1. DHIL's Q1 2025 revenue increased by 2% year-over-year. 2. AUM slightly decreased to $29.79 billion due to equity outflows. 3. Quarterly dividend of $1.50 per share was approved for payment. 4. Net income attributable to shareholders fell by 20% compared to Q1 2024. 5. The CEO highlighted challenges from the uncertain economic environment.
Despite revenue growth, a significant decrease in net income and increased equity outflows may negatively impact investor sentiment, similar to previous downturns when AUM fell sharply in response to market volatility.
The reported financials highlight shifting trends in AUM and profitability, indicating potential challenges in future quarters that are crucial for DHIL's valuation.
Investors might react quickly to quarterly results, leading to volatility in the stock price before the market adjusts based on long-term outlook.
Diamond Hill Investment Group, Inc. (Nasdaq: DHIL) today reported unaudited financial results for the first quarter of 2025.
"Our differentiated fixed income strategies surpassed $7 billion in AUM in Q1, helping partially offset US equity outflows," said Heather Brilliant, CEO. "The uncertain economic and market environment will likely continue to impact near-term returns for investors across the board. We remain disciplined in seeking investments selling at a discount to underlying value and having patience to wait for that value to be realized."
1 Adjusts the financial measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP") for the impact of market movements on the deferred compensation liability and related economic hedges, and the impact of any consolidated funds. During the first quarter of 2025, the Diamond Hill Core Plus Bond Fund was consolidated. During the first quarter of 2024, no Proprietary Funds were consolidated. The "Proprietary Funds" consist of the Diamond Hill Funds, a series of open-end mutual funds, and the Diamond Hill Securitized Credit Fund, a closed-end registered investment company. The Proprietary Fund consolidated during the applicable period is referred to as the "Consolidated Fund." See the reconciliation to the comparable GAAP financial measure at the end of this earnings release.
2 Adjusts the financial measure calculated in accordance with GAAP for the impact of the Consolidated Fund and investment income related to certain other investments. See the reconciliation to the comparable GAAP financial measure at the end of this earnings release.
The Company's board of directors approved the payment of a regular quarterly cash dividend of $1.50 per common share. The dividend will be paid on June 13, 2025, to the Company's shareholders of record as of the close of business on June 2, 2025.
Three Months Ended March 31,
| Data | 2025 | 2024 | % Change |
|---|---|---|---|
| Revenue | $ 37,116,210 | $ 36,294,930 | 2 % |
| Net income | $ 10,372,850 | $ 13,015,933 | (20) % |
| Earnings per share attributable to common shareholders - diluted | $ 3.77 | $ 4.62 | (18) % |
Change in AUM and AUA
| Data | 2025 | 2024 |
|---|---|---|
| AUM at end of the period | $ 29,792 | $ 29,979 |
| Total AUM and AUA at end of period | $ 31,596 | $ 31,919 |
Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment. An independent active asset manager with significant employee ownership, Diamond Hill's investment strategies include differentiated U.S. and international equity, alternative long-short equity and fixed income.
Throughout this press release, the Company may make "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, as amended (the "PSLR Act"), Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are provided under the "safe harbor" protection of the PSLR Act of 1995.
SOURCE Diamond Hill Investment Group, Inc.