Operating margins remain constrained by a variable compensation model, fluctuating between 28.2% and 41.8% as revenue performance shifts with market conditions.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Sales/Revenue | 1.23B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 896.72M | 547.1M | 517.68M | 445.74M | 482.88M | 664.18M | 463.75M | 399.01M | 415.47M | 392.74M | 336.96M | 391.23M | 413.74M | -170.52M | 122.48M | 221.86M | 119.01M | 296.18M |
| Gross Margin % | 72.9% | 45.72% | 46.56% | 45.71% | 48.61% | 54.12% | 51.55% | 49.94% | 50.14% | 49.36% | 46.74% | 48.57% | 49.93% | -24.86% | 24.23% | 48.75% | 31.13% | 100% |
| Gross Profit Growth % | - | 5.68% | 16.14% | -7.69% | -27.3% | 43.22% | 16.22% | -3.96% | 5.79% | 16.56% | -13.87% | -5.44% | 342.64% | -239.21% | -44.79% | 86.43% | -59.82% | - |
| Operating Expenses | 481.63M | 147.48M | 151.05M | 142.14M | 138.8M | 123.69M | 105.42M | 115.04M | 110.53M | 106.33M | 102.8M | 108.85M | 106.83M | 90.69M | 75.4M | 67.57M | 53.81M | 223.08M |
| OpEx % of Revenue | - | 12.32% | 13.59% | 14.58% | 13.97% | 10.08% | 11.72% | 14.4% | 13.34% | 13.36% | 14.26% | 13.51% | 12.89% | 13.22% | 14.91% | 14.85% | 14.08% | 75.32% |
| Selling, General & Admin | 131.03M | 147.48M | 151.05M | 142.14M | 138.8M | 124.21M | 105.42M | 115M | 110.53M | 106.33M | 102.8M | 108.85M | 106.83M | 90.69M | 75.4M | 67.57M | 53.81M | 223.08M |
| SG&A % of Revenue | - | 12.32% | 13.59% | 14.58% | 13.97% | 10.12% | 11.72% | 14.39% | 13.34% | 13.36% | 14.26% | 13.51% | 12.89% | 13.22% | 14.91% | 14.85% | 14.08% | 75.32% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 415.09M | 399.63M | 366.63M | 303.59M | 344.1M | 540.49M | 358.32M | 283.45M | 304.94M | 286.41M | 234.23M | 282.38M | 306.9M | -261.2M | 47.09M | 154.29M | 65.2M | 73.1M |
| Operating Margin % | 33.74% | 33.39% | 32.98% | 31.13% | 34.64% | 44.04% | 39.83% | 35.48% | 36.8% | 36% | 32.49% | 35.06% | 37.03% | -38.09% | 9.31% | 33.9% | 17.05% | 24.68% |
| Operating Income Growth % | - | 9% | 20.76% | -11.77% | -36.34% | 50.84% | 26.41% | -7.05% | 6.47% | 22.28% | -17.05% | -7.99% | 217.5% | -654.73% | -69.48% | 136.66% | -10.81% | - |
| EBITDA | 424.21M | 408.93M | 376.49M | 312.94M | 351.89M | 547.42M | 364.95M | 289.69M | 310.61M | 291.71M | 239.51M | 286.9M | 310.15M | -257.98M | 49.49M | 156.66M | 67.48M | 75.49M |
| EBITDA Margin % | 34.49% | 34.17% | 33.86% | 32.09% | 35.43% | 44.61% | 40.57% | 36.26% | 37.48% | 36.66% | 33.23% | 35.62% | 37.43% | -37.61% | 9.79% | 34.42% | 17.65% | 25.49% |
| EBITDA Growth % | 10.05% | 8.62% | 20.31% | -11.07% | -35.72% | 50% | 25.98% | -6.74% | 6.48% | 21.8% | -16.52% | -7.5% | 220.22% | -621.3% | -68.41% | 132.13% | -10.6% | - |
| D&A (Non-Cash Add-back) | 9.12M | 9.3M | 9.86M | 9.35M | 7.8M | 6.93M | 6.63M | 6.23M | 5.67M | 5.3M | 5.27M | 4.52M | 3.25M | 3.23M | 2.4M | 2.36M | 2.29M | 2.39M |
| EBIT | 486.79M | 479.59M | 449.16M | 392.26M | 321.75M | 562.35M | 380.1M | 280.32M | 313.01M | 582.69M | 234.23M | 270.58M | 303.12M | -195.87M | 55.07M | 149.52M | 66.77M | 73.17M |
| Net Interest Income | 3.21M | 3.3M | 1M | -2.27M | -9.58M | -10.24M | -10.8M | -11.05M | -11.22M | -11.45M | -11.65M | -11.71M | -11.57M | -11.87M | -11.44M | -18.39M | -22.93M | -24.87M |
| Interest Income | 11.8M | 11.85M | 9.61M | 6.3M | 333K | 559K | 0 | 46K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 32.33K | 69.65K |
| Interest Expense | 8.6M | 8.55M | 8.61M | 8.57M | 9.91M | 10.8M | 10.8M | 11.1M | 11.22M | 11.45M | 11.65M | 11.71M | 11.57M | 11.87M | 11.44M | 18.39M | 22.96M | 24.94M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 478.19M | 489.14M | 440.55M | 383.69M | 311.83M | 551.55M | 369.3M | 269.27M | 301.79M | 571.25M | 224.48M | 258.88M | 291.54M | -207.74M | 43.62M | 131.13M | 43.81M | 48.23M |
| Pretax Margin % | 38.87% | 40.87% | 39.63% | 39.35% | 31.39% | 44.94% | 41.05% | 33.7% | 36.42% | 71.8% | 31.14% | 32.14% | 35.18% | -30.29% | 8.63% | 28.81% | 11.46% | 16.28% |
| Income Tax | 110.13M | 111.25M | 90.9M | 71.89M | 63.45M | 107.03M | 60.8M | 27.81M | 47.6M | 420.51M | 51.48M | 46.77M | 48.83M | 26.39M | 1.05M | 1.16M | 1.28M | 0 |
| Effective Tax Rate % | 23.03% | 22.74% | 20.63% | 18.74% | 20.35% | 19.4% | 16.46% | 10.33% | 15.77% | 73.61% | 22.93% | 18.07% | 16.75% | -12.7% | 2.4% | 0.89% | 2.92% | 0% |
| Net Income | 287.19M | 290.32M | 259.75M | 222.29M | 206.75M | 336.52M | 212.62M | 156.54M | 158.31M | 49.6M | 73.03M | 81.8M | 69.63M | 24.81M | 33.76M | 133.07M | 42.53M | 48.23M |
| Net Margin % | 23.35% | 24.26% | 23.36% | 22.8% | 20.82% | 27.42% | 23.64% | 19.59% | 19.1% | 6.23% | 10.13% | 10.16% | 8.4% | 3.62% | 6.68% | 29.24% | 11.12% | 16.28% |
| Net Income Growth % | 9.86% | 11.77% | 16.85% | 7.51% | -38.56% | 58.27% | 35.83% | -1.12% | 219.18% | -32.08% | -10.72% | 17.48% | 180.68% | -26.52% | -74.63% | 212.91% | -11.82% | - |
| Net Income (Continuing) | 368.06M | 377.8M | 349.65M | 311.8M | 248.38M | 444.52M | 308.5M | 241.46M | 254.19M | 150.74M | 173M | 212.11M | 242.71M | -234.13M | 42.58M | 129.97M | 42.53M | 48.23M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 124.54M | 343.59M | 361M | 279.61M | 152.42M | 130.79M | 104.32M | 5.54M | 5.44M | -1.86M | -14M | -13.49M | -3.38M | 88.53M | -672.72M | 23.17M | 0 | 0 |
| EPS (Diluted) | 4.03 | 4.05 | 3.66 | 3.19 | 2.94 | 5.09 | 3.40 | 2.65 | 2.84 | 0.75 | 1.57 | 1.86 | -0.37 | -0.63 | 0.83 | 1.98 | 0.65 | 0.73 |
| EPS Growth % | 8.45% | 10.66% | 14.73% | 8.5% | -42.24% | 49.71% | 28.3% | -6.69% | 278.67% | -52.23% | -15.59% | 602.7% | 41.27% | -175.9% | -58.08% | 204.62% | -10.96% | - |
| EPS (Basic) | - | 4.05 | 3.66 | 3.19 | 2.94 | 5.10 | 3.40 | 2.65 | 2.84 | 0.75 | 1.57 | 1.86 | -0.37 | -0.63 | 0.79 | 1.98 | 0.65 | 0.73 |
| Diluted Shares Outstanding | 71.2M | 65.6M | 64.94M | 63.49M | 62.5M | 59.88M | 55.64M | 51.13M | 48.86M | 44.65M | 38.14M | 35.45M | 27.51M | 19.81M | 40.53M | 65.77M | 65.77M | 65.77M |
| Basic Shares Outstanding | 66.1M | 65.6M | 64.9M | 63.45M | 62.48M | 59.87M | 55.63M | 51.13M | 48.86M | 44.65M | 38.14M | 35.45M | 27.51M | 19.81M | 42.79M | 65.77M | 65.77M | 65.77M |
| Dividend Payout Ratio | - | 88.56% | 76.21% | 82.5% | 120.29% | 75.61% | 95.48% | 120.21% | 105.98% | 264.16% | 158% | 151.52% | 143.34% | 58.94% | 239.59% | 50.43% | 86.44% | - |
Active management fee compression
As indicated by the quarterly income statements, APAM's revenue has fluctuated between $249.0 million and $350.7 million over the last ten quarters, reflecting a sensitivity to market-driven AUM levels that complicates the firm's ability to maintain a consistent, long-term organic growth trajectory.
The revenue profile appears heavily tethered to equity market performance, which introduces significant cyclicality into the top line. Investors should monitor whether the recent expansion into credit strategies can effectively decouple revenue growth from the firm's historical reliance on high-conviction equity mandates.
Based on reported financial data, gross margins have exhibited significant variance, ranging from 41.3% to 99.4%, which suggests that the firm's cost-of-revenue recognition may be subject to periodic adjustments or shifts in the underlying mix of investment management fee structures.
The extreme fluctuation in gross margins warrants further investigation into how the firm classifies its revenue-sharing payouts versus direct investment costs. This volatility implies that the firm's core profitability is less predictable than a standard asset manager with a more fixed cost base.
According to the provided income statements, APAM maintains an operating margin that has fluctuated between 28.2% and 41.8%, demonstrating that the firm's operating leverage is largely constrained by its variable compensation model which scales directly with revenue performance.
The firm's ability to control SG&A expenses appears disciplined, yet the operating income remains highly sensitive to top-line revenue swings. This suggests that while the firm is protected from fixed-cost bloat during downturns, it lacks the scalability required to significantly expand margins during periods of market growth.
As reported in recent filings, stock-based compensation has varied significantly, reaching as high as $8.5 million in 2025Q1, which suggests that earnings quality is periodically impacted by equity-based incentives that may dilute shareholder value or obscure underlying cash-based operational performance.
Investors should scrutinize the gap between GAAP net income and adjusted figures, as the timing of these compensation expenses can create artificial noise in quarterly EPS. The reliance on equity-based retention tools appears to be a necessary cost of the boutique model, but it complicates the assessment of true economic profitability.
Based on the provided data, the firm's reliance on high-active-share equity strategies faces a persistent threat from industry-wide fee compression, as evidenced by the inconsistent revenue growth and the potential for institutional clients to shift capital toward lower-cost passive or alternative investment vehicles.
Short-sellers may focus on the firm's inability to consistently grow revenue despite market appreciation, which could indicate a loss of competitive positioning. If the firm cannot demonstrate that its alpha generation justifies its fee structure, the current margin profile may face long-term downward pressure.
Quick answers to the most common questions about buying APAM stock.
Artisan Partners Asset Management Inc. (APAM) is profitable, generating $290.3M in net income for the fiscal year ending 2025 with a net profit margin of 24.3%.
Artisan Partners Asset Management Inc. (APAM) reported an operating income of $399.6M, resulting in an operating profit margin of 33.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Artisan Partners Asset Management Inc. (APAM) generated $547.1M in gross profit for the year, representing a gross profit margin of 45.7%. This demonstrates the company's core pricing power and production efficiency.