AllianceBernstein Reports 38.1% Decrease in Net Income for Q2 2025

AllianceBernstein Holding L.P. reported its financial results for the second quarter of 2025, revealing a net income of $70.2 million, a decrease of 38.1% from $113.5 million in the same period last year. For the first half of 2025, net income totaled $144.3 million, down from $190.7 million in 2024. The decline in profitability is attributed to a lower weighted average equity ownership interest in AllianceBernstein L.P. (AB) and reduced net income attributable to AB Unitholders, which fell to $210.5 million from $309.6 million year-over-year. The net income per unit also decreased to $0.64 from $0.99 in the prior year.

Total assets as of June 30, 2025, were reported at $1.98 billion, a decline from $2.03 billion at the end of 2024. The company’s liabilities decreased significantly to $449,000 from $2.77 million, while total partners' capital fell to $1.98 billion from $2.03 billion. The number of units representing assignments of beneficial ownership of limited partnership interests outstanding increased slightly to 110,537,295, including 100,000 units of general partnership interest.

In terms of operational developments, AllianceBernstein's cash distributions to unitholders increased to $205.2 million in the first half of 2025, compared to $172.7 million in the same period of 2024. The company also reported a rise in cash flows from operating activities, which reached $203.9 million, up from $172.0 million year-over-year. The increase in cash flow was primarily driven by higher cash distributions received from AB, amounting to $224.6 million, compared to $190.9 million in the previous year.

Strategically, the company has been active in managing its equity structure. During the second quarter, EQH completed a cash tender offer for 19.7 million AB Holding Units, increasing its economic interest in AB to approximately 68.6%. This transaction reflects ongoing efforts to optimize the capital structure and enhance shareholder value. Additionally, the company has maintained its focus on long-term incentive compensation plans, issuing 1.2 million restricted AB Holding Unit awards to employees and directors in both 2025 and 2024.

Looking ahead, management remains cautious about market conditions and their potential impact on financial performance. The company emphasized that its ability to meet financial obligations is closely tied to the cash flow generated from its investment in AB, which is subject to the performance of capital markets. The effective tax rate for the second quarter of 2025 was reported at 10.9%, up from 7.5% in the prior year, indicating a need for careful tax management as the company navigates its financial landscape.