Earnings Call InsightsSilvercrest signals continued elevated compensation ratio amid global expansion and hiring initiativesMar. 17, 2026 2:13 PM ETSilvercrest Asset Management Group Inc. (SAMG) StockAI-Generated Earnings Calls InsightsCommentsEarnings Call Insights: Silvercrest Asset Management Group Inc. (SAMG) Q4 2025 Management View Richard Hough, CEO, President & Chairman, reported that "Silvercrest's discretionary assets under management, which primarily drives the firm's revenue, decreased 1.2% durin ...

To address this, the company said it plans to adjust how it reports non-discretionary AUM in a future quarter. Management stated the change will “substantially lower” reported non-discretionary AUM on a one-time basis, without affecting revenue, and is intended to give investors a clearer view of the AUM and economics that drive the business.Hough said non-discretionary AUM contributes about 4% of total revenue and primarily consists of fixed-fee reporting and family office services. He added that non-discr ...

Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) decreased by 1.2% in Q4 2025 from $24.3 billion to $24 billion, while total discretionary AUM increased by 3% for the year from $23.3 billion to $24 billion [3] - Total AUM decreased by 1.6% in Q4 to $37 billion but increased by 2% year-over-year from $36.5 billion [4] - Revenue for Q4 was $32 million, with a reported consolidated net loss of $0.1 million [11] - For the full year, revenue increased by 1.3% year-over-year to $19.6 million, while total expenses increased by 9.4% [14][15] Business Line Data and Key Metrics Changes - Organic new client accounts added in Q4 amounted to $124.5 million, bringing the total for 2025 to $688.3 million, indicating strong client acquisition [3] - Compensation and benefits expenses for Q4 increased by 12.1% year-over-year, primarily due to merit-based increases and new hires [11] Market Data and Key Metrics Changes - The firm ranked 6th in Nasdaq eVestment's Q4 2025 brand awareness rankings among mid-sized firms, reflecting growing recognition of its institutional capabilities [6] - The firm is expanding its international business development efforts with professionals in London and Australia, and is nearing completion of an Australian investment trust and a UCITS vehicle in Europe [6][7] Company Strategy and Development Direction - Silvercrest is making significant strategic investments to promote growth across multiple fronts, focusing on intellectual capital and headcount [5] - The firm is adjusting its interim compensation ratio to match investments in business growth, with an elevated compensation ratio expected to continue for the foreseeable future [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term vision and investment plans, anticipating that these will bear fruit with patience [43] - The firm expects to see significant flows from its global and international strategies in 2026, with a potential for multiple billions of dollars in AUM growth [26] Other Important Information - Total compensation and benefits expense for 2025 was $83.9 million, representing 67% of revenue, compared to 62% in 2024 [8] - The firm repurchased approximately $50.4 million worth of shares, with a new share repurchase program of $25 million announced in May 2025 [9][16] Q&A Session Summary Question: Current AUM in global and international strategies - The firm currently has over $2 billion across global and international strategies, with strong performance and a robust pipeline expected to yield significant flows in 2026 [22][26] Question: Future compensation ratio outlook - The compensation ratio will depend on future flows, with expectations that it will remain elevated due to ongoing hiring and investments [31][32] Question: Thoughts on further buybacks - The firm is open to considering additional buybacks, emphasizing the importance of returning capital to investors while also managing equity awards [37][38]

Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) decreased by 1.2% in Q4 2025 from $24.3 billion to $24 billion, while total discretionary AUM increased by 3% year-over-year from $23.3 billion to $24 billion [3] - Total AUM decreased by 1.6% in Q4 to $37 billion but increased by 2% year-over-year from $36.5 billion, with no revenue effect [4] - Revenue for Q4 was $32 million, with a reported consolidated net loss of $0.1 million [11] - For the full year, revenue increased by 1.3% year-over-year, driven by market appreciation in discretionary AUM, partially offset by net client outflows [13] Business Line Data and Key Metrics Changes - Organic new client accounts added in Q4 amounted to $124.5 million, bringing the total for the year to $688.3 million, indicating strong client acquisition [3] - Compensation and benefits expense for Q4 increased by 12.1% year-over-year, primarily due to merit-based increases and new hires [11] Market Data and Key Metrics Changes - The firm ranked 6th in Nasdaq eVestment's Q4 2025 brand awareness rankings among mid-sized firms, reflecting growing recognition of its institutional capabilities [6] Company Strategy and Development Direction - Silvercrest is focused on significant strategic investments to promote growth across multiple fronts, particularly in intellectual capital and headcount [5] - The firm is expanding its international business development efforts, with professionals now in London and Australia, and is creating an Australian investment trust and a UCITS vehicle in Europe [6][7] - The company expects to receive regulatory approval to operate in Europe through its new Dublin office by Q2 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term vision and investment plans, anticipating that these will bear fruit with patience [43] - The firm expects to see significant flows from its global and international strategies in 2026, with a potential for multiple billions of dollars in AUM [26] Other Important Information - Total compensation and benefits expense for the full year was $83.9 million, representing 67% of revenue, compared to 62% in 2024 [8] - The company repurchased approximately $50.4 million worth of shares, with a new share repurchase program of $25 million announced in May 2025 [9][17] Q&A Session Summary Question: Current AUM in global and international strategies - The company currently has over $2 billion across global and international strategies, with strong performance and a robust pipeline expected to yield significant flows in 2026 [22][23] Question: Future compensation ratio expectations - The compensation ratio is expected to remain elevated due to ongoing hiring and investment in growth, with historical ratios around 54%-56% [31][32] Question: Thoughts on future buybacks - The company is open to considering further buybacks, emphasizing the importance of returning capital to investors while also managing equity awards [37][38]

Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) decreased by 1.2% in Q4 2025 from $24.3 billion to $24 billion, while total discretionary AUM increased by 3% for the year from $23.3 billion to $24 billion [3][4] - Total AUM decreased by 1.6% in Q4 to $37 billion but increased by 2% year-over-year from $36.5 billion [4][10] - Revenue for Q4 was $32 million, with a reported consolidated net loss of $0.1 million [10][14] - Adjusted EBITDA for Q4 was approximately $2.9 million, representing 8.9% of revenue [11] - For the full year, revenue increased by $1.7 million or 1.3%, while expenses increased by $10 million or 9.4% [12][13] Business Line Data and Key Metrics Changes - Organic new client accounts added in Q4 totaled $124.5 million, bringing the full year total to $688.3 million, indicating strong client acquisition [3] - Compensation and benefits expense for the full year was $83.9 million, representing 67% of revenue, up from 62% in 2024 [7][13] Market Data and Key Metrics Changes - The firm ranked 6th in Nasdaq eVestment's Q4 2025 brand awareness rankings among mid-sized firms, indicating growing recognition in institutional capabilities [6] - The firm is expanding its international business development efforts with professionals in London and Australia, and is nearing completion of an Australian investment trust and a UCITS vehicle in Europe [6] Company Strategy and Development Direction - Silvercrest is making significant strategic investments to promote growth across multiple fronts, focusing on intellectual capital and headcount [5] - The firm is adjusting its interim compensation ratio to match investments in business growth, expecting it to remain elevated for the foreseeable future [7] - The company is actively pursuing regulatory approval to operate in Europe through a new Dublin office, which is expected to be completed in Q2 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term vision and investment plans, anticipating that these will bear fruit with patience [43] - The firm is optimistic about the potential for significant AUM growth in global and international strategies, currently holding over $2 billion in these areas [21][25] Other Important Information - Total assets at the end of 2025 were approximately $166.6 million, down from $194.4 million at the end of 2024 [14] - Cash and cash equivalents at the end of 2025 were $44.1 million, compared to $68.6 million at the end of 2024 [15] Q&A Session Summary Question: Current AUM in global and international strategies and future growth potential - The firm currently has over $2 billion in global and international strategies, with strong performance and a robust pipeline expected to yield significant flows in 2026 [21][25] Question: Future compensation ratio expectations - The compensation ratio is expected to remain elevated due to ongoing hiring and investment in growth, with historical ratios around 54%-56% [30][31] Question: Thoughts on future buybacks and share count - Management indicated that further buybacks will be considered, and they aim to offset any shares given to employees to maintain a declining share count [37][38]

分组1 - Silvercrest reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.23 per share, representing an earnings surprise of -21.74% [1] - The company posted revenues of $31.96 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.50% [2] - Over the last four quarters, Silvercrest has not been able to surpass consensus EPS estimates, topping revenue estimates just once [2] 分组2 - The stock has lost about 6.4% since the beginning of the year, compared to the S&P 500's decline of 3.1% [3] - The current consensus EPS estimate for the coming quarter is $0.36 on $35.1 million in revenues, and for the current fiscal year, it is $1.51 on $143 million in revenues [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 24% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Performance - Revenue for 2025 was $125.319 million, a 1.3% increase from $123.651 million in 2024[233] - Net income for 2025 decreased to $8.059 million, down 48.7% from $15.709 million in 2024[233] - Adjusted EBITDA for 2025 was $19.619 million, a decline of 25% from $26.101 million in 2024[233] - Net income margin dropped to 6.4% in 2025 from 12.7% in 2024[233] - Total revenue increased by $1.7 million, or 1.3%, to $125.3 million for the year ended December 31, 2025, from $123.7 million for the year ended December 31, 2024[264] - Adjusted EBITDA for the year ended December 31, 2025, was $19,619,000, down from $26,101,000 in 2024, representing a decrease of 25.0%[290] - Adjusted EBITDA margin decreased to 15.7% in 2025 from 21.1% in 2024, indicating a decline in recurring profitability[290] - Adjusted net income for 2025 was $11,844,000, compared to $15,782,000 in 2024, reflecting a decrease of 25.0%[290] - Basic adjusted earnings per share for 2025 was $1.00, down from $1.15 in 2024, a decline of 13.0%[290] Assets Under Management - Assets under management increased by 1.4% from $36.5 billion to $37.0 billion for the year ended December 31, 2025[229] - Discretionary managed accounts AUM increased to $23.6 billion in 2025 from $22.8 billion in 2024[236] - Private funds AUM was $0.4 billion in 2025, unchanged from 2024[237] - Discretionary assets under management increased by $0.7 billion, while non-discretionary assets decreased by $0.2 billion[265] - The composition of assets under management as of December 31, 2025, was 65% discretionary and 35% non-discretionary[265] - As of December 31, 2025, total assets under management (AUM) reached $37.0 billion, with $25.3 billion classified as Level 1, $5.7 billion as Level 2, and $6.0 billion as Level 3[322] - The average AUM for the year ended December 31, 2025, was approximately $36.8 billion, with a potential revenue change of approximately $12.5 million for a 10% increase or decrease in AUM[323] - For the year ended December 31, 2024, the average AUM was approximately $34.9 billion, with a similar potential revenue change of approximately $12.4 million for a 10% increase or decrease in AUM[324] Revenue Sources - Revenue from discretionary managed accounts was $116.9 million in 2025, up from $115.2 million in 2024[236] - Family office services revenue increased by $0.4 million, or 10.0%, to $4.7 million for the year ended December 31, 2025, from $4.3 million for the year ended December 31, 2024[266] - Proprietary fund management revenue remained flat at $2.9 million for the years ended December 31, 2025, and 2024[265] - Sub-advised fund management revenue decreased to $0.9 million for the year ended December 31, 2025, compared to $1.2 million for the year ended December 31, 2024[265] - Management and advisory fees increased by $1.2 million, or 1.0%, to $120.6 million for the year ended December 31, 2025, from $119.3 million for the year ended December 31, 2024[256] Expenses - Total compensation expense rose to $83.945 million in 2025, compared to $76.663 million in 2024[247] - Total expenses increased by $10.0 million, or 9.4%, to $116.0 million for the year ended December 31, 2025, from $106.0 million for the year ended December 31, 2024[274] - Compensation and benefits expense rose by $7.3 million, or 9.5%, to $83.9 million for the year ended December 31, 2025, primarily due to merit-based increases and newly-hired staff[275] - General and administrative expenses increased by $2.7 million, or 9.2%, to $32.1 million for the year ended December 31, 2025, driven by higher professional fees and bad debt expense[276] Cash Flow and Financing - Cash flow from operations is expected to primarily fund compensation, general and administrative expenses, and debt service[295] - The company anticipates sufficient cash from operations to meet its commitments for the next twelve months[296] - Cash and cash equivalents decreased from $70.3 million in 2023 to $44.1 million in 2025, a decline of approximately 37%[298] - Net cash provided by operating activities was $18.6 million in 2025, down from $21.6 million in 2024, reflecting a decrease of about 14%[302] - Net cash used in investing activities increased to $3.6 million in 2025 from $1.7 million in 2024, representing a rise of approximately 112%[305] - Financing activities used $39.5 million in 2025, significantly higher than $21.5 million in 2024, marking an increase of about 84%[307] - Dividends paid to Class A shareholders were $7.1 million in 2025, slightly down from $7.4 million in 2024[307] - The company had $4.0 million outstanding under the term loan as of December 31, 2025, compared to $0 in 2024[294] - The credit facility was amended to extend the term loan maturity date to June 18, 2028, with a revolving credit facility maturity date extended to June 18, 2026[292] Tax and Compliance - The provision for income taxes was $3.0 million for the year ended December 31, 2025, with a tax rate of 27.0% compared to 22.5% in 2024[284] - The company operates under a tax receivable agreement requiring it to pay 85% of cash savings from tax benefits realized[326] - Silvercrest L.P. is not subject to federal and state income taxes, as income is passed through to partners, but is subject to New York City Unincorporated Business Tax[329] - The company recognizes uncertain tax positions only if they are "more likely-than-not" to be sustained upon examination, with benefits measured based on the largest realizable benefit[329] Market Impact - Market appreciation contributed to a 5.7% increase in total assets under management for the year ended December 31, 2025, compared to a 10.4% increase for the year ended December 31, 2024[265] - The company’s revenue is significantly impacted by market appreciation/depreciation, emphasizing the importance of fair value measurement for AUM[320]

Silvercrest added $124.5 million in organic new client accounts during the fourth quarter, bringing full year 2025 organic new client account flows to $688.3 million. For the full year, organic new client acquisition registered one of the strongest levels over the past several years, underscoring receptivity to our investment capabilities and momentum across our marketing efforts. Total AUM decreased 1.6% during the fourth quarter to $37.0 billion. It increased 2% year over year from $36.5 billion with no r ...

Core Viewpoint Silvercrest Asset Management Group Inc. reported its operational results for the year ended December 31, 2025, highlighting a decrease in discretionary assets under management (AUM) in the fourth quarter, despite an overall increase for the year. The company is focusing on strategic investments to drive long-term growth, which has impacted short-term earnings. Financial Performance - Discretionary AUM decreased by 1.2% in Q4 2025, from $24.3 billion to $24.0 billion, while total discretionary AUM increased by 3% for the year, from $23.3 billion to $24.0 billion [2][18] - Total AUM decreased by 1.6% in Q4 2025 to $37.0 billion, but increased by 2% year-over-year from $36.5 billion [4][18] - Revenue for Q4 2025 was flat at $31.96 million compared to Q4 2024, while total revenue for the year increased by 1.3% to $125.3 million [20][24] Client Acquisition and Market Position - Silvercrest added $124.5 million in organic new client accounts in Q4 2025, totaling $688.3 million for the year, indicating strong client acquisition momentum [3] - The firm ranked 6 in Nasdaq eVestment's Q4 2025 Brand Awareness Rankings among mid-sized firms, reflecting growing recognition of its institutional capabilities [6] Strategic Investments - The company is making significant strategic investments in intellectual capital and headcount to support long-term growth, which has led to lower earnings and Adjusted EBITDA in the short term [5][9] - Silvercrest is in the process of creating an Australian investment trust and a UCITS vehicle in Europe, with regulatory approval expected in Q2 2026 [7] Compensation and Expenses - Total compensation and benefits expense for 2025 was $83.9 million, representing 67% of revenue, an increase from 62% in 2024 [10][25] - The company expects the compensation ratio to remain elevated as investments mature and contribute to revenue growth [9] Share Repurchase and Equity - Silvercrest announced a share repurchase program of $25 million, having repurchased approximately $50.4 million worth of shares by the end of 2025 [11] - Total equity was $50.3 million at December 31, 2025, with 7,782,884 shares of Class A common stock and 4,119,699 shares of Class B common stock outstanding [30]

Core Viewpoint - Silvercrest Asset Management Group Inc. will host a teleconference to discuss its financial results for Q4 and the full year of 2025 on March 17, 2026 [1]. Group 1: Financial Results Announcement - The teleconference is scheduled for 8:30 am Eastern Time on March 17, 2026 [1]. - A news release with the financial results will be issued 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 Chief Financial Officer Scott A. Gerard, who will review the quarterly results [2]. Group 3: Access to the Teleconference - Analysts, institutional investors, and the public can listen to the call by dialing 1-844-836-8743 for domestic calls or 1-412-317-5723 for international calls [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 investment advisory and family office services to wealthy families and select institutional investors [4]. - As of September 30, 2025, Silvercrest reported assets under management totaling $37.6 billion [4].