Silvercrest Asset Management Group(SAMG) - 2025 Q2 - Quarterly Results

Business Update & Strategic Initiatives Silvercrest achieved a record $36.7 billion AUM in Q2 2025, driven by market performance and strategic investments, while returning capital to shareholders Assets Under Management (AUM) Growth | Metric | Value | Period | Growth (YoY) | | :--- | :--- | :--- | :--- | | Discretionary AUM | $23.7 billion | Q2 2025 | 9.7% | | Total AUM | $36.7 billion | Q2 2025 | N/A | - Organic growth remains a focus, with $0.5 billion in new client accounts added in the first half of 2025 and approximately $2.0 billion over the past four quarters[3] - The company is pursuing strategic investments in talent to drive growth and ensure a successful business transition to the next generation, supported by a robust new business pipeline[6][5] - A new $25.0 million stock repurchase program was announced on May 23, 2025, following the completion of a $12.0 million program[8] - The Board of Directors approved a 5% increase in the quarterly dividend, raising it from $0.20 to $0.21 per share of Class A common stock[9] Financial Performance Silvercrest's Q2 2025 revenue decreased 1.0% to $30.7 million due to lower fees, while expenses rose, impacting net income and margins Q2 2025 Highlights Q2 2025 highlights include $36.7 billion Total AUM, $30.7 million revenue, and $0.21 GAAP diluted EPS Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Total AUM | $36.7 billion | | Discretionary AUM | $23.7 billion | | Revenue | $30.7 million | | GAAP Consolidated Net Income | $3.1 million | | GAAP Basic and Diluted EPS | $0.21 | | Adjusted EBITDA | $5.7 million | | Adjusted Net Income | $3.3 million | | Adjusted Basic EPS | $0.26 | | Adjusted Diluted EPS | $0.25 | Assets Under Management (AUM) Analysis Total AUM reached a record $36.7 billion, up 9.9% YoY, driven by market appreciation despite net client outflows AUM Comparison (as of June 30) | AUM Type | 2025 (billions) | 2024 (billions) | YoY Change | | :--- | :--- | :--- | :--- | | Total AUM | $36.7 | $33.4 | +9.9% | | Discretionary AUM | $23.7 | $21.6 | +9.7% | AUM Change from Q1 2025 to Q2 2025 | AUM Type | Q1 2025 (billions) | Q2 2025 (billions) | QoQ Change | | :--- | :--- | :--- | :--- | | Total AUM | $35.3 | $36.7 | +4.0% | | Discretionary AUM | $22.7 | $23.7 | +4.4% | - For the three months ended June 30, 2025, the company experienced net client outflows of $0.4 billion, which were more than offset by market appreciation of $1.8 billion[14] Q2 2025 vs. Q2 2024 Performance Q2 2025 revenue declined 1.0% to $30.7 million due to lower fees, while expenses increased, leading to reduced net income and Adjusted EBITDA Q2 Financial Comparison (in millions) | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | $30.7 | $31.0 | -1.0% | | Total Expenses | $26.6 | $25.7 | +3.7% | | Consolidated Net Income | $3.1 | $4.4 | -29.5% | | Adjusted EBITDA | $5.7 | $7.2 | -20.8% | | GAAP Diluted EPS | $0.21 | $0.28 | -25.0% | - The increase in general and administrative expenses was mainly due to higher professional fees, occupancy costs related to a new Singapore office, and marketing expenses[16] H1 2025 vs. H1 2024 Performance H1 2025 revenue grew 1.3% to $62.1 million, but a 6.3% rise in expenses, particularly compensation, led to a decline in net income Six-Month Financial Comparison (in millions) | Metric | H1 2025 (millions) | H1 2024 (millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | $62.1 | $61.3 | +1.3% | | Total Expenses | $53.2 | $50.1 | +6.3% | | Consolidated Net Income | $7.1 | $9.3 | -23.7% | | Adjusted EBITDA | $12.2 | $14.7 | -17.0% | | GAAP Diluted EPS | $0.47 | $0.60 | -21.7% | - The 11.6% increase in general and administrative expenses for the six-month period was driven by higher professional fees ($0.6M), portfolio and systems expense ($0.3M), and travel and entertainment ($0.2M)[20] Liquidity and Capital Resources Silvercrest maintained a strong balance sheet with $100.0 million total equity and no debt, despite a decrease in cash to $30.0 million Capitalization Summary (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Cash and cash equivalents | $30.0 million | | Outstanding Term Loan | $0 | | Outstanding Revolving Credit | $0 | | Total Equity | $100.0 million | - The company had 8,501,241 shares of Class A common stock and 4,126,476 shares of Class B common stock outstanding[24] Financial Statements & Supplementary Data This section provides detailed unaudited financial statements, including statements of operations, financial condition, non-GAAP reconciliations, AUM flows, and equity strategy performance Condensed Consolidated Statements of Operations This statement details Q2 2025 revenues of $30.7 million and net income of $1.9 million, along with operating expenses and profitability calculations - The full income statement provides a line-item breakdown of revenues (management fees, family office services) and expenses (compensation, G&A) leading to the net income calculation[32] Condensed Consolidated Statements of Financial Condition The balance sheet as of June 30, 2025, shows $63.7 million in Goodwill, $30.0 million in Cash, and $100.0 million in total equity - The balance sheet shows a decrease in total assets from $194.4 million at year-end 2024 to $152.7 million at June 30, 2025, largely due to a reduction in cash and cash equivalents[39] Non-GAAP Reconciliations This section reconciles GAAP Net Income of $3.1 million to non-GAAP measures, including Adjusted EBITDA of $5.7 million, for Q2 2025 - Key adjustments to reconcile Net Income to Adjusted EBITDA include adding back provision for income taxes ($1.1M), depreciation and amortization ($1.1M), and equity-based compensation ($0.4M) for Q2 2025[34] - Adjusted Net Income is calculated by adjusting for certain non-recurring items and applying an assumed blended corporate tax rate of 26%[36][29] Assets Under Management (AUM) Movement This section details AUM movements for Q2 2025, showing $0.9 billion gross inflows and $1.3 billion gross outflows, leading to $0.4 billion net outflows Q2 2025 Total AUM Flow (in billions) | Component | Value (billions) | | :--- | :--- | | Beginning AUM | $35.3 | | Gross Client Inflows | $0.9 | | Gross Client Outflows | ($1.3) | | Net Client Flows | ($0.4) | | Market Appreciation | $1.8 | | Ending AUM | $36.7 | Equity Investment Strategy Composite Performance This section presents gross-of-fees performance for Silvercrest's proprietary equity strategies, comparing composites against benchmarks over various periods - The Global Value Opportunity Composite outperformed its benchmark, the MSCI ACWI Value - Net Index, over 1-year (19.5% vs 15.6%), 3-year (16.2% vs 13.1%), and 5-year (15.3% vs 13.0%) annualized periods[51] - The Large Cap Value Composite showed a 1-year return of 10.1%, underperforming the Russell 1000 Value Index return of 13.7%[51]