Acadian Asset Management Inc.

Previous wording

•U.S. GAAP Results of Operations for the Three Months Ended March 31, 2025 and 2024 includes an explanation of changes in our U.S. GAAP revenue, expense and other items for the three months ended March 31, 2025 and 2024, as well as key U.S. GAAP operating metrics.

Current wording

•U.S. GAAP Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024 includes an explanation of changes in our U.S. GAAP revenue, expense and other items for the three and six months ended June 30, 2025 and 2024, as well as key U.S. GAAP operating metrics.

Previous wording

•Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis includes an explanation of the key differences between U.S. GAAP net income and ENI, the key measure management uses to evaluate our performance. This section also provides a reconciliation between U.S. GAAP net income attributable to controlling interests and ENI for the three months ended March 31, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses. This section also provides key non-GAAP operating metrics. In addition, this section provides segment analysis for our business segment.

Current wording

•Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis includes an explanation of the key differences between U.S. GAAP net income and ENI, the key measure management uses to evaluate our performance. This section also provides a reconciliation between U.S. GAAP net income attributable to controlling interests and ENI for the three and six months ended June 30, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses. This section also provides key non-GAAP operating metrics. In addition, this section provides segment analysis for our business segment.

Previous wording

•Capital Resources and Liquidity discusses our key balance sheet data. This section discusses Cash Flows from the business; Adjusted EBITDA; Future Capital Needs; Borrowings and Long-Term Debt. The discussion of Adjusted EBITDA includes an explanation of how we calculate Adjusted EBITDA and a reconciliation of U.S. GAAP net income attributable to controlling interests to Adjusted EBITDA.

Current wording

•Capital Resources and Liquidity discusses our key balance sheet data. This section discusses Cash Flows from the business; Adjusted EBITDA; Future Capital Needs; Borrowings and Long-Term Debt; Other Compensation Liabilities. The discussion of Adjusted EBITDA includes an explanation of how we calculate Adjusted EBITDA and a reconciliation of U.S. GAAP net income attributable to controlling interests to Adjusted EBITDA.

Previous wording

Our profitability is affected by a variety of factors including the level and composition of our average assets under management, or AUM, fee rates charged on AUM and our expense structure. We earn management fees based on assets under management. The majority of our management fees are calculated based on average AUM (calculated on either a daily or monthly basis) with the remainder of our management fees calculated based on period-end AUM. Changes in the levels of our AUM are driven by market investment performance and net client cash flows. We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed required returns. Approximately $20 billion, or 16%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee. The majority of these performance fees are calculated based on value added over the relevant benchmarks on a rolling one-year basis.

Current wording

Our profitability is affected by a variety of factors including the level and composition of our average assets under management, or AUM, fee rates charged on AUM and our expense structure. We earn management fees based on assets under management. The majority of our management fees are calculated based on average AUM (calculated on either a daily or monthly basis) with the remainder of our management fees calculated based on period-end AUM. Changes in the levels of our AUM are driven by market investment performance and net client cash flows. We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed required returns. Approximately $20 billion, or 13%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee. The majority of these performance fees are calculated based on value added over the relevant benchmarks on a rolling one-year basis.

Previous wording

The following table summarizes our unaudited results of operations for the three months ended March 31, 2025 and 2024:

Current wording

The following table summarizes our unaudited results of operations for the three and six months ended June 30, 2025 and 2024:

Previous wording

(3)Excludes severance-related items of $(0.2) million for the three months ended March 31, 2025. Excludes severance-related items of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million for the three months ended March 31, 2024.

Current wording

(3)Excludes severance-related items of $(0.3) million for the three months ended June 30, 2025. Excludes severance-related items of $(0.3) million, costs associated with the transfer of an insurance policy from our former parent of $0.4 million, and costs associated with the wind-down of the Multi-Asset Class Strategies, or “MACS” business in the standalone format of $1.3 million for the three months ended June 30, 2024. Excludes severance-related items of $(0.5) million for the six months ended June 30, 2025. Excludes severance-related items of $(0.5) million, costs associated with the transfer of an insurance policy from our former parent of $0.6 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million for the six months ended June 30, 2024.

Previous wording

Our total assets under management were $121.9 billion as of March 31, 2025 and $117.3 billion as of December 31, 2024.

Current wording

Our total assets under management were $151.1 billion as of June 30, 2025 and $117.3 billion as of December 31, 2024.

Previous wording

At March 31, 2025, our total assets under management were $121.9 billion, an increase of $4.6 billion, or 3.9%, compared to $117.3 billion at December 31, 2024 and an increase of $11.5 billion, or 10.4%, compared to $110.4 billion at March 31, 2024. The increase in assets under management compared to March 31, 2024 was driven by the equity market appreciation and positive NCCF in the last twelve months. The change in assets under management during the three months ended March 31, 2025 reflects net market appreciation of $0.8 billion, and net inflows of $3.8 billion. Market appreciation or depreciation reported in current and prior periods includes changes in equity prices, as well as the impact from exchange rate fluctuations on our foreign-denominated AUM. Given a substantial portion of our AUM is denominated in foreign currencies, foreign exchange rate movements during the period can impact AUM when the strength of the U.S. dollar changes relative to other currencies.

Current wording

At June 30, 2025, our total assets under management were $151.1 billion, an increase of $29.2 billion, or 24.0%, compared to $121.9 billion at March 31, 2025 and an increase of $38.5 billion, or 34.2%, compared to $112.6 billion at June 30, 2024. The increase in assets under management compared to June 30, 2024 was driven by the equity market appreciation and positive net client cash flows in the last twelve months. The change in assets under management during the three months ended June 30, 2025 reflects net market appreciation of $15.4 billion, and net inflows of $13.8 billion. Market appreciation or depreciation reported in current and prior periods includes changes in equity prices, as well as the impact from exchange rate fluctuations on our foreign-denominated AUM. Given a substantial portion of our AUM is denominated in foreign currencies, foreign exchange rate movements during the period can impact AUM when the strength of the U.S. dollar changes relative to other currencies.

Previous wording

For the three months ended March 31, 2025, our net inflows were $3.8 billion compared to $0.4 billion for the three months ended March 31, 2024. The change in net flows during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily driven by strong gross sales, which increased to $8.8 billion in the three months ended March 31, 2025. Reinvested income and distributions of $0.8 billion and $0.8 billion are reflected in the net inflows for the three months ended March 31, 2025 and March 31, 2024, respectively.

Current wording

For the three months ended June 30, 2025, our net flows were $13.8 billion compared to $0.0 billion for the three months ended June 30, 2024. Reinvested income and distributions of $0.8 billion are reflected in the net flows for each of the three months ended June 30, 2025 and June 30, 2024. For the six months ended June 30, 2025, our net inflows were $17.6 billion compared to $0.4 billion for the six months ended June 30, 2024. The change in net flows during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily driven by strong gross sales, which increased to $27.5 billion in the six months ended June 30, 2025. Reinvested income and distributions of $1.6 billion and $1.6 billion are reflected in the net inflows for the six months ended June 30, 2025 and June 30, 2024, respectively.

Previous wording

Our U.S. GAAP results of operations were as follows for the three months ended March 31, 2025 and 2024:

Current wording

Our U.S. GAAP results of operations were as follows for the three and six months ended June 30, 2025 and 2024:

Previous wording

ii. performance fees earned when our investment performance over agreed time periods for certain clients has differed from pre-determined hurdles; and

Current wording

ii. performance fees earned when our investment performance over agreed time periods for certain clients has differed from predetermined hurdles; and

Previous wording

Our management fees are a function of the fee rates charged to our clients, which are typically expressed in basis points, and the levels of our assets under management.

Current wording

Our management fees are a function of the fee rates charged to our clients, which are typically expressed in basis points, and the levels of our assets under management. Our effective management fee rate will vary from period to period based on several factors, including changes in the mix of assets under management caused by market movements and client flows.

Previous wording

Average basis points earned on average assets under management were 37.9 bps for the three months ended March 31, 2025, and 38.2 bps for the three months ended March 31, 2024. The overall weighted average fee rate decrease for the three months ended March 31, 2025 is the result of changes in the mix of assets under management caused by market movements and client flows.

Current wording

Average basis points earned on average assets under management were 37.0 bps and 37.3 bps for the three and six months ended June 30, 2025, respectively, and 38.5 bps and 38.3 bps for the three and six months ended June 30, 2024, respectively. The overall weighted average fee rate decrease for the three and six months ended June 30, 2025 is the result of changes in the mix of assets under management caused by client flows and market movements.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Management fees increased $10.7 million, or 10.5%, from $102.2 million for the three months ended March 31, 2024 to $112.9 million for the three months ended March 31, 2025. The increase was primarily driven by higher levels of average assets under management. Average assets under management increased 12.2%, from $107.6 billion for the three months ended March 31, 2024 to $120.7 billion for the three months ended March 31, 2025, mainly due to the positive equity market and positive net flows in the past twelve months.

Current wording

Three months ended June 30, 2025 compared to three months ended June 30, 2024: Management fees increased $16.8 million, or 15.9%, from $105.5 million for the three months ended June 30, 2024 to $122.3 million for the three months ended June 30, 2025. The increase was mainly driven by higher levels of average assets under management. Average assets under management increased 20.0%, from $110.3 billion for the three months ended June 30, 2024 to $132.4 billion for the three months ended June 30, 2025, mainly due to the positive equity market impact in the past twelve months.

Previous wording

Approximately $20 billion, or 16% of our AUM, were in accounts with performance fee features in which we participate. Performance fees are typically shared with key employees through various contractual compensation and profit-sharing arrangements.

Current wording

Approximately $20 billion, or 13% of our AUM, were in accounts with performance fee features in which we participate. Performance fees are typically shared with key employees through various contractual compensation and profit-sharing arrangements.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Performance fees increased $2.2 million, or 71.0%, from $3.1 million for the three months ended March 31, 2024 to $5.3 million for the three months ended March 31, 2025, primarily due to strong performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.

Current wording

Six months ended June 30, 2025 compared to six months ended June 30, 2024: Performance fees increased $2.0 million, or 33.9%, from $5.9 million for the six months ended June 30, 2024 to $7.9 million for the six months ended June 30, 2025, primarily due to strong performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.

Previous wording

Our most significant category of expense is compensation and benefits awarded to our employees. The following table presents the components of U.S. GAAP compensation expense for the three months ended March 31, 2025 and 2024:

Current wording

Our most significant category of expense is compensation and benefits awarded to our employees. The following table presents the components of U.S. GAAP compensation expense for the three and six months ended June 30, 2025 and 2024:

Previous wording

(a)For the three months ended March 31, 2025, $30.4 million, variable compensation expense (of the $30.2 million above) is included within economic net income, which excludes $(0.2) million of variable compensation associated with restructuring. For the three months ended March 31, 2024, $26.6 million of variable compensation expense (of the $26.4 million above) is included with economic net income, which excludes $(0.2) million of variable compensation associated with restructuring at Acadian LLC.

Current wording

(a)For the three and six months ended June 30, 2025, $31.9 million and $62.3 million, respectively, of variable compensation expense (of the $31.6 million and $61.8 million above) is included within economic net income. The three and six months ended June 30, 2025 excludes $(0.3) million and $(0.5) million, respectively, of variable compensation associated with restructuring. For the three and six months ended June 30, 2024, $27.4 million and $54.0 million, respectively, of variable compensation expense (of the $27.9 million and $54.3 million above) is included with economic net income. The three months ended June 30, 2024 excludes $(0.3) million of severance-related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format. The six months ended June 30, 2024 excludes $(0.5) million of severance related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Compensation and benefits expense increased $2.7 million, or 4.6%, from $58.1 million for the three months ended March 31, 2024 to $60.8 million for the three months ended March 31, 2025. Fixed compensation and benefits increased $0.8 million, or 3.4%, from $23.5 million for the three months ended March 31, 2024 to $24.3 million for the three months ended March 31, 2025, primarily reflecting cost of living increases and the cost of new hires supporting our growth initiatives. Variable compensation increased $3.8 million, or 14.4%, from $26.4 million for the three months ended March 31, 2024 to $30.2 million for the three months ended March 31, 2025. The increase was primarily attributable to higher pre-bonus profits in the three months ended March 31, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $1.9 million or 118.8% from $1.6 million for the three months ended March 31, 2024 to $3.5 million for the three months ended March 31, 2025, as a result of the structure of sales-based compensation programs, driven by the timing of asset inflows which trigger sales-based compensation in both current and prior periods. Acadian LLC key employee distributions increased $0.9 million, or 40.9%, from $2.2 million for the three months ended March 31, 2024 to $3.1 million for the three months ended March 31, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the three months ended March 31, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed $(4.7) million, reflecting fluctuations in the value of key employee ownership interests at Acadian LLC, as the value of the equity plan liability increased $4.4 million for the three months ended March 31, 2024 and decreased $(0.3) million for the three months ended March 31, 2025. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the three months ended March 31, 2025 reflect changes in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.

Current wording

Three months ended June 30, 2025 compared to three months ended June 30, 2024: Compensation and benefits expense increased $21.6 million, or 34.7%, from $62.2 million for the three months ended June 30, 2024 to $83.8 million for the three months ended June 30, 2025. Fixed compensation and benefits increased $0.7 million, or 2.9%, from $24.3 million for the three months ended June 30, 2024 to $25.0 million for the three months ended June 30, 2025, primarily reflecting cost of living increases. Variable compensation increased $3.7 million, or 13.3%, from $27.9 million for the three months ended June 30, 2024 to $31.6 million for the three months ended June 30, 2025. The increase was primarily attributable to higher pre-bonus profits in the three months ended June 30, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $1.5 million, or 75.0%, from $2.0 million for the three months ended June 30, 2024 to $3.5 million for the three months ended June 30, 2025, driven by the increase in asset inflows. Acadian LLC key employee distributions increased $1.9 million, or 90.5%, from $2.1 million for the three months ended June 30, 2024 to $4.0 million for the three months ended June 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the current period is driven by higher operating earnings in the current period and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed by $13.8 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the three months ended June 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: General and administrative expense increased $2.3 million, or 11.5%, from $20.0 million for the three months ended March 31, 2024 to $22.3 million for the three months ended March 31, 2025. The increase was primarily due to higher systems, outside services and portfolio administrative costs, reflecting our continued investment in growth initiatives and capabilities, foreign currency loss, partially offset by lower consultant costs.

Current wording

Six months ended June 30, 2025 compared to six months ended June 30, 2024: General and administrative expense increased $3.0 million, or 7.3%, from $41.1 million for the six months ended June 30, 2024 to $44.1 million for the six months ended June 30, 2025. The increase was primarily due to higher systems, recruiting and outside services costs, partially offset by the impact of foreign currency changes.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Depreciation and amortization expense decreased $(0.4) million, or (8.7)%, from $4.6 million for the three months ended March 31, 2024 to $4.2 million for the three months ended March 31, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated.

Current wording

Three months ended June 30, 2025 compared to three months ended June 30, 2024: Depreciation and amortization expense decrease $(0.8) million, or (16.0)% from $5.0 million for the three months ended June 30, 2024 to $4.2 million for the three months ended June 30, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Investment income decreased $(0.6) million, or (66.7)%, from $0.9 million for the three months ended March 31, 2024 to $0.3 million for the three months ended March 31, 2025, reflecting a decrease in returns generated by seed capital investments due to market depreciation in the three months ended March 31, 2025.

Current wording

Three months ended June 30, 2025 compared to three months ended June 30, 2024: Investment income (loss) changed $(0.3) million, from $0.1 million for the three months ended June 30, 2024 to $(0.2) million for the three months ended June 30, 2025, reflecting the change in returns generated by seed capital investments in Funds that are not consolidated by the Company.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Interest income decreased $(0.2) million, or (15.4)%, from $1.3 million for the three months ended March 31, 2024 compared to $1.1 million for the three months ended March 31, 2025. The decrease was due to lower average cash balances and decreases in short-term investment returns in the three months ended March 31, 2025.

Current wording

Three months ended June 30, 2025 compared to three months ended June 30, 2024: Interest income decreased $(0.1) million, or (11.1)% from $0.9 million for the three months ended June 30, 2024 compared to $0.8 million for the three months ended June 30, 2025. The decrease reflects the change in short-term investment returns in the three months ended June 30, 2025.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Interest expense decreased $(0.2) million, or (4.0)%, from $5.0 million for the three months ended March 31, 2024 compared to $4.8 million for the three months ended March 31, 2025, reflecting a decrease in interest rates on the revolving credit facility in the three months ended March 31, 2025.

Current wording

Six months ended June 30, 2025 compared to six months ended June 30, 2024: Interest expense decreased $(0.2) million, or (1.9)%, from $10.3 million for the six months ended June 30, 2024 compared to $10.1 million for the six months ended June 30, 2025, reflecting a decrease in interest rates on the revolving credit facility in the six months ended June 30, 2025.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Income tax expense increased $2.2 million, from $6.1 million for the three months ended March 31, 2024 to $8.3 million for the three months ended March 31, 2025. The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interest in the three months ended March 31, 2025.

Current wording

Six months ended June 30, 2025 compared to six months ended June 30, 2024: Income tax expense increased $1.1 million, from $11.7 million for the six months ended June 30, 2024 to $12.8 million for the six months ended June 30, 2025. The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interest in the six months ended June 30, 2025.

Previous wording

Three months ended March 31, 2025 compared to three months ended March 31, 2024: Consolidated Funds’ revenue increased $1.3 million, from $0.4 million for the three months ended March 31, 2024 to $1.7 million for the three months ended March 31, 2025. Consolidated Funds’ expense increased $0.6 million, from $0.1 million for the three months ended March 31, 2024 to $0.7 million for the three months ended March 31, 2025. Net consolidated Funds’ investment gain increased $1.9 million from $1.7 million for the three months ended March 31, 2024 to $3.6 million for the three months ended March 31, 2025. These movements relate to the underlying activity of our consolidated Funds.

Current wording

Three months ended June 30, 2025 compared to three months ended June 30, 2024: Consolidated Funds’ revenue increased $1.8 million, from $0.7 million for the three months ended June 30, 2024 to $2.5 million for the three months ended June 30, 2025. Consolidated Funds’ expense increased $1.3 million, from $0.1 million for the three months ended June 30, 2024 to $1.4 million for the three months ended June 30, 2025. Net consolidated Funds’ investment gain increased $11.3 million from $0.8 million for the three months ended June 30, 2024 to $12.1 million for the three months ended June 30, 2025. These movements relate to the underlying activity of our consolidated Funds.

Previous wording

The following table shows our key U.S. GAAP operating metrics for the three months ended March 31, 2025 and 2024.

Current wording

The following table shows our key U.S. GAAP operating metrics for the three and six months ended June 30, 2025 and 2024.

Previous wording

(1)Excluding the effect of Funds’ consolidation in the applicable periods, the U.S. GAAP operating margin is 26.1% for the three months ended March 31, 2025, and 21.5% for the three months ended March 31, 2024.

Current wording

(1)Excluding the effect of Funds’ consolidation in the applicable periods, the U.S. GAAP operating margin is 12.1% for the three months ended June 30, 2025, 18.5% for the three months ended June 30, 2024, 18.9% for the six months ended June 30, 2025, and 19.9% for the six months ended June 30, 2024.

Previous wording

(2)Excludes consolidated Funds’ expense of $0.7 million for the three months ended March 31, 2025, and $0.1 million for the three months ended March 31, 2024.

Current wording

(2)Excludes consolidated Funds’ expense of $1.4 million for the three months ended June 30, 2025, $0.1 million for the three months ended June 30, 2024, $2.1 million for the six months ended June 30, 2025, and $0.2 million for the six months ended June 30, 2024.

Previous wording

(3)Excludes the effect of Funds consolidation for the three months ended March 31, 2025 and 2024.

Current wording

(3)Excludes the effect of Funds consolidation for the three and six months ended June 30, 2025 and 2024.

Previous wording

(4)Excludes consolidated Funds’ revenue of $1.7 million for the three months ended March 31, 2025, and $0.4 million for the three months ended March 31, 2024.

Current wording

(4)Excludes consolidated Funds’ revenue of $2.5 million for the three months ended June 30, 2025, $0.7 million for the three months ended June 30, 2024, $4.2 million for the six months ended June 30, 2025, and $1.1 million for the six months ended June 30, 2024.

Previous wording

Reconciliation of U.S. GAAP Net Income to Economic Net Income for the Three Months Ended March 31, 2025 and 2024

Current wording

Reconciliation of U.S. GAAP Net Income to Economic Net Income for the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

The following table reconciles net income attributable to controlling interests to economic net income for the three months ended March 31, 2025 and 2024:

Current wording

The following table reconciles net income attributable to controlling interests to economic net income for the three and six months ended June 30, 2025 and 2024:

Previous wording

(1)The net return on seed/co-investment (gains) losses and financings for the three months ended March 31, 2025 and 2024 is shown in the following table:

Current wording

(1)The net return on seed/co-investment (gains) losses and financings for the three and six months ended June 30, 2025 and 2024 is shown in the following table:

Previous wording

(2)The three months ended March 31, 2025 includes severance-related items of $(0.2) million. The three months ended March 31, 2024 includes severance-related items of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million.

Current wording

(2)The three months ended June 30, 2025 includes severance-related items of $(0.3) million. The three months ended June 30, 2024 includes severance-related items of $(0.3) million, costs associated with the transfer of an insurance policy from our former parent of $0.4 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million. The six months ended June 30, 2025 includes severance-related items of $(0.5) million. The six months ended June 30, 2024 includes severance-related items of $(0.5) million, costs associated with the transfer of an insurance policy from our former parent of $0.6 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.

Previous wording

The following table reconciles U.S. GAAP revenue to ENI revenue for the three months ended March 31, 2025 and 2024:

Current wording

The following table reconciles U.S. GAAP revenue to ENI revenue for the three and six months ended June 30, 2025 and 2024:

Previous wording

The following table reconciles U.S. GAAP operating expense to ENI operating expense for the three months ended March 31, 2025 and 2024.

Current wording

The following table reconciles U.S. GAAP operating expense to ENI operating expense for the three and six months ended June 30, 2025 and 2024.

Previous wording

(2)The three months ended March 31, 2025 excludes $(0.2) million of severance-related items that is included within restructuring costs. The three months ended March 31, 2024 excludes $(0.2) million severance-related items that is included within restructuring costs.

Current wording

(2)The three and six months ended June 30, 2025 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that is included within restructuring costs. The three and six months ended June 30, 2024 excludes $(0.3) million and $(0.5) million, respectively, of severance-related items that is included within restructuring costs. Each of the three and six months ended June 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format that is included with restructuring costs.

Previous wording

(1)Fixed compensation and benefits include base salaries, payroll taxes and the cost of benefit programs provided. The following table reconciles U.S. GAAP compensation and benefits expense for the three months ended March 31, 2025 and 2024 to ENI fixed compensation and benefits expense:

Current wording

(1)Fixed compensation and benefits include base salaries, payroll taxes and the cost of benefit programs provided. The following table reconciles U.S. GAAP compensation and benefits expense for the three and six months ended June 30, 2025 and 2024 to ENI fixed compensation and benefits expense:

Previous wording

(a)Reflects $0.2 million of costs associated with the transfer of an insurance policy from our former parent for the three months ended March 31, 2024.

Current wording

(a)Reflects $0.4 million and $0.6 million, respectively, of costs associated with the transfer of an insurance policy from our former parent for the three and six months ended June 30, 2024.