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Introduction & Market Context
Fiera Capital Corporation (TSX:FSZ) presented its Q2 2025 results on August 8, 2025, revealing a mixed performance characterized by declining assets under management (AUM) but improved profitability metrics. The company’s stock remained unchanged at $6.62 following the announcement, maintaining its position within the 52-week range of $5.50 to $10.92.
The asset management firm, which offers a 5.64% dividend yield and has delivered a 27.56% year-to-date return, reported an earnings per share (EPS) beat but fell short on revenue expectations. This performance comes amid challenging global market conditions that have impacted the broader asset management industry.
Quarterly Performance Highlights
Fiera Capital reported total AUM of $160.5 billion as of June 30, 2025, representing a decrease of $1.1 billion (0.7%) quarter-over-quarter and $6.6 billion (3.9%) year-to-date. Despite this overall decline, the company achieved gross new mandates of $1.7 billion, its highest level since Q1 2023.
As shown in the following chart of quarterly highlights, the company delivered mixed financial results with total revenues of $163.0 million (down 1% year-over-year), while adjusted EBITDA improved to $45.7 million (up 1%), with the margin expanding to 28%:
The company’s AUM decline was primarily driven by outflows from sub-advised AUM and negative net contributions, partially offset by new mandates. Excluding the wind-down of certain Canadian equity strategies, total AUM remained flat for the quarter.
As illustrated in this AUM overview, both Public Markets and Private Markets segments experienced changes during the quarter:
Private Markets Growth Story
The standout story in Fiera’s Q2 results was the continued strong performance of its Private Markets segment. This division has shown impressive growth with a 10% CAGR for AUM and 17% for revenues, making it an increasingly important contributor to the company’s overall performance.
The following chart illustrates the continuous growth trend in Private Markets:
Private Markets revenues reached $63 million in Q2 2025, up $7 million from the previous year. This segment now represents approximately 29% of total revenues, underscoring its growing importance to Fiera’s business model.
The investment performance of Private Markets strategies has also been strong, with all key strategies producing positive absolute returns:
Investment Performance
Fiera Capital demonstrated strong investment performance across its portfolio, particularly in fixed income assets. The company reported that 89% of fixed income AUM outperformed benchmarks on a trailing 5-year basis, highlighting the strength of its investment strategies in this asset class.
The detailed performance metrics for Public Markets strategies show varying results across different time horizons:
The percentage of assets outperforming benchmarks provides further evidence of Fiera’s investment capabilities, especially in fixed income:
Financial Analysis
Total (EPA:TTEF) revenues for Q2 2025 came in at $163 million, slightly below analyst expectations of $166.57 million and down 1% compared to Q2 2024. The revenue breakdown shows divergent trends between Public and Private Markets segments.
The following chart details the company’s revenue composition:
Public Markets revenues declined to $100 million, down $8 million year-over-year, while Private Markets revenues increased to $63 million, up $7 million from the previous year.
On the profitability front, Fiera reported adjusted EBITDA of $45.7 million, representing a 1% increase year-over-year, with the margin improving to 28% from 27.5%. Selling, General and Administrative Expenses (SG&A) excluding share-based compensation decreased to $117.3 million, contributing to the improved profitability.
The company’s adjusted net earnings and reconciliation are illustrated below:
Fiera Capital reported adjusted net earnings of $27.2 million and diluted adjusted EPS of $0.24, significantly exceeding analyst expectations of $0.18 per share. Net earnings came in at $3.8 million with diluted EPS of $0.03.
The company also executed an $80 million bought deal offering, renewed its Normal Course Issuer Bid (NCIB), and repurchased approximately 1.1 million shares for $6.3 million during the quarter.
Strategic Initiatives and Outlook
Fiera Capital continues to focus on several strategic priorities to drive future growth. These include expanding its Private Markets business, enhancing distribution capabilities, improving investment performance, advancing sustainability initiatives, and increasing profitability.
The company’s progress on these strategic initiatives is summarized in the following slide:
Looking ahead, Fiera aims to achieve consistent investment performance and prioritize client experience. The company is targeting a 30% EBITDA margin and anticipates continued growth in private markets, particularly in agriculture and real estate sectors.
Maxine Menard, Global President and CEO, stated during the earnings call that "Fiera is well positioned for success," emphasizing the company’s strategic focus on private market platforms as a growth catalyst.
The company’s diversified business model is reflected in its AUM breakdown by geography, distribution channel, and asset class:
This diversification provides Fiera with multiple avenues for growth and helps mitigate risks associated with market volatility in specific segments or regions.
Despite the challenges in overall AUM growth, Fiera Capital’s Q2 2025 results demonstrate the company’s ability to improve profitability metrics and deliver strong investment performance, particularly in its growing Private Markets segment. The company’s strategic focus on this high-growth area, combined with cost management initiatives, positions it to navigate the current market environment while building for future growth.
Full presentation:
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