Grade: A — Strong Financial Health
Framework: Financial-sector metrics (AUM growth, fee revenue composition, ROE, capital return) + forensic accounting principles
Data: SEC EDGAR 10-K/A (Filed 2026-03-12, FY ended December 31, 2025) + Yahoo Finance
Auditor: PricewaterhouseCoopers LLP — Unqualified opinion
Note: Beneish M-Score and Altman Z-Score are not applicable to diversified financial services/asset management companies due to fundamentally different financial statement structures.
One-line verdict: Ameriprise Financial is a diversified wealth management and asset management firm that delivered clean FY2025 results. Net income grew 5% to $3.56 billion on total net revenues of $18.5 billion (+7%). Management and financial advice fees of $11.1 billion (+9.5%) represent 60% of total revenues — a high-quality, recurring revenue base. CFFO/NI of 2.34x is exceptional, reflecting the asset-light nature of the fee-based business model. Zero goodwill, cash of $63.7 billion covering debt of $5.9 billion by 10.8x, and accruals ratio of -2.5% confirm a fortress balance sheet with conservative accounting.
| Metric | Result |
|---|---|
| Net Income | **$3.56B** (+5% YoY) |
| Total Net Revenues | **$18.5B** (+7% YoY) |
| Management & Financial Advice Fees | **$11.1B** (60% of revenue) |
| CFFO/NI | **2.34x** — exceptional |
| Cash/Debt | **$63.7B / $5.9B = 10.8x** |
| Goodwill | **Zero** |
| EPS (Diluted) | **$36.28** (+10% YoY) |
| Accruals Ratio | **-2.5%** — very conservative |
Revenue Quality: Fee-Based and Growing
Per the consolidated statements of operations:
| Revenue Source | 2025 | 2024 | 2023 | Growth |
|---|---|---|---|---|
| Management & Financial Advice Fees | $11,109M | $10,143M | $8,907M | +9.5% |
| Distribution Fees | $2,117M | $2,060M | $1,931M | +2.8% |
| Net Investment Income | $3,570M | $3,648M | $3,206M | -2.1% |
| Premiums & Policy Charges | $1,587M | $1,559M | $1,539M | +1.8% |
| Other Revenues | $528M | $516M | $513M | +2.3% |
| **Total Revenues** | **$18,911M** | **$17,926M** | **$16,096M** | **+5.5%** |
| Banking Interest Expense | ($431M) | ($662M) | ($561M) | -34.9% |
| **Total Net Revenues** | **$18,480M** | **$17,264M** | **$15,535M** | **+7.0%** |
Management and financial advice fees are the crown jewel — 60% of total revenue, growing at nearly 10% annually, driven by market appreciation and net flows into fee-based advisory accounts.
The fee revenue breaks down further:
Advisory fees of $6.5 billion — charged as a percentage of client assets — represent the stickiest, most predictable revenue stream. This is high-quality recurring revenue.
Profitability
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net Income | $3,563M | $3,401M | $2,556M |
| EPS (Diluted) | $36.28 | $33.05 | $23.71 |
| Pretax Income | $4,504M | $4,267M | $3,234M |
| Effective Tax Rate | 20.9% | 20.3% | 21.0% |
EPS growth of 10% (+$3.23) exceeds net income growth of 5%, reflecting share repurchase activity. The effective tax rate is stable in the 20-21% range — no signs of aggressive tax positioning.
The 2023-to-2025 earnings trajectory is strong: pretax income grew 39% ($4,504M vs. $3,234M) over two years, demonstrating operating leverage in the fee-based model as markets rose.
Segment Performance
Per the filing, Ameriprise operates through three segments:
Advice & Wealth Management — The core segment. Advisory fees of $6,481M and financial planning fees of $496M together represent $6,977M. The segment benefits from wrap account assets that grow with market appreciation.
Asset Management — Columbia Threadneedle Investments. Retail asset management fees of $2,170M and institutional fees of $671M. Earns fees on AUM that fluctuate with market conditions and net flows.
Retirement & Protection Solutions — Insurance products including annuities and life insurance. Premiums and policy charges of $1,587M. The filing notes $1,004M in "change in fair value of market risk benefits" — a non-cash item related to guarantees embedded in variable annuity products.
The 18-Point Screening
Revenue Quality
| # | Check | Result | Detail |
|---|---|---|---|
| A1 | DSO Change | PASS | DSO 295 days (reflects advisory billing cycles), -11 days YoY |
| A2 | AR vs Revenue Growth | PASS | AR growth 3.1% vs. revenue 7.0% |
| A3 | Revenue vs CFFO | PASS | Revenue +7.0%, CFFO +26.2% — cash outpacing revenue |
Cash Flow Quality
| # | Check | Result | Detail |
|---|---|---|---|
| C1 | CFFO vs Net Income | PASS | CFFO/NI = 2.34 — exceptional |
| C2 | Free Cash Flow | PASS | FCF $8.2B, FCF/NI = 2.29 |
| C3 | Accruals Ratio | PASS | -2.5% — very conservative |
| C4 | Cash vs Debt | PASS | $63.7B covers $5.9B debt |
The 2.34x CFFO/NI ratio reflects the asset-light, fee-based model where revenue is collected as cash fees with minimal capital expenditure requirements. The high cash balance of $63.7 billion includes client deposits and insurance reserves — not all freely available capital — but the ratio of $63.7B to $5.9B debt provides massive coverage.
Balance Sheet
| # | Check | Result | Detail |
|---|---|---|---|
| D1 | Goodwill | PASS | Zero goodwill — organic growth model |
| E1 | Acquirer FCF | PASS | FCF after acquisitions positive |
| E2 | Goodwill Surge | PASS | No goodwill |
Manipulation Score
| # | Check | Result | Detail |
|---|---|---|---|
| F1 | Beneish M-Score | N/A | Not applicable to financial services companies |
| — | Altman Z-Score | N/A | Not applicable to financial services companies |
Key Risks from the 10-K
1. Market Sensitivity
Advisory fees and asset management fees are calculated as a percentage of assets under management or advisement. A sustained market decline directly reduces fee revenue without any change in client activity. The 39% pretax income growth over 2023-2025 was significantly amplified by rising equity markets; a reversal would compress earnings proportionally.
2. Variable Annuity Guarantees
The $1,004M "change in fair value of market risk benefits" in 2025 reflects embedded guarantees in legacy variable annuity products. These guarantees create non-economic volatility in GAAP earnings and represent contingent liabilities that could become material in a prolonged market downturn.
3. Advisor Retention
The Advice & Wealth Management segment depends on retaining experienced financial advisors who manage client relationships. Loss of top advisors — to competitors, retirement, or firm culture changes — would directly impact client asset retention and fee revenue.
4. Regulatory Risk
The filing notes exposure to evolving fiduciary standards and regulation by multiple agencies including the SEC, FINRA, and state insurance regulators. Changes to the regulation of investment advice, fee disclosure requirements, or insurance product sales practices could affect the business model.
Financial-Sector Grade Assessment
| Financial-Sector Metric | AMP Result | Benchmark | Assessment |
|---|---|---|---|
| Fee Revenue / Total Revenue | 60% | >50% ideal | STRONG PASS |
| CFFO/NI | 2.34x | >0.8x | STRONG PASS |
| Goodwill | Zero | Low | STRONG PASS |
| Debt Coverage | 10.8x | >1x | STRONG PASS |
| Accruals Ratio | -2.5% | Low | STRONG PASS |
| Revenue Growth | +7.0% | Positive | PASS |
| EPS Growth | +10% | Positive | PASS |
Grade: A. Ameriprise is a textbook high-quality financial services company: 60% of revenue from recurring management and advisory fees, zero goodwill, exceptional cash conversion at 2.34x, and a fortress-level cash position. The only structural risk is market sensitivity — in a sustained downturn, fee revenues and earnings would decline proportionally. But the balance sheet and accounting are impeccable.
**Disclaimer**: This report is based on Ameriprise Financial's FY2025 10-K/A filed with SEC EDGAR on March 12, 2026. This is NOT investment advice.
Data: SEC EDGAR 10-K/A + Yahoo Finance
Auditor: PricewaterhouseCoopers LLP (Unqualified opinion)
Fiscal year ended: December 31, 2025