Core Viewpoint - Silvercrest Asset Management Group reported a decline in earnings and revenue for Q2 2025, despite achieving record assets under management, indicating challenges in profitability due to rising costs and fee pressures [1][7][8]. Financial Performance - GAAP revenue for Q2 2025 was $30.7 million, down 1.0% from $31.0 million in Q2 2024, and slightly below analyst expectations [1][12]. - Non-GAAP EPS was $0.25, missing estimates by 16.7% and down from $0.30 in Q2 2024 [1][2]. - Adjusted EBITDA fell to $5.7 million, a decrease of 20.6% year-over-year [2]. - Net income dropped to $3.1 million, down 28.4% from the previous year [2]. Assets Under Management - Assets under management reached a record $36.7 billion, up 9.9% from $33.4 billion a year earlier [1][5]. - Discretionary AUM increased by 9.7% year-over-year, while non-discretionary AUM rose by 10.2% [5]. Client Flows - Overall net client flows were negative at ($0.4) billion, although this was an improvement from ($0.9) billion in Q2 2024 [6]. - Gross client inflows were $0.9 billion, with outflows at $1.3 billion [6]. Expense Management - Total expenses increased by 3.7% year-over-year, driven by a 1.7% rise in compensation and benefits and an 8.8% increase in general and administrative expenses [8]. - Adjusted EBITDA margin fell to 18.7% from 23.3% year-over-year [8]. Investment Strategies - Proprietary equity strategies showed mixed results, with the Large Cap Value composite returning 10.1% compared to its benchmark's 13.7%, while the Global Value Opportunity composite outperformed its benchmark with a return of 19.5% [9]. Shareholder Returns - The company completed a $12.0 million share repurchase and announced a new $25.0 million buyback authorization [10]. - The quarterly dividend was raised by 5% to $0.21 per share [10][13]. Future Outlook - Management expressed optimism about long-term growth, highlighting a strong pipeline for global investment strategies and new client acquisitions [11]. - Elevated expenses are expected to persist through at least 2026, with anticipated improvements in margins as growth investments begin to yield results [11][12].