BrightSphere Investment Group Inc.

For Q2 2026, Acadian reported total ENI revenue of $183 million, up 47% from Q2 2025, and management fees of $177 million, up 44% year over year. ENI was up 107% to $47.5 million, ENI diluted EPS was $1.33, up 108%, and adjusted EBITDA was up 79%; U.S. GAAP net income attributable to controlling interests was up 170% and EPS was up 171%, though no absolute GAAP EPS figure was stated. ENI operating margin expanded to 40.3% from 30.7%, and average AUM was $220 billion in the quarter, with ending AUM at $232.7 billion, up 54% from Q2 2025. Net client flows were positive $4.3 billion, representing 9% annualized organic growth. For capital and allocation, cash was $65 million, seed investments were $110 million, term loan debt was $200 million, gross debt to adjusted EBITDA was 0.8x, net debt to adjusted EBITDA was 0.5x, and the company repurchased 0.2 million shares for $10.6 million. Management said variable compensation implied by contractual allocations would be about 38%-42% for full-year 2026, and the board declared a $0.10 per share interim dividend payable September 25, 2026. No explicit next-quarter revenue or EPS guidance was given.

Kelly Young emphasized record-scale momentum, calling Q2 results exceptional and pointing to the firm’s 40-year history, strong investment performance, and disciplined execution as the basis for continued growth. She highlighted leadership continuity with Alex Voitenok becoming Co-CIO in 2027, the addition of talent from TC43, and Acadian’s rise in the P&I money manager rankings as evidence of scale and platform strength. Her tone was confident and upbeat, with repeated references to a very healthy pipeline, broad global demand, and 10 consecutive quarters of positive net flows.

Scott Hynes focused on the step-up in recurring revenue and improved operating leverage. He said ENI revenue of $183 million was up 47%, management fees rose 44% on a 66% increase in average AUM, and operating margin expanded to 40.3% while the operating expense ratio fell to 36.8%; variable compensation increased 39% but the ratio declined to 37.5%. On balance sheet and capital allocation, he cited $65 million of cash, $110 million of seed investments, $200 million of term loan debt, no revolver balance, and leverage of 0.8x gross debt to adjusted EBITDA and 0.5x net debt to adjusted EBITDA, noting seasonal revolver borrowings were repaid early and that excess capital will continue to be returned via dividends and buybacks.

Analysts pressed on the institutional pipeline, private wealth, cross-selling, fixed income traction, and the fee-rate trend. Management said the pipeline is healthy across strategies and geographies, with especially strong demand for Enhanced Equity and increasing momentum in Extension strategies, plus growing interest in tax-aware products in wealth and in systematic credit as U.S. High Yield approaches its three-year track record later this year. On the fee rate, Scott Hynes said the decline was mainly driven by the full-ramp effect of a large Enhanced mandate from the prior quarter and that the blended fee rate should be relatively stable going forward rather than continuing a step-down.