Fiera Capital Reports First Quarter 2026 Results

Fiera Capital Reports First Quarter 2026 Results Canada NewsWire MONTREAL, May 8, 2026 MONTREAL, May 8, 2026 /CNW/ - Fiera Capital Corporation (TSX: FSZ) ("Fiera Capital" or the "Company"), a leading independent asset management firm, today announced its financial results for the first quarter ended March 31, 2026. Financial references are in Canadian dollars unless otherwise indicated. (in $ thousands except where otherwise indicated)      Q1     Q4      Q1 2026 2025 2025 End of period AUM1 (in $ billions) 160.2 164.1 161.6 Average AUM(in $ billions) 163.3 166.4 164.4 IFRS Financial Measures Total revenues 153,311 180,062 162,871 Base management fees 147,164 153,950 154,542 Performance fees — 13,505 183 Commitment and transaction fees 1,347 7,667 2,440 Share of earnings in joint ventures and associates 947 598 2,595 Other revenues 3,853 4,342 3,111 Net earnings 2 2,833 7,667 21,789 Non-IFRS Financial Measures Adjusted EBITDA 3 42,707 54,672 43,403 Adjusted EBITDA margin 3 27.9 % 30.4 % 26.6 % Adjusted net earnings 2,3 23,532 29,892 25,426 LTM Free Cash Flow 3 95,609 78,948 86,674 Notes: Refer to the "Footnotes" section of this press release.  Certain totals, subtotals and percentages may not reconcile due to rounding. "The first quarter of 2026 was marked by heightened market volatility in the month of March, resulting in market losses which have already reversed in the second quarter to-date. Against this backdrop, we remained disciplined in executing on our strategic priorities and supporting clients through uncertain markets" said Maxime Ménard, Global President and Chief Executive Officer. "Our Private Markets platform continued to be a source of strength, with sustained momentum in our market leading Canadian core real estate strategy. Public markets volatility underscores the value of our Private Markets platform, offering clients a broad suite of strategies that enhance portfolio diversification and provide a natural hedge against inflation." "We remained disciplined in our approach to cost containment during the quarter, with SG&A declining 7% year-over-year. As a result, we were able to deliver relatively stable adjusted EBITDA and year-over-year margin expansion despite revenue headwinds" said Lucas Pontillo, Executive Director, Global Chief Financial Officer and Head of Corporate Strategy. "Dividends paid were comfortably below free cash flow for the trailing twelve months, allowing us to return additional capital to shareholders through $3.2 million of share repurchases during the quarter. The Board of Directors has approved a dividend of 10.8 cents per share, payable on June 18, 2026." Assets Under Management (in $ millions, unless otherwise indicated) By Platform December 31, 2025 New Lost Net  Contributions Net Organic Growth4 Market and  Other5 Strategic6 March 31, 2026 Public Markets, excluding sub-advised AUM 108,171 339 (945) (213) (819) (886) (650) 105,816 Public Markets sub- advised AUM 33,938 — (9) (503) (512) (1,319) — 32,107 Public Markets - Total         142,109 339 (954) (716) (1,331) (2,205) (650) 137,923 Private Markets 21,971 140 (23) (114) 3 268 — 22,242 Total 164,080 479 (977) (830) (1,328) (1,937) (650) 160,165 By Distribution Channel December 31, 2025 New Lost Net  Contributions Net Organic Growth4 Market and  Other5 Strategic6 March 31, 2026 Institutional 93,641 351 (611) 6 (254) (731) (5) 92,651 Financial Intermediaries 56,728 — (86) (566) (652) (935) (644) 54,497 Private Wealth 13,711 128 (280) (270) (422) (271) (1) 13,017 Total 164,080 479 (977) (830) (1,328) (1,937) (650) 160,165 AUM decreased by $3.9 billion or 2.4% in Q1 2026 to end the quarter at $160.2 billion. The decline was primarily due to a negative market impact of $2.9 billion, negative net organic growth from Public Markets of $1.3 billion, and the wind down of the Canadian Equity Small Cap Core Strategy, which reduced AUM by $0.7 billion. These decreases in AUM were partly offset by a positive foreign exchange impact of $1.0 billion. In Public Markets, negative net organic growth was $1.3 billion and included $0.5 billion from sub-advised AUM from net contributions related to ongoing client relationships. Net organic growth from Private Markets was nominal as new mandates were offset by return of capital. First Quarter Financial Highlights Revenue of $153.3 million decreased by $26.8 million or 14.9% compared to Q4 2025, primarily from performance fees crystallized in the prior quarter, lower base management fees from Public Markets, and lower commitment and transaction fees. Revenue decreased by $9.6 million or 5.9% compared to Q1 2025, primarily due to lower base management fees from sub-advised mandates, lower share of earnings in joint ventures and associates, and lower commitment and transaction fees. Adjusted EBITDA of $42.7 million decreased by $12.0 million or 21.9% compared to Q4 2025, primarily due to the timing of performance fees crystallized in the prior quarter, partly offset by lower employee compensation costs and sub-advisory fees. Adjusted EBITDA decreased by $0.7 million or 1.6% compared to Q1 2025, primarily due to lower revenues, largely offset by lower employee compensation costs and sub-advisory fees. Adjusted net earnings of $23.5 million decreased by $6.4 million, or 21.4% compared to Q4 2025, primarily due to lower revenues, partly offset by lower selling, general, and administrative ("SG&A") expenses, excluding share-based compensation, lower income tax expense, and lower interest expense from debentures. Adjusted net earnings decreased by $1.9 million or 7.5% compared to Q1 2025, primarily due to lower revenues and higher income tax expense, partly offset by lower SG&A expenses, excluding share-based compensation. Net earnings attributable to the Company's shareholders decreased by $4.9 million or 63.6% compared to Q4 2025, primarily due to lower revenues, partly offset by lower SG&A expenses, lower income tax expense, and lower interest expense from debentures. Net earnings attributable to the Company's shareholders decreased by $19.0 million or 87.2% compared to Q1 2025. The decrease was primarily due to a $12.7 million gain on revaluation of an investment recorded in Q1 2025 related to the acquisition of a controlling interest in a real estate investment platform, lower revenues, and higher restructuring, acquisition related and other costs. These decreases were partly offset by lower SG&A expenses.   LTM Free Cash Flow of $95.6 million increased by $16.7 million or 21.2% compared to Q4 2025. The increase was primarily due to lower dividends paid to non-controlling interest, favourable changes in working capital, and lower interest paid on long-term debt. LTM free cash flow increased by $8.9 million or 10.3% compared to the corresponding period of 2025, mainly due to lower dividends paid to non-controlling interest and lower lease payments. Net debt3 increased by $36 million to $700 million at the end of Q1 2026 compared to $664 million at the end of Q4 2025, and Net debt ratio3 increased to 3.62x from 3.42x over the same period. Net debt decreased by $3 million compared to Q1 2025, and Net debt ratio was flat over the same period.  The Company repurchased 557,505 Class A Shares for total consideration of $3.2 million. Subsequent Events Dividend Declared On May 7, 2026, the Board declared a quarterly dividend of $0.108 per Class A Share and Class B Share, payable on June 18, 2026 to shareholders of record at the close of business on May 21, 2026. The dividend is an eligible dividend for income tax purposes. Refinancing of 6.0% Debenture with Fonds de solidarité FTQ On May 1, 2026, the Company completed a private placement of a senior subordinated unsecured debenture in a principal amount of $100 million to Fonds de solidarité FTQ issued at par, concurrently with the redemption of the 6.0% senior subordinated unsecured debenture due June 30, 2027, previously issued to Fonds de solidarité FTQ, at its principal amount of $100 million. Additional details relating to the Company's operating results can be found in the Company's Management's Discussion and Analysis for the Three-Month Period ended March 31, 2026 available on our Investor Relations web page under Financial Documents- Quarterly Results - Management's Discussion and Analysis. Conference Call Live Fiera Capital will hold a conference call at 10:00 a.m. (ET) on Friday, May 8, 2026, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1-800-990-4777 (toll-free) and 1-289-819-1299 from outside North America. The conference call will also be accessible via webcast on the Investor Relations section of Fiera Capital's website under Events and Presentations. Replay An audio replay of the call will be available until May 15, 2026 by dialing 1-888-660-6345 (North American toll free), access code 90515 followed by the number sign (#).   The webcast will remain available for three months following the call and can be accessed on the Investor Relations section of Fiera Capital's website under Events and Presentations. Footnotes AUM is defined as the total market value of all assets managed or sub-advised by the Company, including strategies offered to Fiera Capital's clients but managed by third parties. For an explanation of the composition of AUM, please refer to the section entitled "Results from Operations and Overall Performance – AUM and Revenues" of the Management's Discussion and Analysis for the Three-Month Period ended March 31, 2026. Attributable to the Company's shareholders. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Free Cash Flow, Net debt and Net debt ratio are non-IFRS measures.  Refer to the "Non-IFRS Measures" section of this press release. Net Organic Growth represents the sum of new mandates, lost mandates and net contributions. Market and Other includes the impact of market changes, income distributions and foreign exchange.  Relates to the wind down of the Canadian Equity Small Cap Core strategy in Q1 2026. Non-IFRS Measures Earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (basic and diluted), Last Twelve Months ("LTM") Free Cash Flow, Net debt and Net debt ratio are not standardized measures prescribed by International Financial Reporting Standards ("IFRS"), and are therefore unlikely to be comparable to similar measures presented by other companies. Net debt is the carrying amounts of long-term debt and debentures plus the fair value of cross currency swaps, net of cash and cash equivalents, as reported in the statement of financial position in the consolidated financial statements. We define Net debt ratio as the ratio of Net Debt to LTM Adjusted EBITDA. We have included non-IFRS measures to provide investors with supplemental measures of our operating and financial performance. We believe non-IFRS measures are important supplemental metrics of operating and financial performance because they highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers, many of which present non-IFRS measures when reporting their results. Management also uses non-IFRS measures in order to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and to assess its ability to meet future debt service, capital expenditure and working capital requirements. For a description of the Company's non-IFRS Measures, please refer to page 41 of the Company's Management's Discussion and Analysis for the Three-Month Period ended March 31, 2026 which is available on SEDAR+ at www.sedarplus.ca. For a reconciliation of the Company's non-IFRS Measures, refer to the below tables: Reconciliation to EBITDA and Adjusted EBITDA (in $ thousands except per share data) FOR THE THREE MONTHS ENDED March 31, 2026 December 31, 2025 March 31, 2025 Net earnings 4,736 11,730 23,902 Income tax expense 3,573 6,291 3,679 Amortization and depreciation 11,178 10,803 12,270 Interest on long-term debt and debentures 10,103 12,075 11,389 Interest on lease liabilities, foreign currency revaluation and other financial charges 882 512 433 EBITDA 30,472 41,411 51,673 Restructuring, acquisition related and other costs 9,087 8,790 2,818 Accretion and change in fair value of purchase price obligations and other (290) (107) (932) Share-based compensation 3,531 5,170 2,599 Gain on investments, net (222) (680) (542) Revaluation of an investment related to an acquisition — — (12,730) Other expenses (income) 129 88 517 Adjusted EBITDA 42,707 54,672 43,403 Adjusted EBITDA Margin 27.9 % 30.4 % 26.6 % Per share basic 0.40 0.51 0.40 Per share diluted 0.38 0.43 0.31 Weighted average shares outstanding - basic (thousands) 106,650 106,699 108,003 Weighted average shares outstanding - diluted (thousands) 111,581 126,609 140,459 Reconciliation to Adjusted Net Earnings (in $ thousands except per share data) FOR THE THREE MONTHS ENDED March 31, 2026 December 31, 2025 March 31, 2025 Net earnings attributable to the Company's shareholders 2,833 7,667 21,789 Amortization and depreciation 11,178 10,803 12,270 Restructuring, acquisition related and other costs 9,087 8,790 2,818 Accretion and change in fair value of purchase price obligations and other, and effective interest on debentures (129) 403 (703) Share-based compensation 3,531 5,170 2,599 Revaluation of an investment related to an acquisition — — (12,730) Other expenses (income) 129 88 517 Tax effect of above-mentioned items (3,097) (3,029) (1,134) Adjusted net earnings 23,532 29,892 25,426 Per share – basic Net earnings1 0.03 0.07 0.20 Adjusted net earnings1 0.22 0.28 0.24 Per share – diluted Net earnings1 0.03 0.07 0.17 Adjusted net earnings1 0.21 0.24 0.20 Weighted average shares outstanding - basic (thousands) 106,650 106,699 108,003 Weighted average shares outstanding - diluted (thousands) 111,581 126,609 140,459 1 Attributable to the Company's shareholders. Free Cash Flow Reconciliation (in $ thousands) FOR THE THREE MONTHS ENDED Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 2026 2025 2025 2025 2025 2024 2024 2024 Cash flow from operations before the impact of working capital 34,323 49,126 45,533 33,647 37,658 47,487 48,589 37,218 Changes in non-cash operating working capital items (48,136) (2,487) 17,462 8,287 (55,639) 4,464 6,187 15,807 Net cash generated by (used in) operating activities (13,813) 46,639 62,995 41,934 (17,981) 51,951 54,776 53,025 Settlement of purchase price obligations — — — — — (937) — (1,500) Proceeds on promissory note 1,281 1,348 1,395 1,406 1,509 1,538 1,502 1,521 Distributions received from joint ventures and associates, net of investments 705 2,682 321 4,061 531 (321) 925 8,137 Dividends to Non-Controlling interest and other (1,933) (6,284) — (1,191) (9,110) — — (6,215) Lease payments (2,567) (2,607) (3,900) (3,851) (3,913) (3,862) (4,727) (3,038) Interest paid on long-term debt and debentures (10,302) (13,313) (7,769) (14,213) (11,814) (10,519) (11,244) (12,775) Other restructuring costs 2,448 4,787 928 2,329 1,873 3,333 1,015 2,685 Acquisition related and other costs1 2,066 — — 27 129 180 — — Free Cash Flow (22,115) 33,252 53,970 30,502 (38,776) 41,363 42,247 41,840 LTM Free Cash Flow 95,609 78,948 87,059 75,336 86,674 87,417 95,215 121,148 1 Excludes non-cash acquisition related charges related to a business combination (refer to Note 5 of the interim condensed consolidated financial statements for the three-month periods ended March 31, 2026 and 2025). Net Debt and Net Debt Ratio Reconciliation (in $ thousands) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 2026 2025 2025 2025 2025 2024 2024 2024 Long-term debt 578,183 522,423 469,204 488,667 577,158 534,447 520,607 535,596 Debentures 176,605 176,443 243,172 242,763 165,168 164,939 164,660 164,441 Fair value of cross currency swaps1                                                                  (5,532) 6,633 (788) 3,622 (2,859) (12,732) (462) (716) Cash and Cash Equivalents (49,225) (41,679) (31,844) (22,924) (36,526) (35,356) (29,904) (30,328) Net Debt 700,031 663,820 679,744 712,128 702,941 651,298 654,901 668,993 LTM AEBITDA 193,396 194,092 192,820 194,180 193,772 195,764 219,985 212,242 Net Debt Ratio 3.62 3.42 3.53 3.67 3.63 3.33 2.98 3.15 1 Refer to the "Financial Instruments" section included in the notes to the interim condensed consolidated financial statements for the three-month periods ended March 31, 2026 and 2025. Forward-Looking Statements This press release contains forward-looking statements relating to future events, or future performance reflecting management's expectations or beliefs regarding future events, including, without limitation, business and economic conditions, outlook and trends, Fiera Capital's growth, results of operations, performance, business prospects and opportunities, objectives, plans and strategic priorities, initiatives such as those related to sustainability, and other statements that do not refer to historical facts. Forward-looking statements may include comments on Fiera Capital's objectives, strategies to achieve these objectives, expected financial results or dividends, and the outlook for the Company's businesses, as well as for the Canadian, American, European, Asian and other global economies. Such forward-looking statements reflect management's current beliefs and are based on factors and assumptions it considers to be reasonable based on information currently available to management. These forward-looking statements may typically be identified by words or expressions such as "assumption", "continue", "estimate", "forecast", "goal", "guidance", "likely", "plan", "objective", "outlook", "potential", "foresee", "project", "strategy", "target", and other similar words or expressions or future or conditional verbs (including in their negative form) such as "aim", "anticipate", "believe", "could", "expect", "foresee", "intend", "may", "plan", "predict", "seek", "should", "strive" and "would". Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, which makes it possible for actual results or events to differ materially from management's expectations and that predictions, forecasts, projections, expectations, conclusions or statements will not prove to be accurate. As a result, the Company does not guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company's objectives, strategies, expectations, plans and business outlook as well as the anticipated operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes. A number of important risk factors and uncertainties, many of which are beyond Fiera Capital's control, could cause actual events, performance or results to differ materially from the predictions, forecasts, projections, expectations, conclusions or statements expressed in such forward-looking statements which include, without limitation, risks related to: investment performance and investment of AUM, AUM concentration related to strategies sub-advised by PineStone Asset Management Inc., key employees, the asset management industry and competitive pressure, reputational damage, litigation, regulatory compliance, client commitment and redemption, reliance on information technology and telecommunications systems and potential failure of or disruption to those systems, employee misconduct or error, insurance coverage, third-party relationships, conflicts of interest, privacy issues, investment valuation and model, limitations of enterprise risk management, environmental and social issues, acquisitions and disposals, the pace of the growth in Fiera Capital's AUM, indebtedness, market rates and prices, inflation, interest rate fluctuations, recession, credit, liquidity, taxation, ownership structure and potential dilution, and other risks and uncertainties described in the Annual Information Form of the Company for the year ended December 31, 2025 under the heading "Risk Factors and Uncertainties" or discussed in other materials filed by the Company with applicable securities regulatory authorities from time to time which are available on SEDAR+ at www.sedarplus.ca.  Information contained in forward-looking statements is based upon certain material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection, including, without limitation: management's perceptions of historical trends, current conditions and expected future developments, the successful completion of strategic transactions, acquisitions, divestitures or other growth or optimization strategies, the accuracy of estimates, assumptions and judgments under applicable accounting policies, and the absence of any material change in accounting standards and policies applicable to the Company, the absence of material variation in interest rates, the absence of any significant changes to the Company's effective tax rate, investment returns being in line with the Company's expectations and consistent with historical trends, the absence of unexpected changes in the economic, competitive, asset management, legal or regulatory environment or actions by regulatory authorities that could have a material impact on the business or operations of the Company or its business partners, the absence of significant fluctuations in the exchange rate between the Canadian dollar and other currencies (including the U.S. dollar and the pound sterling), and the non-materialization of risk factors or other factors mentioned above or discussed elsewhere in this press release or discussed in other materials filed by the Company with applicable securities regulatory authorities from time to time which are available on SEDAR+ at www.sedarplus.ca that could influence the Company's performance or results. Readers are cautioned that the preceding list of risk factors and uncertainties is not exhaustive and that other risks and uncertainties could affect the Company. Additional risks and uncertainties, including those not currently known to Fiera Capital or currently deemed immaterial, could also have a material adverse effect on the Company's business, financial condition, liquidity, operations or financial results. When relying on forward-looking statements in this press release, or in any other disclosure made by Fiera Capital, investors and others should carefully consider the risks and uncertainties listed above, along with other potential events that could affect the Company's financial condition, operations, performance or results. Unless otherwise indicated, forward-looking statements in this press release describe management's expectations as at the date hereof and, accordingly, are subject to change after that date. Fiera Capital does not undertake to update or revise any forward-looking statement, whether written or oral, that may be made from time to time by it or on its behalf in order to reflect new information, future events or circumstances or otherwise, except as required by applicable law.   About Fiera Capital Corporation Fiera Capital is a leading independent asset management firm with a growing global presence. The Company delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients across North America, Europe and key markets in Asia and the Middle East. Fiera Capital's depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of investment management science to create sustainable wealth for clients. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange.  Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), Hong Kong (SAR) and Abu Dhabi (ADGM). Each affiliated entity (each an "Affiliate") of Fiera Capital only provides investment advisory or investment management services or offers investment funds in the jurisdictions where the Affiliate is authorized to provide services pursuant to the relevant registrations, an exemption from such registrations and/or the relevant product is registered or exempt from registration. Fiera Capital does not provide investment advice to U.S. clients or offer investment advisory services in the U.S. In the U.S., asset management services are provided by Fiera Capital's Affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC) or exempt from registration. Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult https://www.fieracapital.com/en/registrations-and-authorities/. Additional information about Fiera Capital, including the Company's Annual Information Form, is available on SEDAR+ at www.sedarplus.ca. Disclosure The information presented is for informational purposes only and is not intended to be, and should not be construed as, an offer to sell, or the solicitation of an offer to buy, any investment product. The information presented in this document, in whole or in part, is not investment, tax, legal or other advice, nor does it consider the investment objectives or financial circumstances of any investor. SOURCE Fiera Capital Corporation View original content: http://www.newswire.ca/en/releases/archive/May2026/08/c7231.html Contact: For more information: Analysts and investors: Natalie Medak, Director, Investor Relations, Fiera Capital Corporation, 416 884-4236, [email protected]