PRESS RELEASE AB SCIENCE ANNOUNCES THE IDENTIFICATION OF A PLASMA BIOMARKER THAT INDICATES THE ACTIVITY OF MASITINIB IN TREATING AMYOTROPHIC LATERAL SCLEROSIS, AND THAT IS CAPABLE OF IDENTIFYING PATIENTS WITH PRO INFLAMATORY MICROGLIA, WHICH ARE TARGETED BY MASITINIB THIS BIOMARKER IS ALSO APPLICABLE TO PROGRESSIVE FORMS OF MULTIPLE SCLEROSIS AND ALZHEIMER DISEASE THIS BIOMARKER CAN BE STRATEGIC TO DETERMINE WHICH PATIENTS RESPOND TO TREATMENT AND POTENTIALLY INCREASE CHANCE OF REGISTRATION IN NEURODEGENER ...

Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $866.9 billion as of December 31, 2025, an increase of $74.7 billion, or 9.4%, driven by market appreciation of $86.0 billion, partially offset by net outflows of $11.3 billion[186]. - Institutional AUM increased by $32.8 billion, or 10.2%, to $354.2 billion, with gross sales rising to $26.7 billion from $13.0 billion in 2024[187]. - Retail AUM grew by $22.1 billion, or 6.6%, to $356.4 billion, despite net outflows of $9.1 billion and a decrease in gross sales from $99.9 billion in 2024 to $90.2 billion in 2025[188]. - Private Wealth Management AUM increased by $19.8 billion, or 14.4%, to $156.3 billion, supported by market appreciation of $17.7 billion and net inflows of $2.4 billion[189]. - Total assets under management reached $866.9 billion in 2025, reflecting a 9.4% increase from $792.2 billion in 2024[220]. - The Institutional channel's average AUM increased by $14.7 billion, or 4.5%, to $337.6 billion in 2025, with ending AUM rising by $32.8 billion, or 10.2%, to $354.2 billion[227]. - The Retail channel's average AUM grew by $28.2 billion, or 8.9%, to $343.5 billion in 2025, with ending AUM increasing by $22.1 billion, or 6.6%, to $356.4 billion[229]. - The Private Wealth Management channel's average AUM increased by $14.6 billion, or 11.3%, to $144.9 billion in 2025, with ending AUM rising by $19.8 billion, or 14.4%, to $156.3 billion[231]. Financial Performance - Net revenues for 2025 were $4.5 billion, an increase of $55.5 million, or 1.2%, primarily due to higher investment advisory base fees of $175.1 million[191]. - Operating income decreased by $73.6 million, or 6.5%, to $1.1 billion, with the operating margin declining to 23.0% from 24.7% in 2024[193]. - Net income attributable to AB Unitholders was $982.5 million in 2025, a decrease of 16.3% compared to $1.2 billion in 2024[206]. - AB Holding's net income for 2025 was $299.8 million, a decrease from $423.4 million in 2024, while adjusted net income increased to $336.9 million from $370.8 million in 2024[212]. - The adjusted net income per AB Holding Unit for 2025 was $3.33, compared to $3.25 in 2024[212]. - Net income for 2025 was $299,836,000, compared to $423,374,000 in 2024, reflecting a decline of approximately 29.2%[366]. - Comprehensive income for 2025 was $323,396, down from $423,994 in 2024, reflecting a decline of 23.7%[368]. Expenses and Cash Flow - Operating expenses rose to $3.5 billion, an increase of $129.1 million, or 3.9%, driven by higher promotion and servicing expenses[192]. - Cash provided by operating activities increased to $352.4 million in 2025 from $340.5 million in 2024, primarily due to higher cash distributions from AB of $8.8 million[214]. - Cash distributions to Unitholders increased to $352.4 million in 2025, up from $340.5 million in 2024, driven by higher distributions of $11.2 million[216]. - Net cash provided by operating activities was $1.0 billion in 2025, down from $1.4 billion in 2024, primarily due to a decrease in accounts payable and accrued liabilities[7]. - Total expenses for 2025 increased by 3.9% to $3,480.2 million compared to $3,351.1 million in 2024[1]. Market and Investment Performance - Absolute investment returns for fixed income services showed an 8.86% return for 1 year, outperforming the Bloomberg Barclays U.S. Aggregate Index by 1.56%[233]. - The company reported a significant increase in market appreciation across all channels, contributing to overall AUM growth despite net outflows in certain segments[227]. - Investment advisory and services fees increased by $89.4 million, or 2.6%, in 2025, primarily due to a $175.1 million increase in base fees[272]. - Performance-based fees decreased by $85.7 million, or 31.6%, in 2025, mainly due to lower fees from several funds[273]. - Dividend and interest income decreased by $24.9 million, or 15.1%, in 2025, due to lower interest earned on U.S. Treasury Bills[281]. - Investment losses totaled $30.8 million in 2025, compared to a loss of $13.5 million in 2024[285]. Joint Ventures and Partnerships - AB's joint venture with Societe Generale resulted in a cash payment of $304.0 million to equalize contributions, with AB retaining a 49% interest in the North America joint venture[201]. - The anticipated capital from EQH's insurance subsidiaries is expected to accelerate growth in AB's private alternatives business, enhancing overall performance[198]. - The company plans to fully divest from joint ventures, with income or loss from these investments recorded as equity method investment income (loss) starting April 1, 2024[252]. Liquidity and Capital Management - AB Holding has no liquidity risk as it only pays distributions to Unitholders based on the cash flow received from AB[217]. - The company believes its financial condition and access to capital markets will provide adequate liquidity for its general business needs[315]. - The company maintains an $800 million committed, unsecured senior revolving credit facility, which was amended on August 5, 2025[317]. Other Financial Metrics - The operating margin for 2025 was 23.0%, down from 24.7% in 2024 and up from 19.1% in 2023[236]. - Cash distributions per AB Unit increased by 3.1% to $3.71 in 2025, compared to $3.60 in 2024 and $3.00 in 2023[236]. - The company recorded an impairment charge of $4.0 million related to a smaller historical acquisition in 2025[258]. - The company issued 132,079 AB Holding Units for long-term incentive compensation plan awards in 2025, up from 115,640 in 2024[372].

Core Insights - AllianceBernstein L.P. reported a preliminary increase in assets under management to $875 billion as of January 31, 2026, up from $867 billion at the end of December 2025, reflecting a 1% month-over-month growth driven by market appreciation [1][1][1] Assets Under Management Breakdown - The total assets under management include: - Private: $52 billion - Institutions: $167 billion - Retail: $61 billion - Wealth: $280 billion - Total Equity: $812 billion - Total Fixed Income: $121 billion - Alternatives/Multi-Asset Solutions: $156 billion - The total equity increased from $810 billion to $812 billion, while total fixed income saw a slight increase from $121 billion to $121 billion [1][1][1] Net Outflows - The increase in assets was partially offset by net outflows concentrated in the Retail and Institutional channels, with Private Wealth also experiencing slight outflows [1][1][1] Company Overview - AllianceBernstein is a leading global investment management firm that provides diversified investment services to institutional investors, individuals, and private wealth clients across major world markets [1][1][1]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha with over 1,000 followers [1] - He has authored a book titled "Real Estate Investment Trusts (REITs): A Fundamental Analysis (2026 Edition)" available on Amazon [1] - Anthony has a background in business and information systems, having worked at Charles Schwab in the IT department [1] - He operates his own boutique equities research firm, Albert Anthony & Company, remotely [1] - The author has participated in numerous business and innovation conferences and has hosted a program for Online Live TV Croatia [1] - He holds a B.A. in Political Science and various certifications including Microsoft Fundamentals and Risk Management specialization from CFI [1] - Anthony is also active on YouTube discussing REITs and is an investor in REIT stocks [1] Company and Industry Summary - Albert Anthony & Company is a Texas-registered business focused on equities research [1] - The firm provides general market commentary and research based on publicly available data [1] - The author does not engage with non-publicly traded companies, small cap stocks, or startup CEOs [1]

Core Viewpoint - AB Science has received FDA's Minor Use in Major Species (MUMS) designation for Masivet® to treat canine mast cell tumors, which is expected to facilitate its development and commercialization in the USA [1][3][4]. Company Overview - AB Science is a pharmaceutical company founded in 2001, specializing in the research, development, and commercialization of protein kinase inhibitors (PKIs) targeting diseases with high unmet medical needs [7][8]. - The company is headquartered in Paris, France, and is listed on Euronext Paris [8]. Product Information - Masivet® is a targeted therapy that inhibits juxtamembrane mutations of c-kit, the main driver of dog mast cell tumors [2]. - The MUMS designation provides seven years of exclusive marketing rights upon approval and eligibility for grants to support the approval process [3]. Market Potential - Masivet® is already registered and profitable in Europe but not yet in the USA; the MUMS status is seen as a significant encouragement for its development in the US market [4]. - AB Science aims to expand its animal health franchise, with expectations that EBITDA from this segment will help cover fixed costs and contribute to the company's financial stability [4]. Global Expansion Plans - The company is in discussions for distribution and commercialization agreements in various regions, including Europe (Norway, Denmark, Sweden, Finland, Lithuania), LATAM (Brazil, Argentina, Mexico), Asia (Japan, Taiwan), MENA regions, and South Africa [5]. - There is a global demand for Masivet, with positive feedback from pet owners and veterinarians regarding its safety and effectiveness [6].

Core Viewpoint - AllianceBernstein Holding L.P. demonstrated strong financial performance in its latest earnings report, surpassing revenue and earnings estimates while managing a significant amount of assets despite facing net outflows [1][2][6] Financial Performance - The company reported an earnings per share (EPS) of $0.96, exceeding the estimated $0.92 [1][6] - Revenue was approximately $957.3 million, slightly above the forecast of $956.1 million [2][6] - The GAAP diluted net income was $0.90 per unit, with an adjusted diluted net income of $0.96 per unit [2] Assets Under Management - AllianceBernstein closed the year with a record $867 billion in assets under management [3][6] Net Outflows - The company faced $9.4 billion in net outflows, primarily due to $22.5 billion in net redemptions [4][6] Growth Areas - Despite the outflows, the company achieved targeted organic growth in areas such as ultra-high-net-worth, insurance, separately managed accounts (SMAs), active ETFs, and private markets [4] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 14.80, a price-to-sales ratio of about 12.84, and an enterprise value to sales ratio of 12.84 [5] - The enterprise value to operating cash flow ratio is around 12.73, and the earnings yield is approximately 6.76% [5]

Financial Data and Key Metrics Changes - Assets under management (AUM) reached a record $867 billion at year-end 2025, reflecting market appreciation and strong sales [5] - Adjusted earnings for Q4 2025 were $0.96 per unit, down 9% year-over-year, while full-year adjusted earnings increased 2% to $3.33 [23][24] - Total net revenues for Q4 were $957 million, down 2% year-over-year, with full-year revenues flat at $3.5 billion [24] - Adjusted operating margin for the year was 33.7%, at the upper end of the 30%-35% target range [8][37] Business Line Data and Key Metrics Changes - Bernstein Private Wealth had $156 billion in AUM, contributing approximately 37% of firm-wide revenues in 2025 [5] - Private Markets platform closed the year with $82 billion in AUM, up 18% year-over-year [6] - SMA franchise reached $62 billion in AUM, growing 12% organically in 2025 [6] - Active ETF suite expanded to $14 billion across 24 strategies, delivering 65% organic growth in 2025 [6] Market Data and Key Metrics Changes - Firm-wide active net flows were negative for both the quarter and the full year, with total net active outflows of $9.4 billion in 2025 [6] - Taxable fixed income saw $2 billion in outflows in Q4 and $9.1 billion for the year, driven by geopolitical uncertainty [7] - Tax-exempt franchise generated $3.9 billion in inflows in Q4 and $11.6 billion for the year, marking 13 consecutive years of organic growth [7] Company Strategy and Development Direction - The company is focused on expanding its Private Markets capabilities and enhancing commercial real estate lending [9][22] - A partnership with Equitable is seen as a strategic advantage, expected to onboard over $10 billion of new long-duration assets by year-end 2026 [9][31] - The firm aims to exceed its target of $90 billion-$100 billion in Private Markets AUM by 2027, with ongoing investments in growth initiatives [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's strategic progress and disciplined execution throughout 2025 [4] - The outlook for 2026 includes expectations for continued growth in private asset mandates and a focus on enhancing investment services [39] - The firm anticipates that stable economic growth could favor international and value strategies moving forward [16] Other Important Information - The effective tax rate for 2025 was 5.9%, with a forecast of 6%-7% for 2026 [32] - The firm is investing in a new investment management platform expected to enhance operational efficiency and drive future growth [30] Q&A Session Summary Question: Outlook for high-yield funds in Asia - Management noted that macro factors like FX risk have not significantly impacted structural demand for fixed income in Asia, with strong demand for U.S. dollar-denominated strategies [41][42] Question: Seasonality in Private Wealth - Management indicated that tax impacts in Q2 are a key seasonal factor, with overall confidence in the pipeline for new client acquisition [47][48] Question: Private credit exposure to software - Management stated that exposure to software within the private credit portfolio is not significant, with diligent monitoring of credit risks [51][53] Question: Growth of Private Markets AUM beyond 2027 - Management expressed ambition to exceed the current target for Private Markets AUM and indicated that further opportunities for expansion exist [55]

Financial Data and Key Metrics Changes - Assets under management (AUM) reached a record $867 billion at year-end 2025, reflecting market appreciation and strong sales [5] - Adjusted earnings for Q4 2025 were $0.96 per unit, down 9% year-over-year, while full-year adjusted earnings increased 2% to $3.33 [23][24] - Total net revenues for Q4 were $957 million, down 2% year-over-year, with full-year revenues flat at $3.5 billion [24] - Adjusted operating margin for the year expanded to 33.7%, at the upper end of the 30%-35% target range [8][37] Business Line Data and Key Metrics Changes - Bernstein Private Wealth business had $156 billion in AUM, contributing approximately 37% of firm-wide revenues in 2025 [5] - Private markets platform closed the year with $82 billion in AUM, up 18% year-over-year [6] - SMA franchise reached $62 billion in AUM, growing 12% organically in 2025 [6] - Active ETF suite expanded to $14 billion across 24 strategies, delivering 65% organic growth in 2025 [6] Market Data and Key Metrics Changes - Firm-wide active net flows were negative for both the quarter and the full year, with total net active outflows of $9.4 billion in 2025 [6] - Taxable fixed income saw $2 billion in outflows in Q4 and $9.1 billion for the year, driven by geopolitical uncertainty [7] - Tax-exempt franchise generated $3.9 billion in inflows in Q4 and $11.6 billion for the year, marking 13 consecutive years of organic growth [7] Company Strategy and Development Direction - The company is focused on expanding its private markets capabilities and enhancing commercial real estate lending [9][22] - A partnership with Equitable is expected to onboard more than $10 billion of new long-duration assets by year-end 2026 [9] - The strategic direction includes disciplined investments in targeted growth initiatives, product innovation, and expanded marketing efforts [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to navigate macroeconomic challenges and maintain strong demand for its products [41][44] - The outlook for private markets AUM is ambitious, with expectations to exceed the $90 billion-$100 billion target by 2027 [55] - Management noted that the firm is well-positioned to capture fixed income's enduring value amid ongoing market trends [18] Other Important Information - The effective tax rate for 2025 was 5.9%, with a forecast of 6%-7% for 2026 [32] - The firm experienced a decline in performance fees, with full-year performance fees totaling $172 million, down 24% year-over-year [25][35] Q&A Session Summary Question: Outlook for high-yield funds in Asia - Management discussed macro factors influencing demand, including FX risk and interest rates, noting strong structural demand for U.S. dollar-denominated strategies [41][42][44] Question: Seasonality in private wealth - Management indicated that tax impacts in Q2 are significant, with overall positive sentiment about the pipeline for new client acquisition [47][48] Question: Private credit exposure to software - Management stated that exposure to software within the private credit portfolio is not significant, with diligent monitoring of credit risks [51][53] Question: Growth of private markets AUM beyond 2027 - Management expressed ambition to exceed the current target and indicated that onboarding from the commercial mortgage lending team will contribute to growth [55]

Financial Data and Key Metrics Changes - Assets under management (AUM) reached a record $867 billion at year-end 2025, reflecting market appreciation and strong sales [5] - Adjusted earnings for Q4 2025 were $0.96 per unit, down 9% year-over-year, while full-year adjusted earnings increased 2% to $3.33 [22] - Total net revenues for Q4 were $957 million, down 2% year-over-year, with full-year revenues flat at $3.5 billion [23] - Adjusted operating margin expanded to 33.7% for the year, at the upper end of the 30%-35% target range [9][36] Business Line Data and Key Metrics Changes - Bernstein Private Wealth business had $156 billion in AUM, contributing approximately 37% of firm-wide revenues in 2025 [5] - Private markets platform closed the year with $82 billion in AUM, up 18% year-over-year [6] - SMA franchise reached $62 billion in AUM, growing 12% organically in 2025 [6] - Active ETF suite expanded to $14 billion across 24 strategies, delivering 65% organic growth in 2025 [6] Market Data and Key Metrics Changes - Firm-wide active net flows were negative for both the quarter and the full year, with total net active outflows of $9.4 billion in 2025 [6] - Tax-exempt franchise generated $3.9 billion in inflows in Q4 and $11.6 billion for the year, marking 13 consecutive years of organic growth [8] - Alternatives and multi-asset strategies posted $1.9 billion active net inflows in Q4 and $10.6 billion for the full year [9] Company Strategy and Development Direction - The company is focused on expanding its private markets capabilities and enhancing commercial real estate lending [10][21] - Strategic partnership with Equitable is seen as a competitive advantage, expected to onboard over $10 billion of new long-duration assets by year-end 2026 [10][21] - Investments in technology and operational build-out are aimed at enhancing earnings power over time [29][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to navigate macroeconomic challenges and highlighted strong momentum entering 2026 [22][36] - The company anticipates adding approximately $3 billion of new private asset mandates from strategic insurance partnerships in the first half of 2026 [11] - Management noted that the bond reallocation trend has significant runway, positioning the firm to capture fixed income's enduring value [17] Other Important Information - The effective tax rate for 2025 was 5.9%, with a forecast of 6%-7% for 2026 [31] - The firm expects non-compensation expenses to be in the range of $625 million-$650 million for 2026, reflecting investments in growth initiatives [26][30] Q&A Session Summary Question: Outlook for high-yield funds distributed in Asia - Management noted macro factors such as FX risk and interest rates but emphasized strong structural demand for U.S. dollar-denominated strategies in Asia [40][41] Question: Seasonality in private wealth and expected flow demand - Management indicated that tax impacts in Q2 are a key seasonal factor, with strong growth driven by M&A activity and onboarding new ultra network clients [45][46] Question: Private credit exposure to software across the portfolio - Management stated that exposure to software is not significant, with around 25% of the corporate direct lending business related to technology [49][50] Question: Growth of private markets AUM beyond the target - Management expressed ambition to exceed the $90 billion-$100 billion target for private markets AUM by 2027, with ongoing opportunities for expansion [53]

Fourth Quarter 2025 Review February 5, 2026 Seth P. Bernstein, Chief Executive Officer Tom Simeone, Chief Financial Officer Cautions Regarding Forward-Looking Statements Certain statements provided by management in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed o ...