AB

Business Context and Reporting Period

Company: AllianceBernstein Holding L.P. (AB Holding)

Reporting Period: Quarter ended March 31, 2026

Business Overview: AB Holding is a publicly-traded partnership whose principal source of income and cash flow is its investment in AllianceBernstein L.P. (AB). AB provides global investment management services across institutional, retail, and private wealth segments. As of March 31, 2026, AB Holding held a 31.4% interest in AB, while Equitable Holdings, Inc. (EQH) held approximately 68.0%.

Key Financial Metrics

Liquidity: AB Holding has no cash and cash equivalents on its balance sheet. It operates as a pass-through entity, distributing all Available Cash Flow received from AB to unitholders. Management states there is no liquidity risk as distributions are paid only to the extent of cash received from AB.

Material Changes vs. Prior Period

• Net Income Growth: Net income increased 15.1% year-over-year, driven by a 33.8% increase in net income attributable to AB Unitholders ($295.5 million in Q1 2026 vs. $220.8 million in Q1 2025).
• Ownership Dilution: The increase in AB Holding's net income was partially offset by a decrease in its weighted average equity ownership interest in AB, which fell from 37.5% in Q1 2025 to 31.2% in Q1 2026.
• Tax Efficiency: The effective tax rate decreased to 7.6% from 10.5%, resulting in lower total income taxes despite higher underlying income.
• Cash Flow Decline: Net cash provided by operating activities decreased by $26.8 million, primarily due to a $30.1 million reduction in cash distributions received from AB.

Guidance, Outlook, and Risks

Management Commentary: Management utilizes non-GAAP measures, including "adjusted net income," to evaluate performance. Adjusted net income for Q1 2026 was $76.7 million ($0.83 per unit), compared to $88.2 million ($0.80 per unit) in Q1 2025. The declared distribution of $0.83 per unit aligns with the adjusted net income per unit.

Outlook: Management anticipates that Available Cash Flow will continue to be based on adjusted net income per unit. The company expects to meet financial obligations through cash flows from its investment in AB.

Risks and Contingencies:

• Market Dependence: Cash flow is entirely dependent on AB's performance and capital market conditions.
• Legal Proceedings: AB faces various regulatory inquiries and litigation. While management does not expect a material adverse effect, outcomes are unpredictable.
• Tax Status: AB Holding must maintain its status as a publicly-traded partnership (PTP) to avoid corporate income tax. Entering a substantial new line of business could jeopardize this status.
• Technology Initiative: The company is replacing investment management technology, which carries execution risk regarding cost and timeline.

Investor Verification Checklist

• Ownership Percentage: Verify the impact of the declining ownership stake in AB (31.2% vs. 37.5% prior year) on future earnings attribution.
• AB Performance: Review the underlying performance of AllianceBernstein L.P. (AB), as AB Holding's results are a direct pass-through of AB's cash distributions.
• Non-GAAP Reconciliations: Examine the specific non-GAAP adjustments made to arrive at "adjusted net income," which drives the quarterly distribution.
• Share Count: Monitor changes in units outstanding due to repurchases for incentive compensation plans versus new issuances.
• Tax Rate Volatility: Assess the stability of the effective tax rate, which is influenced by the mix of qualifying revenues and ownership interest.