Second Quarter 2025 GAAP Income Statement (1) Net of both sub-advisory and fees paid to distributors from investment management fees. Income Statement (in US $ Millions) 2Q25 2Q24 % ∆ 1Q25 % ∆ Base Fees $805 $774 4 % $818 (2) % Performance Fees 39 43 (11) % 37 4 % Distribution Revenues 198 173 15 % 199 — % Dividends & Interest 36 44 (18) % 34 5 % Investment (Losses) (8) (24) (67) % (20) (62) % Other Revenues 35 40 (13) % 30 12 % Total Revenues 1,105 1,050 5 % 1,098 1 % Less: Broker-Dealer Related Interest Expense 16 22 (28) % 18 (11) % Net Revenues $1,089 $1,028 6 % $1,080 1 % Compensation & Benefits Compensation & Fringes $430 $414 4 % $413 4 % Other Employment Costs 10 9 11 % 8 25 % Total Compensation & Benefits 440 423 4 % 421 5 % Promotion & Servicing 259 234 11 % 257 1 % General & Administrative 148 146 2 % 148 — % Other 20 26 (22) % 18 7 % Total Operating Expenses $867 $829 5 % $844 3 % Operating Income $222 $199 11 % $236 (6) % Operating Margin 20.7 % 19.0 % 170 bps 21.8 % (110)bps AB Holding GAAP Net Income Per Unit $0.64 $0.99 (35) % $0.67 (4) %
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2Q25 Earnings Review 25 In US $ Millions (except EPU) 2Q25 2Q24 % ∆ 1Q25 % ∆ Net Revenues $1,089 $1,028 6 % $1,080 1 % Operating Expenses 867 829 5 % 844 3 % Operating Income 222 199 11 % 236 (6) % Net Income Attributable to AB Unitholders 210 310 (32) % 221 (5) % AB Holding GAAP Net Income per Unit $0.64 $0.99 (35) % $0.67 (4) % AB Holding Distribution per Unit $0.76 $0.71 7 % $0.80 (5) % Dollars rounded in millions, however percentages calculated using amounts rounded in thousands. As such, amounts may not foot. Second Quarter 2025 GAAP Income Statement
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2Q25 Earnings Review 26 Please refer to pages 28-29 for additional information on the reconciliation of GAAP financial results to adjusted financial results. Dollars rounded in millions, however percentages calculated using amounts rounded in thousands. As such, amounts may not foot. Second Quarter 2025 AB Holding Financial Results In US $ Millions (excluding per Unit amounts) 2Q25 2Q24 % ∆ 1Q25 % ∆ AB Net Income Attributable to AllianceBernstein $210 $310 (32) % $221 (5) % Weighted Average Equity Ownership Interest 37.5 % 39.6 % 37.5 % AB Holding Equity in Net Income Attributable to AB 79 123 (36) % 83 (5) % Income Taxes 9 9 (7) % 9 (2) % Net Income $70 $114 (38) % $74 (5) % Diluted Net Income Per Unit, GAAP basis $0.64 $0.99 (35) % $0.67 (4) % Distributions Per Unit $0.76 $0.71 7 % $0.80 (5) % Adjusted Diluted Net Income Per Unit $0.76 $0.71 7 % $0.80 (5) %
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2Q25 Earnings Review 27 2Q25 2Q24 % ∆ 1Q25 % ∆ Ending AUM ($ Billions) $829 $770 8 % $785 6 % Average AUM ($ Billions) $800 $756 6 % $798 — % By Fee Type ($ Millions): Adjusted Base Fees $772 $742 4 % $782 (1) % Adjusted Performance Fees 30 42 (28) % 39 (23) % Total $802 $784 2 % $821 (2) % Adjusted Base Fees By Channel ($ Millions): Institutions $145 $147 (1) % $145 — % Retail 357 338 6 % 363 (2) % Private Wealth 270 257 5 % 274 (1) % Total $772 $742 4 % $782 (1) % Second Quarter 2025 Adjusted Advisory Fees (1) Net of both sub-advisory and fees paid to distributors from investment management fees.
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2Q25 Earnings Review 28 In US $ Thousands Distribution Pass Deferred Pension NCI/ Acquisition- Equity AB Funds Related Through Comp. Obligation Consol Related Method Reimburs Interest GAAP Payments Adjustments Inv. Settlement VIE Expenses Investment Expense Expense Non-GAAP (A) (B) (C) (D) (E) (G) (H) (I) (J) $ 843,978 $ (20,297) $ (13,659) $ (7,444) $ (180) $ 802,398 — — 198,367 (198,367) — 36,137 (40) (4,737) 31,360 (7,825) (2,337) 7,261 10,579 7,678 33,912 (15,203) (49) 18,660 Total revenues 1,104,569 (218,664) (28,862) (9,821) — 2,295 - 10,579 860,096 Less: broker-dealer related interest expense 15,662 15,662 Net revenues 1,088,907 (218,664) (28,862) (9,821) — 2,295 - 10,579 844,434 439,554 (7,811) (12,134) (411) 419,198 259,490 (218,664) (6,653) 34,173 148,018 (14,398) — (272) (1,042) (14,296) 118,010 42 (42) — 8,463 (8,463) — 11,246 (11,148) 98 — (9) (9) Total expenses 866,813 (218,664) (28,862) (12,134) — (281) (12,643) (14,296) (8,463) 571,470 Operating income 222,094 — — 2,313 — 2,576 12,643 10,579 14,296 8,463 272,964 Interest on borrowings — 8,463 8,463 Income taxes 14,806 - - 154 — 172 843 706 961 17,642 Net income 207,288 - - 2,159 — 2,404 11,800 9,873 13,335 264,859 (3,179) 603 — 2,576 - $ 210,467 $ - $ - $ 1,556 $ — $ (172) $ 11,800 $ 9,873 $ 13,335 $ — $ 246,859 Dividend and interest income Adjustments Investment advisory and services fees Bernstein research services Distribution revenues Investment (losses) gains Other revenues Employee compensation and benefits Promotion and servicing General and administrative Net income (loss) of consolidated entities attributable to non-controlling interests Net income attributable to AB Unitholders Contingent payment arrangements Interest on borrowings Amortization of intangible assets Net income (loss) of consolidated entities attributable to non-controlling interests Second Quarter 2025 GAAP to Non-GAAP Reconciliation Please refer to page 29 for notes describing the adjustments.
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2Q25 Earnings Review 29 AB Adjusted Financial Results Reconciliation Notes to Consolidated Statements of Income and Supplemental Information (Unaudited) A. We exclude all of the company’s distribution revenues, which are recorded as a separate line item on the consolidated statement of income, as well as a portion of investment advisory services fees received that is used to pay distribution and servicing costs. Such presentation appropriately reflects the nature of these costs as pass-through payments to third parties that perform functions on behalf of our sponsored mutual funds and/or shareholders of these funds. Also, we adjust distribution revenues for the amortization of deferred sales commissions as these costs, over time, will offset such revenues. B. We exclude additional pass-through expenses we incur (primarily through our transfer agency) that are reimbursed and recorded as fees in revenues. Also, we adjust for certain investment advisory and service fees passed through to our investment advisors. These fees have no impact on operating income, but they do have an impact on our operating margin. As such, we exclude these fees from adjusted net revenues. C. We exclude the impact on net revenues and compensation expense of the mark-to-market gains and losses (as well as the dividends and interest) associated with employee long- term incentive compensation-related investments. In addition, we exclude any EQH-related equity compensation expense as the awards are non-cash and are based on EQH’s and not AB’s financial performance. Also, we adjust for certain acquisition related pass through performance-based fees and performance related compensation. D. The losses associated with the termination of our defined benefit retirement plan are non-cash, short term in nature and not considered a part of our core operating results when comparing financial results from period to period. E. We adjust for the impact of consolidating certain company-sponsored investment funds by eliminating the consolidated company-sponsored investment funds revenues and expenses and including AB’s revenues and expenses that were eliminated in consolidation. In addition, the net income of joint ventures attributable to non-controlling interests is excluded because it does not reflect the economic interest attributable to AB. F. Real estate credits are excluded because they are not considered part of our core ongoing operations. However, beginning in the fourth quarter of 2019, real estate charges (credits) while excluded in the period in which the charges (credits) are recorded, are included ratably over the remaining applicable lease term. G. Acquisition-related expenses have been excluded because they are not considered part of our core operating results when comparing financial results from period to period and to industry peers. Acquisition-related expenses include professional fees and the recording of changes in estimates to contingent payment arrangements associated with our acquisitions. Beginning in the first quarter of 2022, acquisition-related expenses also include certain compensation-related expenses, amortization of intangible assets for contracts acquired and accretion expense with respect to contingent payment arrangements. H. We adjust net revenues to exclude our portion of the equity income or loss associated with our equity method investments, including our investment in the JVs and reinsurance sidecar as we don't consider this activity part of our core business operations. Effective April 1, 2024, following the close of the transaction with SocGen, we record all income or loss associated with the JVs as an equity method investment income (loss). As we no longer consider this activity part of our core business operations and our intent is to fully divest from both joint ventures, we consider these amounts temporary and as such, we exclude these amounts from our adjusted operating income. I. Fund reimbursement: During the first quarter of 2025, we identified an error in the billing practices of a third-party service provider, who had over billed certain AB mutual funds for omnibus account services, sub-accounting services, and related transfer agency expenses in prior years. The matter remains in dispute with the service provider. In the second quarter, at the request of the mutual fund Board, AB agreed to reimburse the affected funds for the entirety of the overpayment plus interest. We have adjusted operating income to exclude these reimbursements. We believe adjusting for these costs is useful for our investors and other users of our financial statements because such presentation appropriately reflects the non-core nature of this expenditure. J. Interest on borrowings has been excluded from operating income in order to align with our industry peers. Adjusted Operating Margin Adjusted operating margin allows us to monitor our financial performance and efficiency from period to period without the volatility and to compare our performance to industry peers on a basis that better reflects our performance in our core business. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenues. For illustrative purposes only; The information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AllianceBernstein or its affiliates.
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