Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) increased by $687 million during Q3 2025, reaching $24.3 billion, representing a 3% sequential increase and an 8% year-over-year increase [3][4] - Total AUM hit a new high of $37.6 billion at the end of Q3 2025, with non-discretionary AUM comprising $13.3 billion, which accounts for only 4% of total revenue [4][8] - Revenue for Q3 2025 was $31.3 million, an increase of $0.9 million or 2.9% year-over-year [8][9] - Reported net income for Q3 2025 was approximately $1.1 million, with adjusted net income of approximately $2.4 million, or $0.19 per adjusted basic and diluted earnings per share [9][10] Business Line Data and Key Metrics Changes - The firm added $46.4 million in organic new client accounts during Q3 2025, totaling $564 million in new client accounts year-to-date [3] - Approximately $2 billion in organic new client accounts were added year-over-year, indicating a strong focus on organic growth [3][4] - Adjusted EBITDA for Q3 2025 was approximately $4.5 million, or 14.5% of revenue [10] Market Data and Key Metrics Changes - The firm is actively expanding its marketing efforts in Europe, Oceania, and Asia, with a focus on institutional and family clients [6][28] - The OCIO assets currently stand at almost $2.2 billion, with a strong pipeline and recent new client additions [36] Company Strategy and Development Direction - The company is focused on significant strategic investments to promote growth opportunities, particularly in intellectual capital and headcount [5][6] - A new global value equity strategy is being emphasized, with a robust new business pipeline [6][28] - The firm plans to adjust how it reports non-discretionary AUM in 2026 to provide a clearer picture of its asset management and advisory businesses [4][5] Management's Comments on Operating Environment and Future Outlook - Management expects that the increase in AUM will bode well for future revenue, barring short-term market volatility [5] - The company anticipates that investments made will start yielding results within 6 to 12 months, with a longer-term horizon of 18 to 24 months for other initiatives [19][20] - Management expressed confidence in the potential for substantial progress from recent investments and expects to report meaningful improvements soon [20][46] Other Important Information - The company announced a dividend of $0.21 per share of Class A common stock, payable around December 19, 2025 [8] - A buyback program of $25 million was initiated, with approximately $16 million worth of shares repurchased by the end of Q3 2025 [6][7] Q&A Session Summary Question: Timing of AUM and revenue recovery - Management indicated a longer-term horizon of 18 to 24 months for overall investments to pay off, but expects shorter-term results from the new global value equity strategy within 6 to 12 months [19][20] Question: Professional fees and future expenses - Some professional fees are temporary, particularly related to global initiatives, and disclosures are available in the earnings release [21] Question: Future EBITDA margins - Management expects EBITDA margins to return to previous levels barring new investments, with ongoing investments being on a larger scale [22][23] Question: Current status of OCIO assets - OCIO assets are nearly $2.2 billion, with a strong performance and pipeline [36] Question: Share buyback pricing - Management did not disclose specific buyback prices but indicated favorable pricing during the buyback period [37][38]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Revenue for the three months ended September 30, 2025, was $31.295 million, compared to $30.424 million in 2024, representing a year-over-year increase of 2.9%[153]. - Net income for the three months ended September 30, 2025, was $1.089 million, down from $3.730 million in 2024, resulting in a net income margin of 3.5% compared to 12.3% in the previous year[153]. - Adjusted EBITDA for the three months ended September 30, 2025, was $4.529 million, down from $6.346 million in 2024, with an adjusted EBITDA margin of 14.5% compared to 20.9% in 2024[153]. - Total revenue for the three months ended September 30, 2025, increased by $0.9 million, or 2.9%, to $31.3 million compared to $30.4 million for the same period in 2024[179]. - Management and advisory fees for the three months ended September 30, 2025, were $30.1 million, up from $29.4 million in 2024, reflecting a growth of $0.7 million or 2.3%[173]. - Total revenue for the nine months ended September 30, 2025, was $93.4 million, an increase of $1.7 million or 1.8% from $91.7 million in 2024[173]. - Adjusted Net Income for the nine months ended September 30, 2025, was $9.6 million, down from $12.9 million in 2024[207]. - Basic Adjusted Earnings Per Share for the three months ended September 30, 2025, was $0.19, compared to $0.27 in 2024[207]. Assets Under Management - Assets under management increased by 2.5% from $36.7 billion to $37.6 billion for the three months ended September 30, 2025, and by 3.0% from $36.5 billion to $37.6 billion for the nine months ended September 30, 2025[150]. - Assets under management as of September 30, 2025, reached $37.6 billion, up from $35.1 billion as of September 30, 2024[173]. - Total assets under management increased by $2.5 billion, or 7.1%, to $37.6 billion as of September 30, 2025, from $35.1 billion at September 30, 2024[184]. - Discretionary assets under management increased by $1.0 billion during the nine months ended September 30, 2025[184]. - Average assets under management for discretionary managed accounts were $23.6 billion for the three months ended September 30, 2025, compared to $21.7 billion in 2024[158]. - The average AUM for the three months ended September 30, 2025, was approximately $37.2 billion, while for the nine months it was about $37.1 billion[233]. Expenses - Total expenses for the three months ended September 30, 2025, increased by $4.0 million, or 15.4%, to $30.0 million from $26.0 million in the same period in 2024[191]. - Compensation and benefits expenses are the largest expense category, expected to rise with growth in headcount and competitive compensation levels[166]. - Compensation and benefits expense rose by $3.1 million, or 16.8%, to $21.7 million for the three months ended September 30, 2025[192]. - General and administrative expenses increased by $0.9 million, or 11.9%, to $8.2 million for the three months ended September 30, 2025[193]. Cash Flow and Liquidity - As of September 30, 2025, cash and cash equivalents decreased to $36.1 million from $68.6 million as of December 31, 2024, representing a decline of approximately 47.4%[216]. - For the nine months ended September 30, 2025, net cash provided by operating activities was $3.7 million, down from $5.2 million in the same period of 2024, a decrease of about 29.0%[222]. - The company used $1.7 million in investing activities for the nine months ended September 30, 2025, compared to $1.3 million in 2024, indicating an increase of approximately 30.8%[223]. - Financing activities resulted in a cash outflow of $34.5 million for the nine months ended September 30, 2025, compared to $16.0 million in 2024, reflecting an increase of about 116.9%[224]. - The company expects to meet its cash and liquidity requirements in the next twelve months primarily through cash generated by operations[210]. Client Flows - Gross client inflows for the nine months ended September 30, 2025, were $3.3 billion, while gross client outflows were $4.0 billion, resulting in net client flows of $(0.7) billion[173]. - Client inflows amounted to $5.6 billion, while client outflows were $5.4 billion during the same period[184]. Market and Investment Strategies - The company aims to develop and market investment strategies that meet client needs and provide attractive long-term returns to increase assets under management[159]. - The company expects investment income from private investment funds to fluctuate based on market conditions and the success of its investment strategies[169]. - Market risk is identified as the most significant risk affecting the valuation of the company's assets under management[231]. - The company utilizes independent pricing services based on observable market prices for asset valuation[231]. Tax and Other Income - The effective tax rate will be offset by benefits from a tax receivable agreement with Class B stockholders[171]. - The provision for income taxes for the three months ended September 30, 2025, was $0.4 million, down from $1.1 million in 2024, reflecting decreased profitability[200]. - The provision for income taxes for the nine months ended September 30, 2025, was $2.6 million compared to $3.6 million in 2024, with a percentage of income before provision for income taxes increasing from 21.6% to 24.3%[201]. - Interest income decreased by 60.4% to $148,000 for the three months ended September 30, 2025, compared to $374,000 in the same period in 2024[197]. - Total other income (expense), net decreased to $0.1 million for the three months ended September 30, 2025, from $0.4 million in the same period in 2024[198]. - For the nine months ended September 30, 2025, total other income decreased to $0.6 million from $0.9 million in the same period of 2024[199]. Shareholder Returns - The company expects to continue paying quarterly cash dividends to holders of Class A common stock, dependent on distributions from Silvercrest L.P.[216]. - The company repurchased approximately 1,504,000 shares of Class A common stock at a cost of $23.7 million during the nine months ended September 30, 2025, compared to 83,000 shares for $1.4 million in 2024[224]. - The anticipated future payments under the tax receivable agreement related to the purchase of Class B units are expected to aggregate approximately $10.2 million[219]. - The company anticipates that distributions to the principals of Silvercrest L.P. will continue to be a significant use of cash resources, varying based on operating results and dividend policy[225]. Accounting and Reporting - Recent accounting developments and their impact on the company are detailed in the "Summary of Significant Accounting Policies" section[235]. - Other adjustments for the three months ended September 30, 2025, totaled $1.7 million, significantly higher than $0.26 million in 2024[208].

Core Insights - Silvercrest (SAMG) reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.29 per share, and down from $0.26 per share a year ago, representing an earnings surprise of -34.48% [1] - The company posted revenues of $31.3 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.72%, and up from $30.42 million year-over-year [2] - Silvercrest shares have declined approximately 22.8% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $32.9 million, and for the current fiscal year, it is $1.07 on revenues of $127.44 million [7] - The estimate revisions trend for Silvercrest was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Investment Management industry, to which Silvercrest belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Assets Under Management (AUM) - Discretionary assets under management (AUM) increased by $687 million in Q3 2025, reaching $24.3 billion, an 8% year-over-year increase[3][4] - Total AUM hit a new high of $37.6 billion, up $2.5 billion or 7.1% from $35.1 billion in Q3 2024, driven by market appreciation of $2.3 billion[13][4] - Total assets under management (AUM) at the end of Q3 2025 reached $37.6 billion, up 7.1% from $35.1 billion in Q3 2024[42] - Total Discretionary AUM at September 30, 2025, reached $24.349 billion, up from $22.639 billion in 2024, reflecting an increase of 7.5%[48] - Discretionary AUM at the end of Q3 2025 was $24.3 billion, reflecting a 7.5% increase from $22.6 billion in Q3 2024[44] - Non-discretionary AUM increased to $13.3 billion in Q3 2025, a 6.4% rise from $12.5 billion in Q3 2024[46] Financial Performance - Revenue for Q3 2025 was $31.3 million, a 2.9% increase from $30.4 million in Q3 2024, primarily due to market appreciation[16] - Total revenue for Q3 2025 was $31.295 million, a 2.9% increase from $30.424 million in Q3 2024[33] - Adjusted EBITDA for Q3 2025 was $4.5 million, or 14.5% of revenue, compared to $6.3 million, or 20.9% of revenue in Q3 2024[19] - Adjusted EBITDA for Q3 2025 was $4.529 million, compared to $6.346 million in Q3 2024, representing a decline of 28.6%[35] - Adjusted EBITDA Margin decreased to 14.5% in Q3 2025 from 20.9% in Q3 2024[35] - Consolidated net income for Q3 2025 was $1.1 million, representing a net income margin of 3.5%, down from 12.3% in Q3 2024[18] - Net income attributable to Silvercrest for Q3 2025 was $618,000, down from $2.252 million in Q3 2024, a decrease of 72.6%[33] - Basic net income per share for Q3 2025 was $0.07, compared to $0.24 in Q3 2024, a decline of 70.8%[33] - The company reported a net income of $1.089 million for Q3 2025, down from $3.730 million in Q3 2024, a decrease of 70.8%[33] - Adjusted net income for Q3 2025 was $2,406 million, a decrease from $3,801 million in Q3 2024, representing a decline of 36.7%[37] Expenses - Total expenses increased by $4.0 million, or 15.4%, to $30.0 million in Q3 2025, with compensation and benefits expenses rising by 16.8%[17] - Total expenses for Q3 2025 were $29.964 million, an increase of 15.5% from $25.967 million in Q3 2024[33] - Compensation and benefits expenses rose to $21.714 million in Q3 2025, up from $18.598 million in Q3 2024, marking a 16.5% increase[33] Shareholder Actions - The company repurchased approximately $16 million worth of shares as part of a $25 million buyback program initiated in May 2025[8] - The company declared a quarterly dividend of $0.21 per share, payable on December 19, 2025[9] Client Flows - Net client flows for Q3 2025 were negative at $(0.6) billion, compared to $(0.2) billion in Q3 2024, indicating a 200% decline[42] - Gross client inflows for Q3 2025 were $1.0 billion, down 9.1% from $1.1 billion in Q3 2024[42] - Gross client outflows increased to $(1.6) billion in Q3 2025, a 23.1% rise from $(1.3) billion in Q3 2024[42] Equity and Liabilities - Silvercrest's total equity was $58.9 million at September 30, 2025, with 8,240,149 shares of Class A common stock outstanding[25] - Total liabilities decreased to $64,054 million as of September 30, 2025, down from $74,739 million at the end of 2024[40] - Total equity decreased to $93,503 million as of September 30, 2025, down from $119,693 million at the end of 2024[40] Market Performance - The Large Cap Value Composite annualized performance for the past year was 6.0%, underperforming the Russell 1000 Value Index at 9.4%[52] - The Global Value Opportunity Composite achieved a 1-year performance of 22.3%, outperforming the MSCI ACWI Value - Net Index at 12.1%[52]

Core Insights - Silvercrest Asset Management Group Inc. reported a total AUM of $37.6 billion as of September 30, 2025, marking a 7.1% increase year-over-year, driven by market appreciation and new client inflows [3][14][45] - The company experienced a revenue increase of 2.9% to $31.3 million for the third quarter of 2025 compared to the same period in 2024, despite facing net client outflows [17][19] - Adjusted EBITDA for the third quarter was $4.5 million, representing a decline from the previous year, reflecting ongoing investments in growth initiatives [20][24] AUM and Client Flows - Discretionary AUM increased by $687 million during the third quarter, reaching $24.3 billion, an 8% increase year-over-year [2][3] - The company added $46.4 million in organic new client accounts during the third quarter and approximately $2.0 billion year-over-year [2][3] - Total AUM reached a new high of $37.6 billion, with non-discretionary AUM at $13.3 billion, which contributes only 4% to total revenue [3][14] Financial Performance - Revenue for the nine months ended September 30, 2025, was $93.4 million, a 1.8% increase from the previous year [21] - Consolidated net income for the third quarter was $1.1 million, down from $3.7 million in the same quarter of 2024, with a net income margin of 3.5% [19][23] - Total expenses increased by 15.4% to $30.0 million for the third quarter, primarily due to higher compensation and benefits expenses [18][22] Strategic Initiatives - The company is focused on organic growth and has made significant investments in talent and intellectual capital to drive future growth [4][5] - A new buyback program of $25 million was initiated, with approximately $16 million worth of shares repurchased by the end of the third quarter [7] - Silvercrest declared a quarterly dividend of $0.21 per share, to be paid on December 19, 2025 [8] Market Outlook - The increase in AUM is expected to positively impact future revenue, as the company primarily bills quarterly in advance [4] - The firm anticipates that discretionary AUM will exceed all-time highs in the coming quarters, assuming supportive market conditions [3][4]

Core Viewpoint - Silvercrest Asset Management Group Inc. will host a teleconference to discuss its third-quarter financial results on October 31, 2025, with a news release to be issued prior to the market opening [1]. Group 1: Financial Results Announcement - The teleconference is scheduled for 8:30 am Eastern Time on October 31, 2025 [1]. - A news release containing the financial results will be available before the U.S. equity markets open [1]. Group 2: Leadership Participation - The call will feature Chairman, CEO, and President Richard R. Hough III, along with CFO Scott A. Gerard, who will review the quarterly results [2]. Group 3: Access Information - Analysts, institutional investors, and the public can listen to the call by dialing 1-844-836-8743 or 1-412-317-5723 for international callers [3]. - A live webcast will be available on the investor relations section of the Silvercrest website, with an archived replay accessible after the live call [3]. Group 4: Company Overview - Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser [4]. - The firm has offices in multiple states and provides traditional and alternative investment advisory services, managing assets totaling $36.7 billion as of June 30, 2025 [4].

Core Insights - Silvercrest Asset Management Group has appointed Nitish Sharma as Head of International Consultant Relations to enhance partnerships with institutional investors and expand its institutional business in EMEA and Asia Pacific regions [1][3] Company Overview - Silvercrest Asset Management was founded in April 2002 as an independent, employee-owned registered investment adviser, headquartered in New York, with additional offices in the United States and Singapore [5] - As of June 30, 2025, Silvercrest reported assets under management of $36.7 billion [5] Leadership Appointment - Nitish Sharma brings over 25 years of experience, including over 20 years at AllianceBernstein, where he led Global Consultant Relations and U.K. institutional business [2][4] - Sharma will report to Allen Gray, Head of Silvercrest's Institutional Business, and will be based in London [3][4] Strategic Focus - The firm aims to leverage Sharma's extensive experience and relationships to enhance its institutional presence outside the U.S. [3][4] - Sharma expressed enthusiasm for contributing to Silvercrest's goal of delivering long-term success and exceptional client service [4]

Core Viewpoint - Silvercrest Asset Management Group reported a decline in earnings and revenue for Q2 2025, despite achieving record assets under management, indicating challenges in profitability due to rising costs and fee pressures [1][7][8]. Financial Performance - GAAP revenue for Q2 2025 was $30.7 million, down 1.0% from $31.0 million in Q2 2024, and slightly below analyst expectations [1][12]. - Non-GAAP EPS was $0.25, missing estimates by 16.7% and down from $0.30 in Q2 2024 [1][2]. - Adjusted EBITDA fell to $5.7 million, a decrease of 20.6% year-over-year [2]. - Net income dropped to $3.1 million, down 28.4% from the previous year [2]. Assets Under Management - Assets under management reached a record $36.7 billion, up 9.9% from $33.4 billion a year earlier [1][5]. - Discretionary AUM increased by 9.7% year-over-year, while non-discretionary AUM rose by 10.2% [5]. Client Flows - Overall net client flows were negative at ($0.4) billion, although this was an improvement from ($0.9) billion in Q2 2024 [6]. - Gross client inflows were $0.9 billion, with outflows at $1.3 billion [6]. Expense Management - Total expenses increased by 3.7% year-over-year, driven by a 1.7% rise in compensation and benefits and an 8.8% increase in general and administrative expenses [8]. - Adjusted EBITDA margin fell to 18.7% from 23.3% year-over-year [8]. Investment Strategies - Proprietary equity strategies showed mixed results, with the Large Cap Value composite returning 10.1% compared to its benchmark's 13.7%, while the Global Value Opportunity composite outperformed its benchmark with a return of 19.5% [9]. Shareholder Returns - The company completed a $12.0 million share repurchase and announced a new $25.0 million buyback authorization [10]. - The quarterly dividend was raised by 5% to $0.21 per share [10][13]. Future Outlook - Management expressed optimism about long-term growth, highlighting a strong pipeline for global investment strategies and new client acquisitions [11]. - Elevated expenses are expected to persist through at least 2026, with anticipated improvements in margins as growth investments begin to yield results [11][12].

Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) increased by $1 billion during the second quarter, primarily due to strong markets [3] - Discretionary AUM stands at $23.7 billion, reflecting a 4.4% sequential quarterly increase and a 9.7% year-over-year increase [4] - Total AUM reached a new high of $36.7 billion at the end of the second quarter [4] - Revenue for the quarter was $30.7 million, a decrease of $300,000 or 1% year-over-year [8] - Reported net income for the quarter was approximately $3.1 million, with adjusted net income at approximately $3.3 million [9][11] - Adjusted EBITDA for the quarter was approximately $5.7 million, representing 18.7% of revenue [9] Business Line Data and Key Metrics Changes - The company added $80 million in organic new client accounts during the second quarter and $2 billion over the past four quarters [3][4] - Revenue for the first half of the year increased year-over-year by $800,000 or 1.3%, driven by market appreciation [10] - Compensation and benefits expenses for the first half increased by $1.5 million or 4.2% due to merit-based increases and new hires [11] Market Data and Key Metrics Changes - The company is optimistic about securing more significant organic flows in 2025 and 2026 as investments bear fruit [4] - The pipeline for new business is robust, with a measurable pipeline of $200 million, which has doubled since the last quarter [20] Company Strategy and Development Direction - The company continues to invest in talent to drive growth and transition the business towards the next generation of professionals [5] - A new buyback program of $25 million was announced following a completed $12 million stock repurchase program [5] - The Board of Directors approved a 5% increase in the quarterly dividend from $0.20 to $0.21 per share [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong market conditions and a solid new client track record [49] - The company is actively exploring acquisition opportunities, although the market remains expensive [25][27] - Management noted that operating leverage will take time to materialize as the company continues to hire and invest in growth initiatives [36] Other Important Information - Total assets were approximately $152.7 million as of June 30, down from $194.4 million at the end of the previous year [11] - Cash and cash equivalents were approximately $30 million as of June 30, compared to $68.6 million at the end of the previous year [12] Q&A Session Summary Question: Can you talk about the pipeline and your optimism for the second half? - Management discussed the global value team and the progress made in building out the team and capabilities, with a measurable pipeline of $200 million [20] Question: What was the average price for the stock buyback? - The average price for the stock buyback was not disclosed, but it was noted to be below the current trading price [23] Question: Any updates on potential acquisitions? - Management indicated ongoing conversations regarding acquisitions but emphasized that the market remains expensive and deals are not guaranteed until finalized [25][27] Question: Is the revenue mix shift over, and how does it affect operating leverage? - Management noted that the mix shift is primarily driven by institutional mandates and that operating leverage will take time to achieve as the company continues to hire and invest [34][36] Question: How is the OCIO business pipeline performing? - The OCIO pipeline has come down a bit but is expected to improve, with a significant mandate in the pipeline for the next quarter [42][44]