Virtus Investment Partners (VRTS) investor relations material

Executive summary

• Assets under management (AUM) rose 2% sequentially to $170.7B, driven by market gains and ETF inflows, despite $3.9B in net outflows mainly from institutional and retail accounts.

• Adjusted EPS increased to $6.25, up from $5.73 in Q1, while diluted EPS was $6.12, up 51% sequentially and 152% year-over-year.

• Operating margin as adjusted improved to 31.3% from 27.6% sequentially, reflecting lower expenses and improved efficiency.

• Share repurchases reached $30M in Q2, the highest in three years, reducing shares outstanding by up to 3% year-to-date.

• Financial flexibility maintained with low net leverage, strong liquidity, and a focus on expanding offerings in ETFs, retail separate accounts, and global funds.

Financial highlights

• Revenues were $210.5M, down 6.2% year-over-year and 3% sequentially, mainly due to lower average AUM.

• Adjusted net income was $43.3M, up from $40.5M in the previous quarter.

• Investment management fees as adjusted fell 4% sequentially and 6.4% year-over-year.

• Adjusted employment expenses were $97.2M, or 50.9% of revenues, down from 55.4% sequentially.

• Cash and cash equivalents were $172.2M at June 30, 2025.

Outlook and guidance

• Management expects continued AUM pressure from net outflows, partially offset by market performance and new product launches.

• Employment expenses are expected to trend toward the midpoint of the 49%-51% revenue range.

• Other operating expenses projected to remain in the $30M-$32M range per quarter.

• Deferred tax asset expected to provide $18M in annual cash tax benefits over the next decade.

• Interest and dividend income expected to be ~$4.3M in Q3.