AllianceBernstein Holding L.P. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net revenues were $1.23 billion, an 8% increase year-over-year (YoY) from $1.14 billion in 3Q 2025, driven by higher performance-based fees and investment advisory base fees, partially offset by lower distribution revenues, investment losses, and net dividend/interest income.
• Adjusted net revenues were $904 million, a 2% increase YoY from $885 million in 3Q 2025.
• GAAP operating income was $250 million, a 12% decrease YoY from $283 million in 3Q 2025; GAAP operating margin was 21.9%, down 240 basis points from 24.3% in 3Q 2025.
• Adjusted operating income was $303 million, flat YoY from $302 million in 3Q 2025; adjusted operating margin was 33.5%, down 70 basis points from 34.2% in 3Q 2025.
• GAAP net income per Unit was $0.79, unchanged from $0.79 in 3Q 2025.
• Adjusted net income per Unit was $0.88, a 2.3% increase YoY from $0.86 in 3Q 2025.
• Cash distribution per Unit was $0.88, a 2.3% increase YoY from $0.86 in 3Q 2025.
• GAAP operating expenses were $976 million, a 14% increase YoY from $854 million, primarily due to higher employee compensation and benefits and general and administrative expenses.
• Adjusted operating expenses were $601 million, a 3% increase YoY from $582 million.

Guidance and Future Outlook:

• Management stated the firm is well-positioned to deliver durable organic growth and long-term value for clients and unitholders.
• Private markets AUM reached $105 billion, up 33% YoY, surpassing the upper end of the 2027 target range.
• The firm expects to continue executing across key growth vectors: insurance, private markets, SMAs, and ETFs.
• Management highlighted an accelerated pace of deployments as operating efficiency shortens the time from commitment to funding.

Business Segments and Product Lines:

• Firmwide net inflows were $6.6 billion in 3Q 2026, the strongest quarterly flow result in 4 years, representing an annualized organic growth rate of approximately 3%.
• Alternatives/MAS generated $15 billion of net inflows, including the onboarding of roughly $12 billion of commercial mortgage loans, marking the seventh consecutive quarter of organic growth for the asset class.
• Institutional channel generated nearly $16 billion of net inflows, driven by market share gains in private markets, taxable fixed income, and passive equity.
• Fixed income demand remained robust; tax-exempt fixed income drove $1.6 billion of net inflows, while taxable fixed income was modestly positive at $0.3 billion.
• Passive equity strategies attracted $2.5 billion of net inflows, while active equity outflows were roughly $13 billion.
• Retail channel recorded over $8 billion of net outflows, pressured by active equity redemptions and rate-sensitive withdrawals from taxable fixed income.
• Private Wealth channel recorded $0.7 billion of net outflows, though the channel grew net-new-assets at a 2% annualized rate.
• Headcount was 4,416 employees as of September 30, 2026.

Market and Competitive Landscape:

• Global equity and fixed income markets were mixed in 3Q 2026; S&P 500 returned 2.3%, MSCI EAFE returned 0.9%, while Bloomberg Barclays US Aggregate returned -3.5%.
• The firm achieved market share gains in private markets and tax-exempt fixed income despite a turbulent municipal market.
• Institutional pipeline AUM was approximately $13 billion at quarter-end.

Risks and Challenges:

• Active equity outflows of roughly $13 billion continued to weigh on flows.
• Retail channel faced continued pressure from active equity redemptions and rate-sensitive redemptions from taxable fixed income.
• Forward-looking statements are subject to risks including financial market performance, investment performance of sponsored products, general economic conditions, industry trends, future acquisitions, and government regulations.

Management Commentary and Tone:

• Seth Bernstein, CEO, described the $6.6 billion in net inflows as the strongest quarterly flow result in 4 years.
• Bernstein noted that institutional appetite for private assets remained the primary growth driver and that the alternatives/MAS franchise grew organically across all three channels.
• Management expressed confidence in the breadth of the platform and the ability to scale capabilities across private credit, private placements, and asset-based finance.
• The tone emphasized execution across growth vectors, deepening strategic partnerships, and maintaining expense discipline.

Other Key Points:

• Total Assets Under Management (AUM) were $900.4 billion as of September 30, 2026, up 5% YoY from $860.1 billion.
• AllianceBernstein Holding L.P. is required to distribute all Available Cash Flow to Unitholders.
• The cash distribution of $0.88 per Unit is payable on November 19, 2026, to holders of record on November 6, 2026.
• AB Holding repurchased 1.0 million units in the open market for $38.3 million during the quarter; total units purchased/retained were 1.1 million for $38.4 million.
• Over the nine months ended September 30, 2026, AB Holding repurchased 1.6 million units in the open market for $59.9 million.
• Equitable Holdings (EQH) owns an approximate 68.3% economic interest in AllianceBernstein, while AB Holding owns approximately 31.1%.
• 100% of AB Holding's distributions to foreign investors are attributable to income effectively connected with a U.S. trade or business, subject to a 37% federal income tax withholding rate.