Exhibit 99.1

News Release

Waddell & Reed Financial, Inc. Reports Second Quarter Results

Overland Park, KS, Jul. 26, 2016 — Waddell & Reed Financial, Inc. (NYSE: WDR) today reported second quarter 2016 net income(1) of $33.7 million, or $0.41 per diluted share, compared to net income of $37.0 million, or $0.45 per diluted share, during the prior quarter and net income of $67.4 million, or $0.80 per diluted share, during the second quarter of 2015.  Operating income was $53.8 million during the current quarter and the operating margin was 16.8%, compared to $71.4 million and 22.1%, respectively during the prior quarter and $111.0 million and 28.2%, respectively during the same quarter in 2015.

The second quarter of 2016 included $24.1 million in charges related to severance, accelerated amortization of deferred acquisition costs (“DAC”) and Project E implementation costs.  Excluding these charges, adjusted net income(2) was $48.9 million, or $0.59 per diluted share, while adjusted operating income and the adjusted operating margin were $77.9 million and 24.4%, respectively.  In addition to reporting results in accordance with generally accepted accounting principles (“GAAP”), management believes adjusting results to exclude items provides investors with financial measures that better reflect the company’s core operating performance and allow for more appropriate comparisons to prior periods.  However, non-GAAP financial measures should not be considered a substitute for performance measures calculated in accordance with GAAP.  A schedule reconciling non-GAAP financial measures to GAAP net income and earnings per diluted share is provided below.

During the quarter the following charges were recorded:

·                  $7.1 million for severance and related charges to U&D indirect costs (unaffiliated distribution $2.2 million; broker-dealer $4.9 million);

·                  $9.8 million for severance and related charges to compensation and related costs;

·                  $5.9 million related to the accelerated amortization of DAC to U&D direct costs (broker-dealer) due to a share class conversion; and

·                  $1.3 million related to costs associated with the implementation of technology to Project E to U&D indirect costs (broker-dealer).

(1)  Net income represents net income attributable to Waddell & Reed Financial, Inc.

(2)  Non-GAAP adjusted results provide an understanding of our business by excluding the effects of items that do not reflect the ordinary results of our operations.

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Adjusted Results

Reconciliation to GAAP

(Amounts in thousands, except for per share data)

Business Discussion

As of June 30, 2016, assets under management declined 9% sequentially to $86 billion due mainly to outflows from our Institutional and unaffiliated distribution channels.  Our Institutional channel experienced three material redemptions during the quarter that accounted for $4.9 billion of the $5.5 billion in total outflows.  Our unaffiliated distribution channel experienced $3.9 billion in outflows of which the Asset Strategy funds accounted for $2.6 billion.

“The company is not without challenges,” said Philip J. Sanders, Chief Investment Officer and incoming Chief Executive Officer of Waddell & Reed Financial, Inc.  “Our top priorities are improving investment performance, reigniting sales and executing on our technology initiatives across the company.”  Henry J. Herrmann, Chairman and Chief Executive Officer added; “we have a strong executive team that is united in its focus on achieving these objectives and I am confident that Phil is the right person to lead the organization through these difficult times.”

Management Fee Revenue Analysis

Management fees declined 3% sequentially, while average assets under management declined 5%.  Fees declined at a lesser rate than average assets under management due to an improvement in the effective fee rate due to a mix-shift in the asset base that increased the average fee rate.  Compared to the same quarter last year, management fees declined 24% due to a 26% decline in average assets under management, which was partly offset by a mix-shift in the asset base that increased the average fee rate.

Average assets under management were $90.8 billion during the current quarter, compared to $95.7 billion during the prior quarter and $123.5 billion during the second quarter of 2015.   The effective fee

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rate for the current quarter was 62.4 basis points compared to 60.8 basis points and 60.4 basis points during the first quarter of 2016 and second quarter of 2015, respectively.

Underwriting and Distribution Analysis

Underwriting and Distribution Revenues

Revenues were largely unchanged sequentially as lower sales and, to a lesser extent, lower asset levels in our retail unaffiliated channel were offset by higher advisory fee revenues in our broker-dealer channel.  Compared to the same period last year, revenues declined 15% due to lower asset-based Rule 12b-1 service and distribution fees across both channels driven by a decrease in average assets under management.

Underwriting and Distribution Costs

The current quarter included charges for severance, accelerated amortization of DAC and costs associated with the implementation of Project E.  These charges totaled $5.9 million in direct expenses and $8.4 million in indirect expenses.

Direct costs rose 2% sequentially; however, excluding the above referenced items, adjusted costs declined 2% due to lower asset-based Rule 12b-1 service and distribution fees in the retail unaffiliated channel and lower commissions.  Indirect costs rose 9%; however, excluding the above referenced items, adjusted costs declined 9% due to workforce reductions, technology costs and travel.

Compared to the second quarter of 2015, direct costs declined 14%; however, excluding the above referenced items, adjusted costs declined 18% due to a decrease in assets under management and lower sales volume.  Indirect costs increased 17%; however, excluding the above referenced items, adjusted costs declined 2% due to lower advertising and sales meeting costs.

Compensation and Related Expense Analysis

Costs increased 10% compared to both the first quarter of 2016 and second quarter of 2015.  The current quarter included severance charges that totaled $9.8 million.  Excluding these charges, adjusted costs declined 8% compared to both the first quarter of 2016 and second quarter of 2015.  The decline was due to lower base salary and payroll taxes from the reduction in workforce and certain employees having exceeded the social security wage base for 2016.

General and Administrative Expense Analysis

Costs were largely unchanged sequentially as lower dealer servicing costs were offset by higher IT costs.  Compared to the same period last year, costs declined 31% due in lower dealer servicing costs and IT costs, and to a lesser degree, a decline in advertising costs.

Investment and Other Income

During the first quarter of 2016, we entered into a number of total return swap contracts to serve as an economic hedge against the market risk associated with our investments in sponsored funds.  We experienced a $9.6 million investment loss during the first quarter prior to our hedging strategy being fully implemented.  During the current quarter, higher dividend income and gains on redemptions of

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investments classified as available for sale were largely offset by net losses experienced from our hedged investment portfolio.

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Unaudited Consolidated Statement of Income

(Amounts in thousands, except for per share data)

Net Distribution Cost Analysis

(Amounts in thousands)

(1) Retail Unaffiliated Distribution was previously referred to as the “Wholesale channel”

(2) Retail Broker-Dealer was previously referred to as the “Advisors channel”

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Changes in Assets Under Management

(Amounts in millions)

* Sales is primarily gross sales (net of sales commissions).  This amount also includes net reinvested dividends & capital gains and investment income.

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Supplemental Information

* AUA represent Assets Under Administration

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Unaudited Balance Sheet Information

Schedule of Selected Items

In April 2016, we granted 2,213,850 shares of restricted stock pursuant to our stock incentive plan

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Unaudited Consolidated Statement of Income

(Amounts in thousands, except for per share data)