FOURTH QUARTER EARNINGS PRESENTATION February 6, 2026 George R. Aylward President and Chief Executive Officer Michael A. Angerthal Executive Vice President and Chief Financial Officer IMPORTANT DISCLOSURES This presentation contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act ...

分组1 - Virtus Investment Partners reported quarterly earnings of $6.5 per share, exceeding the Zacks Consensus Estimate of $6.41 per share, but down from $7.5 per share a year ago, representing an earnings surprise of +1.35% [1] - The company posted revenues of $188.9 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.25%, and down from $212.01 million year-over-year [2] - Virtus shares have declined approximately 7.5% since the beginning of the year, while the S&P 500 has only declined by 0.7% [3] 分组2 - The earnings outlook for Virtus is mixed, with the current consensus EPS estimate for the coming quarter at $5.09 on revenues of $183.9 million, and $25.20 on revenues of $747.96 million for the current fiscal year [7] - The Financial - Investment Management industry, to which Virtus belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Silvercrest, is expected to report quarterly earnings of $0.23 per share, reflecting a year-over-year increase of +15%, with a significant revision of the consensus EPS estimate by 30.9% higher over the last 30 days [9]

Financial 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]

Core Viewpoint - Vertiqal Studios Corp. has announced the resignation of Jon Dwyer as Chairman and CEO, with Max Desmarais appointed as interim CEO during the search for a permanent replacement [1][2]. Leadership Transition - Jon Dwyer will continue to support the company as an advisor, ensuring business continuity during the transition [1][3]. - Max Desmarais, co-founder and current President, has been appointed as interim CEO, effective immediately [2]. - Desmarais has been with the company since 2021 and played a key role in its acquisition strategy and rebranding efforts [2]. Company Background - Vertiqal Studios is a digital-channel network and video-production studio, owning North America's largest gaming and lifestyle network [4]. - The company focuses on helping global brands reach Gen Z and Millennial audiences through data-driven creative campaigns [4]. Operational Scale - Vertiqal manages over 200 channels across platforms like TikTok, Instagram, YouTube, and Snapchat, producing more than 100 pieces of content daily for a community of over 52 million followers [5]. - Revenue is generated through direct brand partnerships, agency relationships, and platform monetization across its owned channels [5].

Group 1 - Vertiqal Studios Corp. plans to complete a senior secured debenture financing of up to USD $2,000,000 with an annual interest rate of 13% and a maturity date of eighteen months from issuance [1] - The debentures will be secured by a first-ranking security interest over all present and after-acquired property and assets of the company [1] - Proceeds from the offering will be utilized for general working capital purposes [1] Group 2 - Vertiqal Studios is a scaled digital-channel network and video-production studio, owning North America's largest gaming and lifestyle network [2] - The company manages over 200 channels across platforms like TikTok, Instagram, YouTube, and Snapchat, producing more than 100 pieces of content daily for a community of over 52 million followers [3] - Revenue is generated through a combination of direct brand partnerships, agency relationships, and platform monetization across its owned and operated channels [3]

Group 1 - Virtus Investment Partners has launched the Virtus Silvant Growth Opportunities ETF (VGRO), expanding its actively managed ETF offerings to 26 [1][2] - VGRO employs bottom-up fundamental research to identify companies with strong growth potential, focusing on both secular and cyclical growth stocks [2][3] - The introduction of VGRO aligns with Virtus' strategy to provide a diverse ETF lineup that aims to enhance investor outcomes compared to passive strategies [3] Group 2 - Silvant Capital Management, the manager of VGRO, emphasizes that growth can occur in any sector and at various stages of a company's lifecycle [3] - Virtus ETF Solutions is a multi-manager ETF sponsor that offers both actively managed and index-based investment capabilities across multiple asset classes [4] - Virtus Investment Partners is a partnership of boutique investment managers dedicated to the long-term success of both individual and institutional investors, providing a range of investment products and services [5]

Core Viewpoint - Virtus Investment Partners has announced a definitive agreement to acquire a majority interest in Keystone National Group, expanding its offerings into private markets with a focus on asset-backed lending strategies [1] Group 1: Transaction Details - The acquisition involves a purchase price of $200 million at closing, with an additional potential $170 million in deferred consideration based on future revenue targets [1] - The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions [1] - Virtus plans to finance the acquisition using existing balance sheet resources [1] Group 2: Keystone National Group Overview - Keystone National Group, established in 2006, specializes in asset-centric private credit and has over 20 years of experience managing private credit assets [1][2] - As of October 31, 2025, Keystone managed $2.5 billion and has deployed over $6 billion in more than 750 transactions [1] - Keystone's flagship fund, the Keystone Private Income Fund (KPIF), has $2.0 billion in assets and is recognized for its stable investment performance [1] Group 3: Management and Operations - Keystone's management team will retain significant equity and enter into long-term employment agreements post-acquisition [1] - Keystone will maintain autonomy over its investment process and day-to-day operations, preserving its culture and brand identity [1] - The firm employs approximately 40 individuals and operates from Salt Lake City, Utah [2]

Core Insights - Virtus Investment Partners, Inc. (VRTS) has entered into a definitive agreement to acquire a majority interest in Keystone National Group, an investment manager specializing in asset-centric private credit [1][4] Deal Details - The acquisition involves a total consideration of $200 million at closing, with an additional potential $170 million in deferred payments based on future revenue targets [2][8] - The transaction is expected to close in the first quarter of 2026, pending customary closing conditions and approvals [3][8] - The acquisition is anticipated to be accretive to VRTS's earnings in 2026 [3][8] Strategic Rationale - The addition of Keystone's capabilities is expected to enhance Virtus's multi-manager model by introducing differentiated asset-backed lending strategies, addressing the growing demand for private market solutions [4][6] - Keystone, founded in 2006, manages $2.5 billion in assets and has deployed over $6 billion across more than 750 transactions, showcasing its extensive experience in private credit [5] Market Context - The acquisition reflects a broader trend as investors increasingly shift towards private credit and alternative income sources amid ongoing market volatility [6] - Other firms, such as Charles Schwab and Goldman Sachs, are also expanding their private market offerings, indicating a growing industry focus on alternative investment strategies [11][12]

Core Viewpoint - The conference call is hosted by Virtus Investment Partners, indicating ongoing communication with investors and stakeholders [1] Group 1 - The call is being recorded and will be available for replay on the Virtus website, highlighting the company's commitment to transparency and accessibility for investors [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]