Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) increased by $1 billion during the second quarter, primarily due to strong markets [3] - Discretionary AUM stands at $23.7 billion, reflecting a 4.4% sequential quarterly increase and a 9.7% year-over-year increase [4] - Total AUM reached a new high of $36.7 billion at the end of the second quarter [4] - 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 approximately $3.1 million, with adjusted net income at approximately $3.3 million [9][11] - Adjusted EBITDA for the quarter was approximately $5.7 million, representing 18.7% of revenue [9] Business Line Data and Key Metrics Changes - The company added $80 million in organic new client accounts during the second quarter and $2 billion over the past four quarters [3][4] - Revenue for the first half of the year increased year-over-year by $800,000 or 1.3%, driven by market appreciation [10] - Compensation and benefits expenses for the first half increased by $1.5 million or 4.2% due to merit-based increases and new hires [11] Market Data and Key Metrics Changes - The company is optimistic about securing more significant organic flows in 2025 and 2026 as investments bear fruit [4] - The pipeline for new business is robust, with a measurable pipeline of $200 million, which has doubled since the last quarter [20] Company Strategy and Development Direction - The company continues to invest in talent to drive growth and transition the business towards the next generation of professionals [5] - A new buyback program of $25 million was announced following a completed $12 million stock repurchase program [5] - The Board of Directors approved a 5% increase in the quarterly dividend from $0.20 to $0.21 per share [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong market conditions and a solid new client track record [49] - The company is actively exploring acquisition opportunities, although the market remains expensive [25][27] - Management noted that operating leverage will take time to materialize as the company continues to hire and invest in growth initiatives [36] Other Important Information - Total assets were approximately $152.7 million as of June 30, down from $194.4 million at the end of the previous year [11] - Cash and cash equivalents were approximately $30 million as of June 30, compared to $68.6 million at the end of the previous year [12] Q&A Session Summary Question: Can you talk about the pipeline and your optimism for the second half? - Management discussed the global value team and the progress made in building out the team and capabilities, with a measurable pipeline of $200 million [20] Question: What was the average price for the stock buyback? - The average price for the stock buyback was not disclosed, but it was noted to be below the current trading price [23] Question: Any updates on potential acquisitions? - Management indicated ongoing conversations regarding acquisitions but emphasized that the market remains expensive and deals are not guaranteed until finalized [25][27] Question: Is the revenue mix shift over, and how does it affect operating leverage? - Management noted that the mix shift is primarily driven by institutional mandates and that operating leverage will take time to achieve as the company continues to hire and invest [34][36] Question: How is the OCIO business pipeline performing? - The OCIO pipeline has come down a bit but is expected to improve, with a significant mandate in the pipeline for the next quarter [42][44]

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]