Virtus Investment Partners(US:VRTS)2026-02-06 12:02Financial Performance - Revenues for Q4 2025 were $208.0 million, a decrease of 11% from $233.5 million in Q4 2024 and a 4% decline from $216.4 million in Q3 2025[2] - Operating income for the quarter was $39.8 million, down 21% year-over-year and 15% sequentially, with an operating margin of 19.1%[2] - Net income attributable to Virtus Investment Partners was $35.5 million, representing an 11% increase from $31.9 million in the prior quarter[2] - Total revenues decreased by 6% to $852,865,000 for the twelve months ended December 31, 2025, compared to $906,949,000 for the same period in 2024[22] - Net income for the twelve months ended December 31, 2025, was $135,988,000, an 11% decrease from $152,453,000 in 2024[22] - Earnings per share increased by 11% to $20.27 for the twelve months ended December 31, 2025, compared to $17.19 in 2024[22] - Operating income decreased by 8% to $168,680,000 for the twelve months ended December 31, 2025, from $182,490,000 in 2024[22] Assets Under Management (AUM) - Total assets under management decreased to $159.5 billion, down 9% from $175.0 billion year-over-year and 6% from $169.3 billion in the prior quarter[5] - Total Assets Under Management (AUM) decreased from $175,001 million on 12/31/2024 to $159,493 million on 12/31/2025, representing a decline of approximately 8.9%[23] - Open-End Funds AUM declined from $56,073 million to $52,759 million over the same period, a decrease of about 5.2%[23] - Institutional Accounts AUM fell from $59,167 million to $53,008 million, a reduction of approximately 10.4%[23] - Net outflows for Total AUM amounted to $10,433 million for the twelve months ended 12/31/2025[25] - Market performance negatively impacted AUM by $15,829 million over the twelve months, contributing to the overall decline[25] Revenue and Expense Trends - Total sales for the quarter were $5.3 billion, a decrease of 17% from $6.4 billion in Q4 2024 and 15% from $6.3 billion in Q3 2025[6] - Investment management fees fell by 6% to $725,039,000 for the twelve months ended December 31, 2025, down from $773,830,000 in 2024[22] - Operating expenses decreased by 6% to $684,185,000 for the twelve months ended December 31, 2025, compared to $724,459,000 in 2024[22] - Total operating expenses for the three months ended December 31, 2025, were $168,208,000, a decrease from $182,773,000 in 2024, reflecting a reduction of 8.0%[27] Shareholder Actions - The company repurchased 60,292 shares for $10.0 million during the quarter[17] Tax and Other Adjustments - The effective tax rate for the quarter was 28%, a slight decrease from 29% in the prior quarter[11] - The effective tax rate for the three months ended December 31, 2025, was 28.4%, down from 32.6% in 2024[28] - The company reported a restructuring expense of $693,000, a 100% decrease from $1,487,000 in 2024[22] - The change in fair value of contingent consideration improved by 61%, from $(5,608,000) in 2024 to $(2,214,000) in 2025[22] Forward-Looking Statements - Forward-looking statements indicate that actual results may differ materially due to various risks and uncertainties, including changes in assets under management and market conditions[43] - The company does not plan to update or revise any forward-looking statements after the date of the release, regardless of actual results[47] - Management believes that adjustments made to financial results aid in comparing the company's operating results with prior periods and other asset management firms[37]