Virtus Investment Partners(US:VRTS) Businesswire·2025-10-24 11:00Core Insights - Virtus Investment Partners reported a decline in revenues and net income for the third quarter of 2025 compared to the same period in 2024, with revenues at $216.4 million, down 5%, and net income at $31.9 million, down 22% [2][9]. Financial Performance - Revenues for Q3 2025 were $216.4 million, compared to $227.0 million in Q3 2024, reflecting a 5% decrease, but a 3% increase from $210.5 million in Q2 2025 [2]. - Operating expenses decreased by 1% to $169.3 million from $171.8 million in Q3 2024, and increased by 2% from $165.3 million in Q2 2025 [2]. - Operating income was $47.1 million, down 15% from $55.3 million in Q3 2024, but up 4% from $45.2 million in Q2 2025 [2]. - The operating margin decreased to 21.7% from 24.3% in Q3 2024 [2]. Earnings Per Share - Diluted earnings per share were $4.65, down 19% from $5.71 in Q3 2024 and down 24% from $6.12 in Q2 2025 [2][9]. - Adjusted diluted earnings per share were $6.69, a decrease of 3% from $6.92 in Q3 2024 [11][13]. Assets Under Management - Total assets under management (AUM) were $169.3 billion as of September 30, 2025, down 8% from $183.7 billion in Q3 2024 and down 1% from $170.7 billion in Q2 2025 [4]. - Average total AUM for Q3 2025 was $170.3 billion, a decrease of 3% from $176.0 billion in Q3 2024 [4]. Sales and Flows - Total sales for the quarter were $6.3 billion, a 12% increase from $5.6 billion in Q2 2025 [5]. - Net flows were negative at $(3.9) billion, unchanged from the prior quarter, with institutional net flows at $(1.5) billion and retail separate account net flows at $(1.2) billion [6]. Balance Sheet and Cash Flow - Cash and cash equivalents increased by 90% to $370.6 million from $195.5 million in Q3 2024 [15]. - Gross debt rose by 65% to $400.0 million from $241.8 million in Q3 2024 [15]. - Working capital doubled to $288.4 million from $144.0 million in Q2 2025, primarily due to proceeds from debt refinancing [16]. Dividend - The company increased its quarterly dividend by 7% to $2.40 per share [16].