AMG increased the conversion rate of its 5.15% junior convertible trust preferred securities due 2037, effective immediately. The rate rose from 0.2558 to 0.2582 common shares per $50 of preferred security, lowering the conversion price from $195.4652 to $193.6483 per share. The change is a routine adjustment under the indenture that accounts for dividends paid on the company’s common stock.
The adjustment was triggered by the quarterly cash dividend that AMG paid on common shares since the fourth quarter of 2019, with an ex‑dividend date of November 13, 2025. By incorporating the dividend accrual into the conversion calculation, the company reduces the price at which preferred holders can convert, effectively signaling confidence in the share price trajectory while preserving the preferred holders’ relative value.
The new conversion rate increases the number of shares that can be obtained for each $50 of preferred security, which in turn raises the potential dilution for existing shareholders if the preferred securities are converted. Because the adjustment is a financing event rather than a routine dividend, it is material to investors and to the company’s capital structure.
In the same quarter, AMG reported earnings that fell short of consensus. Earnings per share of $4.82 missed analyst expectations of $5.87 by 17.9%, while revenue of $516.4 million missed expectations of $544.64 million by 5.2%. A non‑GAAP EPS of $6.10 beat estimates by $0.22, reflecting the company’s use of adjusted metrics. The earnings miss can be attributed to weaker demand in certain business segments and higher operating expenses, whereas the non‑GAAP beat highlights the company’s ability to manage costs and maintain profitability on a non‑GAAP basis.
Analysts had projected EPS of $5.87 and revenue of $544.64 million for the quarter. The actual results fell short of those expectations, underscoring the challenges AMG faces in maintaining revenue growth while managing cost pressures. Despite the miss, the company’s management has maintained a positive outlook, citing continued confidence in its long‑term strategy and the strength of its asset‑management platform.
AMG manages approximately $804 billion in assets under management as of September 30, 2025, positioning it as a strategic partner to leading independent investment‑management firms worldwide. The conversion‑rate adjustment, coupled with the earnings miss, illustrates the company’s balancing act between financing flexibility and operational performance as it navigates a competitive asset‑management landscape.
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