Westwood Holdings Group IncNYSE: WHG

Westwood Holdings Group, Inc. Reports Third Quarter 2025 Results

· Issued by Westwood Holdings Group Inc via GlobeNewswire

MDST ETF Surpasses $150 million and Captured 30% of September Monthly Midstream ETF Flows
WEBs Partnership Launches Eleven New Sector ETFs
Private Fund Raising Exceeds Expectations

DALLAS, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported third quarter 2025 earnings. Significant items included:

  • Investment strategies beating their primary benchmarks included Income Opportunity, Multi-Asset Income, Alternative Income, Credit Opportunities, Real Estate Income and Tactical Growth.

  • Income Opportunity and Multi-Asset Income each posted top quartile rankings vs. peers and Real Estate Income posted a top decile ranking.

  • Quarterly revenues totaled $24.3 million vs. $23.1 million in the second quarter and $23.7 million a year ago. Income of $3.7 million compared with $1.0 million in the second quarter and $0.1 million in 2024's third quarter.

  • Non-GAAP Economic Earnings of $5.7 million compared with $2.8 million in the second quarter and $1.1 million in the third quarter of 2024.

  • Westwood held $39.2 million in cash and liquid investments as of September 30, 2025, up $6.1 million from the second quarter. Stockholders' equity totaled $123.9 million and we carry no debt.

  • We declared a cash dividend of $0.15 per common share, payable on January 2, 2026 to stockholders of record on December 1, 2025.

Brian Casey, Westwood’s CEO, commented, "The third quarter demonstrated the strength of our diversified platform in multiple ways. Our private fund strategies have already surpassed our annual fundraising goal. Our MDST exchange-traded fund ("ETF") reached $150 million in assets and captured 30% of monthly midstream ETF flows in September, while our partnership with WEBs expanded, adding eleven new Defined Volatility sector ETFs that provide a disciplined approach to potentially boost returns in sector investing. Our long-term performance rankings remain solid, with Income Opportunity maintaining its top decile since-inception ranking and it recently received a four-star Morningstar rating upgrade. As market leadership broadens out and investors seek quality and value, we believe Westwood is well-positioned to capitalize on these opportunities."

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 $1.0 billion.

Third quarter revenues exceeded the second quarter due to higher average AUM. Third quarter net income of $3.7 million beat the second quarter's net income of $1.0 million on higher revenues and unrealized appreciation on private investments, partially offset by higher income taxes. Diluted earnings per share ("EPS") of $0.41 compared to $0.12 for the second quarter. Non-GAAP Economic Earnings of $5.7 million, or $0.64 per share, compared with $2.8 million, or $0.32 per share, in the second quarter.

Third quarter revenues were higher than last year's third quarter due to higher average AUM. Third quarter net income of $3.7 million compared favorably to last year's third quarter income of $0.1 million due to 2025's higher revenues and unrealized appreciation on private investments and changes in the fair value of contingent consideration in 2024, all partially offset by higher income taxes in 2025. Diluted EPS of $0.41 compared with $0.01 for 2024's third quarter. Non-GAAP Economic Earnings were $5.7 million, or $0.64 per share, compared with $1.1 million, or $0.13 per share, in the third quarter of 2024.

Economic Earnings 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 third 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/BI168009bacb7044b4a4f4f99ad9059393

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/im52ppzb

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, June 30, 2025 and September 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 Forbes
Chief Financial Officer and Treasurer
(214) 756-6900

WESTWOOD HOLDINGS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and share amounts)
(unaudited)

Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

REVENUES:

Advisory fees:

Asset-based

$

18,887

$

17,955

$

17,774

Trust fees

5,416

5,069

5,447

Other, net

(14

)

96

498

Total revenues

24,289

23,120

23,719

EXPENSES:

Employee compensation and benefits

13,286

13,472

13,572

Sales and marketing

633

657

644

Westwood funds

1,101

957

798

Information technology

2,893

2,704

2,572

Professional services

1,593

1,486

1,812

General and administrative

2,774

2,976

2,991

Loss from change in fair value of contingent consideration

—

—

1,824

Total expenses

22,280

22,252

24,213

Net operating income (loss)

2,009

868

(494

)

Net change in unrealized appreciation (depreciation) on private investments

1,932

—

—

Net investment income

459

343

587

Other income

292

257

374

Income before income taxes

4,692

1,468

467

Income tax provision

963

437

308

Net income

$

3,729

$

1,031

$

159

Less: income attributable to noncontrolling interest

30

12

54

Income attributable to Westwood Holdings Group, Inc.

$

3,699

$

1,019

$

105

Earnings per Westwood Holdings Group, Inc. share:

Basic

$

0.44

$

0.12

$

0.01

Diluted

$

0.41

$

0.12

$

0.01

Weighted average shares outstanding:

Basic

8,418,174

8,404,859

8,123,714

Diluted

8,941,347

8,813,606

8,488,372

Economic Earnings

$

5,714

$

2,792

$

1,084

Economic EPS

$

0.64

$

0.32

$

0.13

Dividends declared per share

$

0.15

$

0.15

$

0.15

WESTWOOD HOLDINGS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and share amounts)
(unaudited)

Nine Months Ended

September 30, 2025

September 30, 2024

REVENUES:

Advisory fees:

Asset-based

$

54,573

$

51,730

Trust fees

15,914

15,787

Other, net

174

1,622

Total revenues

70,661

69,139

EXPENSES:

Employee compensation and benefits

41,259

41,921

Sales and marketing

2,050

2,027

Westwood funds

2,955

2,374

Information technology

8,264

7,212

Professional services

4,692

4,751

General and administrative

8,632

8,903

Loss from change in fair value of contingent consideration

—

3,682

Total expenses

67,852

70,870

Net operating income (loss)

2,809

(1,731

)

Net change in unrealized appreciation (depreciation) on private investments

1,932

—

Net investment income

1,185

1,590

Other income

826

783

Income before income taxes

6,752

642

Income tax provision

1,515

530

Net income

$

5,237

$

112

Less: income (loss) attributable to noncontrolling interest

41

(46

)

Income attributable to Westwood Holdings Group, Inc.

$

5,196

$

158

Earnings per share:

Basic

$

0.62

$

0.02

Diluted

$

0.59

$

0.02

Weighted average shares outstanding:

Basic

8,359,584

8,140,664

Diluted

8,846,168

8,448,629

Economic Earnings

$

11,020

$

3,588

Economic EPS

$

1.25

$

0.42

Dividends declared per share

$

0.45

$

0.45

WESTWOOD HOLDINGS GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share amounts)
(unaudited)

September 30, 2025

December 31, 2024

ASSETS

Cash and cash equivalents

$

21,604

$

18,847

Accounts receivable

14,570

14,453

Investments, at fair value (amortized cost of $18,354 and $26,788)

19,729

27,694

Investments under measurement alternative

14,697

10,747

Equity method investments

4,263

4,250

Income taxes receivable

—

295

Other assets

7,647

6,780

Goodwill

39,501

39,501

Deferred income taxes

2,556

2,244

Operating lease right-of-use assets

9,841

2,559

Intangible assets, net

18,981

21,668

Property and equipment, net of accumulated depreciation of $8,821 and $8,424

657

951

Total assets

$

154,046

$

149,989

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued liabilities

$

5,436

$

6,413

Dividends payable

2,579

2,466

Compensation and benefits payable

8,808

10,924

Operating lease liabilities

10,323

3,197

Income taxes payable

921

—

Contingent consideration

—

4,657

Total liabilities

28,067

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

204,897

202,239

Treasury stock, at cost – 2,983,692 and 2,902,505 shares, respectively

(89,612

)

(88,277

)

Retained earnings

8,489

6,207

Total Westwood Holdings Group, Inc. stockholders’ equity

123,898

120,291

Noncontrolling interest in consolidated subsidiary

2,081

2,041

Total equity

125,979

122,332

Total liabilities and stockholders’ equity

$

154,046

$

149,989

WESTWOOD HOLDINGS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

Nine Months Ended September 30,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

5,237

$

112

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

376

464

Amortization of intangible assets

3,143

3,085

Net change in unrealized (appreciation) depreciation on investments

(1,840

)

(917

)

Stock-based compensation expense

3,925

4,321

Deferred income taxes

(312

)

(864

)

Non-cash lease expense

851

831

Fair value change of contingent consideration

—

3,682

Changes in operating assets and liabilities:

Accounts receivable

(117

)

(202

)

Other assets

(867

)

(644

)

Accounts payable and accrued liabilities

(1,006

)

(1,192

)

Compensation and benefits payable

(2,115

)

(1,254

)

Income taxes receivable and payable

1,216

(434

)

Other liabilities

(949

)

(1,041

)

Net sales of trading securities

7,842

6,267

Contingent consideration

(4,442

)

—

Net cash provided by operating activities

10,942

12,214

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(82

)

(34

)

Purchases of investments

(2,000

)

(1,500

)

Additions to internally developed software

(449

)

—

Net cash used in investing activities

(2,531

)

(1,534

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Purchases of treasury stock

—

(1,348

)

Restricted stock returned for payment of taxes

(1,335

)

(940

)

Payment of contingent consideration in acquisition

(201

)

(1,815

)

Cash dividends

(4,118

)

(4,209

)

Net cash used in financing activities

(5,654

)

(8,312

)

NET CHANGE IN CASH AND CASH EQUIVALENTS

2,757

2,368

Cash and cash equivalents, beginning of period

18,847

20,422

Cash and cash equivalents, end of period

$

21,604

$

22,790

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid during the period for income taxes

$

609

$

1,817

Accrued dividends

$

2,579

$

2,336

Operating lease assets obtained in exchange for operating lease liabilities

$

8,133

$

—


WESTWOOD HOLDINGS GROUP, INC.

Reconciliation of Income Attributable to Westwood Holdings Group, Inc. to Economic Earnings
(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 and Economic earnings 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 and Economic earnings 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 as income 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 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 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 for tax deductions related to restricted stock expense or amortization of intangible assets. Economic earnings per share represents Economic earnings divided by diluted weighted average shares outstanding.

Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

Income attributable to Westwood Holdings Group, Inc.

$

3,699

$

1,019

$

105

Stock-based compensation expense

1,303

1,295

1,409

Intangible amortization

1,061

1,037

1,011

Tax benefit from goodwill amortization

136

136

156

Tax impact of adjustments to GAAP income

(485

)

(695

)

(1,597

)

Economic earnings

$

5,714

$

2,792

$

1,084

Earnings per share

$

0.41

$

0.12

$

0.01

Stock-based compensation expense

0.15

0.15

0.17

Intangible amortization

0.11

0.11

0.12

Tax benefit from goodwill amortization

0.02

0.02

0.02

Tax impact of adjustments to GAAP income

(0.05

)

(0.08

)

(0.19

)

Economic earnings per share

$

0.64

$

0.32

$

0.13

Diluted weighted average shares

8,941,347

8,813,606

8,488,372

Nine Months Ended

September 30, 2025

September 30, 2024

Income attributable to Westwood Holdings Group, Inc.

$

5,196

$

158

Stock-based compensation expense

3,925

4,321

Intangible amortization

3,143

3,085

Tax benefit from goodwill amortization

396

437

Tax impact of adjustments to GAAP income

(1,640

)

(4,413

)

Economic earnings

$

11,020

$

3,588

Earnings per share

$

0.59

$

0.02

Stock-based compensation expense

0.44

0.50

Intangible amortization

0.37

0.37

Tax benefit from goodwill amortization

0.04

0.05

Tax impact of adjustments to GAAP income

(0.19

)

(0.52

)

Economic earnings per share

$

1.25

$

0.42

Diluted weighted average shares

8,846,168

8,448,629