Company Performance - Virtus Investment Partners reported quarterly earnings of $6.25 per share, exceeding the Zacks Consensus Estimate of $6.21 per share, but down from $6.53 per share a year ago, representing an earnings surprise of +0.64% [1] - The company posted revenues of $190.99 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.38% and down from $203.01 million year-over-year [2] - Over the last four quarters, Virtus has surpassed consensus EPS estimates four times but has not beaten consensus revenue estimates [2] Stock Outlook - The immediate price movement of Virtus shares will depend on management's commentary during the earnings call, with shares down about 3.1% year-to-date compared to the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $6.87 on revenues of $199.59 million, and for the current fiscal year, it is $25.94 on revenues of $788.23 million [7] Industry Context - The Financial - Investment Management industry, to which Virtus belongs, is currently in the top 5% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of the company's financial results, including key highlights and earnings summary for the period [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the second quarter of 2025, Virtus reported a significant increase in GAAP net income and EPS, driven by lower operating expenses and favorable fair value adjustments, despite a 6% year-over-year decrease in GAAP revenues to $210.5 million, while non-GAAP adjusted EPS declined 4% year-over-year but rose 9% quarter-over-quarter Q2 2025 Financial Highlights (Unaudited, in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **U.S. GAAP** | | | | | | | Revenues | $210.5 | $224.4 | (6%) | $217.9 | (3%) | | Operating Income | $45.2 | $44.2 | 2% | $36.6 | 23% | | Operating Margin | 21.5% | 19.7% | +1.8pp | 16.8% | +4.7pp | | Net Income | $42.4 | $17.6 | 141% | $28.6 | 48% | | Diluted EPS | $6.12 | $2.43 | 152% | $4.05 | 51% | | **Non-GAAP (As Adjusted)** | | | | | | | Revenues | $191.0 | $203.0 | (6%) | $197.6 | (3%) | | Operating Income | $59.8 | $66.0 | (9%) | $54.6 | 10% | | Operating Margin | 31.3% | 32.5% | -1.2pp | 27.6% | +3.7pp | | Net Income | $43.3 | $47.3 | (8%) | $40.5 | 7% | | Diluted EPS | $6.25 | $6.53 | (4%) | $5.73 | 9% | [Earnings Summary](index=1&type=section&id=Earnings%20Summary) The company reported diluted earnings per share of $6.12 on a GAAP basis and $6.25 on an adjusted basis for Q2 2025, with total sales of $5.6 billion and net outflows of ($3.9) billion, resulting in ending Assets Under Management of $170.7 billion - Reported Diluted EPS was **$6.12** (GAAP) and **$6.25** (As Adjusted)[4](index=4&type=chunk) - Total sales reached **$5.6 billion**, but the company experienced net outflows of **($3.9) billion**[4](index=4&type=chunk) - Ending Assets Under Management (AUM) stood at **$170.7 billion**[4](index=4&type=chunk) [Assets Under Management (AUM) and Flows](index=2&type=section&id=Assets%20Under%20Management%20%28AUM%29%20and%20Flows) This section details the company's assets under management, including changes in AUM, asset flows by product, and average management fees [AUM and Asset Flow Summary](index=2&type=section&id=AUM%20and%20Asset%20Flow%20Summary) Total assets under management increased 2% sequentially to $170.7 billion at the end of Q2 2025, driven by market performance which offset net outflows of ($3.9) billion, with sales declining across institutional, retail separate accounts, and open-end funds compared to the prior quarter, primarily due to redemptions in institutional large-cap growth and retail small/mid-cap strategies AUM and Flows (in billions) | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Ending AUM | $170.7 | $167.5 | 2% | | Average AUM | $167.0 | $173.6 | (4%) | | Total Sales | $5.6 | $6.2 | (11%) | | Net Flows | ($3.9) | ($3.0) | 32% | - The sequential increase in AUM was due to market performance and positive net flows in ETFs, which were partially offset by net outflows in other products[5](index=5&type=chunk) - Net outflows of **($3.9) billion** worsened from **($3.0) billion** in the prior quarter, with institutional net flows of **($2.2) billion** being the largest contributor due to redemptions in large-cap growth[7](index=7&type=chunk) [AUM by Product and Asset Class](index=7&type=section&id=AUM%20by%20Product%20and%20Asset%20Class) As of June 30, 2025, the company's $170.7 billion in AUM was primarily concentrated in Equity ($96.2 billion), with the largest product allocations to Institutional Accounts ($57.1 billion) and Open-End Funds ($55.7 billion), as both Equity and Fixed Income asset classes saw sequential growth in AUM while Alternatives declined AUM Breakdown as of June 30, 2025 (in billions) | Category | AUM | % of Total | | :--- | :--- | :--- | | **By Product** | | | | Institutional Accounts | $57.1 | 33.5% | | Open-End Funds | $55.7 | 32.6% | | Retail Separate Accounts | $47.4 | 27.8% | | Closed-End Funds | $10.5 | 6.1% | | **By Asset Class** | | | | Equity | $96.2 | 56.4% | | Fixed Income | $38.6 | 22.6% | | Multi-Asset | $21.4 | 12.5% | | Alternatives | $14.5 | 8.5% | [Asset Flows by Product](index=9&type=section&id=Asset%20Flows%20by%20Product) In Q2 2025, total net outflows were ($3.9) billion, with Institutional Accounts experiencing the largest net outflows at ($2.2) billion, followed by Open-End Funds at ($1.0) billion and Retail Separate Accounts at ($0.8) billion, while Closed-End Funds had slightly positive net flows, and total inflows for the quarter were $5.6 billion, a decrease from $6.2 billion in the prior quarter Q2 2025 Net Flows by Product (in millions) | Product | Inflows | Outflows | Net Flows | | :--- | :--- | :--- | :--- | | Institutional Accounts | $1,283 | ($3,455) | ($2,172) | | Open-End Funds | $2,825 | ($3,806) | ($981) | | Retail Separate Accounts | $1,468 | ($2,264) | ($796) | | Closed-End Funds | $4 | ($2) | $2 | | **Total** | **$5,580** | **($9,527)** | **($3,947)** | [Average Management Fees](index=8&type=section&id=Average%20Management%20Fees) The average management fee for all products was 41.3 basis points in Q2 2025, a slight decrease from the prior quarter and prior year, primarily driven by a lower fee rate in Open-End Funds, which dropped to 46.7 basis points, while Closed-End Funds commanded the highest fee rate at 58.6 basis points Average Management Fees Earned (in basis points) | By Product | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Open-End Funds | 46.7 | 47.8 | 50.9 | | Closed-End Funds | 58.6 | 58.5 | 58.6 | | Retail Separate Accounts | 42.9 | 42.9 | 43.3 | | Institutional Accounts | 31.8 | 31.8 | 30.7 | | **All Products** | **41.3** | **41.7** | **42.2** | [Detailed Financial Results](index=3&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive breakdown of the company's financial performance, including GAAP and Non-GAAP results, and insights into its balance sheet and capital management strategies [GAAP Results](index=3&type=section&id=GAAP%20Results) GAAP operating income for Q2 2025 increased 23% sequentially to $45.2 million, primarily due to a 9% reduction in operating expenses that more than offset a 3% decline in revenues, with the expense reduction led by lower employment costs, and net income per diluted share was $6.12, which included positive fair value adjustments, while the effective tax rate decreased significantly to 22% from 31% in the prior quarter - Operating income rose to **$45.2 million** from **$36.6 million** in Q1 2025, driven by lower employment expenses and a favorable change in the fair value of contingent consideration[9](index=9&type=chunk) - Net income per diluted share of **$6.12** included positive fair value adjustments of **$0.50** for minority interests and **$0.32** for contingent consideration[10](index=10&type=chunk) - The effective tax rate fell to **22%** from **31%** in the prior quarter, mainly due to a decrease in income tax valuation allowances[11](index=11&type=chunk) [Non-GAAP Results](index=3&type=section&id=Non-GAAP%20Results) On a non-GAAP basis, adjusted operating income increased 10% sequentially to $59.8 million, with the adjusted operating margin expanding to 31.3% from 27.6%, primarily due to lower seasonal employment expenses compared to the prior quarter, while adjusted net income per diluted share rose 9% sequentially to $6.25, and the adjusted effective tax rate remained stable at 26% - Revenues, as adjusted, decreased **3%** sequentially to **$191.0 million** due to lower average AUM[12](index=12&type=chunk) - Adjusted operating income of **$59.8 million** and margin of **31.3%** increased from **$54.6 million** and **27.6%** in Q1 2025, mainly due to the absence of prior quarter seasonal expenses[13](index=13&type=chunk) - Adjusted EPS increased **9%** to **$6.25** from **$5.73** in the prior quarter, reflecting the impact of lower seasonal employment costs[13](index=13&type=chunk) [Balance Sheet and Capital Management](index=4&type=section&id=Balance%20Sheet%20and%20Capital%20Management) As of June 30, 2025, the company held $172.2 million in cash and cash equivalents, with gross debt at $234.7 million, and net debt decreased significantly by 38% from the prior quarter to $62.5 million, representing a leverage ratio of 0.2 times EBITDA, while the company repurchased 175,872 shares for $30.0 million during the quarter Select Balance Sheet Items (in millions) | Item | 6/30/2025 | 3/31/2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $172.2 | $135.4 | 27% | | Gross debt | $234.7 | $235.4 | —% | | Working capital | $144.0 | $137.2 | 5% | | Net debt (cash) | $62.5 | $100.0 | (38%) | - The company repurchased **175,872 shares** for **$30.0 million** during the second quarter[17](index=17&type=chunk) - Net debt stood at **$62.5 million**, equating to a leverage ratio of **0.2 times EBITDA**[17](index=17&type=chunk) [Non-GAAP Information and Reconciliations](index=10&type=section&id=Non-GAAP%20Information%20and%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, along with explanatory notes and definitions of the adjusted metrics [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of U.S. GAAP financial measures to the company's non-GAAP adjusted measures, with key metrics reconciled including revenues, operating expenses, operating income, income before taxes, and net income, where for Q2 2025, GAAP operating income of $45.2 million was adjusted for items such as amortization of intangibles (+$12.9 million) and consolidated investment products (+$3.2 million) to arrive at an adjusted operating income of $59.8 million Q2 2025 Reconciliation of GAAP to Non-GAAP Operating Income (in millions) | Description | Amount | | :--- | :--- | | **Operating income (loss), GAAP** | **$45.2** | | Consolidated investment products (earnings) losses | $3.2 | | Distributions to minority interests | $0.7 | | Amortization of intangible assets | $12.9 | | Acquisition and integration expenses | ($2.6) | | Other adjustments | $0.3 | | **Operating income (loss), as adjusted** | **$59.8** | - Management believes non-GAAP measures are useful to investors as they reflect the company's core operating results from providing investment management services[26](index=26&type=chunk) [Notes to Reconciliations](index=13&type=section&id=Notes%20to%20Reconciliations) The notes explain the rationale for each non-GAAP adjustment, including excluding the revenues and expenses of consolidated investment products, removing non-cash amortization of acquisition-related intangible assets, and eliminating expenses directly related to acquisition and integration activities, with other adjustments made for items not reflective of ongoing earnings, such as restructuring costs and fair value changes of contingent consideration - Consolidated investment products' results are excluded to reflect the company's performance from managing third-party client assets[31](index=31&type=chunk) - Amortization of intangible assets is excluded to aid in comparison with firms that have not engaged in acquisitions[35](index=35&type=chunk) - Acquisition and integration expenses, including changes in fair value of contingent consideration, are removed as they are not part of ongoing operations[38](index=38&type=chunk) [Definitions of Non-GAAP Measures](index=15&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines the key non-GAAP metrics used in the report, where 'Revenues, as adjusted' represent core client fees, excluding consolidated products and fees passed through to third-party intermediaries, 'Operating expenses, as adjusted' exclude items like amortization, restructuring, and acquisition costs to reflect ongoing operational expenses, and 'Operating margin, as adjusted' and 'Earnings per share, as adjusted' are derived from these adjusted figures - **Revenues, as adjusted:** Excludes the impact of consolidated investment products and fees passed through to third-party client intermediaries[39](index=39&type=chunk) - **Operating expenses, as adjusted:** Excludes amortization of intangible assets, restructuring, acquisition expenses, and other non-recurring items[40](index=40&type=chunk) - **Operating margin, as adjusted:** Calculated as operating income, as adjusted, divided by revenues, as adjusted[41](index=41&type=chunk) [Other Information](index=5&type=section&id=Other%20Information) This section provides additional context, including details on investor communications, company background, and important disclaimers regarding forward-looking statements [Conference Call and Investor Information](index=5&type=section&id=Conference%20Call%20and%20Investor%20Information) Virtus management will host an investor conference call and webcast on Friday, July 25, 2025, at 10 a.m. Eastern Time to discuss the second quarter financial results, with an accompanying presentation available in the Investor Relations section of the company's website - An investor conference call is scheduled for July 25, 2025, at 10 a.m. Eastern to discuss the financial results[19](index=19&type=chunk) [About Virtus Investment Partners](index=5&type=section&id=About%20Virtus%20Investment%20Partners) Virtus Investment Partners is a company that operates as a partnership of boutique investment managers, providing a variety of investment products and services from its affiliated managers and select subadvisers, each with a distinct and autonomous investment style, catering to both individual and institutional investors - The company operates a multi-boutique asset management model, offering investment solutions from various managers with distinct investment styles[20](index=20&type=chunk) [Forward-Looking Statements](index=15&type=section&id=Forward-Looking%20Statements) This section contains a standard legal disclaimer regarding forward-looking statements, cautioning that statements about expectations and projections are not guarantees of future performance and involve substantial risks and uncertainties, and directs investors to its SEC filings, such as the Form 10-K, for a detailed discussion of risk factors - The press release includes forward-looking statements that are based on current expectations and are not guarantees of future results[42](index=42&type=chunk)[43](index=43&type=chunk) - Investors are advised to consider the risks and uncertainties detailed in the company's SEC filings, including its Annual Report on Form 10-K[44](index=44&type=chunk)

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Virtus Investment Partners (VRTS) due to lower revenues, with a consensus EPS estimate of $6.12, reflecting a -6.3% change, and expected revenues of $189.24 million, down 6.8% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for July 25, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 7.31% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for Virtus is +2.40%, suggesting analysts have become more bullish on the company's earnings prospects [12]. - A positive Earnings ESP combined with a Zacks Rank of 1 indicates a high likelihood of beating the consensus EPS estimate [10][12]. Historical Performance - In the last reported quarter, Virtus exceeded the expected EPS of $5.33 by delivering $5.73, resulting in a surprise of +7.50% [13]. - Over the past four quarters, Virtus has beaten consensus EPS estimates three times [14]. Industry Context - SEI Investments (SEIC), another player in the Zacks Financial - Investment Management industry, is expected to post earnings of $1.18 per share, reflecting a year-over-year increase of +12.4% [18]. - SEI's revenues are projected to be $561.07 million, up 8.1% from the previous year, with a consensus EPS estimate revised 7.8% higher in the last 30 days [19].

Company Overview - Virtus Investment Partners (VRTS) shares increased by 6.3% to close at $200.71, with notable trading volume exceeding typical levels [1] - The stock has gained 10.5% over the past four weeks, indicating positive momentum [1] Market Sentiment - Broader market optimism regarding potential trade agreements and expectations of earlier interest rate cuts by the Federal Reserve has positively influenced investor sentiment towards finance stocks [2] - Investors are seeking better investment options for higher yields, which is expected to lead to inflows for asset managers, positively impacting their revenues [2] Earnings Expectations - Virtus is projected to report quarterly earnings of $6.17 per share, reflecting a year-over-year decline of 5.5% [3] - Expected revenues for the upcoming quarter are $188.7 million, down 7.1% from the same quarter last year [3] Earnings Estimate Trends - The consensus EPS estimate for Virtus has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook [4] Industry Comparison - Virtus operates within the Zacks Financial - Investment Management industry, where SEI Investments (SEIC) also holds a Zacks Rank of 2 (Buy) and has seen a 7.7% return over the past month [4][5] - SEI's consensus EPS estimate has increased by 2.9% over the past month, reflecting a year-over-year change of 9.5% [5]

Firm Overview - Virtus Investment Partners has a market capitalization of $1.8 billion[10] - The firm manages $179.3 billion in assets under a multi-boutique structure[10] - Kayne Anderson Rudnick manages $65.3 billion, representing 36% of the total AUM[26] Growth and Acquisitions - In January 2022, Virtus acquired Stone Harbor Investment Partners, adding $14.7 billion AUM in emerging markets debt and multi-asset credit strategies[22] - In April 2023, the company acquired AlphaSimplex, adding $7.8 billion AUM in quantitative alternative strategies[22] Products and Performance - Equity assets account for $103.5 billion, or 58% of the total AUM[26] - Fixed Income assets total $37.0 billion, representing 21% of the AUM[26] - Multi-Asset and Alternatives comprise $38.8 billion, which is 21% of the AUM[26] - Open-End Funds account for $50.3 billion, or 28% of the total AUM[26] - Retail Separate Accounts manage $46.8 billion, representing 26% of the AUM[26] Financial Performance - The operating income, as adjusted for Q1 2024, was $56.4 million[55] - Net income attributable to Virtus Investment Partners, Inc, as adjusted for Q1 2024, was $39.4 million[55] - Cash tax savings are expected to average $14 million per year over the next 15 years (2024-2038)[60]

Vertiqal Studios Expands North American Sales Leadership with Strategic Hires in West Coast and CanadaJune 19, 2025 7:15 AM EDT | Source: Vertiqal StudiosToronto, Ontario--(Newsfile Corp. - June 19, 2025) - Vertiqal Studios Corp. (TSX: VRTS) (OTC Pink: VERTF) (FSE: 9PY0) ("the Company") — Vertiqal Studios, the digital media company behind some of the largest and most engaged Gen Z and Millennial-facing social channels, today announced the addition of two industry veterans - Pano Rongakos and S ...

Core Viewpoint - Vertiqal Studios has successfully completed the acquisition of digital media assets from Offbeat Media Group, enhancing its position in the digital media landscape and expanding its reach among Gen Z and Millennial audiences [1][2][3] Acquisition Details - The final payment related to the acquisition of Offbeat Media Group was completed, marking the full satisfaction of payment obligations and demonstrating Vertiqal's reliability as an acquirer [1] - The acquisition has proven to be highly accretive, significantly increasing reach and monetization of Offbeat's assets through Vertiqal's operational infrastructure and data-driven optimization [2] Strategic Vision - Vertiqal aims to create a leading digital network for Gen Z and Millennial audiences by integrating culturally relevant media brands and advanced technologies for scalable content solutions [4] - The company is focused on a buy-and-build strategy, targeting acquisitions that enhance its media assets and technology capabilities [4] M&A Focus - Vertiqal is actively seeking new acquisition opportunities to expand its network of owned and operated digital properties and to incorporate innovative technology solutions, including proprietary AI tools [3][5] Integration and Growth - The integration of Offbeat's assets has been seamless, with a focus on personalized founder support and a proven strategy for driving revenue and audience growth [6] - Vertiqal's commitment to building the future of digital media is reflected in its approach to acquisitions and technology integration [6] Future Outlook - With the completion of the Offbeat acquisition, Vertiqal is positioned to pursue further acquisitions in digital media brands, content studios, technology providers, and AI solutions [9] Annual Meeting Results - The results of the annual and special meeting of shareholders showed strong support for the elected directors and the appointment of auditors, indicating shareholder confidence in the company's direction [10][11]

Vertiqal Studios Announces AI-Enabled Model that Fuses Creativity with Cutting-Edge Tech - Offering a Human-Centered Alternative to Zuckerberg's Vision for AI-Only Content CreationMay 20, 2025 7:15 AM EDT | Source: Vertiqal StudiosToronto, Ontario--(Newsfile Corp. - May 20, 2025) - Vertiqal Studios Corp. (TSX: VRTS) (OTC Pink: VERTF) (FSE: 9PY0) ("the Company") - Vertiqal Studios, the digital media company behind some of the most engaged Gen Z and Millennial-facing social channels, is official ...

Core Viewpoint - Vertiqal Studios anticipates long-term growth driven by its strategic partnerships and a strong audience base, particularly in light of Snapchat's renewed focus on its Discover ecosystem [2][9]. Financial Performance - For the three months ended March 31, 2025, Vertiqal Studios reported revenues of $705,845, a decrease of 16% from $842,909 in the same period in 2024 [4][7]. - Gross profit for Q1 2025 was $567,186, down from $654,845 in Q1 2024, while total expenses increased to $1,880,599 from $1,250,090 [4]. - The net loss for Q1 2025 was ($1,313,413), compared to a net loss of ($513,047) in Q1 2024 [4]. - EBITDA for the quarter was ($561,547), worsening from ($213,754) in the previous year [4]. Revenue Composition and Trends - The company experienced a significant revenue increase of 101% on Snapchat in March 2025, despite an overall year-over-year revenue decline [7]. - The gross margin improved to 80% in Q1 2025 from 77% in Q1 2024, indicating operational efficiency [7]. Strategic Partnerships and Market Position - Vertiqal Studios has formed a strategic partnership with CrossMedia, enhancing its media planning capabilities [2][8]. - The company has a substantial audience of 52 million across TikTok, Snapchat, and Instagram, with 75% of this audience located in the US, solidifying its market position [2]. Outlook for Fiscal 2025 - Following Snapchat's reversal of its decision to merge Discover and Spotlight, Vertiqal Studios expects renewed momentum in demand and performance on the platform [9]. - The company anticipates that Snapchat revenue will meet or exceed forecasts for the remainder of 2025, driven by increased advertiser confidence [10].

Group 1 - Virtus Investment Partners, Inc. (VRTS) reported preliminary assets under management (AUM) of $163.7 billion for April 2025, reflecting a 2.2% decrease from March 31, 2025, primarily due to net outflows in various fund categories [1] - The company's open-end fund balance decreased by 1.6% to $52.7 billion, while closed-end fund balance slightly declined to $10.2 billion [2] - Institutional accounts balance fell 2.1% to $55.5 billion, and retail separate accounts decreased by 3.4% to $45.3 billion [2] Group 2 - The integrated multi-boutique business model of the company is expected to support its performance in a growing industry, but the decline in AUM raises concerns about future profitability [3] - Elevated operating expenses are anticipated to negatively impact the company's bottom line in the near term [3] - Over the past six months, shares of Virtus Investment have decreased by 26.8%, compared to a 9.4% decline in the industry [4] Group 3 - The company currently holds a Zacks Rank of 4 (Sell) [5] - In comparison, Franklin Resources, Inc. reported a preliminary AUM of $1.53 trillion, showing a marginal decrease due to long-term net outflows [6] - T. Rowe Price Group, Inc. announced a preliminary AUM of $1.56 trillion, reflecting a slight decrease, with equity products totaling $767 billion and fixed income growing by 1% to $198 billion [8]