Westwood(US:WHG)2025-10-30 20:13Financial 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].