Westwood Holdings Group, Inc. Reports Second Quarter 2025 Results

Assets Under Management totaled $18.3 billion, up from $16.8 billion last yearWHG joined the Russell 2000 Index in our 24th Year as a Public CompanyEnhanced Midstream Energy ETF (MDST) surpassed $100 million with a 10.2% p.a. Distribution RateWEBs Investments, in Partnership with WHG, Expands Defined Volatility℠ ETF Suite with Launch of 11 Sector Funds DALLAS, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported second quarter 2025 earnings. Significant items included: Multiple investment strategies beating their primary benchmarks included SmallCap Value, AllCap Value, MidCap Value, Dividend Select, Alternative Income, Credit Opportunities, Enhanced Midstream Income and Enhanced Energy Income.AllCap Value posted a top third ranking vs. peers and MidCap Value, Credit Opportunities and Enhanced Midstream Income each posted top quarter rankings.Quarterly revenues totaled $23.1 million vs. $23.3 million in the first quarter and $22.7 million a year ago. Income of $1.0 million compared with $0.5 million in the first quarter and a $2.2 million loss in 2024's second quarter.Non-GAAP Economic Earnings of $2.8 million compared with $2.5 million in the first quarter and $0.5 million of Economic Loss in the second quarter of 2024.Westwood held $33.1 million in cash and liquid investments as of June 30, 2025, up $6.0 million from the first quarter. Stockholders' equity totaled $120.3 million and we carry no debt.We declared a cash dividend of $0.15 per common share, payable on October 1, 2025 to stockholders of record on September 2, 2025. Brian Casey, Westwood’s CEO, commented, "We delivered exceptional progress this quarter with assets under management growing to $18.3 billion from $16.8 billion a year ago while achieving several significant milestones including our addition to the Russell 2000 index, thereby enhancing our institutional accessibility, and our MDST ETF surpassed the $100 million threshold. These achievements, combined with our strongest intermediary sales quarter since 2022 and strong performance by numerous investment strategies, demonstrate continued momentum across our diversified platform." Firmwide assets under management and advisement totaled $18.3 billion, consisting of assets under management ("AUM") of $17.3 billion and assets under advisement ("AUA") of $0.9 billion. While revenues were flat compared to the first quarter, second quarter net income of $1.0 million compared to the first quarter's net income of $0.5 million on lower operating expenses, primarily related to the timing of compensation and benefits payments. Diluted earnings per share ("EPS") of $0.12 compared to $0.05 for the first quarter. Non-GAAP Economic Earnings of $2.8 million, or $0.32 per share, compared with $2.5 million, or $0.29 per share, in the first quarter. Second quarter net income of $1.0 million compared favorably to last year's second quarter loss of $2.2 million due to changes in the fair value of contingent consideration in 2024 offset by an increase in income tax expense in 2025. Diluted EPS of $0.12 compared with a loss of $0.27 per share for 2024's second quarter. Non-GAAP Economic Earnings were $2.8 million, or $0.32 per share, compared with an Economic Loss of $0.5 million, or $0.06 per share, in the second quarter of 2024. Economic Earnings (Loss) and Economic EPS are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers in the attached tables. Westwood will host a conference call to discuss second quarter 2025 results and other business matters at 4:30 p.m. Eastern time today. To join the conference call, please register here: https://register-conf.media-server.com/register/BI2402c4ea40024a52ba458853a1c8a596 After registering, you will be provided with a dial-in number containing a personalized PIN. To view the webcast, please register here: https://edge.media-server.com/mmc/p/9epbqgq5 Once registered, an email will be sent with important details for this conference call, as well as a unique Registrant ID. ABOUT WESTWOOD HOLDINGS GROUP Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood’s client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors’ short and long-term needs. Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values - integrity, reliability, responsiveness, adaptability, teamwork and driving results - and underpin our constant pursuit of excellence. For more information on Westwood, please visit westwoodgroup.com. Forward-looking Statements Statements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as “anticipate,” “believe,” “expect,” “could,” and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation: the composition and market value of our AUM and AUA; our ability to maintain our fee structure in light of competitive fee pressures; risks associated with actions of activist stockholders; distributions to our common stockholders have included and may in the future include a return of capital; inclusion of foreign company investments in our AUM; regulations adversely affecting the financial services industry; our ability to maintain effective cyber security; litigation risks; our ability to develop and market new investment strategies successfully; our reputation and our relationships with current and potential customers; our ability to attract and retain qualified personnel; our ability to perform operational tasks; our ability to select and oversee third-party vendors; our dependence on the operations and funds of our subsidiaries; our ability to maintain effective information systems; our ability to prevent misuse of assets and information in the possession of our employees and third-party vendors, which could damage our reputation and result in costly litigation and liability for our clients and us; our stock is thinly traded and may be subject to volatility; competition in the investment management industry; our ability to avoid termination of client agreements and the related investment redemptions; the significant concentration of our revenues in a small number of customers; we have made and may continue to make business combinations as a part of our business strategy, which may present certain risks and uncertainties; our relationships with investment consulting firms; our ability to identify and execute on our strategic initiatives; our ability to declare and pay dividends; our ability to fund future capital requirements on favorable terms; our ability to properly address conflicts of interest; our ability to maintain adequate insurance coverage; our ability to maintain an effective system of internal controls; and the other risks detailed from time to time in Westwood’s SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2024 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, Westwood is not obligated to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. SOURCE: Westwood Holdings Group, Inc. (WHG-G)CONTACT:Westwood Holdings Group, Inc.Terry ForbesChief Financial Officer and Treasurer(214) 756-6900 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share and share amounts)(unaudited) Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024REVENUES: Advisory fees: Asset-based$17,955 $17,731 $17,139 Trust fees 5,069 5,429 5,227 Other, net 96 92 322 Total revenues 23,120 23,252 22,688 EXPENSES: Employee compensation and benefits 13,472 14,501 13,638 Sales and marketing 657 760 755 Westwood mutual funds 957 897 855 Information technology 2,704 2,667 2,350 Professional services 1,486 1,613 1,450 General and administrative 2,976 2,882 3,011 Loss from change in fair value of contingent consideration — — 4,807 Total expenses 22,252 23,320 26,866 Net operating income (loss) 868 (68) (4,178)Net investment income 343 383 548 Other income 257 277 224 Income (loss) before income taxes 1,468 592 (3,406)Income tax provision 437 115 (1,193)Net income (loss)$1,031 $477 $(2,213)Less: income (loss) attributable to noncontrolling interest 12 (1) 30 Income (loss) attributable to Westwood Holdings Group, Inc.$1,019 $478 $(2,243)Earnings (loss) per Westwood Holdings Group, Inc. share: Basic$0.12 $0.06 $(0.27)Diluted$0.12 $0.05 $(0.27)Weighted average shares outstanding: Basic 8,404,859 8,253,912 8,218,596 Diluted 8,813,606 8,781,743 8,218,596 Economic Earnings$2,792 $2,514 $(508)Economic EPS$0.32 $0.29 $(0.06)Dividends declared per share$0.15 $0.15 $0.15 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share and share amounts)(unaudited) Six Months Ended June 30, 2025 June 30, 2024REVENUES: Advisory fees: Asset-based$35,686 $33,956 Trust fees 10,498 10,340 Other, net 188 1,124 Total revenues 46,372 45,420 EXPENSES: Employee compensation and benefits 27,973 28,349 Sales and marketing 1,417 1,383 Westwood mutual funds 1,854 1,576 Information technology 5,371 4,640 Professional services 3,099 2,939 General and administrative 5,858 5,912 Loss from change in fair value of contingent consideration — 1,858 Total expenses 45,572 46,657 Net operating income (loss) 800 (1,237)Net investment income 726 1,003 Other income 534 409 Income before income taxes 2,060 175 Income tax provision 552 222 Net income (loss)$1,508 $(47)Less: income (loss) attributable to noncontrolling interest 11 (100)Income attributable to Westwood Holdings Group, Inc.$1,497 $53 Earnings per share: Basic$0.18 $0.01 Diluted$0.17 $0.01 Weighted average shares outstanding: Basic 8,329,803 8,158,812 Diluted 8,798,092 8,438,431 Economic Earnings$5,306 $2,504 Economic EPS$0.60 $0.30 Dividends declared per share$0.30 $0.30 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except par value and share amounts)(unaudited) June 30, 2025 December 31, 2024ASSETS Cash and cash equivalents$15,403 $18,847 Accounts receivable 15,331 14,453 Investments, at fair value (amortized cost of $18,316 and $26,788) 19,768 27,694 Investments under measurement alternative 11,747 10,747 Equity method investments 4,197 4,250 Income taxes receivable 167 295 Other assets 7,076 6,780 Goodwill 39,501 39,501 Deferred income taxes 2,356 2,244 Operating lease right-of-use assets 9,997 2,559 Intangible assets, net 20,035 21,668 Property and equipment, net of accumulated depreciation of $8,716 and $8,424 701 951 Total assets$146,279 $149,989 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued liabilities$5,304 $6,413 Dividends payable 2,430 2,466 Compensation and benefits payable 5,719 10,924 Operating lease liabilities 10,468 3,197 Contingent consideration — 4,657 Total liabilities 23,921 27,657 Stockholders’ Equity: Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,391,817 and 12,137,080, respectively and outstanding 9,408,125 and 9,234,575, respectively 124 122 Additional paid-in capital 203,594 202,239 Treasury stock, at cost – 2,983,692 and 2,902,505, respectively (89,612) (88,277)Retained earnings 6,200 6,207 Total Westwood Holdings Group, Inc. stockholders’ equity 120,306 120,291 Noncontrolling interest in consolidated subsidiary 2,052 2,041 Total equity 122,358 122,332 Total liabilities and stockholders’ equity$146,279 $149,989 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss)$1,508 $(47)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 257 326 Amortization of intangible assets 2,082 2,074 Net change in unrealized (appreciation) depreciation on investments 137 (1,004)Stock-based compensation expense 2,622 2,912 Deferred income taxes (112) (47)Non-cash lease expense 694 546 Fair value change of contingent consideration — 1,858 Changes in operating assets and liabilities: Accounts receivable (878) 70 Other assets (296) 2 Accounts payable and accrued liabilities (1,139) (814)Compensation and benefits payable (5,205) (4,217)Income taxes receivable 128 (740)Other liabilities (795) (664)Net sales of trading securities 7,842 11,430 Contingent consideration (4,442) — Net cash provided by operating activities 2,403 11,685 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (6) (24)Purchases of investments (1,000) (1,500)Additions to internally developed software (449) — Net cash used in investing activities (1,455) (1,524)CASH FLOWS FROM FINANCING ACTIVITIES: Purchases of treasury stock — (1,075)Restricted stock returned for payment of taxes (1,335) (940)Payment of contingent consideration in acquisition (201) (1,815)Cash dividends (2,856) (2,983)Net cash used in financing activities (4,392) (6,813)NET CHANGE IN CASH AND CASH EQUIVALENTS (3,444) 3,348 Cash and cash equivalents, beginning of period 18,847 20,422 Cash and cash equivalents, end of period$15,403 $23,770 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the period for income taxes$535 $1,008 Accrued dividends$2,430 $2,176 Operating lease assets obtained in exchange for operating lease liabilities$8,133 $— WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIESReconciliation of Income (Loss) Attributable to Westwood Holdings Group, Inc. to Economic Earnings (Loss)(in thousands, except per share and share amounts)(unaudited) As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic earnings (loss) and Economic earnings (loss) per share. We provide these measures in addition to, not as a substitute for, income attributable to Westwood Holdings Group, Inc. and earnings per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic earnings (loss) and Economic earnings (loss) per share to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP income attributable to Westwood Holdings Group, Inc. or earnings per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP. We define Economic earnings (loss) as income (loss) attributable to Westwood Holdings Group, Inc. plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic earnings (loss) because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. Although gains and losses from changes in the fair value of contingent consideration are non-cash, we do not add or subtract those back when calculating Economic earnings (loss) because gains and losses on changes in the fair value of contingent consideration are considered regular following an acquisition. In addition, we do not adjust Economic earnings (loss) for tax deductions related to restricted stock expense or amortization of intangible assets. Economic earnings per share represents Economic earnings (loss) divided by diluted weighted average shares outstanding. Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024Income (loss) attributable to Westwood Holdings Group, Inc.$1,019 $478 $(2,243)Stock-based compensation expense 1,295 1,327 1,397 Intangible amortization 1,037 1,045 1,032 Tax benefit from goodwill amortization 136 124 156 Tax impact of adjustments to GAAP income (695) (460) (850)Economic earnings (loss)$2,792 $2,514 $(508)Earnings (loss) per share$0.12 $0.05 $(0.27)Stock-based compensation expense 0.15 0.15 0.17 Intangible amortization 0.11 0.13 0.12 Tax benefit from goodwill amortization 0.02 0.01 0.02 Tax impact of adjustments to GAAP income (0.08) (0.05) (0.10)Economic earnings (loss) per share$0.32 $0.29 $(0.06)Diluted weighted average shares 8,813,606 8,781,743 8,218,596 Six Months Ended June 30, 2025 June 30, 2024Income attributable to Westwood Holdings Group, Inc. $1,497 $53 Stock-based compensation expense 2,622 2,912 Intangible amortization 2,082 2,074 Tax benefit from goodwill amortization 260 281 Tax impact of adjustments to GAAP income (1,155) (2,816)Economic earnings $5,306 $2,504 Earnings per share $0.17 $0.01 Stock-based compensation expense 0.30 0.35 Intangible amortization 0.23 0.24 Tax benefit from goodwill amortization 0.03 0.03 Tax impact of adjustments to GAAP income (0.13) (0.33)Economic earnings per share $0.60 $0.30 Diluted weighted average shares 8,798,092 8,438,431

Westwood Holdings Group, Inc. Reports Second Quarter 2025 Results

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