Profitability remains highly sensitive to market cycles, with gross margins fluctuating significantly from a peak of 83.3% in 2025Q4 to 81.0% in 2026Q1.
| 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% | - | - | - | - | - | - | - | - | - | - | - | - | - |
Market beta sensitivity
As reported in recent financial statements, MGRE's gross margin experienced significant fluctuations, peaking at 83.3% in 2025Q4 before retreating, which suggests that the firm's profitability is highly sensitive to the specific mix of affiliate performance fees and market-driven asset valuations across its diverse boutique investment portfolio.
The wide variance in gross margins, ranging from 46.5% to 83.3% over the last ten quarters, indicates that the firm's profitability is not purely recurring but heavily reliant on performance-based revenue. Investors should monitor whether this margin instability reflects a structural shift in the affiliate base or merely the cyclical nature of performance fee recognition.
Based on the provided income statement data, MGRE's operating margin has fluctuated between 14.2% and 38.5%, suggesting that the firm struggles to maintain consistent operating leverage as SG&A expenses do not always scale proportionally with the volatility observed in the firm's quarterly gross profit generation.
While the firm maintains a lean corporate structure, the lack of a clear, upward trend in operating margins despite revenue growth suggests that affiliate support costs and compensation structures may be absorbing potential efficiency gains. This inconsistency warrants further investigation into the fixed versus variable nature of the firm's overhead.
According to the quarterly income statement data, MGRE's net income is frequently impacted by significant stock-based compensation charges, which reached $68.6M in 2025Q2, potentially obscuring the underlying cash-generative capacity of the firm's multi-affiliate business model for investors evaluating true economic performance and shareholder dilution.
The substantial quarterly variation in stock-based compensation suggests that management's incentive alignment is highly sensitive to short-term performance metrics. Analysts should be cautious of relying on GAAP net income, as these non-cash charges significantly alter the reported EPS and may mask the true cost of retaining key boutique talent.
As indicated by the historical income statement trends, MGRE's revenue remains susceptible to market-driven cycles, with recent quarterly performance showing that the firm's reliance on active management fees may be increasingly vulnerable to the broader industry shift toward lower-cost passive investment vehicles and fee compression.
Short-sellers may focus on the firm's inability to consistently grow revenue during periods of market volatility, which suggests that the boutique model may not be as insulated from secular industry headwinds as previously assumed. The firm's long-term viability appears contingent on its ability to pivot toward higher-margin, stickier alternative assets.
Quick answers to the most common questions about buying MGRE stock.
Affiliated Managers Group, Inc. (MGRE) 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. (MGRE) 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. (MGRE) 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.