Westwood Holdings Group (WHG) Q1 2025 earnings summary

Executive summary

• Firmwide assets under management and advisement totaled $18.0 billion as of March 31, 2025, with a diverse product suite including ETFs, mutual funds, and wealth services.

• Achieved strong sales in Institutional and Intermediary channels, including a major $1 billion sub-advisory mandate and best Intermediary sales since 2022.

• Expanded ETF platform to five funds, launching LBRTY Global Equity ETF and celebrating MDST ETF's one-year anniversary with a 10.5% annualized distribution rate.

• Employee and director ownership at approximately 33%, reinforcing alignment with client interests.

• Recognized for workplace excellence and diversity, with 41% female employees and 20% female board representation.

Financial highlights

• Q1 2025 revenues were $23.3 million, up 2% year-over-year, with net income of $0.5 million ($0.05/share), and Economic Earnings of $2.5 million ($0.29/share).

• Advisory fees grew 5% year-over-year to $17.7 million; trust fees increased 6% to $5.4 million.

• Total expenses rose 18% year-over-year to $23.3 million, including a $2.9 million gain from contingent consideration remeasurement.

• Cash and liquid investments totaled $26.9 million at quarter end, with no debt outstanding.

• Dividend of $0.15 per share declared, payable July 1, 2025.

Outlook and guidance

• Management anticipates continued mandates in SMID Cap Value, a robust product pipeline, and further ETF growth as MDST becomes eligible for national broker dealer platforms.

• Expects initial funding for Managed Investment Solutions in 2025 and ongoing interest in energy strategies.

• Management expects current cash and short-term investments plus operating cash flow to be sufficient for at least the next twelve months.

• Remains vigilant regarding macro risks and market uncertainty, focusing on high-quality businesses.