Silvercrest Asset Management Group (SAMG) Q2 2025 Earnings Call August 01, 2025 08:30 AM ET Company ParticipantsRichard Hough - Chairman, CEO & PresidentScott A. Gerard - CFOSandy Mehta - CEO & FounderChristopher Marinac - Director - ResearchOperatorGood morning and welcome to the Silvercrest Asset Management Group Second Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note th ...

Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) increased by $1 billion during Q2 2025, primarily due to strong markets, despite negative net flows [4] - Discretionary AUM reached $23.7 billion, a 4.4% sequential quarterly increase and a 9.7% year-over-year increase [5] - Total AUM hit a new high of $36.7 billion at the end of Q2 2025 [5] - Revenue for the quarter was $30.7 million, a decrease of $300,000 or 1% year-over-year [8] - Reported net income for the quarter was $3.1 million, with adjusted EBITDA at approximately $5.7 million or 18.7% of revenue [10] Business Line Data and Key Metrics Changes - The company added $80 million in organic new client accounts during Q2 2025, totaling $2 billion in organic new client accounts over the past four quarters [4][5] - Compensation and benefits expenses increased by $300,000 or 1.7% year-over-year, primarily due to merit-based increases and new hires [9] - General and administrative (G&A) expenses increased by $600,000 or approximately 8.8% year-over-year, driven by various operational costs [10] Market Data and Key Metrics Changes - The company is optimistic about securing more significant organic flows in 2025 and 2026 as investments begin to yield results [5] - The pipeline for new business is robust, with a measurable pipeline of $200 million, which has doubled since the last quarter [22] Company Strategy and Development Direction - The company continues to invest in talent to drive growth and transition to the next generation of professionals [6] - A new stock repurchase program of $25 million was announced following a completed $12 million buyback program [6] - The Board of Directors approved a 5% increase in the quarterly dividend, raising it from $0.20 to $0.21 per share [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong performance in the global value composite and the potential for increased organic flows [22] - The company is actively exploring acquisition opportunities, although the market remains expensive [28] - Operating leverage is expected to improve as AUM flows increase and hiring slows down [38] Other Important Information - Total assets were approximately $152.7 million as of June 30, 2025, down from $194.4 million at the end of the previous year [12] - Cash and cash equivalents decreased to approximately $30 million from $68.6 million at the end of the previous year [13] Q&A Session Summary Question: Can you talk about the pipeline and performance numbers? - Management discussed the global value team and the ongoing efforts to centralize institutional distribution, noting a measurable pipeline of $200 million that has doubled since the last quarter [22] Question: What was the average price for the stock buyback? - The average price for the stock buyback was not disclosed, but it was noted that the average price is below the current trading price [26] Question: Any updates on potential acquisitions? - Management indicated ongoing conversations regarding acquisitions but refrained from providing specifics, noting that the market remains expensive [28] Question: Is the revenue mix shift over? - The revenue mix shift is primarily driven by institutional mandates, and while the wealth market remains solid, further progress is expected in the institutional market [36] Question: How is the OCIO business pipeline performing? - The OCIO pipeline has decreased but is expected to improve, with a significant mandate of $100 million upcoming [47]

Core Insights - Lazard Inc. reported second-quarter 2025 adjusted earnings per share of 52 cents, exceeding the Zacks Consensus Estimate of 38 cents and up from 49 cents in the same quarter last year [1][8] - The company's quarterly operating revenues reached $769.8 million, reflecting a year-over-year increase of 12.4% and surpassing the Zacks Consensus Estimate of $688.5 million [3][8] Revenue Performance - Financial advisory segment adjusted operating revenues were $491.4 million, up 20.4% year-over-year [5] - Asset management segment adjusted operating revenues increased by 1.2% to $268.5 million [5] - Corporate segment adjusted operating revenues decreased by 12.8% to $10 million [5] Asset Management - Total assets under management (AUM) as of June 30, 2025, were $248.4 billion, a 1.5% increase from the prior year [6][8] - The average AUM for the reported quarter was $238.5 billion, down 2.8% year-over-year [6] Expense Analysis - Operating expenses rose to $702.9 million, an increase of 13.1% year-over-year [4] - The adjusted compensation expenses to operating revenues ratio improved to 65.5 from 66 in the previous year [4] Balance Sheet Strength - Cash and cash equivalents totaled $978.3 million, up 7.7% from the prior quarter [7] - Stockholders' equity increased by 21.3% sequentially to $786.5 million [7] Share Repurchase Activity - In the reported quarter, Lazard repurchased 0.9 million shares at an average price of $46.44 per share, with approximately $160 million remaining for future repurchases [9]

Core Viewpoint - BlackRock's first-quarter 2025 adjusted earnings of $11.30 per share exceeded expectations, reflecting a 15% increase year-over-year, despite challenges in net income and revenue [1][3]. Financial Performance - Adjusted operating income rose 14% year-over-year to $2.03 billion, while net income on a GAAP basis decreased 4% to $1.51 billion [3][5]. - Revenues for the quarter were $5.28 billion, a 12% increase from the previous year, but fell short of the Zacks Consensus Estimate of $5.38 billion [4]. - Total expenses increased by 18% to $3.58 billion, driven by rising costs across all components [4]. Assets Under Management (AUM) - As of March 31, 2025, AUM reached a record high of $11.58 trillion, marking an 11% year-over-year increase, with long-term net inflows of $83 billion during the quarter [6]. - The average AUM for the quarter was $11.68 trillion, reflecting a 15% year-over-year rise [6]. Shareholder Actions - BlackRock repurchased shares worth $375 million during the reported quarter [7]. Strategic Initiatives - The company is diversifying its offerings through acquisitions, including Global Infrastructure Partners and Preqin, which are expected to strengthen its position as a global asset manager [8].