Westwood Holdings Group Q2 2025 Earnings Report

Westwood Holdings Group EPS Results

• Actual EPS: $0.22
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Westwood Holdings Group Revenue Results

• Actual Revenue: $23.12 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Westwood Holdings Group Announcement Details

• Quarter: Q2 2025
• Date: 8/8/2025
• Time: After Market Closes
• Conference Call Date: Friday, August 8, 2025
• Conference Call Time: 4:30PM ET

Westwood Holdings Group (NYSE:WHG), Inc., through its subsidiaries, manages investment assets and provides services for its clients. The company operates in two segments, Advisory and Trust. The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, and the Westwood Funds; and investment sub-advisory services to mutual funds, pooled investment vehicles, and its Trust segment. The Trust segment offers trust and custodial services; and participates in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Holdings Group, Inc. was founded in 1983 and is based in Dallas, Texas.

Westwood Holdings Group Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Westwood was added to the Russell 2000 Index, which is expected to enhance trading volume and broaden its institutional investor base.
• Positive Sentiment: Assets under management reached $18.3 billion—up 9% year-over-year—and the MDST ETF surpassed the $100 million AUM milestone, validating its ETF strategy.
• Positive Sentiment: Second quarter GAAP earnings were $0.12 per share versus a loss of $0.27 a year ago, while non-GAAP economic earnings rose to $0.32 per share from a prior-year loss of $0.06.
• Negative Sentiment: The firm experienced net outflows of $200 million in assets under management and $13 million in assets under advisement, partially offset by market appreciation of $600 million.

Presentation

[Operator]

day and thank you for standing by. Welcome to the Westwood Holdings Group Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. You will then hear an automated message advising your hand is raised.

[Operator]

To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jill Meyer, Chief Legal Counsel. Please go ahead.

[Jill Meyer, Director - Fiduciary Services & Corporate Secretary at Westwood Holdings Group]

Thank you, and welcome to our second quarter twenty twenty five earnings conference call. The following discussion will include forward looking statements that are subject to known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those contemplated by the forward looking statements. Additional information concerning the factors that could cause such a difference is included in our press release issued earlier today, as well as in our form 10 Q for the quarter ended 06/30/2025, that will be filed with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on forward looking statements.

[Jill Meyer, Director - Fiduciary Services & Corporate Secretary at Westwood Holdings Group]

In addition, in accordance with SEC rules concerning non GAAP financial measures, the reconciliation of our economic earnings and economic earnings per share to the most comparable GAAP measures is included at the end of our press release issued earlier today. On the call today, we have Brian Casey, our Chief Executive Officer and Terry Forbes, our Chief Financial Officer. I will now turn the call over to Brian Casey.

[Brian Casey, CEO & Director at Westwood Holdings Group]

Good afternoon and thank you for joining us for Westwood's second quarter twenty twenty five earnings call. I'm pleased to share our results and key developments from the past quarter, as well as our outlook for the remainder of the year. Today, you will hear about several significant milestones and achievements. WHG was added to the Russell 2,000 Index, enhancing institutional accessibility. MDST surpassed the $100,000,000 AUM milestone, validating our ETF strategy.

[Brian Casey, CEO & Director at Westwood Holdings Group]

WEBBS launched 11 secondtor ETFs, expanding our innovative ETF platform. MIS delivered its first client account, infrastructure and real assets. We achieved positive net flows across several key strategies, including ETFs, private funds and energy. Assets under management reached $18,300,000,000 up 9% from $16,800,000,000 in Q2 of last year. The past quarter exhibited significant volatility with markets peaking in February, then experiencing a sharp decline in early April before ultimately recovering to post new highs by quarter end.

[Brian Casey, CEO & Director at Westwood Holdings Group]

The announcement of Liberation Day along with reciprocal tariffs triggered the worst two day market meltdown since March 2020 with markets falling sharply over the following week. Amid this chaos, the administration then announced a ninety day tariff pause, which immediately sparked a strong rally. The S and P five hundred finally finished out the quarter with solid gains, reaching new all time highs. Growth stocks significantly outperformed value across market capitalizations during this period. In this unsettled environment, our investment strategies continue to demonstrate resilience across multiple time horizons and asset classes.

[Brian Casey, CEO & Director at Westwood Holdings Group]

Within our U. S. Value strategies, approximately two thirds are outperforming their benchmarks over trailing three year periods and three quarters of these strategies are outperforming over the trailing five year period. Among our peers, our SMID cap and mid cap strategies are particularly well positioned in the competitive rankings. Our multi asset strategies are demonstrating solid long term growth with multi asset income and income opportunity both outperforming over the trailing five year period.

[Brian Casey, CEO & Director at Westwood Holdings Group]

Our credit opportunity strategy just celebrated its five year anniversary, and it continues to post benchmark beating results and strong peer rankings across a variety of time periods. Our salient energy and real asset strategies continue to deliver long term competitive performance, while our tactical growth and tactical plus strategies are providing good downside market protection. Our income enhancing strategies in real estate and energy provide generous and growing levels of income while also delivering capital appreciation. Looking ahead, we expect continued market volatility driven by uncertain trade policy developments and varying economic indicators. However, we believe that our focus on high quality businesses with strong fundamentals positions us well.

[Brian Casey, CEO & Director at Westwood Holdings Group]

When market leadership broadens out beyond mega cap technology stocks and as business fundamentals once again matter more, companies demonstrating reliable cash flows, reasonable valuations and proven business models tend to outperform. History shows that our approach of combining quality characteristics with attractive valuations has consistently delivered strong results across full market cycles, particularly during periods of economic uncertainty like these. Our institutional channel delivered solid results with $251,000,000 in gross sales and net outflows of $60,000,000 driven primarily by sub advisory rebalancing. We funded two SMID cap CIT mandates and won a large defined contribution plan in our SMID strategy with funding anticipated in the fourth quarter of this year. Our pipeline remains robust across multiple strategies and we continue to conduct constructive conversations regarding our managed investment solutions capabilities.

[Brian Casey, CEO & Director at Westwood Holdings Group]

The intermediary channel achieved $151,000,000 in gross sales with net outflows of 33,000,000 representing our strongest sales quarter since 2022. We're particularly encouraged by our successful private fundraising initiative and the continued momentum propelling our energy and real asset products. MDFC, our enhanced midstream energy ETF surpassed $100,000,000 in assets milestone, and we are pleased with the addition of three major broker dealer platforms, significantly expanding our distribution reach. During the quarter, Westwood Wealth Management continued to optimize operations, enhance the client experience and invest in our long term strategy. Our technology investments are driving greater efficiency and improved service delivery, while our advisory teams remain focused on deepening relationships and providing proactive guidance.

[Brian Casey, CEO & Director at Westwood Holdings Group]

We are tracking toward our gross inflows goals for the year, though net flows reflect the broader market environment and planned client reallocations. Looking ahead, we are thoughtfully evolving into a multifamily office model designed to serve the complex needs of ultra high network families across Texas. This shift aligns with client demand and industry trends and allows us to deliver more comprehensive solutions, increase value to our clients and position Westwood for long term margin expansion. We are executing this transition with care, preserving the trusted relationships we've built, maintaining disciplined cost management and ensuring continuity of great service as we go forward. Operational improvements across our wealth management division reflect the broader strategic progress we've made throughout our organization this quarter.

[Brian Casey, CEO & Director at Westwood Holdings Group]

Beyond our core business performance, we've achieved several significant milestones that strengthen our competitive position and expand our market opportunities. Westwood was added to the Russell two thousand Index during its most recent index reconstitution, which is expected to enhance our trading volume and broaden our institutional investor base as we begin our twenty fourth year as a public company. Our MDST ETF reached a significant 100,000,000 milestone just over a year after its launch, with an annualized distribution rate of 10.2%. This achievement validates our differentiated strategy and opens doors to additional platform approvals. The WEB's partnership continues to expand with 11 secondtor ETFs utilizing the defined volatility strategy launched in late July.

[Brian Casey, CEO & Director at Westwood Holdings Group]

Our WEB's defined volatility ETFs are performing precisely as designed during the period of market uncertainty, providing the volatility management that investors seek in challenging environments. These products exemplify our commitment to delivering innovative solutions that address specific investor needs across different market conditions. Our newest addition, the Westwood Liberty Global Equity ETF has demonstrated strong initial performance since its late March launch, outperforming its benchmark and ranking in the top quartile among global equity ETFs. We successfully funded our first MIS infrastructure product and seeded a new liquid real asset strategy to address growing institutional demand for liquid alternatives. This transparent rules based approach uses risk parity weighting across energy, real estate, natural resources and infrastructure.

[Brian Casey, CEO & Director at Westwood Holdings Group]

Lastly, our energy secondaries business continues to grow, raising 82,000,000 in new capital so far this year across four funds and total assets under management now aggregate 165,000,000. This is a good example of our ability to capitalize on opportunities and specialized alternative investment strategies. As we reflect on the second quarter and look ahead, we remain confident in our strategic positioning and the value we provide to our clients. Our diverse range of strategies, expanding ETF platform and robust institutional pipeline position us well for continued growth. The momentum in our energy strategies, achievement of key ETF milestones and successful expansion with managed and investment solutions demonstrate our ability to innovate while maintaining our core strengths in active management.

[Brian Casey, CEO & Director at Westwood Holdings Group]

With our strong foundation and proven ability to deliver results across market cycles, we believe we're well positioned to capitalize on opportunities as market leadership potentially broadens out towards quality and value oriented investments. Thank you for your continued support and confidence in Westwood. I'll now turn the call over to our CFO, Terry Forbes.

[Terry Forbes, CFO at Westwood Holdings Group]

Thanks, Brian, and good afternoon, everyone. Today, we reported total revenues of $23,100,000 for the 2025, compared to $23,300,000 in the first quarter and $22,700,000 in the prior year second quarter. Revenues were flat to both periods. Our second quarter income of $1,000,000 or $0.12 per share, compared with $500,000 or $05 per share in the first quarter on lower operating expenses primarily related to the timing of compensation and benefit payments. Non GAAP economic earnings were $2,800,000 or $0.32 per share in the current quarter versus $2,500,000 or $0.29 per share in the first quarter.

[Terry Forbes, CFO at Westwood Holdings Group]

Our second quarter income of $1,000,000 or $0.12 per share compared favorably to last year's second quarter loss of $2,200,000 or $0.27 per share due to changes in the fair value of contingent consideration in 2024, offset by an increase in income tax expense in 2025. Economic earnings for the quarter were $2,800,000 or $0.32 per share, compared with an economic loss of $500,000 or $06 per share in the 2024. Firm wide assets under management and advisement totaled $18,300,000,000 at quarter end, consisting of assets under management of $17,300,000,000 and assets under advisement of $900,000,000 Assets under management consisted of institutional assets of $9,200,000,000 or 53 percent of the total, wealth management assets of $4,200,000,000 or 24% of the total, and mutual fund assets of $3,900,000,000 or 23% of the total. Over the quarter, our assets under management experienced net outflows of 200,000,000 and market appreciation of 600,000,000.0 and our assets under advisement experienced market depreciation of $15,000,000 and net outflows of $13,000,000 Our financial position continues to be solid with cash and liquid investments at quarter end totaling $33,100,000 and a debt free balance sheet. I'm happy to announce that our Board of Directors approved a regular cash dividend of $0.15 per common share payable on 10/01/2025 to stockholders of record on 09/02/2025. That brings our prepared comments to a close. We encourage you to review our investor presentation we have posted on our website, reflecting quarterly highlights, as well as discussion of our business, product development, and longer term trends in revenues and earnings. We thank you for your interest in our company, and we'll open the line to questions.

[Operator]

Thank you. Again, if you have a question, please press 11. And I'm showing no questions at this time. I'd like to turn it back to Brian Casey for closing remarks.

[Brian Casey, CEO & Director at Westwood Holdings Group]

Well, great, thank you very much. I don't blame you for not having any questions on a Friday afternoon, and I apologize for having our call on a Friday. We've never done this before, and I hope to never do it again. But it was due to a change in schedule, so it was the only choice we had. So thanks for listening today.

[Brian Casey, CEO & Director at Westwood Holdings Group]

I'll just close it out by saying that we're really excited about our twenty fourth year as a public company. We've got a really strong pipeline of traditional business of over $2,000,000,000 We've started three new businesses in the last eighteen months, our managed investment solutions business, private equity business, and our ETF platform with MDST making it to $100 and it's currently at about $128,000,000 We, BFree, and our WEBS business. And by the way, I'd encourage you to visit, if you haven't seen it yet, websimv.com, and learn more about our WEB's defined volatility products. We have one that's based on the SPY and one on the triple Qs, and in addition we have one for each of the 11 S and P 500 secondtors. We're really excited about the direction we're taking our wealth business to a multifamily office model serving Texas families.

[Brian Casey, CEO & Director at Westwood Holdings Group]

So again, appreciate you listening on a Friday afternoon, and I hope everybody has a great weekend. Please call Terry or myself if you have any questions.

[Operator]

This concludes today's conference call. Thank you for participating, and you may now disconnect.

Participants

Executives

• Jill Meyer, Director - Fiduciary Services & Corporate Secretary
• Brian Casey, CEO & Director
• Terry Forbes, CFO