AllianceBernstein Reports Decrease in Net Income to $299.8 Million for Fiscal Year 2025

AllianceBernstein Holding L.P. (AB Holding) has released its 10-K filing for the fiscal year ending December 31, 2025, reporting a net income of $299.8 million, a decrease from $423.4 million in 2024. This translates to a net income per AB Holding Unit of $2.97, compared to $3.71 in the previous year. The decrease in net income was primarily attributed to lower net income attributable to AB Unitholders and a lower weighted average equity ownership interest. Despite the decrease in net income, AB Holding increased its distributions per AB Holding Unit to $3.38, up from $3.26 in 2024.

AllianceBernstein L.P. (AB), the operating partnership, reported total assets under management (AUM) of $866.9 billion as of December 31, 2025, an increase of 9.4% from $792.2 billion in 2024. This growth was primarily driven by market appreciation of $86.0 billion, partially offset by net outflows of $11.3 billion. Net revenues for AB increased by 1.2% to $4.5 billion, driven by higher investment advisory base fees of $175.1 million and higher distribution revenues of $91.8 million. These gains were partially offset by lower Bernstein Research Services revenue of $96.2 million due to its deconsolidation, lower performance-based fees of $85.7 million, higher investment losses of $17.4 million, and lower other revenues of $8.6 million.

AB's operating expenses increased by 3.9% to $3.5 billion, primarily due to the recognition of a gain on contingent payment arrangements of $121.0 million in the prior year and higher promotion and servicing expenses of $76.8 million. These increases were partially offset by lower general and administrative expenses of $42.2 million, lower employee compensation and benefits expense of $11.3 million, and lower interest on borrowings of $15.2 million. The operating income decreased by 6.5% to $1.1 billion, resulting in an operating margin of 23.0%, down from 24.7% in 2024.

A significant strategic development was the completion of the joint venture with Societe Generale (SocGen) on April 1, 2024, leading to the deconsolidation of the Bernstein Research Services business. On January 1, 2026, AB entered into an Amended and Restated Shareholder agreement with SocGen and exercised its option to deliver a 17.7% interest in the NA JV to SocGen resulting in AB owning a 49% interest in the NA JV. Subsequent to the Amendment Agreement, on January 1, 2026, AB and SocGen contributed their respective interests in the NA JV for an equal interest in ROW JV resulting in a single joint venture (the "AB/SG JV"). AB now owns a 49% interest in the AB/SG JV and SocGen owns a 51% majority interest. As of December 31, 2025, AB employed 4,468 full-time employees, compared to 4,341 in the previous year.