Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2025 First Quarter Operating Results

Core Viewpoint - The company reported a significant decline in net earnings and operating performance for the first quarter of 2025, primarily due to net losses in its securities portfolio and costs associated with the acquisition of Sterling, despite an increase in net revenue compared to the previous year [2][3][5]. Financial Performance - Net revenue for Q1 2025 was $95.2 million, up from $62.5 million in Q1 2024, with $35.9 million contributed by Sterling [3][4]. - Operating earnings decreased to $7.1 million in Q1 2025 from $12.3 million in Q1 2024, while EBITDA fell to $15.9 million from $18.9 million [4]. - The company reported net losses of $15.7 million in Q1 2025, a stark contrast to net gains of $12.7 million in the same quarter of the previous year [5]. Cash Flow and Shareholder Metrics - Adjusted cash flow from operations attributable to shareholders was $12.5 million in Q1 2025, down from $14.7 million in Q1 2024 [6]. - Shareholders' equity as of March 31, 2025, was $1,304 million, or $53.30 per share, compared to $1,318 million, or $53.76 per share, as of December 31, 2024 [7]. Client Assets and Market Position - Total client assets were reported at $167.2 billion as of March 31, 2025, reflecting a 1% decrease from $169.0 billion as of December 31, 2024, but a 172.7% increase from $61.3 billion as of March 31, 2024 [2][3]. - The decline in client assets was attributed to net client outflows year-to-date, partially offset by positive market performance [2]. Dividend Declaration - The Board of Directors declared a quarterly eligible dividend of $0.39 per share, payable on July 18, 2025, to shareholders of record on July 11, 2025 [7].