Silvercrest Asset Management Group(US:SAMG)2026-03-16 20:24Financial Performance - Revenue for 2025 was $125.319 million, a 1.3% increase from $123.651 million in 2024[233] - Net income for 2025 decreased to $8.059 million, down 48.7% from $15.709 million in 2024[233] - Adjusted EBITDA for 2025 was $19.619 million, a decline of 25% from $26.101 million in 2024[233] - Net income margin dropped to 6.4% in 2025 from 12.7% in 2024[233] - Total revenue increased by $1.7 million, or 1.3%, to $125.3 million for the year ended December 31, 2025, from $123.7 million for the year ended December 31, 2024[264] - Adjusted EBITDA for the year ended December 31, 2025, was $19,619,000, down from $26,101,000 in 2024, representing a decrease of 25.0%[290] - Adjusted EBITDA margin decreased to 15.7% in 2025 from 21.1% in 2024, indicating a decline in recurring profitability[290] - Adjusted net income for 2025 was $11,844,000, compared to $15,782,000 in 2024, reflecting a decrease of 25.0%[290] - Basic adjusted earnings per share for 2025 was $1.00, down from $1.15 in 2024, a decline of 13.0%[290] Assets Under Management - Assets under management increased by 1.4% from $36.5 billion to $37.0 billion for the year ended December 31, 2025[229] - Discretionary managed accounts AUM increased to $23.6 billion in 2025 from $22.8 billion in 2024[236] - Private funds AUM was $0.4 billion in 2025, unchanged from 2024[237] - Discretionary assets under management increased by $0.7 billion, while non-discretionary assets decreased by $0.2 billion[265] - The composition of assets under management as of December 31, 2025, was 65% discretionary and 35% non-discretionary[265] - As of December 31, 2025, total assets under management (AUM) reached $37.0 billion, with $25.3 billion classified as Level 1, $5.7 billion as Level 2, and $6.0 billion as Level 3[322] - The average AUM for the year ended December 31, 2025, was approximately $36.8 billion, with a potential revenue change of approximately $12.5 million for a 10% increase or decrease in AUM[323] - For the year ended December 31, 2024, the average AUM was approximately $34.9 billion, with a similar potential revenue change of approximately $12.4 million for a 10% increase or decrease in AUM[324] Revenue Sources - Revenue from discretionary managed accounts was $116.9 million in 2025, up from $115.2 million in 2024[236] - Family office services revenue increased by $0.4 million, or 10.0%, to $4.7 million for the year ended December 31, 2025, from $4.3 million for the year ended December 31, 2024[266] - Proprietary fund management revenue remained flat at $2.9 million for the years ended December 31, 2025, and 2024[265] - Sub-advised fund management revenue decreased to $0.9 million for the year ended December 31, 2025, compared to $1.2 million for the year ended December 31, 2024[265] - Management and advisory fees increased by $1.2 million, or 1.0%, to $120.6 million for the year ended December 31, 2025, from $119.3 million for the year ended December 31, 2024[256] Expenses - Total compensation expense rose to $83.945 million in 2025, compared to $76.663 million in 2024[247] - Total expenses increased by $10.0 million, or 9.4%, to $116.0 million for the year ended December 31, 2025, from $106.0 million for the year ended December 31, 2024[274] - Compensation and benefits expense rose by $7.3 million, or 9.5%, to $83.9 million for the year ended December 31, 2025, primarily due to merit-based increases and newly-hired staff[275] - General and administrative expenses increased by $2.7 million, or 9.2%, to $32.1 million for the year ended December 31, 2025, driven by higher professional fees and bad debt expense[276] Cash Flow and Financing - Cash flow from operations is expected to primarily fund compensation, general and administrative expenses, and debt service[295] - The company anticipates sufficient cash from operations to meet its commitments for the next twelve months[296] - Cash and cash equivalents decreased from $70.3 million in 2023 to $44.1 million in 2025, a decline of approximately 37%[298] - Net cash provided by operating activities was $18.6 million in 2025, down from $21.6 million in 2024, reflecting a decrease of about 14%[302] - Net cash used in investing activities increased to $3.6 million in 2025 from $1.7 million in 2024, representing a rise of approximately 112%[305] - Financing activities used $39.5 million in 2025, significantly higher than $21.5 million in 2024, marking an increase of about 84%[307] - Dividends paid to Class A shareholders were $7.1 million in 2025, slightly down from $7.4 million in 2024[307] - The company had $4.0 million outstanding under the term loan as of December 31, 2025, compared to $0 in 2024[294] - The credit facility was amended to extend the term loan maturity date to June 18, 2028, with a revolving credit facility maturity date extended to June 18, 2026[292] Tax and Compliance - The provision for income taxes was $3.0 million for the year ended December 31, 2025, with a tax rate of 27.0% compared to 22.5% in 2024[284] - The company operates under a tax receivable agreement requiring it to pay 85% of cash savings from tax benefits realized[326] - Silvercrest L.P. is not subject to federal and state income taxes, as income is passed through to partners, but is subject to New York City Unincorporated Business Tax[329] - The company recognizes uncertain tax positions only if they are "more likely-than-not" to be sustained upon examination, with benefits measured based on the largest realizable benefit[329] Market Impact - Market appreciation contributed to a 5.7% increase in total assets under management for the year ended December 31, 2025, compared to a 10.4% increase for the year ended December 31, 2024[265] - The company’s revenue is significantly impacted by market appreciation/depreciation, emphasizing the importance of fair value measurement for AUM[320]