0001517302-26-000091
SEC filingRevenue grew 9% on higher average AUM, but net income fell 5% due to investment losses from market volatility.
Revenue for the first quarter of 2026 was $303.0 million, a 9.3% increase from $277.1 million in the same period last year. This growth was primarily driven by higher average assets under management (AUM), reflecting favorable market conditions. Over shorter time periods, changes in our business and financial results are largely driven by market conditions and fluctuations in our AUM that may not necessarily be the result of our long-term investment performance or the long-term demand for our strategies.
Net income decreased 5.1% to $58.0 million from $61.1 million, and diluted EPS fell 7.3% to $0.76 from $0.82. The decline was driven by non-operating investment losses, which swung to a loss from a gain in the prior year. Because the compensation expense impact of the investment market exposure is economically hedged, management believes it is useful to reflect the expected net income offset in the calculation of adjusted operating income, adjusted net income, and adjusted EBITDA.
While specific AUM figures were removed during the audit, the narrative context indicates that equity strategies experienced net outflows, while credit and alternatives saw net inflows, reflecting market volatility and strategy divergence. This dynamic underscores the importance of our diversified platform.
During the quarter, we acquired Grandview Property Partners, adding to our alternative capabilities. The acquisition was funded with available cash and supports our strategic focus on expanding into higher-growth segments.
Our outlook remains subject to market conditions and client flows. An increase or decrease in future tax rates will increase or decrease, respectively, the expected tax benefits APAM would realize and the amounts payable under the tax receivable agreements. Forward-looking statements involve risks and uncertainties, including those described in our filings.