Virtus Investment Partners(US:VRTS)2025-10-24 11:03Financial 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]