Cohen & Steers Inc.
07/31/2026 | Press release | Distributed by Public on 07/31/2026 06:34
Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Set forth on the following pages is management's discussion and analysis of our financial condition and results of operations for the three and six months ended June 30, 2026 and 2025. Such information should be read in conjunction with our condensed consolidated financial statements and the related notes included herein. The condensed consolidated financial statements of the Company are unaudited. When we use the terms "Cohen & Steers," the "Company," "we," "us" and "our," we mean Cohen & Steers, Inc., a Delaware corporation, and its consolidated subsidiaries.
Executive Overview
General
We are a global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, we are headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.
Our primary investment strategies include U.S. real estate, preferred securities, global/international real estate, global listed infrastructure, real assets multi-strategy, global natural resource equities, and private real estate solutions. Our strategies seek to achieve a variety of investment objectives for different risk profiles and are actively managed by specialist teams of investment professionals who employ fundamental-driven research and portfolio management processes. We offer our strategies through a variety of investment vehicles, including U.S. and non-U.S. registered funds (which include active exchange-traded funds (ETFs)), other commingled vehicles, separate accounts and subadvised portfolios.
Our global distribution is concentrated in two channels: wealth and institutional. The wealth channel includes a variety of intermediaries such as global private banks, U.S. wirehouses, independent and regional broker dealers, bank trusts, registered investment advisers and discretionary portfolio managers using global custody or clearing platforms. The institutional channel comprises sovereign wealth funds, public and private pension and retirement plans, insurance companies, endowments, foundations, and global investment consultants who support these institutions.
Our revenue from the wealth channel is derived from investment advisory, administration, distribution and service fees from open-end funds, including ETFs, and closed-end funds as well as other commingled vehicles. Our revenue from the institutional channel is derived from fees received from our clients for managing advised and subadvised accounts. Our fees are based on contractually specified rates applied to the value of the assets we manage and, in certain cases, may include a performance-based fee. Investment advisory fee rates vary based on the vehicle, investment strategy, fees charged by other comparable products and prevailing market conditions. Investment administration fees from open-end funds and certain closed-end funds are designed to reimburse us for the cost of providing these services. The investment advisory and administration agreements are generally terminable upon specified notice periods and may also require a majority vote of the fund's board of directors for certain contracts.
Our revenue fluctuates with changes in the total value of our assets under management, which may occur as a result of market appreciation and depreciation, contributions to or withdrawals from investor accounts and distributions. This revenue is recognized over the period that the assets are managed.
Macroeconomic Environment
Global economic conditions remained volatile through the second quarter of 2026, with many of the uncertainties that characterized the first quarter continuing to influence markets. Investors remained focused on the potential economic implications of artificial intelligence adoption, conditions within private credit markets, and ongoing geopolitical developments in the Middle East and their potential effects on commodity prices and inflation. Central banks continued to balance gradual progress on core inflation against signs of moderating employment growth and energy prices, and policy uncertainty remained a driver of market dynamics even as corporate fundamentals were generally upbeat.
Investment Performance at June 30, 2026
_________________________
(1) Past performance is no guarantee of future results. Outperformance is determined by comparing the annualized investment performance of each investment strategy to the performance of specified reference benchmarks. Investment performance in excess of the performance of the benchmark is considered outperformance. The investment performance calculation of each investment strategy is based on all active accounts and investment models pursuing similar investment objectives. For accounts, actual investment performance is measured gross of fees and net of withholding taxes. For investment models, for which actual investment performance does not exist, the investment performance of a composite of accounts pursuing comparable investment objectives is used as a proxy for actual investment performance. The performance of the specified reference benchmark for each account and investment model is measured net of withholding taxes, where applicable. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers.
(2) © 2026 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar calculates its ratings based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. Past performance is no guarantee of future results. Based on independent rating by Morningstar, Inc. of investment performance of each Cohen & Steers-sponsored open-end U.S.-registered mutual fund for all share classes for the overall period at June 30, 2026. Overall Morningstar rating is a weighted average based on the 3-year, 5-year and 10-year Morningstar rating. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers.
Assets Under Management
Below is a discussion of our assets under management for the quarter ended June 30, 2026. For additional details, please refer to the tables on pages 21 - 24.
Assets under management at June 30, 2026 increased 12.6% to $100.1 billion from $88.9 billion at June 30, 2025.
Open-end funds
Assets under management in open-end funds at June 30, 2026 increased 14.0% to $49.0 billion from $43.0 billion at June 30, 2025. Activity during the six months ended June 30, 2026 included:
•Net inflows of $2.0 billion including $674 million into U.S. real estate, $530 million into real assets multi-strategy (included in "Other") and $331 million into preferred securities;
•Market appreciation of $4.3 billion including $3.5 billion from U.S. real estate; and
•Distributions of $755 million including $368 million from U.S. real estate and $273 million from preferred securities, of which $542 million was reinvested and included in net flows.
Institutional accounts
Assets under management in institutional accounts at June 30, 2026 increased 12.0% to $38.5 billion from $34.4 billion at June 30, 2025. Activity during the six months ended June 30, 2026 included:
Advisory accounts:
•Net outflows of $54 million including $362 million from global/international real estate, partially offset by net inflows of $134 million into global listed infrastructure and $126 million into U.S. real estate; and
•Market appreciation of $2.1 billion including $1.0 billion from U.S. real estate, $546 million from global/international real estate and $485 million from global listed infrastructure.
Subadvisory accounts:
•Net outflows of $162 million including $184 million from global/international real estate, partially offset by net inflows of $62 million into U.S. real estate;
•Market appreciation of $1.9 billion including $1.1 billion from U.S. real estate and $501 million from global/international real estate; and
•Distributions of $306 million including $286 million from U.S. real estate.
Closed-end funds
Assets under management in closed-end funds at June 30, 2026 increased 8.6% to $12.6 billion from $11.6 billion at June 30, 2025. Activity during the six months ended June 30, 2026 included:
•Market appreciation of $868 million including $378 million from global listed infrastructure and $355 million from U.S. real estate; and
•Distributions of $334 million including $113 million from U.S. real estate and $107 million from global listed infrastructure.
Assets Under Management
By Investment Vehicle
(in millions)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Open-end Funds | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 44,841 | $ | 42,298 | $ | 43,437 | $ | 40,962 | |||||||||||||||
| Inflows | 4,275 | 3,072 | 7,633 | 6,591 | |||||||||||||||||||
| Outflows | (2,821) | (2,787) | (5,624) | (5,721) | |||||||||||||||||||
| Net inflows (outflows) | 1,454 | 285 | 2,009 | 870 | |||||||||||||||||||
| Market appreciation (depreciation) | 3,147 | 816 | 4,302 | 1,849 | |||||||||||||||||||
| Distributions | (449) | (437) | (755) | (719) | |||||||||||||||||||
| Total increase (decrease) | 4,152 | 664 | 5,556 | 2,000 | |||||||||||||||||||
| Assets under management, end of period | $ | 48,993 | $ | 42,962 | $ | 48,993 | $ | 42,962 | |||||||||||||||
| Average assets under management | $ | 48,111 | $ | 42,110 | $ | 46,716 | $ | 41,959 | |||||||||||||||
| Institutional Accounts | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 36,029 | $ | 33,886 | $ | 35,060 | $ | 33,563 | |||||||||||||||
| Inflows | 1,372 | 651 | 2,475 | 1,751 | |||||||||||||||||||
| Outflows | (1,529) | (1,170) | (2,691) | (2,636) | |||||||||||||||||||
| Net inflows (outflows) | (157) | (519) | (216) | (885) | |||||||||||||||||||
| Market appreciation (depreciation) | 2,801 | 1,190 | 3,985 | 2,043 | |||||||||||||||||||
| Distributions | (150) | (171) | (306) | (335) | |||||||||||||||||||
| Total increase (decrease) | 2,494 | 500 | 3,463 | 823 | |||||||||||||||||||
| Assets under management, end of period | $ | 38,523 | $ | 34,386 | $ | 38,523 | $ | 34,386 | |||||||||||||||
| Average assets under management | $ | 38,272 | $ | 33,844 | $ | 37,501 | $ | 33,736 | |||||||||||||||
| Closed-end Funds | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 12,258 | $ | 11,395 | $ | 12,047 | $ | 11,289 | |||||||||||||||
| Inflows | 1 | 103 | 2 | 106 | |||||||||||||||||||
| Outflows | - | - | - | - | |||||||||||||||||||
| Net inflows (outflows) | 1 | 103 | 2 | 106 | |||||||||||||||||||
| Market appreciation (depreciation) | 493 | 244 | 868 | 501 | |||||||||||||||||||
| Distributions | (169) | (154) | (334) | (308) | |||||||||||||||||||
| Total increase (decrease) | 325 | 193 | 536 | 299 | |||||||||||||||||||
|
Assets under management, end of period
|
$ | 12,583 | $ | 11,588 | $ | 12,583 | $ | 11,588 | |||||||||||||||
| Average assets under management | $ | 12,594 | $ | 11,289 | $ | 12,482 | $ | 11,321 | |||||||||||||||
| Total | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 93,128 | $ | 87,579 | $ | 90,544 | $ | 85,814 | |||||||||||||||
| Inflows | 5,648 | 3,826 | 10,110 | 8,448 | |||||||||||||||||||
| Outflows | (4,350) | (3,957) | (8,315) | (8,357) | |||||||||||||||||||
| Net inflows (outflows) | 1,298 | (131) | 1,795 | 91 | |||||||||||||||||||
| Market appreciation (depreciation) | 6,441 | 2,250 | 9,155 | 4,393 | |||||||||||||||||||
| Distributions | (768) | (762) | (1,395) | (1,362) | |||||||||||||||||||
| Total increase (decrease) | 6,971 | 1,357 | 9,555 | 3,122 | |||||||||||||||||||
| Assets under management, end of period | $ | 100,099 | $ | 88,936 | $ | 100,099 | $ | 88,936 | |||||||||||||||
| Average assets under management | $ | 98,977 | $ | 87,243 | $ | 96,699 | $ | 87,016 | |||||||||||||||
Assets Under Management - Institutional Accounts
By Account Type
(in millions)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Advisory | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 21,679 | $ | 19,703 | $ | 20,843 | $ | 19,272 | |||||||||||||||
| Inflows | 592 | 436 | 1,300 | 1,033 | |||||||||||||||||||
| Outflows | (856) | (848) | (1,354) | (1,553) | |||||||||||||||||||
| Net inflows (outflows) | (264) | (412) | (54) | (520) | |||||||||||||||||||
| Market appreciation (depreciation) | 1,490 | 754 | 2,116 | 1,293 | |||||||||||||||||||
| Total increase (decrease) | 1,226 | 342 | 2,062 | 773 | |||||||||||||||||||
| Assets under management, end of period | $ | 22,905 | $ | 20,045 | $ | 22,905 | $ | 20,045 | |||||||||||||||
| Average assets under management | $ | 22,752 | $ | 19,789 | $ | 22,371 | $ | 19,686 | |||||||||||||||
| Subadvisory | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 14,350 | $ | 14,183 | $ | 14,217 | $ | 14,291 | |||||||||||||||
| Inflows | 780 | 215 | 1,175 | 718 | |||||||||||||||||||
| Outflows | (673) | (322) | (1,337) | (1,083) | |||||||||||||||||||
| Net inflows (outflows) | 107 | (107) | (162) | (365) | |||||||||||||||||||
| Market appreciation (depreciation) | 1,311 | 436 | 1,869 | 750 | |||||||||||||||||||
| Distributions | (150) | (171) | (306) | (335) | |||||||||||||||||||
| Total increase (decrease) | 1,268 | 158 | 1,401 | 50 | |||||||||||||||||||
| Assets under management, end of period | 15,618 | 14,341 | 15,618 | 14,341 | |||||||||||||||||||
| Average assets under management | $ | 15,520 | $ | 14,055 | $ | 15,130 | $ | 14,050 | |||||||||||||||
| Total Institutional Accounts | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 36,029 | $ | 33,886 | $ | 35,060 | $ | 33,563 | |||||||||||||||
| Inflows | 1,372 | 651 | 2,475 | 1,751 | |||||||||||||||||||
| Outflows | (1,529) | (1,170) | (2,691) | (2,636) | |||||||||||||||||||
| Net inflows (outflows) | (157) | (519) | (216) | (885) | |||||||||||||||||||
| Market appreciation (depreciation) | 2,801 | 1,190 | 3,985 | 2,043 | |||||||||||||||||||
| Distributions | (150) | (171) | (306) | (335) | |||||||||||||||||||
| Total increase (decrease) | 2,494 | 500 | 3,463 | 823 | |||||||||||||||||||
| Assets under management, end of period | $ | 38,523 | $ | 34,386 | $ | 38,523 | $ | 34,386 | |||||||||||||||
| Average assets under management | $ | 38,272 | $ | 33,844 | $ | 37,501 | $ | 33,736 | |||||||||||||||
Assets Under Management
By Investment Strategy
(in millions)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| U.S. Real Estate | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 44,569 | $ | 43,591 | $ | 43,503 | $ | 42,930 | |||||||||||||||
| Inflows | 3,063 | 1,909 | 5,240 | 4,228 | |||||||||||||||||||
| Outflows | (2,180) | (1,560) | (4,377) | (4,096) | |||||||||||||||||||
| Net inflows (outflows) | 883 | 349 | 863 | 132 | |||||||||||||||||||
| Market appreciation (depreciation) | 4,495 | 466 | 5,952 | 1,716 | |||||||||||||||||||
| Distributions | (397) | (434) | (768) | (796) | |||||||||||||||||||
| Transfers | - | - | - | (10) | |||||||||||||||||||
| Total increase (decrease) | 4,981 | 381 | 6,047 | 1,042 | |||||||||||||||||||
| Assets under management, end of period | $ | 49,550 | $ | 43,972 | $ | 49,550 | $ | 43,972 | |||||||||||||||
| Average assets under management | $ | 48,506 | $ | 43,172 | $ | 46,906 | $ | 43,257 | |||||||||||||||
| Preferred Securities | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 17,848 | $ | 18,207 | $ | 18,081 | $ | 18,330 | |||||||||||||||
| Inflows | 953 | 738 | 1,803 | 1,585 | |||||||||||||||||||
| Outflows | (772) | (1,218) | (1,489) | (2,141) | |||||||||||||||||||
| Net inflows (outflows) | 181 | (480) | 314 | (556) | |||||||||||||||||||
| Market appreciation (depreciation) | 532 | 351 | 349 | 472 | |||||||||||||||||||
| Distributions | (190) | (176) | (373) | (354) | |||||||||||||||||||
| Transfers | - | - | - | 10 | |||||||||||||||||||
| Total increase (decrease) | 523 | (305) | 290 | (428) | |||||||||||||||||||
| Assets under management, end of period | $ | 18,371 | $ | 17,902 | $ | 18,371 | $ | 17,902 | |||||||||||||||
| Average assets under management | $ | 18,265 | $ | 17,792 | $ | 18,228 | $ | 18,086 | |||||||||||||||
| Global/International Real Estate | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 14,361 | $ | 13,129 | $ | 14,273 | $ | 13,058 | |||||||||||||||
| Inflows | 493 | 403 | 1,125 | 863 | |||||||||||||||||||
| Outflows | (896) | (426) | (1,482) | (1,052) | |||||||||||||||||||
| Net inflows (outflows) | (403) | (23) | (357) | (189) | |||||||||||||||||||
| Market appreciation (depreciation) | 1,205 | 915 | 1,256 | 1,157 | |||||||||||||||||||
| Distributions | (47) | (41) | (56) | (46) | |||||||||||||||||||
| Total increase (decrease) | 755 | 851 | 843 | 922 | |||||||||||||||||||
| Assets under management, end of period | $ | 15,116 | $ | 13,980 | $ | 15,116 | $ | 13,980 | |||||||||||||||
| Average assets under management | $ | 15,199 | $ | 13,521 | $ | 15,114 | $ | 13,347 | |||||||||||||||
Assets Under Management
By Investment Strategy - continued
(in millions)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Global Listed Infrastructure | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 12,589 | $ | 9,710 | $ | 11,456 | $ | 8,793 | |||||||||||||||
| Inflows | 442 | 460 | 837 | 1,212 | |||||||||||||||||||
| Outflows | (285) | (439) | (584) | (605) | |||||||||||||||||||
| Net inflows (outflows) | 157 | 21 | 253 | 607 | |||||||||||||||||||
| Market appreciation (depreciation) | 245 | 403 | 1,336 | 810 | |||||||||||||||||||
| Distributions | (98) | (82) | (152) | (128) | |||||||||||||||||||
| Transfers | (189) | - | (189) | (30) | |||||||||||||||||||
| Total increase (decrease) | 115 | 342 | 1,248 | 1,259 | |||||||||||||||||||
| Assets under management, end of period | $ | 12,704 | $ | 10,052 | $ | 12,704 | $ | 10,052 | |||||||||||||||
| Average assets under management | $ | 12,828 | $ | 9,829 | $ | 12,558 | $ | 9,441 | |||||||||||||||
| Other | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 3,761 | $ | 2,942 | $ | 3,231 | $ | 2,703 | |||||||||||||||
| Inflows | 697 | 316 | 1,105 | 560 | |||||||||||||||||||
| Outflows | (217) | (314) | (383) | (463) | |||||||||||||||||||
| Net inflows (outflows) | 480 | 2 | 722 | 97 | |||||||||||||||||||
| Market appreciation (depreciation) | (36) | 115 | 262 | 238 | |||||||||||||||||||
| Distributions | (36) | (29) | (46) | (38) | |||||||||||||||||||
| Transfers | 189 | - | 189 | 30 | |||||||||||||||||||
| Total increase (decrease) | 597 | 88 | 1,127 | 327 | |||||||||||||||||||
| Assets under management, end of period | $ | 4,358 | $ | 3,030 | $ | 4,358 | $ | 3,030 | |||||||||||||||
| Average assets under management | $ | 4,179 | $ | 2,929 | $ | 3,893 | $ | 2,885 | |||||||||||||||
| Total | |||||||||||||||||||||||
| Assets under management, beginning of period | $ | 93,128 | $ | 87,579 | $ | 90,544 | $ | 85,814 | |||||||||||||||
| Inflows | 5,648 | 3,826 | 10,110 | 8,448 | |||||||||||||||||||
| Outflows | (4,350) | (3,957) | (8,315) | (8,357) | |||||||||||||||||||
| Net inflows (outflows) | 1,298 | (131) | 1,795 | 91 | |||||||||||||||||||
| Market appreciation (depreciation) | 6,441 | 2,250 | 9,155 | 4,393 | |||||||||||||||||||
| Distributions | (768) | (762) | (1,395) | (1,362) | |||||||||||||||||||
| Total increase (decrease) | 6,971 | 1,357 | 9,555 | 3,122 | |||||||||||||||||||
| Assets under management, end of period | $ | 100,099 | $ | 88,936 | $ | 100,099 | $ | 88,936 | |||||||||||||||
| Average assets under management | $ | 98,977 | $ | 87,243 | $ | 96,699 | $ | 87,016 | |||||||||||||||
Summary of Operating Results
| (in thousands, except percentages and per share data) |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
| Revenue | $ | 152,730 | $ | 136,126 | $ | 298,369 | $ | 270,593 | |||||||||||||||
| Net income | $ | 49,343 | $ | 36,849 | $ | 91,711 | $ | 76,627 | |||||||||||||||
| Diluted EPS | $ | 0.95 | $ | 0.72 | $ | 1.77 | $ | 1.49 | |||||||||||||||
| Operating margin | 34.6% | 31.8% | 34.5% | 32.7% | |||||||||||||||||||
|
Fee Rate (ex. performance fees)
|
58.5 bps | 59.1 bps | 58.7 bps | 59.2 bps | |||||||||||||||||||
| As Adjusted results (non-GAAP): | |||||||||||||||||||||||
| Revenue | $ | 151,837 | $ | 135,320 | $ | 296,101 | $ | 269,110 | |||||||||||||||
| Net income | $ | 43,968 | $ | 37,324 | $ | 84,660 | $ | 75,677 | |||||||||||||||
| Diluted EPS | $ | 0.85 | $ | 0.73 | $ | 1.64 | $ | 1.47 | |||||||||||||||
| Operating margin | 36.3% | 33.6% | 35.7% | 34.2% | |||||||||||||||||||
|
Fee Rate (ex. performance fees)
|
58.1 bps | 58.7 bps | 58.2 bps | 58.8 bps | |||||||||||||||||||
Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
Revenue
| (in thousands) |
Three Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Investment advisory and administration fees | |||||||||||||||||||||||
|
Open-end funds
|
$ | 80,498 | $ | 70,613 | $ | 9,885 | 14.0 | % | |||||||||||||||
|
Institutional accounts
|
35,752 | 32,854 | $ | 2,898 | 8.8 | % | |||||||||||||||||
|
Closed-end funds
|
28,035 | 25,078 | $ | 2,957 | 11.8 | % | |||||||||||||||||
| Total | 144,285 | 128,545 | $ | 15,740 | 12.2 | % | |||||||||||||||||
| Distribution and service fees | 7,919 | 7,166 | $ | 753 | 10.5 | % | |||||||||||||||||
| Other | 526 | 415 | $ | 111 | 26.7 | % | |||||||||||||||||
| Total revenue | $ | 152,730 | $ | 136,126 | $ | 16,604 | 12.2 | % | |||||||||||||||
Investment advisory and administration fees increased from the three months ended June 30, 2025, primarily due to higher average assets under management.
Total investment advisory and administration fees from open-end funds compared with average assets under management implied an annualized effective fee rate of 67.1 bps and 67.3 bps for the three months ended June 30, 2026 and 2025, respectively.
Total investment advisory fees from institutional accounts compared with average assets under management implied an annualized effective fee rate of 37.5 bps and 38.9 bps for the three months ended June 30, 2026 and 2025, respectively. The decrease in the implied annualized effective fee rate is primarily due to a shift in the mix of assets under management.
Total investment advisory and administration fees from closed-end funds compared with average assets under management implied an annualized effective fee rate of 89.3 bps and 89.1 bps for the three months ended June 30, 2026 and 2025, respectively.
Distribution and service fees increased from the three months ended June 30, 2025, primarily due to higher average assets under management in U.S. open-end funds, partially offset by a shift into lower fee paying share classes.
Expenses
| (in thousands) |
Three Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Employee compensation and benefits | $ | 61,506 | $ | 56,640 | $ | 4,866 | 8.6 | % | |||||||||||||||
| Distribution and service fees | 16,890 | 15,706 | $ | 1,184 | 7.5 | % | |||||||||||||||||
| General and administrative | 18,953 | 18,078 | $ | 875 | 4.8 | % | |||||||||||||||||
| Depreciation and amortization | 2,606 | 2,375 | $ | 231 | 9.7 | % | |||||||||||||||||
| Total expenses | $ | 99,955 | $ | 92,799 | $ | 7,156 | 7.7 | % | |||||||||||||||
Employee compensation and benefits increased from the three months ended June 30, 2025, primarily due to higher incentive compensation of $3.1 million associated with increased revenue and higher salaries of $1.3 million.
Distribution and service fees increased from the three months ended June 30, 2025, primarily due to higher average assets under management in U.S. open-end funds.
General and administrative expenses increased from the three months ended June 30, 2025, primarily due to fund organization cost related to the Cohen & Steers Quality Income Realty Fund, Inc. (RQI) rights offering of $1.1 million.
Operating Margin
Operating margin for the three months ended June 30, 2026 increased to 34.6% from 31.8% for the three months ended June 30, 2025. Operating margin represents the ratio of operating income to revenue.
Non-operating Income (Loss)
| (in thousands) |
Three Months Ended June 30, 2026
|
||||||||||||||||
|
Consolidated
Funds (1)
|
Corporate - Seed and Other |
Total | |||||||||||||||
| Interest and dividend income | $ | 840 | $ | 4,378 | $ | 5,218 | |||||||||||
|
Gain (loss) from investments-net
|
8,619 | 5,567 | 14,186 | ||||||||||||||
| Foreign currency gain (loss)-net | - | (166) | (166) | ||||||||||||||
| Total non-operating income (loss) | 9,459 | 9,779 | 19,238 | ||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (6,223) | - | (6,223) | ||||||||||||||
| Non-operating income (loss) attributable to the Company | $ | 3,236 | $ | 9,779 | $ | 13,015 | |||||||||||
| (in thousands) |
Three Months Ended June 30, 2025
|
||||||||||||||||
|
Consolidated
Funds (1)
|
Corporate - Seed and Other |
Total | |||||||||||||||
| Interest and dividend income | $ | 2,103 | $ | 4,212 | $ | 6,315 | |||||||||||
|
Gain (loss) from investments-net
|
4,909 | 1,806 | 6,715 | ||||||||||||||
| Foreign currency gain (loss)-net | (245) | (2,278) | (2,523) | ||||||||||||||
| Total non-operating income (loss) | 6,767 | 3,740 | 10,507 | ||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (4,923) | - | (4,923) | ||||||||||||||
| Non-operating income (loss) attributable to the Company | $ | 1,844 | $ | 3,740 | $ | 5,584 | |||||||||||
_________________________
(1)Represents seed investments in funds that we are required to consolidate under U.S. GAAP.
Income Taxes
The Company's effective income tax rate for the three months ended June 30, 2026 was 25.0%, compared with 24.7% for the three months ended June 30, 2025.
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
Revenue
| (in thousands) |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Investment advisory and administration fees | |||||||||||||||||||||||
|
Open-end funds
|
$ | 155,548 | $ | 140,271 | $ | 15,277 | 10.9 | % | |||||||||||||||
|
Institutional accounts
|
70,294 | 65,021 | $ | 5,273 | 8.1 | % | |||||||||||||||||
|
Closed-end funds
|
55,269 | 50,024 | $ | 5,245 | 10.5 | % | |||||||||||||||||
| Total | 281,111 | 255,316 | $ | 25,795 | 10.1 | % | |||||||||||||||||
| Distribution and service fees | 15,974 | 14,350 | $ | 1,624 | 11.3 | % | |||||||||||||||||
| Other | 1,284 | 927 | $ | 357 | 38.5 | % | |||||||||||||||||
| Total revenue | $ | 298,369 | $ | 270,593 | $ | 27,776 | 10.3 | % | |||||||||||||||
Investment advisory and administration fees increased from the six months ended June 30, 2025, primarily due to higher average assets under management.
Total investment advisory and administration fees from open-end funds compared with average assets under management implied an annualized effective fee rate of 67.1 bps and 67.4 bps for the six months ended June 30, 2026 and 2025, respectively.
Total investment advisory fees from institutional accounts compared with average assets under management implied an annualized effective fee rate of 37.8 bps and 38.9 bps for the six months ended June 30, 2026 and 2025, respectively. The decrease in the implied annualized effective fee rate is primarily due to a shift in the mix of assets under management.
Total investment advisory and administration fees from closed-end funds compared with average assets under management implied an annualized effective fee rate of 89.3 bps and 89.1 bps for the six months ended June 30, 2026 and 2025, respectively.
Distribution and service fees increased from the six months ended June 30, 2025, primarily due to higher average assets under management in U.S. open-end funds.
Expenses
| (in thousands) |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Employee compensation and benefits | $ | 119,208 | $ | 111,194 | $ | 8,014 | 7.2 | % | |||||||||||||||
| Distribution and service fees | 33,227 | 30,895 | $ | 2,332 | 7.5 | % | |||||||||||||||||
| General and administrative | 37,857 | 35,247 | $ | 2,610 | 7.4 | % | |||||||||||||||||
| Depreciation and amortization | 5,180 | 4,732 | $ | 448 | 9.5 | % | |||||||||||||||||
| Total expenses | $ | 195,472 | $ | 182,068 | $ | 13,404 | 7.4 | % | |||||||||||||||
Employee compensation and benefits increased from the six months ended June 30, 2025, primarily due to higher incentive compensation of $4.5 million associated with increased revenue and higher salaries of $2.2 million.
Distribution and service fees increased from the six months ended June 30, 2025, primarily due to higher average assets under management in U.S. open-end funds.
General and administrative expenses increased from the six months ended June 30, 2025, primarily due to fund organization costs related to the RQI rights offering and increased investments in scaling the Company's ETF vehicles of $1.4 million, higher expenses paid on behalf of certain Company-sponsored funds totaling $0.5 million and higher information technology related costs of $0.5 million.
Operating Margin
Operating margin for the six months ended June 30, 2026 increased to 34.5% from 32.7% for the six months ended June 30, 2025.
Non-operating Income (Loss)
| (in thousands) |
Six Months Ended June 30, 2026
|
||||||||||||||||
|
Consolidated
Funds (1)
|
Corporate - Seed and Other |
Total | |||||||||||||||
| Interest and dividend income | $ | 1,875 | $ | 8,650 | $ | 10,525 | |||||||||||
|
Gain (loss) from investments-net
|
8,130 | 7,067 | 15,197 | ||||||||||||||
| Foreign currency gain (loss)-net | - | 593 | 593 | ||||||||||||||
| Total non-operating income (loss) | 10,005 | 16,310 | 26,315 | ||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (5,075) | - | (5,075) | ||||||||||||||
| Non-operating income (loss) attributable to the Company | $ | 4,930 | $ | 16,310 | $ | 21,240 | |||||||||||
| (in thousands) |
Six Months Ended June 30, 2025
|
||||||||||||||||
|
Consolidated
Funds (1)
|
Corporate - Seed and Other |
Total | |||||||||||||||
| Interest and dividend income | $ | 3,243 | $ | 8,443 | $ | 11,686 | |||||||||||
|
Gain (loss) from investments-net
|
9,117 | 1,151 | 10,268 | ||||||||||||||
| Foreign currency gain (loss)-net | (253) | (3,442) | (3,695) | ||||||||||||||
| Total non-operating income (loss) | 12,107 | 6,152 | 18,259 | ||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (8,434) | - | (8,434) | ||||||||||||||
| Non-operating income (loss) attributable to the Company | $ | 3,673 | $ | 6,152 | $ | 9,825 | |||||||||||
_________________________
(1)Represents seed investments in funds that we are required to consolidate under U.S. GAAP.
Income Taxes
The Company's effective income tax rate for the six months ended June 30, 2026 was 26.1%, compared with 22.1% for the six months ended June 30, 2025. The higher effective income tax rate in 2026 was primarily attributable to the tax impact of the vesting and delivery of restricted stock units.
Reconciliations of U.S. GAAP to As Adjusted Financial Results
Management believes that use of the following as adjusted (non-GAAP) financial results provides greater transparency into the Company's operating performance. In addition, these as adjusted financial results are used to prepare the Company's internal management reports that are used in evaluating its business. While management believes that these as adjusted financial results are useful in evaluating operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP.
Net Income Attributable to Common Stockholders and Diluted Earnings per Share
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net income attributable to common stockholders, U.S. GAAP | $ | 49,343 | $ | 36,849 | $ | 91,711 | $ | 76,627 | ||||||||||||||||||
|
Seed investments-net (1)
|
(8,974) | (3,523) | (12,273) | (3,573) | ||||||||||||||||||||||
|
Accelerated vesting of restricted stock units
|
771 | 1,835 | 767 | 2,204 | ||||||||||||||||||||||
| Fund launch and rights offering costs | 1,264 | - | 1,599 | - | ||||||||||||||||||||||
|
Other non-recurring expenses (2)
|
- | - | - | 616 | ||||||||||||||||||||||
| Foreign currency (gain) loss-net | 166 | 2,742 | (593) | 3,711 | ||||||||||||||||||||||
|
Tax effects of adjustments above
|
1,928 | (219) | 3,228 | (657) | ||||||||||||||||||||||
|
Tax effects of discrete tax items (3)
|
(530) | (360) | 221 | (3,251) | ||||||||||||||||||||||
| Net income attributable to common stockholders, as adjusted | $ | 43,968 | $ | 37,324 | $ | 84,660 | $ | 75,677 | ||||||||||||||||||
| Diluted weighted average shares outstanding | 51,861 | 51,471 | 51,729 | 51,445 | ||||||||||||||||||||||
| Diluted earnings per share, U.S. GAAP | $ | 0.95 | $ | 0.72 | $ | 1.77 | $ | 1.49 | ||||||||||||||||||
|
Seed investments-net (1)
|
(0.17) | (0.07) | (0.24) | (0.07) | ||||||||||||||||||||||
|
Accelerated vesting of restricted stock units
|
0.02 | 0.04 | 0.02 | 0.04 | ||||||||||||||||||||||
| Fund launch and rights offering costs | 0.02 | - | 0.03 | - | ||||||||||||||||||||||
|
Other non-recurring expenses (2)
|
- | - | - | 0.01 | ||||||||||||||||||||||
| Foreign currency (gain) loss-net | - | * | 0.05 | (0.01) | 0.07 | |||||||||||||||||||||
|
Tax effects of adjustments above
|
0.04 | - | * | 0.06 | (0.01) | |||||||||||||||||||||
|
Tax effects of discrete tax items (3)
|
(0.01) | (0.01) | 0.01 | (0.06) | ||||||||||||||||||||||
| Diluted earnings per share, as adjusted | $ | 0.85 | $ | 0.73 | $ | 1.64 | $ | 1.47 | ||||||||||||||||||
_________________________
* Amounts round to less than $0.01 per share.
(1)Represents the impact of consolidated funds and the net effect of corporate seed investment performance.
(2)Represents the reimbursement of filing fees paid by certain members of senior leadership for the six months ended June 30, 2025.
(3)Includes excess tax benefits/deficiencies related to the vesting and delivery of restricted stock units and unrecognized tax benefit adjustments.
Reconciliations of U.S. GAAP to As Adjusted Financial Results
Revenue, Expenses, Operating Income and Operating Margin
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| (in thousands, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenue, U.S. GAAP | $ | 152,730 | $ | 136,126 | $ | 298,369 | $ | 270,593 | |||||||||||||||
|
Fund related amounts (1)
|
(893) | (806) | (2,268) | (1,483) | |||||||||||||||||||
| Revenue, as adjusted | $ | 151,837 | $ | 135,320 | $ | 296,101 | $ | 269,110 | |||||||||||||||
| Expenses, U.S. GAAP | $ | 99,955 | $ | 92,799 | $ | 195,472 | $ | 182,068 | |||||||||||||||
|
Fund related amounts (1)
|
(1,228) | (1,102) | (2,804) | (2,042) | |||||||||||||||||||
|
Accelerated vesting of restricted stock units
|
(771) | (1,835) | (767) | (2,204) | |||||||||||||||||||
| Fund launch and rights offering costs | (1,264) | - | (1,599) | - | |||||||||||||||||||
|
Other non-recurring expenses (2)
|
- | - | - | (616) | |||||||||||||||||||
| Expenses, as adjusted | $ | 96,692 | $ | 89,862 | $ | 190,302 | $ | 177,206 | |||||||||||||||
| Operating income, U.S. GAAP | $ | 52,775 | $ | 43,327 | $ | 102,897 | $ | 88,525 | |||||||||||||||
|
Fund related amounts (1)
|
335 | 296 | 536 | 559 | |||||||||||||||||||
|
Accelerated vesting of restricted stock units
|
771 | 1,835 | 767 | 2,204 | |||||||||||||||||||
| Fund launch and rights offering costs | 1,264 | - | 1,599 | - | |||||||||||||||||||
|
Other non-recurring expenses (2)
|
- | - | - | 616 | |||||||||||||||||||
| Operating income, as adjusted | $ | 55,145 | $ | 45,458 | $ | 105,799 | $ | 91,904 | |||||||||||||||
| Operating margin, U.S. GAAP | 34.6 | % | 31.8 | % | 34.5 | % | 32.7 | % | |||||||||||||||
| Operating margin, as adjusted | 36.3 | % | 33.6 | % | 35.7 | % | 34.2 | % | |||||||||||||||
_________________________
(1)Represents the impact of consolidated funds and expenses incurred on behalf of certain Company-sponsored funds.
(2)Represents the reimbursement of filing fees paid by certain members of senior leadership for the six months ended June 30, 2025.
Non-operating Income (Loss)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Non-operating income (loss), U.S. GAAP | $ | 19,238 | $ | 10,507 | $ | 26,315 | $ | 18,259 | |||||||||||||||
|
Seed investments-net (1)
|
(15,532) | (8,742) | (17,884) | (12,566) | |||||||||||||||||||
| Foreign currency (gain) loss-net | 166 | 2,742 | (593) | 3,711 | |||||||||||||||||||
| Non-operating income (loss), as adjusted | $ | 3,872 | $ | 4,507 | $ | 7,838 | $ | 9,404 | |||||||||||||||
_________________________
(1)Represents the impact of consolidated funds and the net effect of corporate seed investment performance.
Changes in Financial Condition, Liquidity and Capital Resources
We seek to maintain a balance sheet that supports our business strategies and provides the appropriate amount of liquidity at all times.
Net liquid assets
Our current financial condition is highly liquid and is primarily comprised of cash and cash equivalents, U.S. Treasury securities, liquid seed investments and other current assets. Liquid assets are reduced by current liabilities (together, net liquid assets).
The table below summarizes net liquid assets:
| (in thousands) |
June 30, 2026 |
December 31, 2025 |
|||||||||
| Cash and cash equivalents | $ | 59,154 | $ | 145,452 | |||||||
| U.S. Treasury securities | 159,322 | 109,480 | |||||||||
| Liquid seed investments-net | 135,791 | 148,315 | |||||||||
| Other current assets | 81,897 | 78,874 | |||||||||
| Current liabilities | (80,825) | (115,115) | |||||||||
| Net liquid assets | $ | 355,339 | $ | 367,006 | |||||||
Cash and cash equivalents
Cash and cash equivalents are on deposit with major national financial institutions and include short-term, highly liquid investments, which are readily convertible into cash.
U.S. Treasury securities
U.S. Treasury securities, recorded at fair value, are directly issued by the U.S. government and are classified as trading investments.
Liquid seed investments-net
Liquid seed investments, recorded at fair value, are generally traded in active markets on major exchanges and can typically be liquidated within a normal settlement cycle. Liquid seed investments include securities held directly for the purpose of establishing performance track records, the Company's economic interest in certain consolidated funds which are presented net of noncontrolling interests and seed investments in funds that are not consolidated.
Other current assets
Other current assets primarily represent investment advisory and administration fees receivable. We perform a review of our receivables on an ongoing basis to assess collectability and, based on our analysis as of June 30, 2026, no allowance for uncollectible accounts was required.
Current liabilities
Current liabilities include accrued compensation and benefits, distribution and service fees payable, operating lease obligations due within 12 months, certain income taxes payable and certain other liabilities and accrued expenses.
Future liquidity needs
Our business may become capital intensive over time to support growth initiatives. Potential uses of capital may include seeding or co-investing in new strategies and investment vehicles, funding the upfront costs associated with product offerings and making various investments to grow our business, among other things. In order to provide us with additional financial flexibility to pursue these opportunities, we have a $100.0 million senior unsecured revolving credit facility maturing on August 15, 2029.
We have committed to invest up to a total of $175.0 million in certain of our investment vehicles, of which $38.5 million remained unfunded as of June 30, 2026. The timing for funding the remaining portion of our commitments is uncertain.
Cash flows
Our cash flows generally result from the operating activities of our business, with investment advisory and administration fees being the most significant contributor.
The condensed consolidated statements of cash flows on a GAAP basis include amounts attributable to certain funds that we are required to consolidate. The adjusted cash flow data provided below excludes amounts attributable to these consolidated funds. While management believes that this adjusted cash flow data is useful in evaluating the Company's ability to fund future operating, investing and financing activities, this information should be considered supplemental in nature and not as a substitute for the related cash flow data prepared in accordance with U.S. GAAP.
The table below reconciles our cash flows presented on a GAAP basis to the adjusted cash flows excluding our consolidated funds:
|
Six Months Ended June 30, |
|||||||||||||||||
| (in thousands) | Cash flows - GAAP basis | Cash flows - Consolidated Funds |
Adjusted Cash flows - Excluding Consolidated Funds |
||||||||||||||
| Cash Flow Data: | |||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 16,025 | $ | (43,566) | $ | 59,591 | |||||||||||
| Net cash provided by (used in) investing activities | (59,869) | - | (59,869) | ||||||||||||||
| Net cash provided by (used in) financing activities | (40,583) | 45,104 | (85,687) | ||||||||||||||
| Net increase (decrease) in cash and cash equivalents | (84,427) | 1,538 | (85,965) | ||||||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | (333) | - | (333) | ||||||||||||||
| Cash and cash equivalents, beginning of the period | 146,604 | 1,152 | 145,452 | ||||||||||||||
| Cash and cash equivalents, end of the period | $ | 61,844 | $ | 2,690 | $ | 59,154 | |||||||||||
For details of the Company's GAAP basis cash flows from operating, investing and financing activities, please refer to the condensed consolidated statements of cash flows included in Part I, Item 1 of this filing.
Cash flows from operating activities, excluding amounts attributable to consolidated funds, primarily consisted of net income adjusted for certain non-cash income and expense items and changes in working capital. Cash flows used in investing activities, excluding amounts attributable to consolidated funds, included net purchases of U.S. Treasury securities held for corporate purposes of $50.3 million and additional subscriptions into Cohen & Steers Income Opportunities REIT, Inc. of $30.7 million, partially offset by net redemptions of seed investments in the ETFs of $18.2 million. Cash flows used in financing activities, excluding amounts attributable to consolidated funds, included dividends paid to stockholders of $69.1 million and repurchases of common stock to satisfy employee withholding tax obligations on the vesting and delivery of restricted stock units of $17.3 million.
Contractual Obligations, Commitments and Contingencies
Contractual Obligations
The Company's material contractual obligations, commitments and contingencies at June 30, 2026 include operating leases, investment commitments, and purchase obligations. As of June 30, 2026, there have been no material changes to our contractual obligations from our Annual Report on Form 10-K for the year ended December 31, 2025 other than the items described below.
Investment Commitments
Refer to Note 11, Commitments and Contingencies, in the notes to the condensed consolidated financial statements included in Part I of this filing for further discussion.
Dividends
Subject to the approval of our board of directors, we anticipate paying dividends. When determining whether to pay a dividend, we consider general economic and business conditions, our strategic plans, our results of operations and financial
condition, cash flows and liquidity, contractual, legal and regulatory restrictions on the payment of dividends, if any, by us and our subsidiaries and such other factors deemed relevant.
On July 30, 2026, we declared a quarterly dividend on our common stock in the amount of $0.67 per share. This dividend will be payable on August 20, 2026 to stockholders of record at the close of business on August 10, 2026.
Critical Accounting Estimates
A complete discussion of our critical accounting estimates is included in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025. There were no changes to the Company's critical accounting estimates since December 31, 2025.
Cohen & Steers Inc. published this content on July 31, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 31, 2026 at 12:35 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]