Operating margins exhibit significant cyclicality, fluctuating between 14.2% and 38.5% over the last ten quarters due to the variable nature of performance-based fee revenue.
| 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 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.37B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 1.61B | 2.1B | 1.13B | 1.15B | 1.26B | 1.37B | 1.14B | 1.3B | 1.39B | 1.33B | 1.26B | 1.46B | 1.48B | 1.24B | 1.02B | 986M | 763.7M | 439.26M | 641.32M | 790.5M | 697.95M | 895M | 643.29M | 478.97M | 466.57M | 397.07M | 273.67M | 292M | 232.22M | 50.1M | 48.1M |
| Gross Margin % | 68.14% | 86.04% | 55.15% | 55.9% | 54.01% | 56.6% | 56.41% | 57.89% | 58.49% | 57.53% | 57.51% | 58.64% | 58.96% | 56.71% | 56.54% | 57.84% | 56.23% | 52.18% | 55.37% | 57.71% | 59.64% | 97.65% | 97.47% | 96.76% | 96.69% | 97.27% | 59.66% | 56.29% | 97.37% | 52.57% | 95.44% |
| Gross Profit Growth % | - | 86.95% | -2.15% | -8.57% | -7.85% | 19.37% | -11.78% | -6.8% | 4.92% | 5.05% | -13.36% | -1.59% | 19.26% | 21.6% | 3.53% | 29.11% | 73.86% | -31.51% | -18.87% | 13.26% | -22.02% | 39.13% | 34.31% | 2.66% | 17.5% | 45.09% | -6.28% | 25.75% | 363.5% | 4.16% | - |
| Operating Expenses | 936.5M | 1.33B | 418.9M | 419.5M | 452.9M | 399.4M | 481M | 542.6M | 624.2M | 218.1M | 556.9M | 332.9M | 665.2M | 607.2M | 620.4M | 499.9M | 389.7M | 199.41M | 282.72M | 455.45M | 244.04M | 559.94M | 375.41M | 281.46M | 270.74M | 242.78M | 99.24M | 79.4M | 139.4M | 27.5M | 41M |
| OpEx % of Revenue | - | 54.28% | 20.53% | 20.39% | 19.44% | 16.56% | 23.72% | 24.23% | 26.24% | 9.46% | 25.38% | 13.4% | 26.49% | 27.74% | 34.36% | 29.32% | 28.69% | 23.69% | 24.41% | 33.25% | 20.85% | 61.1% | 56.88% | 56.86% | 56.11% | 59.47% | 21.63% | 15.31% | 58.45% | 28.86% | 81.35% |
| Selling, General & Admin | 313.9M | 408.6M | 376.5M | 358.2M | 385.5M | 347.1M | 321.4M | 376.8M | 417.7M | 373.1M | 398.1M | 443.8M | 485.5M | 427.2M | 366.9M | 350.8M | 284.6M | 126.78M | 209.59M | 216.79M | 207.9M | 528.04M | 350.7M | 259.05M | 250.36M | 208.68M | 68.22M | 53.3M | 119.31M | 18.9M | 32M |
| SG&A % of Revenue | - | 16.71% | 18.45% | 17.41% | 16.55% | 14.39% | 15.85% | 16.82% | 17.56% | 16.19% | 18.14% | 17.86% | 19.34% | 19.52% | 20.32% | 20.58% | 20.95% | 15.06% | 18.1% | 15.83% | 17.76% | 57.62% | 53.14% | 52.33% | 51.88% | 51.12% | 14.87% | 10.28% | 50.03% | 19.83% | 63.49% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 676M | 776.8M | 706.7M | 730.8M | 805.2M | 965.9M | 662.8M | 754M | 767M | 1.11B | 705.3M | 1.12B | 815.2M | 634.1M | 400.4M | 486.1M | 374M | 239.85M | 358.6M | 335.06M | 453.91M | 335.06M | 267.88M | 197.51M | 195.83M | 154.29M | 174.44M | 212.6M | 92.8M | 22.6M | 7.1M |
| Operating Margin % | 28.57% | 31.76% | 34.63% | 35.51% | 34.56% | 40.04% | 32.69% | 33.67% | 32.25% | 48.07% | 32.14% | 45.24% | 32.47% | 28.97% | 22.18% | 28.51% | 27.54% | 28.49% | 30.96% | 24.46% | 38.78% | 36.56% | 40.59% | 39.9% | 40.58% | 37.8% | 38.03% | 40.99% | 38.91% | 23.71% | 14.09% |
| Operating Income Growth % | - | 9.92% | -3.3% | -9.24% | -16.64% | 45.73% | -12.1% | -1.69% | -30.77% | 57.08% | -37.25% | 37.87% | 28.56% | 58.37% | -17.63% | 29.97% | 55.93% | -33.12% | 7.03% | -26.19% | 35.47% | 25.08% | 35.63% | 0.86% | 26.92% | -11.55% | -17.95% | 129.09% | 310.62% | 218.31% | - |
| EBITDA | 812.2M | 947.5M | 749.1M | 792.1M | 872.6M | 1.02B | 822.4M | 919.8M | 903.8M | 1.21B | 835M | 1.26B | 954.3M | 776.3M | 614.5M | 598.8M | 448.1M | 285.53M | 405.23M | 380.4M | 492.92M | 369.98M | 296.23M | 223.21M | 219.79M | 192.75M | 205.46M | 238.7M | 112.9M | 31.2M | 16.1M |
| EBITDA Margin % | 34.32% | 38.74% | 36.7% | 38.49% | 37.46% | 42.21% | 40.56% | 41.07% | 38% | 52.69% | 38.05% | 50.64% | 38.01% | 35.47% | 34.03% | 35.12% | 32.99% | 33.92% | 34.99% | 27.77% | 42.12% | 40.37% | 44.88% | 45.09% | 45.55% | 47.22% | 44.79% | 46.02% | 47.34% | 32.74% | 31.94% |
| EBITDA Growth % | 7.88% | 26.49% | -5.43% | -9.23% | -14.3% | 23.81% | -10.59% | 1.77% | -25.59% | 45.46% | -33.63% | 31.83% | 22.93% | 26.33% | 2.62% | 33.63% | 56.94% | -29.54% | 6.53% | -22.83% | 33.23% | 24.89% | 32.72% | 1.56% | 14.03% | -6.18% | -13.93% | 111.43% | 261.86% | 93.79% | - |
| D&A (Non-Cash Add-back) | 136.2M | 170.7M | 42.4M | 61.3M | 67.4M | 52.3M | 159.6M | 165.8M | 136.8M | 106.7M | 129.7M | 134.2M | 139.1M | 142.2M | 214.1M | 112.7M | 74.1M | 45.68M | 46.62M | 45.35M | 39M | 34.92M | 28.35M | 25.69M | 23.96M | 38.46M | 31.02M | 26.1M | 20.1M | 8.6M | 9M |
| EBIT | 1.39B | 1.32B | 1.06B | 1.22B | 1.86B | 1.25B | 600.7M | 384.2M | 794.2M | 1.15B | 1.07B | 1.18B | 1.12B | 982.7M | 578.2M | 553.8M | 469.9M | 323.81M | 224.95M | 335.06M | 453.91M | 335.06M | 267.88M | 197.51M | 195.83M | 154.29M | 174.44M | 212.6M | 92.8M | 22.6M | 7.1M |
| Net Interest Income | -115.8M | -53.4M | -133.3M | -123.8M | -114.4M | -111.4M | -92.3M | -76.2M | -80.6M | -87.8M | -91.7M | -48.6M | -106.7M | -119M | -56.9M | -101.1M | -68.19M | -53.23M | -81.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 25M | 83.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40.3M | 0 | 0 | 26.1M | 0 | 22.91M | 24.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 140.8M | 136.5M | 133.3M | 123.8M | 114.4M | 111.4M | 92.3M | 76.2M | 80.6M | 87.8M | 91.7M | 88.9M | 106.7M | 119M | 83M | 101.1M | 91.1M | 78.13M | 81.42M | 76.92M | 58.8M | 37.43M | 31.73M | 22.98M | 25.22M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 1.25B | 1.19B | 923.2M | 1.09B | 1.75B | 1.14B | 508.4M | 308M | 713.6M | 1.07B | 974.6M | 1.09B | 1.01B | 863.7M | 495.2M | 452.7M | 378.8M | 245.68M | 143.53M | 288.83M | 237.89M | 189.65M | 129.09M | 101.83M | 93.24M | 83.31M | 95.61M | 128.9M | 42.6M | 3M | -1.2M |
| Pretax Margin % | 52.93% | 48.51% | 45.23% | 53.04% | 74.97% | 47.3% | 25.08% | 13.75% | 30% | 46.29% | 44.41% | 43.9% | 40.36% | 39.46% | 27.43% | 26.55% | 27.89% | 29.18% | 12.39% | 21.08% | 20.33% | 20.69% | 19.56% | 20.57% | 19.32% | 20.41% | 20.84% | 24.85% | 17.86% | 3.15% | -2.38% |
| Income Tax | 301.4M | 282.3M | 182.6M | 185.3M | 358.3M | 251M | 81.4M | 2.9M | 181.3M | 58.4M | 235.6M | 263.4M | 227.9M | 194.1M | 83.8M | 93.1M | 91.5M | 32.76M | 11.63M | 106.87M | 86.61M | 70.58M | 51.95M | 41.3M | 37.3M | 33.33M | 38.95M | 56.7M | 17M | 1.4M | 200K |
| Effective Tax Rate % | 24.06% | 23.8% | 19.78% | 16.98% | 20.52% | 22% | 16.01% | 0.94% | 25.41% | 5.47% | 24.17% | 24.15% | 22.49% | 22.47% | 16.92% | 20.57% | 24.16% | 13.33% | 8.1% | 37% | 36.41% | 37.22% | 40.24% | 40.56% | 40% | 40% | 40.74% | 43.99% | 39.91% | 46.67% | -16.67% |
| Net Income | 754.7M | 716.6M | 511.6M | 672.9M | 1.15B | 565.7M | 202.2M | 15.7M | 243.6M | 689.5M | 472.8M | 509.5M | 433.9M | 360.5M | 174M | 164.9M | 138.6M | 59.47M | -1.32M | 181.96M | 151.28M | 119.07M | 77.15M | 60.53M | 55.94M | 49.99M | 56.66M | 72.2M | 25.6M | -8.4M | -2.4M |
| Net Margin % | 31.89% | 29.3% | 25.07% | 32.7% | 49.19% | 23.45% | 9.97% | 0.7% | 10.24% | 29.91% | 21.54% | 20.51% | 17.28% | 16.47% | 9.64% | 9.67% | 10.2% | 7.06% | -0.11% | 13.28% | 12.93% | 12.99% | 11.69% | 12.23% | 11.59% | 12.25% | 12.35% | 13.92% | 10.73% | -8.81% | -4.76% |
| Net Income Growth % | 73.85% | 40.07% | -23.97% | -41.28% | 102.56% | 179.77% | 1187.9% | -93.55% | -64.67% | 45.83% | -7.2% | 17.42% | 20.36% | 107.18% | 5.52% | 18.98% | 133.05% | 4588.53% | -100.73% | 20.28% | 27.05% | 54.34% | 27.46% | 8.2% | 11.91% | -11.77% | -21.53% | 182.03% | 404.76% | -250% | - |
| Net Income (Continuing) | 951.3M | 904M | 740.6M | 906.1M | 1.39B | 890.1M | 427M | 305.1M | 532.3M | 1.01B | 739M | 827.2M | 767.4M | 669.6M | 411.4M | 359.6M | 287.3M | 212.92M | -61.83M | 181.96M | 151.28M | 119.07M | 77.15M | 60.53M | 55.94M | 49.99M | 56.66M | 72.2M | 25.6M | 1.6M | -1.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.16B | 1.18B | 1.3B | 1.38B | 1.41B | 1.6B | 1.21B | 1.48B | 1.51B | 1.57B | 1.48B | 1.54B | 1.66B | 1.65B | 1.43B | 1.09B | 981.6M | 372.03M | 210.91M | 322.03M | 270.23M | 145.16M | 87.38M | 40.79M | 30.5M | 35.08M | 26.68M | 58.8M | 24.15M | 16.5M | 3.5M |
| EPS (Diluted) | 27.44 | 22.74 | 15.13 | 17.42 | 25.35 | 13.05 | 4.33 | 0.31 | 4.52 | 12.03 | 8.57 | 9.28 | 8.01 | 6.55 | 3.28 | 3.11 | 2.81 | 1.38 | -0.03 | 4.55 | 3.74 | 2.81 | 2.02 | 1.05 | 1.65 | 1.47 | 1.66 | 2.12 | 0.55 | -0.60 | -0.16 |
| EPS Growth % | 94.03% | 50.3% | -13.15% | -31.28% | 94.25% | 201.39% | 1296.77% | -93.14% | -62.43% | 40.37% | -7.65% | 15.86% | 22.29% | 99.7% | 5.47% | 10.68% | 103.62% | 4700% | -100.66% | 21.66% | 33.1% | 39.11% | 92.38% | -36.36% | 12.24% | -11.45% | -21.7% | 285.45% | 191.67% | -275% | - |
| EPS (Basic) | - | 25.18 | 16.45 | 19.18 | 29.77 | 13.65 | 4.34 | 0.31 | 4.54 | 12.30 | 8.73 | 9.49 | 8.22 | 6.79 | 3.36 | 3.18 | 2.92 | 1.44 | -0.03 | 6.18 | 4.83 | 3.54 | 2.57 | 1.27 | 1.69 | 1.51 | 1.69 | 2.17 | 0.97 | -0.60 | -0.16 |
| Diluted Shares Outstanding | 27.5M | 33M | 36.1M | 42.2M | 49M | 44.8M | 46.7M | 50.6M | 53.8M | 58.6M | 57M | 57.2M | 58.4M | 56.7M | 53M | 53M | 49.4M | 43.33M | 38.21M | 42.4M | 45.16M | 44.69M | 39.64M | 60.17M | 33.87M | 34.1M | 34.12M | 34.04M | 46.61M | 14.06M | 14.99M |
| Basic Shares Outstanding | 26.8M | 28.5M | 31.1M | 35.1M | 38.5M | 41.5M | 46.5M | 50.5M | 53.6M | 56M | 54.2M | 54.3M | 55M | 53.1M | 51.7M | 51.8M | 47.43M | 41.39M | 38.21M | 29.46M | 31.29M | 33.67M | 29.99M | 47.8M | 33.03M | 33.2M | 33.46M | 33.27M | 26.37M | 14.06M | 14.99M |
| Dividend Payout Ratio | - | 0.14% | 0.27% | 0.22% | 0.14% | 0.3% | 8.31% | 415.92% | 26.44% | 6.51% | - | - | - | - | - | - | 72.91% | 201.02% | - | - | - | - | - | - | - | - | - | - | - | - | - |
Active management fee compression
As reported in recent financial statements, MGRB's gross margin experienced significant fluctuations, peaking at 83.3% in 2025Q4 before retreating, suggesting that the firm's reliance on performance-based fees introduces inherent cyclicality that complicates the assessment of underlying structural profitability across its diverse boutique affiliate portfolio.
The wide variance in gross margins, ranging from 46.5% to 83.3% over the last ten quarters, indicates that the company's profitability is highly sensitive to market-driven performance fees rather than just stable management fees. Investors should monitor whether the recent margin expansion reflects a sustainable shift toward higher-fee alternative strategies or merely a temporary spike in investment success.
Based on the provided income statement data, operating margins have fluctuated between 14.2% and 38.5% over the last ten quarters, indicating that the company struggles to maintain consistent operating leverage as revenue scales, likely due to the variable nature of affiliate-level compensation and profit-sharing arrangements.
The lack of a clear, linear relationship between revenue growth and operating income suggests that the firm's cost structure is heavily weighted toward variable compensation. This structure protects the parent company during market downturns but limits the potential for significant margin expansion during periods of strong AUM growth.
According to the quarterly income statement data, stock-based compensation reached a high of $68.6 million in 2025Q2, which significantly impacts the quality of reported net income and complicates the reconciliation between GAAP earnings and the actual cash available for distribution to shareholders.
The substantial and inconsistent levels of stock-based compensation suggest that GAAP net income may not be the most reliable metric for evaluating the company's true economic performance. Analysts should focus on adjusted earnings metrics that account for these non-cash charges to better understand the underlying cash-generating capacity of the partnership model.
While the partnership model provides unique access to alpha-generating boutiques, the persistent volatility in quarterly net income, which swung from $72.4 million to $347.6 million in 2025, warrants investigation into whether the firm's traditional equity strategies are facing long-term structural decline due to passive migration.
Short-term earnings spikes may mask a broader trend of fee compression within the active management industry. If the company cannot successfully pivot its AUM mix toward less sensitive alternative assets, the current valuation may be vulnerable to a downward re-rating as the market discounts the durability of its traditional equity fee streams.
Quick answers to the most common questions about buying MGRB stock.
Affiliated Managers Group, Inc. (MGRB) is profitable, generating $716.6M in net income for the fiscal year ending 2025 with a net profit margin of 29.3%.
Affiliated Managers Group, Inc. (MGRB) reported an operating income of $776.8M, resulting in an operating profit margin of 31.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Affiliated Managers Group, Inc. (MGRB) generated $2.10B in gross profit for the year, representing a gross profit margin of 86.0%. This demonstrates the company's core pricing power and production efficiency.