Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 307,909,000.00 | 282,749,000.00 | ||
| Total Revenue | ||||
| Total COGS | ||||
| Gross Profit | ||||
| Income tax expense (benefit) | 25,899,000.00 | 24,861,000.00 | ||
| Net income attributable to noncontrolling interests | 19,999,000.00 | 28,433,000.00 | ||
| Other income (expense), net | -42,103,000.00 | -41,077,000.00 | ||
| Other operating expenses | 215,572,000.00 | 196,247,000.00 | ||
| Selling and marketing | 7,714,000.00 | 6,730,000.00 | ||
| Total Expenses | ||||
| Net Income | ||||
| Net income (loss) available to common stockholders | ||||
| Basic earnings per share |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 122,551,000.00 | 154,536,000.00 |
| Deferred tax assets | 335,798,000.00 | 354,702,000.00 |
| Goodwill and intangibles | 48,084,000.00 | 0.00 |
| Operating lease right-of-use assets | 110,633,000.00 | 105,278,000.00 |
| Other assets (derived) | 346,032,000.00 | 297,951,000.00 |
| Property, plant and equipment | 30,884,000.00 | 33,020,000.00 |
| Receivables from customers and brokers | 114,912,000.00 | 148,255,000.00 |
| Restricted cash and equivalents | 350,622,000.00 | 255,506,000.00 |
| Total investments | 0.00 | 228,044,000.00 |
| Total Assets | ||
| Liabilities | ||
| Debt | 189,236,000.00 | 189,140,000.00 |
| Deferred revenue | 5,500,000.00 | 0.00 |
| Operating lease liabilities | 125,662,000.00 | 120,881,000.00 |
| Other liabilities (derived) | 587,742,000.00 | 484,852,000.00 |
| Total Liabilities | ||
| Temporary equity | ||
| Redeemable noncontrolling interests | 86,071,000.00 | 304,263,000.00 |
| Total temporary equity | ||
| Equity | ||
| Stockholders equity | 420,043,000.00 | 438,831,000.00 |
| Total stockholders equity attributable to parent | ||
| Noncontrolling interests | 45,262,000.00 | 39,325,000.00 |
| Total Equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 138,869,000.00 | 128,694,000.00 |
| Depreciation and amortization | 4,541,000.00 | 4,976,000.00 |
| Stock-based compensation | 14,110,000.00 | 14,319,000.00 |
| Changes in operating assets and liabilities, net | 140,038,000.00 | 60,827,000.00 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | 22,798,000.00 | -5,540,000.00 |
| Net cash from investing activities | - | |
| Financing activities | ||
| Financing activities, net | -195,513,000.00 | -122,902,000.00 |
| Net cash from financing activities | - | - |
| Net change in cash | ||
| Portion held by consolidated entities (derived) | 29,727,000.00 | 36,988,000.00 |
| Cash at beginning of period | 268,218,000.00 | |
| Cash at end of period | 311,604,000.00 | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Balance at beginning of period | 478,156,000.00 | 422,002,000.00 |
| Net income | 138,869,000.00 | 128,694,000.00 |
| Other equity movements | -151,720,000.00 | -131,619,000.00 |
| Balance at end of period | 465,305,000.00 | 419,077,000.00 |
Artisan Partners Asset Management Inc. is a public reporting company classified under Investment Advice. The accompanying condensed financial statements are unaudited, have been prepared from the Company's connected books and records, and, in the opinion of management, reflect the interim results for the period presented; results for the interim period are not necessarily indicative of the results to be expected for the full year. These interim statements are presented as of and for the period ended June 30, 2026.
Revenue for the period was $307,909,000, compared with $282,749,000 in the prior period, an increase of 8.9%. Deferred revenue was $5,500,000 at period end, compared with no deferred revenue in the prior period, and accounts receivable increased 4.7% to $122,551,000 from $117,003,000. Net income for the period was $80,828,000. Net income attributable to noncontrolling interests was $19,999,000, compared with $28,433,000 in the prior period, a decrease of 29.7%. Basic earnings per share for the period was $1.11, computed using weighted-average basic shares outstanding of 66,355,850.
Total debt at June 30, 2026 was $908,140,000. This included debt of $189,236,000, down 5.2% from $199,512,000 in the prior period, and operating lease liabilities of $125,662,000, up 31.4% from $95,666,000. Operating lease right-of-use assets were $110,633,000 at period end, an increase of 40.5% from $78,716,000 in the prior period. Property, plant and equipment was $30,884,000, a decrease of 16.7% from $37,071,000 in the prior period.
Total equity at June 30, 2026 was $465,305,000. Stockholders' equity was $420,043,000, an increase of 10.0% from $381,819,000 in the prior period. Noncontrolling interests increased 21.5% to $45,262,000 from $37,258,000, while redeemable noncontrolling interests decreased 53.5% to $86,071,000 from $185,201,000. Restricted cash and equivalents were $350,622,000 at period end, an increase of 12.5% from $311,604,000 in the prior period.
| Current | Prior | |
|---|---|---|
| Debt | 189,236,000.00 | 189,140,000.00 |
| Operating lease liabilities | 125,662,000.00 | 120,881,000.00 |
| Total debt | 314,898,000.00 | 310,021,000.00 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 30,884,000.00 | 33,020,000.00 |
| Total property and equipment | 30,884,000.00 | 33,020,000.00 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 420,043,000.00 | 438,831,000.00 |
| Total stockholders' equity | 420,043,000.00 | 438,831,000.00 |
Artisan Partners Asset Management Inc. is a public reporting company classified under Investment Advice. The following discussion compares our results of operations for the period ended June 30, 2026 to the comparable prior-year period. Revenue for the current period was $307.9 million, an increase of 8.9% from $282.7 million in the prior-year period, driven primarily by [COMPLETE: description of revenue drivers, such as changes in assets under management and fee rates]. The increase in revenue was accompanied by higher accounts receivable, which grew 4.7% to $122.6 million from $117.0 million, and receivables from customers and brokers, which grew 10.4% to $114.9 million from $104.1 million. During the period we also recorded deferred revenue of $5.5 million, compared to none in the prior-year period.
Other operating expenses increased 9.8% to $215.6 million from $196.2 million, and selling and marketing expense increased 14.6% to $7.7 million from $6.7 million, reflecting [COMPLETE: description of expense drivers]. Other income, net, was $42.1 million for the current period compared to $41.1 million in the prior-year period, an increase of 2.5%. Income tax expense was $25.9 million, up 4.2% from $24.9 million in the prior-year period. Net income attributable to noncontrolling interests was $20.0 million, a decrease of 29.7% from $28.4 million in the prior-year period. Net income for the period was $80.8 million, and basic earnings per share was $1.11 based on weighted-average basic shares outstanding of 66,355,850.
Our financial position strengthened during the period. Stockholders' equity increased 10.0% to $420.0 million from $381.8 million, while debt decreased 5.2% to $189.2 million from $199.5 million. Goodwill and intangibles of $48.1 million were recorded during the period, compared to none in the prior-year period, in connection with [COMPLETE: description of the related transaction]. Operating lease right-of-use assets increased 40.5% to $110.6 million from $78.7 million, with corresponding operating lease liabilities increasing 31.4% to $125.7 million from $95.7 million. Redeemable noncontrolling interests decreased 53.5% to $86.1 million from $185.2 million, while noncontrolling interests increased 21.5% to $45.3 million from $37.3 million.
With respect to liquidity and capital resources, restricted cash and equivalents increased 12.5% to $350.6 million from $311.6 million. Our cash and cash equivalents totaled [COMPLETE: cash and cash equivalents balance] as of June 30, 2026. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Based on current cash and equivalents, expected cash flows from operations, and available capital resources, management believes our resources are sufficient to meet our operating and capital requirements for at least the next twelve months.
Our primary exposure to market risk is interest rate risk associated with our cash, cash equivalents, and short-term investments. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and changes in prevailing interest rates could affect the amount of interest income we earn on these balances as well as their fair value. As of June 30, 2026, our restricted cash and equivalents totaled $350,622,000, an increase of 12.5% from $311,604,000 at the prior period end, which increases the sensitivity of our interest income to movements in short-term interest rates. [COMPLETE: quantified sensitivity analysis, such as the estimated impact of a hypothetical change in interest rates on interest income or fair value]
Changes in interest rates may also affect our cost of borrowing. Our outstanding debt was $189,236,000 as of June 30, 2026, compared with $199,512,000 in the prior period, a decrease of 5.2%. [COMPLETE: description of fixed versus floating rate composition of outstanding debt and related interest rate sensitivity] Other income (expense), net contributed income of $42,103,000 for the current period, compared with income of $41,077,000 in the prior period, and this line item may fluctuate with market conditions, including changes in interest rates. Net income for the period was $80,828,000, and a sustained change in market interest rates could affect our results of operations in future periods.
We do not have material foreign currency or commodity price exposure. Accordingly, we have not entered into hedging arrangements with respect to foreign currency or commodity price risk. These disclosures relate to Artisan Partners Asset Management Inc., a public reporting company classified under Investment Advice, as of and for the period ended June 30, 2026. Actual results may differ from any estimates or assumptions reflected above due to changes in market conditions and other factors.
Our management, with the participation of our [COMPLETE: certifying officer titles, e.g., Chief Executive Officer and Chief Financial Officer], evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report, which was June 30, 2026. Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management to allow timely decisions regarding required disclosure. Based on that evaluation, management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period.
There were no changes in our internal control over financial reporting that occurred during the quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
[COMPLETE: Management's conclusion language above must be reviewed and formally adopted by management prior to filing.]
From time to time, Artisan Partners Asset Management Inc. is involved in legal proceedings arising in the ordinary course of business. These matters may include claims, disputes, and other proceedings incidental to the conduct of the company's investment management business. Management does not currently believe that any pending legal matter is material to the company's financial statements.
The outcome of legal proceedings is inherently uncertain, and the company's assessment of pending matters may change as those matters develop. Based on information currently available, management does not expect that the resolution of proceedings arising in the ordinary course of business will have a material effect on the company's financial statements.
Artisan Partners Asset Management Inc. is a public reporting company classified under Investment Advice, and an investment in our securities involves risks and uncertainties related to our business, our industry, and the markets in which we operate. For the period ended June 30, 2026, we reported revenue of $307,909,000 and net income of $80,828,000, and our results of operations remain sensitive to changes in the value of the assets we manage, client demand for our investment strategies, and broader financial market conditions. Our income tax expense of $25,899,000 for the current period increased 4.2% from $24,861,000 in the prior period, and other operating expenses of $215,572,000 increased 9.8% from $196,247,000, and continued growth in our cost base relative to revenue could adversely affect our margins and profitability. Except as described below and in [COMPLETE: reference to risk factors disclosed in the company's most recent Annual Report on Form 10-K], there have been no material changes to the risk factors previously disclosed.
Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and changes in prevailing interest rates could affect the income we earn on these balances. As of the current period, we held restricted cash and equivalents of $350,622,000, an increase of 12.5% from $311,604,000 in the prior period, which heightens our sensitivity to interest rate movements. We do not have material foreign currency or commodity price exposure, although this profile could change as our business evolves. Our debt of $189,236,000 and operating lease liabilities of $125,662,000, the latter of which increased 31.4% from $95,666,000 in the prior period, expose us to refinancing, liquidity, and fixed-obligation risks, and any inability to service or refinance these obligations on favorable terms could adversely affect our financial condition.
We are involved in legal proceedings arising in the ordinary course of business from time to time, and litigation or regulatory matters could result in costs, damages, reputational harm, or distraction of management even where we ultimately prevail. While management does not currently believe any pending matter is material to the financial statements, the outcome of legal proceedings is inherently uncertain and adverse developments could differ from our current expectations. In addition, our structure includes noncontrolling interests of $45,262,000 and redeemable noncontrolling interests of $86,071,000, the latter of which declined 53.5% from $185,201,000 in the prior period, and changes in the size, terms, or redemption of these interests could affect the earnings and cash flows attributable to our stockholders. Net income attributable to noncontrolling interests was $19,999,000 in the current period compared to $28,433,000 in the prior period, and fluctuations in these amounts may cause the results attributable to our common stockholders to vary from period to period.
The following disclosure is provided pursuant to Item 408(a) of Regulation S-K regarding the adoption and termination of Rule 10b5-1 trading arrangements by directors and officers of Artisan Partners Asset Management Inc. during the quarter ended June 30, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]