Stock Markets March 26, 2026

GAM trims 2025 losses through cost cuts but says profit recovery will be slower

Swiss asset manager narrows adjusted pretax loss as assets under management fall; profitability now expected later than prior guidance

By Maya Rios
GAM trims 2025 losses through cost cuts but says profit recovery will be slower

GAM reported a reduced net loss for fiscal 2025 after implementing cost reductions that partly offset weaker fee income. Adjusted pretax losses narrowed, but assets under management declined and the firm said a return to profitability in 2026 is likely to be pushed back from earlier expectations. Management is prioritizing growth and sustainable net inflows while expressing confidence in the group's strategic foundations.

Key Points

  • GAM narrowed its net loss for fiscal 2025 to CHF 74.2 million, aided by cost reductions.
  • Adjusted pretax loss improved to CHF 60.2 million, but progress was tempered by falling net fee and commission income.
  • Assets under management decreased to CHF 12.5 billion due to net outflows and asset disposals; management now expects the return to profitability to take longer than previously targeted.

Swiss asset manager GAM posted a narrower net loss for fiscal year 2025, reporting a loss of CHF 74.2 million as expense reductions helped mitigate the effect of sliding fee-based revenue.

On an adjusted pretax basis, GAM's loss improved to CHF 60.2 million for the full year. Company statements attributed the improvement principally to cost-cutting initiatives implemented during the period. That progress was partly offset by a decrease in net fee and commission income, which weighed on overall results.

During the year, assets under management declined to CHF 12.5 billion. GAM said that the reduction in AUM owed to a combination of net client outflows and asset disposals that took place over the reporting period.

Looking ahead, GAM acknowledged that the timeline for returning to profitability has shifted. The company indicated that a return to profit in 2026 is likely to take longer than it had previously targeted. Management identified its main priorities for the coming year as delivering growth and securing sustainable net inflows.

Despite the revised timeline for profitability, GAM stated that it remains confident in the strength of its strategic foundations and that those foundations support the potential for sustainable growth over time.


Corporate outlook and near-term focus

GAM's near-term strategy centers on rebuilding net inflows and focusing on growth while maintaining the cost discipline that contributed to the improved adjusted pretax result. The firm has signaled that management views both revenue performance and the pace of asset inflows as critical to restoring profitability on a timetable that is now expected to be longer than previously anticipated.

Financial context preserved from the report

  • Net loss for fiscal 2025: CHF 74.2 million.
  • Adjusted pretax loss for the full year: CHF 60.2 million.
  • Assets under management at period end: CHF 12.5 billion.
  • Drivers cited by management: cost reductions, lower net fee and commission income, net outflows and asset disposals.

The company has signaled a continuation of efforts to translate its strategic position into sustained net inflows and longer-term growth, while acknowledging that the path back to profitability will take longer than earlier plans suggested.

Risks

  • Delayed profitability - GAM now says a return to profit in 2026 is likely to take longer than previously anticipated, creating uncertainty for investors and stakeholders in the asset management sector.
  • Revenue pressure from lower net fee and commission income - continued declines in fee-based revenue could limit the benefit of cost reductions and affect cash flow durability in financial markets and asset management.
  • Ongoing net outflows and asset disposals - reductions in assets under management may constrain revenue generation and growth prospects for the firm and could affect sentiment in the asset management sector.

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