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Diamond Hill Investment Group (DHIL) investor relations material
Diamond Hill Investment Group Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue decreased 4% year-over-year to $37.4 million, mainly due to a lower average advisory fee rate, while net income attributable to common shareholders declined 7% to $13.6 million for the quarter but rose 10% to $39.5 million for the nine months ended September 30, 2025, driven by higher investment income year-over-year.
Earnings per diluted share were $4.99 for Q3 2025, compared to $5.35 in Q3 2024.
Net client inflows reached $41 million, reversing net outflows of $22 million in the prior year quarter.
Fixed income strategies saw nearly $1 billion in net flows for the quarter and $2 billion year-to-date.
Conversion of the Large Cap Concentrated Fund to an ETF was completed during the quarter.
Financial highlights
Q3 2025 total revenue: $37.4 million (down 4% year-over-year); nine months revenue: $110.5 million (down 1%).
Q3 2025 net income attributable to common shareholders: $13.6 million ($4.99 per diluted share); nine months: $39.5 million ($14.47 per diluted share).
Operating profit margin was 26% for Q3 and 28% for the nine months; adjusted net operating profit margin was 32% for both periods.
Investment income for Q3 2025 was $8.5 million (down 12% year-over-year); nine months: $24.2 million (up 31%).
Adjusted earnings per diluted share were $3.24 for Q3 2025, compared to $3.35 in Q3 2024.
Outlook and guidance
Management expects operating profit margin to fluctuate due to revenue, investment results, staffing, and market gains/losses on deferred compensation plan investments.
If the trend of growth in lower-fee fixed income assets continues, the average advisory fee rate may decline further.
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