Diamond Hill(DHIL) - 2025 Q2 - Quarterly Results

Financial Performance - Revenue for the second quarter of 2025 was $36.0 million, a decrease of 2% from $36.7 million in the second quarter of 2024[7] - Net income attributable to common shareholders was $15.6 million, a 92% increase from $8.1 million in the second quarter of 2024[5] - Earnings per share attributable to common shareholders - diluted was $5.73, up 96% from $2.93 in the second quarter of 2024[7] - GAAP basis net income for the three months ended June 30, 2025, was $8,126,000, with an earnings per share of $2.93 and a profit margin of 33%[1] - Adjusted non-GAAP basis net income for the same period was $7,974,000, with an earnings per share of $2.88 and a profit margin of 31%[1] - For the six months ended June 30, 2025, GAAP basis net income was $25,933,000, with an earnings per share of $9.49 and a profit margin of 28%[1] - The company reported a total operating income of $20,829,000 for the six months ended June 30, 2025[1] - Non-GAAP adjustments included a deferred compensation liability impact of $(2,077,000) for the six months ended June 30, 2025[1] - The non-GAAP effective tax rate for the three months ended June 30, 2025, was 28.4%[3] Assets Under Management - Total assets under management (AUM) and assets under advisement (AUA) combined were $31.9 billion, unchanged from December 31, 2024, and up from $31.1 billion as of June 30, 2024[5] - Average AUM and AUA combined during the quarter was $31.0 billion, slightly down from $31.1 billion in the second quarter of 2024[5] - The company anticipates continued growth in assets under management (AUM) and assets under administration (AUA) in the upcoming quarters[2] Client Activity - Net client outflows were $644.0 million, compared to net inflows of $229.0 million for the second quarter of 2024[5] Shareholder Returns - The company returned approximately $12.3 million to shareholders, including $8.3 million through share repurchases and $4.0 million in dividends[5] - The board approved a quarterly cash dividend of $1.50 per common share, to be paid on September 12, 2025[6] Investment Strategy - The company launched a new fixed income strategy, the Diamond Hill Securitized Total Return Fund, on July 1, 2025[4] Future Outlook - The company is focusing on technological developments and adapting to industry trends towards lower fee strategies[2] - The forward-looking statements include expectations regarding economic trends and potential impacts from regulatory changes[2] - The company emphasizes the importance of understanding core operating results by adjusting for non-operating income or loss items[3]