Westwood Holdings Group Inc (NYSE: WHG) Q2 2025 Earnings | 08/09/2025

Key Business Highlights

• Russell 2000 Addition: WHG added to the Russell 2000 Index, enhancing institutional access and trading liquidity.

• ETF Growth:

  • MDST ETF surpassed $100M AUM just over a year after launch; now at ~$128M with a 10.2% annualized distribution rate.

  • WEBS Platform expanded to 11 sector ETFs with defined volatility strategy, performing as designed in volatile markets.

  • New Liberty Global Equity ETF launched in March, outperforming benchmark and ranking in top quartile among global equity ETFs.

• AUM Growth: Firmwide assets under management/advisement reached $18.3B, up 9% YoY from $16.8B.

• MIS & Alternatives:

  • First infrastructure product funded.

  • New liquid real asset strategy launched.

  • Energy secondaries raised $82M YTD across four funds (total $165M AUM).

• Channel Sales:

  • Institutional: $251M gross sales, $60M net outflows; new SMID cap mandates and large DC plan win (funding Q4 2025).

  • Intermediary: $151M gross sales, $33M net outflows — strongest sales since 2022.

• Wealth Management: Transitioning to a multifamily office model for ultra-high-net-worth families in Texas; technology upgrades improving efficiency and client service.

Market & Strategy

• Market Conditions: Q2 saw sharp volatility — early-year peaks, April drop from tariff announcements, and recovery to new highs. Growth outperformed value.

• Investment Performance:

  • 2/3 of U.S. value strategies outperforming benchmarks over 3 years; 3/4 outperforming over 5 years.

  • Strong results in SMIDCAP, MIDCAP, multi-asset income, credit opportunity, energy, and tactical strategies.

  • Focus remains on high-quality businesses with strong fundamentals, well-positioned for a shift away from mega-cap tech leadership.

Financial Results

• Revenue: $23.1M (flat vs. $23.3M in Q1 2025; up from $22.7M in Q2 2024).

• GAAP Net Income: $1.0M or $0.12/share (vs. $0.5M in Q1 2025; loss of $2.2M in Q2 2024).

• Economic Earnings (Non-GAAP): $2.8M or $0.32/share (vs. $2.5M or $0.29 in Q1 2025; loss of $0.5M or $0.06/share in Q2 2024).

• AUM Breakdown:

  • Institutional: $9.2B (53%)

  • Wealth Management: $4.2B (24%)

  • Mutual Funds: $3.9B (23%)

• Cash Position: $33.1M; debt-free balance sheet.

• Dividend: $0.15/share payable Oct 1, 2025.

Outlook

• Expect continued volatility from trade policy and economic uncertainty.

• Pipeline of over $2B in traditional business.

• Continuing growth in ETF platform, MIS business, and private equity.

• Strategic focus on expanding energy strategies, enhancing wealth management, and delivering innovative investment products.