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Financial Data and Key Metrics Changes - The company reported total assets under management (AUM) of $169 billion as of September 30, which is slightly below the previous quarter level due to net outflows despite favorable market performance [8] - Earnings per share (EPS) increased to $6.69 from $6.25 in the second quarter, reflecting a 7% increase, while year-over-year EPS decreased by 3% due to lower average assets [10][19] - Operating margin improved by 170 basis points to 33%, with an incremental margin above 50% [10][18] Business Line Data and Key Metrics Changes - The ETF business saw significant growth, with AUM reaching $4.7 billion, a 79% increase year-over-year, and the highest quarterly sales and net flows at $0.9 billion each [5][14] - Total sales increased by 12% to $6.3 billion, driven by higher sales in fixed income and alternative strategies [15] - Net outflows for the quarter were $3.9 billion, unchanged from the previous quarter, with institutional net outflows improving from $2.2 billion to $1.5 billion [8][15] Market Data and Key Metrics Changes - Positive net flows were observed in fixed income and alternative strategies, while equity strategies faced headwinds due to a focus on quality-oriented strategies [9][10] - The company noted that flows across products and asset classes in October were trending similarly to the third quarter, with strong ETF sales continuing [9] Company Strategy and Development Direction - The company aims to increase retail separate account offerings, expand ETF availability in key channels, and grow the wealth management business [4][5] - Inorganic growth opportunities remain a focus, with a disciplined approach to adding capabilities or increasing scale [7][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for quality-oriented strategies, which have underperformed compared to momentum strategies over the past two years [27][33] - The company remains optimistic about the potential for quality strategies to regain favor, which could enhance performance and flows [27][33] Other Important Information - The company completed a debt refinancing, providing significant liquidity and flexibility to invest in the business and return capital to shareholders [11][20] - The quarterly dividend was increased for the eighth consecutive year, reflecting a commitment to returning capital to shareholders [5][11] Q&A Session Summary Question: What are the key strategies attracting interest in ETFs? - Management indicated that both the ETF wrapper and specific strategies are driving interest, with a focus on expanding access and offerings [24][25] Question: Any updates on inorganic opportunities? - Management confirmed that the environment remains active for potential acquisitions, focusing on high-performing capabilities and private market expansion [26][28] Question: How to improve net flows moving forward? - Management highlighted positive flows in fixed income and alternative strategies, while addressing the need to grow areas less correlated to quality-oriented strategies [32][33] Question: Details on office space consolidation and operating expenses? - Management noted that the benefits of office consolidation are now reflected in the run rate, with expectations for lower operating expenses moving forward [37][38] Question: Status of discrete expenses and buyback activity? - Management stated that discrete expenses related to inorganic activities are ongoing, and buybacks remain a core part of the capital strategy [43][45]

Financial Data and Key Metrics Changes - The company reported total assets under management (AUM) of $169 billion as of September 30, which is slightly below the previous quarter level due to net outflows despite favorable market performance [8][10] - Earnings per share (EPS) increased to $6.69 from $6.25 in the second quarter, marking a 7% increase sequentially, although it decreased 3% year-over-year due to lower average assets [10][19] - The operating margin improved by 170 basis points to 33%, or 33.4% excluding discrete items, with an incremental margin above 50% [10][18] Business Line Data and Key Metrics Changes - The ETF business saw significant growth, with AUM reaching $4.7 billion, up 79% year-over-year, and achieving the highest quarterly sales and net flows of $0.9 billion each [5][14] - Total sales increased by 12% to $6.3 billion, driven by higher sales in fixed income and alternative strategies, while net outflows remained unchanged at $3.9 billion [8][15] - Institutional sales rose to $2 billion from $1.3 billion in the previous quarter, primarily due to fixed income and multi-asset strategies [15] Market Data and Key Metrics Changes - The company experienced positive net flows in fixed income and alternative strategies, while equity strategies faced net outflows primarily due to a focus on quality-oriented strategies [9][16] - In October, flows across products and asset classes continued to trend similarly, with strong ETF sales and net flows, although U.S. retail mutual fund headwinds persisted [9][10] Company Strategy and Development Direction - The company aims to increase retail separate account offerings, expand ETF availability in key channels, and grow the wealth management business [4][5] - The management emphasized a disciplined approach to inorganic growth, focusing on opportunities that are financially and strategically compelling [7][28] - The company is actively exploring opportunities to enhance capabilities and scale, particularly in private markets and international client access [28][60] Management's Comments on Operating Environment and Future Outlook - Management noted that quality-oriented strategies have underperformed in a market favoring momentum, but they expect a reversion to favor quality strategies in the future [27][33] - The company remains optimistic about the potential for positive flows in fixed income and alternative strategies, despite the current challenges in equity strategies [32][33] Other Important Information - The company completed a debt refinancing, increasing financial flexibility with a new $400 million term loan and a $250 million revolving credit facility [11][20] - The quarterly dividend was raised by 7% to $2.40 per share, marking the eighth consecutive annual increase [11][20] Q&A Session Summary Question: What are the key strategies attracting interest in ETFs? - Management indicated that both the ETF wrapper and specific strategies are driving interest, with a focus on expanding access and building track records in various strategies [24][25] Question: Any updates on inorganic opportunities? - Management reiterated that the environment remains favorable for inorganic growth, focusing on high-performing capabilities and private market expansion [26][28] Question: How to improve net flows moving forward? - Management highlighted positive flows in fixed income and alternative strategies, while addressing the need to grow non-quality correlated strategies to offset net outflows [32][33] Question: What is the outlook for operating expenses following office consolidation? - Management confirmed that the benefits of office consolidation are reflected in the current run rate, with expectations for lower operating expenses moving forward [37][38] Question: What is the status of discrete expenses and buybacks? - Management stated that discrete expenses related to inorganic activities may persist, and buybacks remain a critical part of the capital strategy, although no specific plans were announced [43][45]

Financial Data and Key Metrics Changes - The company reported total assets under management (AUM) of $169 billion as of September 30, which is slightly below the previous quarter level due to net outflows despite favorable market performance [9] - Earnings per share (EPS) increased to $6.69 from $6.25 in the second quarter, marking a 7% increase sequentially, although it decreased 3% year-over-year due to lower average assets [11][19] - The operating margin improved by 170 basis points to 33%, with an adjusted margin of 33.4% excluding discrete items [11][18] Business Line Data and Key Metrics Changes - The ETF business saw significant growth, with AUM reaching $4.7 billion, up 79% year-over-year, and achieving the highest quarterly sales and net flows of $0.9 billion each [5][14] - Fixed income strategies experienced positive net flows, contributing to overall sales growth of 12% to $6.3 billion, driven by higher sales in institutional and ETFs [15][16] - Despite positive flows in fixed income and alternative strategies, the company faced total net outflows of $3.9 billion, unchanged from the prior quarter, primarily due to outflows in quality equity strategies [9][10] Market Data and Key Metrics Changes - The company noted that 77% of ETF AUM outperformed benchmarks over a three-year period, indicating strong investment performance [6] - The equity net outflows were attributed to the company's focus on quality-oriented strategies, which have underperformed in a momentum-driven market environment [10][30] Company Strategy and Development Direction - The company aims to increase retail separate account offerings, expand ETF availability in key channels, and grow its wealth management business [4] - Inorganic growth opportunities remain a focus, with a disciplined approach to adding new capabilities or increasing scale [7][28] - The company is actively working on broadening access to its ETFs and introducing new offerings, including several actively managed funds expected to launch in the coming quarters [6][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term performance of quality-oriented strategies, anticipating a reversion in market favor that could enhance performance and flows [27][30] - The company highlighted the importance of diversifying its offerings to mitigate the impact of current market trends favoring momentum over quality [30][33] Other Important Information - The company completed a debt refinancing, securing a new $400 million term loan and a $250 million revolving credit facility, enhancing financial flexibility [12][20] - The quarterly dividend was increased for the eighth consecutive year, reflecting the company's commitment to returning capital to shareholders [5][12] Q&A Session Summary Question: What are the key strategies attracting interest in ETFs? - Management noted that both the ETF wrapper and specific strategies are driving interest, with a focus on expanding access and building track records in various strategies [23][24] Question: Any updates on inorganic opportunities? - Management confirmed that the environment remains active for potential acquisitions, focusing on high-performing capabilities and private market expansion [26][28] Question: How to improve net flows given recent trends? - Management highlighted positive flows in fixed income and alternative strategies, emphasizing the need to grow areas less correlated to quality-oriented equity strategies [30][31] Question: What is the outlook for operating expenses following office consolidation? - Management indicated that the benefits of office consolidation are now reflected in the run rate, with expectations for lower operating expenses moving forward [34][35] Question: Are there any updates on buybacks? - Management reiterated that buybacks remain a core component of their capital strategy, with no specific plans announced for the near term [39][41] Question: What trends are observed in institutional allocations? - Management noted strength in emerging market debt and REITs, particularly in non-U.S. markets, indicating a varied investor profile [42][43]

Financial Data and Key Metrics Changes - The company reported total assets under management (AUM) of $169 billion as of September 30, which is slightly below the previous quarter due to net outflows despite favorable market performance [10] - Earnings per share (EPS) as adjusted increased to $6.69 from $6.25 in the second quarter, but decreased 3% year-over-year due to lower average assets [13][25] - Operating margin improved by 170 basis points to 33%, with an incremental margin above 50% [13][24] - Total sales increased by 12% to $6.3 billion from $5.6 billion in the second quarter [10][18] Business Line Data and Key Metrics Changes - ETF assets reached $4.7 billion, up 79% year-over-year, with the highest quarterly sales and net flows of $900 million each [6][16] - Fixed income strategies saw positive net flows, while quality equity strategies experienced significant outflows [11][20] - Institutional sales increased to $2 billion, driven by fixed income and multi-asset strategies [18] Market Data and Key Metrics Changes - The company faced net outflows of $3.9 billion, unchanged from the previous quarter, primarily due to outflows in quality equity strategies [10][20] - Positive net flows were observed in fixed income and alternative strategies, indicating a shift in investor preference [11][20] Company Strategy and Development Direction - The company aims to expand its retail separate account offerings, increase ETF availability in key channels, and grow its wealth management business [5][6] - Inorganic growth opportunities remain a focus, with a disciplined approach to acquisitions that align with strategic goals [7][39] Management's Comments on Operating Environment and Future Outlook - Management noted that quality-oriented strategies have underperformed in a momentum-driven market but expect a reversion to favor quality in the future [44][47] - The company is optimistic about the potential for positive flows in fixed income and alternative strategies, despite current challenges in equity strategies [43][46] Other Important Information - The company completed a debt refinancing, increasing financial flexibility with a new $400 million term loan and a $250 million revolving credit facility [13][26] - A quarterly dividend increase of 7% was announced, marking the eighth consecutive annual increase [14][27] Q&A Session Summary Question: What are the key strategies driving interest in ETFs? - Management indicated that both the ETF wrapper and specific strategies are driving interest, with a focus on transparency and tax efficiency [30][32] Question: Any updates on inorganic opportunities? - Management confirmed that the environment remains favorable for acquisitions, focusing on high-performing capabilities and private market expansion [36][39] Question: How can the company improve net flows? - Management highlighted positive flows in fixed income and alternative strategies, emphasizing the need to grow non-quality correlated strategies [43][46] Question: What is the outlook for operating expenses following office consolidation? - Management noted that the benefits of office consolidation are reflected in the current run rate, with expectations for lower operating expenses moving forward [49][51] Question: Is the company back in the market for buybacks? - Management stated that buybacks remain a core part of the capital strategy, with no specific announcements at this time [57][58] Question: What trends are observed in institutional allocations? - Management noted strength in emerging market debt and global REITs, particularly in non-U.S. institutional markets [60][62]

Core Insights - Virtus Investment Partners, Inc. is a well-established investment management firm with a multi-manager approach and a focus on quantitative analysis [1] Group 1: Analyst Sentiment - The consensus price target for Virtus has remained stable at $175, indicating a uniform outlook among analysts [2][6] - There has been a year-over-year increase in the consensus price target from $165.83 to $175, reflecting a positive shift in analyst sentiment [3][6] - Morgan Stanley has a more bullish price target of $221, indicating confidence in Virtus's growth prospects [2][5] Group 2: Financial Performance - In Q2 2025, Virtus reported revenues of $210.5 million, representing a 6% decrease year-over-year and a 3% decline from Q1 2025 [4][6] - Operating expenses decreased by 8% to $165.3 million compared to the prior year [4] - Despite the revenue downturn, Virtus received an upgrade to a Zacks Rank 2 (Buy), suggesting growing optimism about future earnings potential [5][6]

Assets Under Management (AUM) and Flows - AUM reached $169.3 billion, while average AUM increased by 2% to $170.3 billion[12] - Sales increased by 12% to $6.3 billion, driven by institutional clients, including a new CLO, and ETFs[12] - Net outflows amounted to ($3.9) billion due to equity outflows, although fixed income and alternative net flows were positive[12] - ETF AUM increased by 29% to $4.7 billion, marking the highest level of quarterly sales and net flows[12, 15] Financial Performance - Adjusted operating income increased by 9% to $65.0 million due to higher revenues and flat operating expenses[12] - Adjusted operating margin increased by 170 bps to 33.0%[12, 30] - Adjusted earnings per diluted share increased by 7% to $6.69, including $0.11 of discrete business initiative expenses[12, 32] - Investment management fees, as adjusted, increased 3% primarily due to higher average AUM[22] Capital Activities and Balance Sheet - The quarterly dividend increased by 7% to $2.40 per share, representing the eighth consecutive annual increase[12, 35] - A new $400 million term loan and a $250 million revolving credit facility refinanced the credit agreement[12, 35] - Modest net leverage of 0.1x EBITDA[12, 33] Investment Performance - Total AUM outperforming benchmark is 27% for 1-Year, 37% for 3-Year, 34% for 5-Year, and 69% for 10-Year[37] - Mutual Fund AUM Outperforming Peers is 56% for 1-Year, 57% for 3-Year, 54% for 5-Year, and 75% for 10-Year[38]

分组1 - Virtus Investment Partners reported quarterly earnings of $6.69 per share, missing the Zacks Consensus Estimate of $6.71 per share, and down from $6.92 per share a year ago, representing an earnings surprise of -0.30% [1] - The company posted revenues of $196.69 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.11%, and down from $205.13 million year-over-year [2] - Virtus has surpassed consensus EPS estimates three times over the last four quarters but has not beaten consensus revenue estimates during the same period [2] 分组2 - The stock has underperformed the market, losing about 19.6% since the beginning of the year compared to the S&P 500's gain of 14.6% [3] - The current consensus EPS estimate for the coming quarter is $6.71 on revenues of $196.95 million, and for the current fiscal year, it is $25.46 on revenues of $782.44 million [7] - The Zacks Industry Rank for Financial - Investment Management is in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Revenues for Q3 2025 were $216.4 million, a decrease of 5% from $227.0 million in Q3 2024, but an increase of 3% from $210.5 million in Q2 2025[3] - Net income attributable to Virtus Investment Partners, Inc. was $31.9 million, down 22% from $41.0 million in Q3 2024 and down 25% from $42.4 million in Q2 2025[3] - Total revenues decreased by 5% to $216,385,000 compared to $227,029,000 in the same quarter last year[24] - Net income attributable to Virtus Investment Partners, Inc. decreased by 22% to $31,926,000 compared to $40,980,000 in the prior year[24] - Earnings per share (diluted) decreased by 19% to $4.65 from $5.71 year-over-year[24] - Operating income (loss) for Q3 2025 was $47,060, a decrease of 14.8% from $55,258 in Q3 2024[30] - Adjusted operating income for Q3 2025 was $64,969, compared to $70,468 in Q3 2024, reflecting a decline of 7.1%[30] - The adjusted net income for Q3 2025 was $45,941, compared to $49,643 in Q3 2024, reflecting a decrease of 7.5%[31] Assets Under Management - Total assets under management decreased to $169.3 billion, an 8% decline from $183.7 billion in Q3 2024 and a 1% decrease from $170.7 billion in Q2 2025[6] - Assets under management totaled $169,325,000,000, a decrease from $183,742,000,000 at the end of the previous year[25] - Open-End Funds saw a slight decrease in assets under management, ending at $55,724,000,000 compared to $58,100,000,000 a year ago[25] - Institutional Accounts decreased to $55,936,000,000 from $64,600,000,000 year-over-year[25] - The ending balance for Total Assets Under Management was $183,742 million as of 9/30/2024, decreasing to $169,325 million by 9/30/2025[27] Cash and Debt Management - Cash and cash equivalents increased by 90% year-over-year to $370.6 million, up from $195.5 million in Q3 2024[18] - Gross debt rose to $400.0 million, a 65% increase from $241.8 million in Q3 2024[18] - The company completed a refinancing of its credit arrangement, securing a new $400.0 million senior secured loan and a $250.0 million revolving credit facility[18] Expenses and Dividends - Total operating expenses decreased by 1% to $169,325,000 compared to $171,771,000 in the same quarter last year[24] - Employment expenses for Q3 2025 were $98,807, down from $105,555 in Q3 2024, a decrease of 6.9%[31] - Cash dividends declared per common share increased by 7% to $2.40 from $2.25 in the previous year[24] - Interest expense decreased by 9% to $5,299,000 from $5,807,000 year-over-year[24] Flows and Fees - Net flows were negative at ($3.9) billion, unchanged from the prior quarter, with institutional net flows of ($1.5) billion and retail separate account net flows of ($1.2) billion[8] - Investment management fees fell by 5% to $183,762,000 from $193,843,000 year-over-year[24] - Average management fees for Open-End Funds decreased from 49.7 basis points in 9/30/2024 to 47.0 basis points in 9/30/2025[26] - Institutional Accounts experienced net outflows of $(1,130) million for the three months ended 9/30/2025, with a beginning balance of $62,146 million[27] - Inflows for Retail Separate Accounts totaled $2,260 million in 9/30/2024, with outflows of $(1,829) million during the same period[27] Tax and Other Income - The effective tax rate increased to 29% from 22% in the prior quarter, reflecting higher income tax valuation allowances[12] - The effective tax rate for Q3 2025 was 29.5%, an increase from 24.3% in Q3 2024[30] - Total other income (expense), net for Q3 2025 was $(12,120), compared to $(28) in Q3 2024[31] - Consolidated investment products generated losses of $2,834 in Q3 2025, slightly up from $2,736 in Q3 2024[30] Forward-Looking Statements and Risks - Forward-looking statements indicate expectations regarding assets under management, net asset inflows, and business plans, but involve substantial risks and uncertainties[45] - The company faces risks including reduction in assets under management, financial risks from strategic transactions, and challenges in attracting key personnel[46] - The company does not plan to update forward-looking statements to reflect actual results or changes in circumstances after the release date[49] - The company emphasizes the importance of considering various risk factors that may impact financial results and liquidity[48]

Core Insights - Virtus Investment Partners reported a decline in revenues and net income for the third quarter of 2025 compared to the same period in 2024, with revenues at $216.4 million, down 5%, and net income at $31.9 million, down 22% [2][9]. Financial Performance - Revenues for Q3 2025 were $216.4 million, compared to $227.0 million in Q3 2024, reflecting a 5% decrease, but a 3% increase from $210.5 million in Q2 2025 [2]. - Operating expenses decreased by 1% to $169.3 million from $171.8 million in Q3 2024, and increased by 2% from $165.3 million in Q2 2025 [2]. - Operating income was $47.1 million, down 15% from $55.3 million in Q3 2024, but up 4% from $45.2 million in Q2 2025 [2]. - The operating margin decreased to 21.7% from 24.3% in Q3 2024 [2]. Earnings Per Share - Diluted earnings per share were $4.65, down 19% from $5.71 in Q3 2024 and down 24% from $6.12 in Q2 2025 [2][9]. - Adjusted diluted earnings per share were $6.69, a decrease of 3% from $6.92 in Q3 2024 [11][13]. Assets Under Management - Total assets under management (AUM) were $169.3 billion as of September 30, 2025, down 8% from $183.7 billion in Q3 2024 and down 1% from $170.7 billion in Q2 2025 [4]. - Average total AUM for Q3 2025 was $170.3 billion, a decrease of 3% from $176.0 billion in Q3 2024 [4]. Sales and Flows - Total sales for the quarter were $6.3 billion, a 12% increase from $5.6 billion in Q2 2025 [5]. - Net flows were negative at $(3.9) billion, unchanged from the prior quarter, with institutional net flows at $(1.5) billion and retail separate account net flows at $(1.2) billion [6]. Balance Sheet and Cash Flow - Cash and cash equivalents increased by 90% to $370.6 million from $195.5 million in Q3 2024 [15]. - Gross debt rose by 65% to $400.0 million from $241.8 million in Q3 2024 [15]. - Working capital doubled to $288.4 million from $144.0 million in Q2 2025, primarily due to proceeds from debt refinancing [16]. Dividend - The company increased its quarterly dividend by 7% to $2.40 per share [16].