Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $24.3 million, an increase from $23.1 million in Q2 2025 and $23.7 million in Q3 2024, driven by higher average assets under management [14] - Net income for Q3 2025 was $3.7 million, or $0.41 per share, compared to $1 million, or $0.12 per share in Q2 2025, and $0.1 million in Q3 2024 [15] - Economic earnings for Q3 2025 were $5.7 million, or $0.64 per share, compared to $2.8 million, or $0.32 per share in Q2 2025, and $1.1 million, or $0.13 per share in Q3 2024 [15] Business Line Data and Key Metrics Changes - The enhanced midstream income ETF, MDST, surpassed $150 million in assets under management and maintained an annualized indicated dividend yield exceeding 10% [4][10] - The Income Opportunity Fund, WHGIX, received a Morningstar ratings upgrade to four stars and maintained a top decile ranking since inception [4][6] - The private fundraising initiative exceeded the annual goal by 1.5 times through September 30, 2025 [9] Market Data and Key Metrics Changes - Year-to-date net sales improved by 17% compared to last year and by 57% compared to 2023 [8] - The institutional channel experienced negative net flows this quarter, primarily due to sub-advisory business rebalancing [8] - The intermediary channel had success with private fundraising, contributing significantly to overall performance [9] Company Strategy and Development Direction - The company is focusing on expanding its ETF platform and has launched 11 new sector funds to provide investors with more precise control over risk and sector exposure [11] - The strategy emphasizes unlocking opportunities in undervalued segments, particularly small-cap stocks and broader value styles [7] - The company aims to enhance operational efficiencies and reduce costs while evaluating paths to improve services moving into 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding investment opportunities shifting towards undervalued segments as market dynamics evolve [7] - The company anticipates continued stability with existing clients and expects to win more mandates in mid-cap for defined contribution plans [8] - Management acknowledged the disappointing outflows concentrated in the large-cap area but highlighted a strong pipeline for new business totaling $1.6 billion [22] Other Important Information - The Board of Directors approved a regular cash dividend of $0.15 per common share, payable on January 2, 2026 [17] - The company reported a solid financial position with cash and liquid investments totaling $39.2 million and a debt-free balance sheet [16] Q&A Session Summary Question: ETF Success and Future Leverage - The company has worked hard to grow its ETF business through traditional channels and is close to gaining access to one of the largest wirehouse platforms [19][20] Question: Outflows and New Business Pipeline - Management acknowledged the disappointing outflows but emphasized a strong pipeline for new business and successful private fundraising initiatives [22]

Company Overview - Westwood Holdings Group manages \$18.3 billion in AUM, including \$17.3 billion in AUM and \$1.0 billion in AUA as of September 30, 2025[7, 22] - Employees and directors own approximately 33% of the company's equity[6] - The company reported revenues of \$24.3 million and income of \$3.7 million for 3Q 2025[20] Investment Strategy & Allocation - U S Value Equity accounts for 50% of the firm's strategy breakdown[12] - Multi-Asset/Multi-Strategy represents 28% of the strategy breakdown[12] - Wealth strategy accounts for 22% of the strategy breakdown[12] Client & Account Type - Institutional Separate Accounts & Other Managed Accounts comprise 52% of assets[12] - Wealth Management accounts for 25% of assets[12] - Westwood Mutual Funds & ETFs represent 23% of assets[12] Diversity & Inclusion - Approximately 41% of Westwood's employees are women[16] - Women hold 43% of the corporate board member positions[16] - In 2024, about 38% of new team members came from diverse backgrounds[16]

Assets Under Management (AUM) - As of September 30, 2025, the firm-wide assets under management (AUM) totaled approximately $18.3 billion, consisting of $17.3 billion in AUM and $1.0 billion in assets under administration (AUA) [81] - AUM increased by $0.5 billion, or 4%, from $16.8 billion at September 30, 2024, with an average AUM of $17.3 billion for Q3 2025 compared to $16.3 billion for Q3 2024 [97] - Institutional AUM rose by 7% to $9.032 billion from $8.454 billion year-over-year, while Wealth Management AUM decreased by 1% to $4.323 billion, and Mutual Funds AUM increased by 2% to $3.994 billion [98] - For the nine months ended September 30, 2025, AUM increased by $0.7 billion due to market appreciation of $1.0 billion, despite net outflows of $0.3 billion [103] Financial Performance - Total revenues for the three months ended September 30, 2025, increased by 2% to $24.3 million compared to $23.7 million in the same period of 2024 [108] - Net income for the three months ended September 30, 2025, was $3.7 million, a significant increase of 2,245% from $159,000 in the same period of 2024 [108] - Economic Earnings for the three months ended September 30, 2025, were $5.7 million, up 427% from $1.1 million in the same period of 2024 [121] - Economic Earnings per share for the three months ended September 30, 2025, was $0.64, a 392% increase from $0.13 in the same period of 2024 [121] Cash Flow and Liquidity - Cash flow provided by operating activities for the nine months ended September 30, 2025, was $10.9 million, compared to $12.2 million in the same period of 2024 [124] - The company had no debt as of September 30, 2025, maintaining a strong liquidity position with cash and liquid investments of $39.2 million [122] - Future liquidity and capital requirements will depend on various factors, including operational results and capital expenditures, with current cash and short-term investments expected to meet operational needs for at least the next twelve months [129] Expenses and Costs - Employee compensation and benefits expenses decreased by 2% to $13.3 million for the three months ended September 30, 2025, compared to $13.6 million in the same period of 2024 [108] - Westwood fund expenses increased by 38% to $1.1 million for the three months ended September 30, 2025, primarily due to higher administration and distribution expenses related to ETFs [110] Tax and Regulatory Compliance - The effective income tax rate for the three months ended September 30, 2025, approximated the 21% statutory rate [112] - Westwood Trust is required to maintain a minimum restricted capital of $4.0 million as per the Texas Finance Code [127] - As of September 30, 2025, Westwood Trust had approximately $13.6 million in excess of its minimum capital requirement [128] Investment Strategy and Team - The company has established a track record of delivering competitive, risk-adjusted returns for clients, focusing on a "value" investment style [82] - The investment team has an average experience of over 20 years, supporting the firm's investment strategies [82] Market and Accounting Disclosures - There have been no significant changes in critical accounting policies and estimates since December 31, 2024 [130] - Recent accounting guidance is detailed in the Condensed Consolidated Financial Statements included in the Quarterly Report on Form 10-Q [131] - No significant changes in market risk disclosures have occurred since the last Annual Report on Form 10-K for the year ended December 31, 2024 [132] Advisory and Trust Fees - Advisory fees are primarily based on a percentage of AUM and AUA, with performance-based fees generating additional revenues if benchmarks are outperformed [84] - Trust fees are negotiated separately and are generally based on a percentage of AUM, with revenue fully recognized within the quarter [85] Assets Under Advisement - Assets Under Advisement at the end of September 30, 2025, were $966 million, showing a net change of $27 million from the previous quarter [105] Net Outflows and Market Appreciation - For the three months ended September 30, 2025, net outflows were $0.671 billion, primarily related to the LargeCap Value strategy, offset by market appreciation of $0.679 billion [102]

Financial Performance - Third quarter 2025 net income was $3.7 million, a significant increase from $0.1 million in the same quarter last year, driven by higher revenues and unrealized appreciation on private investments[3]. - Total revenues for the third quarter reached $24.3 million, compared to $23.1 million in the second quarter and $23.7 million a year ago, reflecting higher average assets under management (AUM)[3]. - Diluted earnings per share (EPS) for the third quarter were $0.41, up from $0.12 in the second quarter and $0.01 in the third quarter of 2024[4]. - Non-GAAP Economic Earnings for the third quarter were $5.7 million, or $0.64 per share, compared to $2.8 million, or $0.32 per share, in the second quarter[2]. - Net income for the nine months ended September 30, 2025, was $5,237,000, a significant increase from $112,000 in the same period of 2024[15]. - Economic earnings for the nine months ended September 30, 2025, reached $11,020,000, compared to $3,588,000 for the same period in 2024, reflecting a growth of 207%[18]. - Earnings per share for the nine months ended September 30, 2025, was $1.25, up from $0.42 in the same period of 2024, indicating a 196% increase[18]. Assets and Investments - Firmwide assets under management and advisement totaled $18.3 billion, with $17.3 billion in AUM and $1.0 billion in assets under advisement (AUA)[1]. - Total assets increased to $154,046,000 as of September 30, 2025, up from $149,989,000 at December 31, 2024, representing a growth of 2.1%[14]. - Cash and cash equivalents increased to $21,604,000 at the end of the period, compared to $18,847,000 at the beginning, marking a net change of $2,757,000[15]. - Stockholders' equity rose to $125,979,000 as of September 30, 2025, compared to $122,332,000 at December 31, 2024, an increase of 3.3%[14]. - The company’s investments at fair value decreased to $19,729,000 as of September 30, 2025, from $27,694,000 at December 31, 2024, a decline of 28.8%[14]. Cash Flow and Expenses - The company reported a net cash provided by operating activities of $10,942,000 for the nine months ended September 30, 2025, down from $12,214,000 in 2024[15]. - The company incurred stock-based compensation expense of $3,925,000 for the nine months ended September 30, 2025, compared to $4,321,000 in the same period of 2024[18]. Dividends and Shareholder Returns - Westwood declared a cash dividend of $0.15 per common share, payable on January 2, 2026[3]. Investment Products and Strategies - The MDST ETF surpassed $150 million in assets and captured 30% of monthly midstream ETF flows in September[1]. - The company added eleven new Defined Volatility sector ETFs through its partnership with WEBs, enhancing its investment strategy offerings[1]. - Income Opportunity maintained its top decile ranking since inception and received a four-star Morningstar rating upgrade[1].

Core Insights - Westwood Holdings Group, Inc. reported strong performance in Q3 2025, with significant growth in private fund strategies and the MDST ETF reaching $150 million in assets, capturing 30% of monthly midstream ETF flows in September [1][2][5] - The firm surpassed its annual fundraising goal for private funds and launched eleven new Defined Volatility sector ETFs in partnership with WEBs [1][5] - Long-term performance rankings remain solid, with the Income Opportunity strategy maintaining a top decile ranking and receiving a four-star Morningstar rating upgrade [1][5] Financial Performance - Firmwide assets under management and advisement totaled $18.3 billion, with $17.3 billion in AUM and $1.0 billion in AUA [1] - Q3 2025 revenues were $24.3 million, an increase from $23.1 million in Q2 2025 and $23.7 million in Q3 2024 [5][10] - Net income for Q3 2025 was $3.7 million, significantly higher than $1.0 million in Q2 2025 and $0.1 million in Q3 2024 [2][3][5] - Diluted earnings per share (EPS) for Q3 2025 was $0.41, compared to $0.12 in Q2 2025 and $0.01 in Q3 2024 [2][3][5] Economic Earnings - Non-GAAP Economic Earnings for Q3 2025 were $5.7 million, or $0.64 per share, compared to $2.8 million, or $0.32 per share in Q2 2025 and $1.1 million, or $0.13 per share in Q3 2024 [2][3][5] - Economic earnings reflect the company's underlying operating performance and are used for evaluating resource allocation and dividend policy [17][18] Cash and Dividends - As of September 30, 2025, Westwood held $39.2 million in cash and liquid investments, an increase of $6.1 million from Q2 2025 [5] - The company declared a cash dividend of $0.15 per common share, payable on January 2, 2026, to stockholders of record on December 1, 2025 [5][10]

Core Insights - Cumulus Media's Westwood One has appointed Armen Williams as Executive Director of Westwood One Sports 24/7 Programming, effective November 3, 2025, to lead the development of new sports content [1][2] Company Overview - Cumulus Media is an audio-first media company reaching a quarter billion people monthly through 395 radio stations across 84 markets, offering a variety of programming including sports, news, and entertainment [5] - Westwood One Sports is the exclusive network radio partner to the NFL since 1987 and covers major sports events such as NCAA Basketball, U.S. Soccer, and The Masters [6] Leadership and Strategy - Armen Williams brings over 20 years of audio programming experience and has previously held leadership roles at Audacy, Bonneville, and Townsquare, focusing on innovative content strategies and brand presence [3] - Williams will oversee sports talk content, technical operations, social media strategy, and brand management, aiming to create compelling on-air programming with original content and fan interaction [2][4] Future Vision - Williams expressed excitement about the opportunity to build on the foundation created by partners like Audacy and BetMGM, aiming to deliver engaging and authentic sports content [4] - Bruce Gilbert, SVP of Sports / Content & Audience, emphasized Williams' vision as essential for launching a first-class all-sports network at Westwood One [4]

Core Insights - WEBs Investments Inc. has announced updated fund names for its Defined Volatility ETF suite to provide clearer insights into each fund's underlying exposure [1][3] Fund Structure and Strategy - The Defined Volatility ETFs utilize a systematic, rules-based approach that adjusts exposure to major ETFs based on real-time market volatility, increasing exposure when volatility is low and reallocating to cash equivalents or U.S. Treasuries when volatility is high [2] - This adaptive framework aims to help investors manage risk while maintaining market participation through varying conditions [2] Fund Name Changes - The following fund name changes have been implemented: - WEBs SPY Defined Volatility ETF (formerly WEBs Defined Volatility SPY ETF) - WEBs QQQ Defined Volatility ETF (formerly WEBs Defined Volatility QQQ ETF) - WEBs Real Estate XLRE Defined Volatility ETF (formerly WEBs Defined Volatility XLRE ETF) - WEBs Utilities XLU Defined Volatility ETF (formerly WEBs Defined Volatility XLU ETF) - WEBs Communication Services XLC Defined Volatility ETF (formerly WEBs Defined Volatility XLC ETF) - WEBs Technology XLK Defined Volatility ETF (formerly WEBs Defined Volatility XLK ETF) - WEBs Financial XLF Defined Volatility ETF (formerly WEBs Defined Volatility XLF ETF) - WEBs Health Care XLV Defined Volatility ETF (formerly WEBs Defined Volatility XLV ETF) - WEBs Consumer Staples XLP Defined Volatility ETF (formerly WEBs Defined Volatility XLP ETF) - WEBs Consumer Discretionary XLY Defined Volatility ETF (formerly WEBs Defined Volatility XLY ETF) - WEBs Industrials XLI Defined Volatility ETF (formerly WEBs Defined Volatility XLI ETF) - WEBs Materials XLB Defined Volatility ETF (formerly WEBs Defined Volatility XLB ETF) - WEBs Energy XLE Defined Volatility ETF (formerly WEBs Defined Volatility XLE ETF) [3] Company Background - WEBs Investments Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission, focused on developing innovative strategies to democratize access to institutional-caliber investment solutions [5] - The company was founded in 2024 by ETF industry veterans, emphasizing a commitment to innovative investment strategies [5]

Core Viewpoint - Westwood Holdings Group, Inc. is set to release its third quarter 2025 earnings on October 30, 2025, followed by a live audio webcast and conference call [1]. Group 1: Earnings Release - The earnings release will occur after the close of the New York Stock Exchange on October 30, 2025 [1]. - A live audio webcast and conference call will be hosted at 4:30 PM Eastern Time [1]. Group 2: Company Overview - Westwood Holdings Group is a boutique asset management firm offering a variety of actively-managed and outcome-oriented investment strategies, along with trust and wealth services [2]. - The firm has a client-first approach that has fostered strong, long-term relationships over its 40-year history [2]. - Westwood's investment strategies are designed to adapt to changing markets while meeting both short and long-term investor needs [2]. Group 3: Company Culture and Values - The team at Westwood comes from diverse backgrounds, reflecting its origins as a woman-founded firm [3]. - The company's core values include integrity, reliability, responsiveness, adaptability, teamwork, and a focus on driving results [3]. - Westwood is committed to incorporating diverse insights into its services and solutions [3].

Core Insights - Westwood One, a subsidiary of Cumulus Media, is set to deliver an extensive NFL audio coverage for the 2025 season, marking its 39th consecutive year as the official network audio broadcast partner of the NFL [1][9] - The programming lineup includes expanded pregame shows for Monday Night Football, play-by-play commentary for various games, and a range of specialty programs throughout the week [1][3] Programming Highlights - The 2025 NFL schedule features key events such as the Opening Night Kickoff game, Monday Night Football, Thursday Night Football, Sunday Night Football, Thanksgiving and Christmas Tripleheaders, and all postseason games culminating in Super Bowl LX [3] - Specialty programs include NFL Preview, NFL Insider, NFL Sunday, and NFL Fantasy Football Forecast, providing fans with in-depth analysis and insights [3][7] Broadcast Team - The broadcast team includes Kevin Harlan and Kurt Warner for Monday Night Football and Super Bowl LX, with Harlan entering his 16th season and Warner his 12th [4] - Kevin Kugler will lead Thursday Night Football, supported by analysts Devin McCourty and Ross Tucker, while Ryan Radtke and Mike Golic will cover Sunday Night Football [5] Accessibility and Technology - Westwood One's NFL broadcasts will be available on over 500 radio stations, SiriusXM, and through the new Westwood One Sports website and app, which offer features like one-click streaming and access to schedules and highlights [8][10] - The new app and website aim to enhance user experience, making it easier for fans to access NFL coverage [8] Company Overview - Cumulus Media, the parent company of Westwood One, operates 400 radio stations and delivers a variety of content, including sports, news, and entertainment, reaching a quarter billion people monthly [11]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were reported at $23.1 million, compared to $23.3 million in Q1 2025 and $22.7 million in Q2 2024, indicating flat revenues across these periods [19] - The company achieved a net income of $1 million or $0.12 per share in Q2 2025, an improvement from a loss of $2.2 million or $0.27 per share in Q2 2024 [20] - Economic earnings for the quarter were $2.8 million or $0.32 per share, compared to an economic loss of $0.5 million or $0.06 per share in Q2 2024 [20] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached $18.3 billion, up from $16.8 billion in Q2 2024, with institutional assets at $9.2 billion (53%), wealth management assets at $4.2 billion (24%), and mutual fund assets at $3.9 billion (23%) [20] - The company experienced net outflows of $200 million in AUM but had market appreciation of $600 million during the quarter [21] Market Data and Key Metrics Changes - The S&P 500 finished the quarter with solid gains, reaching new all-time highs, despite significant market volatility earlier in the quarter [7] - Growth stocks outperformed value stocks across market capitalizations during this period [7] Company Strategy and Development Direction - The company is evolving into a multifamily office model to serve ultra-high-net-worth families, aligning with client demand and industry trends [13] - Westwood was added to the Russell 2000 Index, expected to enhance trading volume and broaden the institutional investor base [14] - The company launched 11 second-tier ETFs, expanding its innovative ETF platform [5] Management's Comments on Operating Environment and Future Outlook - Management expects continued market volatility driven by uncertain trade policies and varying economic indicators [10] - The focus on high-quality businesses with strong fundamentals is believed to position the company well for future performance [10] - The company remains confident in its strategic positioning and the value provided to clients, with a robust institutional pipeline [16] Other Important Information - The Board of Directors approved a regular cash dividend of $0.15 per common share, payable on October 1, 2025 [21] - The company has a strong pipeline of traditional business exceeding $2 billion and has started three new businesses in the last eighteen months [24] Q&A Session Summary Question: No questions were raised during the session - The management acknowledged the lack of questions and expressed appreciation for the audience's participation [22][23]