AssetMark Financial Holdings Inc (AMK, Financial) announced its financial results for the third quarter ended September 30, 2023, on November 6, 2023. The company reported a net income of $38.4 million, or $0.52 per share, and an adjusted net income of $46.0 million, or $0.62 per share, on total revenue of $190.5 million. The company's platform assets increased by 25.5% year-over-year to $99.6 billion, despite a quarter-over-quarter decrease of 1.2% due to negative market impact net of fees of $2.7 billion.
Financial and Operational Highlights
AssetMark's adjusted EBITDA for the quarter was $66.5 million, or 34.9% of total revenue. The company reported year-to-date annualized net flows as a percentage of beginning-of-year platform assets at 7.1%. Over 3,400 new households and 158 new producing advisors joined the AssetMark platform during the third quarter, bringing the total number of advisors to over 9,300 and investor households to over 251,000 as of September 30, 2023.
Company's Performance
AssetMark CEO Michael Kim commented on the company's performance, stating,
The third quarter was another record quarter for AssetMark, highlighted by all-time highs across many financial and operating metrics. We realized our sixth straight quarter of record adjusted EBITDA, while also expanding margins 90 bps year-over-year to a record 34.9%. Simply put, the results for the third quarter were excellent, and we feel we are well on track for the best year in our company’s history."
Financial Tables
The company's total revenue for the quarter was $190.5 million, a 23.1% increase from the same period last year. The net income margin was 20.1%, a 60 bps increase from the previous year. The company's adjusted EBITDA margin was 34.9%, a 90 bps increase from the previous year.
As of September 30, 2023, the company had $99.6 billion in platform assets, a 25.5% increase from the same period last year. The company also reported an 18.7% annualized production lift from existing advisors for the third quarter, indicating that advisors continued to grow organically and increase wallet share on the platform.
Looking Ahead
AssetMark remains focused on the continued execution of its strategy and three long-term priorities: hyper growth, accelerated capital deployment, and enhanced scalability, which the company believes will create continued value for its advisors, their clients, and its shareholders.
Explore the complete 8-K earnings release (here) from AssetMark Financial Holdings Inc for further details.
