AMG beats its adjusted profit plan as $12 billion leaves stock strategies
Alternative strategies attract enough client allocations to outweigh equity withdrawals. The results also pass the adjusted profit ranges AMG set out in July.
Clients withdrew nearly $12 billion from AMG's stock strategies in the third quarter. The investment-management group still earned more than it had forecast. Alternative strategies attracted far more in client allocations than the equity businesses lost.
Research by Ticker Byline shows that the September-quarter results exceeded both profit ranges management set out in July. Adjusted EBITDA reached $353.7 million, above the $315 million to $325 million range. Economic earnings per share were $9.50, compared with the projected $8.43 to $8.71.
Those are AMG's own adjusted measures. Adjusted EBITDA removes interest, taxes, depreciation, amortization and selected other items. Economic EPS also adjusts reported earnings for items including intangible amortization and certain affiliate transactions.
The money is going to different funds
AMG holds stakes in independent investment managers. Its alternatives businesses recorded $31.5 billion of net client flows during the quarter: $9.6 billion in private markets and $21.9 billion in liquid alternatives, which use strategies beyond conventional long-only investing in stocks and bonds. The private-market figure includes commitments to invest over time.
That more than offset $11.9 billion of net withdrawals from equity strategies. Multi-asset and fixed-income products added another $1.1 billion, taking net inflows across the group to $20.7 billion.
Assets under management rose to $973.9 billion from $942.4 billion at June 30. Client flows were the largest contributor to that increase; market gains added $13 billion.
Fewer shares amplify the earnings increase
Economic EPS grew 56% from a year earlier, faster than the roughly 38% increase in the adjusted profit behind that figure. AMG's adjusted average share count fell to 26.1 million from 29.4 million, spreading earnings across fewer shares.
The company spent $400 million buying back stock during the quarter. Repurchases reached $775 million for the first nine months, already above the approximately $600 million it had expected to spend for the full year when it spoke in July.
The July quarterly earnings forecast assumed an adjusted share count of 26.3 million and market levels as of July 29.
Why reported earnings fell
Reported diluted EPS moved in the other direction, falling to $6.64 from $6.87. The earlier quarter included $101.1 million of after-tax gains from affiliate transactions that did not recur. That makes the reported decline a different comparison from the rise in Economic earnings.
Cash was $436.1 million at September 30, down from $586 million at the end of 2025. The balance-sheet carrying value of debt rose to $3.18 billion from $2.69 billion as AMG invested in firms and returned capital.
The stronger alternative businesses give AMG a way to grow while traditional stock strategies keep losing client money. Sustaining that shift, alongside profit growth before the benefit of fewer shares, is the next test. Our AMG company profile follows the flows, forecast comparison and capital returns.