Accessibility StatementSkip Navigation TORONTO, Sept. 30, 2025 /PRNewswire/ -- Vertiqal Studios Corp. (TSX:VRTS)(FSE: 9PY0) ("Vertiqal", "Vertiqal Studios" or the "Company") — Vertiqal Studios, the owner and operator of one of the largest collections of video gaming and lifestyle channels on social media, and the National Football League ("NFL") today announced a strategic content agreement. Forward Looking Information This news release contains forwardlooking statements and forwardlooking information withi ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. CareTrust REIT, Virtus Investment, and Alliant Energy have rewarded shareholders for years and recently announced dividend increases. These companies currently offer dividend yields of up to 5%. CareTrust REIT CareTrust REIT Inc. (NYSE: CTRE) is a real estate investment trust that ow ...

Core Insights - Vertiqal Studios Corp. has successfully completed its acquisition of Enthusiast Gaming's direct media sales business, marking a significant milestone in its growth strategy [1][4] - The integration of Enthusiast Gaming's operations has positioned Vertiqal as a leading partner for brands in targeted digital advertising across various content verticals [2] - The company has secured a booked revenue pipeline of over $3 million USD for Q4, reflecting the effectiveness of its consolidated media strategy [3] Company Overview - Vertiqal Studios operates a diversified network of digital properties and branded content channels, reaching over 200 million engaged consumers monthly [4] - The company's integrated approach combines in-house creative production, proprietary distribution points, and direct media sales to deliver results for global advertisers [4][8] - The company aims to leverage its expanded capabilities to drive organic growth and deeper brand partnerships [5]

Core Insights - Virtus Investment Partners (VRTS) has announced an annual increase in its quarterly dividend for the eighth consecutive year, declaring a cash dividend of $2.40 per share, which is a nearly 6.7% rise from the previous payout [1][9] - The company has raised its dividend six times in the past five years, with the most recent increase occurring in August 2024 when it was raised by 18% to $2.25 per share [2][9] - VRTS's current dividend yield stands at 4.64%, significantly higher than the industry average of 2.04% [2] Dividend and Capital Distribution - The company's payout ratio is 34% of its earnings, indicating a balance between returning capital to shareholders and retaining earnings for reinvestment [5] - VRTS has a share buyback program, with a total of 5.7 million shares authorized for repurchase since December 2010, and an additional 0.75 million shares authorized in May 2025, with 0.87 million shares remaining available for repurchase as of June 30, 2025 [6][9] Financial Position - As of June 30, 2025, VRTS had total cash and cash equivalents of $172 million and total debt of $231.3 million, with no current debt, indicating a decent liquidity position [7] - The company's capital distribution activities appear sustainable given its liquidity profile [7] Market Performance - Over the past year, VRTS shares have decreased by 8.0%, contrasting with the industry's growth of 19.2% [8]

Core Insights - Virtus Investment Partners, Inc. (VRTS) reported preliminary assets under management (AUM) of $170.8 billion for July 2025, showing a slight increase from June 30, 2025, primarily driven by positive net flows in exchange-traded funds and institutional accounts, despite net outflows in U.S. retail funds, retail separate accounts, and global funds [1][7] Group 1: AUM Performance - The company’s AUM of $170.8 billion includes $1.8 billion of other fee-earning assets, which were excluded from the AUM balance [2] - The open-end fund balance decreased nearly 1% from the prior month to $55.3 billion, while the closed-end fund balance increased by 1% to $10.6 billion [3] - Institutional accounts balance fell slightly to $57 billion sequentially, and retail separate accounts balance rose by 1.2% to $47.4 billion [3] Group 2: Business Model and Financial Outlook - The integrated multi-boutique business model of the company is expected to support its performance in a rapidly growing industry [4] - A decline in operating expenses is anticipated to bolster Virtus Investment's bottom line in the near term [4] Group 3: Industry Comparison - Victory Capital Holdings, Inc. (VCTR) reported AUM of $299.8 billion for July 2025, reflecting a marginal increase from June 30, 2025 [5] - Invesco (IVZ) announced its AUM of $2,024.5 billion as of July 31, 2025, which increased by 1.2% from the previous month, influenced by favorable market returns and impacted by foreign exchange [6]

Core Insights - Vertiqal Studios reported a significant decline in revenue and gross profit for Q2 2025 compared to the same period in 2024, with revenues down 30% and gross profit down 42% [2][3][8] - The company experienced a net loss of approximately $542 million for the quarter, which is a 38% improvement compared to the previous year's loss [3][8] - Despite the challenges, Vertiqal Studios is optimistic about future performance, citing stable gross margins and anticipated improvements in monetization due to seasonal advertising trends and acquisition strategies [5][8] Financial Performance - Revenues for Q2 2025 were reported at $777.8 million, down from $1.1 billion in Q2 2024, marking a 30% decrease [3][8] - Gross profit for the quarter was $501 million, a decrease of 42% from $868 million in the same quarter last year [3][8] - Total expenses decreased by 40% year-over-year to $1.04 billion, while the net loss for the quarter was $542 million, an improvement from a loss of $881 million in Q2 2024 [3][8] Market Context - The decline in revenue is attributed to macroeconomic pressures, a slowdown in industry-wide advertising, and changes in platform monetization strategies, particularly affecting Snapchat [5][8] - Vertiqal Studios noted a rebound in revenue growth of 101% year-over-year on Snapchat in March 2025, indicating potential recovery in advertising spend [8] - The company maintained a gross margin of 64% for the quarter and 72% for the year-to-date period, reflecting operational efficiency despite revenue challenges [8]

Core Insights - Vertiqal Studios has acquired certain assets of Revmo Inc., enhancing its capabilities in social commerce and data management [1][2] - The acquisition includes Revmo's core intellectual property, which will bolster Vertiqal's technology efforts and improve client acquisition and retention [2][3] - Freddie de Sibert, founder of Revmo, has been appointed as Vertiqal's Chief Data Officer, bringing significant industry experience [1][4] Company Overview - Vertiqal Studios is North America's largest owner of gaming and lifestyle social media channels, specializing in digital strategy and content distribution [12] - The company manages over 130 channels across platforms like TikTok, Instagram, and Snapchat, producing more than 100 pieces of content daily for an audience exceeding 52 million followers [12] - Vertiqal partners with major brands to create innovative advertising solutions, leveraging its deep understanding of culture and community [12] Acquisition Details - The asset purchase agreement (APA) was executed on August 7, 2025, with Vertiqal acquiring Revmo's intellectual property for approximately US$1,140,916 (CDN$1,561,615) [3] - In exchange, Vertiqal issued 62,464,656 common shares at a deemed price of C$0.025 per share, with a hold period of two years plus one day [3] - The acquisition is subject to final approval from the Toronto Stock Exchange [3] Data Capabilities - Revmo's data platform provides real-time and historical data analysis across multiple social media channels, enhancing audience insights and predictive capabilities [4][5] - Vertiqal will gain full-lifecycle visibility on engagement across 170+ channels and 3+ platforms, improving operational capabilities and revenue potential [5][8] - The integration of Revmo's data platform allows Vertiqal to engage with a "digital twin" of their audiences, enhancing data-driven decision-making [7] Strategic Impact - This acquisition marks a significant milestone in Vertiqal's growth trajectory, expanding revenue capabilities and improving operating margins [9] - The integration of advanced data analytics will accelerate Vertiqal's adoption of AI technologies, enabling better media classification and trend prediction [9][10] - Vertiqal aims to transform into a data-driven engagement platform, enhancing its competitive advantage in the digital media landscape [10]

Part I. FINANCIAL INFORMATION This section provides the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the recent reporting period [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Virtus Investment Partners, Inc. as of June 30, 2025, and for the three and six-month periods then ended. It includes the Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, and Changes in Stockholders' Equity, along with accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity as of specific dates Balance Sheet Highlights (in thousands) | Balance Sheet Highlights (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $172,204 | $265,888 | | Total assets | $3,696,219 | $3,994,494 | | Debt | $231,279 | $232,130 | | Total liabilities | $2,674,793 | $2,985,576 | | Total equity | $898,329 | $901,636 | - Total assets decreased from **$4.0 billion** at year-end 2024 to **$3.7 billion** as of June 30, 2025, primarily driven by a decrease in cash and cash equivalents and assets of consolidated investment products (CIP)[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's revenues, expenses, and net income for the specified reporting periods Statements of Operations (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $210,525 | $224,384 | $428,457 | $446,426 | | Operating Income | $45,210 | $44,205 | $81,805 | $76,511 | | Net Income Attributable to Virtus | $42,373 | $17,614 | $71,020 | $47,472 | | Earnings per Share—Diluted | $6.12 | $2.43 | $10.15 | $6.54 | - For the three months ended June 30, 2025, net income attributable to Virtus increased significantly to **$42.4 million** (**$6.12 per diluted share**) from **$17.6 million** (**$2.43 per diluted share**) in the prior-year period. For the six-month period, net income increased to **$71.0 million** from **$47.5 million** year-over-year[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities Cash Flow Activity (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,970 | $35,427 | | Net cash used in investing activities | ($4,012) | ($3,800) | | Net cash used in financing activities | ($226,525) | ($21,844) | - Net cash used in financing activities increased substantially to **$226.5 million** for the six months ended June 30, 2025, from **$21.8 million** in the prior year period, largely due to lower net borrowings by CIP and increased common stock repurchases[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements - The company provides investment management services to institutions and individuals through various products, including open-end funds, closed-end funds, retail separate accounts, and institutional accounts[23](index=23&type=chunk) - On May 14, 2025, the company declared a quarterly cash dividend of **$2.25 per common share**[44](index=44&type=chunk) - During the six months ended June 30, 2025, the company repurchased **287,072 common shares** for a total cost of **$50.0 million**[45](index=45&type=chunk) - The company consolidates various investment products (CIP), including collateralized loan obligations (CLOs), where it is deemed the primary beneficiary. The company's risk is limited to its beneficial interests in these products[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the second quarter and first half of 2025. Key topics include a decrease in total revenues and assets under management (AUM) compared to the prior year, driven by net outflows, although operating income increased due to lower expenses. The analysis covers AUM trends, asset flows, results of operations by segment, and the company's liquidity and capital resources [Financial Highlights](index=23&type=section&id=Financial%20Highlights) This section summarizes key financial and operational metrics, including assets under management, net flows, revenues, operating income, and diluted earnings per share - Total assets under management (AUM) were **$170.7 billion** at June 30, 2025, a decrease of **1.7%** from June 30, 2024, and **2.5%** from December 31, 2024. The year-over-year decrease was driven by **$13.5 billion** in net outflows, partially offset by **$13.3 billion** in positive market performance[98](index=98&type=chunk) Assets Under Management by Product (in millions) | Assets Under Management by Product (in millions) | As of June 30, 2025 | As of June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Open-End Funds | $55,653 | $55,852 | (0.4)% | | Closed-End Funds | $10,481 | $9,915 | 5.7% | | Retail Separate Accounts | $47,445 | $45,672 | 3.9% | | Institutional Accounts | $57,131 | $62,146 | (8.1)% | | **Total** | **$170,710** | **$173,585** | **(1.7)%** | - Total net flows were an outflow of **$(3.9) billion** in Q2 2025, compared to an outflow of **$(2.6) billion** in Q2 2024. For the first six months of 2025, net outflows were **$(6.9) billion**[97](index=97&type=chunk)[102](index=102&type=chunk) - For Q2 2025, total revenues decreased **6.2%** YoY to **$210.5 million**, while operating income increased **2.3%** to **$45.2 million**. Diluted EPS grew **151.9%** to **$6.12**, compared to **$2.43** in Q2 2024[100](index=100&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's revenues and operating expenses for the reported periods Financial Summary (in thousands) | Financial Summary (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total revenues | $210,525 | $224,384 | (6.2)% | | Total operating expenses | $165,315 | $180,179 | (8.2)% | | Operating income | $45,210 | $44,205 | 2.3% | | Net Income Attributable to Virtus | $42,373 | $17,614 | 140.6% | - The **6.4%** decrease in total investment management fees for Q2 2025 was primarily due to decreased average assets under management[115](index=115&type=chunk) - Employment expenses, the largest operating expense, decreased by **7.2%** in Q2 2025 compared to the prior-year quarter, mainly due to lower profit- and sales-based compensation[120](index=120&type=chunk) - Amortization expense decreased by **14.8%** in Q2 2025, primarily due to certain intangible assets becoming fully amortized[128](index=128&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, and debt obligations, highlighting changes in liquidity and capital management - As of June 30, 2025, the company held **$172.2 million** in cash and cash equivalents, a decrease from **$265.9 million** at December 31, 2024[141](index=141&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,970 | $35,427 | | Net cash used in investing activities | ($4,012) | ($3,800) | | Net cash used in financing activities | ($226,525) | ($21,844) | - Net cash from operating activities increased to **$72.0 million** in the first half of 2025, up from **$35.4 million** in the prior year, mainly due to higher net sales of investments by consolidated investment products (CIP)[147](index=147&type=chunk) - The company had **$234.7 million** outstanding under its Term Loan as of June 30, 2025[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its primary market risk exposures relate to unfavorable movements in interest rates and securities prices. There were no material changes to the market risk disclosures from the company's 2024 Annual Report on Form 10-K - The company's primary market risks are associated with interest rates and securities prices, with no material changes reported during the quarter[153](index=153&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2025. No material changes to internal control over financial reporting were identified during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[156](index=156&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[157](index=157&type=chunk) Part II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, and other relevant disclosures not included in the financial statements [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company incorporates by reference the information on legal proceedings from Note 14, "Commitments and Contingencies," in the financial statements section of this report. The company believes that the outcomes of its legal and regulatory proceedings are not likely to have a material adverse effect - Information regarding legal proceedings is detailed in Note 14 of the financial statements[158](index=158&type=chunk) - The company does not expect legal proceedings to have a material adverse effect on its financial condition, based on currently available information[61](index=61&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) The company reports that there have been no material changes to its risk factors from those previously disclosed in its 2024 Annual Report on Form 10-K - No material changes to the company's risk factors were reported since the 2024 Annual Report on Form 10-K[159](index=159&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchase activity during the second quarter of 2025. The Board of Directors authorized an additional 750,000 shares for repurchase on May 15, 2025. As of June 30, 2025, 866,240 shares remained available for repurchase under the program Common Stock Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1-30, 2025 | 5,433 | $153.32 | | May 1-31, 2025 | 102,438 | $169.37 | | June 1-30, 2025 | 68,001 | $173.70 | | **Total Q2 2025** | **175,872** | **N/A** | - On May 15, 2025, the Board authorized an additional **750,000 shares** for the repurchase program, leaving **866,240 shares** available for repurchase as of June 30, 2025[160](index=160&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) The company reports that none of its directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025[163](index=163&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and Inline XBRL data files - Filed exhibits include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files[164](index=164&type=chunk)

Financial Data and Key Metrics Changes - Assets under management grew by 2% in the quarter, reaching $171 billion, an increase of $4 billion sequentially due to market performance [6][9] - Earnings per share as adjusted increased to $6.25 from $5.73 in the first quarter, although it decreased by 4% compared to the prior year period [13][24] - Operating margin improved to 31.3% from 27.6% in the previous quarter [12][23] Business Line Data and Key Metrics Changes - Total sales for the quarter were $5.6 billion, down from $6.2 billion in the first quarter, with net outflows of $3.9 billion primarily in equity strategies [10][17] - Positive net flows in ETFs reached $3.7 billion, with an organic growth rate of 74% over the trailing twelve months [10][19] - Institutional sales decreased to $1.3 billion from $1.5 billion, while retail separate account sales declined to $1.5 billion from $1.7 billion [17][18] Market Data and Key Metrics Changes - Net outflows in institutional products increased to $2.2 billion, driven by quality-oriented large cap strategies [18] - Fixed income strategies returned to positive flows in June after modestly negative flows in April and May [11][12] - The market sentiment in July continued to trend favorably, with stronger flow profiles for fixed income funds [11][48] Company Strategy and Development Direction - The company is focused on expanding its offerings in retail separate accounts, ETFs, and global funds, with multiple product launches anticipated [7][8] - There is an emphasis on pursuing growth opportunities in private markets and differentiated traditional strategies [8][35] - The company aims to leverage its strong liquidity and flexible balance sheet to act on strategically compelling opportunities [8][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter began with challenging market conditions but saw steady improvement by June [5] - The company remains optimistic about growth opportunities, particularly in private markets and differentiated strategies [8][35] - Management highlighted that the pipeline of opportunities is at its highest level, indicating a favorable environment for product expansion [8][35] Other Important Information - The company repurchased $30 million worth of shares during the quarter, the highest level in three years, contributing to a 3% reduction in share count [13][26] - The company ended the quarter with significant liquidity and a modest net debt position, providing flexibility for future investments [13][27] Q&A Session Summary Question: Share repurchases and capital allocation - Management indicated a balanced approach to capital management, with a focus on share repurchases due to compelling stock valuation and upcoming capital uses [29][31] Question: M&A outlook and asset types - Management discussed the high level of activity in evaluating opportunities, particularly in private markets and traditional strategies, emphasizing the need for differentiated capabilities [32][35] Question: Compensation structure and expense management - Management clarified that compensation is highly variable and linked to performance, with no anticipated catch-up spending expected [39][41] Question: Flow trends in July - Management noted that July continued the positive trend seen in June, particularly in fixed income and ETFs, while quality-oriented equities faced outflows [45][48] Question: ETF platform success and growth initiatives - Management expressed satisfaction with the growth of the ETF platform, highlighting ongoing product expansion and the importance of access to financial advisors [62][65] Question: Inorganic activity prioritization - Management stated that all types of opportunities are evaluated individually, with a focus on creating long-term shareholder value through strategic partnerships [68][70]

Assets Under Management (AUM) and Flows - AUM increased by 2% to $1707 billion due to market performance and positive ETF net flows[12,14] - Average AUM decreased by 4% to $1670 billion[12] - Net outflows were ($39) billion, attributed to institutional, US retail funds, and retail separate accounts[12,17,19] - ETF AUM increased 74% year-over-year to $37 billion[17] Financial Performance - Operating income, as adjusted, was $598 million[12] - Operating margin, as adjusted, was 313%[12,33] - Earnings per diluted share, as adjusted, were $625[12,35] - Investment management fees, as adjusted, decreased by 4% primarily due to lower average AUM[25] Capital Activities and Balance Sheet - Stock repurchases totaled $30 million at an average price of $171 per share, reducing shares outstanding by 2% sequentially[12,39] - Net leverage was modest at 02x EBITDA[12,39] - Cash and investments totaled $447 million[39] Investment Performance - 41% of total AUM outperformed its benchmark over a 1-year period[41] - 57% of total AUM outperformed its benchmark over a 3-year period[41] - 65% of total mutual fund AUM outperformed peers over a 1-year period[42] - 55% of total mutual fund AUM outperformed peers over a 3-year period[42]