Fiera Capital Corporation

Total revenues were CAD 155.1 million in Q2 2026, up 1% sequentially and down 5% year over year. Adjusted EBITDA was CAD 42 million, down 2% from CAD 42.7 million in the prior quarter, and adjusted EBITDA margin was 27.1% versus 27.9% sequentially; year-to-date margin stayed at 27%. Adjusted net earnings were CAD 23.9 million, or CAD 0.21 per diluted share, both roughly flat sequentially and down from the same quarter last year. SG&A excluding share-based compensation was CAD 113.1 million, down 3.6% year over year. AUM ended at CAD 163.5 billion, with Public Markets AUM at CAD 141.2 billion and Private Markets AUM up 0.5% in the quarter. On cash and capital allocation, last-12-month free cash flow was CAD 93 million, net debt was CAD 723 million, and the net debt ratio was 3.8x. The board approved a quarterly dividend of CAD 0.108 per share, and the company renewed its NCIB to buy up to CAD 4 million shares over the next 12 months. Forward-looking commentary: management expects direct transfer outflows to PineStone in 2026 to be lower than prior year, expects net debt to decline in the second half of the year, and flagged an expected roughly CAD 500 million equity mandate outflow in Q3 plus a remaining CAD 1.5 billion sub-advised transfer request in the second half of the year.

Maxime Ménard said the quarter was difficult on flows but emphasized progress on the firm’s strategic priorities, especially in Private Markets, distribution, and investment performance. He highlighted stronger traction with financial intermediaries, improving performance in flagship strategies, and continued momentum in insurance-linked private credit and EMEA fixed income. He also framed the Canadian equity leadership change as part of protecting the integrity of the investment platform and reinforcing standards of conduct.

Lucas Pontillo said revenues were pressured mainly by lower base management fees from Public Markets and lower share of earnings from joint ventures, but that cost control offset some of the revenue headwinds. He noted SG&A excluding share-based compensation fell 3.6% year over year and 5.5% year to date, helping keep adjusted EBITDA margin stable at 27% year to date. On balance sheet and capital returns, he cited last-12-month free cash flow of CAD 93 million, net debt of CAD 723 million, a 3.8x net debt ratio, repurchases of 134,000 shares in the quarter, and a quarterly dividend of CAD 0.108 per share.

Analysts focused on three areas: the biggest change in how Fiera assesses distribution and performance, the outlook for Private Markets versus broader industry fundraising, and leverage/covenant flexibility. Management said distribution has become more region-specific and channel-specific, with Canada running at full throttle while the U.S. and EMEA require more targeted, nimble execution; they also said Private Markets demand is strongest in real assets and private credit, while private equity looks less robust. On leverage, Lucas said 3.5x is the key covenant reference point for both interest coverage floor and funded debt ceiling, and he said the company is comfortable given improving interest expense and the expected second-half cash cycle.